Company: BCTF
Filing Date: 2025-03-06
Form Type: 10-K
Source: 0001552781-25-000058
Chunk: 2

Company: Bancorp 34, Inc.
Filing Date: 2025-03-06
Form: 10-K
Item: Item 1
Chunk 2
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 is no assurance this trend
will continue or that we will be able to retain key personnel or our customers. For example, if new competitors enter our markets, they
may seek to retain our key personnel and compete with us for our current customers. Risks associated with our dependence on key personnel
are discussed in the Risk Factors of this Annual Report on Form 10-K, see “Risk Factors—Operational Risks,” beginning
on page 37.

Attractive
core deposit franchise. Our deposit franchise is supported by substantial core deposits, which
we define as total deposits less certificates of deposit greater than $250,000, less repurchase obligations and brokered deposits. As
of December 31, 2024, core deposits totaled $701.3 million or 88.5% of total deposits, CDs over $250,000 totaled $83.2 million, or 10.5%
of total deposits, and brokered deposits totaled $8.1 million, or 1.0% of total deposits. There were no repurchase obligations at December
31, 2024. Within our core deposit base, noninterest bearing core deposits totaled $218.6 million, or 27.6% of total deposits. Additionally,
within the deposit base, $194.0 million, or 24.5% of total deposits, have balances in excess of the FDIC’s deposit insurance limit
and are estimated to be uninsured. Our core deposit base results from a focus on commercial and consumer banking opportunities in our
markets and opportunistic growth in commercial treasury management related accounts across our higher growth markets. We believe that
our core deposit generation is powered by our strong personal service, visibility in our markets, broad commercial banking, and convenient
services such as remote deposit capture and commercial internet banking. Although we have been successful in maintaining a high level
of core deposits, there is no assurance this success will continue and that our percentages of core deposits to total deposits will not
decrease as customer preferences for products and services change or, due to new technology or economic factors or due to customer preferences
to limit uninsured deposit exposure. Risks associated with our business are discussed in the Risk Factors of this Annual Report on Form
10-K, see “Risks Factors—Risks Related to Our Business,” beginning on page
29.

6

Our
Market Areas

At December 31, 2024,
the Bank operated seven branches located in two states, Arizona and New Mexico, which we refer to