Bogota Financial Completes Sale-Leaseback Transaction with MountainSeed Real Estate Services, LLC

Bogota Financial Corp. (NASDAQ: BSBK) recently announced that its wholly-owned subsidiary, Bogota Savings Bank, has finalized a significant transaction with MountainSeed Real Estate Services, LLC. On November 15, 2024, the Bank entered into an agreement for the purchase and sale of real property, involving the sale of three branch offices to MountainSeed for an aggregate cash purchase price of around $12.5 million.

As part of this Sale Agreement, Bogota Savings Bank simultaneously signed lease agreements with the Purchaser, outlining that the Bank will lease back each of the Properties. The initial term for each Lease Agreement is set at 15 years with specific renewal options, and there will be no closures of branches or market exits as a result of this sale-leaseback transaction.

This transaction led to a pre-tax gain of approximately $9.0 million, while the aggregate first-year rent expense is estimated to be around $1.0 million. The details of the Sale Agreement have been filed with the Securities and Exchange Commission as Exhibit 10.1 in the Current Report on Form 8-K.

Forward-Looking Statements enclosed in the Current Report highlight the anticipated future impact of these transactions on Bogota Financial Corp. and Bogota Savings Bank. Forward-looking statements underscore the Company’s outlook with words like “believe,” “expect,” and “estimate,” but also note potential risks and uncertainties that could impact actual results.

Additionally, on January 6, 2025, Bogota Financial Corp. released a press statement detailing the Bank’s balance sheet restructuring activities, including the sale-leaseback agreement. This transaction was described as a strategic move to offload underperforming legacy investments, ushering in a $9.0 million pre-tax gain, and enabling financial repositioning by reinvesting in higher-yielding securities and loans to enhance net interest margin and return on assets.

Kevin Pace, the President and Chief Executive Officer of Bogota Financial Corp., expressed confidence in these actions, emphasizing their significance in fortifying the bank’s balance sheet for both immediate benefits and long-term growth potential.

Bogota Financial Corp., a Maryland corporation and the holding company of Bogota Savings Bank, remains focused on strengthening its financial position to drive future growth and create shareholder value. Bogota Savings Bank has been serving customers in New Jersey for over a century and continues to expand its presence strategically, guided by a commitment to financial prudence and operational excellence.

The Company has stated its commitment to transparency and periodically reviewing forward-looking statements to align with the evolving financial landscape and operating environment.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Bogota Financial’s 8K filing here.

Bogota Financial Company Profile

Bogota Financial Corp. operates as the bank holding company for Bogota Savings Bank that provides banking products and services in the United States. It offers deposit accounts, including demand accounts, savings accounts, money market accounts, and certificate of deposit accounts. The company also provides one-to four-family residential real estate loans, and commercial real estate and multi-family loans; consumer loans, such as home equity loans and lines of credit; commercial and industrial loans; and construction loans; and buys, sells, and holds investment securities.