Company: BCTF
Filing Date: 2025-03-06
Form Type: 10-K
Source: 0001552781-25-000058
Chunk: 97

Company: Bancorp 34, Inc.
Filing Date: 2025-03-06
Form: 10-K
Item: Item 1
Chunk 97
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 the favorable impact of the $5.0 million bargain purchase gain and state tax credits.

Further information
on our annual income taxes is presented in Note 11 – Income Taxes in our audited consolidated financial statements included elsewhere
in this Annual Report on Form 10-K.

66

FINANCIAL
CONDITION

Balance
Sheet

Our total assets were
$918.1 million at December 31, 2024, and $581.3 million at December 31, 2023. Our total loans held for investment were $676.1 million
at December 31, 2024, and $457.0 million at December 31, 2023. The increase in our total assets and total loans, respectively, largely
reflects total assets, as adjusted for estimated fair values of $419.3 million, and total loans, as adjusted for estimated fair values,
of $310.9 million, which were acquired in connection with the CBOA Merger. For further information regarding the CBOA Merger, see Note
2 in our consolidated financial statements included in this Annual Report on Form 10-K.

Investment
Securities

Our securities portfolio
is used to make various term investments, maintain a source of liquidity and serve as collateral for certain types of borrowings. We
manage our investment portfolio according to written investment policies approved by our board of directors. Investment in our securities
portfolio may change over time based on our funding needs and interest rate risk management objectives. Our liquidity levels take into
account anticipated future cash flows and available sources of funds and are maintained at levels that we believe are appropriate to
provide the necessary flexibility to meet our anticipated funding requirements.

Our investment
securities portfolio consists of securities classified as available-for-sale and held-to-maturity. There were no trading securities in
our investment portfolio as of December 31, 2024, and December 31, 2023. All available-for-sale securities are carried at fair value
and may be used for liquidity purposes.

Our securities available-for-sale
were $78.7 million and $56.7 million at December 31, 2024, and December 31, 2023, respectively. Following the CBOA Merger, management
liquidated the entire acquired CBOA available-for-sale investment portfolio in late March and early April, and management determined
that these sales prices were the best indicator of the fair value of the CBOA available-for-sale-investment portfolio effective as of