American Marconi Wireless News - Bancorp 34, Inc. Reports 2nd Quarter Performance

SCOTTSDALE, AZ / ACCESS Newswire / August 3, 2026 / Bancorp 34, Inc. (OTCID:BCTF), the parent company for Southwest Heritage Bank, together, the "Company" reports second quarter of 2026 performance.

Management Comments - Ciaran McMullan, Chairman & CEO

• Core¹ ROATA improved for the seventh consecutive quarter.

• Core¹ Net Interest Margin also improved over both the linked and prior year quarters.

• While total loans increased modestly over the linked quarter, we booked approximately $37.0 million in new commitments.

• Non-performing assets declined significantly as we returned a single large relationship to accrual status.

• The bank received approval to retire $23.0 million of subordinated debt, effective July 15th, 2026.

• As a result, annual interest cost will decline by $920,000.

• During the quarter, we appointed a new Market President for our Las Cruces / El Paso market

2Q26 Highlights

Net Income and NIM

• Core¹ NIM improved over the linked and prior year quarters, by 8bps and 22bps, respectively driven by declining deposit costs and improved loan portfolio yields.

• Net Income improved over the linked quarter driven primarily by increased net interest income and declined over the prior year due to the impact of a large recovery in Q2 2025.

• Net Operating Income (pre-tax pre-provision) increased over both the linked and prior year quarters due to improved NIM and non-interest income.

• Non-interest expense increased slightly during the quarter due to one-time costs related to the relocation of our Scottsdale Branch.

Balance Sheet

• Deposits declined by $29.0 million in line with historical trends primarily due to tax payments coming due in April.

• Total loans were up only slightly as elevated payoffs offset the impact of $37.0 million in new loan commitments.

Asset Quality

• NPAs³ improved significantly, declining to 0.31% due to the upgrade of a single relationship of approximately $7.0 million.

Capital

• TBVPS increased by $0.32, including a modestly negative AOCI impact.

• The bank's Tier 1 Leverage Ratio increased to 13.36%.

1 - Non-GAAP, excludes merger related accretion and amortization, as well as material non-recurring income and expense items.

2 - Non-interest expense as a percentage of average assets

3 - NPA is non-performing assets as a % of total assets, net of government guarantees.

ABOUT BANCORP 34, INC. - Bancorp 34 is the holding company for Southwest Heritage Bank. The bank's headquarters are located at 8777 East Hartford Drive, Suite 100, Scottsdale, Arizona 85255. In addition, we operate seven full-service community bank branches, two in Maricopa County, Arizona, in the cities of Scottsdale and Gilbert; three in Pima County, Arizona, in the cities of Tucson and Green Valley; one branch in Otero County, New Mexico in the city of Alamogordo; and one branch in Dona Ana County New Mexico, in the city of Las Cruces.

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. 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.

NON-GAAP FINANCIAL MEASURES- Some of the financial measures included in this release are not measures of financial performance recognized in accordance with generally accepted accounting principles in the United States ("GAAP"). These non-GAAP financial measures include: (i) core net income; (ii) core net interest margin; (iii) core ROAA; (iv) core ROAE (v) core ROATA; (vi) core ROATE; (vii) core NIE to average assets; and (viii) core efficiency ratio. We believe these non-GAAP financial measures provide investors and management with a more complete understanding of our financial position and performance. These non-GAAP financial measures are supplemental and are not a substitute for any analysis based on GAAP financial measures. Not all companies use the same calculation of these measures; therefore, this presentation may not be comparable to other similarly titled measures as presented by other companies. A reconciliation of our non-GAAP financial measures to the comparable GAAP financial measures is included at the end of the financial statement tables.

4 - Non-GAAP, excludes merger related accretion and amortization, as well as material non-recurring income and expense items.
5 - Non-GAAP, excludes merger related fair value mark accretion and amortization.
6 - Classified and non-performing assets are net of government guarantees
7 - Includes Loan ACL reverse provision
8 - Non-GAAP, Assumes 25% tax rate

Contact:
Kevin Vaughn
Chief Financial Officer
(623) 334-6064
[email protected]

SOURCE: Southwest Heritage Bank

View the original press release on ACCESS Newswire

L.Miller--AMWN