Capital One 2010 Annual Report Download - page 94

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Table 32: Short-Term Borrowings
(Dollars in millions)
Maximum
Outstanding
as of any
Month-End
Outstanding
as of
Year-End Average
Outstanding
Average
Interest
Rate
Year-End
Weighted
Average
Interest
Rate
2010:
Federal funds purchased and resale agreements $ 2,469 $ 1,517 $ 1,731 0.23% 0.13%
2009:
Federal funds purchased and resale agreements . . .
.
$ 3,778 $ 1,140 $ 2,958 0.25% 0.11%
Other Funding Sources
We also access the capital markets to meet our funding needs through loan securitization transactions and the issuance of senior and
subordinated debt. In addition, we utilize advances from the FHLB that are secured by our investment securities, residential home loan
portfolio, multifamily loans, commercial real-estate loans and home equity lines of credit for our funding needs.
We have committed loan securitization conduit lines of $1.3 billion, of which $1.1 billion was outstanding as of December 31, 2010.
Senior and subordinated notes and other borrowings, including FHLB advances, totaled $14.9 billion as of December 31, 2010, down
from $17.1 billion as of December 31, 2009. The $2.1 billion decrease was primarily attributable to a reduction in FHLB advances.
Our FHLB membership is secured by our investment in FHLB stock, which totaled $269 million as of December 31, 2010. We did not
issue any senior or subordinated debt during 2010.
Borrowing Capacity
As of December 31, 2010, we had an effective shelf registration statement filed with the U.S. Securities & Exchange Commission
(“SEC”) under which, from time to time, we may offer and sell an indeterminate aggregate amount of senior or subordinated debt
securities, preferred stock, depository shares representing preferred stock, common stock, purchase contracts, warrants, units, trust
preferred securities, junior subordinated debt securities, guarantees of trust preferred securities and certain back-up obligations. There
is no limit under this shelf registration statement to the amount or number of such securities that we may offer and sell. Under SEC
rules, the shelf registration statement, which we filed in May 2009, expires three years after filing. We did not issue any securities
under the shelf registration statement in 2010.
In addition to issuance capacity under the shelf registration statement, we have access to other borrowing programs. Table 33
summarizes our borrowing capacity as of December 31, 2010.
Table 33: Borrowing Capacity
(Dollars or dollar equivalents in millions) Effective
/
Issue Date Capacity(1) Outstanding Availability(1)
Final
Maturity(2)
FHLB Advances and Letters of Credit (3) ..................
—
9,823 1,394 8,429
—
Committed Securitization Conduits(4) .....................
—
1,263 1,056 207 11/11
________________________
(1) All funding sources are non-revolving. Funding availability under all other sources is subject to market conditions. Capacity is the maximum
amount that can be borrowed. Availability is the amount that can still be borrowed against the facility.
(2) Maturity date refers to the date the facility terminates, where applicable.
(3) The ability to draw down funding is based on membership status, and the amount is dependent upon the Banks’ ability to post collateral.
(4) Committed securitization conduits capacity is set at various dates in conjunction with each arrangement, with the last termination scheduled for
November 2011.