Capital One 2005 Annual Report Download - page 91

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In November 2005, as part of the Hibernia acquisition, the Company assumed $51.5 million aggregate principal amount of
9.0% junior subordinated debentures due June 30, 2032 and $10.3 million aggregate principal amount of floating rate
(LIBOR plus 3.05%, reset quarterly) junior subordinated debentures due June 30, 2033. The junior subordinated debentures
were issued by a subsidiary of Hibernia to Coastal Capital Trust I (CCTI) and Coastal Capital Trust II (CCTII). CCTI and
CCTII are considered business trusts. The trust preferred securities represent a beneficial interest in the assets of the business
trusts.
FHLB Advances
In connection with the Hibernia acquisition, the Company assumed $1.5 billion in Federal Reserve Home Loan Bank (FHLB)
advances which are secured by the Company’ s investment in FHLB stock and by a blanket floating lien on portions of the
Company’ s residential mortgage loan portfolio. FHLB stock totaled $105.2 million at December 31, 2005 and is included in
securities available for sale.
Other Short-Term Borrowings
Revolving Credit Facility
In June 2004, the Company terminated its Domestic Revolving and Multicurrency Credit Facilities and replaced them with a
new revolving credit facility (“Credit Facility”) providing for an aggregate of $750.0 million in unsecured borrowings from
various lending institutions to be used for general corporate purposes. The Credit Facility is available to the Corporation, the
Bank, the Savings Bank, and Capital One Bank, plc. The Corporation’ s availability has been increased to $500.0 million
under the Credit Facility. All borrowings under the Credit Facility are based upon varying terms of London Interbank
ffering Rate (“LIBOR”). O
Collateralized Revolving Credit Facilities
In March 2005, COAF entered into a revolving warehouse credit facility collateralized by a security interest in certain auto
loan assets (the “Capital One Auto Loan Facility II”). The Capital One Auto Loan Facility II has the capacity to issue up to
$750.0 million in secured notes. The Capital One Auto Loan Facility II has a renewal date of March 27, 2006. The facility
does not have a final maturity date. Instead, the participant may elect to renew the commitment for another set period of time.
Interest on the facility is based on commercial paper rates. At December 31, 2005, $599.0 million was outstanding under the
f cility. a
In April 2002, COAF entered into a revolving warehouse credit facility collateralized by a security interest in certain auto
loan assets (the “Capital One Auto Facility I”). As of December 31, 2005, the Capital One Auto Facility I had the capacity to
issue up to $4.4 billion in secured notes. The Capital One Auto Facility I has multiple participants each with a separate
renewal date. The facility does not have a final maturity date. Instead, each participant may elect to renew the commitment
for another set period of time. Interest on the facility is based on commercial paper rates. At December 31, 2005 and 2004,
$381.0 million and $197.5 million, respectively, were outstanding under the facility.
Interest-bearing deposits, senior notes and other borrowings as of December 31, 2005, mature as follows:
Other
Interest-
Bearing
Deposits
Senior
Notes
Borrowings Total
2006 $ 22,162,105 $ 1,220,438 $ 6,194,521 $ 29,577,064
2007 6,512,042 460,072 3,630,304 10,602,418
2008 3,311,328 1,490,419 2,631,981 7,433,728
2009 2,897,971 496,543 1,645,657 5,040,171
20010 6,841,063 596,773 1,412,963 8,850,799
Thereafter 1,367,587 2,479,734 18,735 3,866,056
Total $ 43,092,096 $ 6,743,979 $ 15,534,161 $ 65,370,236
Note 10
S
tock Plans
The Company has two active stock-based compensation plans: one employee plan and one non-employee director plan.
Under the plans, the Company reserves common shares for the issuance in various forms including incentive stock options,
nonstatutory stock options, stock appreciation rights, restricted stock awards, restricted stock units and incentive stock
awards. The form of stock compensation is specific to each plan. Generally the exercise price of each stock option will equal
82