Company: BCTF
Filing Date: 2025-03-06
Form Type: 10-K
Source: 0001552781-25-000058
Chunk: 458

Company: Bancorp 34, Inc.
Filing Date: 2025-03-06
Form: 10-K
Item: Item 1B
Chunk 458
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 60,241  
     8.8% 
     60,546  
     13.2%
  
    Total gross loans 
    $676,092  
     100% 
    $457,027  
     100%

Family residential real
estate loans represent loans to consumers collateralized by a mortgage on a residence and include purchase money, refinancing, secondary
mortgages, and home equity loans and lines of credit.

Commercial loans include
commercial and industrial loans to commercial customers for use in normal business operations to finance working capital needs, equipment
and inventory purchases, and other expansion projects. SBA, USDA and other small business lending products are also included. These loans
are made primarily in our market areas, are underwritten on the basis of the borrower’s ability to service the debt from revenue,
and are generally extended under our normal credit standards, controls and monitoring systems.

Consumer and other include
direct consumer installment loans, overdrafts, and other revolving loans.

68

Construction loans include
both residential and commercial projects. Construction loan terms are dependent upon the project, but in some cases the loan will be
longer term and include both the construction phase as well as longer term financing.

Commercial real estate
loans include owner occupied and non-owner occupied commercial real estate mortgage loans to operating commercial businesses and include
loans for long-term financing of land and buildings. No significant concentrations are present within the CRE portfolio as the bank has
made an effort to diversify across various industries and geographic locations. While the majority of these loans are made primarily
in our marketplace, some of the loans have out of market properties. In response to the deterioration of the large out of market commercial
real estate loan during 2023, management engaged an external party to complete a loan review that included approximately 90% of the out
of market collateral portfolio during 2024. Additionally, management reviewed the property appraisals associated with the out of market
loans and plans to limit out of market lending moving forward.

Multifamily loans are
those properties that have five or more units with borrowers who are primarily commercial entities. The bank finances loans in several
different multifamily types but does not have a concentration in any one type and does not do any specialty lending in this area. These
loans are made primarily in our marketplace.

Maturities
and Sensitivity of Loans to Changes in Interest Rates

The information in the
following table is based on the contractual matur