Company: BCTF
Filing Date: 2025-03-06
Form Type: 10-K
Source: 0001552781-25-000058
Chunk: 980

Company: Bancorp 34, Inc.
Filing Date: 2025-03-06
Form: 10-K
Item: Item 3
Chunk 980
---
 20,328  
     (2,593) 
     20,328  
     (2,593)
  
    Corporate debt 
     —  
     —  
     833  
     (167) 
     833  
     (167)

    Total temporarily impaired 
    $—  
    $—  
    $54,685  
    $(7,416) 
    $54,685  
    $(7,416)

    Held
    to Maturity December 31, 2023

    Corporate
    debt
     
    $
    904

    $
    (96
    )
     
    $
    4,203

    $
    (596
    )
     
    $
    5,107

    $
    (692
    )
  
    Total
    temporarily impaired
     
    $
    904

    $
    (96
    )
     
    $
    4,203

    $
    (596
    )
     
    $
    5,107

    $
    (692
    )

Unrealized losses on U.S. Treasury bonds
and U.S. Agency bonds have not been recognized through the income statement due to the bonds being backed in full by the United States
government. Management has no intent to sell the securities, the Company can hold the securities to maturity, and the decline in fair
value is largely due to changes in market interest rates. The fair value is expected to recover as the securities approach their maturity
date.

Unrealized losses on mortgage-backed securities
have not been recognized into income. At December 31, 2024, 85% of the mortgage-backed securities portfolio were issued by U.S. government
sponsored entities or agencies. Because the decline in fair value is attributable to changes in interest rates, and not credit quality,
and because the Company does not intend to sell the mortgage-backed securities, no unrealized losses have been recognized into income.

The remainder of the mortgage-backed securities
portfolio includes non-agency structured commercial mortgage-backed securities (CMBS) with a fair value of $6.9 million which had unrealized
losses of $0.5 million at December 31, 2024. Each CMBS was rated AAA at December 31, 2024. These bonds have significant credit enhancement
and have performed as agreed. Management does not intend to sell the CMBS