Company: BCTF
Filing Date: 2025-03-06
Form Type: 10-K
Source: 0001552781-25-000058
Chunk: 23

Company: Bancorp 34, Inc.
Filing Date: 2025-03-06
Form: 10-K
Item: Item 1
Chunk 23
---
capitalized. An adequately
capitalized institution:

    ·
    has a total risk-based capital ratio
    of 8% or greater; and

    ·
    has a Tier 1 risk-based capital ratio of 6% or
    greater; and

    ·
    has a common equity Tier 1 risk-based capital
    ratio of 4.5% or greater; and

    ·
    has a leverage capital ratio of 4% or greater.

Undercapitalized—The
institution fails to meet the required minimum level for any relevant capital measure. An undercapitalized institution:

    ·
    has a total risk-based capital ratio
    of less than 8%; or

    ·
    has a Tier 1 risk-based capital ratio of less
    than 6%; or

    ·
    has a common equity Tier 1 risk-based capital
    ratio of less than 4.5%; or

    ·
    has a leverage capital ratio of less than 4%.

Significantly
Undercapitalized—The institution is significantly below the required minimum level for
any relevant capital measure. A significantly undercapitalized institution:

    ·
    has a total risk-based capital ratio
    of less than 6%; or

    ·
    has a Tier 1 risk-based capital ratio of less
    than 4%; or

    ·
    has a common equity Tier 1 risk-based capital
    ratio of less than 3%; or

    ·
    has a leverage capital ratio of less than 3%.

Critically
Undercapitalized—The institution fails to meet a critical capital level set by the appropriate
federal banking agency. A critically undercapitalized institution has a ratio of tangible equity to total assets that is equal to or
less than 2%.

Depending upon the capital
category to which an institution is assigned, the primary federal regulators’ corrective powers include: (a) requiring the institution
to submit a capital restoration plan; (b) limiting the institution’s asset growth and restricting its activities; (c) requiring
the institution to issue additional capital stock (including additional voting stock) or to sell itself; (d) restricting transactions
between the institution and its affiliates; (e) restricting the interest rate that the institution may pay on deposits; (f) ordering
a new election of directors of the institution; (g) requiring that senior executive officers or directors be dismissed; (h) prohibiting