NasdaqCM:BCTF

Stock Analysis Report

Executive Summary

Bancorp 34, Inc. operates as the holding company for Bank 34 that offers various banking services to individuals and businesses in the United States.


Snowflake Analysis

Excellent balance sheet with questionable track record.


Similar Companies

Share Price & News

How has Bancorp 34's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: BCTF has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.5%

BCTF

-3.7%

US Mortgage

-7.4%

US Market


1 Year Return

2.3%

BCTF

2.2%

US Mortgage

10.5%

US Market

Return vs Industry: BCTF matched the US Mortgage industry which returned 2.2% over the past year.

Return vs Market: BCTF underperformed the US Market which returned 10.5% over the past year.


Shareholder returns

BCTFIndustryMarket
7 Day-0.5%-3.7%-7.4%
30 Day0.4%-4.2%-3.6%
90 Day3.5%-7.4%-0.6%
1 Year3.3%2.3%4.7%2.2%12.8%10.5%
3 Year33.6%22.7%12.6%4.6%37.4%28.6%
5 Year14.8%5.4%51.3%34.5%61.3%43.6%

Price Volatility Vs. Market

How volatile is Bancorp 34's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Bancorp 34 undervalued compared to its fair value and its price relative to the market?

24.67x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: BCTF ($15.55) is trading above our estimate of fair value ($2.2)

Significantly Below Fair Value: BCTF is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: BCTF is poor value based on its PE Ratio (24.5x) compared to the Mortgage industry average (13.4x).

PE vs Market: BCTF is poor value based on its PE Ratio (24.5x) compared to the US market (17.2x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate BCTF's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: BCTF is good value based on its PB Ratio (1.1x) compared to the US Mortgage industry average (1.1x).


Next Steps

Future Growth

How is Bancorp 34 forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

6.3%

Forecasted Banks industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Bancorp 34 has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Bancorp 34 performed over the past 5 years?

11.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BCTF has high quality earnings.

Growing Profit Margin: BCTF's current net profit margins (12.9%) are lower than last year (13%).


Past Earnings Growth Analysis

Earnings Trend: BCTF's earnings have grown by 11.5% per year over the past 5 years.

Accelerating Growth: BCTF's earnings growth over the past year (5.6%) is below its 5-year average (11.5% per year).

Earnings vs Industry: BCTF earnings growth over the past year (5.6%) underperformed the Mortgage industry 10.7%.


Return on Equity

High ROE: BCTF's Return on Equity (4.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Bancorp 34's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: BCTF has a low level of unsold assets or inventory.

Debt Coverage by Assets: BCTF's debt is not covered by short term assets (assets are 0.8x debt).


Financial Institutions Analysis

Asset Level: BCTF's level of assets compared to its equity is low.

Allowance for Bad Loans: BCTF has a low allowance for bad loans.

Low Risk Liabilities: BCTF's liabilities are made up of primarily low risk sources of funding.

Loan Level: BCTF has an acceptable proportion of non-loan assets held.

Low Risk Deposits: BCTF's loans are broadly funded by customer deposits.

Level of Bad Loans: BCTF has an appropriate level of bad loans (1.19%)


Next Steps

Dividend

What is Bancorp 34's current dividend yield, its reliability and sustainability?

1.28%

Current Dividend Yield


Dividend Yield vs Market

company1.3%marketbottom25%1.5%markettop25%3.9%industryaverage3.0%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: BCTF's dividend (1.29%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.52%).

High Dividend: BCTF's dividend (1.29%) is low compared to the top 25% of dividend payers in the US market (3.9%).


Stability and Growth of Payments

Stable Dividend: BCTF's dividend payments have been volatile in the past 10 years.

Growing Dividend: BCTF's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (23.7%), BCTF's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

7.3yrs

Average board tenure


CEO

Jill Gutierrez (68yo)

8.6yrs

Tenure

US$312,639

Compensation

Ms. Jill Gutierrez has been the Chief Executive Officer of Bancorp 34, Inc. since July 2011 and its president since October 02, 2018. Ms. Gutierrez has been the Chief Executive Officer of Bank 34, a subsid ...


CEO Compensation Analysis

Compensation vs Market: Jill's total compensation ($USD312.64K) is below average for companies of similar size in the US market ($USD524.26K).

Compensation vs Earnings: Jill's compensation has been consistent with company performance over the past year.


Board Members

NamePositionTenureCompensationOwnership
Jill Gutierrez
President8.6yrsUS$312.64k2.07% $926.5k
Don Van Winkle
Independent Director6.7yrsUS$40.69k0.28% $123.6k
Randal Rabon
Independent Chairman of the Board7.3yrsUS$43.90k1.54% $692.3k
William Burt
Independent Vice Chairman of the Board10.3yrsUS$42.01k0.59% $264.6k
James Harris
Independent Director11.7yrsUS$42.08k0.74% $333.1k
Elaine Ralls
Independent Director5.5yrsUS$43.54k0.52% $233.0k
Wortham Cook
Independent Director4.9yrsUS$41.72k0.43% $194.5k

7.3yrs

Average Tenure

68yo

Average Age

Experienced Board: BCTF's board of directors are considered experienced (7.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Bancorp 34, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Bancorp 34, Inc.
  • Ticker: BCTF
  • Exchange: NasdaqCM
  • Founded: 2016
  • Industry: Thrifts and Mortgage Finance
  • Sector: Banks
  • Market Cap: US$44.858m
  • Shares outstanding: 2.87m
  • Website: https://www.bank34.com

Number of Employees


Location

  • Bancorp 34, Inc.
  • 500 East 10th Street
  • Alamogordo
  • New Mexico
  • 88310
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BCTFNasdaqCM (Nasdaq Capital Market)YesNew Common StockUSUSDMay 2000

Biography

Bancorp 34, Inc. operates as the holding company for Bank 34 that offers various banking services to individuals and businesses in the United States. It accepts various deposit products, such as savings accounts, checking accounts, money market accounts, demand deposits, NOW accounts, and certificates of deposit, as well as commercial checking accounts and related services, including online cash management. The company also provides commercial real estate, multi-family real estate, commercial and industrial, construction and land development, one- to four-family residential real estate, and consumer and other loans, as well as offers credit and debit cards. It operates four full-service banking centers, including one each in Otero and Dona Ana Counties, New Mexico; and two in Maricopa County, Arizona. Bancorp 34, Inc. was founded in 2016 and is headquartered in Alamogordo, New Mexico. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/27 01:31
End of Day Share Price2020/02/26 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.