Company: BCTF
Filing Date: 2025-03-06
Form Type: 10-K
Source: 0001552781-25-000058
Chunk: 266

Company: Bancorp 34, Inc.
Filing Date: 2025-03-06
Form: 10-K
Item: Item 1A
Chunk 266
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 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 for the benefit of our stockholders.
Congress and federal regulatory agencies continually review banking laws, regulations and policies for possible changes. The Dodd-Frank
Act, enacted in July 2010, instituted major changes to the banking and financial institutions regulatory regimes. The burden of regulatory
compliance has increased under the Dodd-Frank Act and has increased our costs of doing business and, as a result, may create an advantage
for our competitors who may not be subject to similar legislative and regulatory requirements. Regulations and laws may be modified at
any time, and new legislation may be enacted that will affect us or our subsidiaries.

Furthermore, our regulators
also have the ability to compel us to take certain actions, or restrict us from taking certain actions entirely, such as actions that
our regulators deem to constitute an unsafe or unsound banking practice. Our failure to comply with any applicable laws or regulations,
or regulatory policies and interpretations of such laws and regulations, could result in sanctions by regulatory agencies (such as a
memorandum of understanding, a written supervisory agreement or a cease and desist order), civil money penalties or damage to our reputation,
all of which could have a material adverse effect on our business, financial condition or results of operations.

Failure
to maintain certain regulatory capital levels and ratios could result in regulatory actions that would be materially adverse to our shareholders.

U.S. capital standards
are discussed under the section titled “Capital Resources”, as part of Item 7, Management’s Discussion and Analysis of Financial
Condition and Results of Operations of Bancorp 34. Pressures to maintain appropriate capital levels and address business needs in a changing
economy could result in certain mandatory and possible additional discretionary actions by regulators that, if undertaken, could be dilutive
or otherwise have an adverse effect on our shareholders