Company: BCTF
Filing Date: 2025-03-06
Form Type: 10-K
Source: 0001552781-25-000058
Chunk: 33

Company: Bancorp 34, Inc.
Filing Date: 2025-03-06
Form: 10-K
Item: Item 1
Chunk 33
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 of risk we pose to the FDIC’s DIF. The initial base
rate for deposit insurance is between three and 30 basis points. Total base assessment after possible adjustments now ranges between
1.5 and 40 basis points. For established smaller institutions, such as us, the total base assessment rate is calculated by using supervisory
ratings as well as (a) an initial base assessment rate, (b) an unsecured debt adjustment (which can be positive or negative), and (c)
a brokered deposit adjustment.

In addition to the ordinary
assessments described above, the FDIC has the ability to impose special assessments in certain instances. For example, under the Dodd-Frank
Act, the minimum designated reserve ratio for the DIF was increased to 1.35% of the estimated total amount of insured deposits. Extraordinary
growth in insured deposits during the first and second quarters of 2020 caused the DIF reserve ratio to decline below the statutory minimum
of 1.35%. In November 2023, following the closures of Silicon Valley Bank and Signature Bank and in connection with its systemic risk
determination announced on March 12, 2023, the FDIC announced a special deposit insurance assessment rate of 13.4 basis points beginning
in the first quarterly assessment period of 2024, adjusted to exclude the first $5 billion in deposits for an anticipated total of eight
quarterly assessment periods.

The FDIC may terminate
the deposit insurance of any insured depository institution if it determines after a notice and hearing that the institution has engaged
in unsafe or unsound practices, is in an unsafe or unsound condition to continue operations or has violated any applicable law, regulation,
rule, order or condition imposed by the FDIC.

27

 CRE
Guidance

In December 2015, the
federal banking regulators released a statement entitled “Interagency Statement on Prudent Risk Management for Commercial Real
Estate Lending” (the “CRE Guidance”). In the CRE Guidance, the federal banking regulators (a) expressed concerns
with institutions that ease CRE underwriting standards, (b) directed financial institutions to maintain underwriting discipline
and exercise risk management practices to identify, measure and monitor lending risks, and (c) indicated that they will continue
to pay special attention to CRE lending activities and concentrations.

Effect
of Governmental Monetary Policies 

Our earnings are affected
by domestic economic conditions and the monetary policies of the U.S