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Wiki	Wiki Summary
Risk management	Risk management is the identification, evaluation, and prioritization of risks (defined in ISO 31000 as the effect of uncertainty on objectives) followed by coordinated and economical application of resources to minimize, monitor, and control the probability or impact of unfortunate events or to maximize the realization of opportunities.\nRisks can come from various sources including uncertainty in international markets, threats from project failures (at any phase in design, development, production, or sustaining of life-cycles), legal liabilities, credit risk, accidents, natural causes and disasters, deliberate attack from an adversary, or events of uncertain or unpredictable root-cause.
Financial institution	Financial institutions, sometimes called banking institutions, are business entities that provide services as intermediaries for different types of financial monetary transactions. Broadly speaking, there are three major types of financial institutions:\nDepository institutions – deposit-taking institutions that accept and manage deposits and make loans, including banks, building societies, credit unions, trust companies, and mortgage loan companies;\nContractual institutions – insurance companies and pension funds\nInvestment institutions – investment banks, underwriters, and other different types of financial entities managing investments.Financial institutions can be distinguished broadly into two categories according to ownership structure:\n\nCommercial banks\nCooperative banksSome experts see a trend toward homogenisation of financial institutions, meaning a tendency to invest in similar areas and have similar business strategies.
International financial institutions	An international financial institution (IFI) is a financial institution that has been established (or chartered) by more than one country, and hence is subject to international law. Its owners or shareholders are generally national governments, although other international institutions and other organizations occasionally figure as shareholders.
Special Activities Center	The Special Activities Center (SAC) is a division of the Central Intelligence Agency responsible for covert operations and paramilitary operations. The unit was named Special Activities Division (SAD) prior to 2015.
The Walt Disney Company	The Walt Disney Company, commonly known as Disney (), is an American multinational mass media and entertainment conglomerate headquartered at the Walt Disney Studios complex in Burbank, California.\nDisney was originally founded on October 16, 1923, by brothers Walt and Roy O. Disney as the Disney Brothers Cartoon Studio; it also operated under the names the Walt Disney Studio and Walt Disney Productions before changing its name to the Walt Disney Company in 1986.
Holding company	A holding company is a company whose primary business is holding a controlling interest in the securities of other companies. A holding company usually does not produce goods or services itself.
East India Company	The East India Company (EIC) was an English, and later British, joint-stock company founded in 1600. It was formed to trade in the Indian Ocean region, initially with the East Indies (the Indian subcontinent and Southeast Asia), and later with East Asia.
The Honest Company	The Honest Company, Inc. is an American consumer goods company, founded by actress Jessica Alba.
The Longaberger Company	The Longaberger Company is an American manufacturer and distributor of handcrafted maple wood baskets and other home and lifestyle products. The company opened in 1973, was acquired in 2013 by CVSL, Inc., and closed in 2018.
SAP ERP	SAP ERP is an enterprise resource planning software developed by the German company SAP SE. SAP ERP incorporates the key business functions of an organization. The latest version of SAP ERP (V.6.0) was made available in 2006.
List of companies traded on the JSE	This is a list of companies traded on the JSE. The original compilation of the list was done in February 2006. It is in the process of being updated as at April 2021.
Banking in the United States	Banking in the United States began by the 1780s along with the country's founding and has developed into highly influential and complex system of banking and financial services. Anchored by New York City and Wall Street, it is centered on various financial services namely private banking, asset management, and deposit security.
Regulation	Regulation is the management of complex systems according to a set of rules and trends. In systems theory, these types of rules exist in various fields of biology and society, but the term has slightly different meanings according to context.
Dirichlet conditions	In mathematics, the Dirichlet conditions are sufficient conditions for a real-valued, periodic function f to be equal to the sum of its Fourier series at each point where f is continuous. Moreover, the behavior of the Fourier series at points of discontinuity is determined as well (it is the midpoint of the values of the discontinuity).
Twenty-one Conditions	The Twenty-one Conditions, officially the Conditions of Admission to the Communist International, refer to the conditions, most of which were suggested by Vladimir Lenin, to the adhesion of the socialist parties to the Third International (Comintern) created in 1919. The conditions were formally adopted by the Second Congress of the Comintern in 1920.
Causality conditions	In the study of Lorentzian manifold spacetimes there exists a hierarchy of causality conditions which are important in proving mathematical theorems about the global structure of such manifolds. These conditions were collected during the late 1970s.The weaker the causality condition on a spacetime, the more unphysical the spacetime is.
Nervous Conditions	Nervous Conditions is a novel by Zimbabwean author Tsitsi Dangarembga, first published in the United Kingdom in 1988. It was the first book published by a black woman from Zimbabwe in English.
Conditions races	Conditions races are horse races in which the weights carried by the runners are laid down by the conditions attached to the race. Weights are allocated according to the sex of the runners, with female runners carrying less weight than males; the age of the runners, with younger horses receiving weight from older runners to allow for relative maturity, referred to as weight for age; and the quality of the runners, with horses that have won certain values of races giving weight to less successful entrants.
Conditions (album)	Conditions is the debut studio album by Australian rock band The Temper Trap, released in Australia through Liberation Music on 19 June 2009. It was later released in the United Kingdom on 10 August 2009.
List of countries by proven oil reserves	This is a list of countries by proven oil reserves. Proven reserves are those quantities of petroleum which, by analysis of geological and engineering data, can be estimated, with a high degree of confidence, to be commercially recoverable from a given date forward from known reservoirs and under current economic conditions.
Formula One regulations	The numerous Formula One regulations, made and enforced by the FIA and later the FISA, have changed dramatically since the first Formula One World Championship in 1950. This article covers the current state of F1 technical and sporting regulations, as well as the history of the technical regulations since 1950.
Radio regulation	Radio regulation refers to the regulation and licensing of radio in international law, by individual governments, and by municipalities.\n\n\n== International regulation ==\nThe International Telecommunication Union (ITU) is a specialized agency of the United Nations (UN) that is responsible for issues that concern information and communication technologies.
Federal Reserve	The Federal Reserve System (also known as the Federal Reserve or simply the Fed) is the central banking system of the United States of America. It was created on December 23, 1913, with the enactment of the Federal Reserve Act, after a series of financial panics (particularly the panic of 1907) led to the desire for central control of the monetary system in order to alleviate financial crises.
Federal Reserve Bank	A Federal Reserve Bank is a regional bank of the Federal Reserve System, the central banking system of the United States. There are twelve in total, one for each of the twelve Federal Reserve Districts that were created by the Federal Reserve Act of 1913.
Periodical literature	Periodical literature (also called a periodical publication or simply a periodical) is a category of serial publications that appear in a new edition on a regular schedule. The most familiar example is the magazine, typically published weekly, monthly, or quarterly.
Periodic poling	Periodic poling is a formation of layers with alternate orientation in a birefringent material. The domains are regularly spaced, with period in a multiple of the desired wavelength of operation.
Periodicals librarian	A periodicals librarian or serials librarian is a librarian who works in the specialized area of periodical literature. A periodicals librarian can have a variety of duties, but generally work specifically with the acquisition, collection development, organization, preservation, and sometimes cataloging of periodicals.
Nagykörút (periodical)	Nagykörút was a Hungarian newspaper which appeared in the 1930s, edited by the writer Jenő Rejtő. According to an internet source on playwright, journalist and pulp fiction author Jenő Rejtő edited the newspaper Nagykörút for only one edition.
Balance sheet	In financial accounting, a balance sheet (also known as statement of financial position or statement of financial condition) is a summary of the financial balances of an individual or organization, whether it be a sole proprietorship, a business partnership, a corporation, private limited company or other organization such as government or not-for-profit entity. Assets, liabilities and ownership equity are listed as of a specific date, such as the end of its financial year.
Floating interest rate	A floating interest rate, also known as a variable or adjustable rate, refers to any type of debt instrument, such as a loan, bond, mortgage, or credit, that does not have a fixed rate of interest over the life of the instrument.Floating interest rates typically change based on a reference rate (a benchmark of any financial factor, such as the Consumer Price Index). One of the most common reference rates to use as the basis for applying floating interest rates is the London Inter-bank Offered Rate, or LIBOR (the rates at which large banks lend to each other).The rate for such debt will usually be referred to as a spread or margin over the base rate: for example, a five-year loan may be priced at the six-month LIBOR + 2.50%.
Asset and liability management	Asset and liability management (often abbreviated ALM) is the practice of managing financial risks that arise due to mismatches between the assets and liabilities as part of an investment strategy in financial accounting.\nALM sits between risk management and strategic planning.
Student loan	A student loan is a type of loan designed to help students pay for post-secondary education and the associated fees, such as tuition, books and supplies, and living expenses. It may differ from other types of loans in the fact that the interest rate may be substantially lower and the repayment schedule may be deferred while the student is still in school.
Azealia Banks	Azealia Amanda Banks ( ə-ZEE-lee-ə; born May 31, 1991) is an American rapper. Raised in the Harlem neighborhood of New York City, she began releasing music through Myspace in 2008 before being signed to XL Recordings at age 18.
Privately held company	A privately held company or private company is a company which does not offer or trade its company stock (shares) to the general public on the stock market exchanges, but rather the company's stock is offered, owned and traded or exchanged privately or over-the-counter. In the case of a close corporation, there are a relatively small number of shareholders or company members.
Agile management	Agile management is the application of the principles of Agile software development to various management processes, particularly project management. Following the appearance of the Manifesto for Agile Software Development in 2001, Agile techniques started to spread into other areas of activity.
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Network management	Network management is the process of administering and managing computer networks. Services provided by this discipline include fault analysis, performance management, provisioning of networks and maintaining quality of service.

Risk Factors
TEXAS REGIONAL BANCSHARES INC ITEM 1A RISK FACTORS The Company is subject to various risks in the normal course of business, including both risk factors that are unique to the Company and risk factors common to financial institutions and the banking industry as a whole
Following is a description of some of the risk factors associated with the Company and its business activities
The Company has taken pro-active steps to address each of these risks in order to ensure continuity of operations and sustainable future earnings growth
PROFITABILITY LINKED TO BANKING ACTIVITIES Because the Company’s non-banking activities represent a very small portion of its business, its profitability will be directly attributable to the success of its banking subsidiary, Texas State Bank
The Company’s banking activities compete with other banking institutions on the basis of service, convenience and, to some extent, price
Due in part to both regulatory changes and consumer demands, banks have experienced increased competition from other financial entities offering similar products
Competition from both bank and non-bank organizations is expected to continue
The Company relies on the profitability of the Bank and dividends received from the Bank for payment of its operating expenses and satisfaction of its obligations
As is the case with other similarly situated financial institutions, the profitability of the Bank, and therefore of the Company, will be subject to the fluctuating cost and availability of money, changes in the prime lending rate, changes in economic conditions in general and, because of the location of its banking centers, changes in economic conditions in Texas in particular
SUCCESS RELIES ON SPECIFIC GEOGRAPHIC AREAS The Company’s profitability is dependent on the profitability of the Bank, which operates exclusively in the state of Texas, with substantial concentrations of its activities and assets in the Rio Grande Valley, Houston and East Texas markets
In addition to adverse changes in general conditions in the United States, unfavorable changes in economic conditions affecting the areas in which the Bank operates, such as adverse effects of weather, changes in agricultural production, adverse changes in United States-Mexico relations, and adverse changes in the economic climate in Mexico, may have a significant adverse impact on operations of the Company
10 ______________________________________________________________________ The Company’s entry into the Houston market in 2002, the Company’s acquisition of Southeast Texas and its banking center network in Beaumont, Port Arthur and other East Texas market areas in 2004, the Company’s acquisition of Mercantile in Dallas in early 2005 and its subsequent expansion in each of these areas has resulted in the diversification of the business of the Bank outside of its original base in the Rio Grande Valley
REGULATED ENVIRONMENT The Company and the Bank are subject to extensive government regulation and supervision under various state and federal laws, rules and regulations, including rules and regulations promulgated by the Federal Reserve Board and the Texas Department of Banking
These laws and regulations are designed primarily to protect the Bank Insurance Fund of the FDIC, depositors and borrowers, and to further certain social policies and, consequently, may impose limitations on the Company that may not be in the best interests of the Company and its shareholders
As indicated above, the Bank is subject to the supervision of the Texas Department of Banking and, since the Bank is a Federal Reserve member bank, it is also subject to the supervision of its primary federal regulator, the Federal Reserve Board
FLUCTUATIONS IN INTEREST RATES The Company realizes income primarily from the difference between interest earned on loans and investments and the interest paid on deposits and borrowings
The Company expects that it will periodically experience “gaps” in the interest rate sensitivities of its assets and liabilities, meaning that either its interest-bearing liabilities will be more sensitive to changes in market interest rates than its interest-earning assets, or vice versa
In either event, if market interest rates should move contrary to the Company’s position, this “gap” will work against the Company, and its earnings may be negatively affected
The Company may be unable to predict fluctuations of market interest rates, which are affected by the following factors: · inflation, · deflation, · recession, · increased unemployment, · tightening money supply, and · international disorder and instability in domestic and foreign financial markets
The Company’s asset-liability management strategy, which is designed to control its risk from changes in market interest rates, may not be able to prevent changes in interest rates from having a material adverse effect on its results of operations and financial condition
The Company places a high priority on matching its interest sensitive assets to its interest sensitive liabilities in order to maintain a predictable, continuing, stable base of net interest income, the largest contributor to the Company’s earnings
See Item 7A herein for a detailed discussion of how the Company manages and monitors the risk resulting from exposure to changes in market interest rates
ASSET QUALITY Evaluating and maintaining asset quality is an ongoing activity that applies both to the loan and securities portfolios, which together constitute 90dtta8prca of total assets
11 ______________________________________________________________________ The Company’s loans held for investment, which represent 62dtta4prca of total assets, are made to customers throughout the areas served by the Bank
The Bank has a written loan policy which sets standards for credit extensions and grants loan authority to individual loan officers and/or the loan committee
Loans are carefully underwritten and structured and approved by the loan committee, when applicable, to ensure high-quality originations
The Bank avoids “sub-prime” and high-risk loans, and requires that its loan officers and credit department follow in-house lending limits and monitor the total of loans outstanding to any one borrower
The Bank’s lending policies preclude extending credit to challenged industries and under-capitalized borrowers
After funding, individual loans and relationships are monitored for compliance with loan agreements and maintenance of collateral through on-site visits by loan officers and periodic credit analysis and review by the Loan Review department
Credit concentrations, geographic diversification, industry trends and other macro-tools are utilized to manage and monitor the entire loan portfolio for asset quality
By way of example, the Bank evaluates the effects of Hurricane Rita on borrowers in East Texas, monitors relationships that may be influenced by the Mexican economy and follows weather conditions in the Rio Grande Valley area that could affect agricultural-based loans
When an existing relationship or credit is adversely affected or downgraded, it is the Bank’s policy to respond quickly to the changed conditions
If the Company’s loan customers fail to repay their loans according to the terms of their loan agreement or if the collateral securing the payment of customers’ loans is insufficient to assure repayment, the Company may experience significant credit losses which could have a material adverse effect on its operating results
The Company makes various assumptions and judgments about the collectibility of its loan portfolio, including the creditworthiness of its borrowers and the value of the real estate and other assets serving as collateral for the repayment of many of its loans
In determining the size of its allowance for loan losses, the Company relies on its experience and its evaluation of economic conditions
If the Company’s assumptions prove to be incorrect, its current allowance may not be sufficient to cover future loan losses and adjustments may be necessary to allow for different economic conditions or adverse developments in its loan portfolio
In addition, federal and state regulators periodically review the Company’s allowance for loan losses and may require the Company to increase its provision for loan losses or recognize further loan charge-offs, based on judgments different from those of the Company’s management
Material loan losses, or material additions to the Company’s allowance, could materially decrease net income
The Bank’s securities portfolio represents 27dtta9prca of total assets
The Bank’s policy is to purchase securities rated in Moody’s highest four categories
Should subsequent declines in ratings occur, management may liquidate securities to maintain quality levels
PERSONNEL RETENTION The Company relies heavily on its Chief Executive Officer
The Company has experienced substantial growth in assets and deposits in the past, particularly since Glen E Roney became Chairman of the Board and Chief Executive Officer of the Company in 1985
Although Mr
Roney is a substantial shareholder of the Company and is the beneficiary of a deferred compensation arrangement with the Company, the Company does not have an employment agreement with Mr
Roney could have a material adverse effect on the Company’s business and prospects
Loss of other key officers or experienced staff also represents a potentially serious risk to the Company
The Company believes it has a solid core of management and employees who are fairly compensated and properly motivated to promote the Company’s long term interests and objectives
To help attract and retain employees, the Company offers key employees a benefits package that includes salary, bonus, stock options and participation in the Company’s ESOP, as well as health insurance and paid 12 ______________________________________________________________________ vacations
The Board of Directors has a Stock Option and Compensation Committee which is responsible for oversight of compensation and retention of employees
The Committee periodically reviews and approves levels of base salaries and bonuses and incentive compensation program
The Company also grants stock options to reward performance and provide incentives to key individuals
OPERATIONAL RISK The Company maintains systems of internal control over operations, data processing, customer records, accounting, human resources, security, loan review, insurance, financial reporting and contingency planning
Line managers monitor each of these systems to ensure (i) compliance with regulations and established policies, (ii) minimal disruptions to the business, (iii) security over customer information, (iv) accuracy of information, and (v) compliance with internal and external reporting requirements
The internal audit department tests and monitors systems on a periodic basis
Independent public accountants review internal control systems and audit the consolidated financial statements each year
In the event any issue is not adequately addressed, employees, internal auditors, outside legal counsel and independent auditors are afforded an “open door” to direct such an issue to senior management and to members of the Board of Directors, as appropriate
REGULATORY RISK The Bank is subject to federal and state banking laws
As a bank holding company, the Company is subject to the Bank Holding Company Act
As a public company, the Company is subject to legal restrictions and requirements, including reporting requirements, of the SEC, including regulations promulgated following passage by Congress of the Sarbanes-Oxley Act
The regulations that most directly affect the Company and the Bank are in the areas of deposit gathering, lending, asset quality, capital adequacy, customer privacy, financial reporting and financial controls
The Company’s policy is to fully comply with all regulatory requirements and the Company is periodically examined by the Federal Reserve Board
The Bank is periodically examined by both the state banking regulators and the Federal Reserve Board
Non-compliance with any applicable regulation could have material adverse consequences to the Company
CAPITAL ADEQUACY AND LIQUIDITY The Company’s capital base is presently in excess of all regulatory minimum levels and is expected to continue to be at or above such levels
However, should asset quality deteriorate, from excessive loan losses or otherwise, it is possible that additional capital or liquidity could be required
Accordingly, the Company closely monitors key ratios to ensure that it maintains healthy margins and it monitors the strength and capacity of its counterparties
The Company keeps an open dialogue with regulators and the policy goal is to meet or exceed all regulatory guidelines
The Company complies with all SEC filing obligations and regularly communicates with larger shareholders, key underwriters and stock analysts to afford continued access to the public capital markets
COMPETITION The Bank operates as a Texas regional bank with a market-leading presence in two markets, the Rio Grande Valley and the Beaumont-Port Arthur metropolitan area, and a presence in three additional major Texas markets, Houston, Corpus Christi (Coastal Bend) and Dallas
In each of the markets in which it operates, the Bank experiences intense competition from other banks, thrifts, credit unions, mortgage banking companies, finance companies, securities brokerage companies, insurance agencies and money market mutual funds
Many of these competitors have greater resources and larger lending limits than the Bank
In addition, non-depository institution competitors are 13 ______________________________________________________________________ generally not subject to the extensive regulations applicable to the Bank or the Company
The Company believes it successfully competes with these entities by offering superior personal attention to its customers, by empowering its senior lenders to make local-market credit decisions, by the convenience of its 73 retail banking centers, by offering new and innovative products and services, by capitalizing on the Texas State Bank brand name and reputation and through the dedication and motivation of its experienced officers, employees and directors