Company: BCTF
Filing Date: 2025-03-06
Form Type: 10-K
Source: 0001552781-25-000058
Chunk: 270

Company: Bancorp 34, Inc.
Filing Date: 2025-03-06
Form: 10-K
Item: Item 1A
Chunk 270
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 business
and our sales of loans to third parties may increase the cost of compliance and the risks of noncompliance and subject us to litigation.

We service some of our
own loans, and loan servicing is subject to extensive regulation by federal, state and local governmental authorities as well as to various
laws and judicial and administrative decisions imposing requirements and restrictions on those activities. The volume of new or modified
laws and regulations has increased in recent years and, in addition, some individual municipalities have begun to enact laws that restrict
loan servicing activities including delaying or temporarily preventing foreclosures or forcing the modification of certain mortgages.
If regulators impose new or more restrictive requirements, we may incur additional significant costs to comply with such requirements
which may adversely affect us. In addition, were we to be subject to regulatory investigation or regulatory action regarding our loan
modification and foreclosure practices, our financial condition and results of operation could be adversely affected.

We
could be subject to changes in tax laws, regulations and interpretations or challenges to our income tax provision.

We compute our income
tax provision based on enacted tax rates in the jurisdictions in which we operate. Any change in enacted tax laws, rules or regulatory
or judicial interpretations, or any change in the pronouncements relating to accounting for income taxes could adversely affect our effective
tax rate, tax payments and results of operations. The taxing authorities in the jurisdictions in which we operate may challenge our tax
positions, which could increase our effective tax rate and harm our financial position and results of operations. We are subject to audit
and review by U.S. federal and state tax authorities. Any adverse outcome of such a review or audit could have a negative effect on our
financial position and results of operations. In addition, changes in enacted tax laws, such as adoption of a lower income tax rate in
any of the jurisdictions in which we operate, could impact our ability to obtain the future tax benefits represented by our deferred
tax assets. In addition, the determination of our provision for income taxes and other liabilities requires significant judgment by management.
Although we believe that our estimates are reasonable, the ultimate tax outcome may differ from the amounts recorded in our financial
statements and could have a material adverse effect on our financial results in the period or periods for which such determination is
made.

50

Risks
Related to Bancorp 34 Common Stock

Some
provisions of our organizational documents may have anti-takeover effects that could discourage an acquisition of us by others, even
if an acquisition would be beneficial to our