Company: BCTF
Filing Date: 2025-03-06
Form Type: 10-K
Source: 0001552781-25-000058
Chunk: 928

Company: Bancorp 34, Inc.
Filing Date: 2025-03-06
Form: 10-K
Item: Item 3
Chunk 928
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 the dates indicated:

    December 31, 2024  
    December 31, 2023 
  
    (Dollars in thousands) 
    Allowance Amount  
    % of Portfolio  
    Allowance Amount  
    % of Portfolio 
  
    1-4 Family residential real estate 
    $859  
     1.24% 
    $736  
     1.19%
  
    Commercial 
     2,753  
     2.50% 
     924  
     1.84%
  
    Consumer and other 
     3  
     1.15% 
     8  
     1.15%
  
    Construction 
     370  
     1.41% 
     512  
     1.48%
  
    NOO CRE 
     3,604  
     1.39% 
     1,859  
     1.10%
  
    OO CRE 
     1,918  
     1.27% 
     1,201  
     1.46%
  
    Multifamily 
     653  
     1.08% 
     620  
     1.02%
  
    Total 
    $10,160  
     1.50% 
    $5,860  
     1.28%

The ACL increased
by $4.3 million during the year ended December 31, 2024, primarily reflecting impacts from the March 19, 2024, CBOA Merger as more fully
discussed above. For further information regarding the CBOA Merger, also see Note 2 in our consolidated financial statements included
in this Annual Report on Form 10-K.

69

Nonperforming
Assets

We have established
policies and procedures to guide us in originating, monitoring and maintaining the credit quality of our loan portfolio. These policies
and procedures are required to be followed by our bankers and underwriters and exceptions to these policies require elevated levels of
approval and are reported to our board of directors.

Nonperforming assets
include all loans categorized as nonaccrual, other real estate owned and other repossessed assets. The accrual of interest on loans is
discontinued, or the loan is placed on nonaccrual, when the full collection of principal and interest is in doubt. We