Company: BCTF
Filing Date: 2025-03-06
Form Type: 10-K
Source: 0001552781-25-000058
Chunk: 343

Company: Bancorp 34, Inc.
Filing Date: 2025-03-06
Form: 10-K
Item: Item 1A
Chunk 343
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s recognized in earnings are recorded as a component of other comprehensive income.

The Company discontinues hedge accounting
when it is determined that the derivative is no longer effective in offsetting changes in fair values or cash flows of the hedged item,
the derivative is settled or terminates, a hedged forecasted transaction is no longer probable, a hedged firm commitment is no longer
firm, or the treatment of the derivative as a hedge is no longer appropriate or intended. When hedge accounting is discontinued, subsequent
changes in fair value of the derivative are recorded as noninterest income. When a fair value hedge is discontinued, the hedged asset
or liability is no longer adjusted for changes in fair value and the existing basis adjustment is amortized or accreted over the remaining
life of the asset or liability. When a cash flow hedge is discontinued but the hedged cash flows or forecasted transactions are still
expected to occur, gains or losses that were accumulated in other comprehensive income are amortized into earnings over the same periods
in which the hedged transactions will affect earnings.

The Company is exposed to losses if a counterparty
fails to make its payments under a contract in which the Company is in the net receiving position. We anticipate that the counterparties
will be able to fully satisfy their obligation under our derivative contracts with them. All the contracts to which we are a party have
cash flows that settle monthly.

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Recent
Accounting Guidance That Has Been Adopted – In November 2023, the Financial Accounting
Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-07, Segment Reporting (Topic 280),
Improvements to Reportable Segment Disclosures. The amendments in ASU 2023-07 provide for new disclosures which: (1) require that a public
entity disclose on an annual and interim basis, significant segment expenses that are regularly provided to the chief operating decision
maker (“CODM”) and included within each reported measure of segment profit or loss; (2) require that a public entity disclose,
on an annual and interim basis, an amount for other segment items by reportable segment and a description of its composition; (3) require
that a public entity provide all annual disclosures about a reportable segment’s profit or loss and assets currently required by
Topic 280 in interim periods; (4) allows more than one measure of segment profit or loss used by the CODM when assessing segment performance
and deciding how to allocate resources to be disclosed