Company: BCTF
Filing Date: 2025-03-06
Form Type: 10-K
Source: 0001552781-25-000058
Chunk: 259

Company: Bancorp 34, Inc.
Filing Date: 2025-03-06
Form: 10-K
Item: Item 1A
Chunk 259
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 order to assess the probability of receiving all contractual principal and interest payments on the security. Because of changing
economic and market conditions affecting issuers, we may be required to recognize credit losses in future periods, which could have a
material adverse effect on our business, financial condition, or results of operations.

Our
deposit insurance premiums could be higher in the future, which could have an adverse effect on our future earnings.

The FDIC insures deposits
at FDIC-insured depository institutions, such as the Bank, up to $250,000 per depositor for each account ownership category. Our regular
assessments are based on average consolidated total assets minus average tangible equity as well as by risk classification, which includes
regulatory capital levels and the level of supervisory concern. In addition to ordinary assessments described above, the FDIC has the
ability to impose special assessments in certain instances.

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We are generally unable
to control the amount of premiums that we are required to pay for FDIC insurance. If there are additional bank or financial institution
failures, we may be required to pay higher FDIC premiums. For example, in response to March 2023 bank closures and in an effort to strengthen
public confidence in the banking system and protect depositors, regulators have announced that any losses to the Deposit Insurance Fund
to support uninsured depositors will be recovered by a special assessment on banks, as required by law, which could increase the cost
of our FDIC insurance assessments and affect our profitability. If our financial condition deteriorates or if the bank regulators otherwise
have supervisory concerns about us, then our assessments could rise. Any future additional assessments, increases or required prepayments
in FDIC insurance premiums could reduce our operating results, may limit our ability to pursue certain business opportunities, or otherwise
negatively impact our operations.

Capital
and Liquidity Risks

We
may be exposed to a need for additional capital resources in the future and these capital resources may not be available when needed
or at all.

We may need to incur
additional debt or equity financing in the future to make strategic acquisitions or investments or to strengthen our capital and liquidity.
Our ability to raise additional capital, if needed, will depend on, among other things, conditions in the capital markets at that time,
which are outside of our control and our financial performance. Accordingly, we cannot provide assurance that such financing will be
available to us on acceptable terms or at all. If we cannot raise additional capital when needed, our ability