Capital One 2013 Annual Report Download - page 143

Greenpoint: Refers to our wholesale mortgage banking unit, GreenPoint Mortgage Funding, Inc.
(“Greenpoint”), which was closed in 2007.
Gross domestic product (“GDP”): The market value of all officially recognized final goods and services
produced within a country in a year, or other given period of time.
GSE or Agencies: A government sponsored enterprise is financial services corporation created by the United
States Congress. Examples of U.S. government agencies include Federal National Mortgage Association (Fannie
Mae), Federal Home Loan Mortgage Corporation (Freddie Mac) and Government National Mortgage
Association (Ginnie Mae).
Impairment: The condition when the carrying amount of an asset exceeds its fair value.
Impaired loans: A loan is considered as impaired when, based on current information and events, it is probable
that we will not be able to collect all amounts due from the borrower in accordance with the original contractual
terms of the loan.
Inactive Insured Securitizations: Securitizations as to which the monoline bond insurers have not made
repurchase requests or loan file requests to one of our subsidiaries.
ING Direct acquisition: On February 17, 2012, we completed the acquisition of substantially all of the ING
Direct business in the United States (“ING Direct”) from ING Groep N.V., ING Bank N.V., ING Direct N.V. and
ING Direct Bancorp.
Insured Securitizations: Securitizations supported by bond insurance.
Interest rate sensitivity: The exposure of net interest income to interest rate movements.
Interest rate swaps: Contracts in which a series of interest rate flows in a single currency are exchanged over a
prescribed period. Interest rate swaps are the most common type of derivative contract that we use in our asset/
liability management activities.
Investment grade: Represents Moody’s long-term rating of Baa3 or better; and/or a Standard & Poor’s, Fitch or
DBRS long-term rating of BBB- or better; or if unrated, an equivalent rating using our internal risk ratings.
Instruments that fall below these levels are considered to be non-investment grade.
Investor Entities: Entities that invest in community development entities (“CDE”) that provide debt financing to
businesses and non-profit entities in low-income and rural communities.
Leverage ratio (Basel I guideline): Tier 1 capital divided by quarterly average total assets, as defined by the
regulators.
Liquidity risk: Liquidity risk is the risk that the Company will not be able to meet its future financial obligations
as they come due, or invest in future asset growth because of an inability to obtain funds at a reasonable price
within a reasonable time period
Loan-to-value (“LTV”) ratio: The relationship expressed as a percentage, between the principal amount of a
loan and the appraised value of the collateral (i.e., residential real estate, autos, etc) securing the loan.
Managed basis: A non-GAAP presentation of financial results that includes reclassifications to present revenue
on a fully taxable-equivalent basis. Management uses this non-GAAP financial measure at the segment level,
because it believes this provides information to enable investors to understand the underlying operational
performance and trends of the particular business segment and facilitates a comparison of the business segment
with the performance of competitors.
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