International Bancshares (IBOC) risk factors, FY2025 10-K

Risks Related to Our Business

1. 01Our allowance for probable loan losses may be insufficient
2. 02If real estate values in our target markets decline, the loan portfolio would be impaired
3. 03We operate in a highly competitive industry and market area
4. 04The regulatory landscape for cryptocurrencies, decentralized finance, and fintech services remains uncertain and may create additional competitive challenges for traditional banks like ours
5. 05The development, adoption, and integration of AI in our banking services, processes, and products may subject us to increased technological risks, costs, uncertainties, and unpredictable outcomes while increasing our compliance costs and exposing us to new operational challenges
6. 06External funding which we rely on, in part, to provide liquidity may not be available to us on favorable terms or at all
7. 07Our earnings are subject to interest rate risk23% rewritten
8. 08We are subject to or may become subject to extensive government regulation and supervision
9. 09Our potential future acquisitions and branch expansion could be adversely affected by a number of factors
10. 10We rely heavily on our chief executive officer
11. 11Our information systems may experience an interruption or breach in security
12. 12Additional capital or funding to increase liquidity levels may not be available when needed or at all
13. 13Our holding company relies on dividends from our Subsidiary Banks for most of our revenue
14. 14Severe weather, natural disasters, pandemics, acts of war or terrorism and other external events could significantly impact our business
15. 15An impairment in the carrying value of our goodwill could negatively impact our earnings and capital
16. 16We are subject to environmental liability risks as a result of certain lending activities
17. 17Our controls and procedures may fail or be circumvented
18. 18New lines of business or new products and services may subject us to additional risks
19. 19Our accounting estimates and risk management processes rely on analytical and forecasting tools and models
20. 20We may be adversely affected by declining crude oil prices

Risks Related to the Company’s Industry

1. 21Our success depends significantly on economic conditions in the local markets in which we operate
2. 22We depend on the accuracy and completeness of information about customers and counterparties as well as the soundness of other financial institutions
3. 23If we do not adjust to rapid changes in the financial services industry, our financial performance may suffer
4. 24We are subject to claims and litigation pertaining to intellectual property
5. 25Our financial condition, results of operation and stock price may be negatively impacted by negative publicity risk, diminished depositor confidence in depository institutions, and the increased threat of bank-run contagion
6. 26Recent volatility in the banking industry could prompt new legislation, regulations, and policy changes that could cause us to be subjected to additional regulatory oversight and supervision
7. 27The Dodd-Frank Act, the powers of the CFPB, and the FDIC Overdraft Payment Supervisory Guidance may increase the likelihood of lawsuits against financial institutions
8. 28The imposition of new or increased international tariffs may have a material adverse effect on our business, financial condition, and results of operations
9. 29Macroeconomic conditions could have a material adverse effect on our business, results of operations, and financial condition

Risks Related to the Company’s Stock

1. 30The trading price of our common stock may be volatile
2. 31The holders of our junior subordinated debentures have rights that are senior to those of our shareholders