Bancorp 34, Inc. Reports 4th Quarter Performance, Provides Merger Update and Announces Proposed New Brand
Operating results continue to be impacted by expenses related to the merger with CBOA Financial, Inc. ("CBOA") announced in
The problem credit which led to elevated provision expenses in the 3rd quarter of 2023 was transferred to other real estate owned, with a carrying value of
Total assets increased
Both the Company and CBOA anticipate the merger closing in March of 2024.
In anticipation of the merger closing later this month, the Company and CBOA have announced the combined bank will rebrand as
President and Chief Executive Officer
ABOUT
FORWARD-LOOKING STATEMENTS - Certain statements herein that are not historical facts may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may be identified by words such as "believes," "will," "expects," "project," "may," "could," "developments," "strategic," "launching," "opportunities," "anticipates," "estimates," "intends," "plans," "targets" and similar expressions and in this press release include our expectations regarding shareholder approval for and completion of the merger with CBOA. These statements are based upon the current beliefs and expectations of the Company's management and are subject to significant risks and uncertainties. Actual results may differ materially from those set forth in the forward-looking statements as a result of numerous factors. Factors that could cause such differences to exist include, but are not limited to, the failure of either the Company's or CBOA's shareholders to approve the merger or the failure of other conditions to the merger, and general economic conditions. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. Forward-looking statements speak only as of the date they are made, and we assume no obligation to update any of these statements in light of new information, future events or otherwise unless required under federal securities laws.
Additional Information About the Merger and Where to Find It
This communication is being made in respect of the proposed merger transaction between the Company and CBOA. In connection with the proposed merger, the Company has filed a registration statement on Form S-4 with the
This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.
A free copy of the proxy statement/prospectus, as well as other documents filed with the
PARTICIPANTS IN THE TRANSACTION
The Company and CBOA and certain of their respective directors and executive officers, under the rules of the
Contact:
Chief Financial Officer
(623) 334-6064
BCTF@Bank34.com
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CONDENSED CONSOLIDATED BALANCE SHEETS |
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(Unaudited) |
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(dollars in 000s, except per share data) |
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Dec. 31, 2023 |
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Dec. 31, 2022 |
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ASSETS |
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Total cash and cash equivalents |
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$ 28,897 |
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$ 16,947 |
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Available-for-sale securities, at fair value |
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56,690 |
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58,582 |
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Held-to-maturity securities, amortized cost, net |
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5,684 |
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5,832 |
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Loans held for investment, net |
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451,167 |
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458,582 |
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Other real estate owned |
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3,000 |
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- |
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Other assets |
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35,827 |
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34,397 |
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TOTAL ASSETS |
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$ 581,265 |
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$ 574,340 |
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LIABILITIES AND STOCKHOLDERS' EQUITY |
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LIABILITIES |
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Total deposits |
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$ 459,999 |
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$ 487,587 |
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Other borrowings |
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29,000 |
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5,000 |
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Subordinated debt, net |
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24,595 |
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24,531 |
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Accrued interest and other liabilities |
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6,950 |
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7,984 |
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TOTAL LIABILITIES |
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520,544 |
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525,102 |
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TOTAL STOCKHOLDERS' EQUITY |
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60,721 |
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49,238 |
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY |
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$ 581,265 |
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$ 574,340 |
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Tangible Book Value Per Share |
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Equity to Assets |
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10.45 % |
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8.57 % |
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Non-Performing Assets to Total Assets |
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0.90 % |
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0.73 % |
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Shares Outstanding |
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4,694,010 |
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3,554,455 |
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
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(Unaudited) |
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(dollars in 000s, except per share data) |
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Year Ended |
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Quarter Ended |
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2023 |
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2022 |
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2023 |
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2022 |
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Total interest income |
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$ 28,124 |
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$ 23,761 |
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$ 7,404 |
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$ 6,326 |
Total interest expense |
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12,949 |
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5,314 |
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3,820 |
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2,295 |
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Net interest income |
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15,175 |
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18,447 |
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3,584 |
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4,031 |
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Provision for credit losses |
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4,223 |
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2,420 |
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943 |
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1,640 |
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Total noninterest income |
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730 |
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545 |
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201 |
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159 |
Total noninterest expense |
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15,537 |
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15,184 |
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4,545 |
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5,486 |
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Pre-tax (loss) income |
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(3,855) |
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1,388 |
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(1,703) |
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(2,936) |
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(Benefit from) provision for income taxes |
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(453) |
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58 |
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(27) |
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(994) |
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NET (LOSS) INCOME |
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$ (3,402) |
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$ 1,330 |
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$ (1,676) |
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$ (1,942) |
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Diluted (loss) earnings per share |
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$ (0.88) |
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$ 0.56 |
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$ (0.40) |
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$ (0.81) |
Return on Average Assets |
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-0.59 % |
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0.23 % |
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-1.15 % |
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-1.35 % |
Return on Average Equity |
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-5.48 % |
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3.44 % |
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-11.12 % |
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-21.03 % |
Net Interest Margin |
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2.76 % |
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3.39 % |
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2.63 % |
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3.10 % |
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