Why did BSBK's Q3 2024 EPS forecast miss expectations?

Bogota Financial Corp. (BSBK) did not provide an EPS forecast for Q4 2024 in the available reports. However, we can infer that the bank's financial performance in Q4 2024 was challenging based on the following points:

1. **Net Loss Context**: BSBK reported a net loss of $930,000 for Q4 2024, which translates to a loss of $0.07 per share. This negative result implies that the bank's revenue was not sufficient to cover its expenses, contributing to the missed earnings expectations.
2. **Revenue and Expense Dynamics**: The bank's total loans decreased slightly to $711.7 million, reflecting a decrease in residential and construction loans, but this was partially offset by an increase in commercial and multi-family real estate loans. Deposits, however, increased to $642.1 million, particularly in NOW, money market, and savings accounts. Despite these positive trends in deposits, the bank's net interest income decreased by 29.5% due to a 62-basis point decrease in net interest rate spread. This reduction in net interest income likely contributed to the bank's inability to meet EPS expectations.
3. **Strategic Restructuring**: BSBK has been undergoing strategic balance sheet restructuring, which could have impacted its short-term financial performance. For instance, the bank reported a net loss for the year ended December 31, 2024, which was primarily due to a decrease in net interest income and a loss on the sale of securities. Such restructuring efforts can be disruptive to financial results in the immediate term but are often undertaken to improve long-term profitability and stability.

In summary, BSBK's Q4 2024 EPS missed expectations due to a combination of factors including a decrease in net interest income, strategic restructuring, and a net loss for the quarter.