Capital One 2014 Annual Report Download - page 186

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Realized Gains and Losses on Securities and OTTI Recognized in Earnings
The following table presents the gross realized gains and losses on the sale and redemption of securities available
for sale, and the OTTI losses recognized in earnings for the years ended December 31, 2014, 2013 and 2012. We
also present the proceeds from the sale of securities available for sale for the periods presented. We did not sell any
investment securities that are held to maturity.
Table 3.9: Realized Gains and Losses and OTTI Recognized in Earnings
Year Ended December 31,
(Dollars in millions) 2014 2013 2012
Realized gains (losses):
Gross realized gains . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 55 $ 8 $ 56
Gross realized losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (34) (1) (11)
Net realized gains . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 7 45
OTTI recognized in earnings:
Credit-related OTTI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (17) (41) (52)
Intent-to-sell OTTI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (7) 00
Total OTTI recognized in earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (24) (41) (52)
Net securities losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (3) $ (34) $ (7)
Total proceeds from sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $7,417 $2,539 $16,894
Securities Pledged and Received
As part of our liquidity management strategy, we pledge securities to secure borrowings from counterparties
including the Federal Home Loan Banks and the Federal Reserve. We also pledge securities to secure trust and
public deposits and for other purposes as required or permitted by law. We pledged securities available for sale with
a fair value of $3.5 billion and $10.7 billion as of December 31, 2014 and 2013, respectively. We pledged securities
held to maturity with a carrying value of $9.0 billion and $8.2 billion as of December 31, 2014 and 2013, respectively.
Of the total securities pledged as collateral, we have encumbered $10.6 billion and $17.3 billion as of December 31,
2014 and 2013, respectively, primarily related to FHLB transactions and Public Fund deposits. We accepted pledges
of securities with a fair value of $91 million and $53 million as of December 31, 2014 and 2013, respectively,
primarily related to our derivative transactions.
Acquired Securities
The table below presents the outstanding balance, carrying value and amortized cost of the acquired credit-impaired
debt securities as of December 31, 2014 and 2013.
Table 3.10: Outstanding Balance and Carrying Value of Acquired Securities
December 31, December 31,
(Dollars in millions) 2014 2013
Outstanding balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,259 $ 4,700
Carrying value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,839 2,896
Amortized cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,354 2,432
CAPITAL ONE FINANCIAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Capital One Financial Corporation (COF)