Company: BCTF
Filing Date: 2025-03-06
Form Type: 10-K
Source: 0001552781-25-000058
Chunk: 1004

Company: Bancorp 34, Inc.
Filing Date: 2025-03-06
Form: 10-K
Item: Item 3
Chunk 1004
---
 be issued as restricted stock to Directors and employees of the Company. Stock
options and restricted stock awards currently issued under the 2017 Plan vest at 20% per year beginning on the first anniversary of date
of grant and the options expire seven years after the grant date.

On May 25, 2022, the
Company’s stockholders approved the adoption of the 2022 Equity Incentive Plan (“2022 Plan”). The 2022 Plan provided
for the grant of a maximum of 252,340 shares of the Company’s common stock of which up to 168,227 shares of common stock could
be issued as restricted stock and 84,113 shares of common stock could be granted for stock options to directors and employees of the
Company. The board of directors’ compensation committee specified the vesting schedules for the restricted stock and options. Option
expiration dates were flexible as well but could not exceed ten years from the grant date.

On September 25, 2024, the Company’s
Board of Directors approved the termination of the 2017 Plan and the 2022 Plan. While outstanding awards issued under those plans were
not affected by the plans’ termination, no further awards may be granted under either the 2017 Plan or the 2022 Plan. In connection
with the termination of the 2017 Plan and the 2022 Plan, the Board of Directors approved and adopted the Bancorp 34, Inc. 2024 Equity
Incentive Plan (the “2024 Plan”). The 2024 Plan provides for the grant of a maximum of 525,000 shares of the Company’s
common stock pursuant to a variety of equity incentive awards, including restricted stock, stock options, and other awards. Selected
executives and other key employees were granted restricted stock unit awards whose vesting is contingent upon meeting Company-wide performance
conditions, including tangible book value per share and return on average assets (performance restricted stock unit awards). Multiple
performance conditions are established with a weighting of units. The performance restricted stock unit awards are earned upon the achievement
of the performance condition for the Company. Once earned, a portion of the performance restricted stock unit awards vest in installments
on anniversaries of the date on which the performance condition was achieved. As of December 31, 2024, 295,100 units of performance restricted
stock awards have been issued under the 2024 Plan.

    114

The stock option plans allow for net settlement