Company: BCTF
Filing Date: 2025-03-06
Form Type: 10-K
Source: 0001552781-25-000058
Chunk: 22

Company: Bancorp 34, Inc.
Filing Date: 2025-03-06
Form: 10-K
Item: Item 1
Chunk 22
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qualifying community banking organizations” are eligible to opt into the “community
bank leverage ratio framework.” A qualifying community banking organization that elects to use the community bank leverage ratio
framework and that maintains a leverage ratio of greater than 9% is considered to have satisfied the generally applicable risk-based
and leverage capital requirements under the Basel III rules and, if applicable, is considered to have met the “well capitalized”
ratio requirements for purposes of its primary federal regulator’s prompt corrective action rules, discussed below. We do not have
any immediate plans to use the community bank leverage ratio framework but may make such an election in the future.

Prompt
Corrective Action 

As an insured depository
institution, we are required to comply with the capital requirements promulgated under the Federal Deposit Insurance Corporation Improvement
Act of 1991 (the “FDICIA”). The FDICIA requires each federal banking agency to take prompt corrective action (“PCA”)
to resolve the problems of insured depository institutions, including those that fall below one or more prescribed minimum capital ratios.
The law requires each federal banking agency to promulgate regulations defining the following five categories in which an insured depository
institution will be placed, based on the level of capital ratios: “well capitalized,” “adequately capitalized,”
“undercapitalized,” “significantly undercapitalized,” or “critically undercapitalized.” As
of December 31, 2024, we maintained capital ratios that exceeded the minimum ratios established for a “well capitalized”
institution.

The following is a
list of the criteria for each PCA capital category:

Well
Capitalized—The institution exceeds the required minimum level for each relevant capital
measure. A well-capitalized institution:

    ·
    has total risk-based capital ratio of 10% or greater;
    and

    ·
    has a Tier 1 risk-based capital ratio of 8% or
    greater; and

    ·
    has a common equity Tier 1 risk-based capital
    ratio of 6.5% or greater; and

    ·
    has a leverage capital ratio of 5% or greater;
    and

    ·
    is not subject to any order or written directive
    to meet and maintain a specific capital level for any capital measure.

20

Adequately
Capitalized—The institution meets the required minimum level for each relevant capital
measure. The institution may not make a capital distribution if it would result in the institution becoming under