Company: BCTF
Filing Date: 2025-03-06
Form Type: 10-K
Source: 0001552781-25-000058
Chunk: 495

Company: Bancorp 34, Inc.
Filing Date: 2025-03-06
Form: 10-K
Item: Item 1B
Chunk 495
---
 basis over the lease term. Right-of-use assets
represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent our obligation to make
lease payments arising from the lease. Right-of-use assets and lease liabilities are recognized at the lease commencement date based
on the estimated present value of lease payments over the lease term.

Other
investments – The Bank has investments in The Independent Bankers Bank (TIB), Pacific Coast
Bankers’ Bancshares (PCBB), and the Federal Home Loan Bank (FHLB) of San Francisco. The Bank is a member of FHLB system. The Bank
is required to maintain minimum levels of FHLB stock-based on various factors, including the amount of borrowings outstanding, mortgage
assets, and the Bank’s total assets. Financial institution stock is carried at cost, is classified as a restricted security, and
is periodically evaluated for impairment based on ultimate recovery. The carrying value of financial institution stocks at December 31,
2024, and December 31, 2023, was $5,048,000 and $3,254,000, respectively. Cash and stock dividends are recorded in Other Income in the
Consolidated Statement of Income.

The Company invested in the Castle
Creek Launchpad Fund I, LP in April 2022. The Company has committed to funding up to $2 million over a 4-year funding period. As of December
31, 2024, the investment has a carrying value of $1,041,000 compared to $809,000 as of December 31, 2023. As of both dates, the
investment was valued using the net asset value practical expedient. The scope of the NAV practical expedient is limited to investments
without readily determinable fair values in entities that calculate NAV per share consistently with the measurement principles of ASC
946, Financial Services — Investment Companies. Both criteria were present at each of the balance sheet dates noted above.

Transfers
of financial assets – Transfers of financial assets are accounted for as sales when control
over the assets has been relinquished. Control over transferred assets is deemed to be surrendered when the assets have been isolated
from the Company, the transferee obtains the right, free of conditions that constrain it from taking advantage of that right, to pledge
or exchange the transferred assets, and the Company does not maintain effective control over the transferred assets through an agreement
to repurchase them before their maturity.

Bank
Owned Life Insurance