Capital One 2013 Annual Report Download - page 232

CAPITAL ONE FINANCIAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The table below summarizes other comprehensive income activity and the related tax impact for the years ended
December 31, 2013, 2012 and 2011:
Table 11.3: Comprehensive Income
Year Ended December 31,
2013 2012 2011
(Dollars in millions)
Before
Tax
Provision
(Benefit)
After
Tax
Before
Tax
Provision
(Benefit)
After
Tax
Before
Tax
Provision
(Benefit)
After
Tax
Other comprehensive
income:
Net unrealized gains (losses)
on securities available for
sale ................... $ (961) $(364) $ (597) $673 $256 $417 $(119) $(41) $(78)
Net unrealized gains (losses)
on securities transferred to
held to maturity ......... (1,435) (538) (897) 0 0 00 0 0
Net unrealized gains (losses)
on cash flow hedges ...... (250) (95) (155) 120 47 73 44 18 26
Foreign currency translation
adjustments ............ 80 881 0 81 (13) 0 (13)
Other ................... 49 19 30 (1) 0 (1) (21) (7) (14)
Other comprehensive income
(loss) .................. $(2,589) $(978) $(1,611) $873 $303 $570 $(109) $(30) $(79)
NOTE 12—REGULATORY AND CAPITAL ADEQUACY
Regulation and Capital Adequacy
Bank holding companies and national banks are subject to capital adequacy standards adopted by the Federal
Reserve and the OCC, respectively. The capital adequacy standards set forth minimum risk-based and leverage
capital requirements that are based on quantitative and qualitative measures of their assets and off-balance sheet
items. Under the capital adequacy standards, bank holding companies and banks currently are required to
maintain a total risk-based capital ratio of at least 8%, a Tier 1 risk-based capital ratio of at least 4%, and a Tier 1
leverage capital ratio of at least 4% (3% for banks that meet certain specified criteria, including excellent asset
quality, high liquidity, low interest rate exposure and the highest regulatory rating) in order to be considered
adequately capitalized.
National banks also are subject to prompt corrective action capital regulations. Under prompt corrective action
regulations, a bank is considered to be well capitalized if it maintains a Tier 1 risk-based capital ratio of at least
6% (200 basis points higher than the above minimum capital standard), a total risk-based capital ratio of at least
10% (200 basis points higher than the above minimum capital standard), a Tier 1 leverage capital ratio of at least
5% and is not subject to any supervisory agreement, order or directive to meet and maintain a specific capital
level for any capital reserve. A bank is considered to be adequately capitalized if it meets these minimum capital
ratios and does not otherwise meet the well capitalized definition. Currently, prompt corrective action capital
requirements do not apply to bank holding companies.
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