Company: BCTF
Filing Date: 2025-03-06
Form Type: 10-K
Source: 0001552781-25-000058
Chunk: 150

Company: Bancorp 34, Inc.
Filing Date: 2025-03-06
Form: 10-K
Item: Item 1
Chunk 150
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 credit losses recorded through provision expense.

    96

As of the Merger date and as described
above, the PCD Loans included the following components (in thousands):

Schedule
of  Purchased Credit Deteriorated Loans

    Unpaid principal balance 
    $30,425 
  
    Allowance for credit losses at acquisition 
     (1,164)
  
    Non-credit discount 
     (3,098)
  
    Purchase price 
    $ 26,163 

Pro
Forma Information

The pro forma revenues and pro forma earnings
in the following table, for each of the periods presented, combine CBOA’s consolidated operating results and Bancorp 34’s
consolidated operating results as if the Merger occurred on January 1, 2023.

Pro forma amounts for the twelve months
ended December 31, 2024, primarily reflect the following pro forma adjustments: (i) CBOA’s net income of $200,000 for the first
two and a half months of 2024 (ii) interest and fee income decrease related to lower loan discount accretion income of $616,000 and related
taxes of $154,000; (iii) interest and fee income decrease due to the removal of CBOA’s pre-Merger deferred loan fee income of $175,000
and related taxes of $44,000; (iv) interest expense decrease related to deposit liability and long-term debt discount expense of $131,000
and related taxes of $33,000; (v) provision for credit losses decrease due to removal of the Merger-related non-recurring Day 2 Non-PCD
Loan charge of $4.1 million and related taxes of $1.0 million; and (vi) non-interest income decrease due to removal of a non-recurring
non-taxable $5.0 million preliminary bargain purchase gain. Additionally, there were non-interest expense pro forma adjustments, which
were primarily comprised of: (i) removal of Merger expenses for both CBOA and the Bank of $4.4 million and related taxes of $962,000;
(ii) removal of Merger-related non-recurring change-in-control charges of $654,000 and related taxes of $164,000; and, (iii) Core Deposit
Intangible amortization expense increase of $181,000 and related taxes of $45,000.

Pro forma amounts for the twelve months
ended