Company: BCTF
Filing Date: 2025-03-06
Form Type: 10-K
Source: 0001552781-25-000058
Chunk: 625

Company: Bancorp 34, Inc.
Filing Date: 2025-03-06
Form: 10-K
Item: Item 1C
Chunk 625
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 us to meet all reasonably foreseeable
short-term, long-term, and strategic liquidity demands. Our Asset and Liability Management Committee, or ALCO, is responsible for oversight
of our liquidity risk management activities in accordance with the provisions of our ALM Policy and applicable bank regulatory capital
and liquidity laws and regulations. Our liquidity risk management process includes (i) ongoing analysis and monitoring of our funding
requirements under various economic and interest rate scenarios, (ii) review and monitoring of lenders, depositors, brokers and other
liability holders to ensure appropriate diversification of funding sources, and (iii) liquidity contingency planning to address liquidity
needs in the event of unforeseen market disruption, including appropriate allocation of funds to a liquid portfolio of marketable securities
and investments. We continuously monitor our liquidity position in order for our assets and liabilities to be managed in a manner that
we believe will meet our immediate and long-term funding requirements. We seek to manage our liquidity position to meet the daily cash
flow needs of customers, while maintaining an appropriate balance between assets and liabilities to meet the return-on-investment objectives
of our stockholders. We also monitor our liquidity requirements in light of interest rate trends, changes in the economy, and the scheduled
maturity and interest rate sensitivity of our securities, loan portfolios and deposits. Liquidity management is made more complicated
because different balance sheet components are subject to varying degrees of management control. For example, the timing of maturities
of our investment portfolio is fairly predictable and subject to a high degree of control when we make investment decisions.

Our liquidity
position is supported by management of our liquid assets and liabilities and access to alternative sources of funds. Our short-term and
long-term liquidity requirements are primarily to fund on-going operations, including payment of interest on deposits and debt, extensions
of credit to borrowers and capital expenditures. These liquidity requirements are met primarily through our deposits, FHLB advances,
subordinated debt and the principal and interest payments we receive on loans and investment securities. Cash, interest-bearing deposits
in third party banks, securities available-for-sale and maturing or prepaying balances in our investment and loan portfolios are our
most liquid assets. Other sources of liquidity that are available to us include the sale of loans we hold for investment, the ability
to acquire additional national market non-core deposits, borrowings through the Federal Reserve’s discount window and the issuance
of additional debt.

At December 31, 2024,
Southwest Heritage Bank’s cash and cash equivalents were $