Bancfirst (BANF) risk factors, FY2024 10-K

Other

1. 01Anti-Money Laundering and the Patriot Act
2. 02Office of Foreign Assets Control Regulation
3. 03Community Reinvestment Act
4. 04Consumer Laws and Regulations
5. 05Non-depository companies that offer one or more consumer financial products or services
6. 06Interstate Banking and Branching
7. 07Changes in Laws, Regulations or Policies
8. 08Commissioner or the Texas Finance Commission. Accordingly, unless a specific provision of Texas law otherwise provides, a state-chartered bank is empowered to conduct all activities that a national bank may conduct

Risks Related to Our Business

1. 09Fluctuations in interest rates could reduce our profitability
2. 10We may be adversely affected by declining crude oil and natural gas prices
3. 11A substantial portion of our loan portfolio is secured by real estate, in particular commercial real estate. Deterioration in the real estate markets could lead to losses, which could have a material negative effect on our financial condition and results of operations
4. 12We are subject to environmental liability risk associated with lending activities
5. 13If a significant number of customers fail to perform under their loans, our business, profitability and financial condition would be adversely affected
6. 14Changes in economic conditions, especially in the State of Oklahoma, pose significant challenges for us and could adversely affect our financial condition and results of operations
7. 15Maintaining or increasing our market share depends on market acceptance and regulatory approval of new products and services
8. 16Changes in consumer use of banks and changes in consumer spending and savings habits could adversely affect our financial results
9. 17The soundness of other financial institutions could have a material adverse effect on our business, growth and profitability
10. 18Negative developments in the banking industry could adversely affect our financial condition and results of operations
11. 19Competition with other financial institutions could adversely affect our profitability
12. 20Failure to keep pace with technological change could adversely affect our results of operations and financial condition
13. 21We operate in a highly regulated environment and may be adversely affected by changes in federal and state laws and regulations
14. 22Changes in monetary policies may have an adverse effect on our business
15. 23There can be no assurance that the integration of our acquisitions will be successful or will not result in unforeseen difficulties that may absorb significant management attention
16. 24contingent liabilities of the banks, businesses, assets and liabilities we acquire. If these issues or liabilities exceed our estimates, our results of operations and financial condition may be negatively affected
17. 25We are subject to liquidity risk

Operational Risks

1. 26Our accounting estimates and risk-management processes may not be effective in mitigating risk and loss
2. 27Technological advances in payment processing is expected to negatively impact our interchange revenue
3. 28Consumer protection laws and the Durbin Amendment may reduce our noninterest income
4. 29We have businesses other than banking
5. 30Our information systems may experience an interruption or breach in security
6. 31Our business requires the collection and retention of large volumes of customer data, including personally identifiable information in various information systems that we maintain and in those maintained by third parties with whom we contract to provide data services
7. 32The trading volume in our common stock is less than that of other larger financial services companies
8. 33We may not continue to pay dividends on our common stock in the future
9. 34Our directors and executive officers own a significant portion of our common stock and can influence stockholder decisions
10. 35Our amended certificate of incorporation, as well as certain provisions of banking law and Oklahoma corporate law, could make it difficult for a third party to acquire our company
11. 36An investment in our common stock is not an insured deposit
12. 37Our stock price can be volatile
13. 38We rely on certain external vendors
14. 39Changes in accounting standards could impact our consolidated financial statements and reported earnings
15. 40If we fail to maintain an effective system of internal controls, we may not be able to accurately report our financial results or prevent fraud
16. 41We may need to raise additional capital in the future, and such capital may not be available when needed or at all
17. 42We rely heavily on our management team, and the unexpected loss of key managers may adversely affect our operations