Company: BCTF
Filing Date: 2025-03-06
Form Type: 10-K
Source: 0001552781-25-000058
Chunk: 998

Company: Bancorp 34, Inc.
Filing Date: 2025-03-06
Form: 10-K
Item: Item 3
Chunk 998
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 106 
  
    Totals 
    $(1,074) 
    $(453)

Deferred tax assets and liabilities consist
of the following at December 31 (dollars in thousands):

Schedule of Deferred Tax
Assets and Liabilities 

    2024  
    2023 
  
    Deferred tax assets: 

    Allowance for credit losses 
    $1,827  
    $1,458 
  
    Net operating loss carryforwards and certain state tax credits 
     3,439  
     1,042 
  
    Deferred compensation 
     528  
     557 
  
    Accrued bonus 
     —  
     9 
  
    Lease liability 
     1,146  
     500 
  
    Unrealized losses on AFS securities 
     1,928  
     1,840 
  
    Loan acquisition adjustment 
     3,465  
     — 
  
    Depreciation 
     39  
     — 
  
    Other, net 
     62  
     283 
  
    Total deferred tax assets 
     12,434  
     5,689 

    Deferred tax liabilities: 

    Loan origination costs 
     (138) 
     (165)
  
    Depreciation 
     —  
     (152)
  
    Operating lease liabilities 
     (1,009) 
     (453)
  
    FHLB stock dividends 
     (41) 
     (35)
  
    Core deposit intangible 
     (1,894) 
     — 
  
    Derivative mark to market 
     (89) 
     — 
  
    Other items 
     (236) 
     — 
  
    Total deferred tax liabilities 
     (3,407) 
     (805)
  
    Net deferred tax assets 
    $9,027  
    $4,884 

A valuation allowance for deferred tax assets
is recorded when it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization
of deferred tax assets is dependent upon the generation of future taxable income and tax planning strategies which will create taxable
income during the periods in which those temporary differences become deductible. Management considered the scheduled reversal of deferred
tax liabilities, projected future taxable income, net operating