Bogota Financial Corp. (BSBK): BCG Matrix [Dec-2025 Updated]

You're looking for a clear, no-nonsense breakdown of Bogota Financial Corp.'s (BSBK) business lines using the Boston Consulting Group Matrix, and honestly, the Q3 2025 results give us a very interesting picture of a bank in transition. We see core earnings powering ahead with Net Interest Income up 38.9% and a solid deposit base holding steady around $646.8 million, but the loan portfolio is actually shrinking by 6.0% and a single bad loan is pushing delinquencies to 3.2%. Here's the quick math on where BSBK's capital and effort are currently focused, mapping near-term risks and opportunities to the classic four quadrants-dive in to see exactly which units are the Stars and which are the Dogs.

Background of Bogota Financial Corp. (BSBK)

You're looking at Bogota Financial Corp. (BSBK), which you should know is the holding company for Bogota Savings Bank. This New Jersey-based institution focuses squarely on the retail banking segment, providing the usual suite of personal and business banking services you'd expect. They generate revenue by originating various loans-residential real estate, commercial, construction, and consumer-and by taking in deposits from their local customer base. Honestly, it's a straightforward community bank model, but the recent numbers show some interesting shifts in their asset mix.

Let's look at the recent performance; the story for the first nine months of 2025 is a definite swing back to the black. Bogota Financial Corp. posted a net income of $1.4 million for the nine months ending September 30, 2025. That's a solid recovery from the $1.2 million net loss they recorded in the comparable period of 2024. To be fair, that nine-month income figure includes a one-time $543,000 death benefit received from a bank-owned life insurance policy, so you'll want to keep that in mind when assessing core operating strength.

On the balance sheet as of September 30, 2025, total assets settled at $925.8 million, which is a 4.7% drop year-to-date. You see that reduction primarily because cash and cash equivalents fell by 40.2% to just $31.2 million; they used some of that excess liquidity to pay down borrowings and buy securities. Speaking of securities, that portfolio grew by 14.6% to $160.7 million. However, net loans actually decreased by 6.0% to $669.2 million, mainly driven by lower demand for residential mortgages and construction loans in the current rate environment.

The real operational win this past quarter was in interest income management. For the third quarter of 2025, net interest income jumped a significant 46.6% to $3.9 million. This strong performance pushed the Net Interest Margin (NIM) up by 65 basis points to 1.80% for Q3 2025. Deposits saw a slight uptick of 0.7% to $646.8 million, helped by growth in certificates of deposit and savings accounts, even as Federal Home Loan Bank advances were cut by 30.6%.

Valuation-wise, as of late November 2025, the market capitalization sits around $111.1 million, but the Price-to-Earnings ratio is quite high at 171.33, suggesting the market is pricing in future growth or that recent profitability is seen as fragile. The latest reported quarterly Return on Equity was low, at just 0.35%, with a net margin of 1.08%. Finance: draft 13-week cash view by Friday.

Bogota Financial Corp. (BSBK) - BCG Matrix: Stars

You're looking at the business units that are driving the most momentum for Bogota Financial Corp. right now. These are the areas where high market share meets a rapidly expanding market, demanding heavy investment to maintain leadership. For Bogota Financial Corp., the core lending and interest-earning activities, particularly as reflected in the net interest performance, are clearly in the Star quadrant.

The financial evidence for this high-growth, high-share positioning is compelling. For the nine months ended September 30, 2025, Net Interest Income (NII) saw a massive jump of 38.9%, reaching $11.2 million. This growth wasn't accidental; it came from successfully expanding the rate spread. To be fair, the market environment helped, but the execution on the balance sheet was key.

This strong pricing power, evidenced by the Net Interest Margin (NIM) climbing 65 basis points to reach 1.80% in Q3 2025, shows Bogota Financial Corp. is leading in its segment's current pricing structure. Stars consume cash to fuel growth, and you see that investment reflected in the balance sheet strategy. The firm actively shifted its asset mix, increasing the securities portfolio by 14.6% to $160.7 million as of the latest reporting period. That's a clear signal: invest heavily where the growth is happening now.

Keeping these Stars fed requires careful management of the cash they burn. Bogota Financial Corp. is using specific tools to offset the high investment needs. Honestly, this is what separates a true Star from a high-growth failure.

• Manage interest rate risk using cash flow hedges.
• Employ fair value hedges to actively reduce funding costs.
• Maintain leadership position in the retail banking segment.
• Invest capital into higher-yielding securities assets.

Bogota Financial Corp. (BSBK) - BCG Matrix: Cash Cows

You're looking at the bedrock of Bogota Financial Corp. (BSBK)'s operations, the business units that reliably generate more cash than they consume. For a bank, this stability centers on its core funding base. The core deposit base stands as $646.8 million as of September 30, 2025. This is the engine that keeps the lights on, frankly.

The established nature of this segment is best seen when you map out the key balance sheet figures from the third quarter of 2025. This table shows the scale of the established base supporting the current operations:

This deposit base shows modest expansion, confirming its mature market position. Total deposits increased by $4.6 million, representing a 0.7% growth rate from December 31, 2024. This low-growth, high-share characteristic means you don't need massive marketing spend here; you just need to maintain the relationship. The growth was specifically driven by stable sources, which is exactly what you want in a cash cow.

• Certificates of Deposit rose by $9.3 million.
• Savings accounts increased by $5.7 million.

The overall asset base, totaling $925.8 million at the end of Q3 2025, provides the scale needed to absorb corporate overhead and fund strategic shifts elsewhere in the portfolio. Furthermore, Bogota Financial Corp. actively managed its funding mix to improve efficiency, a classic 'milking' strategy. They executed a significant repayment of wholesale funding, which typically carries a higher cost.

Specifically, Federal Home Loan Bank advances saw a reduction of $52.8 million, which is a 30.6% decrease from the end of 2024. This repayment directly lowers interest expense, boosting the net cash flow generated by these stable deposits. The company also reported net income of $455,000 for the third quarter of 2025, a material turnaround from the prior year's loss, showing the core business is now profitable.

Key operational metrics supporting the Cash Cow status include:

• Net Interest Margin (NIM) widened to 1.80% (up 65 basis points quarterly).
• Interest expense decreased by $1.2 million, or 15.4%, partly due to reduced borrowings.
• Net income for the first nine months of 2025 reached $1.4 million.

Bogota Financial Corp. (BSBK) - BCG Matrix: Dogs

You're looking at the units in Bogota Financial Corp. (BSBK) that are stuck in low-growth markets with low relative market share, the classic Dogs. These units tie up capital without generating significant returns, making them prime candidates for divestiture or aggressive minimization. For BSBK as of Q3 2025, the contraction in the loan book is a clear signal here.

Net loans decreased by 6.0% or $42.5 million to $669.2 million as of September 30, 2025, driven by reduced demand in specific areas. Honestly, this points directly to the weakness in the residential real estate and construction loan segments, which are clearly contracting in the current interest rate environment. It's a tough spot when your core lending products aren't finding traction.

The draw-down of liquid assets is also telling. Cash and cash equivalents fell by 40.2% or $21.0 million, landing at $31.2 million on September 30, 2025. This indicates that liquid assets were used for other purposes, perhaps to cover operating costs or fund the shift into securities, rather than being held as a buffer for these low-growth areas. It suggests management is actively managing down assets that aren't performing.

Here's a quick look at the metrics defining this quadrant for Bogota Financial Corp. as of the third quarter of 2025:

When you look at the non-interest income stream, which is where fee-based services should show growth, you see limited core improvement. Non-interest income, excluding one-time items, is relatively flat, showing defintely limited core fee-based growth. The reported nine-month increase was heavily skewed by a one-time event.

The components of non-interest income for the nine months ended September 30, 2025, illustrate this point:

• Total Non-Interest Income (9 months): Increased to $1.5 million
• Bank-Owned Life Insurance (BOLI) Income: Increased by 87.1%
• One-Time Death Benefit (BOLI): Approximately $543,000
• Gains on Sale of Loans: Increased by $26,000

Expensive turn-around plans usually don't work for Dogs because the market itself is stagnant. For BSBK, the contraction in the loan portfolio, especially in real estate and construction, confirms this low-growth market reality. Finance: draft 13-week cash view by Friday.

Bogota Financial Corp. (BSBK) - BCG Matrix: Question Marks

You're looking at business units that are burning cash now but operate in markets where Bogota Financial Corp. sees significant future potential. These are the areas demanding heavy investment to capture market share quickly before they stagnate into Dogs.

Asset quality in one segment shows clear pressure, indicating a high-risk, high-growth area that needs immediate attention. Delinquent loans have climbed to 3.2% of total loans as of September 30, 2025, a sharp rise from 2.0% at the close of 2024. This trend is heavily influenced by a specific problem asset.

The primary driver behind this asset quality shift is a $7.1 million commercial real estate loan, which is currently under intense management focus for collection or resolution. This single exposure represents a significant near-term risk that Bogota Financial Corp. must address to prevent further erosion of asset performance metrics.

The revenue stream from non-interest sources shows high growth but lacks sustainability, a classic Question Mark trait. Non-interest income grew by 65.9% to reach $1.5 million for the nine months ended September 30, 2025. Honestly, this growth is not repeatable, as it is heavily reliant on a one-time $543,000 death benefit received from a bank-owned life insurance policy.

The future growth prospects are tied to new, unproven ventures that require capital deployment without guaranteed returns. Bogota Financial Corp. has committed capital to this high-potential but unproven area. Specifically, the company made a $2.5 million equity investment into a limited partnership focused on sale-leaseback transactions.

This investment is a clear bet on future market share in a new operational area. You need to watch the performance indicators for this partnership closely, as these Question Marks must either secure a strong market position or face divestiture.

• Delinquent loans: 3.2% of total loans (up from 2.0% in 2024).
• Single CRE loan driving delinquency: $7.1 million balance.
• Non-interest income (9M 2025): $1.5 million.
• One-time BOLI benefit: $543,000.
• New equity investment: $2.5 million.