Bogota Financial Corp. (BSBK): Marketing Mix Analysis [Dec-2025 Updated]

Honestly, navigating the late 2025 rate landscape is tough, even for a focused player like Bogota Financial Corp. (BSBK). You see the effort: they've engineered a balance sheet shift, pushing their Net Interest Margin to 1.80% in Q3 and turning a prior loss into $1.4 million in net income for the nine months ending September 30, 2025. This isn't just shuffling paper; it's a clear strategy to defend their Northern New Jersey core while optimizing yields on loans that shrank to $669.2 million. Curious how their Product, Place, Promotion, and Price strategies support this turnaround? Let's break down the four P's below.

Bogota Financial Corp. (BSBK) - Marketing Mix: Product

You're looking at the core offerings of Bogota Financial Corp. (BSBK), which, as a community bank, centers its product strategy around taking deposits and making loans in its Northern New Jersey market. The product element here is less about physical goods and more about the structure and quality of their financial services.

The company provides a full suite of retail and commercial deposit accounts, which is the funding side of their product equation. As of September 30, 2025, total deposits stood at $646.8 million, a modest increase of 0.7% from the prior period. This growth wasn't uniform across all types; for instance, Certificates of Deposit (CDs) saw a $9.3 million rise, and savings accounts increased by $5.7 million. The suite definitely includes checking, savings, money market accounts, CDs, and IRAs.

On the lending side, the core lending focus is on one-to four-family residential real estate loans, though the portfolio has been actively managed. The overall net loans figure as of September 30, 2025, was $669.2 million, reflecting a 6.0% decrease year-to-date. This contraction was driven by $68.4 million in repayments against only $24.0 million in new production.

Bogota Financial Corp. (BSBK) also offers commercial real estate, multi-family, and consumer loans like home equity lines. However, the recent portfolio contraction was primarily due to a reduction in residential real estate loans and construction loans, signaling a response to softer demand. To be fair, management noted they maintain limited exposure to commercial real estate loans secured by office space.

The management team is clearly executing a strategic shift towards financial engineering to optimize asset mix and yields. This is evident in the balance sheet adjustments. Total assets were $925.8 million at September 30, 2025. While loans shrank, the securities portfolio grew by 14.6% to $160.7 million, largely through purchases of mortgage-backed securities and corporate bonds. This repositioning is working to improve the interest rate spread, as the net interest margin hit 1.80% in Q3 2025, up 65 basis points year-over-year. They are using sophisticated tools to lock in these gains, reporting cash flow hedges with a notional value of $85.0 million and fair value hedges totaling $60.0 million as of that date.

Here's a quick look at the key asset and liability components that define the product base as of September 30, 2025:

The product strategy is focused on quality and yield enhancement, which you can see in the deposit composition changes:

• - Increase in Certificates of Deposit by $9.3 million.
• - Increase in savings accounts by $5.7 million.
• - Offset by declines in money market accounts.
• - Uninsured deposits represented 9.2% of total deposits.

Bogota Financial Corp. (BSBK) - Marketing Mix: Place

Bogota Financial Corp. operates as a traditional community bank, primarily serving the banking needs of its customers in Northern and Central New Jersey. This local focus is defintely their core strength against larger regional banks, emphasizing personalized service over broad geographic reach.

The physical distribution network has seen recent strategic adjustments. In the fourth quarter of 2024, the Bank completed a sale-leaseback transaction involving three of its branch offices, which generated a $9.0 million pre-tax gain. As of late 2025 filings, the Bank maintains a physical presence through its operating offices.

The physical locations anchor the community banking strategy. Key branch markets include the locations where the bank has established its presence:

• - Headquarters location in Teaneck, New Jersey, at 819 Teaneck Road.
• - Offices in Bogota and Hasbrouck Heights.
• - Other operational offices located in Newark, Oak Ridge, Parsippany, and Upper Saddle River, New Jersey.
• - A dedicated loan production office in Spring Lake, New Jersey.

The total number of physical offices providing in-person service is seven, supplemented by the loan production office. This physical footprint supports the core deposit base, which stood at $646.8 million as of September 30, 2025.

To complement the brick-and-mortar strategy, Bogota Financial Corp. provides digital banking services. While the specific term Cyber Office is not detailed in recent reports, the company maintains a digital presence through social media channels including YouTube, LinkedIn, Instagram, and Facebook. This digital channel supports customer access and transaction capabilities alongside the physical network.

Here's a quick look at the scale of the operation supporting this distribution strategy as of the latest reporting period:

Bogota Financial Corp. (BSBK) - Marketing Mix: Promotion

You're looking at how Bogota Financial Corp. (BSBK) communicates its value proposition right now. The promotion strategy is clearly dual-focused: reinforcing the community bank image while aggressively signaling shareholder commitment through capital actions.

The primary promotional message centers on the community-focused mission of Bogota Savings Bank, the holding company's main operation. This is about personalized service for its New Jersey customer base. The physical footprint supporting this message includes seven offices located across northern and central New Jersey, plus one loan production office in Spring Lake.

A major element of late 2025 promotion is shareholder value enhancement, signaled by the adoption of the sixth stock repurchase program. This action is a direct communication to investors about management's belief in the company's valuation following recent restructuring efforts.

The specifics of this shareholder promotion are concrete:

• Regulatory approval was secured on August 12, 2025, for the sixth buyback initiative.
• The program authorizes the repurchase of up to 237,590 shares.
• This authorized amount represents approximately 5% of the outstanding common stock, excluding shares held by Bogota Financial, MHC.

The management tone accompanying these actions is positive, emphasizing the immediate benefits derived from the balance sheet restructuring completed earlier in 2025. The financial results serve as the evidence for this positive messaging. For the nine months ended September 30, 2025, Bogota Financial Corp. reported net income of $1.4 million, a significant swing from the $1.2 million net loss reported in the comparable prior year period.

This focus on operational improvement directly supports the push for stickier, core deposit growth, which is essential for funding operations without relying heavily on volatile wholesale sources. The results show progress in this area, which management highlights as a success of their customer service focus.

Here's a quick look at the capital return and deposit metrics supporting the promotion:

The drive for core deposits is visible in the composition of that growth. You can see the specific areas management is promoting as successful:

• Growth was driven by increases in certificates of deposit.
• Savings accounts also showed an increase of $5.7 million.

Furthermore, management is promoting its success in managing funding costs, which is a direct result of the balance sheet restructuring. Federal Home Loan Bank borrowings were cut by $52.8 million, a 30.6% reduction, bringing the balance down to $119.4 million as of September 30, 2025. They are also using hedging strategies to lock in favorable rates; as of September 30, 2025, cash flow hedges had a notional value of $85.0 million, and fair value hedges totaled $60.0 million in notional value.

Bogota Financial Corp. (BSBK) - Marketing Mix: Price

You're looking at how Bogota Financial Corp. is pricing its core financial products, which for a bank like Bogota Financial Corp. really boils down to the cost of funds and the yield on assets. Effective pricing here means managing the spread to make the business work, especially when market conditions shift. The recent numbers definitely show a successful effort in managing the cost side of the equation.

The strategy around funding costs has paid off, helping to widen the margin Bogota Financial Corp. earns on its balance sheet. We see this clearly in the cost of money they are paying out. The average deposit cost decreased to 3.69% for the first nine months of 2025. That reduction in funding expense is a direct result of pricing deposits competitively while perhaps shifting the mix, and it's a key lever in their overall pricing strategy.

This improved cost structure directly translated to better performance in the Net Interest Margin (NIM), which is the core measure of a bank's pricing power on its assets relative to its liabilities. The Net Interest Margin (NIM) materially improved to 1.80% in Q3 2025. To put that in perspective, that's a significant lift, showing that the pricing on their earning assets-loans and securities-is generating more income relative to the cost of deposits and borrowings.

Here's a quick look at how these core pricing outcomes fed into the overall financial results for the nine-month period ending September 30, 2025:

The resulting profitability from these pricing dynamics is stark. The Net Interest Income surged 38.9% to $11.2 million for the nine months ended September 30, 2025. That's the direct financial outcome of successfully managing the price paid for deposits against the price earned on loans and securities. It's what allowed Bogota Financial Corp. to achieve a major financial milestone.

The ultimate measure of successful pricing strategy is the bottom line. The nine-month 2025 net income was $1.4 million, a major turnaround from the prior year's loss. This turnaround isn't just about volume; it's about the pricing structure-the NIM improvement and lower funding costs were the primary drivers. Furthermore, the balance sheet size, which underpins all pricing activity, stood at $925.8 million in total assets as of September 30, 2025. You'll want to watch how they maintain that NIM now that they've stabilized funding costs.

To summarize the key pricing-related performance indicators:

• Net Interest Margin (NIM) materially improved to 1.80% in Q3 2025.
• Net Interest Income surged 38.9% to $11.2 million for the nine months ended September 30, 2025.
• Average deposit cost decreased to 3.69% for the first nine months of 2025.
• Nine-month 2025 net income was $1.4 million, a major turnaround from the prior year's loss.
• Total assets stood at $925.8 million as of September 30, 2025.

Finance: draft the projected NIM for Q4 2025 based on current deposit rates by next Tuesday.