Capital One Reports Net Loss of $0.45 per Common Share (Diluted)
Capital One Reports Net Loss of $0.45 per Common Share (Diluted)
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"While our first quarter results reflected significant pressures from the worsening economy, our balance sheet remained a source of strength," said Richard D. Fairbank, Capital One's Chairman and Chief Executive Officer. "We continued to build our allowance, increase coverage ratios, and manage our capital levels well in excess of regulatory requirements. While we remain cautious about near-term economic challenges, we are confident that our balance sheet provides the stability to weather the current economic crisis and the flexibility to generate value on the other side."
Total Company Results
-- The company added $124.1 million to allowance for loan losses in
anticipation of higher expected charge-offs in 2009. Allowance as a
percent of reported loans increased 36 basis points in the first quarter
of 2009 to 4.8 percent. The coverage ratio does not include the $9.5
billion of Chevy Chase Bank loans that were added to the balance sheet
in the first quarter.
-- Capital One now expects that managed charge-off dollars in 2009 will be
higher than the $8.6 billion outlook for 2009 projected in the fourth
quarter of 2008. The company has chosen not to specifically update its
outlook for managed charge-offs given significant uncertainty in the
economy.
-- Total managed revenues in the first quarter of 2009 of $3.7 billion
declined $221.1 million, or approximately 5.6 percent relative to the
fourth quarter of 2008. Revenue declined as a result of declining
purchase volumes, changes in the mix of earning assets, and the
combination of improving early stage delinquencies and worsening later
stage delinquencies.
-- Total deposits on March 31, 2009 were $121.1 billion, including $14.0
billion of deposits from the acquisition of Chevy Chase Bank in the
first quarter. (Chevy Chase Bank deposits are reported in the Other
segment for the first quarter only.) Total deposits increased 11.5
percent from the fourth quarter of 2008.
-- Managed loans held for investment increased by $3.4 billion, or 2.3
percent, from the fourth quarter of 2008 to $150.3 billion at March 31,
2009 and increased $2.3 billion, or 1.6 percent, relative to the year
ago quarter. The first quarter of 2009 includes the addition of $9.5
billion of Chevy Chase Bank loans, which appear in the Other segment.
-- Non-interest expense declined $202.0 million in the first quarter of
2009 as compared to the fourth quarter of 2008 as a result of the
company's continuing efforts to achieve operating efficiency
improvements and lower marketing expenses in the current economic
environment. The managed efficiency ratio decreased 162 basis points to
46.31 percent in the first quarter of 2009 from 47.94 percent in the
fourth quarter of 2008.
-- Tangible common equity to tangible managed assets, or "TCE
ratio," was 4.8 percent on March 31, 2009, an improvement of 20
basis points from the pro forma year-end level of 4.6 percent. The Tier
1 risk-based capital ratio of an estimated 11.4 percent, continues to be
well above the regulatory minimum.
"Deposits now comprise approximately two thirds of our funding, providing a lower cost of funds while enabling us to support our lending without participating in any government-assisted funding program such as TLGP or TALF," said Gary L. Perlin, Capital One's Chief Financial Officer. "Our ample liquidity, coupled with solid capital ratios, provides a strong balance sheet foundation from which we can serve the needs of our consumer and commercial customers on Main Street."
Segment Results
Local Banking Segment highlights
The Local Banking business posted a net loss of $36.2 million in the quarter. Revenues declined as a result of falling interest rates and provision expense remained elevated in the current economic environment.
During the quarter, Local Banking focused on optimizing its deposit strategy. It maintained disciplined pricing and focused efforts on the deposit segments that drive the most profitable and enduring customer relationships. Managed loans in the quarter declined by 1.4 percent. Expected run off of residential mortgage loans more than offset growth in the middle market commercial franchise.
The increase in the non-performing loan percentage in the quarter resulted from continuing economic stress in the metro New York City market, and to a lesser degree, in Louisiana and Texas. Improvement in the Local Banking charge-off rate in the first quarter was driven by the fact that the company took several sizeable charge-offs related to specific loans in its construction portfolio in the fourth quarter of 2008, as well as a reduction in residential mortgage foreclosures as it held off in anticipation of the announcement of the administration's mortgage modification program. The company continues to review the administration's proposal.
-- Local Banking reported a net loss for the first quarter of 2009 of $36.2
million, versus a net loss in the fourth quarter of 2008 of $6.5
million. Net income for Local Banking in the first quarter of 2008 was
$75.8 million.
-- The net charge-off rate decreased 14 basis points to 76 basis points in
the first quarter of 2009 from 90 basis points in the fourth quarter of
2008, while non-performing loans as a percent of loans held for
investment of 1.77 percent increased from 1.25 percent at the end of the
fourth quarter of 2008.
-- Loans held for investment of $44.5 billion declined $624.3 million, or
1.4 percent, from the fourth quarter of 2008, and were up slightly over
the first quarter of 2008.
-- Local Banking deposits increased slightly in the first quarter of 2009
to $79.1 billion, up $176.3 million from $78.9 billion at the end of the
fourth quarter of 2008. Deposits increased $5.7 billion, or 7.8
percent, from March 31, 2008.
National Lending Segment highlights
The National Lending segment contains the results of the company's U.S. Card, Auto Finance and International Lending businesses. For details on each of these subsegments' results, please refer to the Financial Supplement.
All National Lending businesses reported profits in the first quarter of 2009 -- U.S. Card delivered $2.4 million, the Auto Finance business reported $71.4 million, and International contributed $2.0 million- - for a total net income in the first quarter of $75.9 million.
Economic deterioration continued at a rapid pace during the first quarter, particularly in labor markets, driving increasing delinquency and charge-off rates across the company's lending businesses, with the exception of Auto Finance. The U.S. Card charge-off rate increased to 8.4 percent for the first quarter of 2009, above the 8.1 percent charge-off rate expectation articulated in the fourth quarter of 2008. Seasonal weakening in bankruptcy trends and declining loan balances resulted in higher charge-off rates compared to the fourth quarter of 2008. The company expects further increases in U.S. Card charge-off rate through 2009 as the economy continues to weaken. Credit trends in the international business reflect increasing economic deterioration in the UK and Canada. While the Canadian portfolio had been relatively stable for several quarters, the Canadian economy and credit trends began to show signs of weakness in the first quarter.
Auto Finance delinquencies and charge-off rates improved in the first quarter as a result of expected seasonality, improved used car prices and recovery values, and solid performance in recent originations.
While the company originated several billion dollars of new loans in the quarter and added $9.5 billion of Chevy Chase Bank loans, ending loan balances grew by only $3.4 billion.
-- National Lending segment revenues of $3.1 billion were down $267.2
million, or 8.0 percent, in the first quarter of 2009 compared to the
fourth quarter of 2008, and down $567.6 million, or 15.6 percent,
relative to the first quarter of 2008.
-- The company expects the full year U.S. Card revenue margin to be around
15 percent.
-- The delinquency rate was 5.70 percent as of March 31, 2008, a decline of
23 basis points from 5.93 percent as of December 31, 2008.
-- The managed net charge-off rate for the National Lending segment
increased 89 basis points in the first quarter of 2008 to 7.55 percent
from 6.66 percent in the fourth quarter of 2008. The company expects the
U.S. Card monthly charge-off rate to cross 10 percent in the next couple
of months.
-- Loans held for investment declined $5.4 billion from $101.1 billion at
end of 2008 to $95.8 billion at the end of the first quarter of 2009 and
down 7.0 percent relative to year end 2008.
The company generates earnings from its managed loan portfolio, which includes both on-balance sheet loans and securitized (off-balance sheet) loans. For this reason, the company believes managed financial measures to be useful to stakeholders. In compliance with Regulation G of the Securities and Exchange Commission, the company is providing a numerical reconciliation of managed financial measures to comparable measures calculated on a reported basis using generally accepted accounting principles (GAAP). Please see the schedule titled "Reconciliation to GAAP Financial Measures" attached to this release for more information.
Forward looking statements
The company cautions that its current expectations in this release, in the presentation slides available on the company's website and in its Form 8-K dated April 21, 2009 including those regarding total managed charge-off dollars in 2009, the projected charge-off rate and revenue margin in the U.S. Card subsegment; and the company's plans, objectives, expectations, and intentions, are forward-looking statements. Actual results could differ materially from current expectations due to a number of factors, including: general economic conditions in the U.S., the UK, or the company's local markets, including conditions affecting consumer income, confidence, spending, and savings which may affect consumer bankruptcies, defaults, charge-offs, deposit activity, and interest rates; changes in the labor and employment market; changes in the credit environment; the company's ability to execute on its strategic and operational plans; competition from providers of products and services that compete with the company's businesses; increases or decreases in the company's aggregate accounts and balances, or the growth rate and/or composition thereof; changes in the reputation of or expectations regarding the financial services industry or the company with respect to practices, products or financial condition; financial, legal, regulatory, tax or accounting changes or actions, including with respect to any litigation matter involving the company; and the success of the company's marketing efforts in attracting or retaining customers. A discussion of these and other factors can be found in the company's annual report and other reports filed with the Securities and Exchange Commission, including, but not limited to, the company's reports on Form 10-K for the fiscal year ended December 31, 2008.
About Capital One
Capital One Financial Corporation (www.capitalone.com) is a financial holding company whose subsidiaries, which include Capital One, Capital N.A. and Capital One Bank (USA), N.A., collectively had $121 billion in deposits and $150 billion in managed loans outstanding as of March 31, 2009. Headquartered in McLean, Virginia, Capital One offers a broad spectrum of financial products and services to consumers, small businesses and commercial clients. Capital One, N.A. and Chevy Chase Bank, F.S.B. have approximately 1,000 branch locations primarily in New York, New Jersey, Texas, Louisiana, Maryland, Virginia, and the District of Columbia. A Fortune 500 company, Capital One trades on the New York Stock Exchange under the symbol "COF" and is included in the S&P 100 index.
NOTE: First quarter 2009 financial results, SEC Filings, and earnings conference call slides are accessible on Capital One's home page (www.capitalone.com). Choose "Investors" on the bottom of the home page to view and download the earnings press release, slides, and other financial information. Additionally, a podcast and webcast of today's 5:00 pm (ET) earnings conference call is accessible through the same link.
CAPITAL ONE FINANCIAL CORPORATION (COF)
FINANCIAL & STATISTICAL SUMMARY
REPORTED BASIS
(in millions, except
per share data and as 2009 2008 2008
noted) Q1 (12) Q4 Q1
----------------------- ------- ---- ----
Earnings
(Reported Basis)
Net Interest Income $1,786.8 $1,802.4 $1,811.9
Non-Interest Income 1,090.3(2) 1,368.3(2) 2,056.5(2),(6),(7)
------- ------- -------
Total Revenue (1) 2,877.1 3,170.7 3,868.4
Provision
for Loan Losses 1,279.1 2,098.9 1,079.1
Marketing Expenses 162.7 264.9 297.8
Restructuring Expenses 17.6 52.8 52.8
Goodwill Impairment
Charge - 810.9(9) -
Operating
Expenses (3) 1,564.8 1,629.3 1,471.7(4)
------- ------- -------
Income (Loss)
Before Taxes (147.1) (1,686.1) 967.0
Tax Rate 40.9% 17.2% 34.6%
Income (Loss)
From Continuing
Operations,
Net of Tax $(86.9) $(1,396.3) $632.6
Loss From Discontinued
Operations,
Net of Tax (25.0) (25.2) (84.1)(8)
----- ----- -----
Net Income (Loss) $(111.9) $(1,421.5) $548.5
------- --------- ------
Net Income
(Loss) Available
to Common
Shareholders (F) $(176.1) $(1,454.3) $548.5
----------------- ------- --------- ------
Common Share
Statistics
Basic EPS: (G)
Income (Loss) From
Continuing
Operations $(0.39) $(3.67) $1.71
Loss From
Discontinued
Operations $(0.06) $(0.07) $(0.23)
------ ------ ------
Net Income (Loss) $(0.45) $(3.74) $1.48
Diluted EPS: (G)
Income (Loss) From
Continuing
Operations $(0.39) $(3.67) $1.70
Loss From
Discontinued
Operations $(0.06) $(0.07) $(0.23)
------ ------ ------
Net Income (Loss) $(0.45) $(3.74) $1.47
Dividends Per
Common Share $0.375 $0.375 $0.375
Tangible Book Value
Per Common Share
(period end) $25.11 $28.24 $29.94
Stock Price Per
Common Share
(period end) $12.24 $31.89 $49.22
Total Market
Capitalization
(period end) $4,806.6 $12,411.6 $18,442.7
Common Shares
Outstanding
(period end) 392.7 389.2 374.7
Shares Used to
Compute Basic EPS 390.5 389.0 370.7
Shares Used to
Compute Diluted EPS 390.5 389.0 372.3
-------------------- ----- ----- -----
Reported Balance
Sheet Statistics
(period average) (A)
Average Loans
Held for Investment $103,445 $99,335 $99,819
Average Earning
Assets $144,457 $137,799 $127,820
Average Assets $168,454 $161,976 $149,460
Average Interest
Bearing Deposits $100,852 $93,144 $74,167
Total Average
Deposits $112,138 $104,093 $84,779
Average Equity $27,002 $26,658(11) $24,569
Return on Average
Assets (ROA) (0.21)% (3.45)% 1.69%
Return on Average
Equity (ROE) (1.29)% (20.95)% 10.30%
--------------- ----- ------ -----
Reported Balance Sheet
Statistics
(period end) (A)
Loans Held
for Investment $105,527 $101,018 $98,356
Total Assets $177,357 $165,945 $150,428
Interest Bearing
Deposits $108,696 $97,327 $76,624
Total Deposits $121,119 $108,621 $87,695
-------------- -------- -------- -------
Performance Statistics
(Reported) (A)
Net Interest Income
Growth (annualized) (3)% (1)% 11%
Non Interest Income
Growth (annualized) (81)% (77)% (19)%
Revenue Growth
(annualized) (37)% (38)% (5)%
Net Interest Margin 4.95% 5.23% 5.67%
Revenue Margin 7.97% 9.20% 12.11%
Risk Adjusted
Margin (B) 4.93% 6.17% 9.71%
Non Interest Expense
as a % of Average
Loans Held for
Investment (annualized) 6.75% 7.84%(10) 7.30%
Efficiency Ratio (C) 60.04% 59.74%(10) 45.74%
-------------------- ----- ----- -----
Asset Quality
Statistics
(Reported) (A)
Allowance $4,648 $4,524 $3,273
Allowance as a
% of Reported
Loans Held
for Investment 4.84%(5) 4.48% 3.33%
Net Charge-Offs $1,097 (5) $1,045 $767
Net Charge-Off Rate 4.41%(5) 4.21% 3.07%
Delinquency
Rate (30+ days) 3.99%(5) 4.37% 3.26%
--------------- ---- ---- ----
Full-time equivalent
employees (in
thousands) 27.5 23.7 25.4
-------------------- ---- ---- ----
CAPITAL ONE FINANCIAL CORPORATION (COF)
FINANCIAL & STATISTICAL SUMMARY
MANAGED BASIS (*)
2009 2008 2008
(in millions) Q1 (12) Q4 Q1
------------- ------- ---- ----
Earnings
(Managed Basis)
Net Interest Income $2,743.8 $2,767.9 $2,976.8
Non-Interest Income 986.2(2) 1,183.2(2) 1,606.7(2),(6),(7)
----- ------- -------
Total Revenue (1) 3,730.0 3,951.1 4,583.5
Provision for
Loan Losses 2,132.0 2,879.3 1,794.2
Marketing Expenses 162.7 264.9 297.8
Restructuring Expenses 17.6 52.8 52.8
Goodwill Impairment
Charge - 810.9(9) -
Operating Expenses (3) 1,564.8 1,629.3 1,471.7(4)
------- ------- -------
Income (Loss)
Before Taxes (147.1) (1,686.1) 967.0
Tax Rate 40.9% 17.2% 34.6%
Income (Loss)
From Continuing
Operations, Net of Tax $(86.9) $(1,396.3) $632.6
Loss From Discontinued
Operations, Net of Tax (25.0) (25.2) (84.1)(8)
----- ----- -----
Net Income (Loss) $(111.9) $(1,421.5) $548.5
------- --------- ------
Net Income
(Loss) Available
to Common
Shareholders (F) $(176.1) $(1,454.3) $548.5
----------------- ------- --------- ------
Managed Balance Sheet
Statistics (period
average) (A)
Average Loans Held
for Investment $147,385 $146,586 $149,719
Average Earning Assets $185,899 $182,660 $175,709
Average Assets $210,133 $207,240 $198,516
Return on Average
Assets (ROA) (0.17)% (2.70)% 1.27%
----------------- ----- ----- ----
Managed Balance Sheet
Statistics
(period end) (A)
Loans Held for
Investment $150,335 $146,937 $148,037
Total Assets $219,883 $209,907 $199,362
Tangible Assets(D) $206,161 $197,404 $185,962
Tangible Common
Equity (E) $9,862 $10,990 $11,220
Tangible Common Equity
to Tangible
Assets Ratio 4.78% 5.57% 6.03%
% Off-Balance Sheet
Securitizations 30% 31% 34%
------------------- -- -- --
Performance Statistics
(Managed) (A)
Net Interest Income
Growth (annualized) (3)% (17)% (3)%
Non Interest Income
Growth (annualized) (67)% (43)% 10%
Revenue Growth
(annualized) (22)% (25)% 1%
Net Interest Margin 5.90% 6.06% 6.78%
Revenue Margin 8.03% 8.65% 10.43%
Risk Adjusted
Margin (B) 3.74% 4.65% 7.06%
Non Interest Expense as
a % of Average Loans
Held for Investment
(annualized) 4.74% 5.31%(10) 4.87%
Efficiency Ratio (C) 46.31% 47.94%(10) 38.61%
-------------------- ----- ----- -----
Asset Quality
Statistics
(Managed) (A)
Net Charge-Offs $1,991 (5) $1,826 $1,482
Net Charge-Off Rate 5.52%(5) 4.98% 3.96%
Delinquency Rate
(30+ days) 4.36%(5) 4.49% 3.56%
---------------- ---- ---- ----
(*) The information in this statistical summary reflects the adjustment to
add back the effect of securitization transactions qualifying as sales
under generally accepted accounting principles. See accompanying schedule
- "Reconciliation to GAAP Financial Measures".
CAPITAL ONE FINANCIAL CORPORATION (COF)
FINANCIAL & STATISTICAL SUMMARY NOTES
(1) In accordance with the Company's finance charge and fee revenue
recognition policy, the amounts billed to customers but not recognized
as revenue were as follows: Q1 2009- $540.0 million, Q4 2008 - $591.0
million, and Q1 2008 - $407.6 million.
(2) Includes the impact from the decrease in fair value of the
interest-only strips of $118.7 million in Q1 2009 and $131.0 million
in Q4 2008. In Q1 2008 the Company recorded an increase of $42.8
million to its interest-only strips.
(3) Includes core deposit intangible amortization expense of $49.2 million
in Q1 2009, $46.0 million in Q4 2008, and $49.8 million in Q1 2008 and
integration costs of $23.6 million in Q1 2009, $3.2 million in Q4
2008, and $28.9 million in Q1 2008.
(4) In Q4 2007, the Company recognized a pre-tax charge of approximately
$140 million for liabilities in connection with the Visa antitrust
lawsuit settlement with American Express and estimated possible
damages in connection with other pending Visa litigation. In Q1 2008,
the Company, in connection with the Visa initial public offering
(IPO), reversed approximately $91 million of these legal liabilities.
(5) Excludes the impact from the Chevy Chase Bank, FSB acquired loan
portfolio.
(6) In Q1 2008 the Company recorded a gain of $109.0 million in
non-interest income from the redemption of 2.5 million shares related
to the Visa IPO.
(7) In Q1 2008 the Company repurchased approximately $1.0 billion of
certain senior unsecured debt, recognizing a gain of $52.0 million in
non-interest income.
The Company initiated the repurchases to take advantage of the rate
environment and replaced the borrowings with lower-rate unsecured
funding.
(8) In Q1 2008 the Company recorded a pre-tax expense of $104.2 million in
discontinued operations to cover expected future claims made under
representations and warranties provided by the Company on loans
previously sold to third parties by GreenPoint's mortgage origination
operation.
(9) In Q4 2008 the Company recorded impairment of goodwill in its Auto
Finance sub-segment of $810.9 million.
(10) Excludes the impact of the goodwill impairment of $810.9 million.
(11) Average equity includes the impact of the Company's participation in
the U.S. Treasury's Capital Purchase Program. The Company issued
3,555,199 preferred shares and 12,657,960 warrants to purchase common
shares, while receiving proceeds of $3.56 billion. The allocated
fair value for the preferred shares and the warrants to purchase
common shares was $3.06 billion and $491.5 million, respectively.
The warrants to purchase common shares are included in paid-in
capital on the balance sheet.
(12) Effective February 27, 2009 the Company acquired Chevy Chase Bank,
FSB for $475.9 million, which included $9.8 billion in loans and
$13.6 billion in deposits. The Company paid cash of $445.0 million
and issued 2.6 million shares valued at $30.9 million. See schedule
titled "Impact of Chevy Chase Bank, FSB (CCB) Acquisition" for impact
on certain balances, statistics and metrics.
STATISTICS / METRIC DEFINITIONS
-------------------------------
(A) Based on continuing operations. Average equity and return on equity
are based on the Company's stockholders' equity.
(B) Risk adjusted margin equals total revenue less net charge-offs as a
percentage of average earning assets.
(C) Efficiency ratio equals non-interest expense less restructuring
expense divided by total revenue.
(D) Tangible assets include managed assets less intangible assets.
(E) Includes stockholders' equity less preferred shares less intangible
assets and related deferred tax liabilities. Tangible Common Equity
on a reported and managed basis is the same.
(F) Net income (loss) available to common shareholders equals net income
(loss) less dividends on preferred shares.
(G) Earnings per share is based on net income (loss) available to common
shareholders.
CAPITAL ONE FINANCIAL CORPORATION (COF)
IMPACT OF CHEVY CHASE BANK, FSB (CCB) ACQUISITION
Q1 2009
-------
(in millions, except per share data and COF w/out
as noted) COF CCB (3) CCB
--------------------------------------- --- ------- ---------
Earnings (Reported Basis)
Total Revenue $2,877.1 $35.9 $2,841.2
Provision for Loan Losses 1,279.1 0.4 1,278.7
Marketing Expenses 162.7 0.5 162.2
Restructuring Expenses 17.6 - 17.6
Operating Expenses 1,564.8 75.0 1,489.8
------- ---- -------
Income (Loss) From Continuing Operations,
Net of Tax (86.9) (23.2) (63.7)
Loss From Discontinued Operations,
Net of Tax (25.0) - (25.0)
Net Income (Loss) $(111.9) $(23.2) $(88.7)
------- ------ -----
Net Income (Loss) Available to Common
Shareholders $(176.1) $(23.2) $(152.9)
------------------------------------- ------- ------ ------
Common Share Statistics
Diluted EPS $(0.45) $(0.39)
Shares Used to Compute Diluted EPS 390.5 389.6
---------------------------------- ----- -----
Reported Balance Sheet Statistics
(period end)(4)
Investment Securities $36,418 $1,304 $35,114
Loans (1) $105,800 $9,701 $96,099
Less: Allowance for Loan and
Lease Losses $(4,648) $- $(4,648)
------- -- -------
Net Loans $101,152 $9,701 $91,451
Goodwill $13,077 $1,114 $11,963
Core Deposit Intangible $1,005 $227 $778
Total Assets $177,357 $15,994 $161,363
Total Deposits $121,119 $14,045 $107,074
Borrowings $22,868 $1,097 $21,772
---------- ------- ------ -------
Return on Average Assets (ROA) (period
average)(4)
ROA (Reported) (0.21)% (0.19)%
ROA (Managed) (0.17)% (0.15)%
------------- ----- -----
Managed Balance Sheet Statistics
(period end)(4)
Loans (1) $150,608 $9,701 $140,907
Tangible Assets $206,161 $191,552
Tangible Common Equity $9,862 $11,133
Tangible Common Equity to Tangible
Assets Ratio 4.78% 5.81%
---------------------------------- ---- ----
Revenue & Expense Statistics
Revenue Margin (Reported) 7.97% 8.12%
Revenue Margin (Managed) 8.03% 8.15%
------------------------ ---- ----
Acquired Loan Portfolio (2)
Balance at 2/27/09 before fair value
adjustments $11,684
Fair value adjustments:
Credit Mark $(2,206)
Yield Mark $364
----
Balance at 2/27/09 after fair value
adjustments $9,842
------
Charge-offs applied to credit mark $42
Acquired loans delinquency (30+
days) balance $924
Delinquency rate (30+ days) 9.77%
--------------------------- ----
(1) Loans are loans held for investment and loans held for sale and
include the acquired loan portfolio.
(2) Includes loans accounted for under SFAS 141R and SOP 03-3. Charge-offs
incurred on the acquired portfolio are applied against the credit mark.
The yield mark is amortized against the loan yield over the expected life
of the loans.
(3) Includes activity for CCB since acquisition date of February 27, 2009
and costs incurred directly by COF as a result of the acquisition.
(4) Based on continuing operations.
CAPITAL ONE FINANCIAL CORPORATION (COF)
SEGMENT FINANCIAL & STATISTICAL SUMMARY FOR CONTINUING OPERATIONS
MANAGED BASIS (1)
2009 2008 2008
(in thousands) Q1 Q4 Q1
-------------- -- -- --
Local Banking (6):
Interest Income $1,324,980 $1,512,139 $1,575,325
Interest Expense 725,951 869,723 1,008,371
------- ------- ---------
Net interest
income $599,029 $642,416 $566,954
Non-interest
income 184,510 189,814 215,469
Provision for
loan losses 219,369 214,154 60,394
Other non-
interest expenses 619,854 628,110 605,351
Income tax provision (19,490) (3,512) 40,837
------- ------ ------
Net income (loss) $(36,194) $(6,522) $75,841
======== ======= =======
Loans Held for
Investment $44,458,675 $45,082,981 $44,197,085
Average Loans
Held for
Investment $44,836,954 $44,810,117 $43,887,387
Core Deposits(2) $67,848,575 $67,546,102 $62,811,696
Total Deposits $79,114,684 $78,938,391 $73,387,227
Loans Held for
Investment Yield 5.43% 6.08% 6.75%
Net Interest
Margin -Loans (3) 2.28% 2.11% 1.92%
Net Interest
Margin -
Deposits (4) 1.89% 2.12% 1.93%
Efficiency Ratio (5) 79.11% 75.47% 77.37%
Net charge-off rate 0.76% 0.90% 0.31%
Non Performing
Loans $785,279 $565,791 $249,055
Foreclosed Assets 63,173 63,970 24,790
------ ------ ------
Non Performing
Assets (9) $848,452 $629,761 $273,845
Non Performing
Loans as a %
of Loans Held
for Investment 1.77% 1.25% 0.56%
Non Performing
Asset Rate (9) 1.91% 1.39% 0.62%
Non-Interest
Expenses as a %
of Average Loans
Held for Investment 5.53% 5.61% 5.52%
Number of Active ATMs 1,338 (12) 1,311 1,297
Number of
Locations 744 (12) 738 745
National Lending (8):
Interest Income $2,837,945 $3,104,769 $3,530,017
Interest Expense 776,254 921,542 1,121,434
------- ------- ---------
Net interest
income $2,061,691 $2,183,227 $2,408,583
Non-interest
income 1,005,446 1,151,066 1,226,114
Provision for
loan losses 1,848,955 2,602,101 1,677,220
Goodwill
impairment charge - 810,876 (10) -
Other non-
interest expenses 1,100,770 1,201,764 1,279,171
Income tax
provision 41,532 (169,060) 236,203
------ -------- -------
Net income (loss) $75,880 $(1,111,388) $442,103
======= =========== ========
Loans Held for
Investment $95,753,037 $101,147,134 $103,003,402
Average Loans
Held for
Investment $98,680,911 $101,038,849 $104,973,633
Core Deposits(2) $478 $2,219 $2,171
Total Deposits $1,279,562 $1,459,131 $1,774,690
Loans Held for
Investment Yield 11.50% 12.29% 13.45%
Net Interest Margin 8.36% 8.64% 9.18%
Revenue Margin 12.43% 13.20% 13.85%
Risk Adjusted Margin 4.88% 6.54% 8.51%
Non-Interest
Expenses as a %
of Average Loans
Held for Investment 4.46% 4.76% (11) 4.87%
Efficiency Ratio (5) 35.89% 36.04% (11) 35.19%
Net charge-off rate 7.55% 6.66% 5.34%
Delinquency Rate
(30+ days) 5.70% 5.93% 4.73%
Number of Loan
Accounts (000s) 42,549 44,816 48,065
Other (6):
Net interest
income $83,033 $(57,763) $1,313
Non-interest
income (203,804) (157,700) 165,102
Provision for
loan losses 63,633 63,043 56,598
Restructuring
expenses 17,627 52,839 52,759
Other non-interest
expenses 6,841 64,354 (115,004)
Income tax provision
(benefit) (82,265) (117,284) 57,451
------- -------- ------
Net income (loss) $(126,607) $(278,415) $114,611
========= ========= ========
Loans Held for
Investment $10,123,282 $706,639 $836,041
Core Deposits(2) $37,853,289 $27,067,784 $10,729,004
Total Deposits $40,724,652 $28,223,267 $12,533,025
Total:
Interest Income $3,888,885 $4,205,821 $4,628,257
Interest Expense 1,145,132 1,437,941 1,651,407
--------- --------- ---------
Net interest
income $2,743,753 $2,767,880 $2,976,850
Non-interest
income 986,152 1,183,180 1,606,685
Provision for
loan losses 2,131,957 2,879,298 1,794,212
Restructuring
expenses 17,627 52,839 52,759
Goodwill
impairment charge - 810,876 -
Other non-interest
expenses 1,727,465 1,894,228 1,769,518
Income tax
provision (60,223) (289,856) 334,491
------- -------- -------
Net income (loss) $(86,921) $(1,396,325) $632,555
======== =========== ========
Loans Held for
Investment $150,334,994 $146,936,754 $148,036,528
Core Deposits(2) $105,702,342 $94,616,105 $73,542,871
Total Deposits $121,118,898 $108,620,789 $87,694,942
CAPITAL ONE FINANCIAL CORPORATION (COF)
LOCAL BANKING SEGMENT FINANCIAL & STATISTICAL INFORMATION
2009 2008 2008
(in thousands) Q1 Q4 Q1
-------------- -- -- --
Loans Held for Investment:
Commercial Lending
Commercial and Multi-Family
Real Estate $13,619,009 $13,382,909 $12,655,900
Middle Market 9,850,735 10,081,823 8,695,171
Specialty Lending 3,489,813 3,547,287 3,546,200
--------- --------- ---------
Total Commercial Lending $26,959,557 $27,012,019 $24,897,271
Small Ticket Commercial
Real Estate $2,568,395 $2,609,123 $2,840,594
Small Business Lending $4,729,266 $4,747,783 $4,588,500
Consumer Lending
Mortgages $6,831,471 $7,187,805 $8,214,624
Branch Based Home Equity &
Other Consumer 3,593,638 3,773,397 3,938,849
--------- --------- ---------
Total Consumer Lending $10,425,109 $10,961,202 $12,153,473
Other $(223,652) $(247,146) $(282,753)
----------- ----------- -----------
Total Loans Held for
Investment $44,458,675 $45,082,981 $44,197,085
=========== =========== ===========
Non Performing Asset
Rates (9):
Commercial Lending
Commercial and Multi-Family
Real Estate 1.98% 1.20% 0.46%
Middle Market 0.57% 0.43% 0.42%
Specialty Lending 1.16% 1.05% 0.18%
---- ---- ----
Total Commercial Lending 1.36% 0.89% 0.41%
Small Ticket Commercial
Real Estate 8.00% 6.67% 1.62%
Small Business Lending 1.95% 1.79% 1.00%
Consumer Lending
Mortgages 2.36% 1.55% 0.81%
Branch Based Home Equity &
Other Consumer 0.58% 0.46% 0.35%
---- ---- ----
Total Consumer Lending 1.75% 1.18% 0.66%
---- ---- ----
Total Non Performing
Asset Rate 1.91% 1.39% 0.62%
==== ==== ====
Net Charge Off Rates:
Commercial Lending
Commercial and Multi-Family
Real Estate 0.62% 1.15% 0.02%
Middle Market 0.07% 0.48% 0.15%
Specialty Lending 0.85% 0.47% 0.05%
---- ---- ----
Total Commercial Lending 0.45% 0.81% 0.07%
Small Ticket Commercial
Real Estate 1.75% 0.90% 0.30%
Small Business Lending 1.55% 1.12% 0.97%
Consumer Lending
Mortgages 0.46% 0.48% 0.11%
Branch Based Home Equity &
Other Consumer 1.42% 1.34% 1.21%
---- ---- ----
Total Consumer Lending 0.79% 0.78% 0.46%
---- ---- ----
Total Net Charge Off Rate 0.76% 0.90% 0.31%
==== ==== ====
CAPITAL ONE FINANCIAL CORPORATION (COF)
NATIONAL LENDING SUB-SEGMENT FINANCIAL & STATISTICAL SUMMARY
FOR CONTINUING OPERATIONS - MANAGED BASIS (1), (8)
2009 2008 2008
(in thousands) Q1 Q4 Q1
-------------- -- -- --
US Card:
Interest Income $1,971,389 $2,179,456 $2,433,665
Interest Expense 466,694 570,751 689,951
------- ------- -------
Net interest income $1,504,695 $1,608,705 $1,743,714
Non-interest income 883,891 1,018,689 1,070,831
Provision for
loan losses 1,521,997 2,000,928 1,120,025
Non-interest expenses 862,915 896,572 938,860
Income tax provision 1,286 (94,537) 264,481
----- ------- -------
Net income (loss) $2,388 $(175,569) $491,179
====== ========= ========
Loans Held for
Investment $67,015,166 $70,944,581 $67,382,004
Average Loans Held
for Investment $69,187,704 $69,643,290 $68,544,190
Loans Held for
Investment Yield 11.40% 12.52% 14.20%
Net Interest Margin 8.70% 9.24% 10.18%
Revenue Margin 13.81% 15.09% 16.42%
Risk Adjusted Margin 5.42% 8.01% 10.58%
Non-Interest Expenses
as a % of Average
Loans Held for
Investment 4.99% 5.15% 5.48%
Efficiency Ratio (5) 36.13% 34.12% 33.36%
Net charge-off rate 8.39% 7.08% 5.85%
Delinquency Rate
(30+ days) 5.08% 4.78% 4.04%
Purchase Volume (7) $21,601,837 $25,217,781 $24,543,082
Number of Loan
Accounts (000s) 35,273 37,436 40,611
--------------
Auto Finance:
Interest Income $606,392 $622,244 $690,919
Interest Expense 236,389 255,501 289,357
------- ------- -------
Net interest income $370,003 $366,743 $401,562
Non-interest income 19,965 12,846 16,110
Provision for
loan losses 166,169 437,572 408,251
Goodwill
impairment
charge - 810,876 (10) -
Non-interest expenses 113,884 127,075 136,169
Income tax
(benefit)
provision 38,470 (71,290) (44,362)
------ ------- -------
Net income (loss) $71,445 $(924,644) $(82,386)
======= ========= ========
Loans Held for
Investment $20,667,910 $21,481,911 $24,633,665
Average Loans Held
for Investment $21,110,528 $21,954,587 $25,047,501
Loans Held for
Investment Yield 11.49% 11.34% 11.03%
Net Interest Margin 7.01% 6.68% 6.41%
Revenue Margin 7.39% 6.92% 6.67%
Risk Adjusted Margin 2.51% 1.24% 2.69%
Non-Interest Expenses
as a % of Average
Loans Held for
Investment 2.16% 2.32% (11) 2.17%
Efficiency Ratio (5) 29.20% 33.48% (11) 32.60%
Net charge-off rate 4.88% 5.67% 3.98%
Delinquency Rate
(30+ days) 7.52% 9.91% 6.42%
Auto Loan
Originations $1,463,402 $1,476,136 $2,440,227
Number of Loan
Accounts (000s) 1,610 1,634 1,763
---------------
International:
Interest Income $260,164 $303,069 $405,433
Interest Expense 73,171 95,290 142,126
------ ------ -------
Net interest income $186,993 $207,779 $263,307
Non-interest income 101,590 119,531 139,173
Provision for
loan losses 160,789 163,601 148,944
Non-interest expenses 123,971 178,117 204,142
Income tax provision 1,776 (3,233) 16,084
----- ------ ------
Net income (loss) $2,047 $(11,175) $33,310
====== ======== =======
Loans Held for
Investment $8,069,961 $8,720,642 $10,987,733
Average Loans Held
for Investment $8,382,679 $9,440,972 $11,381,942
Loans Held for
Investment Yield 12.41% 12.84% 14.25%
Net Interest Margin 8.92% 8.80% 9.25%
Revenue Margin 13.77% 13.87% 14.14%
Risk Adjusted Margin 6.47% 8.02% 8.84%
Non-Interest Expenses
as a % of Average
Loans Held for
Investment 5.92% 7.55% 7.17%
Efficiency Ratio (5) 42.96% 54.42% 50.72%
Net charge-off rate 7.30% 5.84% 5.30%
Delinquency Rate
(30+ days) 6.25% 5.51% 5.12%
Purchase Volume (7) $1,871,723 $2,346,969 $2,716,060
Number of Loan
Accounts (000s) 5,666 5,747 5,691
CAPITAL ONE FINANCIAL CORPORATION (COF)
SEGMENT AND NATIONAL LENDING SUB-SEGMENT
FINANCIAL & STATISTICAL SUMMARY FOR CONTINUING OPERATIONS NOTES
(1) The information in this financial and statistical summary reflects the
adjustment to add back the effect of securitization transactions
qualifying as sales under generally accepted accounting principles.
See accompanying schedule - "Reconciliation to GAAP Financial
Measures." In Q3 2007, the Company shutdown the mortgage origination
operations of its wholesale mortgage banking unit, GreenPoint
Mortgage. The results of the mortgage origination operation of
GreenPoint have been accounted for as a discontinued operation and
have been removed from the Company's results of continuing operations
for all periods presented. The results of GreenPoint's mortgage
servicing business are reported in continuing operations for all
periods presented. Effective Q4 2007, GreenPoint's held for
investment commercial and consumer loan portfolio results are included
in continuing operations.
(2) Includes domestic non-interest bearing deposits, NOW accounts, money
market deposit accounts, savings accounts, certificates of deposit of
less than $100,000 and other consumer time deposits.
(3) Net Interest Margin - Loans equals net interest income earned on loans
divided by average managed loans.
(4) Net Interest Margin - Deposits equals net interest income earned on
deposits divided by average deposits.
(5) Efficiency Ratio equals non-interest expenses divided by total managed
revenue.
(6) The balances and results of Chevy Chase Bank, FSB are included in the
Other segment for Q1 2009.
(7) Includes all purchase transactions net of returns and excludes cash
advance transactions.
(8) In Q1 2008 the Company reorganized its National Lending sub-segments
from U.S. Card, Auto Finance and Global Financial Services to U.S.
Card and Other National Lending. The U.S. Card sub-segment contains
the results of the Company's domestic credit card business, small
business lending and the installment loan business. The Other
National Lending subsegment contains the results of the Company's auto
finance business and the Company's international lending businesses.
Components of the Other National Lending sub-segment are separately
disclosed. Segment and sub-segment results have been restated for all
periods presented.
(9) Non performing assets is comprised of non performing loans and
foreclosed assets. The non performing asset rate equals non performing
assets divided by the sum of loans held for investment plus foreclosed
assets.
(10) In Q4 2008 the Company recorded impairment of goodwill in its Auto
Finance sub-segment of $810.9 million.
(11) Excludes the impact of the goodwill impairment of $810.9 million
recorded in the Auto Finance component of National Lending.
(12) Excludes acquired Chevy Chase Bank, FSB branches of 250 and ATM
locations of 907.
CAPITAL ONE FINANCIAL CORPORATION
Reconciliation to GAAP Financial Measures
For the Three Months Ended March 31, 2009
(dollars in thousands)(unaudited)
The Company's consolidated financial statements prepared in accordance
with generally accepted accounting principles ("GAAP") are referred to
as its "reported" financial statements. Loans included in
securitization transactions which qualified as sales under GAAP have
been removed from the Company's "reported" balance sheet. However,
servicing fees, finance charges, and other fees, net of charge-offs,
and interest paid to investors of securitizations are recognized as
servicing and securitizations income on the "reported" income
statement.
The Company's "managed" consolidated financial statements reflect
adjustments made related to effects of securitization transactions
qualifying as sales under GAAP. The Company generates earnings from
its "managed" loan portfolio which includes both the on-balance sheet
loans and off-balance sheet loans. The Company's "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 it originated. For this reason the Company believes the
"managed" consolidated financial statements and related managed metrics
to be useful to stakeholders.
Total
Total Reported Adjustments(1) Managed(2)
--------------------------- -------------- -------------- ----------
Income Statement Measures(3)
Net interest income $1,786,751 $957,002 $2,743,753
Non-interest income 1,090,334 (104,182) 986,152
--------- -------- -------
Total revenue 2,877,085 852,820 3,729,905
Provision for loan and
lease losses 1,279,137 852,820 2,131,957
Net charge-offs $1,137,787 $852,820 $1,990,607
--------------- ---------- -------- ----------
Balance Sheet Measures
Loans held for investment $105,526,911 $44,808,083 $150,334,994
Total assets $177,387,459 $42,526,347 $219,913,806
Average loans held for
investment $103,445,130 $43,939,686 $147,384,816
Average earning assets $144,475,107 $41,442,153 $185,917,260
Average total assets $168,475,773 $41,679,299 $210,155,072
Delinquencies $4,758,370 $2,311,450 $7,069,820
------------- ---------- ---------- ----------
(1) Income statement adjustments reclassify the net of finance charges
of $1,072.8 million, past-due fees of $201.6 million, other interest
income of $(33.7) million and interest expense of $283.7 million; and
net charge-offs of $852.8 million from non-interest income to net
interest income and provision for loan and lease losses, respectively.
(2) The managed loan portfolio does not include auto loans which have
been sold in whole loan sale transactions where the Company has
retained servicing rights.
(3) Based on continuing operations.
CAPITAL ONE FINANCIAL CORPORATION
Consolidated Balance Sheets
(in thousands)(unaudited)
As of As of As of
Mar 31 Dec 31 Mar 31
2009 2008 2008
---- ---- ----
Assets:
Cash and due from banks $3,076,926 $2,047,839 $2,324,079
Federal funds sold and
resale agreements 663,721 636,752 1,842,775
Interest-bearing deposits
at other banks 4,013,678 4,806,752 663,838
--------- --------- -------
Cash and cash
equivalents 7,754,325 7,491,343 4,830,692
Securities available for
sale 36,326,951 31,003,271 22,190,051
Securities held to
maturity 90,990 - -
Mortgage loans held for
sale 289,337 68,462 192,584
Loans held for investment 105,526,911 101,017,771 98,356,088
Less: Allowance for
loan and lease losses (4,648,031) (4,523,960) (3,273,355)
---------- ---------- ----------
Net loans held for
investment 100,878,880 96,493,811 95,082,733
Accounts receivable from
securitizations 4,850,508 6,342,754 5,396,943
Premises and equipment,
net 2,790,733 2,313,106 2,316,233
Interest receivable 815,738 827,909 750,319
Goodwill 13,076,754 11,964,487 12,826,419
Other 10,513,243 9,408,309 7,022,553
---------- --------- ---------
Total assets $177,387,459 $165,913,452 $150,608,527
============ ============ ============
Liabilities:
Non-interest-bearing
deposits $12,422,456 $11,293,852 $11,071,116
Interest-bearing deposits 108,696,442 97,326,937 76,623,826
Senior and subordinated
notes 8,258,212 8,308,843 9,834,392
Other borrowings 14,610,092 14,869,648 21,673,670
Interest payable 656,769 676,398 509,278
Other 5,999,327 6,825,341 6,276,718
--------- --------- ---------
Total liabilities 150,643,298 139,301,019 125,989,000
Stockholders' Equity:
Preferred stock 3,115,722 3,096,466 -
Common stock 4,425 4,384 4,213
Paid-in capital, net 17,348,217 17,278,102 15,918,230
Retained earnings and
cumulative other
comprehensive income 9,444,639 9,399,368 11,860,288
Less: Treasury stock,
at cost (3,168,842) (3,165,887) (3,163,204)
---------- ---------- ----------
Total stockholders'
equity 26,744,161 26,612,433 24,619,527
---------- ---------- ----------
Total liabilities and
stockholders' equity $177,387,459 $165,913,452 $150,608,527
============ ============ ============
CAPITAL ONE FINANCIAL CORPORATION
Consolidated Statements of Income
(in thousands, except per share data)(unaudited)
Three Months Ended
Mar 31 Dec 31 Mar 31
2009 2008 2008
---- ---- ----
Interest Income:
Loans held for investment,
including past-due
fees $2,190,331 $2,306,796 $2,508,393
Investment securities 394,780 367,902 257,741
Other 63,117 94,123 113,391
------ ------ -------
Total interest income 2,648,228 2,768,821 2,879,525
Interest Expense:
Deposits 631,848 684,756 610,389
Senior and
subordinated notes 58,044 92,519 140,970
Other borrowings 171,585 189,149 316,249
------- ------- -------
Total interest expense 861,477 966,424 1,067,608
------- ------- ---------
Net interest income 1,786,751 1,802,397 1,811,917
Provision for loan
and lease losses 1,279,137 2,098,921 1,079,072
--------- --------- ---------
Net interest income
(loss) after
provision for loan
and lease losses 507,614 (296,524) 732,845
Non-Interest Income:
Servicing and
securitizations 453,637 590,948 1,083,062
Service charges and
other customer-
related fees 506,125 557,331 574,061
Mortgage servicing
and other 23,380 14,048 35,255
Interchange 140,091 129,409 151,902
Other (32,899) 76,550 212,198
------- ------ -------
Total non-interest
income 1,090,334 1,368,286 2,056,478
Non-Interest Expense:
Salaries and
associate benefits 554,431 574,199 611,280
Marketing 162,712 264,943 297,793
Communications and
data processing 199,104 196,924 187,243
Supplies and equipment 118,900 130,038 130,931
Occupancy 100,251 112,492 88,080
Restructuring expense 17,627 52,839 52,759
Goodwill impairment charge - 810,876 -
Other 592,067 615,632 454,191
------- ------- -------
Total non-interest
expense 1,745,092 2,757,943 1,822,277
--------- --------- ---------
Income (loss) from
continuing operations
before Income taxes (147,144) (1,686,181) 967,046
Income taxes (60,223) (289,856) 334,491
------- -------- -------
Income (loss) from
continuing operations,
net of tax (86,921) (1,396,325) 632,555
Loss from
discontinued
operations, net of
tax (24,958) (25,221) (84,051)
------- ------- -------
Net income (loss) $(111,879) $(1,421,546) $548,504
========= =========== ========
Net income (loss)
available to common
shareholders $(176,069) $(1,454,269) $548,504
========= =========== ========
Basic earnings per common share
Income (loss) from
continuing operations $(0.39) $(3.67) $1.71
Loss from discontinued
operations (0.06) (0.07) (0.23)
----- ----- -----
Net Income (loss)
per common share $(0.45) $(3.74) $1.48
====== ====== =====
Diluted earnings per common share
Income (loss) from
continuing operations $(0.39) $(3.67) $1.70
Loss from discontinued
operations (0.06) (0.07) (0.23)
----- ----- -----
Net Income (loss)
per common share $(0.45) $(3.74) $1.47
====== ====== =====
Dividends paid per
common share $0.375 $0.375 $0.375
====== ====== ======
CAPITAL ONE FINANCIAL CORPORATION
Statements of Average Balances, Income and Expense, Yields and Rates (1)
(dollars in thousands)(unaudited)
Reported Quarter Ended 03/31/09
----------------------
Average Income/ Yield/
Balance Expense Rate
------- ------- --------
Earning assets:
Loans held for investment $103,445,130 $2,190,331 8.47%
Investment Securities (2) 34,209,102 394,780 4.62%
Other 6,802,386 63,117 3.71%
--------- ------ ----
Total earning assets $144,456,618 $2,648,228 7.33%
============ ==========
Interest-bearing liabilities:
Interest-bearing deposits
NOW accounts $10,842,553 $11,554 0.43%
Money market deposit accounts 30,839,817 115,017 1.49%
Savings accounts 7,631,999 7,210 0.38%
Other consumer time deposits 37,097,765 371,194 4.00%
Public fund CD's of $100,000 or
more 1,209,347 5,146 1.70%
CD's of $100,000 or more 10,673,089 107,215 4.02%
Foreign time deposits 2,557,479 14,512 2.27%
--------- ------ ----
Total interest-bearing deposits $100,852,049 $631,848 2.51%
Senior and subordinated notes 7,771,343 58,044 2.99%
Other borrowings 15,697,078 171,585 4.37%
---------- ------- ----
Total interest-bearing liabilities $124,320,470 $861,477 2.77%
============ ========
----
Net interest spread 4.56%
====
Interest income to average earning assets 7.33%
Interest expense to average earning assets 2.38%
----
Net interest margin 4.95%
====
Reported Quarter Ended 12/31/08
----------------------
Average Income/ Yield/
Balance Expense Rate
------- ------- --------
Earning assets:
Loans held for investment $99,334,890 $2,306,796 9.29%
Investment Securities (2) 28,961,247 367,902 5.08%
Other 9,502,781 94,123 3.96%
--------- ------ ----
Total earning assets $137,798,918 $2,768,821 8.04%
============ ==========
Interest-bearing liabilities:
Interest-bearing deposits
NOW accounts $9,874,696 $28,460 1.15%
Money market deposit accounts 28,556,264 171,891 2.41%
Savings accounts 7,275,816 11,774 0.65%
Other consumer time deposits 33,712,504 337,651 4.01%
Public fund CD's of $100,000 or
more 1,213,364 7,323 2.41%
CD's of $100,000 or more 9,508,463 104,134 4.38%
Foreign time deposits 3,002,402 23,523 3.13%
--------- ------ ----
Total interest-bearing deposits $93,143,509 $684,756 2.94%
Senior and subordinated notes 8,034,423 92,519 4.61%
Other borrowings 16,428,096 189,149 4.61%
---------- ------- ----
Total interest-bearing liabilities $117,606,028 $966,424 3.29%
============ ========
----
Net interest spread 4.75%
====
Interest income to average earning assets 8.04%
Interest expense to average earning assets 2.81%
----
Net interest margin 5.23%
====
Reported Quarter Ended 03/31/08
----------------------
Average Income/ Yield/
Balance Expense Rate
------- ------- --------
Earning assets:
Loans held for investment $99,818,867 $2,508,393 10.05%
Investment Securities (2) 21,210,882 257,741 4.86%
Other 6,790,011 113,391 6.68%
--------- ------- ----
Total earning assets $127,819,760 $2,879,525 9.01%
============ ==========
Interest-bearing liabilities:
Interest-bearing deposits
NOW accounts $3,958,482 $17,714 1.79%
Money market deposit accounts 29,636,896 211,436 2.85%
Savings accounts 8,064,412 24,008 1.19%
Other consumer time deposits 18,429,463 204,942 4.45%
Public fund CD's of $100,000 or
more 1,671,936 15,718 3.76%
CD's of $100,000 or more 8,756,978 99,264 4.53%
Foreign time deposits 3,648,797 37,307 4.09%
--------- ------ ----
Total interest-bearing deposits $74,166,964 $610,389 3.29%
Senior and subordinated notes 10,099,878 140,970 5.58%
Other borrowings 25,449,240 316,249 4.97%
---------- ------- ----
Total interest-bearing liabilities $109,716,082 $1,067,608 3.89%
============ ==========
----
Net interest spread 5.12%
====
Interest income to average earning assets 9.01%
Interest expense to average earning assets 3.34%
----
Net interest margin 5.67%
====
(1) Average balances, income and expenses, yields and rates are based on
continuing operations.
(2) Includes securities available for sale and securities held to
maturity.
CAPITAL ONE FINANCIAL CORPORATION
Statements of Average Balances,
Income and Expense,
Yields and Rates (2)
(dollars in thousands)(unaudited)
Managed (1) Quarter Ended 03/31/09
----------------------
Average Income/ Yield/
Balance Expense Rate
------- ------- --------
Earning assets:
Loans held for investment $147,384,816 $3,478,362 9.44%
Investment Securities (3) 34,209,102 394,780 4.62%
Other 4,304,853 15,743 1.46%
--------- ------ ----
Total earning assets $185,898,771 $3,888,885 8.37%
============ ==========
Interest-bearing liabilities:
Interest-bearing deposits
NOW accounts $10,842,553 $11,554 0.43%
Money market deposit accounts 30,839,817 115,017 1.49%
Savings accounts 7,631,999 7,210 0.38%
Other consumer time deposits 37,097,765 371,194 4.00%
Public fund CD's of $100,000
or more 1,209,347 5,146 1.70%
CD's of $100,000 or more 10,673,089 107,215 4.02%
Foreign time deposits 2,557,479 14,512 2.27%
--------- ------ ----
Total interest-bearing deposits $100,852,049 $631,848 2.51%
Senior and subordinated notes 7,771,343 58,044 2.99%
Other borrowings 15,697,078 171,585 4.37%
Securitization liability 41,766,616 283,655 2.72%
---------- ------- ----
Total interest-bearing liabilities $166,087,086 $1,145,132 2.76%
============ ==========
----
Net interest spread 5.61%
====
Interest income to average earning assets 8.37%
Interest expense to average earning assets 2.47%
----
Net interest margin 5.90%
====
Managed (1) Quarter Ended 12/31/08
----------------------
Average Income/ Yield/
Balance Expense Rate
------- ------- --------
Earning assets:
Loans held for investment $146,586,152 $3,808,363 10.39%
Investment Securities (3) 28,961,247 367,902 5.08%
Other 7,112,807 29,558 1.66%
--------- ------ ----
Total earning assets $182,660,206 $4,205,823 9.21%
============ ==========
Interest-bearing liabilities:
Interest-bearing deposits
NOW accounts $9,874,696 $28,460 1.15%
Money market deposit accounts 28,556,264 171,891 2.41%
Savings accounts 7,275,816 11,774 0.65%
Other consumer time deposits 33,712,504 337,651 4.01%
Public fund CD's of $100,000 or more 1,213,364 7,323 2.41%
CD's of $100,000 or more 9,508,463 104,134 4.38%
Foreign time deposits 3,002,402 23,523 3.13%
--------- ------ ----
Total interest-bearing deposits $93,143,509 $684,756 2.94%
Senior and subordinated notes 8,034,423 92,519 4.61%
Other borrowings 16,428,096 189,149 4.61%
Securitization liability 45,610,272 471,517 4.14%
---------- ------- ----
Total interest-bearing liabilities $163,216,300 $1,437,941 3.52%
============ ==========
----
Net interest spread 5.69%
====
Interest income to average earning assets 9.21%
Interest expense to average earning assets 3.15%
----
Net interest margin 6.06%
====
Managed (1) Quarter Ended 3/31/08
---------------------
Average Income/ Yield/
Balance Expense Rate
------- ------- --------
Earning assets:
Loans held for investment $149,719,498 $4,316,294 11.53%
Investment Securities (3) 21,210,882 257,741 4.86%
Other 4,778,178 54,221 4.54%
--------- ------ ----
Total earning assets $175,708,558 $4,628,256 10.54%
============ ==========
Interest-bearing liabilities:
Interest-bearing deposits
NOW accounts $3,958,482 $17,714 1.79%
Money market deposit accounts 29,636,896 211,436 2.85%
Savings accounts 8,064,412 24,008 1.19%
Other consumer time deposits 18,429,463 204,942 4.45%
Public fund CD's of $100,000 or more 1,671,936 15,718 3.76%
CD's of $100,000 or more 8,756,978 99,264 4.53%
Foreign time deposits 3,648,797 37,307 4.09%
--------- ------ ----
Total interest-bearing deposits $74,166,964 $610,389 3.29%
Senior and subordinated notes 10,099,878 140,970 5.58%
Other borrowings 25,449,240 316,249 4.97%
Securitization liability 49,270,231 583,798 4.74%
---------- ------- ----
Total interest-bearing liabilities $158,986,313 $1,651,406 4.15%
============ ==========
----
Net interest spread 6.39%
====
Interest income to average earning assets 10.54%
Interest expense to average earning assets 3.76%
----
Net interest margin 6.78%
====
(1) The information in this table reflects the adjustment to add back the
effect of securitized loans.
(2) Average balances, income and expenses, yields and rates are based on
continuing operations.
(3) Includes securities available for sale and securities held to
maturity.
SOURCE Capital One Financial Corporation
http://www.capitalone.com