Company: BCTF
Filing Date: 2025-03-06
Form Type: 10-K
Source: 0001552781-25-000058
Chunk: 13

Company: Bancorp 34, Inc.
Filing Date: 2025-03-06
Form: 10-K
Item: Item 1
Chunk 13
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 ·
    performing selected data processing services and
    support services;

    ·
    acting as agent or broker in selling credit life
    insurance and other types of insurance in connection with credit transactions; and

    ·
    performing selected insurance underwriting activities.

The Federal Reserve
has the authority to order a bank holding company or its subsidiaries to terminate any of these activities or to terminate its ownership
or control of any subsidiary when it has reasonable cause to believe that the bank holding company’s continued ownership, activity
or control constitutes a serious risk to the financial safety, soundness or stability of it or any of its bank subsidiaries.

14

Financial
Holding Company

A bank holding company
can elect to be treated as a “financial holding company,” which would allow it to engage in a broader array of activities.
In summary, a financial holding company can engage in activities that are financial in nature or incidental or complementary to financial
activities, including insurance underwriting, sales and brokerage activities, providing financial and investment advisory services, underwriting
services and limited merchant banking activities.

Bancorp 34 has not elected
to be treated as a financial holding company.

Expansion
Activities

The BHC Act requires
a bank holding company to obtain the prior approval of the Federal Reserve before merging with another bank holding company, acquiring
substantially all the assets of any bank or bank holding company, or acquiring directly or indirectly any ownership or control of more
than 5% of the voting shares of any bank. A bank holding company is also prohibited from acquiring direct or indirect ownership or control
of more than 5% of the voting shares of any company engaged in nonbanking activities, other than those determined by the Federal Reserve
to be so closely related to banking as to be a proper incident to the business of banking. In addition, the prior approval of the OCC
is required for a federal savings association to merge with another bank or purchase the assets or assume the deposits of another bank.
In determining whether to approve a proposed bank acquisition, federal bank regulators will consider, among other factors, the effect
of the acquisition on competition, the public benefits expected to be received from the acquisition, the projected capital ratios and
levels on a post-acquisition basis, and the acquiring institution’s record of addressing the credit needs of the communities it
serves, including the needs of low and moderate income neighborhoods, consistent with the safe and sound operation of the bank, under
the Community Reinvestment Act (discussed below).