Company: BCTF
Filing Date: 2025-03-06
Form Type: 10-K
Source: 0001552781-25-000058
Chunk: 820

Company: Bancorp 34, Inc.
Filing Date: 2025-03-06
Form: 10-K
Item: Item 2
Chunk 820
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its 
     346,743  
     —  
     346,743 
  
    Short-term borrowings 
     35,000  
     —  
     35,000 
  
    Long-term borrowings 
     4,143  
     —  
     4,143 
  
    Deferred taxes on liabilities assumed 
     253  
     —  
     253 
  
    Other liabilities 
     4,741  
     —  
     4,741 
  
    Total identifiable liabilities assumed 
    $390,880  
    $—  
    $390,880 

    Net identifiable assets acquired 
    $28,446  
    $(118) 
    $28,328 

    Preliminary bargain purchase gain 
    $(5,136) 
    $118  
    $(5,018)

Purchased
Performing Loans (Non-Purchased Credit Deteriorated Loans)

Non-purchased credit deteriorated loans
(“non-PCD loans”) are loans, as of the date of the Merger and based upon management’s assessment, which have
not experienced a more-than-insignificant deterioration in credit quality since the date the loans were originated. The loan’s
purchase price becomes its initial amortized cost basis. The difference between the initial amortized cost basis and the unpaid principal
balance of the loan is a discount, which is comprised of a credit and non-credit component, and is accreted as interest income over the
life of the loan.

An allowance for credit losses is determined
using the same methodology as other loans held for investment. A $4.1 million “Day Two” allowance for credit losses for non-PCD
loans was recorded through the provision for credit losses. This $4.1 million allowance for credit losses for non-PCD loans represents
management’s estimate of lifetime credit losses on these non-PCD loans.

Purchased
Credit Deteriorated Loans

Purchased credit deteriorated loans
(“PCD loans”) represent loans, as of the date of the Merger and based upon management’s assessment, which had experienced
a more-than-insignificant deterioration in credit quality since the date the loans were originated. An allowance for credit losses for
PCD loans was determined using the same methodology as other loans held for investment. The initial allowance for credit losses for PCD
loans was determined