Company: BCTF
Filing Date: 2025-03-06
Form Type: 10-K
Source: 0001552781-25-000058
Chunk: 472

Company: Bancorp 34, Inc.
Filing Date: 2025-03-06
Form: 10-K
Item: Item 1B
Chunk 472
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 us
upon extension of credit, is based on management’s credit evaluation of the counterparty. Collateral is primarily obtained in the
form of commercial and residential real estate, including income producing commercial properties.

Commitments to make
loans are generally made for periods of 90 days or less.

Our exposure to credit
loss in the event of non-performance by the other party to the financial instrument for commitments to extend credit and standby letters
of credit is represented by the contractual or notional amount of those instruments. We use the same credit policies in making commitments
and conditional obligations as for funded instruments. We do not anticipate any material losses as a result of the commitments and standby
letters of credit.

The following table
summarizes commitments as of the dates presented (In thousands):

    December 31,  
    December 31, 

    2024  
    2023 

    Fixed  
    Variable  
    Fixed  
    Variable 
  
    Commitments to extend credit 
    $6,589  
    $27,627  
    $5,327  
    $6,966 
  
    Unused lines of credit 
     3,238  
     37,662  
     3,962  
     18,859 
  
    Totals 
    $9,828  
    $65,289  
    $9,289  
    $25,825 

Contractual
Obligations

We have entered into
contractual obligations in the normal course of business that involve elements of credit risk, interest rate risk, and liquidity risk.

The following table
summarizes our contractual obligations as of December 31, 2024, and December 31, 2023:

    Less than  
    1-3  
    3-5  
    More than 
  
    December 31, 2024 (In thousands) 
    Total  
    1 Year  
    Years  
    Years  
    5 Years 
  
    Long-term debt: 

    Subordinated debt 
     23,500  
     —  
     —  
     —  
     23,500 
  
    Trust preferred securities 
     5,000  
     —  
     —  
     —  
     5,000 
  
    Total long-term debt