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

Company: Bancorp 34, Inc.
Filing Date: 2025-03-06
Form: 10-K
Item: Item 1
Chunk 25
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 take compliance with such laws and CRA
into account when regulating and supervising other activities of the bank, including in acting on expansionary proposals.

On October 24, 2023,
the federal banking agencies issued a final rule to amend and modernize the regulations implementing the CRA (the “CRA Final Rule”).
The rule significantly expands the number of areas in which a bank is evaluated, materially changes the tests used to evaluate the bank
in those areas and expands the data a bank must collect and report. The final rule took effect April 1, 2024, however, effective on April
1, 2024, a Federal district court judge in the Northern District of Texas enjoined the federal banking agencies from enforcing the CRA
Final Rule pending resolution of the underlying lawsuit. The Bank is monitoring this case for key developments. If the CRA Final Rule
is finalized and becomes effective, we expect the rule will increase the Bank’s obligations and compliance costs necessary to achieve
a “Satisfactory” or “Outstanding” rating under the CRA.

Fair
Lending Requirements

We
are subject to certain fair lending requirements and reporting obligations involving lending operations. A number of laws and regulations
provide these fair lending requirements and reporting obligations, including, at the federal level, the Equal Credit Opportunity Act,
or the “ECOA,” as amended by the Dodd-Frank Act, and Regulation B, as well as the Fair Housing Act, or the “FHA,”
and regulations implementing the FHA. ECOA and Regulation B prohibit discrimination in any aspect of a credit transaction based on a
number of prohibited factors, including race or color, religion, national origin, sex, marital status, age, the applicant’s receipt
of income derived from public assistance programs, and the applicant’s exercise, in good faith, of any right under the Consumer
Credit Protection Act. ECOA and Regulation B include lending acts and practices that are specifically prohibited, permitted, or required,
and these laws and regulations proscribe data collection requirements, legal action statute of limitations, and disclosure of the consumer’s
ability to receive a copy of any appraisal(s) and valuation(s) prepared in connection with certain loans secured by dwellings. FHA prohibits
discrimination in all aspects of residential real-estate related transactions based on prohibited factors, including race or color, national
origin, religion, sex, familial status, and handicap.

22

In
addition to prohibiting discrimination in credit transactions on the basis of prohibited factors, these laws