Company: BCTF
Filing Date: 2025-03-06
Form Type: 10-K
Source: 0001552781-25-000058
Chunk: 536

Company: Bancorp 34, Inc.
Filing Date: 2025-03-06
Form: 10-K
Item: Item 1B
Chunk 536
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 Bank’s
financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet
specific capital guidelines involving quantitative measures of the Bank’s assets, liabilities, and certain off-balance-sheet items
as calculated under regulatory accounting practices. The Bank’s capital amounts, and classification are also subject to qualitative
judgments by the regulators about components, risk-weightings, and other factors.

Quantitative measures established by regulation
to ensure capital adequacy require the Bank to maintain minimum amounts and ratios of total risk-based capital and Tier 1 capital to
risk-weighted assets, and Tier 1 capital to adjusted total assets. Management believes, as of December 31, 2024, and 2023, the Bank meets
all capital adequacy requirements to which it is subject.

Banks are also subject to certain restrictions
on the dollar amount of dividends that they may declare without prior regulatory approval.

As of December 31, 2024, the Bank was categorized
as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, the Bank has
to maintain minimum total risk-based, Tier 1 risk-based, and Tier 1 leverage ratios as disclosed in the table below. There are no conditions
or events that management believes have changed the Bank’s prompt corrective action category. The Bank has not opted into the Community
Bank Leverage Ratio (“CBLR”) and therefore is required to continue calculating and reporting risk-based capital ratios.

The Bank’s actual and required capital
amounts and ratios are as follows (dollars in thousands):

Schedule of actual capital amounts and ratios as well as minimum amounts for each regulatory defined category for the bank and the company

    Actual  
    Minimum Required For Capital Adequacy Purposes  
    Minimum Required To Be Well Capitalized Under Prompt Corrective Action Regulations 

    Amount  
    Ratio  
    Amount  
    Ratio  
    Amount  
    Ratio 
  
    2024 

    Total Capital to risk-weighted assets: 
    $111,674  
     15.00% 
    $59,559  
     8% 
    $74,449  
     10%
  
    Tier 1 (Core) Capital to risk weighted assets: 
    $102,347  
     13.74% 
    $44,693  
     6% 
    $59,559  
     8%