Company: BCTF
Filing Date: 2025-03-06
Form Type: 10-K
Source: 0001552781-25-000058
Chunk: 330

Company: Bancorp 34, Inc.
Filing Date: 2025-03-06
Form: 10-K
Item: Item 1A
Chunk 330
---
 
    $—  
     3,000 
  
    Right-of-use assets obtained in exchange for new operating lease liabilities 
    $3,414  
    $— 

The
accompanying notes are an integral part of the consolidated financial statements.

87

Bancorp
34, Inc.
Notes to Consolidated Financial StatementsDecember 31, 2024 and 2023

Note
1 – Nature of Operations and Significant Accounting Policies

Bancorp
34, Inc. (“Bancorp 34” or the “Company”) is a Maryland corporation organized in 2016 and owns 100% of Southwest
Heritage Bank (formerly Bank 34) (the “Bank”) and CBOA Financial Statutory Trust #1. On March 19, 2024, Bancorp 34 acquired
CBOA Financial, Inc. (“CBOA”) through the merger of CBOA with and into Bancorp 34, with Bancorp 34 surviving the merger (the
“Merger”). Immediately following the acquisition, CBOA’s wholly-owned subsidiary, Commerce Bank of Arizona, was merged
with and into Bancorp 34’s wholly-owned subsidiary, Bank 34, a federally chartered stock covered savings association. Bank 34 was
subsequently rebranded as Southwest Heritage Bank. Also, as part of the acquisition of CBOA, the Company acquired CBOA Financial Statutory
Trust #1, a trust formed by CBOA in November 2005 to close a pooled private offering of 5,000 trust preferred securities with a liquidation
amount of $1,000 per security. Bancorp 34 is not the primary beneficiary of CBOA Financial Statutory Trust #1, and refer to Note 7
for further information.

Southwest Heritage Bank provides a variety of banking services to individuals and businesses through its
seven full-service community bank branches, two in Maricopa County, Arizona, in the cities of Scottsdale and Gilbert; three in Pima County,
Arizona, in the cities of Tucson and Green Valley; one branch in Otero County, New Mexico in the city of Alamogordo; and, one branch
in Dona Ana County New Mexico, in the city of Las Cruces.

Basis
of presentation – The accompanying consolidated financial statements have been prepared
on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America (GAAP).
In management’s opinion