Company: BCTF
Filing Date: 2025-03-06
Form Type: 10-K
Source: 0001552781-25-000058
Chunk: 295

Company: Bancorp 34, Inc.
Filing Date: 2025-03-06
Form: 10-K
Item: Item 1A
Chunk 295
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most significant of which were core processing termination fees, online banking termination fees, and a change-in-control charge.
Merger expenses in 2023 primarily consisted of termination of an IT servicing contract, expenses related to becoming an SEC
registrant, merger consulting fees, due diligence fees, and investment banker fees. Merger expenses in 2024 primarily consisted of
core processing and online banking termination fees, related to termination of an IT servicing contract, employee change-in-control
and board severance payments, conversion related expenses, merger consulting fees, investment banker success fees, and legal
expenses.

For the year, and
in connection with the CBOA Merger, we expensed $1.3 million of amortization expense on the merger-related core deposit intangible. For
more information on the CBOA Merger, see Note 2 in our consolidated financial statements included in this Annual Report on Form 10-K.

Efficiency
ratio

The efficiency ratio
is one measure of profitability in the banking industry. This ratio measures the cost of generating one dollar of revenue. That is, the
ratio is designed to reflect the percentage of one dollar which must be expended to generate that dollar of revenue. We calculate this
ratio by dividing non-interest expense by the sum of net interest income, before provision expense for credit losses, and non-interest
income.

Our efficiency ratio
was 87.26% and 97.69% for the years ended December 31, 2024, and 2023. This improvement is partially reflective of the CBOA Merger and
related non-recurring material financial impacts in connection with the CBOA Merger. For more information on the CBOA Merger, see Note
2 in our consolidated financial statements included in this Annual Report on Form 10-K. 

Return
on equity and assets

The following
table sets forth our ROAA, ROAE, dividend payout and average stockholders’ equity to average assets ratio for the periods ended:

    December 31, 

    2024  
    2023 
  
    Return on average total assets (ROAA) 
     0.20% 
     -0.59%
  
    Return on average stockholders’ equity (ROAE) 
     2.09% 
     -5.48%
  
    Dividend payout ratio 
     0.00% 
     -15.91%
  
    Average stockholders’ equity to average