Company: BCTF
Filing Date: 2025-03-06
Form Type: 10-K
Source: 0001552781-25-000058
Chunk: 256

Company: Bancorp 34, Inc.
Filing Date: 2025-03-06
Form: 10-K
Item: Item 1A
Chunk 256
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 occurs after the period of time when the loan
is subject to a prepayment penalty, the effect of the acceleration of premium and deferred cost amortization is no longer mitigated.
We recognize premiums paid on mortgage-backed securities as an adjustment from interest income over the expected life of the security
based on the rate of repayment of the securities. Acceleration of prepayments on the loans underlying a mortgage-backed security shortens
the life of the investment security, increases the rate at which premiums are expensed and further reduces interest income. We may not
be able to reinvest loan and security prepayments at rates comparable to the prepaid instrument particularly in a period of declining
interest rates.

41

We
could experience a decline in operating results due to competition with other financial institutions.

We face substantial
competition in all areas of our operations from a variety of different competitors, both within and beyond our principal markets, many
of which are larger and may have more financial resources. Such competitors primarily include national, super-regional, and internet
banks within the various markets in which we operate. We also face competition from many other types of financial institutions, including,
without limitation, savings and loans, credit unions, finance companies, brokerage firms, insurance companies, and other financial intermediaries.
The financial services industry could become even more competitive as a result of legislative and regulatory changes and continued consolidation.
In addition, as customer preferences and expectations continue to evolve, technology has lowered barriers to entry and made it possible
for nonbanks to offer products and services traditionally provided by banks, such as automatic transfer and automatic payment systems.
Many of our competitors have fewer regulatory constraints and may have lower cost structures. Additionally, due to their size, many competitors
may be able to achieve economies of scale and, as a result, may offer a broader range of products and services as well as better pricing
for those products and services than we can.

Our ability to compete
successfully depends on a number of factors, including, among other things:

    ·
    our ability to develop, maintain,
    and build upon long-term customer relationships based on top quality service, high ethical standards, and safe and sound assets;

    ·
    our ability to expand our market position;

    ·
    the scope, relevance, and pricing of the products
    and services we offer to meet our customers’ needs and demands;

    ·
    the rate at which we introduce new products and
    services relative to our competitors;

    ·
    customer satisfaction with our level of