Annual Report - CoBank

Forward Looking StatementsCertain of the statements contained in the 2011 AnnualReport that are not historical facts are forward-lookingstatements within the meaning of the Private SecuritiesLitigation Reform Act of 1995. Our actual results may differmaterially from those included in the forward-lookingstatements that relate to our plans, projections, expectationsand intentions. Forward-looking statements are typicallyidentified by words such as “believe,” “expect,” “anticipate,”“intend,” “estimate,” “plan,” “project,” “may,” “will,”“should,” “would,” “could” or similar expressions. Althoughwe believe that the information expressed or implied in suchforward-looking statements is reasonable, we can give noassurance that such projections and expectations will berealized or the extent to which a particular plan, projection orexpectation may be realized. These forward-lookingstatements are based on current knowledge and are subject tovarious risks and uncertainties, including, but not limited to:Potential deterioration in the agricultural, energy,communications, water and leasing industries;Our ability to successfully integrate the operations ofAgBank;Weak U.S. and global economic conditions;Legislative and regulatory actions;Government policies and developments in the UnitedStates and other countries in which we make loans;The European sovereign debt crisis and its potentialimpact on LIBOR funding markets;The effect of banking and financial services reforms;Possible amendments to, and interpretations of, riskbasedcapital guidelines;Environmental-related conditions or laws impactingour lending activities;Changes in the U.S. government’s support of theagriculture industry and agricultural exports;Actions taken by the U.S. Congress relative to GSEs,including the Federal National Mortgage Association(Fannie Mae), the Federal Home Loan MortgageCorporation (Freddie Mac), and the FederalAgricultural Mortgage Corporation (Farmer Mac);Actions taken by the U.S. government to managefiscal policy;Actions taken by the Federal Reserve to manage themonetary policy of the United States;A decrease in the credit outlook or ratings of U.S.government debt and agency debt, including FarmCredit System debt securities;The level of interest rates;Relationships between various interest rate indices;Changes in assumptions underlying the valuations offinancial instruments;Changes in the bases for our estimates underlying thereserve for credit exposure;Credit performance of the loan portfolio, portfoliogrowth and seasonal factors;Failure of our investment portfolio to perform asexpected or deterioration in the credit quality of suchinvestments;The resolution of legal proceedings and relatedmatters;Weather-related, disease and other adverse climaticor biological conditions that periodically occur thatimpact agricultural productivity and income;Nonperformance by counterparties to our derivativepositions; andOur ability to successfully execute and integrate anyfuture business combinations or strategic alliances.We expressly disclaim any obligation to update or reviseany forward-looking statements, whether as a result of newinformation, future events or otherwise, except as required bylaw.CoBank 2011 Annual Report63