Bogota Financial Corp.

NOTE1** –** SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

Nature of Operations and Principles of Consolidation: On* January 15, 2020,Bogota Financial Corp. (the “Company,” “we” or “our”) became the mid-tier stock holding company for Bogota Savings Bank (the “Bank”) in connection with the reorganization of Bogota Savings Bank into thetwo*-tier mutual holding company structure. The Company completed its stock offering in connection with the mutual holding company reorganization of the Bank on* January 15, 2020.Shares of the Company’s common stock began trading on January 16, 2020*on the Nasdaq Capital Market under the trading symbol “BSBK.”

The Bank maintainstwo subsidiaries. Bogota Securities Corp. was formed to buy, sell and hold investment securities. Bogota Properties, LLC, formed to hold real estate owned by the Company, was inactive at* June 30, 2025* and* December 31, 2024*.

The Bank generally originates residential, commercial and consumer loans to, and accepts deposits from, customers in New Jersey. The debtors’ ability to repay the loans is dependent upon the region’s economy and the borrowers’ circumstances. The Bank is also subject to the regulations of certain federal and state agencies and undergoes periodic examination by those regulatory authorities.

Reclassifications: Some items in the prior year financial statements were reclassified to conform to the current presentation. Reclassifications hadno effect on prior year net loss or stockholders' equity.

Earnings (Loss) per Share: Basic earnings (loss) per share (“EPS”) is computed by dividing net income (loss) available to common stockholders by the weighted average number of common shares outstanding during the period. For purposes of calculating basic EPS, weighted average common shares outstanding excludes unallocated employee stock ownership plan shares that havenot been committed for release and non-vested shares of restricted stock. Diluted EPS is computed using the same method as basic EPS, except it also reflects the potential dilution which could occur if non-vested restricted stock vested or stock options were exercised and converted into common stock. The potentially diluted shares would then be included in the weighted average number of shares outstanding for the period using the treasury stock method. For thethree andsix months ended* June 30, 2025* and* June 30, 2024*, options to purchase 508,619 and 523,619 common shares, respectively, with an exercise price of $10.45 were outstanding but werenot included in the computation of diluted earnings per common share because to do so would be anti-dilutive. Anti-dilutive options are those options with exercise prices in excess of the weighted average market value for the periods presented. For thethree andsix months ended* June 30, 2025*, 5,189 and 1,957 shares of outstanding non-vested stock were added in the computation of diluted earnings per share.

The following is a reconciliation of the numerators and denominators of the basic and diluted earnings per share calculations for thethree andsix months ended* June 30, 2025and2024*.

Use of Estimates: To prepare financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP"), management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and the disclosures provided, and actual results could differ under different conditions than those assumed.

Basis of Presentation: The accompanying unaudited consolidated financial statements have been prepared in conformity with GAAP for interim financial information and pursuant to the requirements for reporting in Article10 of Regulation S-X of the Securities Exchange Act of1934, as amended. The Jumpstart Our Business Startups Act of2012 (the “JOBS Act”) contains provisions that, among other things, reduce certain reporting requirements for qualifying public companies. As an “emerging growth company,” we* maydelay adoption of new or revised accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies. We intend to take advantage of the benefits of this extended transition period. Accordingly, our financial statements may**not* be comparable to companies that comply with such new or revised accounting standards.

These financial statements include the accounts of the Company, the Bank and its subsidiaries, and all significant intercompany balances and transactions are eliminated in consolidation.

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions based on available information. In the opinion of management, all adjustments (consisting of normal recurring adjustments) and disclosures necessary for the fair presentation of the accompanying consolidated financial statements have been included. The results of operations for any interim periods arenot necessarily indicative of the results which* may*be expected for the entire year or any other period.

The unaudited financial statements and other financial information contained in this Quarterly Report on Form10-Q should be read in conjunction with the audited financial statements, and related notes, of the Company at and for the year ended* December 31, 2024*.

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Segment Reporting: The Company operatesone reportable segment of business, “retail banking.” Through its retail banking segment, the Company provides a broad range of retail and commercial banking services. The accounting policies of the retail banking segment are the same as those described in the summary of significant accounting policies.

The Company's chief operating decision maker ("CODM") is the President and Chief Executive Officer, who decides how to allocate resources based on net income that also is reported on the statement of operations as consolidated net income.

The measure of segment assets is reported on the statement of financial condition as total consolidated assets.

NOTE2 – SECURITIES AVAILABLE FOR SALE

The following table summarizes the amortized cost, fair value, and gross unrealized gains and losses of securities available for sale, by contractual maturity,none of which had an allowance for credit losses at* June 30, 2025* and* December 31, 2024*:

All of the mortgaged-backed securities (“MBSs”) are issued by the Federal Home Loan Mortgage Corporation (“FHLMC”), Federal National Mortgage Association (“FNMA”) and Government National Mortgage Association.

There wereno sales of securities during thethree andsix months ended* June 30, 2025* or* June 30, 2024*.

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The age of unrealized losses and the fair value of related securities as of* June 30, 2025* and* December 31, 2024* were as follows:

NOTE2 – SECURITIES AVAILABLE FOR SALE(Continued)

Unrealized losses on corporate bonds available for sale arenot considered to be credit losses because the bonds are of high credit quality, management doesnot intend to sell and it is likely that management willnot be required to sell the securities prior to their anticipated recovery, and the decline in fair value was largely due to changes in interest rates and other market conditions. At* June 30, 2025*,100% of the mortgage-backed securities were issued by U.S. government-sponsored entities and agencies, primarily FNMA and FHLMC, institutions which the government has affirmed its commitment to support. There were 51 securities in a loss position at* June 30, 2025*. Because the decline in fair value was attributable to changes in interest rates and illiquidity, andnot credit quality, and because the Bank doesnot have the intent to sell these mortgage-backed securities and it is likely that it willnot be required to sell the securities before their anticipated recovery, the Bank doesnot consider these losses to be credit-related at* June 30, 2025*. As of* June 30, 2025*, no allowance for credit losses ("ACL") was required on available for sale securities. At* June 30, 2025* and* December 31, 2024*, securities available for sale with a carrying value of $5,476,487 and $5,741,240 were pledged to secure public deposits. Securities available for saleat* June 30, 2025* and* December 31, 2024*, which were pledged to secure repurchase agreements at the Federal Home Loan Bank of New York, had a carrying value of $69,916 and $12,881,892, respectively.

NOTE3 – LOANS

Loans are summarized as follows at* June 30, 2025* and* December 31, 2024*:

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The Bank has granted loans to officers and directors of the Bank. At* June 30, 2025* and* December 31, 2024*, such loans totaled $2,052,522 and $2,256,911, respectively.

At* June 30, 2025* and* December 31, 2024*, deferred loan fees were $2,458,592 and $2,496,364, respectively.

The following table presents the activity in the ACL by portfolio segment for thethree andsix months ended* June 30, 2025and2024*:

For thethree andsix months ended* June 30, 2025*, the provision for credit losses included a recovery of $50,000 due toa decrease in off-balance sheet commitments.

Since the Bank continues to have limited historical loss history, the majority of changes in the ACL noted in the above tables are driven by changes in the balances of the related loan segments and in the economic forecast.

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The following table presents the balance of non-performing loans by portfolio segments as of* June 30, 2025* and* December 31, 2024*:

Collateral - dependent loans individually evaluated with the ACL by collateral type were as follows at* June 30, 2025* and* December 31, 2024*:

Interest income recognized during impairment and cash-basis interest income for thethree andsix months ended* June 30, 2025and2024* was nominal.

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No nonaccrual loans had specific reserves as of* June 30, 2025* as they were all well-secured and in the process of collection. The Bank hadno other real estate owned at either* June 30, 2025* or* December 31, 2024*.

The following table presents the aging of the recorded investment in past due loans as of* June 30, 2025* and* December 31, 2024*, by class of loans:

Credit Quality Indicators

The Bank categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Bank analyzes loans individually by classifying the loans as to credit risk. Commercial and multi-family real estate, commercial and industrial and construction loans are graded on an annual basis. Residential and consumer loans are primarily evaluated based on performance. Refer to the immediately preceding table for the aging of the recorded investment of these loan segments. The Bank uses the following definitions for risk ratings:

Special Mention – Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses* may*result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date.

Substandard – Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies arenot corrected.

Doubtful – Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.

Loansnot meeting the criteria above are considered to be Pass rated loans.

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The following table presents loans, by risk category, loan class and year of origination as of* June 30, 2025* and* December 31, 2024*:

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There wereno loan modifications during thethree- orsix-month periods ended * June 30, 2025* .

NOTE4 – DERIVATIVES AND HEDGING ACTIVITES

The Company uses derivative financial instruments as components of its market risk management, principally to manage interest rate risk. Certain derivatives* maybe entered into in connection with transactions with commercial customers. Derivatives arenot* used for speculative purposes. All derivatives are recognized as either assets or liabilities in the Consolidated Statements of Financial Condition, reported at fair value and presented on a gross basis. Until a derivative is settled, a favorable change in fair value results in an unrealized gain that is recognized as an asset, while an unfavorable change in fair value results in an unrealized loss that is recognized as a liability.

The Company generally applies hedge accounting to its derivatives used for market risk management purposes. Hedge accounting is permitted only if specific criteria are met, including a requirement that a highly effective relationship exists between the derivative instrument and the hedged item, both at inception of the hedge and on an ongoing basis. Changes in the fair value of effective fair value hedges are recognized in current earnings (with the change in fair value of the hedged asset or liability also recognized in earnings). Changes in the fair value of effective cash flow hedges are recognized in other comprehensive income (loss) until earnings are affected by the variability in cash flows of the designated hedged item. Ineffective portions of hedge results are recognized in current earnings. Changes in the fair value of derivatives for which hedge accounting isnot applied are recognized in current earnings.

The Company formally documents at inception all relationships between the derivative instruments and the hedged items, as well as its risk management objectives and strategies for undertaking the hedge transactions. This process includes linking all derivatives that are designated as hedges to specific assets and liabilities, or to specific firm commitments. The Company also formally assesses, both at inception of the hedge and on an ongoing basis, whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in the fair values or cash flows of the hedged items. If it is determined that a derivative isnot highly effective or has ceased to be a highly effective hedge, the Company would discontinue hedge accounting prospectively. Gains or losses resulting from the termination of a derivative accounted for as a cash flow hedge remain in other comprehensive income (loss) and is (accreted) amortized to earnings over the remaining period of the former hedging relationship.

Certain derivative financial instruments are offered to certain commercial banking customers to manage their risk of exposure and risk management strategies. These derivative instruments consist primarily of currency forward contracts and interest rate swap contracts. The risk associated with these transactions is mitigated by simultaneously entering into similar transactions having essentially offsetting terms with athird party, i.e. back-to-back swaps. In addition, the Company executes interest rate swaps withthird parties in order to hedge the interest rate risk of short-term FHLB advances.

Interest Rate Swaps.At June 30, 2025 and December 31, 2024, the Company hadfive cash flow interest rate swaps with notional amounts of $65.0 million hedging certain FHLB advances and brokered deposits. The Company also hadtwo fair value interest rate swaps with notional amounts of $60.0 million hedging certain fixed-rate residential loans. These interest rate swaps meet the hedge accounting requirements. Changes in the fair value of cash flow hedges are recorded in comprehensive income. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without the exchange of the underlying notional amount, which converts variable-rate liabilities to a fixed rate. Interest rate swaps designated as fair value hedges involve the payment of fixed-rate amounts to a counterparty in exchange for the Company receiving variable-rate payments over the life of the agreement without the exchange of the underlying notional amount, which convert fixed-rate assets into a variable rate. The fair value hedges are recorded as components of other assets and other liabilities on the Company’s consolidated statement of financial condition. Changes in fair value of the fair value hedges are recorded against the basis of the asset or liability being hedged. The gain or loss on these derivatives, as well as the offsetting loss or gain on the hedged items attributable to the hedged risk, are recognized in interest income in the Company’s consolidated statements of operations.

The table below presents the fair value of the Company’s derivative financial instruments as well as their classification in the Consolidated Statements of Financial Condition at* June 30, 2025*:

For thethree andsix months ended* June 30, 2025*, unrealized gains of $163,000 and $482,000 were recorded for changes in fair value of interest rate swaps withthird parties and at* June 30, 2025*, accrued interest was $90,000, after-tax.

The Company has agreements with counterparties that contain a provision that if the Company defaults on any of its indebtedness, including default where repayment of the indebtedness hasnot been accelerated by the lender, then the Company could also be declared in default of its derivative obligations. During thethree months ended* June 30, 2025and2024*, the net effect on interest expense on the Federal Home Loan Bank advances and certificates of deposit was a reduced expense of $186,000 and $461,000, respectively. During thesix months ended* June 30, 2025and2024*, the net effect on interest expense on the Federal Home Loan Bank advances and certificates of deposit was a reduced expense of $363,000 and $749,000, respectively.

NOTE5 – FAIR VALUE

Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There arethree levels of inputs that* may*be used to measure fair values:

Level1* *– Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date.

Level2** – Significant other observable inputs other than Level1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that arenot active; or other inputs that are observable or can be corroborated by observable market data.

Level3** – Significant unobservable inputs that reflect a bank’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.

The Bank used the following methods and significant assumptions to estimate the fair value of each type of financial instrument:

The Bank’s available-for-sale portfolio is carried at estimated fair value on a recurring basis, with any unrealized gains and losses, net of taxes, reported as accumulated other comprehensive income/loss in stockholders’ equity. The securities available-for-sale portfolio consists of corporate bonds and mortgage-backed securities. The fair values of these securities are obtained from an independent nationally recognized pricing service. An independent pricing service provides prices which are categorized as Level2, as quoted prices in active markets for identical assets are generallynot available for the securities.

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NOTE5 – FAIR VALUE(Continued)

Assets measured at fair value on a recurring basis are summarized below:

There wereno transfers between level1 and level2 during thethree orsix months ended* June 30, 2025*.

The carrying amounts and estimated fair values of financial instrumentsnot measured at fair value, at* June 30, 2025* and* December 31, 2024*, were as follows:

Carrying amount is the estimated fair value for cash and cash equivalents. Other balance sheet instruments such as cash and cash equivalents, accrued interest receivable, accrued interest payable and Bank owned life insurance holding costs approximate fair value. The fair value of off-balance sheet items isnot considered material.

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NOTE6 – ACCUMULATED OTHER COMPREHENSIVE LOSS

The components of accumulated other comprehensive loss included in equity (net of tax) for thethree andsix months ended* June 30, 2025and2024* was as follows:

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