Capital One 2014 Annual Report Download - page 178

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156
NOTE 3—INVESTMENT SECURITIES
Our investment portfolio consists primarily of the following: U.S. Treasury and agency debt; corporate debt
securities guaranteed by U.S. government agencies; U.S. government-sponsored enterprise or agency (“Agency”)
and non-agency residential mortgage-backed securities (“RMBS”) and commercial mortgage-backed securities
(“CMBS”); other asset-backed securities (“ABS”); and other investments. The carrying value of our investments
in U.S. Treasury, Agency securities and other securities guaranteed by the U.S. government or U.S. government
agencies represented 86% and 77% of our total investment securities as of December 31, 2014 and 2013,
respectively.
Our investment portfolio includes securities available for sale and securities held to maturity. We classify securities
as available for sale or held to maturity based on our investment strategy and management’s assessment of our
intent and ability to hold the securities until maturity. During 2013, we transferred securities with a fair value of
$18.3 billion on the date of transfer, from securities available for sale to securities held to maturity. We transferred
these securities to held to maturity in consideration of changes to regulatory capital requirements under the final
Basel III capital standard, which will begin including changes in AOCI due to securities price fluctuations. The
securities included net pre-tax unrealized losses of $1.5 billion at the date of transfer. There were no such transfers
in 2014.
The table below presents the overview of our investment portfolio at December 31, 2014 and 2013.
Table 3.1: Overview of Investment Portfolio
December 31, December 31,
(Dollars in millions) 2014 2013
Securities available for sale, at fair value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 39,508 $ 41,800
Securities held to maturity, at carrying value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22,500 19,132
Total investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 62,008 $ 60,932
CAPITAL ONE FINANCIAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Capital One Financial Corporation (COF)