Company: BCTF
Filing Date: 2025-03-06
Form Type: 10-K
Source: 0001552781-25-000058
Chunk: 381

Company: Bancorp 34, Inc.
Filing Date: 2025-03-06
Form: 10-K
Item: Item 1A
Chunk 381
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of the performance condition for the Company. Once earned, a portion of the performance restricted stock unit awards vest in installments
on anniversaries of the date on which the performance condition was achieved. As of December 31, 2024, 295,100 units of performance restricted
stock awards have been issued under the 2024 Plan.

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The stock option plans allow for net settlement
of vested options. In a net settlement, the Company, at the direction of the optionee, net settles the options by issuing new shares
to the optionee with a value, at the current per share trading price, equal to the total in-the-money or intrinsic value of the options
less any necessary tax withholdings on the disqualifying disposition of Incentive Stock Options. The optionee is granted newly issued
shares and a small amount of cash in lieu of partial shares. There were no net settlements in 2024 or 2023.

No stock compensation was issued under the
2017 Plan or the 2022 Plan in 2024. For the year ended December 31, 2023, 10,250 stock options were granted and 10,250 shares of restricted
stock were issued. Stock option grant-date fair values for 2023 were computed using the Black Scholes Merton options pricing model with
the following weighted-average inputs and assumptions:

Schedule of Weighted Average Inputs and Assumptions

    December 31,  
    December 31, 

    2024  
    2023 
  
    Grant date stock price and exercise price 
    $—  
    $12.03 
  
    Dividend yield 
     —  
     2.89%
  
    Expected stock price volatility 
     —  
     23.37%
  
    Risk-free interest rate 
     —  
     3.50%
  
    Expected option life in years 
     —  
     6 

    Total weighted-average fair value of options granted 
    $—  
    $2.42 

A summary of stock option activity
in 2024 is presented below (Aggregate Intrinsic Value in thousands):

Schedule of Stock Option Activity

    Shares Subject to Options  
    Weighted- Average Exercise Price  
    Weighted- Average Remaining Contractual Term  
    Aggregate Intrinsic Value 
  
    Outstanding at beginning of year 
     137,500  
    $