Capital One 2014 Annual Report Download - page 126

Our deposits include brokered deposits, which we obtained through the use of third-party intermediaries. Those
brokered deposits are reported as saving deposits and time deposits in the above table and totaled $5.1 billion and
$6.0 billion as of December 31, 2014 and 2013, respectively.
The FDIC limits the use of brokered deposits to “well-capitalized” insured depository institutions and, with a waiver
from the FDIC, to “adequately capitalized” institutions. COBNA and CONA were “well-capitalized,” as defined
under the federal banking regulatory guidelines, as of both December 31, 2014, and 2013 and therefore were
permitted to maintain brokered deposits.
Table 31 presents the contractual maturities of large-denomination domestic time deposits of $100,000 or more as
of December 31, 2014 and 2013. Our funding and liquidity management activities factor into the expected
maturities of these deposits. Based on past activity, we expect to retain a portion of these deposits as they mature.
Accordingly, we expect the actual net cash outflows will be less than the contractual maturity amounts.
Table 31: Maturities of Large-Denomination Domestic Time Deposits—$100,000 or More
December 31,
2014 2013
(Dollars in millions) Amount % of Total Amount % of Total
Up to three months . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 492 21.8% $ 517 18.1%
> 3 months to 6 months . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 403 17.8 325 11.4
> 6 months to 12 months . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 653 28.9 645 22.6
> 12 months . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 713 31.5 1,365 47.9
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,261 100.0% $ 2,852 100.0%
Short-Term Borrowings and Long-Term Debt
We access the capital markets to meet our funding needs through the issuance of senior and subordinated notes,
securitized debt obligation transactions, and federal funds purchased and securities loaned or sold under
agreements to repurchase. In addition, we may utilize short-term and long-term FHLB advances secured by our
investment securities, residential home loans, multifamily real estate loans, commercial real estate loans and
home equity lines of credit.
Our short-term borrowings include those borrowings with an original contractual maturity of one year or less and do
not include the current portion of long-term debt. The short-term borrowings, which consist of federal funds purchased
and securities loaned or sold under agreements to repurchase, and short-term FHLB advances, increased by $865
million in 2014, to $17.1 billion as of December 31, 2014, from $16.2 billion as of December 31, 2013. This increase
reflects $40.1 billion in new FHLB advances, partially offset by $39.2 billion in payoffs in 2014.
Our long-term debt, which consists of securitized debt obligations, senior and subordinated notes, and long-term
FHLB advances, increased by $7.0 billion in 2014, to $31.4 billion as of December 31, 2014, from $24.4 billion as
of December 31, 2013. The increase was primarily attributable to new senior unsecured debt issuances of $7.8 billion
and securitized debt issuances of $4.3 billion, partially offset by $2.4 billion and $3.0 billion of senior and
subordinated note and securitized debt maturities, respectively.
104 Capital One Financial Corporation (COF)