Capital One 2004 Annual Report Download - page 96

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Note 6
Borrowings
Borrowings as of December 31, 2004 and 2003 were as follows:
2004 2003
Outstanding
Weighted
Average
Rate Outstanding
Weighted
Average
Rate
Interest-bearing deposits $25,636,802 3.95% $22,416,332 4.03%
Senior notes
Bank—fixed rate $ 5,108,606 6.04% $ 5,242,507 6.37%
Bank—variable rate —— 20,000 2.41
Mandatory convertible securities 742,916 6.25 730,580 6.25
Corporation 1,023,268 7.37 1,022,933 7.37
Total $ 6,874,790 $ 7,016,020
Other borrowings
Secured borrowings $ 8,181,860 2.99% $ 6,415,697 2.59%
Facility Financing —— 83,762 6.86
Junior subordinated capital income securities 99,464 2.77 99,207 2.71
Federal funds purchased and resale agreements 1,154,073 1.78 45,000 0.97
Other short-term borrowings 201,622 2.10 1,152,947 1.44
Total $ 9,637,019 $ 7,796,613
Interest-Bearing Deposits
As of December 31, 2004, the Company had $25.6 billion in interest-bearing deposits of which $12.2 billion
represents large denomination certificates of $100 thousand or more, with original maturities of up to ten years.
Senior Notes
Bank Notes
Senior and Subordinated Global Bank Note Program
The Senior and Subordinated Global Bank Note Program gives the Bank the ability to issue securities to both
U.S. and non-U.S. lenders and to raise funds in U.S. and foreign currencies. The Senior and Subordinated Global
Bank Note Program had $4.9 billion and $4.7 billion outstanding at December 31, 2004 and 2003, respectively.
In January 2003, the Bank increased its capacity under the Senior and Subordinated Global Bank Note Program
to $8.0 billion and in April 2004 updated this Program. Prior to the establishment of the Senior and Subordinated
Global Bank Note Program, the Bank issued senior unsecured debt through its $8.0 billion Senior Domestic Bank
Note Program, of which $231.6 million and $526.5 million was outstanding at December 31, 2004 and 2003,
respectively. The Bank did not renew the Senior Domestic Bank Note Program for future issuances following the
establishment of the Senior and Subordinated Global Bank Note Program.
During 2004, the Company issued $500.0 million of ten-year 5.125% fixed rate senior bank notes and $500.0
million of five-year 5.00% fixed rate senior bank notes under the Senior and Subordinated Global Bank Note
Program.
In 2004, the Company repurchased senior bank notes in the amount of $124.5 million, which resulted in a pre-tax
loss of $4.3 million.
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