Company: BCTF
Filing Date: 2025-03-06
Form Type: 10-K
Source: 0001552781-25-000058
Chunk: 18

Company: Bancorp 34, Inc.
Filing Date: 2025-03-06
Form: 10-K
Item: Item 1
Chunk 18
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 banks and bank holding
companies. In addition, under the Basel III rules, financial institutions that seek to pay dividends must maintain the 2.5% capital conservation
buffer. See “Bank Regulation—Capital and Related Requirements” below.

17

Stock
Buybacks and Other Capital Redemptions

Under
Federal Reserve policies and regulations, bank holding companies must seek regulatory approval prior to any redemption that would reduce
the bank holding company’s consolidated net worth by 10% or more, prior to the redemption of most instruments included in Tier
1 or Tier 2 capital with features permitting redemption at the option of the issuing bank holding company, or prior to the redemption
of equity or other capital instruments included in Tier 1 or Tier 2 capital prior to stated maturity, if such redemption could have a
material effect on the level or composition of the organization’s capital base. Bank holding companies are also expected to both
inform the Federal Reserve reasonably in advance of a redemption or repurchase of common stock if such buyback results in a net reduction
of the company’s outstanding amount of common stock below the amount outstanding at the beginning of the fiscal quarter, and to
consult with the Federal Reserve generally prior to engaging in stock buybacks.

Sarbanes-Oxley
Act of 2002

The Sarbanes-Oxley Act
of 2002, which we refer to as “Sarbanes-Oxley,” implemented a broad range of corporate governance, accounting and reporting
measures for companies, that have securities registered under the Exchange Act. Bancorp 34 became subject to Sarbanes-Oxley on November
13, 2023. Sarbanes-Oxley and the various regulations promulgated under Sarbanes-Oxley, established, among other things: (a) requirements
for audit committees, including independence, expertise, and responsibilities; (b) additional responsibilities relating to financial
statements for the Chief Executive Officer and Chief Financial Officer of reporting companies; (c) standards for auditors and regulation
of audits, including independence provisions that restrict non-audit services that accountants may provide to their audit clients; (d)
increased disclosure and reporting obligations for reporting companies and their directors and executive officers, including accelerated
reporting of stock transactions and a prohibition on trading during blackout periods; and (e) a range of civil and criminal penalties
for fraud and other violations of the securities laws.

Bank
Regulation

The Bank is a federal
savings association