Company: BCTF
Filing Date: 2025-03-06
Form Type: 10-K
Source: 0001552781-25-000058
Chunk: 8

Company: Bancorp 34, Inc.
Filing Date: 2025-03-06
Form: 10-K
Item: Item 1
Chunk 8
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Products

We obtain most of our
deposits from small and medium-sized businesses and individuals in our markets. We solicit deposits through our relationship-driven team
of dedicated and accessible bankers and through community-focused marketing. We emphasize obtaining deposit relationships at loan origination.
We provide a high level of customer service to our depositors. We have invested in personnel, business and compliance processes and technology
that enable us to acquire, and efficiently and effectively serve, a wide array of business deposit accounts, while continuing to provide
the level of customer service for which we are known. We currently offer a comprehensive range of business deposit products and services
to assist with the banking needs of our business customers, including a variety of remote deposit and cash management products along
with commercial transaction accounts.

Credit
Administration and Loan Review

Certain credit risks
are inherent in making loans. These include repayment risks, risks resulting from uncertainties in the future value of collateral, risks
resulting from changes in economic and industry conditions and risks inherent in dealing with individual borrowers. We seek to control
credit risk both through disciplined underwriting of each transaction, as well as active credit management processes and procedures to
manage risk and minimize loss throughout the life of a loan. We seek to maintain a broadly diversified loan portfolio in terms of type
of customer, type of loan product, geographic area and industries in which our business customers are engaged. We have developed tailored
underwriting criteria and credit management processes for each of the various loan product types we offer our customers.

Underwriting.
In evaluating each potential loan relationship, we adhere to a disciplined underwriting evaluation
process that includes the following:

    ·
    understanding the customer’s
    financial condition and ability to repay the loan;

    ·
    verifying that the primary and secondary sources
    of repayment are adequate in relation to the amount and structure of the loan;

    ·
    observing appropriate loan-to-value guidelines
    for collateral secured loans; and

    ·
    maintaining loan, lien, and collateral documentation.

10

Loan
Approval Authority. Our lending activities follow written, non-discriminatory, underwriting
standards and loan origination procedures established by our board of directors and management. We have established several levels of
lending authority that have been delegated by the board of directors to our Chief Executive Officer, Chief Credit Officer and other personnel
in accordance with our loan policy. Approval authority limits are based on the total exposure of the borrower and are conditioned on
the loan conforming to the policies