Company: BCTF
Filing Date: 2025-03-06
Form Type: 10-K
Source: 0001552781-25-000058
Chunk: 144

Company: Bancorp 34, Inc.
Filing Date: 2025-03-06
Form: 10-K
Item: Item 1
Chunk 144
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 on the significant
segment expense categories and the amounts disclosed in the prior periods should be based on the significant segment expense categories
identified and disclosed in the period of adoption. The Company adopted this accounting standard effective January 1, 2024, and the Company’s
financial condition, results of operations and cash flows were not impacted by this guidance. The Company has provided the required disclosures
for its single reportable segment.

Recent
Accounting Guidance That Has Not Yet Been Adopted – The following new accounting standard
has yet to be adopted by the Company but may have an impact on financial statements and/or related disclosures once implemented.

In December 2023, the FASB issued
a final standard on improvements to income tax disclosures. The standard requires, among other things, disaggregated information regarding
effective tax rate reconciliation components, as well as information on income taxes paid. This standard, ASU No. 2023-9, “Income
Taxes (Topic 740): Improvements to Income Tax Disclosures”, applies to all entities subject to income taxes. For public business
entities, the new requirements will be effective for annual periods beginning after December 15, 2024. The guidance will be applied on
a prospective basis with the option to apply the standard retrospectively. Early adoption is permitted.

NOTE 2 –
BUSINESS COMBINATION

On March 19, 2024, Bancorp 34 completed
its previously announced merger with CBOA pursuant to the Agreement and Plan of Merger, dated as of April 27, 2023, as amended (the “Merger
Agreement”). Under the Merger Agreement, CBOA was merged with and into Bancorp 34, with Bancorp 34 continuing as the surviving
entity (the “Merger”). Immediately following the completion of the Merger, CBOA’s wholly-owned subsidiary, Commerce
Bank of Arizona, an Arizona state-chartered bank, was merged with and into the Bank, with the Bank continuing as the surviving bank.

Pursuant to the terms of the Merger Agreement,
at the effective time of the Merger, each CBOA shareholder had the right to receive 0.2628 shares of Bancorp 34 common stock, for each
share of CBOA common stock owned by the CBOA shareholder, with cash to be paid in lieu of fractional shares. Additionally, each outstanding
CBOA restricted stock unit vested and was cancelled and converted automatically into the right