Company: BCTF
Filing Date: 2025-03-06
Form Type: 10-K
Source: 0001552781-25-000058
Chunk: 32

Company: Bancorp 34, Inc.
Filing Date: 2025-03-06
Form: 10-K
Item: Item 1
Chunk 32
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 and narcotics traffickers. If a bank finds a name on any transaction,
account or wire transfer that is on an OFAC list, it must freeze or block the transactions on the account.

26

Financial
Privacy and Cybersecurity

Under privacy protection
provisions of the Gramm-Leach-Bliley Act of 1999, and related regulations, we are limited in our ability to disclose non-public information
about consumers to nonaffiliated third parties. These limitations require disclosure of privacy policies to consumers and, in some circumstances,
allow consumers to prevent disclosure of certain personal information to a nonaffiliated third-party. Federal banking agencies, including
the OCC, have adopted guidelines for establishing information security standards and cybersecurity programs for implementing safeguards
under the supervision of the board of directors. These guidelines, along with related regulatory materials, increasingly focus on risk
management and processes related to information technology and the use of third parties in the provision of financial services.

Consumers must be notified
in the event of a data breach under applicable federal and state laws. Under federal regulations, banking organizations are required
to notify their primary federal regulator as soon as possible and no later than 36 hours after the discovery of a “computer-security
incident” that rises to the level of a “notification incident” within the meaning attributed to those terms by the
federal regulation. Banks’ service providers are required under the federal regulation to notify any affected bank to or on behalf
of which the service provider provides services “as soon as possible” after determining that it has experienced an incident
that materially disrupts or degrades, or is reasonably likely to materially disrupt or degrade, covered services provided to such bank
for as much as four hours.

See Item 1A. Risk Factors
for a further discussion of risks related to cybersecurity and Item 1C. Cybersecurity for a further discussion of risk management strategies
and governance processes related to cybersecurity.

Deposit
Premiums and Assessments

The Bank’s deposits
are insured by the Deposit Insurance Fund (“DIF”) of the FDIC up to $250,000, the maximum amount permitted by law. The FDIC
uses the DIF to protect against the loss of insured deposits if an FDIC-insured bank or savings association fails. As an FDIC-insured
bank, we must pay deposit insurance assessments to the FDIC based on our average total assets minus our average tangible equity.

As an institution with
less than $10 billion in assets, our assessment rates are based on the level