Capital One 2009 Annual Report Download - page 16

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PART I
Item 1. Business.
Overview
Capital One Financial Corporation (the “Corporation”) is one of the largest financial institutions in the United States, incorporated in
Delaware on July 21, 1994. The Corporation’s principal subsidiaries include Capital One Bank (USA), National Association
(“COBNA”) which currently offers credit and debit card products, other lending products, and deposit products; and Capital One,
National Association (“CONA”) which offers a broad spectrum of banking products and financial services to consumers, small
businesses and commercial clients. The Corporation and its subsidiaries are collectively referred to as the “Company.” Unless
indicated otherwise, the terms “Corporation” “Capital One” “we” “us” and “our” refer to the Corporation and its consolidated
subsidiaries.
As of December 31, 2009, we had $115.8 billion in deposits and $136.8 billion in managed loans outstanding. We are the fourth
largest issuer of Visa® (“Visa”) and MasterCard® (“MasterCard”) credit cards in the United States based on managed credit card loans
outstanding, and we are the eighth largest depository institution in the United States based on deposits.
We offer our products throughout the United States. We also offer our products outside of the United States principally through
Capital One Bank (Europe) plc, an indirect subsidiary of COBNA organized and located in the United Kingdom (the “U.K. Bank”),
and through a branch of COBNA in Canada. Our U.K. Bank has authority, among other things, to accept deposits and provide credit
card and installment loans. Our branch of COBNA in Canada has the authority to provide credit card loans.
Our common stock is listed on the New York Stock Exchange under the symbol COF and as of January 31, 2010, the Company’s
common stock was held by 16,955 shareholders. Our principal executive office is located at 1680 Capital One Drive, McLean,
Virginia 22102 (telephone number [phone]). The Corporation maintains a website at www.capitalone.com. Documents
available on our website include (i) Codes of Business Conduct and Ethics for the Corporation; (ii) the Corporation’s Corporate
Governance Principles; and (iii) charters for the Audit and Risk, Compensation, Finance and Trust Oversight, and Governance and
Nominating Committees of the Board of Directors. These documents are also available in print to any shareholder who requests a
copy. In addition, we make available free of charge through our website our annual reports on Form 10-K, quarterly reports on Form
10-Q, current reports on Form 8-K and amendments to those reports as soon as reasonably practicable after electronic filing or
furnishing such material to the SEC.
Business Description
Capital One is one of the largest financial institutions in the United States. We focus on consumer and commercial lending and deposit
taking. Our principal business segments are Credit Card, Commercial Banking and Consumer Banking. For further discussion of our
segments, see Item 7 “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Reportable
Segment Summary for Continuing Operations” and “Note 5 – Segments”.
Credit Card Segment. The credit card segment includes the Company’s domestic consumer and small business card lending, domestic
national small business lending, national closed end installment lending and the international card lending businesses in Canada and
the United Kingdom.
Commercial Banking Segment. Commercial Banking includes the Company’s lending, deposit gathering and treasury management
services to commercial real estate and middle market customers. The Commercial segment also includes the financial results of a
national portfolio of small ticket commercial real estate loans that are in run-off mode.
Consumer Banking Segment. Consumer Banking includes the Company’s branch based lending and deposit gathering activities for
small business customers as well as its branch based consumer deposit gathering and lending activities, national deposit gathering,
national automobile lending, consumer mortgage lending and servicing activities.
Chevy Chase Bank Acquisition
On February 27, 2009, the Company acquired all of the outstanding common stock of Chevy Chase Bank F.S.B., (“Chevy Chase
Bank”), one of the largest retail depository institutions in the Washington DC region, in exchange for Capital One common stock and
cash with a total value of $475.9 million. Under the terms of the stock purchase agreement, Chevy Chase Bank common shareholders
received $445 million in cash and 2.56 million shares of Capital One common stock. The acquisition of Chevy Chase Bank greatly
expanded our banking footprint in one of the strongest markets in the country.