Company: BCTF
Filing Date: 2025-03-06
Form Type: 10-K
Source: 0001552781-25-000058
Chunk: 253

Company: Bancorp 34, Inc.
Filing Date: 2025-03-06
Form: 10-K
Item: Item 1A
Chunk 253
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 and any system to reduce risk exposure, however
well designed and operated, is based in part on certain assumptions and can provide only reasonable, not absolute, assurances that the
objectives of the system are met and will be effective under all circumstances or that it will adequately identify, manage or mitigate
any risk or loss to us. Additionally, instruments, systems and strategies used to hedge or otherwise manage exposure to various types
of interest rate, price, legal and regulatory compliance, credit, liquidity, operational and business risks and enterprise-wide risk
could be less effective than anticipated. As a result, we may not be able to effectively mitigate our risk exposures in particular market
environments or against particular types of risk. If our risk management framework is not effective, we could suffer unexpected losses
and become subject to litigation, negative regulatory consequences, or reputational damage among other adverse consequences, any of which
could result in our business, financial condition, results of operations or prospects being materially adversely affected.

We
are a community bank and our ability to maintain our reputation is critical to the success of our business and the failure to do so may
materially adversely affect our performance.

We are a community bank,
and our reputation is one of the most valuable components of our business. As such, we strive to conduct our business in a manner that
enhances our reputation. This is done, in part, by recruiting, hiring and retaining employees who share our core values: being an integral
part of the communities we serve; delivering superior service to our customers; and caring about our customers and associates. Damage
to our reputation could undermine the confidence of our current and potential clients in our ability to provide financial services. Such
damage could also impair the confidence of our counterparties and business partners, and ultimately affect our ability to effect transactions.
Maintenance of our reputation depends not only on our success in maintaining our core values and controlling and mitigating the various
risks described herein, but also on our success in identifying and appropriately addressing issues that may arise in areas such as potential
conflicts of interest, anti-money laundering, client personal information and privacy issues, record-keeping, regulatory investigations
and any litigation that may arise from the failure or perceived failure of us to comply with legal and regulatory requirements. If our
reputation is negatively affected, by the actions of our employees or otherwise, our business and, therefore, our operating results may
be materially adversely affected. Further, negative public opinion can expose us to litigation and regulatory action as we seek