Company: BCTF
Filing Date: 2025-03-06
Form Type: 10-K
Source: 0001552781-25-000058
Chunk: 535

Company: Bancorp 34, Inc.
Filing Date: 2025-03-06
Form: 10-K
Item: Item 1B
Chunk 535
---
— 

The table below presents the effect of fair
value hedge accounting on the consolidated statements of income (loss) for the periods presented:

Schedule of Effect of Fair
Value Hedge Accounting

    Location and Amount of 
Gain or (Loss) Recognized 
in Income on Fair Value 
Hedging Relationships  
    Location and Amount of 
Gain or (Loss) Recognized 
in Income on Fair Value 
Hedging Relationships 

    Year ended December 31, 
2024  
    Year Ended December 31, 
2023 
  
    (in thousands) 
    Interest on
 securities  
    Interest 
Expense  
    Interest on 
securities  
    Interest 
Expense 

    Total amounts of income and expense line items presented in consolidated statements of income (loss) in which effects of the fair value hedges are recorded 
    $2,164  
    $0  
    $0  
    $0 
  
    Gain or (loss) on fair value hedging relationships: 

    Interest rate swap contracts: 

    Hedged items 
    $(356)  
    $0  
    $0  
    $0 
  
    Derivatives designated as hedging instruments 
    $357  
    $0  
    $0  
    $0 
  
    Amount excluded from effectiveness testing recognized in earnings based on amortization approach 
    $0  
    $0  
    $0  
    $0 

    112

The table below presents cumulative basis
adjustments of hedged items designated as fair value hedges and related amortized cost of those items as of the date presented:

Schedule of Cumulative
Basis Adjustment of Hedged Items

    (in thousands) 
    As of December 31, 2024 
  
    Line Item in consolidated balance sheet in which hedged item is included 
    Amortized cost 
of Hedged Assets  
    Cumulative 
amount of Fair 
Value Hedging 
Adjustments
 included in 
carrying amount 
of Hedged Asset 

    Securities available for sale 
    $51,168  
    $(356) 

Note
13 – Regulatory Matters 

Southwest Heritage Bank is subject to various
regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate
certain mandatory and discretionary actions by regulators that if undertaken, could have a direct material effect on the