Company: BCTF
Filing Date: 2025-03-06
Form Type: 10-K
Source: 0001552781-25-000058
Chunk: 637

Company: Bancorp 34, Inc.
Filing Date: 2025-03-06
Form: 10-K
Item: Item 1C
Chunk 637
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 management in the selection and application of certain subjective assumptions. Accordingly, performing audit
procedures to evaluate the Company’s estimates of the fair value of consideration paid and acquired loans involved a high degree
of auditor judgment and required significant effort, including the involvement of professionals with specialized skill and knowledge.

79

To
the Shareholders and Board of Directors

Bancorp
34, Inc.

How
the Critical Audit Matter Was Addressed in the Audit

Our
audit procedures related to the Company’s valuation of consideration paid and its valuation of the acquired loan portfolio included,
but was not limited to, the following:

    ●
    We
    obtained an understanding of management’s process for development
of the estimates and evaluated the design of controls, including management’s review of the calculations performed by third parties.

    ●
    We
    involved our firm’s valuation specialists to assist us:

    o
    Develop
    an independent range of reasonable outcomes by developing a model to
estimate the valuation of consideration paid and acquired loans, which involved independently obtaining significant inputs from external
sources.

    o
    Select
    methodologies based on the relevance and reliability of information
to develop a reasonable range for the estimates.

    o
    Where
    applicable, evaluate the reliability of data provided by third parties
used in the development of our estimated ranges.

    ●
    We
    tested the accuracy and completeness of relevant data provided by management
and used in the development of our estimated ranges.

    ●
    We
    assessed the adequacy of the disclosures related to the business combination,
especially the disclosures associated with the consideration paid and valuation of acquired loans.

/s/
Plante & Moran, PLLC

We
have served as the Company’s auditors since 2023.

Denver,
Colorado

March
6, 2025

80

Consolidated
Balance Sheets

(Dollars
in Thousands, except share data)

December
31, 2024, and December 31, 2023

    December 31, 2024  
    December 31, 2023 
  
    ASSETS 

    Cash and due from banks 
    $111,510  
    $27,182 
  
    Federal funds sold 
     2,085  
     1,715 
  
    Total cash and cash equivalents 
     113,595  
     28,897 

    Available-for-sale securities, at fair value 
     78,661