Company: BCTF
Filing Date: 2025-03-06
Form Type: 10-K
Source: 0001552781-25-000058
Chunk: 621

Company: Bancorp 34, Inc.
Filing Date: 2025-03-06
Form: 10-K
Item: Item 1C
Chunk 621
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2 million at December 31, 2023. The decrease reflects the sale of the
note for the prior OREO balance, partially offset by the increase in non-performing loans.

70

Potential problem loans
are loans which management has serious doubts as to the ability of the borrowers to comply with the present loan repayment terms. Management
has not identified any potential problem loans not included in the nonperforming assets table above. 

Allowance
for Credit Losses – Unfunded loan commitments 

The following table
presents the changes in the ACL on unfunded loan commitments for the year ended December 31, 2024:

    December 31, 2024 (in 000s) 
    Unfunded  Loan Commitments 
  
    Allowance for credit losses: 

    Beginning balance 
    $135 
  
    Impact of the CBOA merger 
     222 
  
    Provision for credit losses 
     237 
  
    Ending balance 
    $594 

Deposits

Deposits represent
our primary source of funds. We are focused on growing our core deposits through relationship-based banking with our business and consumer
clients. Total deposits were $792.6 million and $460.0 million as of December 31, 2024, and December 31, 2023, respectively. The primary
reason for this large increase in total deposits was the CBOA Merger. Unrelated to the CBOA Merger, there has been a migration to time
deposits which is consistent with the broader market trends in which customers have reduced non-interest- and interest-bearing demand
deposits in favor of term CDs given the higher rates paid on the term CDs and the ability to lock in a stated rate in the midst of the
market rate declines in the fourth quarter.

The following table
sets forth the average balance amounts and the average rates paid on deposits held by us for the periods presented:

    For the years ended 

    December 31, 2024  
    December 31, 2023 
  
    (Dollars in thousands) 
    Average Balance  
    Average Rate Paid  
    Average Balance  
    Average Rate Paid 
  
    Noninterest-bearing demand deposits 
    $187,757  
     —% 
    $89,165  
     —%
  
    Interest-bearing demand and NOW deposits 
     323,386  
     3