Company: TCBI
Filing Date: 2025-02-11
Form Type: 10-K
Source: 0001077428-25-000036
Chunk: 110

Company: TEXAS CAPITAL BANCSHARES INC/TX
Filing Date: 2025-02-11
Form: 10-K
Item: Item 1A
Chunk 110
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ITEM 1A.     RISK FACTORS

The Company is subject to risk. The following discussion, along with management’s discussion and analysis and the financial statements and footnotes, sets forth the most significant risks and uncertainties that management believes could adversely affect the business, financial condition or results of operations. Additional risks and uncertainties that management is not aware of or that management currently deems immaterial may also have a material adverse effect on the business, financial condition or results of operations. There is no assurance that this discussion covers all potential risks that the Company faces. The occurrence of the described risks could cause results to differ materially from those described in its forward-looking statements included elsewhere in this report or in other filings with the SEC, and could have a material adverse impact on the business, financial condition or results of operations.

Summary of Risk Factors

The following is a summary of the most significant risks and uncertainties that management believes could adversely affect the business, financial condition or results of operations. In addition to the following summary, you should consider the other information set forth in this “Risk Factors” section and the other information contained in this report before investing in the Company’s securities.

Credit Risks

•The Company must effectively manage its credit risks.

•A significant portion of the Company’s assets consists of commercial loans, which may involve a higher degree of credit risk.

•The Company is subject to risks arising from conditions in the real estate market, as a significant portion of its loans are secured by commercial and residential real estate. 

•Future profitability depends, to a significant extent, upon commercial business customers.

•The Company’s business is concentrated in Texas and exposure to the Texas economy, including the energy industry, could adversely affect its performance.

•The Company must effectively manage its counterparty risk.

•The Company must maintain an appropriate allowance for credit losses.

•Changes in accounting standards could materially affect how the Company reports its financial results.

Liquidity Risks

•The Company must effectively manage its liquidity risk.

•The Company’s growth plans are dependent on the availability of capital and funding.

•The Company is dependent on funds obtained from borrowing or capital transactions or from the Bank to fund its obligations.

Market Risks

•The Company must effectively manage its interest rate risk.

•The Company must effectively manage market risk associated primarily with sales and trading activities.

•Changes in interest rates affect the value of the Company’s securities portfolio, and the Company may realize losses if it were to sell such securities at a time when interest rates are higher than the