Company: BCTF
Filing Date: 2025-03-06
Form Type: 10-K
Source: 0001552781-25-000058
Chunk: 962

Company: Bancorp 34, Inc.
Filing Date: 2025-03-06
Form: 10-K
Item: Item 3
Chunk 962
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 cost, is classified as a restricted security, and
is periodically evaluated for impairment based on ultimate recovery. The carrying value of financial institution stocks at December 31,
2024, and December 31, 2023, was $5,048,000 and $3,254,000, respectively. Cash and stock dividends are recorded in Other Income in the
Consolidated Statement of Income.

The Company invested in the Castle
Creek Launchpad Fund I, LP in April 2022. The Company has committed to funding up to $2 million over a 4-year funding period. As of December
31, 2024, the investment has a carrying value of $1,041,000 compared to $809,000 as of December 31, 2023. As of both dates, the
investment was valued using the net asset value practical expedient. The scope of the NAV practical expedient is limited to investments
without readily determinable fair values in entities that calculate NAV per share consistently with the measurement principles of ASC
946, Financial Services — Investment Companies. Both criteria were present at each of the balance sheet dates noted above.

Transfers
of financial assets – Transfers of financial assets are accounted for as sales when control
over the assets has been relinquished. Control over transferred assets is deemed to be surrendered when the assets have been isolated
from the Company, the transferee obtains the right, free of conditions that constrain it from taking advantage of that right, to pledge
or exchange the transferred assets, and the Company does not maintain effective control over the transferred assets through an agreement
to repurchase them before their maturity.

Bank
Owned Life Insurance (BOLI) – The Bank holds BOLI representing life insurance on the lives
of certain executives of the Bank purchased in order to help offset the costs of the Bank’s benefit expenses. BOLI is carried on
our consolidated balance sheets at the net cash surrender value of the policies and increases in the net cash surrender value are recorded
in noninterest income in the consolidated statements of comprehensive income (loss) as bank owned life insurance income.

Other
real estate owned – Other real estate owned is comprised of properties acquired through
a foreclosure proceeding or acceptance of a deed in lieu of foreclosure. Generally, these properties are initially recorded at fair value,
less estimated cost to sell at the date of foreclosure, establishing a new cost basis. After foreclosure, valuations are periodically
performed by management; other real estate owned is carried at the