Company: BCTF
Filing Date: 2025-03-06
Form Type: 10-K
Source: 0001552781-25-000058
Chunk: 355

Company: Bancorp 34, Inc.
Filing Date: 2025-03-06
Form: 10-K
Item: Item 1A
Chunk 355
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—  
     2,792  
     (277) 
     2,792  
     (277)
  
    U.S. government agencies 
     —  
     —  
     270  
     (17) 
     270  
     (17)
  
    Municipal obligations 
     —  
     —  
     20,328  
     (2,593) 
     20,328  
     (2,593)
  
    Corporate debt 
     —  
     —  
     833  
     (167) 
     833  
     (167)

    Total temporarily impaired 
    $—  
    $—  
    $54,685  
    $(7,416) 
    $54,685  
    $(7,416)

    Held
    to Maturity December 31, 2023

    Corporate
    debt
     
    $
    904

    $
    (96
    )
     
    $
    4,203

    $
    (596
    )
     
    $
    5,107

    $
    (692
    )
  
    Total
    temporarily impaired
     
    $
    904

    $
    (96
    )
     
    $
    4,203

    $
    (596
    )
     
    $
    5,107

    $
    (692
    )

Unrealized losses on U.S. Treasury bonds
and U.S. Agency bonds have not been recognized through the income statement due to the bonds being backed in full by the United States
government. Management has no intent to sell the securities, the Company can hold the securities to maturity, and the decline in fair
value is largely due to changes in market interest rates. The fair value is expected to recover as the securities approach their maturity
date.

Unrealized losses on mortgage-backed securities
have not been recognized into income. At December 31, 2024, 85% of the mortgage-backed securities portfolio were issued by U.S. government
sponsored entities or agencies. Because the decline in fair value is attributable to changes in interest rates, and not credit quality,
and because the Company does not intend to sell the mortgage-backed securities, no unrealized losses have been recognized into income.

The remainder of the mortgage-backed securities