Company: BCTF
Filing Date: 2025-03-06
Form Type: 10-K
Source: 0001552781-25-000058
Chunk: 67

Company: Bancorp 34, Inc.
Filing Date: 2025-03-06
Form: 10-K
Item: Item 1
Chunk 67
---
 for the benefit of our stockholders.
Congress and federal regulatory agencies continually review banking laws, regulations and policies for possible changes. The Dodd-Frank
Act, enacted in July 2010, instituted major changes to the banking and financial institutions regulatory regimes. The burden of regulatory
compliance has increased under the Dodd-Frank Act and has increased our costs of doing business and, as a result, may create an advantage
for our competitors who may not be subject to similar legislative and regulatory requirements. Regulations and laws may be modified at
any time, and new legislation may be enacted that will affect us or our subsidiaries.

Furthermore, our regulators
also have the ability to compel us to take certain actions, or restrict us from taking certain actions entirely, such as actions that
our regulators deem to constitute an unsafe or unsound banking practice. Our failure to comply with any applicable laws or regulations,
or regulatory policies and interpretations of such laws and regulations, could result in sanctions by regulatory agencies (such as a
memorandum of understanding, a written supervisory agreement or a cease and desist order), civil money penalties or damage to our reputation,
all of which could have a material adverse effect on our business, financial condition or results of operations.

Failure
to maintain certain regulatory capital levels and ratios could result in regulatory actions that would be materially adverse to our shareholders.

U.S. capital standards
are discussed under the section titled “Capital Resources”, as part of Item 7, Management’s Discussion and Analysis of Financial
Condition and Results of Operations of Bancorp 34. Pressures to maintain appropriate capital levels and address business needs in a changing
economy could result in certain mandatory and possible additional discretionary actions by regulators that, if undertaken, could be dilutive
or otherwise have an adverse effect on our shareholders. Such actions could include: reduction or elimination of dividends; the issuance
of common or preferred stock, or securities convertible into stock; or the issuance of any class of stock having rights that are adverse
to those of the holders of our existing classes of common or preferred stock. In addition, these requirements could have a negative impact
on our ability to lend, grow deposit balances, make acquisitions or make share repurchases or redemptions. Higher capital levels could
also lower our return on equity.

We
face a risk of noncompliance and enforcement action with the Bank Secrecy Act and other anti-money laundering statutes and regulations.

The federal Bank Secrecy
Act, the USA Patriot Act and other laws and