Company: BCTF
Filing Date: 2025-03-06
Form Type: 10-K
Source: 0001552781-25-000058
Chunk: 54

Company: Bancorp 34, Inc.
Filing Date: 2025-03-06
Form: 10-K
Item: Item 1
Chunk 54
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 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 to implement
our growth strategy, which could adversely affect our business, financial condition and results of operations. 

Combining
Bancorp 34 and CBOA may be more difficult, costly or time-consuming than expected and we may fail to realize the anticipated benefits
and cost savings of the merger.

The
success of our merger with CBOA will depend, in part, on the ability to realize the anticipated cost savings from combining the businesses
of Bancorp 34 and CBOA. To realize the anticipated benefits and cost savings from the merger, we must successfully integrate and combine
the businesses in a manner that permits those cost savings to be realized. If we are not able to successfully achieve these objectives,