US Bank 2014 Annual Report Download - page 23

The following pages discuss in
detail the financial results we
reported in 2014 — results that help
us enable the power of potential.
FINANCIALS TABLE OF CONTENTS
22 Management’s Discussion and Analysis
22 Overview
24 Statement of Income Analysis
30 Balance Sheet Analysis
39 Corporate Risk Profile
39 Overview
40 Credit Risk Management
56 Residual Value Risk Management
56 Operational Risk Management
56 Compliance Risk Management
57 Interest Rate Risk Management
59 Market Risk Management
60 Liquidity Risk Management
63 Capital Management
65 Fourth Quarter Summary
67 Line of Business Financial Review
71 Non-GAAP Financial Measures
73 Accounting Changes
73 Critical Accounting Policies
76 Controls and Procedures
77 Reports of Management and Independent Accountants
80 Consolidated Financial Statements and Notes
149 Five-Year Consolidated Financial Statements
151 Quarterly Consolidated Financial Data
152 Consolidated Average Balance Sheet and Related Yields
and Rates
154 Supplemental Financial Data
155 Company Information
166 Executive Officers
168 Directors
THE FOLLOWING INFORMATION APPEARS IN ACCORDANCE WITH
THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995:
This report contains forward-looking statements about U.S.Bancorp.
Statements that are not historical or current facts, including
statements about beliefs and expectations, are forward-looking
statements and are based on the information available to, and
assumptions and estimates made by, management as of the date
hereof. These forward-looking statements cover, among other
things, anticipated future revenue and expenses and the future
plans and prospects of U.S.Bancorp. Forward-looking statements
involve inherent risks and uncertainties, and important factors could
cause actual results to differ materially from those anticipated.
A reversal or slowing of the current economic recovery or another
severe contraction could adversely affect U.S.Bancorp’s revenues
and the values of its assets and liabilities. Global financial markets
could experience a recurrence of significant turbulence, which
could reduce the availability of funding to certain financial insti-
tutions and lead to a tightening of credit, a reduction of business
activity, and increased market volatility. Stress in the commercial
real estate markets, as well as a downturn in the residential real
estate markets could cause credit losses and deterioration in
asset values. In addition, U.S.Bancorp’s business and financial
performance is likely to be negatively impacted by recently enacted
and future legislation and regulation. U.S.Bancorp’s results could
also be adversely affected by deterioration in general business and
economic conditions; changes in interest rates; deterioration in the
credit quality of its loan portfolios or in the value of the collateral
securing those loans; deterioration in the value of securities held
in its investment securities portfolio; legal and regulatory devel-
opments; increased competition from both banks and non-banks;
changes in customer behavior and preferences; breaches in data
security; effects of mergers and acquisitions and related integra-
tion; effects of critical accounting policies and judgments; and
management’s ability to effectively manage credit risk, residual
value risk, market risk, operational risk, compliance risk, strategic
risk, interest rate risk, liquidity risk and reputational risk.
For discussion of these and other risks that may cause actual
results to differ from expectations, refer to the sections entitled
“Corporate Risk Profile” on pages 39 – 65 and “Risk Factors” on
pages 155 – 165 of this report. However, factors other than these also
could adversely affect U.S.Bancorp’s results, and the reader should
not consider these factors to be a complete set of all potential risks
or uncertainties. Forward-looking statements speak only as of the
date hereof, and U.S.Bancorp undertakes no obligation to update
them in light of new information or future events.
U.S. BANCORP The power of potential
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