Company: BCTF
Filing Date: 2025-03-06
Form Type: 10-K
Source: 0001552781-25-000058
Chunk: 64

Company: Bancorp 34, Inc.
Filing Date: 2025-03-06
Form: 10-K
Item: Item 1
Chunk 64
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 in these Risk Factors under
the caption Economic and Geographic-Related Risks.

Risks
Related to Strategic Plans

We
may be adversely affected by risks associated with future mergers and acquisitions, including execution risk, which could disrupt our
business and dilute stockholder value.

In accordance with our
strategic plan, we evaluate opportunities to acquire other banks and branch locations, as well as other fee generating lines of business.
As a result, we may engage in mergers, acquisitions and other transactions that could have a material effect on our operating results
and financial condition, including short and long-term liquidity.

Our merger and acquisition
activities, such as our merger with CBOA, could be material and could require us to issue a significant number of shares of our common
stock or other securities and/or to use a substantial amount of cash, other liquid assets, and/or incur debt.

Our merger and acquisition
activities, including our merger with CBOA, could involve a number of additional risks, including the risks of:

    ·
    the incurrence and possible impairment
    of goodwill and other intangible assets associated with an acquisition or merger and possible adverse short-term effects on our results
    of operations;

    ·
    the possibility that the expected benefits of
    a transaction may not materialize in the timeframe expected or at all, or may be costlier than expected to achieve;

    ·
    incurring the time and expense associated with
    identifying and evaluating potential merger or acquisition targets;

    ·
    diversion of our management’s attention
    to the negotiation of a transaction, and the integration of the operations and personnel of the combining businesses;

    ·
    our estimates and judgments used to evaluate credit,
    operations, management and market risks with respect to the acquired or merged company may not be accurate;

    ·
    potential exposure to unknown or contingent liabilities
    of the acquired or merged company;

    ·
    difficulty or unanticipated expense associated
    with converting the operating systems of the acquired or merged company into ours;

    ·
    the possibility that we will be unable to successfully
    implement integration strategies, due to challenges associated with integrating complex systems, technology, banking centers, and
    other assets of the acquired or merged company in a manner that minimizes any adverse effect on customers, suppliers, employees,
    and other constituencies;

    ·
    delay in completing a merger or acquisition due
    to litigation, closing conditions or the regulatory approval process;

    ·