# Bogota Financial Corp. > Clarifo company profile — qualitative business description generated from > the company's filings. Financial statements, charts and ratios are > available on Clarifo (https://www.clarifo.com/en/companies/Bogota Financial Corp.). ## Overview Bogota Financial Corp. is the holding company for Bogota Savings Bank, a community-oriented U.S. savings institution focused on gathering deposits and originating loans in its local market area. Its balance sheet is centered on residential real estate lending, construction lending, commercial real estate, and securities, funded primarily by customer deposits and borrowings. The company also uses Federal Home Loan Bank funding and correspondent bank lines to manage liquidity. Because it operates as a savings institution rather than a diversified financial conglomerate, its performance is closely tied to local credit conditions, deposit competition, and interest-rate movements. ## Products & services • Deposit accounts and core funding products • Residential real estate loans • Construction loans • Commercial real estate loans • Consumer and other lending • Securities portfolio and liquidity management • Federal Home Loan Bank and correspondent bank funding - **Deposit funding** (25%) — Core deposit products used to fund lending and support liquidity, including customer deposits and municipal deposits. - **Residential real estate lending** (45%) — One- to four-family mortgage loans and related residential real estate credit products. - **Commercial and construction lending** (20%) — Commercial real estate and construction loans that provide higher-yielding credit exposure to local borrowers. - **Consumer and other loans** (5%) — Smaller consumer and miscellaneous lending products serving local retail customers. - **Investment securities and liquidity management** (5%) — Available-for-sale securities, cash management, and funding sources used to support balance-sheet liquidity. - Deposit accounts and core funding products - Residential real estate loans - Construction loans - Commercial real estate loans - Consumer and other lending - Securities portfolio and liquidity management - Federal Home Loan Bank and correspondent bank funding ## Customers Bogota Financial serves households and local borrowers in its market area, with a lending mix that is heavily weighted toward residential real estate. Its deposit base comes from retail customers and municipal or other institutional depositors that value relationship banking and local branch access. The company also relies on borrowers seeking construction and commercial real estate financing, which tends to be relationship-driven and tied to local property markets. On the funding side, it uses FHLB advances and correspondent bank lines to supplement deposits when loan demand or deposit flows require additional liquidity. - **Retail deposit customers** (primary) — Households and local savers who place checking, savings, and time deposits with the bank because of convenience, relationship banking, and perceived safety. - **Residential mortgage borrowers** (primary) — Individuals and families obtaining one- to four-family real estate loans for home purchase, refinance, or home equity needs. - **Commercial real estate borrowers** (secondary) — Local property owners and small businesses that borrow against income-producing real estate or owner-occupied properties. - **Construction borrowers** (secondary) — Developers and builders seeking short-duration financing for residential or small commercial projects. - **Municipal and institutional depositors** (secondary) — Public-sector and other institutional customers that place deposits and require collateralized funding arrangements. - Local households seeking mortgage financing and deposit accounts - Residential real estate borrowers refinancing or purchasing homes - Construction borrowers needing short-term project financing - Commercial property owners and small businesses needing CRE credit - Municipal depositors and other institutional funding relationships - Customers who value community banking and local decision-making ## Geography Bogota Financial’s business is concentrated in the United States and appears to be centered on a local or regional market area rather than a broad national footprint. The company’s disclosures emphasize conditions in its market area, including local real estate values, loan demand, and deposit competition, which indicates that geography is a major driver of performance. It also maintains funding relationships with the Federal Home Loan Bank of New York and correspondent banks, both of which are U.S.-based liquidity sources. Because the loan book is tied to local residential and commercial property markets, regional economic weakness or housing stress would directly affect credit quality and growth. - Business is concentrated in the United States, with a local market-area focus - Loan demand depends on conditions in the company’s core community banking footprint - Residential and commercial real estate exposure ties results to local property markets - Funding includes the Federal Home Loan Bank of New York and U.S. correspondent banks - Deposit competition and borrower demand are shaped by local economic conditions - No country-level revenue disclosure was provided in the excerpts ## Strategy Bogota Financial’s strategy is centered on managing interest-rate risk while preserving liquidity and capital in a deposit-funded balance sheet. Management explicitly emphasizes originating and purchasing adjustable-rate loans, promoting core deposits, and using FHLB borrowings and brokered deposits selectively depending on the rate environment. The company also keeps a majority of its investments available-for-sale, which gives it flexibility to respond to funding needs and market changes. In addition, it seeks to diversify the loan portfolio and strengthen capital, which is important for a community bank exposed to local credit cycles and real estate conditions. - **Interest-rate risk management** (short-term) — The bank’s assets reprice differently from its deposit and borrowing base, so managing margin sensitivity is central to earnings stability. - **Core deposit retention and liquidity** (short-term) — Stable deposits lower funding costs and reduce dependence on wholesale borrowings during periods of deposit outflow or loan growth. - **Loan portfolio diversification** (medium-term) — A more balanced loan mix reduces exposure to local real estate cycles and improves resilience in a community banking model. - **Capital and balance-sheet resilience** (medium-term) — Stronger capital supports regulatory compliance, funding confidence, and the ability to absorb credit or valuation shocks. - Manage interest-rate risk through adjustable-rate lending and funding discipline - Grow and retain core deposits to reduce reliance on wholesale funding - Use FHLB advances and brokered deposits tactically based on rate conditions - Maintain liquidity through available-for-sale securities and cash balances - Diversify the loan portfolio to reduce concentration in local real estate - Strengthen capital to support balance-sheet resilience and regulatory flexibility ## Risks Bogota Financial faces the classic risks of a community savings institution: credit deterioration, deposit competition, and sensitivity to interest-rate changes. Its disclosures highlight exposure to local economic weakness, real estate value declines, loan delinquencies, and changes in uninsured deposits, all of which can pressure earnings and liquidity. The company also depends on wholesale funding sources such as FHLB advances, so funding costs can rise quickly if deposit flows weaken or market rates move higher. Operational and regulatory risks are also meaningful, including cybersecurity, technology maintenance, capital requirements, and changes in accounting or banking rules. - **Interest-rate risk** [high] — The company’s assets, mainly loans and securities, have longer maturities than its deposits and borrowings, which can reduce earnings and capital when rates move sharply. - **Local real estate credit deterioration** [high] — A large share of lending is tied to residential, commercial, and construction real estate, making the loan book sensitive to property-market weakness. - **Deposit competition and liquidity pressure** [high] — The bank depends on customer deposits and wholesale funding, so competition for deposits or deposit runoff can raise funding costs and reduce flexibility. - **Cybersecurity and third-party technology risk** [medium] — The company explicitly cites cyber risk against its own systems and those of vendors, which could disrupt service or expose customer data. - **Regulatory and capital requirement changes** [medium] — As a regulated savings institution, changes in banking rules, fees, or capital standards can affect profitability and growth capacity. - Interest-rate risk can compress net interest margin because assets and liabilities reprice differently - Credit risk is concentrated in local real estate and construction lending - Deposit outflows or a higher uninsured deposit mix can pressure liquidity and funding costs - Local recession, unemployment, or property value declines can increase delinquencies and charge-offs - Wholesale funding dependence can become expensive when market rates rise or liquidity tightens - Cybersecurity and third-party technology risk can disrupt operations and customer trust - Regulatory and capital requirement changes can increase compliance burden and constrain growth ## Accounting For Bogota Financial, the most important accounting judgments relate to loan credit losses, securities valuation, and the treatment of interest-rate-sensitive balance-sheet items. The allowance for credit losses depends on estimates of delinquencies, charge-offs, non-performing loans, real estate values, and economic conditions in the market area, so changes in assumptions can materially affect earnings. Available-for-sale securities are marked to market, meaning rate moves can create unrealized gains or losses that affect equity and liquidity perception even when cash flows are unchanged. The company also has meaningful quarter-to-quarter variability in non-interest expense, including occupancy and equipment costs after a sale-leaseback transaction and professional fees tied to a past due loan, which can distort short-term comparability. - **Allowance for credit losses** — Provision expense and loan carrying values - **Fair value of available-for-sale securities** — Accumulated other comprehensive income and liquidity presentation - **Non-interest expense timing** — Operating expense trend and pre-tax income - **Income tax benefit volatility** — Net income and effective tax rate - Allowance for credit losses depends on management estimates of local credit conditions - Loan delinquency and charge-off trends can materially change provision expense - Available-for-sale securities are fair-valued, so rate moves affect accumulated OCI - Sale-leaseback accounting increased occupancy and equipment expense in 2025 - Professional fees tied to problem loans can create lumpy non-interest expense - Income tax benefit can swing with changes in pre-tax earnings and valuation assumptions --- *Last updated: 2026-08-11T04:46:24.701932+00:00*