Company: BCTF
Filing Date: 2025-03-06
Form Type: 10-K
Source: 0001552781-25-000058
Chunk: 612

Company: Bancorp 34, Inc.
Filing Date: 2025-03-06
Form: 10-K
Item: Item 1C
Chunk 612
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 assets (ROAA) 
     0.20% 
     -0.59%
  
    Return on average stockholders’ equity (ROAE) 
     2.09% 
     -5.48%
  
    Dividend payout ratio 
     0.00% 
     -15.91%
  
    Average stockholders’ equity to average assets 
     9.44% 
     10.72%

Income
Taxes

We had an income tax
benefit for the year ended 2024 of $1.1 million compared to an income tax benefit of $0.5 million for the year ended 2023. The 2024 income
tax benefit was due to the non-taxable $5.0 bargain purchase gain which caused the book pre-tax income to be reflected as a loss
for tax purposes. Our effective tax rate was (174.8%) for the year ended 2024, compared to 11.75% for the year ended 2023. The
effective tax rate for the year ended 2024 included the favorable impact of the $5.0 million bargain purchase gain and state tax credits.

Further information
on our annual income taxes is presented in Note 11 – Income Taxes in our audited consolidated financial statements included elsewhere
in this Annual Report on Form 10-K.

66

FINANCIAL
CONDITION

Balance
Sheet

Our total assets were
$918.1 million at December 31, 2024, and $581.3 million at December 31, 2023. Our total loans held for investment were $676.1 million
at December 31, 2024, and $457.0 million at December 31, 2023. The increase in our total assets and total loans, respectively, largely
reflects total assets, as adjusted for estimated fair values of $419.3 million, and total loans, as adjusted for estimated fair values,
of $310.9 million, which were acquired in connection with the CBOA Merger. For further information regarding the CBOA Merger, see Note
2 in our consolidated financial statements included in this Annual Report on Form 10-K.

Investment
Securities

Our securities portfolio
is used to make various term investments, maintain a source of liquidity and serve as collateral for certain types of borrowings. We
manage our investment portfolio according to written investment policies approved by our board of directors. Investment in our