Company: BCTF
Filing Date: 2025-03-06
Form Type: 10-K
Source: 0001552781-25-000058
Chunk: 341

Company: Bancorp 34, Inc.
Filing Date: 2025-03-06
Form: 10-K
Item: Item 1A
Chunk 341
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 under the Coronavirus Aid, Relief, and Economic Security
Act, as amended by Taxpayer Certainty and Disaster Tax Relief Act of 2020, the American Rescue Plan Act of 2021, and the Infrastructure
Investment and Jobs Act. A portion of the credits the Company received, $254,000, met the substantial authority to file a claim with
the IRS. However, based on uncertainty associated with the IRS’s regulation and notices associated with qualifying under the governmental
order eligibility criteria, the Company has concluded the claim does not meet the probable threshold required to recognize the benefits
of the credit. As such, the Company will not recognize the income until the statute of limitations has elapsed.

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Income
taxes – Income tax expense is the total of the current year income tax due or refundable
and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are the expected future tax amounts for the
temporary differences between carrying amounts and tax basis of assets and liabilities, computed using enacted tax rates. A valuation
allowance, if needed, reduces deferred tax assets to the amount expected to be realized. Accrued interest and penalties associated with
uncertain tax positions are recognized as part of the income tax provision. The Company has no uncertain tax positions. 

Accumulated
comprehensive income (loss) – As of December 31, 2024, accumulated
comprehensive income (loss) consists of the following: (i) unrealized losses on securities available for sale of $7.8
million; (ii) the tax effect of the unrealized losses on securities of $1.9
million; (iii) the gain reclassified on securities designated as hedged items in fair value hedges of $0.4 million; and, (iv)
the tax effect of the gain reclassified on securities designated as hedged items in fair value hedges of $0.1 million. As of December 31, 2023, the
accumulated comprehensive loss consists of unrealized losses on securities available for sale of $7.4
million and the tax effect of the unrealized losses on securities of $1.8
million.

Earnings
per common share – Basic earnings per common share is net income divided by the weighted-average
number of common shares outstanding during the period. ESOP shares are considered outstanding for this calculation unless unearned. Maryland
corporate law does not provide for treasury shares; therefore, shares repurchased are removed from issued