Company: BCTF
Filing Date: 2025-03-06
Form Type: 10-K
Source: 0001552781-25-000058
Chunk: 976

Company: Bancorp 34, Inc.
Filing Date: 2025-03-06
Form: 10-K
Item: Item 3
Chunk 976
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) 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 December 31, 2023, primarily reflect the following pro forma adjustments: (i) CBOA’s net income of $2.4 million (ii) interest
and fee income increase related to loan discount accretion income of $3.1 million and related taxes of $775,000; (iii) interest and fee
income decrease due to the removal of CBOA’s pre-Merger deferred loan fee income of $796,000 and related taxes of $199,000; (iv)
interest expense increase related to deposit liability and long-term debt discount expense of $275,000 and related taxes of $69,000;
(v) provision for credit losses increase due to the Merger related non-recurring Day 2 Non-PCD Loan charge of $4.1 million and related
taxes of $1 million; (vi) non-interest income increase due to the addition of a non-recurring non-taxable $5 million preliminary bargain
purchase gain; (vii) non-interest expense decrease related to removal of Merger expenses for both CBOA and the Bank of $3.7 million and
related taxes of $399,000; (viii) non-interest expense increase related to Core Deposit Intangible amortization expense of $1.7 million
and related taxes of $421,000; and (ix) the addition of Merger-related non-recurring change-in-control charges of $654,000 and related
taxes of $164,000.

Management prepared these pro forma results
for comparative purposes only and these pro forma results are not necessarily indicative of the actual results that would have been obtained
had the Merger actually occurred on January 1, 2023. No assumptions have been applied to the pro forma revenues and pro forma earnings
regarding, for example, possible revenue enhancements, expense efficiencies, fixed cost leverage opportunities, or non-earning asset
dispositions.

Additionally, the pro forma amounts for
Bancorp 34’s weighted average basic and diluted common shares outstanding are based upon: (i) Bancorp 34’s actual weighted
average basic and diluted common shares outstanding for each of the periods presented; together with and