Capital One 2001 Annual Report Download - page 52

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Interest-Bearing Deposits
As of December 31, 2001, the aggregate amount of interest-bearing
deposits with accounts equal to or exceeding $100 was $4,622,996.
Bank Notes
In June 2000, the Bank entered into a Global Bank Note Program,
from which it may issue and sell up to a maximum of U.S. $5,000,000
aggregate principal amount (or the equivalent thereof in other
currencies) of senior global bank notes and subordinated global bank
notes with maturities from 30 days to 30 years. This Global Bank Note
Program must be renewed annually. During 2001, the Bank issued a
$1,250,000 five-year fixed rate bank note and a $750,000 three-year
fixed rate senior note under the Global Bank Note Program. As of
December 31, 2001 and 2000, the Bank had $2,958,067 and $994,794,
respectively, outstanding with original maturities of three and five
years. The Company has historically issued senior unsecured debt of
the Bank through its $8,000,000 Domestic Bank Note Program (of
which, up to $200,000 may be subordinated bank notes). Under the
Domestic Bank Note Program, the Bank from time to time could issue
senior bank notes at fixed or variable rates tied to London InterBank
Offering Rates (“LIBOR”) with maturities from 30 days to 30 years.
The Company did not renew such program and it is no longer
available for issuances. As of December 31, 2001 and 2000, there were
50 notes
Note C
Allowance for Loan Losses
The following is a summary of changes in the allowance for
loan losses:
Year Ended December 31 2001 2000 1999
Balance at beginning of year $527,000 $ 342,000 $ 231,000
Provision for loan losses 989,836 718,170 382,948
Acquisitions/other 14,800 (549) 3,522
Charge-offs (1,018,350) (772,402) (400,143)
Recoveries 326,714 239,781 124,673
Net charge-offs (691,636) (532,621) (275,470)
Balance at end of year $840,000 $ 527,000 $ 342,000
Note D
Premises and Equipment
Premises and equipment were as follows:
December 31 2001 2000
Land $90,377 $ 10,917
Buildings and improvements 305,312 279,979
Furniture and equipment 680,942 621,404
Computer software 216,361 140,712
In process 144,527 104,911
1,437,519 1,157,923
Less:Accumulated depreciation
and amortization (677,836) (493,462)
Total premises and equipment, net $759,683 $ 664,461
Depreciation and amortization expense was $235,997, $180,289 and
$122,778, for the years ended December 31, 2001, 2000 and 1999, re-
spectively.
Note E
Borrowings
Borrowings as of December 31, 2001 and 2000 were as follows:
2001 2000
Weighted Weighted
Average Average
Outstanding Rate Outstanding Rate
Interest-Bearing
Deposits $12,838,968 5.34% $ 8,379,025 6.67%
Senior Notes
Bank — fixed rate $4,454,041 6.96% $ 3,154,555 6.98%
Bank — variable rate 332,000 3.45 347,000 7.41
Corporation 549,188 7.20 549,042 7.20
Total $5,335,229 $ 4,050,597
Other Borrowings
Secured borrowings $3,013,418 4.62% $ 1,773,450 6.76%
Junior subordinated
capital income
securities 98,693 3.78 98,436 8.31
Federal funds purchased
and resale agreements 434,024 1.91 1,010,693 6.58
Other short-term
borrowings 449,393 2.29 43,359 6.17
Total $3,995,528 $ 2,925,938