TEANECK, N.J., Feb. 13, 2026 (GLOBE NEWSWIRE) -- Bogota Financial Corp. (NASDAQ: BSBK) (the "Company"), the holding company for Bogota Savings Bank (the "Bank"), reported net income for the three months ended December 31, 2025 of $680,000 or $0.05 per basic and diluted share, compared to a net loss of $930,000 or $0.07 per basic and diluted share for the comparable prior year period. The Company reported net income for the year ended December 31, 2025 of $2.1 million or $0.17 per basic and diluted share compared to a net loss of $2.2 million, or $0.17 per basic and diluted share, for the prior year.

Other Financial Highlights:

   -- Total assets decreased $66.7 million, or 6.9%, to $904.9 million at 
      December 31, 2025 from $971.5 million at December 31, 2024, largely due 
      to a decrease in cash and cash equivalents and loans, offset by an 
      increase in securities available for sale. 
 
   -- Cash and cash equivalents decreased $16.6 million, or 31.8%, to 
      $35.6 million at December 31, 2025 from $52.2 million at December 31, 
      2024, due to cash used to purchase securities available for sale. 
 
   -- Securities available for sale increased $17.8 million, or 12.7%, to 
      $158.1 million at December 31, 2025 from $140.3 million at December 31, 
      2024.  Average yields on securities available for sale 
      increased 143 basis points from 3.88% for the twelve months ended 
      December 31, 2024, to 5.31% for the twelve months ended December 31, 
      2025, due to the balance sheet restructuring that took place in December 
      2024. 
 
   -- Net loans decreased $64.1 million, or 9.0%, to $647.6 million at December 
      31, 2025 from $711.7 million at December 31, 2024 due to decreases in 
      residential, multi-family, commercial and industrial and construction 
      loans, offset by an increase in commercial real estate loans. Average 
      yields on net loans increased 19 basis points from 4.69% for the 
      twelve months ended December 31, 2024, to 4.88% for the twelve months 
      ended December 31, 2025 due to a higher proportion of commercial real 
      estate loans. 
 
   -- Total deposits at December 31, 2025 were $652.4 million, increasing 
      $10.3 million, or 1.6%, as compared to $642.2 million at December 31, 
      2024, primarily due to a $14.8 million increase in interest-bearing 
      deposits offset by a $4.5 million decrease in non-interest bearing 
      checking accounts. The average rate paid on deposits decreased 43 basis 
      points to 3.30% for 2025 from 3.73% for 2024 due to lower market interest 
      rates and an increase in NOW accounts, which increased $10.5 million, or 
      19.0%, to $65.5 million at December 31, 2025 from $55.0 million at 
      December 31, 2024. The cost of such accounts also increased 23 basis 
      points to 2.76% for 2025 from 2.53% for 2024. 
 
   -- Federal Home Loan Bank advances decreased $78.9 million, or 45.8% to 
      $93.3 million at December 31, 2025 from $172.2 million as of December 31, 
      2024. 
 
   -- As of December 31, 2025, the Company repurchased 76,673 shares of its 
      common stock at a cost of $656,000, pursuant to its current program, 
      which allows for the repurchase of up to 237,950 shares. 

Kevin Pace, President and Chief Executive Officer, said "This year's results reflect the strength of our strategy and the disciplined execution of our team. After navigating a challenging period, we made significant strides returning to profitability with 2025 net income of $2.1 million compared to a loss of $2.2 million the prior year. With a more resilient balance sheet and a clear focus on responsible growth, we are well positioned to deliver long-term value for our shareholders and a meaningful impact across our communities. As we look ahead, we remain focused on investing in our customers, expanding our capabilities, and delivering consistent long-term value. Our 2026 growth plan includes a new branch location in Central/Southern New Jersey, with an anticipated opening in early summer. We continue to work through our sixth stock buyback program with a commitment to adding shareholder value."

Income Statement Analysis

Comparison of Operating Results for the Three Months Ended December 31, 2025 and December 31, 2024

Net income increased by $1.6 million to net income of $681,000 for the three months ended December 31, 2025 from a net loss of $930,000 for the three months ended December 31, 2024. This increase was primarily due to an increase of $359,000 in interest income, a $1.5 million decrease in interest expense and a decrease of $460,000 in income tax expense, offset by a $229,000 increase in non-interest expense and a $193,000 decrease in non-interest income.

Interest income increased $359,000, or 3.4%, from $10.6 million for the three months ended December 31, 2024 to $11.0 million for the three months ended December 31, 2025 due to higher yields on interest-earning assets offset by lower average balances.

Interest income on cash and cash equivalents increased $167,000, or 87.4%, to $358,000 for the three months ended December 31, 2025 from $191,000 for the three months ended December 31, 2024 due to a $12.7 million increase in the average balance to $26.2 million for the three months ended December 31, 2025 from $13.5 million for the three months ended December 31, 2024, reflecting the increase of liquidity due to lower loan originations. Due to rate cuts enacted by the Board of Governors of the Federal Reserve System in the third and fourth quarters of the year, the yield on cash and cash equivalents decreased 20 basis points from 5.61% for the three months ended December 31, 2024 to 5.41% for the three months ended December 31, 2025.

Interest income on loans decreased $110,000, or 1.3%, to $8.4 million for the three months ended December 31, 2025 compared to $8.5 million for the three months ended December 31, 2024 primarily due to a $55.4 million decrease in the average balance to $662.1 million for the three months ended December 31, 2025 from $717.4 million for the three months ended December 31, 2024, offset by a 31 basis point increase in the average yield from 4.73% for the three months ended December 31, 2024 to 5.04% for the three months ended December 31, 2025.

Interest income on securities increased $409,000, or 24.7%, to $2.1 million for the three months ended December 31, 2025 from $1.7 million for the three months ended December 31, 2024 primarily due to a 146 basis point increase in the average yield from 3.77% for the three months ended December 31, 2024 to 5.23% for the three months ended December 31, 2025 as a result of the balance sheet restructuring that took place in December 2025 offset by a $17.7 million decrease in the average balance to $157.6 million for the three months ended December 31, 2025 from $175.3 million for the three months ended December 31, 2024.

Interest expense decreased $1.4 million, or 17.7%, from $8.1 million for the three months ended December 31, 2024 to $6.7 million for the three months ended December 31, 2025 due to lower costs on interest-bearing liabilities and a $72.1 million decrease in the average balance of interest-bearing liabilities from $805.9 million for the three months ended December 31, 2024 to $733.8 million for the three months ended December 31, 2025. During the three months ended December 31, 2025, the use of cash flow hedges reduced interest expense by $76,000, compared to $280,000 in the same period of 2024.

Interest expense on interest-bearing deposits decreased $657,000, or 14.5%, to $5.5 million for the three months ended December 31, 2025 from $6.2 million for the three months ended December 31, 2024. The decrease was due to a 51 basis point decrease in the average cost of deposits to 3.51% for the three months ended December 31, 2025 from 4.02% for the three months ended December 31, 2024. The average balances of certificates of deposit decreased slightly to $501.3 million for the three months ended December 31, 2025 from $501.9 million for the three months ended December 31, 2024 while NOW and money market accounts and savings accounts increased $5.1 million and $7.7 million for the three months ended December 31, 2025, respectively, compared to the three months ended December 31, 2024.

Interest expense on Federal Home Loan Bank borrowings decreased $774,000, or 40.8%, from $1.9 million for the three months ended December 31, 2024 to $1.1 million for the three months ended December 31, 2025. The decrease was due to a decrease in the average balance of borrowings of $84.3 million to $107.9 million for the three months ended December 31, 2025 from $192.2 million for the three months ended December 31, 2024, which was partially offset by an increase in the average cost of 20 basis points to 4.12% for the three months ended December 31, 2025 from 3.92% for the three months ended December 31, 2024. At December 31, 2025, cash flow hedges used to manage interest rate risk had a notional value of $85.0 million, while fair value hedges totaled $60.0 million in notional value.

Net interest income increased $1.8 million, or 71.6%, to $4.3 million for the three months ended December 31, 2025 from $2.5 million for the three months ended December 31, 2024. The increase reflected a 90 basis point increase in our net interest rate spread to 1.51% for the three months ended December 31, 2025 from 0.61% for the three months ended December 31, 2024. Our net interest margin increased 91 basis points to 2.00% for the three months ended December 31, 2025 from 1.09% for the three months ended December 31, 2024.

We recorded a $218,000 recovery for credit losses for the three months ended December 31, 2024 compared to no provision for credit losses for the three-month period ended December 31, 2025. The recovery in the fourth quarter of 2024 and no provisions in the fourth quarter of 2025 reflects the decrease in the loan portfolio and no charge-offs.

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February 13, 2026 09:00 ET (14:00 GMT)