Company: BCTF
Filing Date: 2025-03-06
Form Type: 10-K
Source: 0001552781-25-000058
Chunk: 263

Company: Bancorp 34, Inc.
Filing Date: 2025-03-06
Form: 10-K
Item: Item 1A
Chunk 263
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 to attract and maintain clients. We are unsure whether or not deposit levels will rise appreciably
in 2025. In addition, recent economic events have highlighted the current market volatility related to deposits, and regulators are taking
action to strengthen public confidence in the banking system and protect depositors. We are unable to predict how current economic conditions
might affect our deposits and whether these regulatory actions will be successful.

45

Deposit
levels may be affected, fairly quickly, by changes in monetary policy.

The Federal Reserve
continues to signal its concerns with respect to inflation. Interest rates remained constant in the second half of 2023 with interest
rate decreases occurring in late 2024. Additional information concerning monetary policy changes appears in these Risk Factors under
the caption Economic and Geographic-Related Risks.

Risks
Related to Strategic Plans

We
may be adversely affected by risks associated with future mergers and acquisitions, including execution risk, which could disrupt our
business and dilute stockholder value.

In accordance with our
strategic plan, we evaluate opportunities to acquire other banks and branch locations, as well as other fee generating lines of business.
As a result, we may engage in mergers, acquisitions and other transactions that could have a material effect on our operating results
and financial condition, including short and long-term liquidity.

Our merger and acquisition
activities, such as our merger with CBOA, could be material and could require us to issue a significant number of shares of our common
stock or other securities and/or to use a substantial amount of cash, other liquid assets, and/or incur debt.

Our merger and acquisition
activities, including our merger with CBOA, could involve a number of additional risks, including the risks of:

    ·
    the incurrence and possible impairment
    of goodwill and other intangible assets associated with an acquisition or merger and possible adverse short-term effects on our results
    of operations;

    ·
    the possibility that the expected benefits of
    a transaction may not materialize in the timeframe expected or at all, or may be costlier than expected to achieve;

    ·
    incurring the time and expense associated with
    identifying and evaluating potential merger or acquisition targets;

    ·
    diversion of our management’s attention
    to the negotiation of a transaction, and the integration of the operations and personnel of the combining businesses;

    ·
    our estimates and judgments used to evaluate credit,
    operations, management and market risks with respect to the acquired