Company: BCTF
Filing Date: 2025-03-06
Form Type: 10-K
Source: 0001552781-25-000058
Chunk: 36

Company: Bancorp 34, Inc.
Filing Date: 2025-03-06
Form: 10-K
Item: Item 1
Chunk 36
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 performance include short-term and long-term interest rates, the prevailing yield curve,
inflation, monetary supply, fluctuations in the debt and equity capital markets, and the strength of the domestic economy and the local
economies in the markets in which we operate. Unfavorable market conditions can result in a deterioration of the credit quality of borrowers,
an increase in the number of loan delinquencies, defaults and charge-offs, foreclosures, additional provisions for credit losses, adverse
asset values, a reduction in assets under management or administration, and an increase in our deposit and funding costs. A substantial
component of our loan portfolio is secured by real estate. A decline in real estate values can negatively impact our ability to recover
our investment should the borrower become delinquent. Loans secured by stock or other collateral may be adversely impacted by a downturn
in the economy and other factors that could reduce the recoverability of our investment. Unsecured loans are dependent on the solvency
of the borrower, which can deteriorate, leaving us with a risk of loss. Unfavorable or uncertain economic and market conditions can be
caused by declines in economic growth, business activity or investor or business confidence, limitations on the availability of or increases
in the cost of credit and capital, increases in inflation or interest rates, high unemployment, natural disasters, epidemics and pandemics
(such as COVID-19), state or local government insolvency, or a combination of these or other factors.

29

More specifically, the
market conditions in the markets in which we have a presence may be different from, and could be worse than, the economic conditions
in the United States as a whole. While the Federal Reserve recently began lowering interest rates, if inflation persists or if circumstances
otherwise dictate the Federal Reserve could be required to begin increasing interest rates again. Increases in interest rates in the
past have led to recessions of various lengths and intensities and might lead to such a recession in the near future. Such a recession
or any other adverse changes in business and economic conditions generally or specifically in the markets in which we operate could affect
our business, including causing one or more of the following negative developments:

    ·
    an increase in our deposit and funding costs;

    ·
    a decrease in the demand for loans and other products
    and services we offer;

    ·
    a decrease in our deposit account balances as
    customers move funds to seek to obtain maximum federal deposit insurance coverage or to seek higher interest