Company: BCTF
Filing Date: 2025-03-06
Form Type: 10-K
Source: 0001552781-25-000058
Chunk: 71

Company: Bancorp 34, Inc.
Filing Date: 2025-03-06
Form: 10-K
Item: Item 1
Chunk 71
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 adversely affect us. In addition, were we to be subject to regulatory investigation or regulatory action regarding our loan
modification and foreclosure practices, our financial condition and results of operation could be adversely affected.

We
could be subject to changes in tax laws, regulations and interpretations or challenges to our income tax provision.

We compute our income
tax provision based on enacted tax rates in the jurisdictions in which we operate. Any change in enacted tax laws, rules or regulatory
or judicial interpretations, or any change in the pronouncements relating to accounting for income taxes could adversely affect our effective
tax rate, tax payments and results of operations. The taxing authorities in the jurisdictions in which we operate may challenge our tax
positions, which could increase our effective tax rate and harm our financial position and results of operations. We are subject to audit
and review by U.S. federal and state tax authorities. Any adverse outcome of such a review or audit could have a negative effect on our
financial position and results of operations. In addition, changes in enacted tax laws, such as adoption of a lower income tax rate in
any of the jurisdictions in which we operate, could impact our ability to obtain the future tax benefits represented by our deferred
tax assets. In addition, the determination of our provision for income taxes and other liabilities requires significant judgment by management.
Although we believe that our estimates are reasonable, the ultimate tax outcome may differ from the amounts recorded in our financial
statements and could have a material adverse effect on our financial results in the period or periods for which such determination is
made.

50

Risks
Related to Bancorp 34 Common Stock

Some
provisions of our organizational documents may have anti-takeover effects that could discourage an acquisition of us by others, even
if an acquisition would be beneficial to our stockholders.

Provisions in our certificate
of incorporation and bylaws, federal banking laws, as well as provisions of the Maryland General Corporate Law (“MGCL”),
could make it more difficult for a third party to acquire us or increase the cost of acquiring us, even if doing so would benefit our
stockholders, including transactions in which stockholders might otherwise receive a premium for their shares. These provisions include:

    ·
    establishing a classified board of
    directors such that not all members of the board are elected at one time; nominees for two of our director seats to be designated
    by Castle Creek, and Brush Creek under the Securities Purchase Agreement, so long as certain stock ownership thresholds are maintained;

    ·