Wed, Aug 14, 7:12 PM (153 days ago)
Bancorp 34, Inc. reported significant financial changes for the second quarter ended June 30, 2024, following its merger with CBOA Financial, Inc. Key highlights include total assets increasing to $922.3 million from $581.3 million, primarily due to the merger. Loans held for investment rose to $735.5 million, with an allowance for credit losses of $10.8 million, reflecting a higher loan volume and credit risk management. Net interest income surged to $9.0 million from $3.7 million year-over-year, driven by increased earning assets and improved yields. However, the company experienced a net loss of $34,000 for the first half of 2024, influenced by merger-related expenses totaling approximately $3.8 million. Noninterest income was boosted by a one-time $5.0 million preliminary bargain purchase gain from the merger. The efficiency ratio improved to 80.15% from 93.64%, indicating better cost management. Regulatory capital ratios remained strong, with the bank categorized as well-capitalized. Despite uncertainties from market conditions, management expressed confidence in future liquidity and operational stability.