Bancorp 34, Inc., the parent company for Bank 34, reported first quarter performance, announces new CFO and dividend.
Bancorp 34, Inc. (OTCQB:BCTF)
ALAMOGORDO, NEW MEXICO, UNITED STATES, April 30, 2021 /EINPresswire.com/ — Bancorp 34, Inc. (OTCQB: BCTF), the parent company for Bank 34, reported first quarter performance, announces new CFO and dividend.
Bancorp 34, Inc. reported net income and diluted EPS for the quarter ended March 31, 2021 of $1.4 million and $0.46, respectively, compared with $278,000 and $0.09 for the same period in 2020.
Loans increased $4 million, or 1% in the quarter. Deposit growth was $30 million, or 8.1%, for the quarter including a $22 million, or 28%, increase in noninterest-bearing demand deposits.
Commenting on the first quarter, President and Chief Executive Officer of Bancorp 34, Jim Crotty stated “We are very pleased to start 2021 with an excellent first quarter. Our record core earnings quarter was bolstered by PPP revenues and continued strength in our loan portfolio. While the banking industry continues to face challenges related to the COVID-19 pandemic, the low rate environment and relatively softer loan demand, Bank 34 has leaned on a loyal customer base, a devoted staff and resilient communities to further drive shareholder value.”
Quarter
• Net income and diluted earnings per share of $1.4 million and $0.46, compared to $278,000 and $0.09 in 1Q20
• Net interest margin of 4.37% (4.34% excluding PPP), compared to 4.17% in 1Q20.
• No provision for loan loss, compared to $472,000 provision in 1Q20 including $350,000 for potential COVID-19 related losses.
• Efficiency ratio improved to 63.43%, compared to 78.58% in 1Q20
Credit
• Allowance for loan loss to loans* of 1.46%, compared to 1.47% previous quarter and 1.09% in 1Q20
• Nonperforming loans to total assets* of .63%, compared to 0.64% previous quarter and .83% in 1Q20
* Balances used for asset quality ratios exclude PPP loans.
CHIEF FINANCIAL OFFICER (CFO) TRANSITION – Michael Sheneman joined Bank 34 in April 2021 as our new CFO. Mr. Sheneman brings with him a wealth of experience having previously served as the CFO at bank and non-bank lenders for many years. Our retiring CFO, Jan Thiry, will assist with transition for the next several weeks as he prepares for his retirement in June.
COVID-19 INFORMATION – The spread of the coronavirus caused us to modify business practices, including employee travel, employee work locations, and cancellation of physical participation in meetings, events and conferences. We continue to have some employees working remotely and may take further actions as required by government authorities or that we determine are in the best interests of employees, customers and business partners from a safety perspective. The following includes information on some of our responses to COVID-19, and the effects of the pandemic on our business.
Paycheck Protection Program (PPP). On March 31, 2021, we had $28 million in PPP Loan balances, including $9 million remaining from the $36 million originated in the second quarter of 2020 and $19 million originated in the first quarter of 2021.
Loan Modifications. At March 31, 2021 one hotel owner-occupied loan with a principal balance of $1.5 million was modified due to the impact of COVID-19. The borrower is current on interest-only payments. This compares to seven modified loans with principal balances totaling $9 million at December 31, 2020.
Allowance for Loan Losses. The ALLL was $4.8 million at March 31, 2021 and December 31, 2020. Additions to the ALLL due to uncertainties related to COVID-19 were $1.6 million for 2020, an increase of 55% from the December 31, 2019 ALLL balance.
CAPITAL MANAGEMENT
Dividends – Bancorp 34, Inc. announced that its Board of Directors approved a quarterly cash dividend of $0.05 per share of common stock, payable on May 28, 2021 to shareholders of record as of the close of business on May 14, 2021. This will be Bancorp 34’s tenth dividend since completing its mutual-to-stock conversion and related stock offering in October 2016. Future declarations of dividends are subject to the determination and discretion of Bancorp 34’s Board of Directors.
Stock Repurchases – In March 2021 the Company repurchased 5,729 shares under its fourth program with authorization to repurchase up to 5% of outstanding shares for up to $2.0 million.
ABOUT BANCORP 34, INC. – Bank 34 has four full-service community bank branches, one each in Otero and Dona Ana Counties in the cities of Alamogordo and Las Cruces in southern New Mexico and two in Maricopa County, Arizona in the cities of Scottsdale and Peoria. At March 31, 2021, the Company had consolidated assets of $463 million.
FORWARD-LOOKING STATEMENTS – Certain statements herein 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. 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, general economic conditions, changes in interest rates, the effects of any health pandemic, regulatory considerations, competition and the other risks. Further, given the ongoing and dynamic nature of the COVID-19 outbreak, it is difficult to predict the impact on our business which will depend on highly uncertain future developments including when the coronavirus can be controlled and abated and when and how the economy may be reopened or remain open. 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.
Jan R. Thiry, EVP/Chief Financial Officer
Bancorp 34, Inc.
+1 6237770570
BCTF@Bank34.com
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