Company: BCTF
Filing Date: 2025-03-06
Form Type: 10-K
Source: 0001552781-25-000058
Chunk: 62

Company: Bancorp 34, Inc.
Filing Date: 2025-03-06
Form: 10-K
Item: Item 1
Chunk 62
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 include our financial results,
a decrease in the level of our business activity due to a market downturn or adverse regulatory action against us, a reduction in our
credit rating, any damage to our reputation, counterparty availability, changes in the activities of our business partners, changes affecting
our loan portfolio or other assets, or any other event that could cause a decrease in depositor or investor confidence in our creditworthiness
and business. Those factors may lead to depositors withdrawing their deposits or creditors limiting our borrowings. Our access to liquidity
could also be impaired by factors that are not specific to us, such as general business conditions, interest rate fluctuations, severe
volatility or disruption of the financial markets, bank closures or negative views and expectations about the prospects for the financial
services industry as a whole, or legal, regulatory, accounting, and tax environments governing our funding transactions. In addition,
our ability to raise funds is strongly affected by the general state of the U.S. and world economies and financial markets as well as
the policies and capabilities of the U.S. government and its agencies, and may remain or become increasingly difficult due to economic
and other factors beyond our control. Any such event or failure to manage our liquidity effectively could affect our competitive position,
increase our borrowing costs and the interest rates we pay on deposits, limit our access to the capital markets and have a material adverse
effect on our results of operations or financial condition.

We
may not be able to maintain a low cost deposit base or access other low-cost funding sources.

We rely on bank deposits
to be a low cost and stable source of funding. In addition, our future growth will largely depend on our ability to maintain and grow
a strong core deposit base. If we are unable to continue to attract and retain core deposits, to obtain third party financing on favorable
terms, or to have access to interbank or other liquidity sources, we may not be able to grow our assets. We compete with banks and other
financial services companies for deposits. If our competitors raise the rates they pay on deposits in response to interest rate changes
initiated by the Federal Reserve or for other reasons of their choice, our funding costs may increase, either because we raise our rates
to retain deposits or because of deposit outflows that require us to rely on more expensive sources of funding. In addition, we could
experience deposit outflows as a result of depositors seeking to maximize deposit insurance by limiting their deposits at a single financial
institution to the maximum federal deposit