BCTF 10-Q

Bancorp 34, Inc. (BCTF)

10-Q 2024-11-13 For: 2024-09-30

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Added on April 12, 2026

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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	46
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	68
Item 4.	Controls and Procedures	68

PART II. OTHER INFORMATION		69

Item 1.	Legal Proceedings	69
Item 1A.	Risk Factors	69
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	69
Item 3.	Defaults Upon Senior Securities	69
Item 4.	Mine Safety Disclosures	69
Item 5.	Other Information	69
Item 6.	Exhibits	69

Signature Page		70

Exhibit Index		71

	·	the possibility that the anticipated benefits of our merger (the “Merger”) with CBOA Financial, Inc. (“CBOA”), including anticipated cost savings and strategic gains, are not realized when expected or at all, including as a result of the impact of, or problems arising from, the integration of the two companies or as a result of the strength of the economy, competitive factors in the areas where the Company and CBOA do business or as a result of other unexpected factors or events;
	·	the impact of purchase accounting with respect to the Merger, or any change in the assumptions used regarding the assets purchased and liabilities assumed to determine their fair value;
	·	diversion of management’s attention from ongoing business operations and opportunities;
	·	potential adverse reactions or changes to business or employee relationships, including those resulting from the completion of the Merger;
	·	the integration of the business and operations of CBOA, which may take longer than anticipated or be more costly than anticipated or have unanticipated adverse results relating to CBOA’s existing business;
	·	challenges retaining or hiring key personnel;
	·	business disruptions following the Merger;
	·	the outcome of pending or threatened litigation or of matters before regulatory agencies, whether currently existing or commencing in the future, including litigation related to cybersecurity breaches or the Merger;
	·	increased capital requirements, other regulatory requirements or enhanced regulatory supervision;
	·	the inability to increase revenue and earnings;
	·	the inability to efficiently manage operating expenses;
	·	changes in capital markets;
	·	changes in asset quality and credit risk;
	·	changes in deposit costs and liquidity risk;
	·	adverse changes in economic conditions;
	·	Deterioration of the market for commercial real estate, including as a result of continued increasing ecommerce volumes, hybrid or remote work arrangements following the COVID-19 pandemic, higher vacancy rates, higher interest rates, property fraud and other factors;
	·	customer borrowing, repayment, investment and deposit practices;
	·	the impact, extent and timing of technological changes;
	·	changes in legislation, regulation, policies or administrative practices, whether by judicial, governmental or legislative action, including, but not limited to, changes pertaining to banking, securities, taxation, rent regulation and housing, financial accounting and reporting, environmental protection and insurance, and the ability to comply with such changes in a timely manner;
	·	changes in the monetary and fiscal policies of the U.S. Government, including policies of the U.S. Department of the Treasury and the Federal Reserve;
	·	changes in interest rates, which may affect the Company’s net income and other future cash flows, or the market value of the Company’s assets, including its investment securities;
	·	our ability to lower our funding costs at a rate commensurate with any decreases in the rates that we can charge for loans;
	·	changes in accounting principles, policies, practices or guidelines;
	·	failure to attract new customers and retain existing customers in the manner anticipated;
	·	any interruption or breach of security resulting in failures or disruptions in customer account management, general ledger, deposit, loan or other systems;
	·	the adverse effects of events beyond our control that may have a destabilizing effect on financial markets and the economy, such as epidemics and pandemics, war or terrorist activities, essential utility outages, deterioration in the global economy, instability in the credit markets, disruptions in our customers’ supply chains or disruption in transportation; and
	·	other actions of state and federal banking regulators and legislative and regulatory actions and reforms.

	(Unaudited) September 30, 2024			December 31, 2023
ASSETS
Cash and due from banks	$	66,940		$	27,182
Federal funds sold		60,860			1,715
Total cash and cash equivalents		127,800			28,897

Available-for-sale securities, at fair value		58,191			56,690

Held-to-maturity securities, at amortized cost, net of allowance for credit losses		5,638			5,684

Loans held for investment		703,135			457,027
Allowance for credit losses		(10,523	)		(5,860	)

Loans held for investment, net		692,612			451,167

Other real estate owned		—			3,000
Premises and equipment, net		8,441			7,350
Operating leases right-of-use assets		4,301			1,819
Other investments		6,186			4,063
Accrued interest receivable		2,619			1,597
Deferred income tax asset, net		8,508			4,884
Bank owned life insurance		12,054			11,847
Core deposit intangible, net		8,004			—
Prepaid and other assets		5,060			4,267
Total assets	$	939,414		$	581,265

	(Unaudited) September 30, 2024			December 31, 2023
LIABILITIES AND STOCKHOLDERS’ EQUITY
LIABILITIES
Deposits
Demand deposits	$	204,418		$	88,091
Savings and NOW deposits		343,114			243,505
Time deposits		237,649			128,403
Total deposits		785,181			459,999

Federal Reserve Bank BTFP Advances		27,000			29,000
Subordinated debt, net of issuance costs		23,135			24,595
Subordinated debentures, trust preferred securities		4,183			—
Escrows		181			168
Operating lease liabilities		4,869			2,011
Accrued interest and other liabilities		7,743			4,771
Total liabilities		852,292			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: 6,614,315 and 3,873,895 on September 30, 2024, and December 31, 2023, respectively		66			39
Non-voting common stock, $0.01 par value Issued and outstanding: 820,115 on September 30, 2024, and December 31, 2023		8			8
Additional paid-in capital		66,705			43,279
Retained earnings		25,842			24,301
Accumulated other comprehensive loss		(4,197	)		(5,560	)
Unearned Employee Stock Ownership Plan (ESOP) shares		(1,302	)		(1,346	)
Total stockholders’ equity		87,122			60,721

Total liabilities and stockholders’ equity	$	939,414		$	581,265


	Three Months Ended					Nine Months Ended
	September 30,					September 30,
	2024		2023			2024			2023
Interest and dividend income:
Interest and fees on loans	$	12,314	$	6,631		$	32,238		$	19,082
Interest on securities		478		395			1,444			1,218
Interest on other interest-earning assets		1,376		146			3,037			420
Total interest income		14,168		7,172			36,719			20,720

Interest expense:
Interest on deposits		5,087		2,994			13,604			7,813
Interest on borrowings		695		474			2,086			1,316
Total interest expense		5,782		3,468			15,690			9,129

Net interest income		8,386		3,704			21,029			11,591

Provision (benefit) for credit losses		—		3,146			3,866			3,280

Net interest income after provision for credit losses		8,386		558			17,163			8,311

Noninterest income:
Service charges on deposit accounts		167		106			424			328
Bank owned life insurance		70		63			207			183
Gain on sale of loans, net		22		17			27			83
Loss on sale of other real estate owned		—		—			(432	)		—
Preliminary bargain purchase gain on the merger (Note 2)		—		—			5,018			—
Other income		8		(22	)		11			(65	)
Total noninterest income		267		164			5,255			529

Noninterest expense:
Salaries and employee benefits		3,129		1,488			9,057			5,144
Occupancy		700		293			1,817			843
Data processing		929		622			2,720			1,908
FDIC and other insurance expense		173		70			554			224
Professional Fees		402		153			1,259			486
Merger Costs		—		529			3,762			1,333
Advertising		97		4			193			31
Core Deposit Intangible Amortization		430		—			926			—
Other expenses		741		441			1,764			1,023
Total noninterest expense		6,601		3,600			22,052			10,992

(Loss) income before provision for income taxes		2,052		(2,878	)		366			(2,152	)
(Benefit from) provision for income taxes		477		(603	)		(1,175	)		(426	)
Net (loss) income	$	1,575	$	(2,275	)	$	1,541		$	(1,726	)

Earnings per share:
Basic	$	0.22	$	(0.52	)	$	0.24		$	(0.48	)
Diluted	$	0.22	$	(0.52	)	$	0.24		$	(0.48	)


	Shares								Balances
																						Accumulated
																						Other
	Voting			Non-voting		Series A			Voting		Non-voting		Series A			Additional						Comprehensive			Unearned
	Common			Common		Preferred			Common		Common		Preferred			Paid-In			Retained			Income			ESOP
	Shares			Shares		Shares			Stock		Stock		Stock			Capital			Earnings			(Loss), Net			Shares			Total
BALANCE, JUNE 30, 2023		3,875,945			—		820,115		$	39	$	—	$	8		$	43,249		$	28,251		$	(6,431	)	$	(1,376	)	$	63,740

Net income		—			—		—			—		—		—			—			(2,275	)		—			—			(2,275	)
Other comprehensive loss		—			—		—			—		—		—			—			—			(1,069	)		—			(1,069	)
Equity awards		(1,250	)		—		—			—		—		—			(9	)		—			—			15			6
Conversion of Series A preferred stock to non-voting common stock		—			820,115		(820,115	)		—		8		(8	)		—			—			—			—			—

BALANCE, SEPTEMBER 30, 2023		3,874,695			820,115		—			39		8		—			43,240			25,976			(7,500	)		(1,361	)		60,402

BALANCE, JUNE 30, 2024		6,614,315			820,115		—		$	66	$	8	$	—		$	66,697		$	24,267		$	(5,623	)	$	(1,316	)	$	84,099

Net income		—			—		—			—		—		—			—			1,575			—			—			1,575
Other comprehensive income		—			—		—			—		—		—			—			—			1,426			—			1,426
Equity awards		—			—		—			—		—		—			8			—			—			14			22

BALANCE, SEPTEMBER 30, 2024		6,614,315			820,115		—		$	66	$	8	$	—		$	66,705		$	25,842		$	(4,197	)	$	(1,302	)	$	87,122


	Nine months ended September 30,
	2024			2023
CASH FLOWS FROM OPERATING ACTIVITIES
Net (loss) income	$	1,541		$	(1,726	)
Adjustments to reconcile net (loss) income to net cash provided by operating activities
Depreciation and amortization		754			419
Stock dividends on other investments		(263	)		(32	)
Amortization of premiums and discounts on securities, net		118			200
Amortization of equity awards		187			105
Originations of loans held for sale		(1,866	)		(924	)
Gain on sale of loans		(27	)		(83	)
Proceeds from sale of loans		3,088			1,007
Loss on sale other real estate owned		432			—
Provision for credit losses		3,866			3,280
Net appreciation on bank-owned life insurance		(207	)		(183	)
Deferred income tax (benefit) expense		(995	)		1
Preliminary bargain purchase gain from CBOA Financial, Inc. merger		(5,018	)		—
Accretion of discount on loans		(2,602	)		—
Core deposit intangible amortization		926			—
Amortization of discount on time deposits		173			—
Amortization of discount on subordinated debt		40			—

Changes in operating assets and liabilities:
Accrued interest receivable		556			16
Prepaid and other assets		300			695
Accrued interest and other liabilities		1,054			1,519
Other, net		291			—

Net cash provided by operating activities		2,348			4,304

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		59,933			4,136
Purchases of available-for-sale securities		(4,953	)		—
Net (purchase) redemptions of other investments		—			(1,606	)
Net change in loans held for investment		67,003			(17,173	)
Proceeds from sale of other real estate owned		2,568			—
Purchases of premises and equipment		(242	)		(100	)

Net cash provided by (used in) investing activities		155,236			(14,743	)

CASH FLOWS FROM FINANCING ACTIVITIES
Net change in deposits		(21,721	)		(19,146	)
Proceeds from Federal Home Loan Bank advances and other borrowings		1,663			242,398
Repayments of Federal Home Loan Bank advances and other borrowings		(38,623	)		(229,398	)
Common stock repurchases		—			(210	)
Common stock issuance, net		—			10,866
Preferred stock issuance, net		—			4,176
Payment of dividends		—			(656	)

Net cash (used in) provided by financing activities		(58,681	)		8,030

NET CHANGE IN CASH AND CASH EQUIVALENTS		98,903			(2,409	)
CASH AND CASH EQUIVALENTS, beginning of period		28,897			16,947

CASH AND CASH EQUIVALENTS, end of period	$	127,800		$	14,538

SUPPLEMENTAL DISCLOSURES
Interest paid on deposits and borrowings	$	14,110		$	8,867
Income taxes paid (refunds received)	$	7		$	124
Right-of-use assets obtained in exchange for new operating lease liabilities	$	156		$	—

(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	)

(in thousands)	Estimated Fair Values as Recorded by Bancorp 34			Measurement Period Adjustments for the nine months ended September 30, 2024			September 30, 2024
Fair Value of the common stock consideration	$	23,310		$	—		$	23,310

Identifiable assets acquired:
Cash and cash equivalents		30,927			—			30,927
Debt securities available-for-sale, at fair value		58,220			—			58,220
Loans:
Purchased performing		284,723			—			284,723
Purchased credit deteriorated		26,163			—			26,163
Allowance for credit losses on loans		—			—			—
Deferred Loan Fees		—			—			—
Deferred tax on assets acquired		1,233			(157	)		1,076
Operating right-of-use assets		2,866			—			2,866
Core deposit intangibles		8,930			—			8,930
Other assets		6,264			39			6,303
Total identifiable assets acquired	$	419,326		$	(118	)	$	419,208

Identifiable liabilities assumed:
Deposits		346,743			—			346,743
Short-term borrowings		35,000			—			35,000
Long-term borrowings		4,143			—			4,143
Deferred taxes on liabilities assumed		253			—			253
Other liabilities		4,741			—			4,741
Total identifiable liabilities assumed	$	390,880		$	—		$	390,880

Net identifiable assets acquired	$	28,446		$	(118	)	$	28,328

Preliminary bargain purchase gain	$	(5,136	)	$	118		$	(5,018	)


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 September 30,					Nine months ended September 30,
(in thousands, except per share data)	2024		2023			2024		2023
Total revenues (net interest income and non-interest income)	$	8,557	$	8,603		$	26,284	$	26,152
Net income (loss)	$	1,547	$	(832	)	$	5,016	$	2,125
Earnings (loss) per share - basic	$	0.21	$	(0.12	)	$	0.67	$	0.31
Earnings (loss) per share - diluted	$	0.21	$	(0.12	)	$	0.67	$	0.31


Available-for-sale	September 30, 2024
	Gross		Gross		Gross			Estimated
	Amortized		Unrealized		Unrealized			Fair
(Dollars in thousands)	Cost		Gains		Losses			Value
Mortgage-backed securities	$	35,262	$	6	$	(3,324	)	$	31,944
U.S. Treasuries		5,044		—		(189	)		4,855
U.S. government agencies		214		—		(6	)		208
Municipal obligations		22,058		—		(1,760	)		20,298
Corporate debt		1,000		—		(114	)		886
Total	$	63,578	$	6	$	(5,393	)	$	58,191


Held-to-maturity	September 30, 2024
	Gross			Gross		Gross			Estimated
	Amortized			Unrealized		Unrealized			Fair
(Dollars in thousands)	Cost			Gains		Losses			Value
Corporate debt	$	5,774		$	—	$	(417	)	$	5,357
Total	$	5,774		$	—	$	(417	)	$	5,357
Allowance for Credit Losses	$	(136	)
Net Carrying Value of Held-to-maturity securities	$	5,638


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	)

	September 30,			December 31,
	2024			2023
1-4 Family residential real estate	$	71,279		$	61,645
Commercial		120,510			50,169
Consumer and other		902			698
Construction		30,630			34,538
Non-Owner Occupied (NOO) CRE		259,966			167,203
Owner Occupied (OO) CRE		157,184			82,228
Multifamily		62,664			60,546

Loans held for investment		703,135			457,027

Less: allowance for credit losses		(10,523	)		(5,860	)

Loans, net	$	692,612		$	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 September 30, 2024
Beginning balance	$	977		$	2,688		$	9	$	729		$	3,374	$	2,245		$	779		$	10,801
Provision (credit) for loan losses		(49	)		194			—		(215	)		258		(134	)		(54	)		—
Loans charged off		—			(350	)		—		—			—		—			—			(350	)
Recoveries		2			70			—		—			—		—			—			72
Balance on September 30, 2024	$	930		$	2,602		$	9	$	514		$	3,632	$	2,111		$	725		$	10,523

	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 nine months ended September 30, 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		152		1,260			2			(256	)		1,690		899		105		3,852
Loans charged off		—		(558	)		(2	)		—			—		—		—		(560	)
Recoveries		8		199			—			—					—		—		207
Balance on September 30, 2024	$	930	$	2,602		$	9		$	514		$	3,632	$	2,111	$	725	$	10,523


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, September 30, 2024
Mortgage-backed securities	$	1,967	$	(4	)	$	27,191	$	(3,320	)	$	29,158	$	(3,324	)
U.S. Treasuries		1,985		(1	)		2,870		(188	)		4,855		(189	)
U.S. government agencies		—		—			208		(6	)		208		(6	)
Municipal obligations		—		—			19,722		(1,760	)		19,722		(1,760	)
Corporate debt		—		—			886		(114	)		886		(114	)

Total temporarily impaired	$	3,952	$	(5	)	$	50,877	$	(5,388	)	$	54,829	$	(5,393	)


Held to Maturity: September 30, 2024
Corporate debt	$	—	$	—	$	5,357	$	(417	)	$	5,357	$	(417	)
Total temporarily impaired	$	—	$	—	$	5,357	$	(417	)	$	5,357	$	(417	)


	Three months ended
	September 30, 2024		September 30, 2023
Proceeds from sale	$	—	$	—
Gross realized gains	$	—	$	—
Gross realized losses	$	—	$	—


	Nine months ended
	September 30, 2024		September 30, 2023
Proceeds from sale	$	54,085	$	—
Gross realized gains	$	—	$	—
Gross realized losses	$	—	$	—

	Amortized Cost		Fair Value		Average Yield
Available-for-sale
Due in one year or less	$	3,027	$	3,020		4.51	%
Due from one to five years		13,778		12,861		1.74	%
Due from five to ten years		11,511		10,366		2.41	%
Due after ten years		—		—		—
Mortgage-backed securities		35,262		31,944		2.36	%
Total	$	63,578	$	58,191		2.37	%

	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		5,774		5,357		4.31	%
Due after ten years		—		—		—
Total	$	5,774	$	5,357		4.31	%

For the three months ended September 30, 2024	Corporate Bonds
Allowance for credit losses:
Beginning balance June 30, 2024	$	136
Provision for credit losses		—
Securities charged off (recoveries)		—
Total ending allowance balance September 30, 2024		136

For the nine months ended September 30, 2024	Corporate Bonds
Allowance for credit losses:
Beginning balance December 31, 2023	$	115
Provision for credit losses		21
Securities charged off (recoveries)		—
Total ending allowance balance September 30, 2024		136


	Loans Contractually Past Due
	30–59		60–89		Over 90				Loans Not
September 30, 2024	Days		Days		Days		Total		Past Due		Total
1-4 Family residential real estate	$	—	$	200	$	—	$	200	$	71,079	$	71,279
Commercial		2,110		—		1,875		3,985		116,525		120,510
Consumer and other		—		—		—		—		902		902
Construction		2,263		—		—		2,263		28,367		30,630
NOO CRE		—		—		—		—		259,966		259,966
OO CRE		—		—		—		—		157,184		157,184
Multifamily		—		—		129		—		62,535		62,664

Total	$	4,373	$	200	$	2,004	$	6,577	$	696,558	$	703,135


	Loans Contractually Past Due
December 31, 2023	30–59 Days		60–89 Days		Over 90 Days		Total		Loans Not Past Due		Total
1-4 Family residential real estate	$	409	$	—	$	—	$	409	$	61,236	$	61,645
Commercial		—		—		589		589		49,580		50,169
Consumer and other		—		—		—		—		698		698
Construction		—		—		—		—		34,538		34,538
NOO CRE		—		—		—		—		167,203		167,203
OO CRE		—		—		—		—		82,228		82,228
Multifamily		—		—		—		—		60,546		60,546

Total	$	409	$	—	$	589	$	998	$	456,029	$	457,027


	Term Loans Amortized Cost by Origination
September 30, 2024	2024		2023		2022		2021		2020		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
1-4 Family
Pass	$	2,690	$	4,465	$	26,695	$	11,763	$	7,317	$	11,578	$	6,274	$	—	$	70,782
Special Mention		—		—		—		437		—		—		—		—		437
Substandard		—		—		—		—		—		60		—		—		60
Doubtful		—		—		—		—		—		—		—		—		—
Total 1-4 Family		2,690		4,465		26,695		12,200		7,317		11,638		6,274		—		71,279
Current year-to-date gross write-offs		—		—		—		—		—		—		—		—		—
Commercial
Pass		11,427		34,091		20,270		8,221		3,121		3,181		33,700		—		114,011
Special Mention		—		33		1,062		460		1,835		155		274		—		3,819
Substandard		—		—		1,920		—		524		236		—		—		2,680
Doubtful		—		—		—		—		—		—		—		—		—
Total Commercial		11,427		34,124		23,252		8,681		5,480		3,572		33,974		—		120,510
Current year-to-date gross write-offs		—		—		350		—		208		—		—		—		558
Consumer and other
Pass		80		—		61		—		—		100		641		—		902
Special Mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—		—
Total Consumer and Other		80		—		61		—		—		100		641		—		902
Current year-to-date gross write-offs		—		—		—		—		—		2		—		—		2
Construction
Pass		4,809		8,149		10,088		2,026		22		2,134		18		—		27,246
Special Mention		—		—		1,651		613		—		—		—		—		2,264
Substandard		—		—		—		—		—		1,120		—		—		1,120
Doubtful		—		—		—		—		—		—		—		—		—
Total Construction		4,809		8,149		11,739		2,639		22		3,254		18		—		30,630
Current year-to-date gross write-offs		—		—		—		—		—		—		—		—		—
NOO CRE
Pass		1,237		37,448		48,184		72,951		32,612		55,145		6,058		—		253,635
Special Mention		—		—		4,683		—		—		—		—		—		4,683
Substandard		—		—		1,648		—		—		—		—		—		1,648
Doubtful		—		—		—		—		—		—		—		—		—
Total NOO CRE		1,237		37,448		54,515		72,951		32,612		55,145		6,058		—		259,966
Current year-to-date gross write-offs		—		—		—		—		—		—		—		—		—
OO CRE
Pass		1,603		36,647		36,414		44,571		12,238		22,102		549		—		154,124
Special Mention		—		225		—		—		—		1,647		—		—		1,872
Substandard		—		—		—		—		33		1,155		—		—		1,188
Doubtful		—		—		—		—		—		—		—		—		—
Total OO CRE		1,603		36,872		36,414		44,571		12,271		24,904		549		—		157,184
Current year-to-date gross write-offs		—		—		—		—		—		—		—		—		—
Multi Family
Pass		—		499		19,850		22,947		6,367		10,263		1,004		—		60,930
Special Mention		—		—		—		—		1,012		—		—		—		1,012
Substandard		—		—		—		722		—		—		—		—		722
Doubtful		—		—		—		—		—		—		—		—		—
Total Multi Family		—		499		19,850		23,669		7,379		10,263		1,004		—		62,664
Current year-to-date gross write-offs		—		—		—		—		—		—		—		—		—
Total	$	21,866	$	121,557	$	172,526	$	164,711	$	65,081	$	108,876	$	48,518	$	—	$	703,135

Total year-to-date gross write-offs	$	—	$	—	$	350	$	—	$	208	$	2	$	—	$	—	$	560


	As of September 30, 2024
	Non-accrual loans				Loans past due
	with		Total non-accrual		over 89 days and
	no ACL		loans		still accruing
1-4 Family residential real estate	$	60	$	60	$	—
Commercial		432		2,509		—
Consumer and other		—		—		—
Construction		—		—		—
NOO CRE		—		—		—
OO CRE		—		—		—
Multifamily		722		722		—

Total	$	1,214	$	3,291	$	—

	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 September 30, 2024 Collateral Dependent Loans
	Secured by		Secured by
	Real Estate		Other		Total
1-4 Family residential real estate	$	60	$	—	$	60
Commercial		—		2,509		2,509
Consumer and other		—		—		—
Construction		—		—		—
NOO CRE		—		—		—
OO CRE		—		—		—
Multifamily		722		—		722

Total	$	782	$	2,509	$	3,291

	September 30,		December 31,
Maturity	2024		2023
One year or less	$	202,870	$	93,675
Over one through three years		30,142		30,390
Over three through five years		4,637		4,338
Totals	$	237,649	$	128,403


	September 30, 2024				December 31, 2023
	Fixed		Variable		Fixed		Variable
Commitments to extend credit	$	7,069	$	25,493	$	5,327	$	6,966
Unused lines of credit		3,551		39,781		3,962		18,859
Totals	$	10,620	$	65,274	$	9,289	$	25,825

	For the three months ended September 30, 2024
Beginning Balance:	$	350,000
(Release) provision for credit losses		—
Ending Balance	$	350,000

	For the nine months ended September 30, 2024
Beginning Balance:	$	135,000
Impact of merger with CBOA Financial, Inc.		222,000
(Release) provision for credit losses		(7,000	)
Ending Balance	$	350,000


2024	$	217
2025		1,001
2026		877
2027		740
2028		621
2029		652
2030		622
2031		119
2032		20
Operating lease liabilities (present value of minimum lease payments)	$	4,869

Weighted-average remaining term (in years)		5.4
Weighted-average discount rate		2.86	%

	Actual					Minimum Required For Capital Adequacy Purposes					Minimum Required To Be Well Capitalized Under Prompt Corrective Action Regulations
	Amount		Ratio			Amount		Ratio			Amount		Ratio
September 30, 2024

Total Capital to risk-weighted assets:	$	110,572		14.28	%	$	61,945		8	%	$	77,431		10	%
Tier 1 (Core) Capital to risk weighted assets:	$	100,878		13.03	%	$	46,452		6	%	$	61,936		8	%
Common Tier 1 Capital to risk weighted assets (CET1):	$	100,878		13.03	%	$	34,839		4.50	%	$	50,323		6.50	%
Tier 1 (Core) Capital to average assets:	$	100,878		10.98	%	$	36,750		4	%	$	45,937		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	%

	Nine months ended September 30, 2024		Year ended December 31, 2023
Fees and bonuses paid to directors during the period	$	188	$	269
Deposits from related parties held by the bank at the end of period	$	2,967	$	2,607