Company: BCTF
Filing Date: 2025-03-06
Form Type: 10-K
Source: 0001552781-25-000058
Chunk: 408

Company: Bancorp 34, Inc.
Filing Date: 2025-03-06
Form: 10-K
Item: Item 1A
Chunk 408
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on the first day of the month for the next 11 months, compensation in an amount equal to 100% of his then current monthly base salary,
plus any bonus earned or accrued through the date of termination.

We may terminate Mr.
Tees’ employment with or without cause, and Mr. Tees may terminate his employment with or without good reason. Mr. Tees is eligible
for certain severance benefits upon termination, as described below under “Potential Payments Upon Termination or Change in Control.”
If within 12 months following a change in control the Bank terminates Mr. Tees without cause or Mr. Tees terminates his employment
for good reason, Mr. Tees will be entitled to severance equal to the sum of Mr. Tees’ then current base salary plus the
average of his last two years’ bonuses, plus any bonuses awarded for previous years but which have not been paid.

Finally, during his
employment and for a period of 12 months thereafter (other than a termination within one year following a change in control), Mr. Tees
may not, subject to limited exceptions, (i) compete with us by forming, serving as an organizer, director, or officer of, or consultant
to, or acquiring or maintaining more than a 2% passive investment in, a depository financial institution or holding company of a depository
financial institution, if the depository institution or holding company has one or more offices or branches within our territory, (ii)
solicit our customers for a competing business, or (iii) solicit our employees for a competing business.

Annual
Bonus Payments

Annual bonus compensation
is an integral component of our total compensation program that links executive decision-making and performance with our annual strategic
objectives. Our named executive officers were eligible for bonus payments based on 2024 performance.

In 2024, the board of
directors established a specific set of corporate metrics or measures to determine annual bonuses for our named executive officers. The
short term incentive program had a target bonus of 40% of the executive’s base salary and were subject to the following performance
measures measured from the second quarter of 2024 to the fourth quarter of 2024:

·Consolidated
                                            pre-tax return on average assets; 

·Tangible
                                            book value per share growth; 

·Efficiency
                                            ratio (bank level); 

·Core
                                            deposit growth;

·New
                                            loan growth (fundings and commitments);