Company: BCTF
Filing Date: 2025-03-06
Form Type: 10-K
Source: 0001552781-25-000058
Chunk: 939

Company: Bancorp 34, Inc.
Filing Date: 2025-03-06
Form: 10-K
Item: Item 3
Chunk 939
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.57% 
    $30,086  
     6% 
    $40,114  
     8%
  
    Common Tier 1 Capital to risk  weighted assets (CET1): 
    $68,032  
     13.57% 
    $22,564  
     4.50% 
    $32,593  
     6.50%
  
    Tier 1 (Core) Capital to average assets: 
    $68,032  
     11.66% 
    $23,347  
     4% 
    $29,184  
     5%

74

We are a party to financial
instruments with off-balance sheet risk in the normal course of business to meet the financing needs of our customers. These financial
instruments include commitments to extend credit and unused lines of credit. Those instruments involve, to varying degrees, elements
of credit and interest rate risk in excess of the amount recognized in the consolidated statements of financial condition. The contractual
or notional amounts of those instruments reflect the extent of involvement we have in particular classes of financial instruments.

Commitments to extend
credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments
generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are
expected to expire without being drawn upon, the total commitment amount does not necessarily represent future cash requirements. We
evaluate each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by us
upon extension of credit, is based on management’s credit evaluation of the counterparty. Collateral is primarily obtained in the
form of commercial and residential real estate, including income producing commercial properties.

Commitments to make
loans are generally made for periods of 90 days or less.

Our exposure to credit
loss in the event of non-performance by the other party to the financial instrument for commitments to extend credit and standby letters
of credit is represented by the contractual or notional amount of those instruments. We use the same credit policies in making commitments
and conditional obligations as for funded instruments. We do not anticipate any material losses as a result of the commitments and standby
letters of credit.

The following table
summarizes commitments as of the dates presented (In thousands):

    December 31,  
    December 31,