Company: BCTF
Filing Date: 2025-03-06
Form Type: 10-K
Source: 0001552781-25-000058
Chunk: 307

Company: Bancorp 34, Inc.
Filing Date: 2025-03-06
Form: 10-K
Item: Item 1A
Chunk 307
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 during 2024.

    Maximum  

    Ending  
    Period  
    Month End  
    Period Average 
  
    (Dollars in thousands) 
    Balance  
    End Rate  
    Balance  
    Balance  
    Rate 
  
    Federal Home Loan Bank Advances 
    $0  
     0.00% 
     0  
    $0  
     0.00%
  
    FRB BTFP Advances 
     0  
     0.00% 
     49,000  
     23,355  
     5.06%
  
    Other Debt, net 
     27,352  
     4.44% 
     29,145  
     27,146  
     4.52%
  
    Total 
    $54,319  
     4.44% 
    $78,145  
    $50,501  
     4.77%

Other
Debt

In addition to our
FRB advances, we also had subordinated debt amounting to $23.1 million at December 31, 2024, and trust preferred securities assumed in
connection with the CBOA Merger totaling $5.2 million. See Note 7—Borrowings in our consolidated financial statements included
elsewhere in this Annual Report on Form 10-K. 

Capital
Raises 

During December 2022
and January 2023, Bancorp 34 completed two private placements of common and preferred stock. Bancorp 34 issued a total of 1,359,497 shares
of common stock and 820,115 shares of convertible, non-voting Series A perpetual preferred Stock at $14.00 per share each, generating
net cash proceeds of approximately $28.6 million. The Company used the net proceeds from these private placements to support the CBOA
Merger and to enhance capital ratios.

In conjunction with
the private placements, Bancorp 34 issued warrants to purchase up to 211,667 shares of common stock at a price of $14.00. The approximate
fair value of the warrants at the date of grant was not considered significant. The warrants are exercisable at any time after their
grant date, and from time to time, in whole or in part, for seven years from their grant dates, between December 2029 and January 2030.
The