Capital One 2008 Annual Report Download - page 131

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113
Note 8
Deposits and Borrowings
Borrowings as of December 31, 2008 and 2007 were as follows:
2008
2007(1)
Outstanding
Weighted
Average
Rate
Outstanding
Weighted
Average
Rate
Deposits
Non-interest bearing deposits................................................................
.
$ 11,293,852 N/A $ 11,046,549 N/A
Interest-bearing deposits(1) .....................................................................
.
97,326,937 2.64% 71,714,627 3.67%
Total deposits........................................................................................
.
$ 108,620,789 $ 82,761,176
Senior and subordinated notes
Bank notesî‚—fixed rate .........................................................................
.
$ 1,923,426 5.97% $ 3,525,699 5.49%
Corporation-fixed rate...........................................................................
.
5,355,591 6.03% 6,087,007 5.75%
Corporation-variable rate......................................................................
.
1,029,826 2.47% 1,100,000 5.43%
Total senior and subordinated notes......................................................
.
$ 8,308,843
$ 10,712,706
Other borrowings
Secured borrowings ..............................................................................
.
$ 7,510,838 2.63% $ 13,067,562 4.60%
Junior subordinated debentures.............................................................
.
1,648,268 7.38% 1,645,656 7.39%
FHLB advances.....................................................................................
.
4,877,179 2.85% 6,841,789 4.63%
Federal funds purchased and resale agreements ...................................
.
832,961 0.01% 683,186 3.19%
Other short-term borrowings(1) ..............................................................
.
402 N/A 4,574,776 5.88%
Total other borrowings..........................................................................
.
$ 14,869,648
$ 26,812,969
(1) Certain prior period amounts have been reclassified to conform with current period presentation.
Deposits
Interest-Bearing Deposits
As of December 31, 2008, the Company had $97.3 billion in interest-bearing deposits of which $11.3 billion represents large
denomination certificates of $100 thousand or more. As of December 31, 2007, the Company had $71.7 billion in interest-bearing
deposits of which $10.0 billion represents large denomination certificates of $100 thousand or more.
Borrowings
Senior and Subordinated Notes
The Senior and Subordinated Global Bank Note Program gives COBNA 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 $1.8 billion
and $3.2 billion outstanding at December 31, 2008 and 2007. Prior to the establishment of the Senior and Subordinated Global Bank
Note Program, COBNA issued senior unsecured debt through its $8.0 billion Senior Domestic Bank Note Program, of which zero and
$168.0 million was outstanding at December 31, 2008 and 2007, respectively. COBNA did not renew the Senior Domestic Bank Note
Program or future issuances following the establishment of the Senior and Subordinated Global Bank Note Program.
Prior to 2008, the Company issued senior and subordinated notes that as of December 31, 2008 had a par amount outstanding of $7.7
billion. The outstanding balance of senior and subordinated bank notes in the table above include $605 million and $104 million
related to fair value accounting hedges at December 31, 2008 and 2007, respectively. See Note 17 for a further discussion of fair value
interest rate hedges. The weighted average stated rate included in the table above is before the impact of these interest rate derivatives.
None of the senior and subordinated notes outstanding at December 31, 2008 are callable. During 2008, securities totaling $1.8 billion
were called or matured.
During 2008, the Company repurchased approximately $1.1 billion of certain senior unsecured notes, recognizing a gain of
approximately $53.3 million in non-interest income.
In September 2007, the Company issued $1.5 billion of 6.75% senior notes due September 15, 2017.