Company: BCTF
Filing Date: 2025-03-06
Form Type: 10-K
Source: 0001552781-25-000058
Chunk: 197

Company: Bancorp 34, Inc.
Filing Date: 2025-03-06
Form: 10-K
Item: Item 1
Chunk 197
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,176 

    Net change in cash and cash equivalents 
     (14,769) 
     1,349 
  
    Beginning cash and cash equivalents 
     19,184  
     17,835 

    Ending cash and cash equivalents 
    $4,415  
    $19,184 

Note
21 – Real Estate Owned

Real estate owned activity was as follows
(dollars in thousands):

Schedule of Other Real Estate Owned

    Year Ended December 31, 2024  
    Year Ended December 31, 2023 
  
    Beginning balance 
    $3,000  
    $— 
  
    Foreclosures and additions 
     —  
     3,000 
  
    Loss on sale 
     (432) 
     — 
  
    Sales 
     (2,568) 
     — 

    Ending balance 
    $—  
    $3,000 

As of September 30, 2023, the Bank experienced
a deterioration of one large out of market commercial real estate loan which resulted in this loan becoming nonperforming. As of December
31, 2023, a $3.3 million loss was reflected in the Bank’s operating results, and the remaining $3 million balance was transferred
to other real estate owned. During the year ended December 31, 2024, the note associated with this loan was sold for $2.6 million and
a $0.4 million pre-tax loss was reflected in the Bank’s operating results.

At both December 31, 2024, and 2023, the
balance of real estate owned includes no foreclosed residential real estate properties recorded as a result of obtaining physical possession
of the property. At December 31, 2024, and 2023, the recorded investment of consumer mortgage loans secured by residential real estate
properties for which formal foreclosure proceedings are in process is $0 and $0, respectively. 

123

Item
9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosures

Not applicable.

Item
9A. Controls and Procedures

Evaluation
of Disclosure Controls and Procedures

Based on our management’s evaluation
(with the participation of our principal executive officer and principal financial officer), as of the end of the period covered by this
annual report, our principal executive officer and principal financial officer have concluded that our disclosure controls and procedures