Company: BCTF
Filing Date: 2025-03-06
Form Type: 10-K
Source: 0001552781-25-000058
Chunk: 101

Company: Bancorp 34, Inc.
Filing Date: 2025-03-06
Form: 10-K
Item: Item 1
Chunk 101
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longer term and include both the construction phase as well as longer term financing.

Commercial real estate
loans include owner occupied and non-owner occupied commercial real estate mortgage loans to operating commercial businesses and include
loans for long-term financing of land and buildings. No significant concentrations are present within the CRE portfolio as the bank has
made an effort to diversify across various industries and geographic locations. While the majority of these loans are made primarily
in our marketplace, some of the loans have out of market properties. In response to the deterioration of the large out of market commercial
real estate loan during 2023, management engaged an external party to complete a loan review that included approximately 90% of the out
of market collateral portfolio during 2024. Additionally, management reviewed the property appraisals associated with the out of market
loans and plans to limit out of market lending moving forward.

Multifamily loans are
those properties that have five or more units with borrowers who are primarily commercial entities. The bank finances loans in several
different multifamily types but does not have a concentration in any one type and does not do any specialty lending in this area. These
loans are made primarily in our marketplace.

Maturities
and Sensitivity of Loans to Changes in Interest Rates

The information in the
following table is based on the contractual maturities of individual loans, including loans that may be subject to renewal at their contractual
maturity. Renewal of these loans is subject to review and credit approval, as well as modification of terms upon maturity. Actual repayments
of loans may differ from the maturities reflected below because borrowers have the right to prepay obligations with or without prepayment
penalties. The following table summarizes the loan maturity distribution by type and related interest rate characteristics as of the
periods presented:

    (In thousands) 

    As of December 31, 2024 
    One year  or less  
    After one through five years  
    After five through 15 years  
    After 15 years  
    Total 

    Fixed  
    Variable  
    Fixed  
    Variable  
    Fixed  
    Variable  

    1-4 Family residential real estate 
    $4,113  
    $34,813  
    $2,189  
    $11,034  
    $4,874  
    $3,985  
    $8,322