Company: BCTF
Filing Date: 2025-03-06
Form Type: 10-K
Source: 0001552781-25-000058
Chunk: 158

Company: Bancorp 34, Inc.
Filing Date: 2025-03-06
Form: 10-K
Item: Item 1
Chunk 158
---
 Significant Accounting
Policies for additional information on the Company’s methodology on estimating credit losses. The following table presents the
activity in the allowance for credit losses for debt securities held-to-maturity by major security type (dollars in thousands):

Schedule
of Allowance for Credit Losses for Securities Held-To-Maturity

    For the year ended December 31, 2024 
    Corporate Bonds 
  
    Allowance for credit losses: 

    Beginning balance December 31, 2023 
    $115 
  
    Provision for credit losses 
     (14)
  
    Securities charged off (recoveries) 
     — 
  
    Total ending allowance balance December 31, 2024 
     101 

    For year ended December 31, 2023      
    Corporate Bonds 
  
    Allowance for credit losses: 

    Beginning balance December 31, 2022 
    $— 
  
    Impact of ASU 2016-13 adoption 
     38 
  
    Provision for credit losses 
     77 
  
    Securities charged-off (recoveries) 
     — 
  
    Total ending allowance balance December 31, 2023 
    $115 

The Company monitors the credit quality
of held-to-maturity securities on a quarterly basis using an industry recognized risk scoring model that incorporates pertinent industry
data such as profitability, capital ratios, and asset quality ratios, among other considerations. As of December 31, 2024, there were
no held-to-maturity securities past due or on non-accrual.

NOTE
4 – LOANS AND ALLOWANCE FOR CREDIT LOSSES

On January 1, 2023, the Company adopted
the new CECL standard, ASU 2016-13, using the modified retrospective method for all financial assets measured at amortized cost. For
comparability, the Company has adjusted certain prior period loan amounts to conform to the current presentation of segmentation under
CECL. Refer to Note 1 - Summary of Significant Accounting Policies for additional information related to the Company’s methodology
for estimating the allowance for credit losses.

The following presents a summary of the
Company’s loans at amortized cost as of the dates noted (dollars in thousands):

Schedule of Company's Loan 

    December 31,  
    December 31, 

    2024  
    2023 
  
    1-4 Family residential real