Company: BCTF
Filing Date: 2025-03-06
Form Type: 10-K
Source: 0001552781-25-000058
Chunk: 156

Company: Bancorp 34, Inc.
Filing Date: 2025-03-06
Form: 10-K
Item: Item 1
Chunk 156
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least a 97% guarantee against default by a third party and have performed as agreed. Management does not intend to sell the FFELP securities,
and it is likely that management will not be required to sell the securities prior to their anticipated recovery.

Unrealized losses on available-for-sale
municipal obligation securities have not been recognized through the income statement. As of December 31, 2024, the credit rating for
these securities ranges from A+ to AAA and are performing as agreed. General Obligation bonds represent 31% of the municipal bond portfolio.
The remaining 69% of the portfolio consists of revenue bonds, the majority of which are essential purpose or have an insurance wrapper.
Management has no intent to sell these securities and can hold the securities to maturity. The decline in fair value is largely due to
changes in market interest rates and management expects the fair value to recover as the securities approach their maturity date.

Management evaluated the foregoing available-for-sale
securities for potential impairment as of December 31, 2024. Based on this evaluation, including the preceding analysis summary, management
has determined that the unrealized losses on available-for-sale securities are primarily attributable to increases in market interest
rates and do not reflect credit losses. Accordingly, as of December 31, 2024, management concluded that an allowance for credit losses
on available-for-sale securities is not necessary, as the decline in fair value is not indicative of credit losses. Management will continue
to monitor the fair value of these available-for-sale securities and reassess the need for an allowance for credit losses if circumstances
change.

Certain information concerning the sale
of debt securities available-for-sale for the years ended December 31, 2024, and 2023, was as follows (dollars in thousands):

Schedule of Information regarding Sale of Debt Securities Available-for-Sale 

    Years ended 

    December 31, 2024  
    December 31, 2023 
  
    Proceeds from sale 
    $54,085  
    $— 
  
    Gross realized gains 
    $—  
    $— 
  
    Gross realized losses 
    $—  
    $— 

Expected maturities will differ from contractual
maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Securities
not due at a single maturity date are shown separately.

As of December 31, 2024, the amortized