Company: BCTF
Filing Date: 2025-03-06
Form Type: 10-K
Source: 0001552781-25-000058
Chunk: 255

Company: Bancorp 34, Inc.
Filing Date: 2025-03-06
Form: 10-K
Item: Item 1A
Chunk 255
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of locating key personnel with the combination of skills and attributes required to execute our business strategy may be lengthy. We
may not be successful in retaining key personnel, and the unexpected loss of services of one or more of our key personnel could have
a material adverse effect on our business because of their skill, knowledge of our primary markets, years of industry experience and
the difficulty of promptly finding qualified replacement personnel. If the services of any of our key personnel should become unavailable
for any reason, we may not be able to identify and hire qualified persons on terms acceptable us, or at all, which could have a material
adverse effect on our business, financial condition, results of operation and future prospects.

Failure
to keep pace with technological change could adversely affect our business.

The financial services
industry is continually undergoing rapid technological change with frequent introductions of new technology-driven products and services.
The effective use of technology increases efficiency and enables financial institutions to better serve customers and to reduce costs.
Our future success will depend, in part, upon our ability to address the needs of our customers by using technology to provide products
and services that will satisfy customer demands, as well as to create additional efficiencies in our operations. Many of our competitors
have substantially greater resources to invest in technological improvements. We may not be able to effectively implement new technology-driven
products and services or be successful in marketing these products and services to our customers. Failure to successfully keep pace with
technological change affecting the financial services industry could have a material adverse impact on our business, financial condition
and results of operations.

Industry-Related
Risks

We
are exposed to the possibility that more prepayments may be made by customers to pay down loan balances, which could reduce our interest
income and negatively impact our operating results.

Prepayment rates stem
from consumer behavior, conditions in the housing and financial markets, general U.S. economic conditions, and the relative interest
rates on fixed-rate and adjustable-rate loans. Therefore, changes in prepayment rates are difficult to predict. Recognition of deferred
loan origination costs and premiums paid in originating these loans are normally recognized over the contractual life of each loan. As
prepayments occur, the rate at which net deferred loan origination costs and premiums are expensed will accelerate. The effect of the
acceleration of deferred costs and premium amortization may be mitigated by prepayment penalties paid by the borrower when the loan is
paid in full within a certain period of time, which varies between loans. If prepayment