Capital One Reports Net Income of $224.2 Million, Excluding the Impact of TARP Preferred Shares Redeemed in the Quarter
Capital One Reports Net Income of $224.2 Million, Excluding the Impact of TARP Preferred Shares Redeemed in the Quarter
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Including the impact of TARP, loss per share in the second quarter was
(diluted)
MCLEAN, Va., July 23 /PRNewswire-FirstCall/ --
Second Quarter Highlights
-- Managed revenue increased 11.2 percent relative to the first quarter
of 2009.
-- Lower provision expense relative to the first quarter as an increase
in charge-offs was more than offset by an allowance release of $166.2
million .
-- The allowance release was due to a $4.5 billion reduction in reported
loan balances.
-- Allowance as a percentage of reported loans for the company remained
stable and strong at 4.84 percent.
-- Pre-tax results included an expense of $80.5 million for the FDIC
special assessment.
-- Repurchased the $3.6 billion of preferred stock issued through
Treasury's Capital Purchase Program (CPP) of the Troubled Asset Relief
Program (TARP).
-- Tangible common equity to tangible managed assets, or "TCE ratio,"
increased to 5.7 percent, up 90 basis points from the March 31, 2009 ,
ratio of 4.8 percent.
"Second quarter results reflect the economic environment and our actions
to decisively manage the company through the downturn for the benefit of our
shareholders," said
Total Company Results
-- Total managed revenues in the second quarter of 2009 of $4.1 billion
increased $418.2 million , or 11.2 percent, relative to the first
quarter. Net interest income increased $215.4 million in the second
quarter while non-interest income increased $202.8 million . The
increase in revenue was driven by a number of factors, including a
full quarter of Chevy Chase Bank results and an improvement in both
net interest and revenue margins.
-- Provision expense was down $228.1 million quarter over quarter as the
expected increase in charge-offs in the second quarter was more than
offset by the $166.2 million allowance release in the quarter versus
an increase in allowance of $124.1 million in the first quarter.
-- The allowance release was driven by a reduction in reported loan
balances of $4.5 billion .
-- Allowance as a percentage of reported loans remained at 4.84
percent in the second quarter and increased 143 basis points from
the second quarter of 2008.
-- The full quarter effect of Chevy Chase Bank increased average deposits
in the quarter by $7.5 billion , while total deposits on June 30, 2009 ,
were $116.7 billion , a decline of $4.4 billion , or 3.6 percent, over
the prior quarter, as the company allowed higher cost deposits to
run-off as loans contracted in the quarter.
-- Deposits represented 65.0 percent of the company's total funding
at the end of the second quarter.
-- Interest-bearing deposit costs decreased from 2.51 percent in the
first quarter to 2.08 percent in the second quarter.
-- The weighted average cost of funds decreased by 36 basis points, from
2.76 percent in the first quarter to 2.40 percent in the second
quarter.
-- Managed loans held for investment decreased by $4.1 billion , or 2.7
percent, from the first quarter of 2009 to $146.3 billion at June 30,
2009 , and decreased $996.0 million , or 0.7 percent, from the year ago
quarter, primarily as a result of the weak economic environment.
-- Non-interest expense increased $176.7 million in the second quarter of
2009 as compared to the first quarter, primarily as a result of an
expense of $80.5 million for the FDIC special assessment, which is
recorded in the "Other" category, and from a full quarter of Chevy
Chase Bank expenses.
-- The managed efficiency ratio decreased 103 basis points to 45.28
percent in the second quarter of 2009 from 46.31 percent in the
first quarter of 2009.
-- The company's TCE ratio was 5.7 percent on June 30, 2009 , an
improvement of 90 basis points from the first quarter level of 4.8
percent. The Tier 1 risk-based capital ratio of an estimated 9.7
percent reflects impact of the repayment of TARP preferred shares in
the second quarter and continues to be well above the regulatory
well-capitalized minimum.
"Our capital strength was evident in the quarter as we repaid the
government's preferred share investment and increased our Tangible Common
Equity ratio by 90 basis points to 5.7 percent," said
Segment Results
Local Banking Segment highlights
The Local Banking business posted a net loss of
-- Local Banking reported a net loss for the second quarter of 2009 of
$0.2 million , versus a net loss in the first quarter of 2009 of $36.2
million .
-- Revenues improved $43.3 million , or 5.5 percent, primarily due to an
increase in deposit margins. Operating expenses increased $11.6
million relative to the first quarter of 2009.
-- Local Banking deposits declined $612.5 million , or 0.8 percent, during
the second quarter of 2009 to $78.5 billion , while the net interest
margin on deposits increased by 21 basis points to 2.08 percent.
-- Loans held for investment of $43.7 billion declined $795.7 million , or
1.8 percent, from the first quarter of 2009, primarily driven by the
continued run-off of residential mortgage loans, and a decline in
small business lending.
-- The net charge-off rate increased 34 basis points to 1.10 percent in
the second quarter of 2009 from 76 basis points in the first quarter
of 2009, primarily as a result of the continuing difficult credit
environment.
-- Non-performing loans as a percentage of loans held for investment was
2.35 percent, an increase of 58 basis points from 1.77 percent at the
end of the first quarter of 2009. The Commercial Loan portfolio's rate
increased 47 basis points in the quarter while Consumer Lending's rate
increased 78 basis points.
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.
National Lending reported a profit of
Performance in the National Lending segment primarily reflects expected continued economic deterioration during the second quarter, although the pace of deterioration was partially offset by seasonal benefits and the company's ongoing efforts to aggressively manage credit risk.
-- National Lending segment revenues of $3.1 billion were up $11.5
million in the second quarter of 2009 compared to the first quarter of
2009, but down $253.7 million compared to the second quarter of 2008.
-- Revenue margin expanded from 12.43 percent in the first quarter of
2009 to 13.03 percent in the second quarter for National Lending. The
individual businesses also reported revenue margin expansion. The
company now expects the full year U.S. Card revenue margin to be a bit
below 15 percent.
-- The managed net charge-off rate for the National Lending segment
increased 49 basis points in the second quarter of 2009 to 8.04
percent from 7.55 percent in the first quarter of 2009.
- U.S. Card - 9.23 percent, an increase of 84 basis points over the
first quarter of 2009
- Auto Finance - 3.65 percent, a decline of 123 basis points from the
first quarter
- International - 9.32 percent, an increase of 202 basis points over
the first quarter of 2009
-- The delinquency rate for the segment was 5.82 percent as of June 30,
2009 , an increase of 12 basis points from 5.70 percent as of March 31,
2009 .
- U.S. Card - 4.77 percent, a decline of 31 basis points over the
first quarter of 2009
- Auto Finance - 8.89 percent, an increase of 137 basis points from
the first quarter
- International - 6.69 percent, an increase of 44 basis points over
the first quarter of 2009
-- Managed loans held for investment declined $2.5 billion , or 2.6
percent, to $93.3 billion from $95.8 billion at the end of the first
quarter of 2009, and down 8.7 percent relative to the year-ago
quarter.
- U.S. Card - declined $2.3 billion , or 3.4 percent, to $64.8 billion
- Auto Finance - declined $765.5 million , or 3.7 percent, to $19.9
billion
- International - increased $568.5 million , or 7.0 percent, to $8.6
billion
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
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
About Capital One
NOTE: Second 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
CAPITAL ONE FINANCIAL CORPORATION (COF)
FINANCIAL & STATISTICAL SUMMARY
REPORTED BASIS
(in millions, except per share 2009 2009 2008
data and as noted) Q2 Q1(8) Q2
------- ------- -------
Earnings (Reported Basis)
Net Interest Income $1,946.6 $1,786.8 $1,727.8
Non-Interest Income (2) 1,231.7 (5) 1,090.3 1,622.3 (5)
------- ------- -------
Total Revenue (1) 3,178.3 2,877.1 3,350.1
Provision for Loan Losses 934.0 1,279.1 829.1
Marketing Expenses 134.0 162.7 288.1
Restructuring Expenses 43.4 17.6 13.6
Operating Expenses (3) 1,744.4 (9) 1,564.8 1,517.9
------- ------- -------
Income (Loss) Before Taxes 322.5 (147.1) 701.4
Tax Rate 28.6% 40.9% 34.1%
Income (Loss)From Continuing
Operations, Net of Tax $230.2 $(86.9) $462.5
Loss From Discontinued
Operations, Net of Tax (6.0) (25.0) (9.6)
---- ----- ----
Net Income (Loss) $224.2 $(111.9) $452.9
------ ------- ------
Net Income (Loss) Available to
Common Shareholders (F) $(275.5)(11) $(176.1) $452.9
------------------------ ------- ------- ------
Common Share Statistics
Basic EPS: (G)
Income (Loss) From
Continuing Operations $(0.64) $(0.39) $1.24
Loss From Discontinued
Operations $(0.01) $(0.06) $(0.03)
------ ------ ------
Net Income (Loss) $(0.65) $(0.45) $1.21
Diluted EPS: (G)
Income (Loss) From
Continuing Operations $(0.64) $(0.39) $1.24
Loss From Discontinued
Operations $(0.01) $(0.06) $(0.03)
------ ------ ------
Net Income (Loss) $(0.65) $(0.45) $1.21
Dividends Per Common Share $0.05 $0.375 $0.375
Tangible Book Value Per Common
Share (period end) $25.34 $25.11 $30.77
Stock Price Per Common Share
(period end) $21.88 $12.24 $38.01
Total Market Capitalization
(period end) $9,826.3 $4,806.6 $14,280.4
Common Shares Outstanding
(period end) 449.1 392.7 375.7
Shares Used to Compute
Basic EPS 421.9 390.5 372.3
Shares Used to Compute
Diluted EPS 421.9 390.5 373.7
------------ ----- ----- -----
Reported Balance Sheet
Statistics
(period average) (A)
Average Loans Held for
Investment $105,278 $103,445 $97,950
Average Earning Assets $151,400 $145,374 $131,629
Average Assets $177,589 $168,454 $154,288
Average Interest Bearing
Deposits $107,040 $100,852 $78,675
Total Average Deposits $119,611 $112,138 $89,522
Average Equity $27,658 (7),(10) $27,002 $24,839
Return on Average Assets (ROA) 0.52% (0.21)% 1.20%
Return on Average Equity (ROE) 3.33% (1.29)% 7.45%
----------------------------- ---- ----- ----
Reported Balance Sheet
Statistics (period end) (A)
Loans Held for Investment $101,074 $105,527 $97,065
Total Assets $171,865 $177,357 $150,978
Interest Bearing Deposits $104,121 $108,696 $81,655
Total Deposits $116,724 $121,119 $92,407
-------------- -------- -------- -------
Performance Statistics
(Reported) (A)
Net Interest Income Growth
(annualized) 36% (3)% (19)%
Non Interest Income Growth
(annualized) 52% (81)% (84)%
Revenue Growth (annualized) 42% (37)% (54)%
Net Interest Margin 5.14% 4.92% 5.25%
Revenue Margin 8.40% 7.92% 10.18%
Risk Adjusted Margin (B) 5.44% 4.90% 7.77%
Non Interest Expense as a %
of Average Loans Held for
Investment (annualized) 7.30% 6.75% 7.43%
Efficiency Ratio ( C ) 59.10% 60.04% 53.91%
---------------------- ----- ----- -----
Asset Quality Statistics
(Reported) (A)
Allowance $4,482 $4,648 $3,311
Allowance as a % of Reported
Loans Held for Investment 4.84%(4) 4.84%(4) 3.41%
Net Charge-Offs $1,119 (4) $1,097(4) $793
Net Charge-Off Rate 4.66%(4) 4.41%(4) 3.24%
Delinquency Rate (30+ days) 4.04%(4) 3.99%(4) 3.43%
-------------------------- ---- ---- ----
Full-time equivalent
employees (in thousands) 26.6 27.5 24.0
------------------------ ---- ---- ----
CAPITAL ONE FINANCIAL CORPORATION (COF)
FINANCIAL & STATISTICAL SUMMARY
MANAGED BASIS (*)
2009 2009 2008
(in millions) Q2 Q1 (8) Q2
------------- ------- ------ -------
Earnings (Managed Basis)
Net Interest Income $2,959.2 $2,743.8 $2,788.0
Non-Interest Income (2) 1,189.0 (5) 986.2 1,302.0 (5)
------- ----- -------
Total Revenue (1) 4,148.2 3,730.0 4,090.0
Provision for Loan Losses 1,903.9 2,132.0 1,569.0
Marketing Expenses 134.0 162.7 288.1
Restructuring Expenses 43.4 17.6 13.6
Operating Expenses (3) 1,744.4 (9) 1,564.8 1,517.9
------- ------- -------
Income (Loss) Before
Taxes 322.5 (147.1) 701.4
Tax Rate 28.6% 40.9% 34.1%
Income (Loss) From
Continuing Operations,
Net of Tax $230.2 $(86.9) $462.5
Loss From Discontinued
Operations, Net of Tax (6.0) (25.0) (9.6)
---- ----- ----
Net Income (Loss) $224.2 $(111.9) $452.9
------ ------- ------
Net Income (Loss)
Available to Common
Shareholders (F) $(275.5)(11) $(176.1) $452.9
-------------------- ------- ------- ------
Managed Balance Sheet
Statistics
(period average) (A)
Average Loans Held for
Investment $148,609 $147,385 $147,716
Average Earning Assets $191,804 $186,817 $179,421
Average Assets $218,325 $210,133 $203,308
Return on Average Assets
(ROA) 0.42% (0.17)% 0.91%
------------------------ ---- ----- ----
Managed Balance Sheet
Statistics
(period end) (A)
Loans Held for Investment $146,251 $150,335 $147,247
Total Assets $214,095 $219,883 $200,420
Tangible Assets(D) $200,110 $206,161 $187,059
Tangible Common Equity (E) $11,379 $9,862 $11,560
Tangible Common Equity to
Tangible Assets Ratio (H) 5.69%(6) 4.78% 6.18%
% Off-Balance Sheet
Securitizations 31% 30% 34%
-------------------- -- -- --
Performance Statistics
(Managed) (A)
Net Interest Income
Growth (annualized) 31% (3)% (25)%
Non Interest Income
Growth (annualized) 82% (67)% (76)%
Revenue Growth
(annualized) 45% (22)% (43)%
Net Interest Margin 6.17% 5.87% 6.22%
Revenue Margin 8.65% 7.99% 9.12%
Risk Adjusted Margin (B) 4.29% 3.72% 5.70%
Non Interest Expense as a
% of Average Loans Held
for Investment
(annualized) 5.17% 4.74% 4.93%
Efficiency Ratio ( C ) 45.28% 46.31% 44.16%
---------------------- ----- ----- -----
Asset Quality Statistics
(Managed) (A)
Net Charge-Offs $2,089 (4) $1,991(4) $1,533
Net Charge-Off Rate 6.00%(4) 5.52%(4) 4.15%
Delinquency Rate
(30+ days) 4.34%(4) 4.36%(4) 3.64%
--------------------- ---- ---- ----
(*) 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: Q2 2009 - $571.9 million,
Q1 2009 - $544.4 million and Q2 2008 - $476.0 million.
(2) Includes the impact from the decrease in fair value of retained
interests, including the interest-only strips, of $127.0 million in
Q2 2009, $128.0 million in Q1 2009 and $71.7 million in Q2 2008.
(3) Includes core deposit intangible amortization expense of $57.4
million in Q2 2009, $49.2 million in Q1 2009 and $48.5 million in Q2
2008, and integration costs of $8.8 million in Q2 2009, $23.6 million
in Q1 2009 and $27.4 million in Q2 2008.
(4) Excludes the impact from the Chevy Chase Bank , FSB acquired loan
portfolio. See accompanying schedule Impact of Chevy Chase Bank , FSB
(CCB) Acquisition.
(5) In Q2 2009 and 2008 the Company elected to convert and sell 404,508
shares and 154,991 shares of MasterCard class B common stock,
respectively. The Company recognized gains of $65.5 million and $44.9
million in non-interest income from those transactions, respectively.
(6) The Q2 2009 TCE ratio reflects the issuance of 56,000,000 common
shares on May 14, 2009 at $27.75 per share.
(7) Average equity includes the impact of the Company's participation
in the U.S. Treasury's Capital Purchase Program. On June 17, 2009 ,
the Company repurchased all 3,555,199 preferred shares issued in Q4
2008 for approximately $3.57 billion , including accrued dividends.
The warrants to purchase common shares of $491.5 million remain
outstanding and are included in paid-in capital on the balance sheet.
(8) 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 .
(9) Includes the FDIC Special Assessment of $80.5 million .
(10) Average equity includes the impact of the issuance of 56,000,000
common shares on May 14, 2009 at $27.75 per share.
(11) The calculation of net income (loss) available to common
shareholders includes the impact from dividends on preferred shares
of $38.0 million and from the accretion of the discount on preferred
shares of $461.7 million . With the repayment of the preferred shares
to the U.S. Treasury, the remaining accretion was accelerated to Q2
2009 and treated as a dividend.
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 and is
considered a non-GAAP measure. See accompanying schedule
Reconciliation To GAAP Financial Measures for a reconciliation of
tangible 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 and is considered
a non-GAAP measure. See accompanying schedule Reconciliation To GAAP
Financial Measures for a reconciliation of tangible common equity.
(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.
(H) Tangible Common Equity to Tangible Assets Ratio ("TCE Ratio") is
considered a non-GAAP measure. See accompanying schedule
Reconciliation To GAAP Financial Measures for a reconciliation of
the TCE Ratio.
CAPITAL ONE FINANCIAL CORPORATION (COF)
IMPACT OF CHEVY CHASE BANK, FSB (CCB) ACQUISITION
Q2 2009
-------
(in millions, except per share data and COF w/out
as noted) COF CCB CCB
--------------------------------------- --- --- ---
Earnings (Reported Basis)
Total Revenue $3,178.3 $179.3 $3,999.0
Provision for Loan Losses 934.0 2.8 931.2
Marketing Expenses 134.0 1.8 132.2
Restructuring Expenses 43.4 - 43.4
Operating Expenses 1,744.4 151.1 1,593.3
------- ----- -------
Income (Loss) From Continuing Operations,
Net of Tax 230.2 15.3 214.9
Loss From Discontinued Operations, Net of
Tax (6.0) - (6.0)
---- --- ----
Net Income (Loss) $224.2 $15.3 $208.9
------ ----- ------
Net Income (Loss) Available to Common
Shareholders $(275.5) $15.3 ($290.8)
------------------------------------- ------- ----- -------
Common Share Statistics
Diluted EPS $(0.65) $(0.69)
Shares Used to Compute Diluted EPS 421.9 419.3
---------------------------------- ----- -----
Reported Balance Sheet Statistics
(period end) (2)
Loans (1) $101,378 $9,010 $92,368
Less: Allowance for Loan and Lease
Losses $(4,482) $(3) $(4,479)
------- --- -------
Net Loans $96,896 $9,007 $87,889
Goodwill $13,381 $1,405 $11,976
Core Deposit Intangible $958 $223 $735
Total Assets $171,865 $15,396 $156,469
Total Deposits $116,724 $13,873 $102,851
Borrowings $23,338 $932 $22,406
---------- ------- ---- -------
Return on Average Assets (ROA)
(period average) (2)
ROA (Reported) 0.52% 0.52%
ROA (Managed) 0.42% 0.41%
------------- ---- ----
Managed Balance Sheet Statistics
(period end) (2)
Loans (1) $146,555 $9,010 $137,545
Tangible Assets $200,110 $186,298
Tangible Common Equity $11,379 $12,936
Tangible Common Equity to Tangible Assets
Ratio 5.69% 6.94%
----------------------------------------- ---- ----
Revenue & Expense Statistics
Revenue Margin (Reported) 8.40% 8.53%
Revenue Margin (Managed) 8.65% 8.77%
------------------------ ---- ----
Reconciliation of Credit Mark
Balance at beginning of period -
March 31, 2009 $2,165
Charge-offs applied to credit mark $151
----
Balance at end of period - June 30, 2009 $2,014
---------------------------------------- ------
Acquired Loan Portfolio Information
Loans 30 to 89 days past due $254
Loans 90+ days past due $1,117
Foreclosed assets $162
----------------- ----
(1) Loans include loans held for investment of $8.7 billion and loans
held for sale of $304.0 million . Loans represent acquired and
originated loans. Loans held for investment originated since
acquisition total $301.3 million . Total loans are inclusive of the
credit mark of $2.0 billion at June 30, 2009 .
(2) Based on continuing operations.
CAPITAL ONE FINANCIAL CORPORATION (COF)
SEGMENT FINANCIAL & STATISTICAL SUMMARY FOR CONTINUING OPERATIONS
MANAGED BASIS (1)
2009 2009 2008
(in thousands) Q2 Q1 Q2
-------------- ------- ------- -------
Local Banking (6):
Interest Income $1,317,886 $1,324,980 $1,489,612
Interest Expense 680,503 725,951 899,907
------- ------- -------
Net interest
income $637,383 $599,029 $589,705
Non-interest
income 189,475 184,510 192,758
Provision for loan
losses 195,765 219,369 92,043
Other non-interest
expenses 631,417 619,854 587,211
Income tax
provision (113) (19,490) 36,123
---- ------- ------
Net income (loss) $(211) $(36,194) $67,086
===== ======== =======
Loans Held for
Investment $43,662,945 $44,458,675 $44,270,734
Average Loans Held
for Investment $44,171,188 $44,836,954 $44,250,451
Core Deposits(2) $68,118,408 $67,848,575 $63,407,571
Total Deposits $78,502,170 $79,114,684 $74,245,677
Loans Held for
Investment Yield 5.32% 5.36% 6.35%
Deposit Interest
Expense Rate 1.59% 1.80% 2.28%
Net Interest
Margin - Loans(3) 2.20% 2.25% 1.99%
Net Interest
Margin - Deposits(4) 2.08% 1.87% 2.04%
Efficiency Ratio(5) 76.36% 79.11% 75.05%
Net charge-off rate 1.10% 0.76% 0.34%
Non Performing
Loans $1,026,177 $785,279 $359,017
Foreclosed Assets 72,116 63,173 29,607
------ ------ ------
Non Performing
Assets (8) $1,098,293 $848,452 $388,624
Non Performing
Loans as a % of
Loans Held for
Investment 2.35% 1.77% 0.81%
Non Performing
Asset Rate (8) 2.51% 1.91% 0.88%
Number of Active
ATMs 1,345 (9) 1,338 (9) 1,303
Number of
Locations (10) 732 (11) 728 (11) 725
National Lending:
Interest Income $2,880,617 $2,837,945 $3,181,773
Interest Expense 710,301 776,254 1,014,244
------- ------- ---------
Net interest
income $2,170,316 $2,061,691 $2,167,529
Non-interest
income 908,301 1,005,446 1,164,810
Provision for loan
losses 1,646,258 1,848,955 1,470,642
Other non-interest
expenses 1,016,331 1,100,770 1,236,567
Income tax
provision 145,198 41,532 217,496
------- ------ -------
Net income (loss) $270,830 $75,880 $407,634
======== ======= ========
Loans Held for
Investment $93,300,970 $95,753,037 $102,201,802
Average Loans Held
for Investment $94,481,457 $98,680,911 $102,629,246
Core Deposits(2) $- $478 $1,954
Total Deposits $1,281,217 $1,279,562 $1,644,241
Loans Held for
Investment Yield 12.20% 11.50% 12.40%
Net Interest Margin 9.19% 8.36% 8.45%
Revenue Margin 13.03% 12.43% 12.99%
Risk Adjusted Margin 4.99% 4.88% 7.31%
Non-Interest
Expenses as a % of
Average Loans Held
for Investment 4.30% 4.46% 4.82%
Efficiency Ratio(5) 33.01% 35.89% 37.11%
Net charge-off rate 8.04% 7.55% 5.67%
Delinquency Rate
(30+ days) 5.82% 5.70% 4.87%
Number of Loan
Accounts (000s) 40,697 42,549 45,812
Other (6):
Net interest
income $151,494 $83,033 $30,761
Non-interest
income 91,239 (203,804) (55,594)
Provision for loan
losses 61,950 63,633 6,342
Restructuring
expenses 43,374 17,627 13,560
Other non-interest
expenses 230,634 6,841 (17,737)
Income tax
provision
(benefit) (52,807) (82,265) (14,776)
------- ------- -------
Net income (loss) $(40,418) $(126,607) $(12,222)
======== ========= ========
Loans Held for
Investment $9,286,809 $10,123,282 $774,724
Core Deposits(2) $34,755,086 $37,853,289 $14,800,701
Total Deposits $36,940,803 $40,724,652 $16,517,143
Total:
Interest Income $3,994,692 $3,888,885 $4,270,572
Interest Expense 1,035,499 1,145,132 1,482,577
--------- --------- ---------
Net interest
income $2,959,193 $2,743,753 $2,787,995
Non-interest
income 1,189,015 986,152 1,301,974
Provision for loan
losses 1,903,973 2,131,957 1,569,027
Restructuring
expenses 43,374 17,627 13,560
Other non-interest
expenses 1,878,382 1,727,465 1,806,041
Income tax
provision 92,278 (60,223) 238,843
------ ------- -------
Net income (loss) $230,201 $(86,921) $462,498
======== ======== ========
Loans Held for
Investment $146,250,724 $150,334,994 $147,247,260
Core Deposits(2) $102,873,494 $105,702,342 $78,210,226
Total Deposits $116,724,190 $121,118,898 $92,407,061
CAPITAL ONE FINANCIAL CORPORATION (COF)
LOCAL BANKING SEGMENT FINANCIAL & STATISTICAL INFORMATION
2009 2009 2008
(in thousands) Q2 Q1 Q2
-------------- --------- --------- ---------
Loans Held for Investment:
Commercial Lending
Commercial and Multi-Family
Real Estate $13,646,921 $13,619,009 $12,948,037
Middle Market 9,755,280 9,850,735 8,923,233
Specialty Lending 3,469,699 3,489,813 3,693,532
--------- --------- ---------
Total Commercial Lending $26,871,900 $26,959,557 $25,564,802
Small Ticket Commercial Real
Estate $2,503,034 $2,568,395 $2,746,931
Small Business Lending $4,561,896 $4,729,266 $4,555,432
Consumer Lending
Mortgages $6,438,461 $6,831,471 $7,803,032
Branch Based Home Equity &
Other Consumer 3,486,990 3,593,638 3,887,936
--------- --------- ---------
Total Consumer Lending $9,925,451 $10,425,109 $11,690,968
Other $(199,336) $(223,652) $(287,399)
----------- ----------- -----------
Total Loans Held for Investment $43,662,945 $44,458,675 $44,270,734
=========== =========== ===========
Non Performing Asset Rates (8):
Commercial Lending
Commercial and Multi-Family
Real Estate 2.24% 1.98% 0.87%
Middle Market 1.21% 0.57% 0.31%
Specialty Lending 1.97% 1.16% 0.25%
---- ---- ----
Total Commercial Lending 1.83% 1.36% 0.58%
Small Ticket Commercial Real
Estate 10.08% 8.00% 2.74%
Small Business Lending 2.20% 1.95% 1.17%
Consumer Lending
Mortgages 3.56% 2.36% 1.22%
Branch Based Home Equity &
Other Consumer 0.61% 0.58% 0.39%
---- ---- ----
Total Consumer Lending 2.53% 1.75% 0.95%
---- ---- ----
Total Non Performing Asset Rate 2.51% 1.91% 0.88%
==== ==== ====
Net Charge Off Rates:
Commercial Lending
Commercial and Multi-Family
Real Estate 0.95% 0.62% 0.10%
Middle Market 0.62% 0.07% 0.05%
Specialty Lending 0.99% 0.85% 0.16%
---- ---- ----
Total Commercial Lending 0.83% 0.45% 0.09%
Small Ticket Commercial Real
Estate 1.90% 1.75% (0.03)%
Small Business Lending 1.99% 1.55% 0.91%
Consumer Lending
Mortgages 0.86% 0.46% 0.35%
Branch Based Home Equity &
Other Consumer 1.47% 1.42% 1.02%
---- ---- ----
Total Consumer Lending 1.07% 0.79% 0.57%
---- ---- ----
Total Net Charge Off Rate 1.10% 0.76% 0.34%
==== ==== ====
CAPITAL ONE FINANCIAL CORPORATION (COF)
NATIONAL LENDING SUB-SEGMENT FINANCIAL & STATISTICAL SUMMARY FOR
CONTINUING OPERATIONS
MANAGED BASIS (1)
2009 2009 2008
(in thousands) Q2 Q1 Q2
-------------- --------- --------- ---------
US Card:
Interest Income $2,004,268 $1,971,389 $2,132,284
Interest Expense 417,582 466,694 608,655
------- ------- -------
Net interest income $1,586,686 $1,504,695 $1,523,629
Non-interest income 794,440 883,891 1,010,177
Provision for loan losses 1,336,736 1,521,997 1,099,453
Non-interest expenses 785,273 862,915 910,619
Income tax provision 90,691 1,286 183,307
------ ----- -------
Net income (loss) $168,426 $2,388 $340,427
======== ====== ========
Loans Held for Investment $64,760,128 $67,015,166 $68,059,998
Average Loans Held for
Investment $65,862,569 $69,187,704 $67,762,384
Loans Held for Investment
Yield 12.17% 11.40% 12.59%
Net Interest Margin 9.64% 8.70% 8.99%
Revenue Margin 14.46% 13.81% 14.96%
Risk Adjusted Margin 5.23% 5.42% 8.70%
Non-Interest Expenses as a % of
Average Loans Held for
Investment 4.77% 4.99% 5.38%
Efficiency Ratio (5) 32.98% 36.13% 35.94%
Net charge-off rate 9.23% 8.39% 6.26%
Delinquency Rate (30+ days) 4.77% 5.08% 3.85%
Purchase Volume (7) $23,610,760 $21,601,837 $26,738,213
Number of Loan Accounts (000s) 33,709 35,273 38,415
--------------
Auto Finance:
Interest Income $596,900 $606,392 $666,499
Interest Expense 223,887 236,389 276,911
------- ------- -------
Net interest income $373,013 $370,003 $389,588
Non-interest income 10,861 19,965 15,672
Provision for loan losses 125,966 166,169 230,614
Non-interest expenses 108,315 113,884 123,021
Income tax (benefit) provision 52,358 38,470 18,069
------ ------ ------
Net income (loss) $97,235 $71,445 $33,556
======= ======= =======
Loans Held for Investment $19,902,401 $20,667,910 $23,401,160
Average Loans Held for
Investment $20,291,029 $21,110,528 $24,098,881
Loans Held for Investment
Yield 11.77% 11.49% 11.06%
Net Interest Margin 7.35% 7.01% 6.47%
Revenue Margin 7.57% 7.39% 6.73%
Risk Adjusted Margin 3.91% 2.51% 2.88%
Non-Interest Expenses as a % of
Average Loans Held for Investment 2.14% 2.16% 2.04%
Efficiency Ratio (5) 28.22% 29.20% 30.36%
Net charge-off rate 3.65% 4.88% 3.84%
Delinquency Rate (30+ days) 8.89% 7.52% 7.62%
Auto Loan Originations $1,341,583 $1,463,402 $1,513,686
Number of Loan Accounts (000s) 1,584 1,610 1,710
---------------
International:
Interest Income $279,449 $260,164 $382,990
Interest Expense 68,832 73,171 128,678
------ ------ -------
Net interest income $210,617 $186,993 $254,312
Non-interest income 103,000 101,590 138,961
Provision for loan losses 183,556 160,789 140,575
Non-interest expenses 122,743 123,971 202,927
Income tax provision 2,149 1,776 16,120
----- ----- ------
Net income (loss) $5,169 $2,047 $33,651
====== ====== =======
Loans Held for Investment $8,638,441 $8,069,961 $10,740,644
Average Loans Held for
Investment $8,327,859 $8,382,679 $10,767,981
Loans Held for Investment
Yield 13.42% 12.41% 14.23%
Net Interest Margin 10.12% 8.92% 9.45%
Revenue Margin 15.06% 13.77% 14.61%
Risk Adjusted Margin 5.75% 6.47% 8.54%
Non-Interest Expenses as a % of
Average Loans Held for
Investment 5.90% 5.92% 7.54%
Efficiency Ratio (5) 39.14% 42.96% 51.60%
Net charge-off rate 9.32% 7.30% 6.07%
Delinquency Rate (30+ days) 6.69% 6.25% 5.35%
Purchase Volume (7) $2,136,039 $1,871,723 $2,879,223
Number of Loan Accounts (000s) 5,404 5,666 5,687
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.
(7) Includes all purchase transactions net of returns and excludes cash
advance transactions.
(8) 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 and
foreclosed assets.
(9) Excludes acquired Chevy Chase Bank , FSB ATM locations of 911 in Q2
2009 and 907 in Q1 2009.
(10) Excludes drive-up locations of 18 in Q2 2009, 18 in Q1 2009 and 19
in Q2 2008.
(11) Excludes acquired Chevy Chase Bank, FSB branches of 251 in Q2 2009
and 250 in Q1 2009.
CAPITAL ONE FINANCIAL CORPORATION
Reconciliation to GAAP Financial Measures
For the Three Months Ended June 30, 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 they
originated. For this reason the Company believes the "managed"
consolidated financial statements and related managed metrics to be
useful to stakeholders.
Total Reported Adjustments(1) Total Managed(2)
------------------------------------------------------------------------
Income Statement Measures(3)
Net interest income $1,946,586 $1,012,607 $2,959,193
Non-interest income 1,231,687 (42,672) 1,189,015
--------- ------- ---------
Total revenue 3,178,273 969,935 4,148,208
Provision for loan and
lease losses 934,038 969,935 1,903,973
Net charge-offs $1,119,155 $969,935 $2,089,090
--------------- ---------- -------- ----------
Balance Sheet Measures
Loans held for
investment $101,073,629 $45,177,095 $146,250,724
Total assets $171,911,307 $42,229,427 $214,140,734
Total liabilities $146,585,646 $42,229,427 $188,815,073
Average loans held for
investment $105,278,045 $43,331,087 $148,609,132
Average earning assets $151,416,846 $40,403,928 $191,820,774
Average total assets $177,589,212 $40,773,947 $218,363,159
Average total
liabilities $149,931,060 $40,773,947 $190,705,007
Delinquencies $3,745,697 $2,241,752 $5,987,449
------------- ---------- ---------- ----------
The table below presents a reconciliation of tangible common equity and
tangible assets, which are the components used to calculate the tangible
common equity "TCE" ratio. The Company believes the TCE ratio is an
important financial measure of capital strength to our investors and
readers even though it is considered to be a non-GAAP measure.
(dollars in 2009 2009 2008
millions)(unaudited) Q2 Q1 Q2
------- ------- -------
Equity $25,326 $26,744 $24,921
Less: preferred stock 38 (3,159) -
Less: intangible
assets (4) (13,985) (13,723) (13,361)
------- ------- -------
Tangible common equity $11,379 $9,862 $11,560
======= ====== =======
Total assets 214,141 219,914 200,556
Less: discontinued ops
assets (46) (31) (136)
--- --- ----
Total assets-
continuing ops 214,095 219,883 200,420
Less: intangible
assets (4) (13,985) (13,723) (13,361)
------- ------- -------
Tangible assets $200,110 $206,160 $187,059
======== ======== ========
TCE ratio 5.69 4.78 6.18
(1) Income statement adjustments reclassify the net of finance charges
of $1,153.9 million , past-due fees of $164.6 million , other interest
income of $(38.5) million and interest expense of $267.4 million ; and
net charge-offs of $969.9 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.
(4) Includes impact from related deferred taxes.
CAPITAL ONE FINANCIAL CORPORATION
Consolidated Balance Sheets
(in thousands)(unaudited)
As of As of As of
June 30 Mar 31 June 30
2009 2009 2008
---------- ---------- ----------
Assets:
Cash and due from banks $3,001,944 $3,076,926 $2,280,244
Federal funds sold and
resale agreements 603,564 663,721 1,526,799
Interest-bearing deposits
at other banks 1,166,419 4,013,678 718,070
--------- --------- -------
Cash and cash equivalents 4,771,927 7,754,325 4,525,113
Securities available for
sale 37,667,165 36,326,951 25,028,355
Securities held to maturity 87,545 90,990 -
Mortgage loans held for sale 319,975 289,337 111,824
Loans held for investment(1) 101,073,629 105,526,911 97,065,238
Less: Allowance for loan
and lease losses (4,481,827) (4,648,031) (3,311,003)
---------- ---------- ----------
Net loans held for
investment 96,591,802 100,878,880 93,754,235
Accounts receivable from
securitizations 5,219,968 4,850,508 5,301,906
Premises and equipment, net 2,824,785 2,790,733 2,321,487
Interest receivable 951,201 815,738 778,595
Goodwill(1) 13,381,056 13,076,754 12,826,738
Other(1) 10,095,883 10,513,243 6,466,018
---------- ---------- ---------
Total assets $171,911,307 $177,387,459 $151,114,271
============ ============ ============
Liabilities:
Non-interest-bearing
deposits $12,603,548 $12,422,456 $10,752,059
Interest-bearing deposits 104,120,642 108,696,442 81,655,001
Senior and subordinated
notes 10,092,619 8,258,212 8,506,339
Other borrowings 13,260,589 14,610,092 19,302,185
Interest payable 659,784 656,769 621,489
Other 5,848,464 5,999,327 5,355,733
--------- --------- ---------
Total liabilities 146,585,646 150,643,298 126,192,806
Stockholders' Equity:
Preferred stock - 3,115,722 -
Common stock 5,019 4,425 4,223
Paid-in capital, net 18,891,333 17,348,217 15,966,810
Retained earnings and
cumulative other
comprehensive income 9,598,606 9,444,639 12,115,480
Less: Treasury stock, at
cost (3,169,297) (3,168,842) (3,165,048)
---------- ---------- ----------
Total stockholders' equity 25,325,661 26,744,161 24,921,465
---------- ---------- ----------
Total liabilities and
stockholders' equity $171,911,307 $177,387,459 $151,114,271
============ ============ ============
(1) Balances at June 30, 2009 reflect adjustments made to the allocation
of purchase price of the Chevy Chase Bank acquisition. The balances at
March 31, 2009 have not been adjusted, however, if the adjustments had
been made at March 31, 2009 , net loans held for investment would have been
$100,410.3 million (a decrease of $468.6 million ), goodwill would have
been $13,367.9 million (an increase of $291.1 million ) and other assets
would have been $10,664.8 million (an increase of $151.6 million). The
allocation of purchase price is still preliminary and will be finalized
upon completion of the analysis of the fair values of Chevy Chase Bank's
assets and liabilities.
CAPITAL ONE FINANCIAL CORPORATION
Consolidated Statements of Income
(in thousands, except per share data)(unaudited)
Three Months Ended
June 30 Mar 31 June 30
2009 2009 2008
------- ------- -------
Interest Income:
Loans held for investment,
including past-due fees $2,233,808 $2,190,331 $2,297,709
Investment securities 412,845 394,780 281,084
Other 67,982 63,117 113,064
------ ------ -------
Total interest income 2,714,635 2,648,228 2,691,857
Interest Expense:
Deposits 555,579 631,848 592,576
Senior and subordinated notes 57,113 58,044 114,797
Other borrowings 155,357 171,585 256,728
------- ------- -------
Total interest expense 768,049 861,477 964,101
------- ------- -------
Net interest income 1,946,586 1,786,751 1,727,756
Provision for loan and lease losses 934,038 1,279,137 829,130
------- --------- -------
Net interest income after
provision for loan and lease
losses 1,012,548 507,614 898,626
Non-Interest Income:
Servicing and securitizations 362,416 453,637 834,740
Service charges and other customer-
related fees 491,763 506,125 524,209
Mortgage servicing and other 13,163 23,380 16,552
Interchange 126,702 140,091 132,730
Other 237,643 (32,899) 114,085
------- ------- -------
Total non-interest income 1,231,687 1,090,334 1,622,316
Non-Interest Expense:
Salaries and associate benefits 633,819 554,431 578,572
Marketing 133,970 162,712 288,100
Communications and data processing 194,578 199,104 195,102
Supplies and equipment 128,483 118,900 131,937
Occupancy 114,885 100,251 80,137
Restructuring expense 43,374 17,627 13,560
Other 672,647 592,067 532,193
------- ------- -------
Total non-interest expense 1,921,756 1,745,092 1,819,601
--------- --------- ---------
Income (loss) from continuing
operations before income taxes 322,479 (147,144) 701,341
Income taxes 92,278 (60,223) 238,843
------ ------- -------
Income (loss) from continuing
operations, net of tax 230,201 (86,921) 462,498
Loss from discontinued operations,
net of tax (5,998) (24,958) (9,593)
------ ------- ------
Net income (loss) $224,203 $(111,879) $452,905
======== ========= ========
Net income (loss) available to
common shareholders $(275,515) $(176,069) $452,905
========= ========= ========
Basic earnings per common share
Income (loss) from continuing
operations $(0.64) $(0.39) $1.24
Loss from discontinued operations (0.01) (0.06) (0.03)
----- ----- -----
Net Income (loss) per common share $(0.65) $(0.45) $1.21
====== ====== =====
Diluted earnings per common share
Income (loss) from continuing
operations $(0.64) $(0.39) $1.24
Loss from discontinued operations (0.01) (0.06) (0.03)
----- ----- -----
Net Income (loss) per common share $(0.65) $(0.45) $1.21
====== ====== =====
Dividends paid per common share $0.05 $0.375 $0.375
===== ====== ======
Six Months Ended
June 30 June 30
2009 2008
------- -------
Interest Income:
Loans held for investment,
including past-due fees $4,424,139 $4,806,102
Investment securities 807,625 538,825
Other 131,099 226,455
------- -------
Total interest income 5,362,863 5,571,382
Interest Expense:
Deposits 1,187,427 1,202,965
Senior and subordinated notes 115,157 255,767
Other borrowings 326,942 572,977
------- -------
Total interest expense 1,629,526 2,031,709
--------- ---------
Net interest income 3,733,337 3,539,673
Provision for loan and lease losses 2,213,175 1,908,202
--------- ---------
Net interest income after
provision for loan and lease
losses 1,520,162 1,631,471
Non-Interest Income:
Servicing and securitizations 816,053 1,917,802
Service charges and other customer-
related fees 997,888 1,098,270
Mortgage servicing and other 36,543 51,807
Interchange 266,793 284,632
Other 204,744 326,283
------- -------
Total non-interest income 2,322,021 3,678,794
Non-Interest Expense:
Salaries and associate benefits 1,188,250 1,189,852
Marketing 296,682 585,893
Communications and data processing 393,682 382,345
Supplies and equipment 247,383 262,868
Occupancy 215,136 168,217
Restructuring expense 61,001 66,319
Other 1,264,714 986,384
--------- -------
Total non-interest expense 3,666,848 3,641,878
--------- ---------
Income (loss) from continuing
operations before income taxes 175,335 1,668,387
Income taxes 32,055 573,334
------ -------
Income (loss) from continuing
operations, net of tax 143,280 1,095,053
Loss from discontinued operations,
net of tax (30,956) (93,644)
------- -------
Net income (loss) $112,324 $1,001,409
======== ==========
Net income (loss) available to
common shareholders $(451,584) $1,001,409
========= ==========
Basic earnings per common share
Income (loss) from continuing
operations $(1.03) $2.95
Loss from discontinued operations (0.08) (0.25)
----- -----
Net Income (loss) per common share $(1.11) $2.70
====== =====
Diluted earnings per common share
Income (loss) from continuing
operations $(1.03) $2.94
Loss from discontinued operations (0.08) (0.25)
----- -----
Net Income (loss) per common share $(1.11) $2.69
====== =====
Dividends paid per common share $0.425 $0.75
====== =====
CAPITAL ONE FINANCIAL CORPORATION
Statements of Average Balances, Income and Expense, Yields and Rates (1)
(dollars in thousands)(unaudited)
Reported Quarter Ended 06/30/09
----------------------
Average Income/ Yield/
Balance Expense Rate
------- ------- --------
Earning assets:
Loans held for investment $105,278,045 $2,233,808 8.49%
Investment Securities (2) 37,499,187 412,845 4.40%
Other 8,623,100 67,982 3.15%
--------- ------ ----
Total earning assets $151,400,332 $2,714,635 7.17%
============ ==========
Interest-bearing liabilities:
Interest-bearing deposits
NOW accounts $10,914,679 $14,602 0.54%
Money market deposit accounts 35,751,007 103,855 1.16%
Savings accounts 9,931,058 13,399 0.54%
Other consumer time deposits 35,841,099 300,572 3.35%
Public fund CD's of $100,000
or more 1,117,460 3,450 1.23%
CD's of $100,000 or more 11,097,722 108,228 3.90%
Foreign time deposits 2,387,093 11,473 1.92%
--------- ------ ----
Total interest-bearing deposits $107,040,118 $555,579 2.08%
Senior and subordinated notes 8,322,746 57,113 2.74%
Other borrowings 16,274,845 155,357 3.82%
---------- ------- ----
Total interest-bearing liabilities $131,637,709 $768,049 2.33%
============ ========
----
Net interest spread 4.84%
====
Interest income to average
earning assets 7.17%
Interest expense to average
earning assets 2.03%
----
Net interest margin 5.14%
====
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 7,720,249 63,117 3.27%
--------- ------ ----
Total earning assets $145,374,481 $2,648,228 7.29%
============ ==========
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 4.52%
====
Interest income to average
earning assets 7.29%
Interest expense to average
earning assets 2.37%
----
Net interest margin 4.92%
====
Reported Quarter Ended 06/30/08
----------------------
Average Income/ Yield/
Balance Expense Rate
------- ------- --------
Earning assets:
Loans held for investment $97,949,572 $2,297,709 9.38%
Investment Securities (2) 24,165,083 281,084 4.65%
Other 9,514,367 113,064 4.75%
--------- ------- ----
Total earning assets $131,629,022 $2,691,857 8.18%
============ ==========
Interest-bearing liabilities:
Interest-bearing deposits
NOW accounts $8,769,608 $24,802 1.13%
Money market deposit accounts 24,881,125 165,871 2.67%
Savings accounts 8,191,586 19,521 0.95%
Other consumer time deposits 22,676,841 243,921 4.30%
Public fund CD's of $100,000
or more 1,476,155 10,313 2.79%
CD's of $100,000 or more 9,124,586 98,516 4.32%
Foreign time deposits 3,555,189 29,632 3.33%
--------- ------ ----
Total interest-bearing deposits $78,675,090 $592,576 3.01%
Senior and subordinated notes 9,125,017 114,797 5.03%
Other borrowings 24,851,821 256,728 4.13%
---------- ------- ----
Total interest-bearing liabilities $112,651,928 $964,101 3.42%
============ ========
----
Net interest spread 4.76%
====
Interest income to average
earning assets 8.18%
Interest expense to average
earning assets 2.93%
----
Net interest margin 5.25%
====
(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 06/30/09
----------------------
Average Income/ Yield/
Balance Expense Rate
------- ------- --------
Earning assets:
Loans held for investment $148,609,132 $3,564,773 9.60%
Investment Securities (3) 37,499,187 412,845 4.40%
Other 5,695,941 17,074 1.20%
--------- ------ ----
Total earning assets $191,804,260 $3,994,692 8.33%
============ ==========
Interest-bearing liabilities:
Interest-bearing deposits
NOW accounts $10,914,679 $14,602 0.54%
Money market deposit accounts 35,751,007 103,855 1.16%
Savings accounts 9,931,058 13,399 0.54%
Other consumer time deposits 35,841,099 300,572 3.35%
Public fund CD's of $100,000
or more 1,117,460 3,450 1.23%
CD's of $100,000 or more 11,097,722 108,228 3.90%
Foreign time deposits 2,387,093 11,473 1.92%
--------- ------ ----
Total interest-bearing deposits $107,040,118 $555,579 2.08%
Senior and subordinated notes 8,322,746 57,113 2.74%
Other borrowings 16,274,845 155,357 3.82%
Securitization liability 40,806,188 267,450 2.62%
---------- ------- ----
Total interest-bearing liabilities $172,443,897 $1,035,499 2.40%
============ ==========
----
Net interest spread 5.93%
====
Interest income to average
earning assets 8.33%
Interest expense to average
earning assets 2.16%
----
Net interest margin 6.17%
====
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 5,222,716 15,743 1.21%
--------- ------ ----
Total earning assets $186,816,634 $3,888,885 8.33%
============ ==========
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%
Securitization liability 41,766,616 283,655 2.72%
---------- ------- ----
Total interest-bearing liabilities $166,087,086 $1,145,132 2.76%
============ ==========
----
Net interest spread 5.57%
====
Interest income to average earning assets 8.33%
Interest expense to average earning assets 2.46%
----
Net interest margin 5.87%
====
Managed (1) Quarter Ended 06/30/08
----------------------
Average Income/ Yield/
Balance Expense Rate
------- ------- -------
Earning assets:
Loans held for investment $147,715,693 $3,929,069 10.64%
Investment Securities (3) 24,165,083 281,084 4.65%
Other 7,539,750 60,419 3.21%
--------- ------ ----
Total earning assets $179,420,526 $4,270,572 9.52%
============ ==========
Interest-bearing liabilities:
Interest-bearing deposits
NOW accounts $8,769,608 $24,802 1.13%
Money market deposit accounts 24,881,125 165,871 2.67%
Savings accounts 8,191,586 19,521 0.95%
Other consumer time deposits 22,676,841 243,921 4.30%
Public fund CD's of $100,000
or more 1,476,155 10,313 2.79%
CD's of $100,000 or more 9,124,586 98,516 4.32%
Foreign time deposits 3,555,189 29,632 3.33%
--------- ------ ----
Total interest-bearing deposits $78,675,090 $592,576 3.01%
Senior and subordinated notes 9,125,017 114,797 5.03%
Other borrowings 24,851,821 256,728 4.13%
Securitization liability 49,317,336 518,477 4.21%
---------- ------- ----
Total interest-bearing liabilities $161,969,264 $1,482,578 3.66%
============ ==========
----
Net interest spread 5.86%
====
Interest income to average earning assets 9.52%
Interest expense to average earning assets 3.30%
----
Net interest margin 6.22%
====
(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.
SOURCECapital One Financial Corporation -0-07/23/2009 /CONTACT: Investor Relations,Jeff Norris orDanielle Dietz , +1-703-720-2455, or Media Relations,Tatiana Stead , +1-703-720-2352, orJulie Rakes , +1-804-284-5800/ /Web Site: http://www.capitalone.com/ / (COF) CO:Capital One Financial Corporation ST:Virginia IN: FIN SU: ERN CCA PR -- NE50700 -- 580007/23/2009 16:05 EDT http://www.prnewswire.com