Capital One 2006 Annual Report Download - page 73

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55
areas is partially offset by the run off of deposits in the hurricane-impacted areas since customers continue to use these funds
for rebuilding and recovery efforts in the hurricane-impacted Gulf Coast region. This run off began in the second quarter, and
continued through 2006.
Managed loans in the Banking segment grew modestly in the fourth quarter, but that loan growth was more than offset by
$1.5 billion in mortgage sales which were part of the Companys balance sheet downsizing in conjunction with the North
Fork acquisition. Loan balances in the areas most impacted by the Gulf Coast hurricanes continued to decline, while loan
balances continued to grow in other parts of Louisiana and in Texas. Late in the year, the Company began to see encouraging
signs of renewed growth in small business and commercial loans in the hurricane impacted areas.
The Company believes the integration of Hibernia is largely complete, and is on track to achieve the expected run-rate
synergies of $135 million in 2007.
On March 13, 2006, Capital One announced its intention to acquire North Fork Bancorporation, and closed the transaction on
December 1, 2006. Because the transaction closed in the middle of the fourth quarter of 2006, North Forks results were not
separately reported in the Banking segment in the fourth quarter results. Beginning in the first quarter of 2007, North Forks
results will be reported in the Companys segments.