Company: BCTF
Filing Date: 2025-03-06
Form Type: 10-K
Source: 0001552781-25-000058
Chunk: 178

Company: Bancorp 34, Inc.
Filing Date: 2025-03-06
Form: 10-K
Item: Item 1
Chunk 178
---
 $0  
    $0  
    $0 
  
    Derivatives designated as hedging instruments 
    $357  
    $0  
    $0  
    $0 
  
    Amount excluded from effectiveness testing recognized in earnings based on amortization approach 
    $0  
    $0  
    $0  
    $0 

    112

The table below presents cumulative basis
adjustments of hedged items designated as fair value hedges and related amortized cost of those items as of the date presented:

Schedule of Cumulative
Basis Adjustment of Hedged Items

    (in thousands) 
    As of December 31, 2024 
  
    Line Item in consolidated balance sheet in which hedged item is included 
    Amortized cost 
of Hedged Assets  
    Cumulative 
amount of Fair 
Value Hedging 
Adjustments
 included in 
carrying amount 
of Hedged Asset 

    Securities available for sale 
    $51,168  
    $(356) 

Note
13 – Regulatory Matters 

Southwest Heritage Bank is subject to various
regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate
certain mandatory and discretionary actions by regulators that if undertaken, could have a direct material effect on the Bank’s
financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet
specific capital guidelines involving quantitative measures of the Bank’s assets, liabilities, and certain off-balance-sheet items
as calculated under regulatory accounting practices. The Bank’s capital amounts, and classification are also subject to qualitative
judgments by the regulators about components, risk-weightings, and other factors.

Quantitative measures established by regulation
to ensure capital adequacy require the Bank to maintain minimum amounts and ratios of total risk-based capital and Tier 1 capital to
risk-weighted assets, and Tier 1 capital to adjusted total assets. Management believes, as of December 31, 2024, and 2023, the Bank meets
all capital adequacy requirements to which it is subject.

Banks are also subject to certain restrictions
on the dollar amount of dividends that they may declare without prior regulatory approval.

As of December 31, 2024, the Bank was categorized
as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, the Bank has
to maintain minimum total risk-based, Tier