Capital One 2010 Annual Report Download - page 137

CAPITAL ONE FINANCIAL CORPORATION
NOTES TO CONSOLIDATED STATEMENTS
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NOTE 5—LOANS
Loan Portfolio Composition
Our total loan portfolio consists of loans we own and loans underlying our securitization trusts. Prior to our January 1, 2010 adoption
of the new consolidation accounting standards, loans underlying our securitization trusts were accounted for as off-balance sheet.
These loans are now reported on our consolidated balance sheet under restricted loans for securitization investors. The table below
presents the composition of our held-for investment loan portfolio, including restricted loans for securitization investors, as of
December 31, 2010 and 2009.
The substantial increase in loans held for investment reported on our consolidated balance sheets was due to the addition of $47.6
billion of loans held for investment, primarily consisting of credit card loan receivables underlying our securitization trusts, to our
consolidated balance sheet on January 1, 2010 as a result of the adoption of the new consolidation accounting standards. After taking
into consideration the January 1, 2010 consolidation impact, loans held for investment decreased by $12.2 billion, or 10%, in 2010 to
$125.9 billion as of December 31, 2010. The decline was primarily due to the run-off of loans in businesses that we either exited or
repositioned early in the economic recession, elevated charge-offs and weak consumer demand. Additionally, the decline was
attributable to the sale of a portion of the small-ticket commercial real estate loan portfolio in 2010. The decline was partially offset by
the acquisition of the $807 million legacy Sony Card portfolio in the third quarter of 2010.
December 31,
(Dollars in millions) 2010 2009(3)
Credit Card business:
Domestic credit card loans ............................................................... $ 50,170 $ 13,374
International credit card loans ............................................................ 7,513 2,229
Total credit card loans ................................................................. 57,683 15,603
Domestic installment loans ............................................................... 3,679 6,693
International installment loans ............................................................ 9 44
Total installment loans ................................................................. 3,688 6,737
Total credit card ....................................................................... 61,371 22,340
Consumer Banking business:
Automobile ............................................................................. 17,867 18,186
Mortgage ............................................................................... 12,103 14,893
Other retail .............................................................................. 4,413 5,135
Total consumer banking ................................................................ 34,383 38,214
Total consumer(1) ...................................................................... 95,754 60,554
Commercial Banking business:
Commercial and multifamily real estate(2) .................................................. 13,396 13,843
Middle market .......................................................................... 10,484 10,062
Specialty lending ........................................................................ 4,020 3,555
Total commercial lending .............................................................. 27,900 27,460
Small-ticket commercial real estate ....................................................... 1,842 2,153
Total commercial banking .............................................................. 29,742 29,613
Other:
Other loans ............................................................................. 451 452
Total loans ................................................................................ $ 125,947 $ 90,619
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(1) Consumer loans consist of all of the loans in our Credit Card and Consumer Banking businesses.
(2) Includes construction loans and land development loans totaling $2.4 billion and $2.5 billion as of December 31, 2010 and 2009, respectively.
(3) Excludes the impact from the January 1, 2010 adoption of the new consolidation accounting standards, which resulted in the consolidation of
credit card loans underlying our securitization trusts of $47.6 billion as of January 1, 2010.