Company: BCTF
Filing Date: 2025-03-06
Form Type: 10-K
Source: 0001552781-25-000058
Chunk: 261

Company: Bancorp 34, Inc.
Filing Date: 2025-03-06
Form: 10-K
Item: Item 1A
Chunk 261
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44

We anticipate we will
continue to rely primarily on deposits, loan repayments, and cash flows from our investment securities to provide liquidity. Additionally,
when necessary, the secondary sources of borrowed funds described above will be used to augment our primary funding sources. An inability
to maintain or raise funds (including the inability to access secondary funding sources) in amounts necessary to meet our liquidity needs
would have a substantial negative effect, individually or collectively, on our liquidity. Our access to funding sources in amounts adequate
to finance our activities, or on terms attractive to us, could be impaired by factors that affect us specifically or the financial services
industry in general. For example, factors that could detrimentally impact our access to liquidity sources 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