Bancorp 34, Inc., the parent company of Southwest Heritage Bank, has released its first quarter 2025 financial results, showcasing a net income of $2.3 million, with the bank's net income reaching $2.6 million. The company's total assets saw an increase to $943.6 million from $918.1 million in the previous quarter, driven by a $22 million growth in deposits. Total loans experienced a modest growth of $0.5 million. Net interest income for the first quarter stood at $8.02 million, slightly down from $8.27 million in the previous quarter. Non-interest income decreased to $0.27 million from $0.35 million, while non-interest expenses improved significantly, decreasing by $1.6 million (19%) primarily due to reduced salary costs and one-time costs recognized in Q4. The company reported diluted earnings per share of $0.31. Tangible book value per share (TBVPS) increased by $0.52 during the quarter to $11.06, bolstered by a $1.20 increase post-merger. The company highlighted the successful completion of its merger with Commerce Bank of Arizona in March 2024, rebranding as Southwest Heritage Bank. The restructuring and de-risking of the legacy Bank 34 loan portfolio led to exiting $70.5 million in non-relationship, out-of-market, low-yielding loans during 2024, contributing to a 9.8% post-merger decline in total loans. Bancorp 34 maintained a reserve position with an ACL to total loans ratio of 1.50%. The company also reported an ACL recovery of $1.5 million from a commercial loan charged off in 2022. No specific outlook or guidance for future quarters was provided in the report.