Company: BCTF
Filing Date: 2025-03-06
Form Type: 10-K
Source: 0001552781-25-000058
Chunk: 35

Company: Bancorp 34, Inc.
Filing Date: 2025-03-06
Form: 10-K
Item: Item 1
Chunk 35
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 may
face, and an investor in our securities should not interpret the disclosure of a risk in the following risk factors to state or imply
that the risk has not already materialized.

28

General
Risk Factors

Our
historical operating results may not be indicative of our future operating results.

We may not be able to
grow our banking businesses and our historical results of operations will not necessarily be indicative of our future operations. Various
factors, such as economic conditions, regulatory and legislative considerations, and competition, may also impede our ability to expand
our market presence. If we experience a significant decrease in our banking businesses, our results of operations and financial condition
may be adversely affected because a high percentage of our operating costs are fixed expenses.

There are risks, many
beyond our control, which could cause our results to differ significantly from management’s expectations. Some of these risk factors
are described below. Any factor described in this report could, by itself or together with one or more other factors, adversely affect
our business, results of operations and/or financial condition. Additional risks and uncertainties not currently known to us or that
we currently consider to not be material also may materially and adversely affect us. In assessing these risks, you should also refer
to other information disclosed in our SEC filings, including the financial statements and notes thereto.

Risks
Related to Our Business

Economic
and Geographic-Related Risks

Our
business may be adversely affected by economic conditions. Generally, in periods of economic downturns, including periods of rising interest
rates and recessions, our realized credit losses increase, our deposit and funding costs increase, demand for our products and services
declines, and the credit quality of our loan portfolio declines.

Our financial performance
generally, and in particular, the ability of borrowers to pay interest on and repay the principal of outstanding loans and the value
of collateral securing those loans, as well as demand for loans and other products and services we offer and whose success we rely on
is highly dependent upon the business environment in the primary markets where we operate and in the United States as a whole. Unlike
larger financial institutions that are more geographically diversified, we are a community bank that provides banking and financial services
to customers primarily in Arizona and New Mexico. The economic conditions in these markets may be different from, and in some instances
worse than, the economic conditions in the United States as a whole.

Some elements of the
business environment that affect our financial