Company: BCTF
Filing Date: 2025-03-06
Form Type: 10-K
Source: 0001552781-25-000058
Chunk: 130

Company: Bancorp 34, Inc.
Filing Date: 2025-03-06
Form: 10-K
Item: Item 1
Chunk 130
---
 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, all accounting adjustments necessary to accurately reflect the financial position and results of operations
on the accompanying financial statements have been made. These adjustments are normal and recurring accruals considered necessary for
a fair and accurate presentation.

Basis
of consolidation – The consolidated financial statements include the accounts of Bancorp
34 and the Bank. All significant intercompany accounts and transactions have been eliminated.

Reclassifications –
Certain reclassifications have been made to prior period’s financial information to conform to the current period presentation.
Reclassifications had no effect on Equity or Net Income. 

Use
of estimates – The preparation of financial statements in conformity with GAAP requires
management to make estimates and assumptions that affect the reported amounts of assets