Company: TCBI
Filing Date: 2025-02-11
Form Type: 10-K
Source: 0001077428-25-000036
Chunk: 111

Company: TEXAS CAPITAL BANCSHARES INC/TX
Filing Date: 2025-02-11
Form: 10-K
Item: Item 1A
Chunk 111
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 yield on the Company’s securities portfolio.

Strategic Risks

•The Company competes with many banks and other traditional, non-traditional, brick and mortar and online financial service providers.

•The Company must effectively execute its business strategy in order to continue asset and earnings growth.

•The Company must be effective in developing and executing new lines of business and new products and services while managing associated risks, including the ability to use technology to provide products and services that will satisfy customer demands. 

•The Company may pursue bank and non-bank acquisition opportunities as they arise. However, even if the Company identifies attractive acquisition opportunities, it may not be able to complete such acquisitions on favorable terms or realize the anticipated benefits from such acquisitions.

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Operational Risks

•The Company must continue to attract, retain and develop key personnel.

•The Company, its vendors and customers must effectively manage information systems and cyber risk and threats which may result in disruptions, failures or breaches in security.

•A successful cyber attack affecting the Company could cause significant harm to the Company and its clients and customers.

•The Company’s operations rely extensively on a broad range of external vendors.

•The development and use of AI presents risks and challenges that may adversely impact the Company’s business.

•The Company’s accounting estimates and risk management processes rely on management judgment, which may prove inadequate, wrong or be adversely impacted by inaccurate or mistakes in assumptions or models.

•The risk management strategies and processes may not be effective and the Company’s controls and procedures, including disclosure controls and procedures and internal control over financial reporting, may fail or be circumvented.

•The business is susceptible to fraud and conduct risk.

Legal, Regulatory and Compliance Risks

•The Company is subject to extensive government regulation and supervision and interpretations thereof. 

•The Company must maintain adequate regulatory capital to support its business objectives and strategy.

•The Company is subject to claims and litigation in the ordinary course of its business, including claims that may not be covered by insurance.

Other Risks Affecting the Business

•The business faces unpredictable economic and business conditions.

•The soundness of other financial institutions could adversely affect the business.

•Negative developments affecting the banking industry, and resulting media coverage, have eroded customer confidence in the banking system.

•The Company is subject to environmental liability risk associated with lending activities.

•Severe weather, earthquakes, other natural disasters, climate change, pandemics, acts of war or terrorism and other external and geopolitical events could significantly impact the business.

•Negative public opinion