Company: BCTF
Filing Date: 2025-03-06
Form Type: 10-K
Source: 0001552781-25-000058
Chunk: 66

Company: Bancorp 34, Inc.
Filing Date: 2025-03-06
Form: 10-K
Item: Item 1
Chunk 66
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lines of business or new products and services may subject us to additional risk. 

From time to time, we
may implement new lines of business or offer new products and services within existing lines of business. There are substantial risks
and uncertainties associated with these efforts, particularly in instances where the markets are not fully developed. In developing and
marketing new lines of business and/or new products and services, we may invest significant time and resources. Initial timetables for
the introduction and development of new lines of business and/or new products or services may not be achieved and price and profitability
targets may not prove feasible. External factors, such as compliance with regulations, competitive alternatives, and shifting market
preferences, may also impact the successful implementation of a new line of business and/or a new product or service. Furthermore, any
new line of business and/or new product or service could have a significant impact on the effectiveness of our system of internal controls.
Failure to successfully manage these risks in the development and implementation of new lines of business and/or new products or services
could have a material adverse effect on our business, financial condition and results of operations.

Legal,
Accounting, Regulatory and Compliance Risks

The
banking industry is heavily regulated and that regulation, together with any future legislation or regulatory changes, could limit or
restrict our activities and adversely affect our operations or financial results.

We operate in an extensively
regulated industry and we are subject to examination, supervision, and comprehensive regulation by various federal and state agencies.
Bancorp 34 is subject to Federal Reserve regulations, and the Bank is subject to regulation, supervision and examination by the OCC.
Our compliance with banking regulations is costly and restricts some of our activities, including payment of dividends, mergers and acquisitions,
investments, loans and interest rates and locations of offices. We are also subject to capitalization guidelines established by our regulators,
which require us to maintain adequate capital to support our business. If, as a result of an examination, a banking agency were to determine
that the financial condition, capital adequacy, asset quality, asset concentration, earnings prospects, management, liquidity sensitivity
to market risk or other aspects of any of our operations has become unsatisfactory, or that we or our management are in violation of
any law or regulation, the banking agency could take a number of different remedial actions as it deems appropriate.

47

Regulation by these
agencies is intended primarily for the protection of our depositors and the deposit insurance fund and not