Company: BCTF
Filing Date: 2025-03-06
Form Type: 10-K
Source: 0001552781-25-000058
Chunk: 605

Company: Bancorp 34, Inc.
Filing Date: 2025-03-06
Form: 10-K
Item: Item 1C
Chunk 605
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, including overall loan demand, economic conditions, credit risk, the amount
of non-earning assets including nonperforming loans and OREO, the amounts of and rates at which assets and liabilities reprice, variances
in prepayment of loans and securities, exercise of call options on borrowings or securities, a general rise or decline in interest rates,
changes in the slope of the yield-curve, the relative mix of the various elements of interest earning assets and interest bearing liabilities
and balance sheet growth or contraction.

62

Years
Ended December 31, 2024, and 2023

Our net interest income
was $29.3 million for 2024, an increase of $14.1 million, or 93%, compared to the $15.2 of net interest income in 2023. This reflects
the positive impacts from the March 19, 2024, CBOA Merger, including $3.7 million of accretion income on the CBOA loan fair value mark.
The 100bp decrease in the Federal Funds rate by the Federal Reserve had a negative impact on net interest income as yields on
immediately re-priceable cash and floating rate loans moved down more quickly than funding costs during the quarter.

Reflecting the positive
impact of the CBOA Merger, average earning assets were $804.8 million and $550.7 million during 2024 and 2023, respectively. Average
earning asset yields in 2024 and 2023 were 6.33% and 5.11%, respectively. Average loan yield in 2024 was 127 basis points higher than
2023, most notably due to the accretion of the CBOA loan fair value mark and the continued upward repricing trend of the legacy loan
portfolio. Interest income from investment securities in 2024 was slightly higher than 2023 as average yield and balances increased due
to purchases made in 2024. Average other interest earning assets, which primarily consists of interest earning cash and equivalents,
increased by $64.0 million primarily due to the liquidation of the CBOA investment portfolio immediately after the CBOA Merger and the
decline in loan balances after the CBOA Merger due to portfolio restructuring. The increase in average other interest earning assets
led to a $3.9 million improvement in interest income year-over-year.

Average interest-bearing
liabilities in 2024 of $576.0