Bank 34

What Bank 34 does

Bank 34 is the operating brand of Bancorp 34, Inc., a publicly traded Maryland-chartered bank holding company (OTCMKTS:BCTF) that conducts community banking through its wholly-owned subsidiary Southwest Heritage Bank. The company operates a regional, Arizona-focused branch network complemented by mobile and online banking channels, serving individual consumers, small and mid-size businesses, and non-profit organizations. Its product set spans personal and business deposit products (checking, savings, money market, CDs), consumer and commercial loan products (SBA loans, commercial real estate, equipment loans, business lines of credit, term loans, home mortgages, credit cards), and treasury management services (ACH, wire, remote deposit capture, business electronic banking).

The bank's technology layer is built on standard third-party financial infrastructure rather than proprietary systems: FIS/Fiserv powers merchant remote capture and digital banking login, Kasasa enables reward-based checking products, and CDARS/Insured Cash Sweep extends FDIC insurance coverage across the network. Internal capabilities center on local relationship-based credit underwriting and SBA loan origination, supported by a Tier 1 leverage ratio of 13.16% and tangible book value per share of $12.56 as of Q1 2026.

Revenue is generated primarily through net interest income from the spread on loans and deposits — Q1 2026 revenue of $8.06 million was produced at a 3.86% net interest margin — supplemented by non-interest fee income from accounts, wires, and merchant services. Non-interest expenses of $6.37 million in Q1 2026 reflect a 6.2% year-over-year reduction. The company has historically augmented its capital base through SEC Form D exempt offerings, raising approximately $25 million in 2021 and $14 million in 2023, and it is preparing for a leadership transition in August 2026 with Paul Tees succeeding Chris Webster as President.

Name

Bank 34

Legal name

Bancorp 34, Inc.

Website

https://bank34.com

Company type

Public

Founded year

1934

Operating status

Operating

Headcount range

51–100 employees

Short description

Bank 34 (Bancorp 34, Inc., OTCMKTS:BCTF) is an Arizona-focused community bank operating as Southwest Heritage Bank, serving consumers, small/mid-size businesses, and non-profits with deposit products, SBA and commercial loans, and treasury management via branches and digital channels.

Ownership category

akta.pro rank

Product category

Community Banking

NAICS

Commercial Banking (52211), Depository Credit Intermediation (5221)

SIC

State Commercial Banks (6022)

akta.pro primary industry

Retail Lending (Personal Loans, Auto, Credit Lines) (FSABAAAB)

akta.pro secondary industry

SBA/Government-Backed & Development Finance Loans (FSAKAGAI)

Keywords

• Community banking
• Personal banking
• Commercial lending
• SBA loans
• Treasury management

Headquarters

HQ city

Alamogordo

HQ country

United States

HQ region

North America

Offices2 records

Markets served

GTM type

B2B and B2C

Offering type

Services

Cost components

Personnel, Operations, Technology or R&D

Revenue model

1. Net Interest Income: Traditional banking revenue primarily from the spread between interest earned on loans (mortgages, commercial real estate, SBA loans, business loans, personal loans) and interest paid on deposits (checking, savings, CDs, money market accounts). The bank reported Q1 2026 revenue of $8.06 million with a net interest margin of 3.86%.
2. Non-Interest Income: Fee-based income from banking services including account fees, wire transfer fees, merchant services, and other banking service charges. Non-interest expenses were reported at $6.37 million for Q1 2026.
3. SBA Loan Program Revenue: Revenue generated from Small Business Administration loans including origination fees and ongoing interest income from government-guaranteed loan products

Pricing tiers

Go-to-market motion2 records

Distribution channels4 records

Marketing channels5 records

Core offering

Bank 34 (operating as Southwest Heritage Bank) is an Arizona-based community bank offering a full suite of personal and business banking products. Core offerings include checking, savings, money market accounts, certificates of deposit (CDs), SBA loans, commercial real estate loans, equipment loans, lines of credit, home mortgages, and credit cards, complemented by digital banking channels (mobile and online), remote deposit capture, ACH, and wire services.

Product overview

Southwest Heritage Bank, the banking subsidiary of Bancorp 34, Inc., operates as a community bank offering a unified suite of traditional banking products. The portfolio consists of personal banking products (checking, savings, CDs, money market accounts, home mortgages, and credit cards), business banking products (checking, savings, CDs, money market accounts, and treasury management services), and loan products (SBA loans, commercial real estate loans, equipment loans, term loans, lines of credit, and home mortgages). Digital banking services including mobile banking, online banking, ACH, wire services, and remote deposit capture complement the core product lineup. The bank also offers specialized services through third-party integrations including CDARS and Insured Cash Sweep for deposit insurance coverage and Kasasa-branded reward checking accounts.

Differentiator

Problem solved

Functional benefit

Products and services

• Simple Checking Basic personal checking account with straightforward features for everyday banking needs, targeted at individual consumers.
• Reserve Checking Personal checking account with overdraft protection features for individual consumers.
• Kasasa CashReward Checking Personal reward checking account with cash rewards including a linked saver account option for individual consumers.
• Kasasa CashBack Checking Personal checking account offering cash back on qualified debit card purchases, targeted at individual consumers.
• Premium Money Market Interest-bearing money market account with competitive rates and limited check-writing capabilities for individual consumers.
• PremiumPlus Money Market Higher-tier personal money market account with enhanced interest rates and features for individual savers.
• Simple Savings Basic personal savings account for accumulating funds, targeted at individual consumers.
• Personal Certificates of Deposit (CDs) Fixed-term savings products with guaranteed returns and competitive rates for individual consumers.
• Small Business Checking Business checking account designed for small businesses with straightforward features and low costs.
• Analysis Checking Business checking account with detailed activity reporting for businesses with higher transaction volumes.
• Interest Checking Business checking account that earns interest on balances for business customers.
• Simple Non-Profit Checking Checking account designed for small non-profit organizations.
• 501c Non-Profit Checking Checking account tailored for registered 501c non-profit organizations.
• PremiumPlus Business Money Market Higher-tier business money market account with enhanced features and rates for business customers.
• Business Savings Basic savings account for business use by commercial customers.
• Business Certificate of Deposit (CDs) Fixed-term business savings products with guaranteed returns for business customers.
• Interest on Lawyers Trust Account (IOLTA) Specialized IOLTA account for lawyers to hold client funds in trust, complying with state bar requirements.
• SBA Loans Small Business Administration-backed loans with government guarantees offering flexible terms and low down payments for small business borrowers.
• Business Lines of Credit Revolving credit facilities for businesses to manage cash flow and unexpected expenses.
• Business Term Loans Fixed-term loans for business expansion, equipment purchases, and other long-term investments.
• Equipment Loans Loans specifically designed for purchasing business equipment, machinery, or vehicles.
• Commercial Real Estate Loans Loans for acquiring, developing, or refinancing commercial properties including construction loans.
• Home Mortgage Loans Residential mortgage loans for purchasing or refinancing homes, held under NMLS# 402600.
• Credit Cards Business and personal credit card products offered to consumer and commercial customers.
• Treasury Management Comprehensive cash management and treasury solutions for businesses, including business electronic banking, remote deposit capture, ACH, and wire services.
• Business Electronic Banking Online banking platform for business customers to manage accounts, initiate transactions, and view account activity.
• Remote Deposit Capture Service allowing businesses to deposit checks remotely using a scanner or mobile device, powered by FIS Global merchant remote capture.
• ACH Services Automated Clearing House services for electronic fund transfers and direct deposits for business customers.
• Wire Services Domestic and international wire transfer services for businesses.
• Mobile Banking Mobile banking application enabling customers to access accounts, transfer funds, and manage banking services via smartphones and tablets.
• CDARS & Insured Cash Sweep Accounts Multi-bank deposit services providing FDIC insurance coverage beyond standard limits via the CDARS and Insured Cash Sweep networks.

Quantifiable outcome

• Net interest margin improvement of 21 basis points to 3.86%
• +2 more outcomes

Named customers3 records

Segments3 records

Ideal customer profiles3 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Integration4 records

Feature4 records

Partnerships

One partnership is on record.

• Bauer FinancialminorOthersBauer Financial is a bank rating agency that provides independent financial ratings and analysis for banks. Southwest Heritage Bank maintains a Bauer Financial rating page on their website.

Scale indicators11 records

Recent moves6 records

Expansion highlights4 records

Direct peers

• Live Oak Bancshares: Live Oak Bancshares is a publicly traded bank holding company widely recognized as a national leader in SBA lending, making it the closest functional peer given Bank 34's SBA specialization.
• Glacier Bancorp: Glacier Bancorp is a community-banking-focused bank holding company operating in the Western U.S. with a similar community banking and SBA-adjacent lending mix.
• CVB Financial Corp. CVB Financial operates Citizens Business Bank, a California-based community commercial bank focused on small/mid-size business banking with comparable deposit and lending product mix.
• First Foundation Inc. First Foundation is a community-oriented financial services company serving consumers and small/mid-size businesses in the Western U.S., comparable in scale and product breadth.
• Independent Bank Group: Independent Bank Group operates community banks in Texas and Colorado with a similar small-to-mid-size business banking, CRE, and SBA lending focus.
• Heritage Commerce Corp. Heritage Commerce is a California community bank holding company serving small/mid-size businesses with comparable CRE and SBA loan origination profiles.
• Pacific Premier Bancorp: Pacific Premier is a Western U.S. community-oriented bank holding company with similar small business, CRE, and SBA lending franchise mix.
• Westamerica Bancorporation: Westamerica Bancorporation operates community banks in Northern and Central California with a comparable community-banking business model focused on deposits, commercial lending, and fee income.

Broad incumbents

• Simmons First National Corp. Simmons First is a regional bank holding company with community-banking operations and meaningful SBA/government-guaranteed lending exposure across multiple states.
• Old National Bancorp: Old National Bancorp is a larger regional bank offering community banking products similar to Bank 34, providing scale comparison for revenue, NIM, and operating leverage benchmarks.

Market position

Strengths4 records

Weaknesses5 records

Competitive moat4 records

Key risks6 records

Key highlights6 records

Customer concentration

• LinkedInlinkedin.com/company/southwest-heritage-bank/?viewAsMember=true
• Instagraminstagram.com/southwestheritagebank

Compliance1 record

Revenue estimate

Valuation estimate

Number of profiles

Profiles4 records

Subsidiaries2 records

Funding overview

Funding rounds2 records

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Bank 34