Company: BCTF
Filing Date: 2025-03-06
Form Type: 10-K
Source: 0001552781-25-000058
Chunk: 530

Company: Bancorp 34, Inc.
Filing Date: 2025-03-06
Form: 10-K
Item: Item 1B
Chunk 530
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190,051 

The fair value of unallocated shares held
by the ESOP is $1,399,000
and $1,379,000
at December 31, 2024, and 2023, respectively. ESOP expense was $161,000
and $67,000
for the years ended December 31, 2024, and 2023, respectively.

Deferred
Compensation and Director’s Fee Plans: A deferred compensation plan covers all senior
officers and a deferred director’s fee plan covers all directors. Under these plans, the company pays each participant that elects
to defer, or their beneficiary, the amount deferred plus interest over a pre-selected period up to 10 years, beginning with the participant’s
termination of service. A liability is accrued monthly for the deferred amount plus interest earned. The interest rate on deferred balances
is determined annually on January 1st at the greater of Wall Street Journal Prime or 5%; and was 8.5% and 7.5% for the years ended December
31, 2024, and 2023, respectively. Interest expense for the deferred plans was $171,000 and $147,000, for the years ended December 31,
2024, and 2023, respectively. Deferred plan liabilities, included in accrued interest and other liabilities on the consolidated balance
sheet, were $1,928,000 and $2,012,000 as of December 31, 2024, and 2023, respectively. The plan was frozen on January
4, 2024, and no new participants or contributions to the plan are permitted after that date.

109

NOTE 10 –
LEASES

As of December 31, 2024, the Bank has non-cancelable
operating leases for office space that expire over the next eight years that require the payment of base lease amounts and executory
costs such as taxes, maintenance, and insurance. As of December 31, 2024, the bank has six active operating leases. Rental expenses
included in non-interest expense as occupancy expenses for leases were $1,028,000
and $365,000
for the twelve months ended December 31, 2024, and 2023, respectively. The increase in rental
expense is attributed to the leases acquired in the CBOA Merger.

The following presents the classification
of the right-of-use assets and corresponding liabilities as of the