Company: BCTF
Filing Date: 2025-03-06
Form Type: 10-K
Source: 0001552781-25-000058
Chunk: 451

Company: Bancorp 34, Inc.
Filing Date: 2025-03-06
Form: 10-K
Item: Item 1B
Chunk 451
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    Advances from FRB and FHLB 
     327  
     (84) 
     243 
  
    Subordinated debt, net of issuance costs 
     118  
     300  
     418 
  
    Total interest-bearing liabilities 
     5,687  
     2,851  
     8,538 
  
    Change in net interest income 
    $9,755  
    $4,368  
    $14,123 

Allowance
and Provision for Credit Losses – Loans held-for-investment

At December 31, 2024,
and 2023, our ACL for loans held for investment was $10.2 million and $5.9 million, respectively, which represents 1.50% and 1.28% of
loans held for investment, respectively. We maintain the ACL at a level that management believes is adequate to absorb expected credit
losses over the lifetime of our loans held-for-investment. Specifically, identifiable and quantifiable losses are immediately charged
against the allowance; and recoveries are generally recorded only when sufficient cash payments are received subsequent to the charge-off.

The provision for credit
losses, from time to time, includes a charge to our operating results in order to maintain the ACL at a level consistent with management’s
assessment of the collectability of the loans held-for-investment in light of current economic conditions and market trends. Our provision
for credit losses was $3.8 million and $4.2 million for 2024 and 2023, respectively. The 2024 $3.8 million provision for credit loss
expense primarily reflects the merger-related $4.1 million charge for Non-PCD loans. The 2023 provision for credit losses reflects one
problem credit which resulted in $3 million of provision for credit losses and was reflective of management’s best estimate, at
the time, of the real estate value underlying this one problem credit. The impact from our CECL adoption effective January 1, 2023, resulted
in a one-time net of income tax charge to retained earnings of $654,000.

Noninterest
Income

The following
table presents our noninterest income for the years ended December 31, 2024, and 2023.

    Year Ended December 31, 
  
    (In thousands) 
    2024  
    2023 
  
    Service charges on deposit accounts