Company: BCTF
Filing Date: 2025-03-06
Form Type: 10-K
Source: 0001552781-25-000058
Chunk: 19

Company: Bancorp 34, Inc.
Filing Date: 2025-03-06
Form: 10-K
Item: Item 1
Chunk 19
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, which elected and was approved to be treated as a “covered savings association” (CSA) in January of
2023. A CSA has the same rights and privileges as a national bank that has its main office situated in the same location as the home
office of the CSA and is subject to the same duties, restrictions, penalties, liabilities, conditions, and limitations that would apply
to such a national bank. As such, the Bank’s activities are now subject to the same laws, regulations, and safety and soundness
expectations as a national bank located in the State of Arizona, including any appropriate enforcement action for failure to comply with
applicable laws and regulations. As a CSA, the Bank retained its federal savings association charter and must continue to comply with
the provisions of law applicable to federal savings associations for certain limited purposes enumerated in federal regulations, including
governance (e.g., incorporation, organization, charter, bylaws, board of directors, shareholders, mutual members, and dividends), consolidation,
merger, dissolution, conversion, conservatorship, receivership, and other purposes determined by OCC regulation.

As a covered federal
savings association, the Bank is subject to regulation and supervision primarily by the OCC and secondarily by the Federal Reserve, the
FDIC, and the CFPB. We are subject to requirements and restrictions under federal law, including requirements to maintain reserves against
deposits, restrictions on the types and amounts of loans that may be granted and the interest that may be charged thereon and limitations
on the types of investments that may be made and the types of services that may be offered. Various consumer laws and regulations also
affect the operations of the Bank. The OCC regularly examines the Bank’s operations and has the authority to approve or disapprove
mergers, the establishment of branches and similar corporate actions. The OCC also has the power to prevent the continuance or development
of unsafe or unsound banking practices or other violations of law. The Bank is also subject to numerous state and federal statutes and
regulations that affect its business, activities, and operations.

18

Capital
and Related Requirements

We are subject to comprehensive
capital adequacy requirements intended to protect against losses that we may incur. Regulatory capital rules, which we refer to as Basel
III, impose minimum capital requirements for bank holding companies and banks. The Basel III rules apply to all state and national banks
and savings and loan associations regardless of size and bank holding companies and savings and loan holding