Company: BCTF
Filing Date: 2025-03-06
Form Type: 10-K
Source: 0001552781-25-000058
Chunk: 454

Company: Bancorp 34, Inc.
Filing Date: 2025-03-06
Form: 10-K
Item: Item 1B
Chunk 454
---
 2023 
  
    Return on average total assets (ROAA) 
     0.20% 
     -0.59%
  
    Return on average stockholders’ equity (ROAE) 
     2.09% 
     -5.48%
  
    Dividend payout ratio 
     0.00% 
     -15.91%
  
    Average stockholders’ equity to average assets 
     9.44% 
     10.72%

Income
Taxes

We had an income tax
benefit for the year ended 2024 of $1.1 million compared to an income tax benefit of $0.5 million for the year ended 2023. The 2024 income
tax benefit was due to the non-taxable $5.0 bargain purchase gain which caused the book pre-tax income to be reflected as a loss
for tax purposes. Our effective tax rate was (174.8%) for the year ended 2024, compared to 11.75% for the year ended 2023. The
effective tax rate for the year ended 2024 included the favorable impact of the $5.0 million bargain purchase gain and state tax credits.

Further information
on our annual income taxes is presented in Note 11 – Income Taxes in our audited consolidated financial statements included elsewhere
in this Annual Report on Form 10-K.

66

FINANCIAL
CONDITION

Balance
Sheet

Our total assets were
$918.1 million at December 31, 2024, and $581.3 million at December 31, 2023. Our total loans held for investment were $676.1 million
at December 31, 2024, and $457.0 million at December 31, 2023. The increase in our total assets and total loans, respectively, largely
reflects total assets, as adjusted for estimated fair values of $419.3 million, and total loans, as adjusted for estimated fair values,
of $310.9 million, which were acquired in connection with the CBOA Merger. For further information regarding the CBOA Merger, see Note
2 in our consolidated financial statements included in this Annual Report on Form 10-K.

Investment
Securities

Our securities portfolio
is used to make various term investments, maintain a source of liquidity and serve as collateral for certain types of borrowings. We
manage our investment portfolio according to written investment policies