Company: BCTF
Filing Date: 2025-03-06
Form Type: 10-K
Source: 0001552781-25-000058
Chunk: 517

Company: Bancorp 34, Inc.
Filing Date: 2025-03-06
Form: 10-K
Item: Item 1B
Chunk 517
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 scoring model that incorporates pertinent industry
data such as profitability, capital ratios, and asset quality ratios, among other considerations. As of December 31, 2024, there were
no held-to-maturity securities past due or on non-accrual.

NOTE
4 – LOANS AND ALLOWANCE FOR CREDIT LOSSES

On January 1, 2023, the Company adopted
the new CECL standard, ASU 2016-13, using the modified retrospective method for all financial assets measured at amortized cost. For
comparability, the Company has adjusted certain prior period loan amounts to conform to the current presentation of segmentation under
CECL. Refer to Note 1 - Summary of Significant Accounting Policies for additional information related to the Company’s methodology
for estimating the allowance for credit losses.

The following presents a summary of the
Company’s loans at amortized cost as of the dates noted (dollars in thousands):

Schedule of Company's Loan 

    December 31,  
    December 31, 

    2024  
    2023 
  
    1-4 Family residential real estate 
    $69,330  
    $61,645 
  
    Commercial 
     109,924  
     50,169 
  
    Consumer and other 
     261  
     698 
  
    Construction 
     26,285  
     34,538 
  
    Non-Owner Occupied (NOO) CRE 
     258,652  
     167,203 
  
    Owner Occupied (OO) CRE 
     151,399  
     82,228 
  
    Multifamily 
     60,241  
     60,546 

    Loans held for investment 
     676,092  
     457,027 

    Less: allowance for credit losses 
     (10,160) 
     (5,860)

    Loans, net 
    $665,932  
    $451,167 

Allowance
for Credit Losses on Loans

Beginning January 1, 2023, the allowance
for credit losses for loans is measured on the loan’s amortized cost basis, excluding interest receivable. Interest receivable
excluded at December 31, 2024, and December 31, 2023, was $2.2 million and $1.3 million, respectively,