Capital One 1999 Annual Report Download - page 54

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56
note e
BORROWINGS
Borrowings as of December 31, 1999 and 1998 were as follows:
1999 1998
Weighted Weighted
Average Average
Outstanding Rate Outstanding Rate
Interest-bearing
Deposits $ 3,783,809 5.34% $ 1,999,979 4.77%
Other borrowings
Secured
borrowings $ 1,344,790 6.65%
Junior subordinated
capital income
securities 98,178 7.76 $ 97,921 6.77%
Federal funds
purchased
and resale
agreements 1,240,000 5.84 1,227,000 5.53
Other short-term
borrowings 97,498 3.97 417,279 6.58
Total $ 2,780,466 $ 1,742,200
Senior Notes
Bank — fixed rate $ 3,409,652 6.71% $ 3,268,182 6.29%
Bank —
variable rate 221,999 6.74 146,998 5.89
Corporation 548,897 7.20 324,213 7.17
Total $ 4,180,548 $ 3,739,393
Interest-bearing Deposits
As of December 31, 1999, the aggregate amount of interest-
bearing deposits with accounts equal to or exceeding $100 was
$1,076,076.
Secured Borrowings
In November 1999, the Bank entered into an agreement to
transfer a pool of consumer loans totaling up to $500,000.
Proceeds from the transfer were recorded as a secured bor-
rowing. The facility accrues interest based on commercial paper
rates and matures in 2000; however, it may be extended for
additional one-year periods through 2008. The outstanding
balance on the secured borrowing at December 31, 1999,
was $245,625.
note c
ALLOWANCE FOR LOAN LOSSES
The following is a summary of changes in the allowance for loan
losses:
Year Ended December 31, 1999 1998 1997
Balance at beginning
of year $ 231,000 $ 183,000 $ 118,500
Provision for loan losses 382,948 267,028 262,837
Acquisitions/other 3,522 7,503 (2,770)
Charge-offs (400,143) (294,295) (223,029)
Recoveries 124,673 67,764 27,462
Net charge-offs (275,470) (226,531) (195,567)
Balance at end of year $ 342,000 $ 231,000 $ 183,000
note d
PREMISES AND EQUIPMENT
Premises and equipment as of December 31, 1999 and 1998
were as follows:
December 31, 1999 1998
Land $ 10,168 $ 10,168
Buildings and improvements 197,434 126,205
Furniture and equipment 448,742 254,070
Computer software 86,626 41,084
In process 54,874 23,325
797,844 454,852
Less: Accumulated depreciation
and amortization (327,112) (212,705)
Total premises and equipment, net $ 470,732 $ 242,147
Depreciation and amortization expense was $122,778,
$75,005 and $63,537, for the years ended December 31, 1999,
1998 and 1997, respectively.