Capital One 2000 Annual Report Download - page 54

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52 notes
Note E
BORROWINGS
Borrowings as of December 31, 2000 and 1999 were as follows:
2000 1999
Weighted Weighted
Average Average
Outstanding Rate Outstanding Rate
INTEREST-BEARING
DEPOSITS $ 8,379,025 6.67% $ 3,783,809 5.34%
OTHER BORROWINGS
Secured borrowings $ 1,773,450 6.76% $ 1,344,790 6.65%
Junior subordinated
capital income
securities 98,436 8.31 98,178 7.76
Federal funds purchased
and resale agreements 1,010,693 6.58 1,240,000 5.84
Other short-term
borrowings 43,359 6.17 97,498 3.97
Total $ 2,925,938 $ 2,780,466
SENIOR NOTES
Bank — fixed rate $ 3,154,555 6.98% $ 3,409,652 6.71%
Bank — variable rate 347,000 7.41 221,999 6.74
Corporation 549,042 7.20 548,897 7.20
Total $ 4,050,597 $ 4,180,548
Interest-bearing Deposits
As of December 31, 2000, the aggregate amount of interest-bearing
deposits with accounts equal to or exceeding $100 was $3,697,888.
Secured Borrowings
Capital One Auto Finance Corporation (formerly Summit Acceptance
Corporation), a subsidiary of the Company, currently maintains
three agreements to transfer pools of consumer loans. The agree-
ments were entered into in December 2000, May 2000 and May
1999, relating to the transfer of pools of consumer loans totaling
$425,000, $325,000 and $350,000, respectively. Proceeds from
the transfers were recorded as secured borrowings. Principal pay-
ments on the borrowings are based on principal collections net of
losses on the transferred consumer loans. The borrowings accrue
interest based on commercial paper rates and mature between
June 2006 and October 2007, or earlier depending upon the repay-
ment of the underlying consumer loans. At December 31, 2000,
and 1999, $870,185 and $290,065, respectively, of the secured
borrowings were outstanding.
Note C
ALLOWANCE FOR LOAN LOSSES
The following is a summary of changes in the allowance for loan
losses:
Year Ended December 31 2000 1999 1998
Balance at beginning
of year $ 342,000 $ 231,000 $ 183,000
Provision for loan losses 718,170 382,948 267,028
Acquisitions/other (549) 3,522 7,503
Charge-offs (772,402) (400,143) (294,295)
Recoveries 239,781 124, 673 67,764
Net charge-offs (532,621) (275,470) (226,531)
Balance at end of year $527,000$ 342,000 $ 231,000
Note D
PREMISES AND EQUIPMENT
Premises and equipment as of December 31, 2000 and 1999 were
as follows:
December 31 2000 1999
Land $ 10,917 $10,168
Buildings and improvements 279,979 197,434
Furniture and equipment 621,404 448,742
Computer software 140,712 86,626
In process 104,911 54,874
1,157,923 797,844
Less: Accumulated depreciation
and amortization (493,462) (327,112)
Total premises and equipment, net $ 664,461 $470,732
Depreciation and amortization expense was $180,289,
$122,778 and $75,005 for the years ended December 31, 2000,
1999 and 1998, respectively.