Wed, May 15, 4:58 PM (72 days ago)
Bancorp 34, Inc. reported a net loss of $1.5 million for Q1 2024, primarily due to merger-related expenses and a significant provision for credit losses. The merger with CBOA Financial, Inc. on March 19, 2024, contributed to a substantial increase in total assets and loans. Post-merger, Bancorp 34 recognized a preliminary bargain purchase gain of $5.1 million and incurred $6.4 million in merger expenses. Net interest income decreased by 9.9% YoY to $3.7 million, driven by higher funding costs. Noninterest income benefited from the bargain purchase gain, while noninterest expenses surged due to merger costs. The allowance for credit losses increased to $10.7 million, reflecting the acquisition's impact. The company's liquidity position strengthened, with $72.7 million in cash and equivalents, and robust borrowing capacities. Regulatory capital ratios remained strong, classifying both Bancorp 34 and Southwest Heritage Bank as well-capitalized.