US Bank 2015 Annual Report Download - page 27

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The following pages discuss in detail the
nancial results we achieved in 2015–
results that reect the power of possible.
FINANCIALS TABLE OF CONTENTS
26 Management’s Discussion and Analysis
26 Overview
28 Statement of Income Analysis
33 Balance Sheet Analysis
42 Corporate Risk Prole
42 Overview
43 Credit Risk Management
58 Residual Value Risk Management
58 Operational Risk Management
58 Compliance Risk Management
59 Interest Rate Risk Management
60 Market Risk Management
61 Liquidity Risk Management
65 Capital Management
67 Fourth Quarter Summary
69 Line of Business Financial Review
73 Non-GAAP Financial Measures
75 Accounting Changes
75 Critical Accounting Policies
78 Controls and Procedures
79 Reports of Management and Independent Accountants
82 Consolidated Financial Statements and Notes
150 Five-year Consolidated Financial Statements
152 Quarterly Consolidated Financial Data
153 Supplemental Financial Data
156 Company Information
167 Executive Ofcers
169 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 nancial
markets could experience a recurrence of signicant turbulence, which
could reduce the availability of funding to certain nancial institutions
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 addi-
tion, U.S.Bancorp’s business and nancial 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 developments; litigation; 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 integration; effects of critical accounting policies and judgments;
and management’s ability to effectively manage credit risk, market risk,
operational risk, compliance risk, strategic risk, interest rate risk, liquidity
risk and reputational risk.
Additional factors could cause actual results to differ from expectations,
including the risks discussed in the “Corporate Risk Prole” section
on pages 42–67 and the “Risk Factors” section on pages 156–166
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.