Bancorp 34, Inc 10-Q for FY2024 Q1

Bancorp 34, Inc. (BCTF)

10-Q 2024-05-15 For: 2024-03-31

Added on April 12, 2026

About this 10-Q

Bancorp 34, Inc filed this 10-Q on May 15, 2024, covering the quarter ended March 31, 2024 (FY2024 Q1).

Headline figures

Quarter ended March 31, 2024, as reported in this filing, compared with the same period a year earlier where the filing states it.

Net loss: $1.54M; compared with net income of $444K a year earlier
Diluted EPS: -$0.31; compared with $0.11 a year earlier

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Maryland	333-273901	74-2819148
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

Large accelerated filer	☐	Accelerated filer	☐	Non-accelerated Filer	☒
Smaller reporting company	☒	Emerging growth company	☐

		Page Number

PART I. FINANCIAL INFORMATION		2

Item 1.	Financial Statements	2
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	39
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	61
Item 4.	Controls and Procedures	61

PART II. OTHER INFORMATION		62

Item 1.	Legal Proceedings	62
Item 1A.	Risk Factors	62
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	62
Item 3.	Defaults Upon Senior Securities	62
Item 4.	Mine Safety Disclosures	62
Item 5.	Other Information	62
Item 6.	Exhibits	62

Signature Page		63

Exhibit Index		64

	(Unaudited) March 31, 2024			December 31, 2023
ASSETS
Cash and due from banks	$	66,234		$	27,182
Federal funds sold		6,510			1,715
Total cash and cash equivalents		72,744			28,897

Available-for-sale securities, at fair value		102,226			56,690

Held-to-maturity securities, at amoritzed cost, net of allowance for credit losses		5,645			5,684

Loans held for investment		750,307			457,027
Allowance for credit losses		(10,675	)		(5,860	)

Loans held for investment, net		739,632			451,167

Other real estate owned		—			3,000
Premises and equipment, net		8,875			7,350
Operating leases right-of-use assets		4,599			1,819
Other investments		6,097			4,063
Accrued interest receivable		2,961			1,597
Deferred income tax asset, net		9,086			4,884
Bank owned life insurance		11,915			11,847
Core deposit intangible, net		8,868			—
Prepaid and other assets		7,531			4,267
Total assets	$	980,179		$	581,265


LIABILITIES AND STOCKHOLDERS’ EQUITY

	(Unaudited) March 31, 2024			December 31, 2023
LIABILITIES
Deposits
Demand deposits	$	220,201		$	88,091
Savings and NOW deposits		371,080			243,505
Time deposits		215,125			128,403
Total deposits		806,406			459,999

Federal Reserve Bank BTFP Advances		49,000			29,000
Subordinate debt, net of issuance costs		23,108			24,595
Subordinated debentures, trust preferred securities		4,145			—
Escrows		274			168
Operating lease liabilities		5,202			2,011
Accrued interest and other liabilities		9,845			4,771
Total liabilities		897,980			520,544

STOCKHOLDERS’ EQUITY
Common stock, $0.01 par value Authorized: 100,000,000 shares, including 1,100,000 shares of non-voting common stock
Voting common stock, $0.01 par value Issued and outstanding: 6,616,152 and 3,873,895 on March 31, 2024, and December 31, 2023, respectively		66			39
Non-voting common stock, $0.01 par value Issued and outstanding: 820,115 and 820,115 on March 31, 2024, and December 31, 2023, respectively		8			8
Additional paid-in capital		66,577			43,279
Retained earnings		22,762			24,301
Accumulated other comprehensive loss		(5,883	)		(5,560	)
Unearned Employee Stock Ownership Plan (ESOP) shares		(1,331	)		(1,346	)
Total stockholders’ equity		82,199			60,721

Total liabilities and stockholders’ equity	$	980,179		$	581,265


	Three Months Ended
	March 31,
	2024			2023
Interest and dividend income:
Interest and fees on loans	$	6,890		$	6,110
Interest on securities		470			417
Interest on other interest-earning assets		560			138
Total interest income		7,920			6,665

Interest expense:
Interest on deposits		3,612			2,201
Interest on borrowings		643			395
Total interest expense		4,255			2,596

Net interest income		3,665			4,069

Provision (benefit) for credit losses		3,916			(1	)

Net interest (loss) income after provision for credit losses		(251	)		4,070

Noninterest income:
Service charges on deposit accounts		91			96
Bank owned life insurance		68			59
Loss on sale of other real estate owned		(432	)		—
Preliminary bargain purchase gain on the merger (Note 2)		5,136			—
Other income		3			3
Total noninterest income		4,866			158

Noninterest expense:
Salaries and employee benefits		2,525			2,103
Occupancy		421			258
Data processing		742			617
FDIC and other insurance expense		96			64
Professional Fees		542			267
Merger Costs		3,348			—
Advertising		11			20
Other expenses		472			297
Total noninterest expense		8,157			3,626

(Loss) income before provision for income taxes		(3,542	)		602
(Benefit from) provision for income taxes		(2,003	)		158
Net (loss) income	$	(1,539	)	$	444

Earnings per share:
Basic	$	(0.31	)	$	0.11
Diluted	$	(0.31	)	$	0.11


		Shares						Balances
	Voting Common Shares			Non-voting Common Shares		Series A Preferred Shares		Voting Common Stock		Non-voting Common Stock		Series A Preferred Stock		Additional Paid-In Capital			Retained Earnings			Accumulated Other Comprehensive Income (Loss), Net			Unearned ESOP Shares			Total
BALANCE, JANUARY 1, 2023		3,032,606			—		521,849	$	30	$	—	$	5	$	28,369		$	29,013		$	(6,773	)	$	(1,406	)	$	49,238
Cumulative adjustment for day one adoption of ASU 2016-13, net of tax		—			—		—		—		—		—		—			(654	)		—			—			(654	)
																		—									—
																		—									—
BALANCE, JANUARY 1, 2023(as adjusted for the adoption of ASU 2016-13)		3,032,606			—		521,849	$	30	$	—	$	5	$	28,369		$	28,358		$	(6,773	)	$	(1,406	)	$	48,583
																		—									—
																		—									—
Net income		—			—		—		—		—		—		—			444			—			—			444
Other comprehensive income on AFS securities, net of tax		—			—		—		—		—		—		—			—			926			—			926
Amortization of equity awards		—			—		—		—		—		—		16			—			—			15			31
Share repurchase		(15,000	)		—		—		—		—		—		(210	)		—			—			—			(210	)
Issuance of common stock, net of costs		848,089			—		—		8		—		—		10,858			—			—			—			10,866
Issuance of Series A preferred stock, net of costs		—			—		298,266		—		—		3		4,173			—			—			—			4,176
Dividends		—			—		—		—		—		—		—			(328	)		—			—			(328	)

BALANCE, MARCH 31, 2023		3,865,695			—		820,115	$	39	$	—	$	8	$	43,205		$	28,474		$	(5,847	)	$	(1,391	)	$	64,488

BALANCE, JANUARY 1, 2024		3,873,895			820,115		—	$	39	$	8	$	—	$	43,279		$	24,301		$	(5,560	)	$	(1,346	)	$	60,721
Net loss		—			—		—		—		—		—		—			(1,539	)		—			—			(1,539	)
Other comprehensive loss on AFS securities, net of tax		—			—		—		—		—		—		—			—			(323	)		—			(323	)
Amortization of equity awards		—			—		—		—		—		—		15			—			—			15			30
Issuance of common stock for the Merger, (Note 2)		2,742,257			—		—		27		—		—		23,283			—			—			—			23,310

BALANCE, MARCH 31, 2024		6,616,152			820,115		—	$	66	$	8	$	—	$	66,577		$	22,762		$	(5,883	)	$	(1,331	)	$	82,199


	Three months ended March,
	2024			2023
CASH FLOWS FROM OPERATING ACTIVITIES
Net (loss) income	$	(1,539	)	$	444
Adjustments to reconcile net (loss) income to net cash used in operating activities
Depreciation and amortization		189			133
Stock dividends on other investments		—			(32	)
Amortization of premiums and discounts on securities, net		74			65
Amortization of equity awards		30			31
Loss on sale other real estate owned		432			—
Provision for credit losses		3,916			(1	)
Net appreciation on bank-owned life insurance		(68	)		(59	)
Deferred income tax (benefit) expense		(839	)		(1	)
Preliminary bargain purchase gain from CBOA Financial, Inc. merger		(5,136	)		—
Accretion of discount on loans		(309	)		—
Core deposit intangible amortization		62			—

Changes in operating assets and liabilities:
Accrued interest receivable		214			62
Prepaid and other assets		(1,705	)		898
Accrued interest and other liabilities		3,435			(781	)

Net cash (used in) provided by operating activities		(1,244	)		759

CASH FLOWS FROM INVESTING ACTIVITIES
CBOA Financial, Inc. merger, cash acquired		30,927			—
Proceeds from calls, sales, maturities, or principal payments on available-for-sale securities		8,354			1,971
Purchases of available-for-sale securities		—			—
Purchases of held-to-maturity securities		—			—
Net (purchase) redemptions of other investments		(184	)		(956	)
Net change in loans held for investment		18,878			(8,650	)
Proceeds from sale of other real estate owned		2,568			—
Proceeds from disposals of premises and equipment		—			—
Purchases of premises and equipment		(100	)		(38	)

Net cash provided by (used in) investing activities		60,443			(7,673	)

CASH FLOWS FROM FINANCING ACTIVITIES
Net change in deposits		(352	)		(26,763	)
Proceeds from Federal Home Loan Bank advances		—			110,399
Repayments of Federal Home Loan Bank advances		—			(98,399	)
Proceeds from Federal Reserve advances		—			—
Repayments of Federal Reserve advances		(15,000	)		—
Common stock repurchases		—			(210	)
Common stock issuance, net		—			10,866
Preferred stock issuance, net		—			4,176
Payment of dividends		—			(328	)

Net cash (used in) financing activities		(15,352	)		(259	)

NET CHANGE IN CASH AND CASH EQUIVALENTS		43,847			(7,173	)
CASH AND CASH EQUIVALENTS, beginning of period		28,897			16,947

CASH AND CASH EQUIVALENTS, end of period	$	72,744		$	9,774

SUPPLEMENTAL DISCLOSURES
Interest on deposits and borrowings paid	$	4,270		$	2,443

(in thousands)	As Recorded by CBOA			Estimated Fair Value Adjustments			Estimated Fair Values as Recorded by Bancorp 34
Fair Value of the common stock consideration							$	23,310

Identifiable assets acquired:
Cash and cash equivalents	$	30,927		$	—		$	30,927
Debt securities available for sale, at fair value		57,844			376			58,220
Loans
Purchased performing		300,080			(15,357	)		284,723
Purchased credit deteriorated		30,425			(4,262	)		26,163
Allowance for credit losses on loans		(3,855	)		3,855			—
Deferred loan fees		(1,033	)		1,033			—
Deferred tax on assets acquired		—			1,233			1,233
Operating right-of-use assets		2,866			—			2,866
Core deposit intangibles		—			8,930			8,930
Other assets		6,284			(20	)		6,264
Total identifiable assets acquired	$	423,538		$	(4,212	)	$	419,326

Identifiable liabilities assumed:
Deposits		346,995			(252	)		346,743
Short-term borrowings		35,000			—			35,000
Long-term borrowings		5,155			(1,012	)		4,143
Deferred taxes on liabilities assumed		—			253			253
Other liabilities		4,661			80			4,741
Total identifiable liabilities assumed	$	391,811		$	(931	)	$	390,880

Net identifiable assets acquired	$	31,727		$	(3,281	)	$	28,446

Preliminary bargain purchase gain							$	(5,136	)


Unpaid principal balance	$	30,425
Allowance for credit losses at acquisition		(1,164	)
Non-credit discount		(3,098	)
Purchase price	$	26,163

	Pro Forma
	Three months ended March 31,
(in thousands, except per share data)	2024			2023
Total revenues (net interest income and non-interest income)	$	6,769		$	8,464
Net (loss) income	$	(589	)	$	1,245
(Loss) earnings per share - basic	$	(0.09	)	$	0.20
(Loss) earnings per share - diluted	$	(0.09	)	$	0.20


Available-for-sale	March 31, 2024
	Gross		Gross		Gross			Estimated
	Amortized		Unrealized		Unrealized			Fair
(Dollars in thousands)	Cost		Gains		Losses			Value
Mortgage-backed securities	$	74,530	$	236	$	(5,003	)	$	69,763
U.S. Treasuries		3,066		—		(296	)		2,770
U.S. government agencies		8,571		28		(14	)		8,585
Municipal obligations		22,902		—		(2,650	)		20,252
Corporate debt		1,000		—		(144	)		856
Total	$	110,069	$	264	$	(8,107	)	$	102,226


Held-to-maturity	March 31, 2024
	Gross			Gross		Gross			Estimated
	Amortized			Unrealized		Unrealized			Fair
(Dollars in thousands)	Cost			Gains		Losses			Value
Corporate debt	$	5,791		$	—	$	(556	)	$	5,235
Total	$	5,791		$	—	$	(556	)	$	5,235
Allowance for Credit Losses	$	(146	)
Net Carrying Value of Held-to-maturity securities	$	5,645


Available-for-sale	December 31, 2023
	Gross		Gross		Gross			Estimated
	Amortized		Unrealized		Unrealized			Fair
(Dollars in thousands)	Cost		Gains		Losses			Value
Mortgage-backed securities	$	36,829	$	—	$	(4,362	)	$	32,467
U.S. Treasuries		3,069		—		(277	)		2,792
U.S. government agencies		287		—		(17	)		270
Municipal obligations		22,921		—		(2,593	)		20,328
Corporate debt		1,000		—		(167	)		833
Total	$	64,106	$	—	$	(7,416	)	$	56,690


	Continued Unrealized Loss for Less than 12 Months					Continued Unrealized Loss for 12 Months or More					Total
Description of securities	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss

Available-for-sale, March 31, 2024
Mortgage-backed securities	$	11,953	$	(88	)	$	29,014	$	(4,915	)	$	40,967	$	(5,003	)
U.S. Treasuries		—		—			2,770		(296	)		2,770		(296	)
U.S. government agencies		454		(1	)		246		(13	)		700		(14	)
Municipal obligations		—		—			20,251		(2,650	)		20,251		(2,650	)
Corporate debt		—		—			856		(144	)		856		(144	)

Total temporarily impaired	$	12,407	$	(89	)	$	53,137	$	(8,018	)	$	65,544	$	(8,107	)


Held to Maturity March 31, 2024
Corporate debt	$	—	$	—	$	5,235	$	(556	)	$	5,235	$	(556	)
Total temporarily impaired	$	—	$	—	$	5,235	$	(556	)	$	5,235	$	(556	)


Held to Maturity December 31, 2023
Corporate debt	$	904	$	(96	)	$	4,203	$	(596	)	$	5,107	$	(692	)
Total temporarily impaired	$	904	$	(96	)	$	4,203	$	(596	)	$	5,107	$	(692	)

	3/31/2024		3/31/2023
Proceeds from sale	$	7,471	$	—
Gross realized gains	$	—	$	—
Gross realized losses	$	—	$	—

	Amortized Cost		Fair Value		Average Yield

Available-for-sale
Due in one year or less	$	1,380	$	1,369		2.68	%
Due from one to five years		12,180		11,107		2.11	%
Due from five to ten years		21,979		19,987		3.10	%
Due after ten years		—		—		—
Mortgage-backed securities		74,530		69,763		3.63	%
Total	$	110,069	$	102,226		3.34	%

	Amortized Cost		Fair Value		Average Yield

Held-to-maturity
Due in one year or less	$	—	$	—		—
Due from one to five years		—		—		—
Due from five to ten years		5,791		5,235		4.30	%
Due after ten years		—		—		—
Total	$	5,791	$	5,235		4.30	%

For the three months ended March 31, 2024	Corporate Bonds
Allowance for credit losses:
Beginning balance	$	115
Provision for credit losses		31
Securities charged -off (recoveries)		—
Total ending allowance balance		146

	March 31,			December 31,
	2024			2023
1-4 Family residential real estate	$	72,355		$	61,645
Commercial		127,957			50,169
Consumer and other		872			698
Construction		56,410			34,538
Non-Owner Occupied (NOO) CRE		262,623			167,203
Owner Occupied (OO) CRE		159,376			82,228
Multifamily		70,714			60,546

Loans held for investment		750,307			457,027

Less: allowance for credit losses		(10,675	)		(5,860	)

Loans, net	$	739,632		$	451,167

	1–4 Family									NOO		OO
	Residential					Consumer				Commercial		Commercial
	Real Estate		Commercial			and Other		Construction		Real Estate		Real Estate		Multifamily		Total
Changes in allowance for credit losses for the three months ended March 31, 2024
Beginning balance	$	736	$	924		$	8	$	512	$	1,859	$	1,201	$	620	$	5,860
Acquisition of CBOA Financial PCD Loans		34		777			1		258		83		11		—		1,164
Provision (credit) for loan losses		126		1,409			1		64		1,165		941		146		3,852
Loans charged off		—		(208	)		—		—		—		—		—		(208	)
Recoveries		2		5			—		—				—		—		7
Balance on March 31, 2024	$	898	$	2,907		$	10	$	834	$	3,107	$	2,153	$	766	$	10,675


	Loans Contractually Past Due
March 31, 2024	30–59 Days		60–89 Days		Over 90 Days		Total		Loans Not Past Due		Total
1-4 Family residential real estate	$	259	$	—	$	—	$	259	$	72,096	$	72,355
Commercial		2,813		885		350		4,048		123,909		127,957
Consumer and other		—		—		—		—		872		872
Construction		—		—		—		—		56,410		56,410
NOO CRE		—		—		—		—		262,623		262,623
OO CRE		—		—		—		—		159,376		159,376
Multifamily		337		—		—		337		70,377		70,714

Total	$	3,409	$	885	$	350	$	4,644	$	745,663	$	750,307


	Term Loans Amortized Cost by Origination
													Revolving		Revolving
													Loans		Loans
													Amortized		Converted
March 31, 2024	2024		2023		2022		2021		2020		Prior		Cost Basis		to Term		Total
1-4 Family
Pass	$	1,517	$	5,870	$	27,070	$	12,402	$	7,842	$	13,501	$	3,738	$	—	$	71,940
Special Mention		—		—		—		—		—		350		—		—		350
Substandard		—		—		—		—		—		65		—		—		65
Doubtful		—		—		—		—		—		—		—		—		—
Total 1-4 Familly		1,517		5,870		27,070		12,402		7,842		13,916		3,738		—		72,355
Current year-to-date gross write-offs		—		—		—		—		—		—		—		—		—
Commercial
Pass		708		35,204		31,210		10,140		3,546		4,501		35,597		—		120,907
Special Mention		—		—		147		—		1,944		88		101		—		2,280
Substandard		—		571		2,365		491		653		97		341		—		4,518
Doubtful		—		—		—		—		252		—		—		—		252
Total Commercial		708		35,775		33,722		10,631		6,395		4,686		36,039		—		127,957
Current year-to-date gross write-offs		—		—		—		—		208		—		—		—		208
Consumer and other
Pass		—		—		129		—		3		40		700		—		872
Special Mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—		—
Total Consumer and Other		—		—		129		—		3		40		700		—		872
Current year-to-date gross write-offs		—		—		—		—		—		—		—		—		—
Construction
Pass		1,855		15,914		26,371		6,439		723		2,318		18		—		53,639
Special Mention		—		1,681		—		—		—		—		—		—		1,681
Substandard		—		—		—		—		—		1,090		—		—		1,090
Doubtful		—		—		—		—		—		—		—		—		—
Total Construction		1,855		17,595		26,371		6,439		723		3,408		18		—		56,410
Current year-to-date gross write-offs		—		—		—		—		—		—		—		—		—
NOO CRE
Pass		587		34,328		52,822		72,306		32,988		63,014		6,206		—		262,252
Special Mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		371		—		—		371
Doubtful		—		—		—		—		—		—		—		—		—
Total NOO CRE		587		34,328		52,822		72,306		32,988		63,385		6,206		—		262,623
Current year-to-date gross write-offs		—		—		—		—		—		—		—		—		—
OO CRE
Pass		879		37,994		30,487		38,286		12,414		28,899		199		—		149,158
Special Mention		—		226		—		7,099		—		1,676		—		—		9,001
Substandard		—		—		—		—		37		1,180		—		—		1,217
Doubtful		—		—		—		—		—		—		—		—		—
Total OO CRE		879		38,220		30,487		45,385		12,451		31,755		199		—		159,376
Current year-to-date gross write-offs		—		—		—		—		—		—		—		—		—
Multi Family
Pass		—		500		19,853		24,811		6,478		16,238		860		—		68,739
Special Mention		—		—		—		—		1,023		—		—		—		1,023
Substandard		—		—		—		952		—		—		—		—		952
Doubtful		—		—		—		—		—		—		—		—		—
Total Multi Family		—		500		19,853		25,763		7,501		16,238		860		—		70,714
Current year-to-date gross write-offs		—		—		—		—		—		—		—		—		—
Total	$	5,547	$	132,289	$	190,455	$	172,925	$	67,903	$	133,428	$	47,760	$	—	$	750,307
Total year-to-date gross write-offs	$	—	$	—	$	—	$	—	$	208	$	—	$	—	$	—	$	208


	As of March 31, 2024
	Non-accrual loans with no ACL		Total non-accrual loans		Loans past due over 89 days and still accruing
1-4 Family residential real estate	$	65	$	65	$	—
Commercial		1,412		2,046		—
Consumer and other		—		—		—
Construction		—		—		—
NOO CRE		371		371		—
OO CRE		—		—		—
Multifamily		953		953		—

Total	$	2,801	$	3,435	$	—

	As of December 31, 2023
	Non-accrual loans with no ACL		Total non-accrual loans		Loans past due over 89 days and still accruing
1-4 Family residential real estate	$	66	$	66	$	—
Commercial		847		1,208		—
Consumer and other		—		—		—
Construction		—		—		—
NOO CRE		—		—		—
OO CRE		—		—		—
Multifamily		970		970		—

Total	$	1,883	$	2,244	$	—


	As of March 31, 2024 Collateral Dependent Loans
	Secured by Real Estate		Secured by Other		Total
1-4 Family residential real estate	$	65	$	—	$	65
Commercial		—		2,046		2,046
Consumer and other		—		—		—
Construction		—		—		—
NOO CRE		371		—		371
OO CRE		—		—		—
Multifamily		953		—		953

Total	$	1,389	$	2,046	$	3,435

	March 31,		December 31,
Maturity	2024		2023
One year or less	$	178,632	$	93,675
Over one through three years		31,817		30,390
Over three through five years		4,676		4,338
Totals	$	215,125	$	128,403

	For the three months ended March 31, 2024
Beginning Balance:	$	135,000
Impact of merger with CBOA Financial, Inc.		222,000
(Release) provision for credit losses		33,000
Ending Balance	$	390,000


2024	$	657
2025		902
2026		851
2027		740
2028		621
2029		652
2030		640
2031		119
2032		20
Operating lease liabilities (present value of minimum lease payments)	$	5,202

Weighted-average remaining term (in years)		5.9
Weighted-average discount rate		2.83	%

	Actual					Minimum Required For Capital Adequacy Purposes					Minimum Required To Be Well Capitalized Under Prompt Corrective Action Regulations
	Amount		Ratio			Amount		Ratio			Amount		Ratio
March 31, 2024

Total Capital to risk-weighted assets:	$	96,253		11.66	%	$	66,040		8	%	$	82,550		10	%
Tier 1 (Core) Capital to risk weighted assets:	$	85,913		10.40	%	$	49,565		6	%	$	66,087		8	%
Common Tier 1 Capital to risk weighted assets (CET1):	$	85,913		10.40	%	$	37,174		4.50	%	$	53,696		6.50	%
Tier 1 (Core) Capital to average assets:	$	85,913		8.78	%	$	39,140		4	%	$	48,295		5	%

	Actual					Minimum Required For Capital Adequacy Purposes					Minimum Required To Be Well Capitalized Under Prompt Corrective Action Regulations
	Amount		Ratio			Amount		Ratio			Amount		Ratio
December 31, 2023

Total Capital to risk-weighted assets:	$	74,142		14.79	%	$	40,114		8	%	$	50,143		10	%
Tier 1 (Core) Capital to risk weighted assets:	$	68,032		13.57	%	$	30,086		6	%	$	40,114		8	%
Common Tier 1 Capital to risk weighted assets (CET1):	$	68,032		13.57	%	$	22,564		4.50	%	$	32,593		6.50	%
Tier 1 (Core) Capital to average assets:	$	68,032		11.66	%	$	23,347		4	%	$	29,184		5	%

	March 31, 2024		December 31, 2023
Fees and bonuses paid to directors during the period	$	69	$	65
Deposits from related parties held by the bank at the end of period		2,047		2,607

	Shares Subject to Options			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term		Aggregate Intrinsic Value

Outstanding at beginning of year		137,500		$	13.86		2.1 years		—
Granted		—			—		—		—
Exercised		—			—		—		—
Forfeited or expired		(25,000	)		14.90		0.7 years		—
Outstanding on March 31, 2024		112,500		$	13.63		2.2 years	$	—

Exercisable on March 31, 2024		86,500		$	14.07		1.4 years	$	—


	Shares			Weighted- Average Grant Date Fair Value		Average Remaining Contractual Term

Non-vested on January 1, 2024		13,400		$	12.97		3.9 years
Granted		—			—		—
Vested		(900	)		14.97		2.8 years
Forfeited		—			—		—
Non-vested on March 31, 2024		12,500		$	12.82		3.6 years

March 31, 2024	Quoted Prices in Active Markets for Identical Assets Level 1		Significant Other Observable Inputs Level 2		Significant Unobservable Inputs Level 3		Fair Value
Recurring:
Assets:
Securities available-for-sale:
Mortgage-backed securities	$	—	$	69,763	$	—	$	69,763
U.S. Treasuries		—		2,770		—		2,770
U.S. Government Agencies		—		8,585		—		8,585
Municipal obligations		—		20,252		—		20,252
Corporate debt		—		856		—		856
Total available-for-sale:	$	—	$	102,226	$	—	$	102,226

Nonrecurring basis:
Collateral Dependent Loans	$	—	$	—	$	1,193	$	1,193

Collateral Dependent Loans March 31, 2024	Fair Value		Valuation Methodologies	Valuation Model	Unobservable Input Valuation
Commercial		1,193	Appraisal	Receivables Discount/Liquidation Discount	0–50%
Total collateral dependent loans	$	1,193

Collateral Dependent Loans December 31, 2023	Fair Value		Valuation Methodologies	Valuation Model	Unobservable Input Valuation
Commercial		1,071	Appraisal	Receivables Discount/Liquidation Discount	0–50%
Total collateral dependent loans	$	1,071

Other Assets
Other Real Estate Owned	$	3,000	Appraisal	Appraisal Discount/Estimated Selling Costs	23	%