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8-K
CAPITAL ONE FINANCIAL CORP filed this Form 8-K on Jul 15, 2008
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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of

The Securities Exchange Act of 1934

July 14, 2008

Date of Report (Date of earliest event reported)

 

 

CAPITAL ONE FINANCIAL CORPORATION

(Exact name of registrant as specified in its chapter)

 

 

 

Delaware   1-13300   54-1719854

(State or other jurisdiction

of incorporation)

   (Commission File Number)  

(IRS Employer

Identification No.)

 

1680 Capital One Drive,

McLean, Virginia

   22102
(Address of principal executive offices)   (Zip Code)

Registrant’s telephone number, including area code: (703) 720-1000

 

(Former name or former address, if changed since last report)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 

Item 7.01 Regulation FD Disclosure.

The Company hereby furnishes the information in Exhibit 99.1 hereto, Monthly Charge-off and Delinquency Statistics, as of and for each of the forty two months ended June 30, 2008.

Note: Information in this report (including the exhibit) furnished pursuant to Item 7.01 shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that section. This report will not be deemed an admission as to the materiality of any information in the report that is required to be disclosed solely by Regulation FD. Furthermore, the information provided in Exhibit 99.1 shall not be deemed to be incorporated by reference into the filings of the Company under the Securities Act of 1933.

 

Item 9.01 Financial Statements and Exhibits.

(c) Exhibits

 

Exhibit

  

Description

99.1

   Monthly Charge-off and Delinquency Statistics — January 2005 - June 2008

 

2

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Company has duly caused this Current Report on Form 8-K to be signed on its behalf by the undersigned hereunto duly authorized.

 

    CAPITAL ONE FINANCIAL CORPORATION
Dated: July 14, 2008   By:  

/s/ Gary L. Perlin

    Gary L. Perlin
    Chief Financial Officer

 

3

EXHIBIT INDEX

 

99.1

   Monthly Charge-off and Delinquency Statistics — January 2005 - June 2008

 

4

Exhibit 99.1

Capital One Financial Corporation

Monthly Charge-off and Delinquency Statistics

As of and for each of the months ended January 31, 2005 through June 30, 2008

National Lending Metrics (Managed Basis)

(dollars in thousands)

2008 Metrics

 

U.S. Card Metrics

    June 2008     May 2008     April 2008     March 2008     February 2008     January 2008  

Net Principal Charge-Offs

    $ 363,936     $ 354,325     $ 342,345     $ 342,098     $ 314,455     $ 345,673  

Average Loans Held for Investment

    $ 67,998,816     $ 67,748,055     $ 67,540,760     $ 67,585,454     $ 68,635,480     $ 69,407,764  

Annualized Net Charge-Off Rate

      6.42 %     6.28 %     6.08 %     6.07 %     5.50 %     5.98 %

30 Days + Delinquencies

    $ 2,618,846     $ 2,590,892     $ 2,649,401     $ 2,723,515     $ 2,871,007     $ 3,009,706  

Period-end Loans Held for Investment

    $ 68,059,998     $ 67,919,283     $ 67,874,929     $ 67,382,004     $ 68,247,741     $ 69,080,666  

30 Days + Delinquency Rate

      3.85 %     3.81 %     3.90 %     4.04 %     4.21 %     4.36 %

Auto Finance Metrics

                                     

Net Principal Charge-Offs

    $ 83,821     $ 76,399     $ 71,358     $ 84,482     $ 80,983     $ 84,058  

Average Loans Held for Investment

    $ 23,636,503     $ 24,116,305     $ 24,543,256     $ 24,816,112     $ 25,079,501     $ 25,248,955  

Annualized Net Charge-Off Rate

      4.26 %     3.80 %     3.49 %     4.09 %     3.87 %     4.00 %

30 Days + Delinquencies

    $ 1,782,101     $ 1,732,278     $ 1,680,642     $ 1,581,508     $ 1,505,937     $ 1,866,516  

Period-end Loans Held for Investment

    $ 23,401,160     $ 23,831,058     $ 24,359,398     $ 24,633,665     $ 24,891,932     $ 25,169,133  

30 Days + Delinquency Rate

      7.62 %     7.27 %     6.90 %     6.42 %     6.05 %     7.42 %

International Metrics

                                     

Net Principal Charge-Offs

    $ 47,959     $ 58,187     $ 57,184     $ 44,830     $ 51,447     $ 54,612  

Average Loans Held for Investment

    $ 10,731,540     $ 10,744,512     $ 10,828,673     $ 11,216,290     $ 11,333,331     $ 11,593,069  

Annualized Net Charge-Off Rate

      5.36 %     6.50 %     6.34 %     4.80 %     5.45 %     5.65 %

30 Days + Delinquencies

    $ 574,974     $ 561,204     $ 562,504     $ 562,158     $ 553,098     $ 533,982  

Period-end Loans Held for Investment

    $ 10,740,644     $ 10,769,717     $ 10,813,477     $ 10,987,733     $ 11,331,090     $ 11,432,842  

30 Days + Delinquency Rate

      5.35 %     5.21 %     5.20 %     5.12 %     4.88 %     4.67 %

 

1

2007 Metrics

 

U.S. Card Metrics

    December 2007     November 2007     October 2007     September 2007     August 2007     July 2007  

Net Principal Charge-Offs

    $ 288,519     $ 274,904     $ 256,897     $ 219,938     $ 206,697     $ 213,572  

Average Loans Held for Investment

    $ 69,982,501     $ 67,420,129     $ 66,770,348     $ 66,651,519     $ 66,440,231     $ 66,330,646  

Annualized Net Charge-Off Rate

      5.02 %     4.89 %     4.62 %     3.96 %     3.73 %     3.86 %

30 Days + Delinquencies

    $ 2,981,119     $ 2,847,829     $ 2,713,147     $ 2,537,022     $ 2,375,381     $ 2,155,213  

Period-end Loans Held for Investment

    $ 69,723,169     $ 67,990,190     $ 67,107,343     $ 66,687,232     $ 66,612,533     $ 66,245,322  

30 Days + Delinquency Rate

      4.28 %     4.19 %     4.04 %     3.80 %     3.57 %     3.25 %

Auto Finance Metrics

                                     

Net Principal Charge-Offs

    $ 84,902     $ 83,213     $ 80,876     $ 74,856     $ 74,207     $ 66,300  

Average Loans Held for Investment

    $ 25,207,927     $ 24,961,944     $ 24,592,611     $ 24,449,022     $ 24,074,862     $ 23,995,256  

Annualized Net Charge-Off Rate

      4.04 %     4.00 %     3.95 %     3.67 %     3.70 %     3.32 %

30 Days + Delinquencies

    $ 1,969,338     $ 1,767,019     $ 1,785,242     $ 1,739,530     $ 1,611,306     $ 1,556,262  

Period-end Loans Held for Investment

    $ 25,128,352     $ 25,054,610     $ 24,670,171     $ 24,335,242     $ 24,152,302     $ 24,040,562  

30 Days + Delinquency Rate

      7.84 %     7.05 %     7.24 %     7.15 %     6.67 %     6.47 %

International Metrics

                                     

Net Principal Charge-Offs

    $ 47,410     $ 58,774     $ 57,606     $ 50,789     $ 48,584     $ 52,660  

Average Loans Held for Investment

    $ 11,685,891     $ 11,832,306     $ 11,507,345     $ 11,250,572     $ 11,244,780     $ 10,997,697  

Annualized Net Charge-Off Rate

      4.87 %     5.96 %     6.01 %     5.42 %     5.18 %     5.75 %

30 Days + Delinquencies

    $ 558,199     $ 528,002     $ 543,803     $ 541,483     $ 508,429     $ 519,216  

Period-end Loans Held for Investment

    $ 11,656,922     $ 11,608,789     $ 11,851,963     $ 11,533,797     $ 11,278,883     $ 11,205,127  

30 Days + Delinquency Rate

      4.79 %     4.55 %     4.59 %     4.69 %     4.51 %     4.63 %

U.S. Card Metrics

    June 2007     May 2007     April 2007     March 2007     February 2007     January 2007  

Net Principal Charge-Offs

    $ 165,060     $ 214,823     $ 204,062     $ 209,545     $ 201,720     $ 213,993  

Average Loans Held for Investment

    $ 66,026,948     $ 65,493,112     $ 65,402,895     $ 66,070,552     $ 67,441,752     $ 68,281,554  

Annualized Net Charge-Off Rate

      3.00 %     3.94 %     3.74 %     3.81 %     3.59 %     3.76 %

30 Days + Delinquencies

    $ 1,981,225     $ 2,025,345     $ 1,980,238     $ 2,001,231     $ 2,209,094     $ 2,271,710  

Period-end Loans Held for Investment

    $ 66,539,623     $ 65,854,676     $ 65,627,136     $ 65,369,362     $ 67,118,371     $ 67,992,494  

30 Days + Delinquency Rate

      2.98 %     3.08 %     3.02 %     3.06 %     3.29 %     3.34 %

Auto Finance Metrics

                                     

Net Principal Charge-Offs

    $ 52,460     $ 46,053     $ 41,822     $ 35,888     $ 41,603     $ 57,709  

Average Loans Held for Investment

    $ 23,943,464     $ 23,887,915     $ 23,863,169     $ 23,762,821     $ 23,672,529     $ 23,553,386  

Annualized Net Charge-Off Rate

      2.63 %     2.31 %     2.10 %     1.81 %     2.11 %     2.94 %

30 Days + Delinquencies

    $ 1,440,811     $ 1,405,865     $ 1,226,344     $ 1,107,606     $ 1,129,479     $ 1,300,560  

Period-end Loans Held for Investment

    $ 24,067,760     $ 23,947,792     $ 23,910,793     $ 23,930,547     $ 23,920,965     $ 23,840,965  

30 Days + Delinquency Rate

      5.99 %     5.87 %     5.13 %     4.63 %     4.72 %     5.46 %

International Metrics

                                     

Net Principal Charge-Offs

    $ 47,325     $ 57,238     $ 43,294     $ 65,463     $ 56,327     $ 50,752  

Average Loans Held for Investment

    $ 10,919,338     $ 11,048,043     $ 10,978,565     $ 11,161,625     $ 11,428,599     $ 11,671,162  

Annualized Net Charge-Off Rate

      5.20 %     6.22 %     4.73 %     7.04 %     5.91 %     5.22 %

30 Days + Delinquencies

    $ 529,019     $ 529,670     $ 544,655     $ 528,903     $ 543,201     $ 530,903  

Period-end Loans Held for Investment

    $ 10,982,656     $ 11,031,586     $ 11,178,686     $ 11,071,623     $ 11,373,184     $ 11,586,212  

30 Days + Delinquency Rate

      4.82 %     4.80 %     4.87 %     4.78 %     4.78 %     4.58 %

 

2

2006 Metrics

 

U.S. Card Metrics

    December 2006     November 2006     October 2006     September 2006     August 2006     July 2006  

Net Principal Charge-Offs

    $ 216,559     $ 194,443     $ 182,626     $ 186,271     $ 161,574     $ 161,071  

Average Loans Held for Investment

    $ 67,867,172     $ 66,269,281     $ 66,191,871     $ 66,052,434     $ 65,253,525     $ 63,845,699  

Annualized Net Charge-Off Rate

      3.83 %     3.52 %     3.31 %     3.38 %     2.97 %     3.03 %

30 Days + Delinquencies

    $ 2,270,508     $ 2,198,424     $ 2,156,551     $ 2,046,947     $ 1,986,688     $ 1,911,603  

Period-end Loans Held for Investment

    $ 68,778,731     $ 66,933,944     $ 66,312,840     $ 66,287,772     $ 65,971,950     $ 64,639,034  

30 Days + Delinquency Rate

      3.30 %     3.28 %     3.25 %     3.09 %     3.01 %     2.96 %

Auto Finance Metrics

                                     

Net Principal Charge-Offs

    $ 54,615     $ 49,481     $ 49,314     $ 42,627     $ 39,515     $ 39,632  

Average Loans Held for Investment

    $ 21,715,708     $ 21,490,658     $ 21,288,006     $ 21,037,454     $ 20,808,521     $ 20,598,881  

Annualized Net Charge-Off Rate

      3.02 %     2.76 %     2.78 %     2.43 %     2.28 %     2.31 %

30 Days + Delinquencies

    $ 1,382,714     $ 1,215,163     $ 1,179,438     $ 1,095,156     $ 1,088,504     $ 1,041,930  

Period-end Loans Held for Investment

    $ 21,751,827     $ 21,576,590     $ 21,352,122     $ 21,158,797     $ 20,925,445     $ 20,636,234  

30 Days + Delinquency Rate

      6.36 %     5.63 %     5.52 %     5.18 %     5.20 %     5.05 %

International Metrics

                                     

Net Principal Charge-Offs

    $ 46,981     $ 58,496     $ 54,837     $ 47,454     $ 58,340     $ 54,047  

Average Loans Held for Investment

    $ 11,759,084     $ 11,599,893     $ 11,445,941     $ 11,660,764     $ 11,416,241     $ 11,321,255  

Annualized Net Charge-Off Rate

      4.79 %     6.05 %     5.75 %     4.88 %     6.13 %     5.73 %

30 Days + Delinquencies

    $ 534,962     $ 525,776     $ 527,732     $ 520,746     $ 528,542     $ 531,078  

Period-end Loans Held for Investment

    $ 11,750,840     $ 11,854,197     $ 11,633,865     $ 11,479,484     $ 11,689,043     $ 11,441,793  

30 Days + Delinquency Rate

      4.55 %     4.44 %     4.54 %     4.54 %     4.52 %     4.64 %

U.S. Card Metrics

    June 2006     May 2006     April 2006     March 2006     February 2006     January 2006  

Net Principal Charge-Offs

    $ 159,360     $ 153,712     $ 154,063     $ 165,479     $ 112,619     $ 141,018  

Average Loans Held for Investment

    $ 62,874,471     $ 61,749,657     $ 61,047,561     $ 60,531,094     $ 61,491,788     $ 61,956,156  

Annualized Net Charge-Off Rate

      3.04 %     2.99 %     3.03 %     3.28 %     2.20 %     2.73 %

30 Days + Delinquencies

    $ 1,813,614     $ 1,770,371     $ 1,766,971     $ 1,755,547     $ 1,908,862     $ 1,939,086  

Period-end Loans Held for Investment

    $ 63,377,950     $ 62,542,998     $ 61,526,860     $ 60,571,108     $ 61,249,418     $ 61,835,820  

30 Days + Delinquency Rate

      2.86 %     2.83 %     2.87 %     2.90 %     3.12 %     3.14 %

Auto Finance Metrics

                                     

Net Principal Charge-Offs

    $ 32,438     $ 24,955     $ 20,378     $ 28,147     $ 38,060     $ 47,895  

Average Loans Held for Investment

    $ 20,447,432     $ 20,188,298     $ 19,927,142     $ 19,653,379     $ 19,407,397     $ 19,253,593  

Annualized Net Charge-Off Rate

      1.90 %     1.48 %     1.23 %     1.72 %     2.35 %     2.99 %

30 Days + Delinquencies

    $ 933,795     $ 931,187     $ 819,220     $ 708,246     $ 730,359     $ 884,248  

Period-end Loans Held for Investment

    $ 20,558,455     $ 20,311,911     $ 20,067,229     $ 19,848,190     $ 19,495,145     $ 19,335,426  

30 Days + Delinquency Rate

      4.54 %     4.58 %     4.08 %     3.57 %     3.75 %     4.57 %

International Metrics

                                     

Net Principal Charge-Offs

    $ 58,894     $ 55,457     $ 54,635     $ 51,400     $ 46,954     $ 50,815  

Average Loans Held for Investment

    $ 11,353,194     $ 10,926,239     $ 10,352,683     $ 10,390,340     $ 10,723,913     $ 10,597,348  

Annualized Net Charge-Off Rate

      6.22 %     6.09 %     6.33 %     5.94 %     5.25 %     5.75 %

30 Days + Delinquencies

    $ 525,707     $ 536,765     $ 534,670     $ 490,893     $ 508,096     $ 499,900  

Period-end Loans Held for Investment

    $ 11,314,451     $ 11,320,819     $ 10,845,874     $ 10,322,546     $ 10,534,753     $ 10,874,416  

30 Days + Delinquency Rate

      4.65 %     4.74 %     4.93 %     4.76 %     4.82 %     4.60 %

 

3

2005 Metrics

 

U.S. Card Metrics

    December 2005     November 2005     October 2005     September 2005     August 2005     July 2005  

Net Principal Charge-Offs

    $ 149,806     $ 159,221     $ 474,646     $ 247,272     $ 186,106     $ 205,283  

Average Loans Held for Investment

    $ 61,007,634     $ 58,784,290     $ 58,413,689     $ 58,656,951     $ 58,353,037     $ 57,926,736  

Annualized Net Charge-Off Rate

      2.95 %     3.25 %     9.75 %     5.06 %     3.83 %     4.25 %

30 Days + Delinquencies

    $ 1,894,579     $ 1,863,281     $ 1,856,556     $ 1,980,173     $ 1,954,547     $ 1,916,480  

Period-end Loans Held for Investment

    $ 62,186,887     $ 59,628,324     $ 58,429,918     $ 58,623,199     $ 58,672,963     $ 57,962,410  

30 Days + Delinquency Rate

      3.05 %     3.12 %     3.18 %     3.38 %     3.33 %     3.31 %

Auto Finance Metrics

                                     

Net Principal Charge-Offs

    $ 46,512     $ 46,894     $ 40,049     $ 34,980     $ 33,371     $ 27,694  

Average Loans Held for Investment

    $ 16,313,314     $ 16,107,965     $ 15,866,491     $ 15,525,212     $ 15,130,039     $ 14,671,714  

Annualized Net Charge-Off Rate

      3.42 %     3.49 %     3.03 %     2.70 %     2.65 %     2.27 %

30 Days + Delinquencies

    $ 934,167     $ 883,513     $ 862,151     $ 730,747     $ 718,153     $ 690,655  

Period-end Loans Held for Investment

    $ 16,372,019     $ 16,239,805     $ 15,991,139     $ 15,730,713     $ 15,358,194     $ 14,895,654  

30 Days + Delinquency Rate

      5.71 %     5.44 %     5.39 %     4.65 %     4.68 %     4.64 %

International Metrics

                                     

Net Principal Charge-Offs

    $ 49,233     $ 43,813     $ 44,492     $ 44,995     $ 43,843     $ 45,283  

Average Loans Held for Investment

    $ 10,608,774     $ 10,652,561     $ 10,475,505     $ 10,516,149     $ 10,301,995     $ 10,443,825  

Annualized Net Charge-Off Rate

      5.57 %     4.94 %     5.10 %     5.13 %     5.11 %     5.20 %

30 Days + Delinquencies

    $ 470,022     $ 461,877     $ 476,072     $ 471,457     $ 468,481     $ 454,341  

Period-end Loans Held for Investment

    $ 10,651,880     $ 10,590,395     $ 10,615,342     $ 10,424,650     $ 10,609,902     $ 10,321,518  

30 Days + Delinquency Rate

      4.41 %     4.36 %     4.48 %     4.52 %     4.42 %     4.40 %

U.S. Card Metrics

    June 2005     May 2005     April 2005     March 2005     February 2005     January 2005  

Net Principal Charge-Offs

    $ 208,191     $ 220,805     $ 232,351     $ 227,399     $ 205,496     $ 210,413  

Average Loans Held for Investment

    $ 58,004,462     $ 57,730,738     $ 57,796,093     $ 57,617,898     $ 58,521,924     $ 59,042,419  

Annualized Net Charge-Off Rate

      4.31 %     4.59 %     4.82 %     4.74 %     4.21 %     4.28 %

30 Days + Delinquencies

    $ 1,859,648     $ 1,828,520     $ 1,826,922     $ 1,894,552     $ 2,055,089     $ 2,124,033  

Period-end Loans Held for Investment

    $ 58,010,865     $ 57,837,613     $ 57,866,942     $ 57,652,468     $ 58,145,332     $ 58,872,796  

30 Days + Delinquency Rate

      3.21 %     3.16 %     3.16 %     3.29 %     3.53 %     3.61 %

Auto Finance Metrics

                                     

Net Principal Charge-Offs

    $ 24,108     $ 19,358     $ 17,552     $ 36,011     $ 28,289     $ 27,861  

Average Loans Held for Investment

    $ 14,310,401     $ 14,017,584     $ 13,653,223     $ 13,188,041     $ 13,042,790     $ 10,036,477  

Annualized Net Charge-Off Rate

      2.02 %     1.66 %     1.54 %     3.28 %     2.60 %     3.33 %

30 Days + Delinquencies

    $ 593,857     $ 550,293     $ 494,509     $ 466,856     $ 469,924     $ 505,472  

Period-end Loans Held for Investment

    $ 14,520,216     $ 14,139,028     $ 13,900,062     $ 13,292,953     $ 13,086,240     $ 10,054,281  

30 Days + Delinquency Rate

      4.09 %     3.89 %     3.56 %     3.51 %     3.59 %     5.03 %

International Metrics

                                     

Net Principal Charge-Offs

    $ 41,191     $ 41,811     $ 39,338     $ 39,086     $ 34,839     $ 34,529  

Average Loans Held for Investment

    $ 10,445,194     $ 10,766,164     $ 10,687,030     $ 10,646,427     $ 10,340,137     $ 10,555,902  

Annualized Net Charge-Off Rate

      4.73 %     4.66 %     4.42 %     4.41 %     4.04 %     3.93 %

30 Days + Delinquencies

    $ 457,012     $ 463,519     $ 471,676     $ 469,445     $ 480,631     $ 442,232  

Period-end Loans Held for Investment

    $ 10,430,793     $ 10,484,687     $ 10,707,628     $ 10,658,660     $ 10,643,634     $ 10,406,093  

30 Days + Delinquency Rate

      4.38 %     4.42 %     4.41 %     4.40 %     4.52 %     4.25 %

 

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Reconciliation to GAAP Measures

Our “managed” consolidated financial statements reflect adjustments made related to effects of securitization transactions qualifying as sales under accounting principles generally accepted in the United States (“GAAP”). We generate earnings from our “managed” loan portfolio which includes both the on-balance sheet loans and off-balance sheet loans. Our “managed” income statement takes the components of the servicing and securitizations income generated from the securitized portfolio and distributes the revenue and expense to appropriate income statement line items from which they originated. For this reason, we believe the “managed” consolidated financial statements and related managed metrics to be useful to stakeholders.

Reportable Segments

We manage our business as two distinct operating segments: Local Banking and National Lending. The Local Banking and National Lending segments are considered reportable segments based on quantitative thresholds applied to the managed loan portfolio for reportable segments provided by SFAS No. 131, Disclosures about Segments of an Enterprise and Related Information. As management makes decisions on a managed basis within each segment, information about reportable segments is provided on a managed basis.

Net Charge-Off Rate

Average Loans Outstanding used in the calculation of the Net Charge-Off Rate includes an estimate of the uncollectible portion of finance charge and fee receivables. We recognize earned finance charges and fee income on open ended loans according to the contractual provisions of the credit arrangements. When we do not expect full payment of finance charges and fees, we do not accrue the estimated uncollectible portion as income. The estimated uncollectible portion of finance charges and fees is adjusted quarterly.

 

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