Correction of Financial Results for Bogota Financial Corp.

TEANECK, N.J., Nov. 01, 2024 (GLOBE NEWSWIRE) -- Bogota Financial Corp. (NASDAQ: BSBK), which is the holding company for Bogota Savings Bank, has issued a corrected financial report concerning its results for the three and nine months that ended on September 30, 2024. This correction was necessary following the identification of an error in the initial report released on November 1, 2024.

The mistake pertained to the interest expense related to deposits, which was understated by $300,000. This discrepancy arose due to incorrect reporting of the rates paid on certain certificates of deposit during the specified three-month period. Consequently, the revised earnings release introduced notable changes.

Financial Metrics as of September 30, 2024

As part of the correction, the average rates for certificates of deposit and deposits have been revised:

		Average rate for certificates of deposit	Average rate for deposits
	As Initially Reported	4.15%	3.55%
	As Corrected	4.39%	3.95%

Results for the Three Months Ending September 30, 2024

The financial results show a net loss of $367,000, or $0.03 per share, which is a deepening of losses compared to a loss of $29,000, or $0.00 per share in the same period last year. The reporting of net interest income revealed alterations due to the updated figures for interest paid on deposits, resulting in reductions in total income.

The increased cost of interest-bearing deposits was reflected in the revised data:

Details	Interest paid on average certificates of deposit	Interest paid on average interest-bearing deposits	Net interest income	Net interest income post-provision for credit losses	(Loss) income before taxes	Income tax (benefit) expense	Net (loss) income	(Loss) earnings per share (basic)	(Loss) earnings per share (diluted)
As Corrected	$5,627	$6,161	$2,657	$2,657	($620)	($253)	($367)	($0.03)	($0.03)

Results for the Nine Months Ending September 30, 2024

The nine-month results show a net loss of $1.2 million or $0.10 per share, contrasting with a net income of $1.8 million, or $0.14 per share in the prior year. Revised income figures indicated a significant impact on net interest income due to the higher average cost of deposits:

Details	Interest paid on average certificates of deposit	Interest paid on average interest-bearing deposits	Net interest income	Net interest income after provision for credit losses	(Loss) income before income taxes	Income tax (benefit) expense	Net (loss) income	(Loss) earnings per share (basic)	(Loss) earnings per share (diluted)
As Corrected	$16,784	$18,385	$8,052	$7,982	($2,062)	($821)	($1,240)	($0.10)	($0.10)

Overview of Other Financial Developments

In addition to the amended results, Bogota Financial Corp. acknowledged a regulatory approval received back in April 2024, permitting it to repurchase up to 237,090 shares of its common stock, equaling about 5% of its total shares outstanding at that time, discounting shares owned by Bogota Financial, MHC. By September 30, 2024, the company already repurchased 163,790 shares for approximately $1.2 million.

Company’s Perspective

Kevin Pace, the President and CEO of Bogota Financial Corp., commented on the organization's strategic growth direction. He highlighted the commitment to core deposits and commercial lending, noting a positive increase in their commercial pipeline, which signals continued interest in their market operations.

Mr. Pace also mentioned that the bank had recently concluded its third stock repurchase program and has since initiated a fourth, emphasizing efforts to enhance shareholder value.

Conclusion

In summary, Bogota Financial Corp. has taken corrective steps in their financial reporting due to earlier misstatements on interest expenses. The updated figures reflect a more accurate representation of the company's financial health, along with strategic initiatives to bolster growth in the competitive banking sector.

correction, finance, losses