Bancorp 34, Inc., the parent company of Southwest Heritage Bank, has reported its financial results for the second quarter of 2025. The company achieved a net income of $2.3 million, a significant increase compared to $1.5 million in the same quarter of the previous year. The bank's net income was reported at $2.6 million. Diluted earnings per share rose to $0.32 from $0.21 a year ago. Net interest income for the quarter amounted to $8.1 million, a slight decrease from $8.98 million in the second quarter of 2024. Non-interest income increased to $292,000, up from $105,000 in the prior year. Non-interest expenses were reduced to $6.63 million from $7.28 million in the same period last year. The company noted improvements in its efficiency ratio, which decreased to 75.69% from 77.40% in the first quarter of 2025, though it was higher than 73.92% in the second quarter of 2024. The net interest margin was 3.80%, a decrease from 4.18% in the previous year. Bancorp 34, Inc. also reported total assets of $931.3 million, compared to $940 million in the second quarter of 2024. Total loans amounted to $676.4 million, down from $735.5 million the previous year, while total deposits increased to $795.1 million from $769.7 million a year earlier. Management highlighted a focus on reducing deposit pricing in line with market conditions and noted the addition of a new lender to enhance recruitment in the commercial and industrial sector. The company also reported $65.4 million in new loan commitments year-to-date, which were offset by early payoffs and normal portfolio amortization.