Company: BCTF
Filing Date: 2025-03-06
Form Type: 10-K
Source: 0001552781-25-000058
Chunk: 956

Company: Bancorp 34, Inc.
Filing Date: 2025-03-06
Form: 10-K
Item: Item 3
Chunk 956
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 reclassifications have been made to prior period’s financial information to conform to the current period presentation.
Reclassifications had no effect on Equity or Net Income. 

Use
of estimates – The preparation of financial statements in conformity with GAAP requires
management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent
assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting
period. Actual results could differ from those estimates.

Significant estimates include, but
are not limited to, allowance for credit losses of collectively evaluated loans and the fair value marks used in accounting for
the acquisition of CBOA (including estimate of consideration paid, fair value estimates of CBOA’s loans, deposits, long-term debt,
and a Core Deposit Intangible asset as a result of the Merger). The Company holds collateral dependent loans that are individually
evaluated for the allowance for credit losses and are categorized as level three instruments and are valued on a non-recurring
basis using unobservable inputs further described in Note 16.

Subsequent
events – Subsequent events have been evaluated through the date the consolidated financial
statements were issued.

Cash
and cash equivalents – Cash and cash equivalents include cash, due from banks, and federal
funds sold. Generally, the Company considers all highly liquid instruments with original maturities of three months or less to be cash
equivalents. In monitoring credit risk associated with deposits in other banks, the Bank periodically evaluates the stability of the
correspondent financial institutions. Banks may be required to maintain reserve funds in cash or on deposit with the Federal Reserve
Bank. No reserves were required at December 31, 2024, and December 31, 2023.

Securities
– If management has the intent and the Company has the ability at the time of purchase
to hold securities until maturity, they are classified as held-to-maturity and carried at amortized historical cost less the allowance
for credit losses. Securities to be held for an undeterminable period of time and not intended to be held until maturity are classified
as available-for-sale and carried at fair value, with unrealized gains and losses reported in other comprehensive income or loss, net
of tax. Securities classified as available-for-sale include securities that management intends to use as part of its asset/liability
management strategy and that may be sold in response to changes in interest rates, prepayment risk, and other factors. Management determines