Company: BCTF
Filing Date: 2025-03-06
Form Type: 10-K
Source: 0001552781-25-000058
Chunk: 171

Company: Bancorp 34, Inc.
Filing Date: 2025-03-06
Form: 10-K
Item: Item 1
Chunk 171
---
 December 31, 2024:

Schedule of Credit Losses on Off-Balance Sheet Credit

    December 31, 2024 (in 000s) 
    Unfunded  Loan Commitments 
  
    Allowance for credit losses: 

    Beginning balance 
    $135 
  
    Impact of the CBOA merger 
     222 
  
    Provision for credit losses 
     237 
  
    Ending balance 
    $594 

Note
9 – Employee Retirement Benefit Plans 

Profit
Sharing Plan: The Company has established a profit-sharing 401(k) type salary reduction plan
(Plan) for all employees that meet the necessary eligibility requirements and participants are fully vested after six years of service.
For Company matching contributions made for plan years prior to 2014, annual Company contributions were at the discretion of the Board
of Directors. From 2014 through 2019, the Company adopted a Safe Harbor matching contribution provision, whereby it agreed to match 100%
of participant’s contributions up to the first 3% of salary and 50% of the next 2%, for a total maximum Company matching contribution
of 4% of participant salary, as defined by the Plan. The Safe Harbor matching contribution was guaranteed. The Company elected not to
adopt a safe harbor matching contribution for 2024 or 2023.

Employee
Stock Ownership Plan: The ESOP covers substantially all employees that meet certain age and service
requirements. Under the plan, annual retirement expense is generally defined as a percentage of employee compensation, net of forfeitures
from employees who have terminated employment.

In October 2016, the ESOP borrowed $1.5
million from the Company to purchase 150,358 shares of common stock from the Company at $10 per share. Bancorp 34 accepted a $1.8 million
note from the ESOP secured by all unallocated shares in the plan with a 30-year repayment term. The principal balance includes $1.5 million
used to purchase stock in 2016 and $266,000 used to pay off already outstanding ESOP loans used to purchase shares in 2012 and 2014.
Principal and interest payments on the note are made every December 31 and the interest rate on the loan adjusts annually on January
1st to the prime rate of interest as published in the Wall Street Journal. The Bank makes at least annual discretionary contributions
to the ESOP and the ESOP uses all funds it receives to repay