Capital One 2015 Annual Report Download - page 20

1 Capital One Financial Corporation (COF)
PART I
Item 1. Business
OVERVIEW
General
Capital One Financial Corporation, a Delaware Corporation established in 1994 and headquartered in McLean, Virginia, is a
diversified financial services holding company with banking and non-banking subsidiaries. Capital One Financial Corporation
and its subsidiaries (the “Company”) offer a broad array of financial products and services to consumers, small businesses and
commercial clients through branches, the internet and other distribution channels.
As of December 31, 2015, our principal subsidiaries included:
• Capital One Bank (USA), National Association (“COBNA”), which offers credit and debit card products, other lending
products and deposit products; and
• Capital One, National Association (“CONA”), which offers a broad spectrum of banking products and financial services
to consumers, small businesses and commercial clients.
The Company is hereafter collectively referred to as “we,” “us” or “our.” COBNA and CONA are collectively referred to as the
“Banks.” References to “this Report” or our “2015 Form 10-K” or “2015 Annual Report” are to our Annual Report on Form 10-
K for the fiscal year ended December 31, 2015. All references to 2015, 2014, 2013, 2012 and 2011, refer to our fiscal years ended,
or the dates, as the context requires, December 31, 2015, December 31, 2014, December 31, 2013, December 31, 2012
and December 31, 2011, respectively. Certain business terms used in this document are defined in the “MD&A—Glossary and
Acronyms” and should be read in conjunction with the Consolidated Financial Statements included in this Report.
As one of the nation’s ten largest banks based on deposits as of December 31, 2015, we service banking customer accounts through
the internet and mobile banking, as well as through ATMs and branch locations primarily across New York, Louisiana, Texas,
Maryland, Virginia, New Jersey and the District of Columbia. We also operate the largest online direct banking institution in the
United States (“U.S.”) by deposits. In addition to bank lending, treasury management and depository services, we offer credit and
debit card products, auto loans and mortgage banking in markets across the United States. We were the fourth largest issuer of
Visa® (“Visa”) and MasterCard® (“MasterCard”) credit cards in the United States based on the outstanding balance of credit card
loans as of December 31, 2015.
We also offer products outside of the United States principally through Capital One (Europe) plc (“COEP”), an indirect subsidiary
of COBNA organized and located in the United Kingdom (“U.K.”), and through a branch of COBNA in Canada. COEP has
authority, among other things, to provide credit card and installment loans. Our branch of COBNA in Canada has the authority to
provide credit card loans.
Recent Acquisitions and Dispositions
We regularly explore and evaluate opportunities to acquire financial services and financial assets, including credit card and other
loan portfolios, and enter into strategic partnerships as part of our growth strategy. We also explore opportunities to acquire digital
companies and related assets to improve our information technology infrastructure and to deliver on our digital strategy. We also
regularly consider the potential disposition of certain of our assets, branches, partnership agreements or lines of businesses. We
may issue equity or debt in connection with acquisitions, including public offerings, to fund such acquisitions. Below we provide
information on acquisitions and dispositions completed in 2015, 2014 and 2013:
• On December 1, 2015, we completed the acquisition of the Healthcare Financial Services business of General Electric
Capital Corporation (“GE Healthcare acquisition”). As part of this acquisition, we recorded approximately $9.2 billion in
assets, including $8.3 billion of loans.
• On November 1, 2013, we completed the acquisition of Beech Street Capital, a privately-held, national originator and
servicer of the Federal National Mortgage Association (“Fannie Mae”), the Federal Home Loan Mortgage Corporation
(“Freddie Mac”) and the Federal Housing Administration (“FHA”) multifamily commercial real estate loans. At closing,