Company: BCTF
Filing Date: 2025-03-06
Form Type: 10-K
Source: 0001552781-25-000058
Chunk: 331

Company: Bancorp 34, Inc.
Filing Date: 2025-03-06
Form: 10-K
Item: Item 1A
Chunk 331
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, all accounting adjustments necessary to accurately reflect the financial position and results of operations
on the accompanying financial statements have been made. These adjustments are normal and recurring accruals considered necessary for
a fair and accurate presentation.

Basis
of consolidation – The consolidated financial statements include the accounts of Bancorp
34 and the Bank. All significant intercompany accounts and transactions have been eliminated.

Reclassifications –
Certain reclassifications have been made to prior period’s financial information to conform to the current period presentation.
Reclassifications had no effect on Equity or Net Income. 

Use
of estimates – The preparation of financial statements in conformity with GAAP requires
management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent
assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting
period. Actual results could differ from those estimates.

Significant estimates include, but
are not limited to, allowance for credit losses of collectively evaluated loans and the fair value marks used in accounting for
the acquisition of CBOA (including estimate of consideration paid, fair value estimates of CBOA’s loans, deposits, long-term debt,
and a Core Deposit Intangible asset as a result of the Merger). The Company holds collateral dependent loans that are individually
evaluated for the allowance for credit losses and are categorized as level three instruments and are valued on a non-recurring
basis using unobservable inputs further described in Note 16.

Subsequent
events – Subsequent events have been evaluated through the date the consolidated financial
statements were issued.

Cash
and cash equivalents – Cash and cash equivalents include cash, due from banks, and federal
funds sold. Generally, the Company considers all highly liquid instruments with original maturities of three months or less to be cash
equivalents. In monitoring credit risk associated with deposits in other banks, the Bank periodically evaluates the stability of the
correspondent financial institutions. Banks may be required to maintain reserve funds in cash or on deposit with the Federal Reserve
Bank. No reserves were required at December 31, 2024, and December 31, 2023.

Securities
– If management has the intent and the Company has the ability at the time of purchase
to hold securities until maturity, they are classified as held-to-maturity and carried at amortized historical cost less the allowance
for credit losses. Securities to be held for an undeterminable period of time and not intended