Bogota Financial Corp. Annual Report: A Plain-English Guide

This guide breaks down Bogota Financial Corp.’s performance over the past year. My goal is to turn complex financial filings into clear information so you can decide if this company fits your investment goals.

1. What does this company do?

Bogota Financial Corp. is the holding company for Bogota Savings Bank, a community bank based in Teaneck, New Jersey. The bank makes money primarily through the difference between the interest it earns on loans and the interest it pays to depositors. While they traditionally focused on home mortgages, they are shifting toward higher-earning commercial real estate and multi-family housing loans. Commercial real estate loans now make up 42% of their total loan portfolio, up from 38% last year.

2. Financial Performance & Health

By the end of 2025, the bank held $904.9 million in total assets. To manage risk and keep enough cash on hand, the bank intentionally shrank its loan portfolio by 9%, down to $650.2 million.

The bank keeps $2.54 million set aside to cover potential loan losses. This represents 0.39% of total loans, a ratio that remained steady from 2024. While the bank faces some credit pressure—with loans that aren't being paid back rising to $13.26 million—these loans are backed by property worth significantly more than the loan amounts. The bank earned $2.1 million in profit this year, as higher interest costs on deposits weighed on their bottom line.

3. How They Manage Money

Customer deposits are the bank’s main source of funding, totaling $732.5 million. Most of this money ($556.7 million) is held in Certificates of Deposit (CDs). Because these CDs must be renewed at current market rates, the bank is sensitive to interest rate changes. The bank also uses "brokered deposits" to supplement local funding. These grew by 14% to $109.7 million, providing needed cash but at a higher cost than standard savings accounts.

4. Safety and Regulatory Standing

Regulators classify Bogota as "well-capitalized," the highest safety rating available. Their Tier 1 leverage ratio—a measure of financial strength—was 15.80% at year-end. This far exceeds the 5.0% threshold required for this rating. This high ratio shows the bank operates conservatively, prioritizing long-term stability over risky growth.

5. The Dividend Reality Check

If you want a stock that pays regular cash, Bogota may not be the right fit. Because the bank is a "mutual holding company," most of its stock is owned by a non-stock entity. Regulations currently prevent the bank from paying dividends to public shareholders. Management has no plans to start a dividend policy soon.

6. Wins, Challenges, and Risks

• Cybersecurity: The bank hired a dedicated security chief who reports to the Board. They invest $1.2 million annually in IT and threat detection.
• Real Estate Sensitivity: 88% of loans are in New Jersey and New York. A regional downturn in property values would hurt the bank’s asset quality.
• Growth Strategy: The shift toward commercial real estate creates "concentration risk," as these loans are larger and more sensitive to economic cycles.
• Future Potential: The bank might eventually convert to a fully public company. This could unlock capital and potentially allow for dividends, but it is a complex, long-term process with no guaranteed timeline.

Final Thought for Investors: Bogota Financial Corp. is currently positioned as a conservative, stable institution with a high capital cushion. However, because it does not pay dividends and is heavily concentrated in regional real estate, it is best suited for investors who are looking for long-term stability rather than immediate income or aggressive growth. Keep a close eye on their transition toward commercial lending and any future updates regarding a potential conversion to a fully public company.