Capital One 2015 Annual Report Download - page 176

CAPITAL ONE FINANCIAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
157 Capital One Financial Corporation (COF)
Table 5.11: TDR—Subsequent Defaults
Year Ended December 31,
2015 2014 2013
(Dollars in millions)
Number of
Contracts Amount
Number of
Contracts Amount
Number of
Contracts Amount
Credit Card:
Domestic credit card . . . . . . . . . . . . . . . . . . . . . . . . . . . 42,808 $ 71 40,814 $ 63 41,859 $ 72
International credit card(1) . . . . . . . . . . . . . . . . . . . . . . . 33,888 81 38,195 106 47,688 138
Total credit card . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76,696 152 79,009 169 89,547 210
Consumer Banking:
Auto . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,647 99 6,651 72 9,525 68
Home loan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 2 24 5 33 3
Retail banking . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 2 75 10 126 7
Total consumer banking . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,687 103 6,750 87 9,684 78
Commercial Banking:
Commercial and multifamily real estate . . . . . . . . . . . . 0 0 5 11 14 23
Commercial and industrial . . . . . . . . . . . . . . . . . . . . . . 7 19 2 1 24 22
Total commercial lending . . . . . . . . . . . . . . . . . . . . . . 7 19 7 12 38 45
Small-ticket commercial real estate. . . . . . . . . . . . . . . . 3 0 33 3 4 0
Total commercial banking . . . . . . . . . . . . . . . . . . . . . . . . . 10 19 40 15 42 45
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85,393 $ 274 85,799 $ 271 99,273 $ 333
___________
(1) In the U.K., regulators require the acceptance of payment plan proposals in which the modified payments may be less than the contractual minimum amount.
As a result, loans entering long-term TDR payment programs in the U.K. typically continue to age and ultimately charge-off even when fully in compliance
with the TDR program terms.
Acquired Loans Accounted for Based on Expected Cash Flows
Outstanding Balance and Carrying Value of Acquired Loans
The table below presents the outstanding balance and the carrying value of Acquired Loans that are accounted for based on expected
cash flows to be collected as of December 31, 2015 and 2014. The table separately displays loans considered impaired due to their
deterioration in credit quality at acquisition and loans not considered impaired at acquisition.
Table 5.12: Acquired Loans Accounted for Based on Expected Cash Flows
December 31, 2015 December 31, 2014
(Dollars in millions) Total
Impaired
Loans
Non-Impaired
Loans Total
Impaired
Loans
Non-Impaired
Loans
Outstanding balance(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 21,151 $ 3,840 $ 17,311 $ 25,201 $ 4,279 $ 20,922
Carrying value(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19,516 2,629 16,887 23,519 2,882 20,637
__________
(1) Includes Acquired Loans from the GE Healthcare acquisition, with an outstanding balance and carrying value of $957 million and $847 million, respectively.
The gross contractual cash flows of these Acquired Loans were $1.1 billion, of which $138 million are not expected to be collected.
(2) Includes $37 million and $27 million of allowance for loan and lease losses for these loans as of December 31, 2015 and 2014, respectively. We recorded a
$10 million provision and a $11 million release of the allowance for credit losses for the years ended December 31, 2015 and 2014, respectively, for Acquired
Loans.