Bogota Savings Bank Market Research Report

Background

Overview

Bogota Savings Bank, established in 1893, is a New Jersey-chartered savings bank headquartered in Teaneck, New Jersey. With over 130 years of service, it has become one of the oldest banks in the state, offering a range of financial products and services to both individual and commercial clients.

Mission and Vision

The bank's mission is to provide excellent customer service and superior product distribution to its depositors located within New Jersey. It aims to be one of the lowest-cost and most efficient processing providers for individuals and family home ownership, as well as for small commercial real estate and multi-family borrowers.

Primary Area of Focus

Bogota Savings Bank specializes in residential and commercial mortgage lending, multi-family lending, and a variety of deposit products, including savings, checking, and certificate of deposit accounts. It also offers online and mobile banking services to enhance customer convenience.

Industry Significance

As a longstanding community bank, Bogota Savings Bank plays a crucial role in supporting local economies by providing accessible financial services and fostering community development. Its commitment to customer service and community engagement has solidified its reputation as a trusted financial institution in New Jersey.

Key Strategic Focus

Core Objectives

• Community Engagement: Maintain strong relationships with local communities through personalized banking services and active participation in community initiatives.

• Financial Stability: Ensure robust financial health by managing assets and liabilities effectively, maintaining adequate capital reserves, and adhering to regulatory standards.

• Service Diversification: Expand and enhance the range of financial products and services to meet the evolving needs of customers.

Specific Areas of Specialization

• Residential Mortgages: Offer a variety of mortgage products tailored to first-time homebuyers, refinancing, and home equity needs.

• Commercial Lending: Provide financing solutions for small to medium-sized businesses, including commercial real estate loans and multi-family property financing.

• Deposit Services: Offer a range of deposit accounts, such as savings, checking, and certificates of deposit, with competitive interest rates.

Key Technologies Utilized

• Online and Mobile Banking Platforms: Implement secure and user-friendly digital banking solutions to provide customers with convenient access to their accounts and financial services.

• Data Analytics: Utilize data analytics tools to assess customer needs, optimize product offerings, and enhance decision-making processes.

Primary Markets Targeted

Bogota Savings Bank primarily serves individuals and businesses in Bergen, Morris, and Essex counties in New Jersey, with a focus on local communities and their financial needs.

Financials and Funding

Funding History

• Reorganization and Stock Offering (2020): In January 2020, Bogota Financial Corp., the holding company for Bogota Savings Bank, completed a reorganization into a two-tier mutual holding company form. The company sold 5,657,735 shares of common stock at $10.00 per share in its subscription offering.

Recent Financial Performance

• Second Quarter 2025: The company reported a net income of $224,000, or $0.02 per share, compared to a net loss of $432,000, or $0.03 per share, for the same period in the previous year.

• First Quarter 2024: The company reported a net loss of $441,000, or $0.03 per share, compared to a net income of $993,000, or $0.08 per share, for the same period in the previous year.

Notable Investors

Specific details about individual investors are not publicly disclosed.

Utilization of Capital

The capital raised through the stock offering was intended to support the bank's growth initiatives, enhance its capital position, and fund strategic investments to improve service offerings and operational efficiency.

Pipeline Development

Key Pipeline Candidates

As a community bank, Bogota Savings Bank focuses on developing and offering financial products that cater to the specific needs of its local clientele, including:

• First-Time Homebuyer Programs: Tailored mortgage solutions to assist individuals purchasing their first home.

• Small Business Lending: Customized loan products designed to support the growth and development of local businesses.

• Community Investment Projects: Initiatives aimed at supporting local community development and infrastructure projects.

Stages of Development

These products are in various stages of development, from conceptualization to implementation, with ongoing efforts to refine and expand the offerings based on customer feedback and market demand.

Target Conditions

The bank's products are designed to address the financial needs of individuals and businesses in its primary market areas, focusing on affordability, accessibility, and community impact.

Anticipated Milestones

• Product Launches: Scheduled introductions of new mortgage products and business loan programs in the coming quarters.

• Community Initiatives: Ongoing support and participation in local community events and development projects.

Technological Platform and Innovation

Proprietary Technologies

• Online and Mobile Banking Platforms: Secure and user-friendly digital banking solutions that provide customers with convenient access to their accounts and financial services.

Significant Scientific Methods

• Data Analytics: Utilization of data analytics tools to assess customer needs, optimize product offerings, and enhance decision-making processes.

Leadership Team

Executive Profiles

• Kevin Pace: President and Chief Executive Officer. Kevin has been with the bank for over 20 years, serving in various leadership roles. He has been instrumental in driving the bank's strategic initiatives and community engagement efforts.

• Joseph Coccaro: Chief Financial Officer. Joseph brings extensive experience in financial management and has played a key role in overseeing the bank's financial operations and reporting.

• Jack Reiner: Chief Lending Officer. Jack has a strong background in lending and has been pivotal in developing and managing the bank's loan portfolio.

Competitor Profile

Market Insights and Dynamics

The banking sector in New Jersey is characterized by a mix of large national banks and community-focused institutions. Bogota Savings Bank competes with both, offering personalized services that cater to the specific needs of local communities.

Competitor Analysis

• Peapack-Gladstone Financial Corp. (PGC): A larger NJ-based competitor with a stronger commercial banking focus and wealth management services. Peapack’s diversified revenue streams and higher profitability contrast with Bogota’s thrift-oriented model.

• Citizens Financial Group, Inc. (CFG): A regional powerhouse with a multistate presence and robust digital banking platform. Citizens’ scale and brand recognition overshadow Bogota’s local niche, but its size may reduce agility in community-focused lending.

• Bank OZK (OZK): Known for aggressive commercial real estate lending, OZK’s national reach and higher-risk appetite contrast with Bogota’s conservative approach. OZK’s superior margins highlight the trade-off between growth and stability.

• Provident Financial Services, Inc. (PFS): Another NJ-focused thrift with a similar deposit base but better profitability metrics. Provident’s acquisition strategy and larger branch network give it an edge in market penetration, though Bogota’s lower-cost structure could be a counter.

Strategic Collaborations and Partnerships

Bogota Savings Bank has engaged in strategic collaborations to enhance its service offerings and community presence:

• Merger with Gibraltar Bank (2021): In March 2021, the bank merged with Gibraltar Bank, expanding its footprint into Essex and Morris counties and increasing its branch network.

• Sponsorship of Fairleigh Dickinson University Men's Basketball Program: The bank became the official sponsor of the Fairleigh Dickinson University Men's basketball program, with the team playing in the newly named Bogota Savings Bank Center.

Operational Insights

Bogota Savings Bank differentiates itself through personalized customer service, a deep understanding of local community needs, and a commitment to financial stability. Its focus on community engagement and conservative lending practices provide a competitive advantage in the New Jersey banking sector.

Strategic Opportunities and Future Directions

• Expansion of Digital Services: Enhancing online and mobile banking platforms to meet the growing needs of customers and remain competitive in the digital age.