Company: TCBI
Filing Date: 2025-02-11
Form Type: 10-K
Source: 0001077428-25-000036
Chunk: 112

Company: TEXAS CAPITAL BANCSHARES INC/TX
Filing Date: 2025-02-11
Form: 10-K
Item: Item 1A
Chunk 112
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 could damage the Company’s reputation and adversely affect its earnings.

Risks Relating to Company Securities

•The Company’s stock price can be volatile.

•The holders of the Company’s indebtedness and preferred stock have rights that are senior to those of its common stockholders.

•Federal legislation and regulations impose restrictions on the ownership of the Company’s common stock.

•Anti-takeover provisions of the Company’s certificate of incorporation, bylaws and Delaware law may make it more difficult for holders to receive a change in control premium.

Risk Factors Associated with the Business

Credit Risks

The Company must effectively manage its credit risks.    The risk of non-payment of loans is inherent in commercial banking, which may result from many factors, including:

•Adverse changes in local, U.S. and global economic and industry conditions, and other geopolitical events;

•Declines in the value of collateral, including asset values that are directly or indirectly related to external factors such as commodity prices, real estate values, interest rates or geopolitical risks;

•Concentrations of credit associated with specific loan categories, industries or collateral types; and

•Exposures to individual borrowers and to groups of entities that may be affiliated on some basis that individually and/or collectively represent a larger percentage of the Company’s total loans or capital than might be considered common at other banks of similar size.

The Company relies heavily on information provided by third parties when originating and monitoring loans.  If this information is intentionally or negligently misrepresented and the Company does not detect such misrepresentations, the credit risk associated with the transaction may be increased.  Although the Company attempts to manage its credit risk by carefully monitoring the concentration of its loans within specific loan categories and industries and through prudent loan approval and monitoring practices in all categories of lending, the Company cannot assure that its approval and monitoring procedures will reduce these lending risks. The Company’s significant number of large credit relationships (above $20 million) could exacerbate credit problems precipitated by a regional or national economic downturn. Competitive pressures could erode underwriting standards, leading to a decline in general credit quality and increases in credit defaults and non-performing asset levels.  If the Company’s credit portfolio management routines, policies and procedures are not able to adequately adapt to 

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changes in economic, competitive or other conditions that affect customers and the quality of the loan portfolio, the Company may incur increased losses that could adversely affect its financial results and lead to increased regulatory scrutiny, restrictions on its lending activity or financial penalties.

A significant portion of