Capital One 2007 Annual Report Download - page 120

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98
Also as of December 31, 2007, the Corporation was considered well-capitalized under Federal Reserve capital standards for bank
holding companies and, therefore, exceeded all minimum capital requirements. There have been no conditions or events since that we
believe would have changed the capital category of the Corporation or any of the Banks.
Regulatory
Filing
Basis
Ratios
Applying
Subprime
Guidance
Ratios
Minimum for Capital
Adequacy Purposes
To Be Well Capitalized
Under
Prompt Corrective Action
Provisions
December 31, 2007
Capital One Financial Corp.(1)
Tier 1 Capital 10.13% 9.49% 4.00% N/A
Total Capital 13.05 12.29 8.00 N/A
Tier 1 Leverage 9.00 9.00 4.00 N/A
Capital One Bank
Tier 1 Capital 13.48% 10.45% 4.00% 6.00%
Total Capital 16.57 13.06 8.00 10.00
Tier 1 Leverage 12.81 12.81 4.00 5.00
Capital One, N.A.
Tier 1 Capital 10.75% N/A 4.00% 6.00%
Total Capital 12.11 N/A 8.00 10.00
Tier 1 Leverage 8.37 N/A 4.00 5.00
Superior Bank
Tier 1 Capital 15.07% N/A 4.00% 6.00%
Total Capital 16.33 N/A 8.00 10.00
Tier 1 Leverage 6.71 N/A 4.00 5.00
December 31, 2006
Capital One Financial Corp.(1)
Tier 1 Capital 10.22% 9.36% 4.00% N/A
Total Capital 13.27 12.26 8.00 N/A
Tier 1 Leverage 12.35 12.35 4.00 N/A
Capital One Bank
Tier 1 Capital 12.30% 9.38% 4.00% 6.00%
Total Capital 15.94 12.39 8.00 10.00
Tier 1 Leverage 11.56 11.56 4.00 5.00
Capital One, F.S.B.(2)
Tier 1 Capital 13.01% 10.66% 4.00% 6.00%
Total Capital 14.29 11.93 8.00 10.00
Tier 1 Leverage 13.28 13.28 4.00 5.00
Capital One, N.A.
Tier 1 Capital 11.05% N/A 4.00% 6.00%
Total Capital 12.04 N/A 8.00 10.00
Tier 1 Leverage 7.61 N/A 4.00 5.00
North Fork Bank(2)
Tier 1 Capital 11.21% N/A 4.00% 6.00%
Total Capital 12.11 N/A 8.00 10.00
Tier 1 Leverage 8.09 N/A 4.00 5.00
Superior Bank
Tier 1 Capital 12.28% N/A 4.00% 6.00%
Total Capital 12.60 N/A 8.00 10.00
Tier 1 Leverage 6.16 N/A 4.00 5.00
(1) The regulatory framework for prompt corrective action is not applicable for bank holding companies.
(2) During 2007, Capital One F.S.B and North Fork Bank merged with and into CONA.
COB treats a portion of its loans as subprime under the Expanded Guidance for Subprime Lending Programs (the Subprime
Guidance) issued by the four federal banking agencies that comprise the Federal Financial Institutions Examination Council
(FFIEC), and have assessed its capital and allowance for loan and lease losses accordingly. Under the Subprime Guidance, COB
exceeds the minimum capital adequacy guidelines as of December 31, 2007.
For purposes of the Subprime Guidance, the Corporation has treated as subprime all loans in COBs targeted subprime programs to
customers either with a FICO score of 660 or below or with no FICO score. COB holds on average 200% of the total risk-based
capital charge that would otherwise apply to such assets. This results in higher levels of regulatory capital at COB.