Full Description

Capital One Financial Corporation, incorporated in July 21, 1994, is a diversified banking company focused primarily on consumer and commercial lending and deposit origination. Its principal business segments are Local Banking and National Lending. Local Banking includes the Company’s branch, treasury services and national deposit gathering activities; its commercial, branch-based small business lending and certain branch originated consumer lending, and its mortgage servicing activities. The National Lending segment consists of two sub-segments: the U.S. Card sub-segment, which consists of domestic consumer credit and debit card activities and the other sub-segment, which includes the Company’s auto finance and international lending sub-segments. In February 2009, the Company completed its acquisition of Chevy Chase Bank.

On March 8, 2008, Superior Savings of New England, N.A. merged with and into CONA. In May 2008, it consolidated the business and operations of two registered broker-dealers, Capital One Securities, LLC (doing business as Capital One Investments, LLC) and Capital One Investment Services Corporation into Capital One Investments Services Corporation. In addition, in May 2008, the Company consolidated the business and operations of three insurance agencies, Capital One Agency Corp., GreenPoint Agency, Inc. and Hibernia Insurance Agency, LLC into Green Point Agency, Inc., which is known as Capital One Agency LLC.

The Company’s principal subsidiaries include 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 spectrum of banking products and financial services to consumers, small businesses and commercial clients. The Company offers its products throughout the United States. It also offers its products outside of the United States principally through Capital One Bank (Europe) plc, an indirect subsidiary of COBNA organized and located in the United Kingdom, and through a branch of COBNA in Canada.

The Local Banking segment offers traditional banking products through a branch network in Connecticut, Louisiana, New Jersey, New York, and Texas. Products include commercial and consumer loans, commercial and consumer deposit account services, commercial credit cards, treasury management services, trust services and other banking related products, such as insurance, brokerage services, merchant services, and investment banking. In addition, the Local Banking segment offers money market (liquid accounts) and certificate of deposit accounts (time deposits) through Internet channels. The U.S. Card sub-segment offers a variety of credit card and small business products, in addition to unsecured closed-end loans throughout the United States. The other National Lending sub-segment includes the auto finance sub-segment and international sub-segment. International sub-segment consists of United Kingdom and Canada credit card lending.

Capital One Financial Corporation’s loans held for investment include consumer and commercial loans. Consumer loans include credit card, installment, auto and mortgage loans. Credit card loans are reported at their principal amounts outstanding and include uncollected billed interest and fees. Capital One Financial Corporation’s portfolio includes investments in government-sponsored enterprise (GSE) mortgage-backed investments and prime non-agency mortgage-backed investments. It also includes asset-backed securities, which comprises investments backed by credit card, auto and student consumer loans, commercial mortgage backed loans, as well as minor investments backed by home equity lines of credit. The other category consists primarily of municipal securities and limited investments in equity securities, primarily related to Community Reinvestment Act (CRA) activities.