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ý
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
|
For the quarterly period ended March 31, 2015
|
OR
|
¨
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
|
For the transition period from
to
Commission File No. 1-13300
|
Delaware
|
|
54-1719854
|
(State or Other Jurisdiction of
Incorporation or Organization)
|
|
(I.R.S. Employer
Identification No.)
|
|
|
|
1680 Capital One Drive,
McLean, Virginia
|
|
22102
|
(Address of Principal Executive Offices)
|
|
(Zip Code)
|
Large accelerated filer
|
|
ý
|
|
Accelerated filer
|
|
¨
|
Non-accelerated filer
|
|
¨
|
|
Smaller reporting company
|
|
¨
|
|
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Page
|
Item
1.
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Item 2.
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||
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i
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Capital One Financial Corporation (COF)
|
Item 3.
|
||
Item 4.
|
||
|
|
|
Item 1.
|
||
Item 1A.
|
||
Item 2.
|
||
Item 3.
|
||
Item 4.
|
||
Item 5.
|
||
Item 6.
|
||
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|
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|
ii
|
Capital One Financial Corporation (COF)
|
|
|
|
MD&A Tables:
|
Page
|
|
1
|
||
2
|
||
3
|
||
4
|
||
5
|
||
6
|
||
7
|
||
7.1
|
||
7.2
|
||
8
|
||
9
|
||
10
|
||
11
|
||
12
|
||
13
|
||
14
|
||
15
|
||
16
|
||
17
|
||
18
|
Commercial Loans by Industry
|
|
19
|
||
20
|
||
21
|
||
22
|
||
23
|
||
24
|
||
25
|
||
26
|
||
27
|
||
28
|
||
29
|
||
30
|
||
31
|
||
32
|
||
33
|
||
34
|
||
|
|
|
Supplemental Table:
|
|
|
A
|
|
iii
|
Capital One Financial Corporation (COF)
|
|
|
INTRODUCTION
|
•
|
Capital One Bank (USA), National Association (“COBNA”), which offers credit and debit card products, other lending products and deposit products; and
|
•
|
Capital One, National Association (“CONA”), which offers a broad spectrum of banking products and financial services to consumers, small businesses and commercial clients.
|
•
|
Credit Card:
Consists of our domestic consumer and small business card lending, national closed-end installment lending and the international card lending businesses in Canada and the United Kingdom (“U.K.”).
|
|
1
|
Capital One Financial Corporation (COF)
|
•
|
Consumer Banking:
Consists of our branch-based lending and deposit gathering activities for consumers and small businesses and national deposit gathering, auto lending and consumer home loan lending and servicing activities.
|
•
|
Commercial Banking:
Consists of our lending, deposit gathering and servicing activities provided to commercial real estate and commercial and industrial customers. Our commercial and industrial customers typically include companies with annual revenues between $10 million and $1 billion.
|
|
2
|
Capital One Financial Corporation (COF)
|
SUMMARY OF SELECTED FINANCIAL DATA
|
|
|
Three Months Ended March 31,
|
|||||||||
(Dollars in millions, except as noted)
|
|
2015
|
|
2014
|
|
Change
|
|||||
Income statement
|
|
|
|
|
|
|
|||||
Net interest income
|
|
$
|
4,576
|
|
|
$
|
4,350
|
|
|
5%
|
|
Non-interest income
|
|
1,071
|
|
|
1,020
|
|
|
5
|
|
||
Total net revenue
|
|
5,647
|
|
|
5,370
|
|
|
5
|
|
||
Provision for credit losses
|
|
935
|
|
|
735
|
|
|
27
|
|
||
Non-interest expense:
|
|
|
|
|
|
|
|||||
Marketing
|
|
375
|
|
|
325
|
|
|
15
|
|
||
Amortization of intangibles
|
|
110
|
|
|
143
|
|
|
(23
|
)
|
||
Acquisition-related
|
|
7
|
|
|
23
|
|
|
(70
|
)
|
||
Operating expenses
|
|
2,557
|
|
|
2,441
|
|
|
5
|
|
||
Total non-interest expense
|
|
3,049
|
|
|
2,932
|
|
|
4
|
|
||
Income from continuing operations before income taxes
|
|
1,663
|
|
|
1,703
|
|
|
(2
|
)
|
||
Income tax provision
|
|
529
|
|
|
579
|
|
|
(9
|
)
|
||
Income from continuing operations, net of tax
|
|
1,134
|
|
|
1,124
|
|
|
1
|
|
||
Income from discontinued operations, net of tax
|
|
19
|
|
|
30
|
|
|
(37
|
)
|
||
Net income
|
|
1,153
|
|
|
1,154
|
|
|
—
|
|
||
Dividends and undistributed earnings allocated to participating securities
|
|
(6
|
)
|
|
(5
|
)
|
|
20
|
|
||
Preferred stock dividends
|
|
(32
|
)
|
|
(13
|
)
|
|
146
|
|
||
Net income available to common stockholders
|
|
$
|
1,115
|
|
|
$
|
1,136
|
|
|
(2
|
)
|
Common share statistics
|
|
|
|
|
|
|
|
|
|
||
Basic earnings per common share:
|
|
|
|
|
|
|
|||||
Net income from continuing operations
|
|
$
|
2.00
|
|
|
$
|
1.94
|
|
|
3%
|
|
Income from discontinued operations
|
|
0.03
|
|
|
0.05
|
|
|
(40
|
)
|
||
Net income per basic common share
|
|
$
|
2.03
|
|
|
$
|
1.99
|
|
|
2
|
|
Diluted earnings per common share:
|
|
|
|
|
|
|
|||||
Net income from continuing operations
|
|
$
|
1.97
|
|
|
$
|
1.91
|
|
|
3
|
|
Income from discontinued operations
|
|
0.03
|
|
|
0.05
|
|
|
(40
|
)
|
||
Net income per diluted common share
|
|
$
|
2.00
|
|
|
$
|
1.96
|
|
|
2
|
|
Weighted average common shares outstanding:
|
|
|
|
|
|
|
|||||
Basic
|
|
550.2
|
|
|
571.0
|
|
|
(4
|
)
|
||
Diluted
|
|
557.2
|
|
|
580.3
|
|
|
(4
|
)
|
||
Dividends paid per common share
|
|
$
|
0.30
|
|
|
$
|
0.30
|
|
|
—
|
|
Balance sheet (average balances)
|
|
|
|
|
|
|
|||||
Loans held for investment
|
|
$
|
205,194
|
|
|
$
|
193,722
|
|
|
6%
|
|
Interest-earning assets
|
|
278,427
|
|
|
262,659
|
|
|
6
|
|
||
Total assets
|
|
309,401
|
|
|
293,551
|
|
|
5
|
|
||
Interest-bearing deposits
|
|
182,998
|
|
|
184,183
|
|
|
(1
|
)
|
||
Total deposits
|
|
207,851
|
|
|
205,842
|
|
|
1
|
|
||
Borrowings
|
|
46,082
|
|
|
35,978
|
|
|
28
|
|
||
Common equity
|
|
44,575
|
|
|
42,006
|
|
|
6
|
|
||
Total stockholders’ equity
|
|
46,397
|
|
|
42,859
|
|
|
8
|
|
||
|
|
|
|
|
|
|
|
3
|
Capital One Financial Corporation (COF)
|
|
|
Three Months Ended March 31,
|
|||||||||
(Dollars in millions, except as noted)
|
|
2015
|
|
2014
|
|
Change
|
|||||
Selected performance metrics
|
|
|
|
|
|
|
|
|
|
||
Purchase volume
(2)
|
|
$
|
57,383
|
|
|
$
|
47,434
|
|
|
21%
|
|
Total net revenue margin
(3)
|
|
8.11
|
%
|
|
8.18
|
%
|
|
(7
|
)bps
|
||
Net interest margin
(4)
|
|
6.57
|
|
|
6.62
|
|
|
(5
|
)
|
||
Return on average assets
|
|
1.47
|
|
|
1.53
|
|
|
(6
|
)
|
||
Return on average tangible assets
(5)
|
|
1.54
|
|
|
1.62
|
|
|
(8
|
)
|
||
Return on average common equity
(6)
|
|
9.84
|
|
|
10.53
|
|
|
(69
|
)
|
||
Return on average tangible common equity
(7)
|
|
15.00
|
|
|
16.83
|
|
|
(183
|
)
|
||
Equity-to-assets ratio
|
|
15.00
|
|
|
14.60
|
|
|
40
|
|
||
Non-interest expense as a % of average loans held for investment
(8)
|
|
5.94
|
|
|
6.05
|
|
|
(11
|
)
|
||
Efficiency ratio
(9)
|
|
53.99
|
|
|
54.60
|
|
|
(61
|
)
|
||
Effective income tax rate from continuing operations
|
|
31.8
|
|
|
34.0
|
|
|
(220
|
)
|
||
Net charge-offs
|
|
$
|
881
|
|
|
$
|
931
|
|
|
(5)%
|
|
Net charge-off rate
(10)
|
|
1.72
|
%
|
|
1.92
|
%
|
|
(20
|
)bps
|
||
Net charge-off rate (excluding Acquired Loans)
(11)
|
|
1.93
|
|
|
2.24
|
|
|
(31
|
)
|
(Dollars in millions, except as noted)
|
|
March 31, 2015
|
|
December 31, 2014
|
|
Change
|
|||||
Balance sheet (period end)
|
|
|
|
|
|
|
|||||
Loans held for investment
|
|
$
|
203,978
|
|
|
$
|
208,316
|
|
|
(2)%
|
|
Interest-earning assets
|
|
275,837
|
|
|
277,849
|
|
|
(1
|
)
|
||
Total assets
|
|
306,224
|
|
|
308,167
|
|
|
(1
|
)
|
||
Interest-bearing deposits
|
|
185,208
|
|
|
180,467
|
|
|
3
|
|
||
Total deposits
|
|
210,440
|
|
|
205,548
|
|
|
2
|
|
||
Borrowings
|
|
41,029
|
|
|
48,457
|
|
|
(15
|
)
|
||
Common equity
|
|
43,908
|
|
|
43,231
|
|
|
2
|
|
||
Total stockholders’ equity
|
|
45,730
|
|
|
45,053
|
|
|
2
|
|
||
Credit quality metrics (period end)
|
|
|
|
|
|
|
|||||
Allowance for loan and lease losses
|
|
$
|
4,405
|
|
|
$
|
4,383
|
|
|
1%
|
|
Allowance as a % of loans held for investment (“allowance coverage ratio”)
|
|
2.16
|
%
|
|
2.10
|
%
|
|
6
|
bps
|
||
Allowance as a % of loans held for investment (excluding Acquired Loans)
(11)
|
|
2.41
|
|
|
2.36
|
|
|
5
|
|
||
30+ day performing delinquency rate
|
|
2.32
|
|
|
2.62
|
|
|
(30
|
)
|
||
30+ day performing delinquency rate (excluding Acquired Loans)
(11)
|
|
2.61
|
|
|
2.95
|
|
|
(34
|
)
|
||
30+ day delinquency rate
|
|
2.58
|
|
|
2.91
|
|
|
(33
|
)
|
||
30+ day delinquency rate (excluding Acquired Loans)
(11)
|
|
2.90
|
|
|
3.28
|
|
|
(38
|
)
|
||
Capital ratios
|
|
|
|
|
|
|
|
||||
Common equity Tier 1 capital ratio
|
|
12.46
|
%
|
|
12.46
|
%
|
|
—
|
|
||
Tier 1 risk-based capital ratio
|
|
13.22
|
|
|
13.23
|
|
|
(1
|
)
|
||
Total risk-based capital ratio
|
|
15.07
|
|
|
15.14
|
|
|
(7
|
)
|
||
Tier 1 leverage ratio
|
|
10.66
|
|
|
10.77
|
|
|
(11
|
)
|
||
Tangible common equity (“TCE
”
) ratio
(12)
|
|
9.83
|
|
|
9.49
|
|
|
34
|
|
||
Supplementary leverage ratio
(13)
|
|
9.22
|
|
|
N/A
|
|
|
**
|
|
||
Others
|
|
|
|
|
|
|
|||||
Employees (in thousands), period end
|
|
47.0
|
|
|
46.0
|
|
|
2%
|
|
(1)
|
As of January 1, 2015, we changed our accounting principle to move from a gross basis of presentation to a net basis, for presenting qualifying derivative assets and liabilities, as well as the related right to reclaim cash collateral or obligation to return cash collateral. See “
Note 1—Summary of Significant Accounting Policies
” for additional information. Prior period results, excluding regulatory ratios, have been recast to conform to this presentation.
|
(2)
|
Consists of credit card purchase transactions, net of returns, for the period for both loans classified as held for investment and loans classified as held for sale. Excludes cash advance and balance transfer transactions.
|
(3)
|
Calculated based on annualized total net revenue for the period divided by average interest-earning assets for the period.
|
(4)
|
Calculated based on annualized net interest income for the period divided by average interest-earning assets for the period.
|
|
4
|
Capital One Financial Corporation (COF)
|
(5)
|
Calculated based on annualized income from continuing operations, net of tax, for the period divided by average tangible assets for the period. See “MD&A—Table
A
—Reconciliation of Non-GAAP Measures and Calculation of Regulatory Capital Measures” for additional information.
|
(6)
|
Calculated based on the annualized sum of (i) income from continuing operations, net of tax; (ii) less dividends and undistributed earnings allocated to participating securities; (iii) less preferred stock dividends, for the period, divided by average common equity. Our calculation of return on average common equity may not be comparable to similarly titled measures reported by other companies.
|
(7)
|
Calculated based on the annualized sum of (i) income from continuing operations, net of tax; (ii) less dividends and undistributed earnings allocated to participating securities; (iii) less preferred stock dividends, for the period, divided by average TCE. Our calculation of return on average TCE may not be comparable to similarly titled measures reported by other companies. See “MD&A—Table
A
—Reconciliation of Non-GAAP Measures and Calculation of Regulatory Capital Measures” for additional information.
|
(8)
|
Calculated based on annualized non-interest expense for the period divided by average loans held for investment for the period.
|
(9)
|
Calculated based on non-interest expense for the period divided by total net revenue for the period.
|
(10)
|
Calculated based on annualized net charge-offs for the period divided by average loans held for investment for the period.
|
(11)
|
Calculation of ratio adjusted to exclude Acquired Loans. See “MD&A—Glossary and Acronyms” for the definition of Acquired Loans.
|
(12)
|
The TCE ratio is a non-GAAP measure calculated as TCE divided by tangible assets. See “MD&A—Table
A
—Reconciliation of Non-GAAP Measures and Calculation of Regulatory Capital Measures” for the calculation of this measure and reconciliation to the comparative GAAP measure.
|
(13)
|
Supplementary leverage ratio is a regulatory capital measure calculated based on Tier 1 capital under the Basel III Standardized Approach divided by total leverage exposure. See “MD&A—Capital Management” for additional information.
|
EXECUTIVE SUMMARY AND BUSINESS OUTLOOK
|
•
|
Earnings:
Our net income remained flat at
$1.2 billion
in
the first quarter of 2015
compared to
the first quarter of 2014
as the increase in net income from continuing operations was offset by the decrease in net income from discontinued operations. The increase in net income from continuing operations was driven by (i) an increase in interest income due to growth in our credit card, auto and commercial loan portfolios partially offset by the planned run-off of our acquired home loan portfolio; and (ii) an increase in non-interest income primarily attributable to higher interchange fees partially offset by lower service charges and other customer-related fees in our Credit Card business. These increases were partially offset by (i) an increase in provision for credit losses due to the change from an allowance release in
the first quarter of 2014
to an allowance build in
the first quarter of 2015
; and (ii) an increase in non-interest expense driven by higher operating and marketing expenses associated with loan growth. The decrease in net income from discontinued operations was due to a smaller release in representation and warranty reserve in the first quarter of 2015.
|
•
|
Loans Held for Investment:
Period-end loans held for investment decreased by
$4.3 billion
, or
2%
, to
$204.0 billion
as of
March 31, 2015
from December 31, 2014,
driven by seasonal paydowns in our credit card loan portfolio in our Credit Card business and the planned run-off of our acquired home loan portfolio partially offset by growth in the auto loan portfolio in our Consumer Banking business
. Average loans held for investment increased by
$11.5 billion
, or
6%
, to
$205.2 billion
in
the first quarter of 2015
, compared to the first quarter 2014, primarily due to continued strong auto loan originations
|
|
5
|
Capital One Financial Corporation (COF)
|
•
|
Net Charge-off and Delinquency Statistics:
Our net charge-off rate decreased by
20
basis points to
1.72%
in
the first quarter of 2015
compared to
the first quarter of 2014
, primarily driven by lower charge-offs in our Credit Card business and average loan growth. The overall low net charge-off rates compared to our historical levels were largely due to continued economic improvement and portfolio seasoning. Our 30+ day delinquency rate declined to
2.58%
as of
March 31, 2015
from
2.91%
as of
December 31, 2014
, primarily due to seasonally lower delinquency inventories. We provide additional information on our credit quality metrics below under “Business Segment Financial Performance” and “Credit Risk Profile.”
|
•
|
Allowance for Loan and Lease Losses:
Our allowance for loan and lease losses increased by
$22 million
to
$4.4 billion
as of
March 31, 2015
from December 31, 2014.
The increase in the allowance for loan and lease losses was primarily driven by portfolio-specific risks in our commercial loan portfolio in our Commercial Banking business and loan growth in our auto loan portfolio in our Consumer Banking business, partially offset by an allowance release as credit improved in our credit card loan portfolio in our Credit Card business.
The allowance coverage ratio increased by
6
basis points to
2.16%
as of
March 31, 2015
from
December 31, 2014
.
|
•
|
Representation and Warranty Reserve:
The mortgage representation and warranty reserve decreased by
$58 million
to
$673 million
as of
March 31, 2015
from
December 31, 2014
. The decrease in the representation and warranty reserve was primarily driven by claims paid and legal developments, which includes settlements. We recorded a net benefit for mortgage representation and warranty losses of
$18 million
(which includes a provision of
$1 million
before taxes in continuing operations and a benefit of
$19 million
before taxes in discontinued operations) in
the first quarter of 2015
.
|
|
|
Three Months Ended March 31,
|
||||||||||||||||||||||||||
|
|
2015
|
|
2014
|
||||||||||||||||||||||||
|
|
Total Net Revenue
(1)
|
|
Net Income (Loss)
(2)
|
|
Total Net Revenue
(1)
|
|
Net Income (Loss)
(2)
|
||||||||||||||||||||
(Dollars in millions)
|
|
Amount
|
|
% of
Total |
|
Amount
|
|
% of
Total |
|
Amount
|
|
% of
Total |
|
Amount
|
|
% of
Total |
||||||||||||
Credit Card
|
|
$
|
3,482
|
|
|
62
|
%
|
|
$
|
668
|
|
|
59
|
%
|
|
$
|
3,310
|
|
|
62
|
%
|
|
$
|
668
|
|
|
60
|
%
|
Consumer Banking
|
|
1,592
|
|
|
28
|
|
|
266
|
|
|
23
|
|
|
1,583
|
|
|
30
|
|
|
330
|
|
|
29
|
|
||||
Commercial Banking
(3)
|
|
575
|
|
|
10
|
|
|
155
|
|
|
14
|
|
|
508
|
|
|
9
|
|
|
137
|
|
|
12
|
|
||||
Other
(4)
|
|
(2
|
)
|
|
—
|
|
|
45
|
|
|
4
|
|
|
(31
|
)
|
|
(1
|
)
|
|
(11
|
)
|
|
(1
|
)
|
||||
Total from continuing operations
|
|
$
|
5,647
|
|
|
100
|
%
|
|
$
|
1,134
|
|
|
100
|
%
|
|
$
|
5,370
|
|
|
100
|
%
|
|
$
|
1,124
|
|
|
100
|
%
|
(1)
|
Total net revenue consists of net interest income and non-interest income.
|
(2)
|
Net income (loss) for our business segments is based on income (loss) from continuing operations, net of tax.
|
(3)
|
Some of our tax-related commercial investments generate tax-exempt income or tax credits. Accordingly, we make certain reclassifications within our Commercial Banking business results to present revenues and yields on a taxable-equivalent basis, calculated assuming an effective tax rate approximately equal to our federal statutory tax rate of 35% with offsetting reclassifications within the Other category.
|
(4)
|
Includes the residual impact of the allocation of our centralized Corporate Treasury group activities, unallocated corporate expense that do not directly support the operations of the business segments, and other items as described in “Note 19—Business Segments” in our 2014 Form 10-K.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
•
|
Credit Card:
Net income from continuing operations in our Credit Card business was flat at
$668 million
in
the first quarter of 2015
, compared to
the first quarter of 2014
, due to higher net interest income primarily driven by loan growth and higher non-interest income attributable to interchange fees, offset by lower service charges and customer-related fees, higher
|
|
6
|
Capital One Financial Corporation (COF)
|
•
|
Consumer Banking:
Our Consumer Banking business generated net income from continuing operations of
$266 million
in
the first quarter of 2015
, compared to net income from continuing operations of
$330 million
in
the first quarter of 2014
. The decrease in net income was primarily attributable to an allowance build in the first quarter of 2015 compared to a release in the first quarter of 2014 and higher non-interest expenses largely driven by higher infrastructure spending in our retail banking business and growth in our auto loan portfolio. The decrease was partially offset by higher net interest income generated by growth in our auto loan portfolio partially offset by the planned run-off of the acquired home loan portfolio. Period-end loans held for investment in our Consumer Banking business
decreased
by
$60 million
to
$71.4 billion
as of
March 31, 2015
from
December 31, 2014
, primarily due to the continued run-off of our acquired home loan portfolio mostly offset by growth in the auto loan portfolio.
|
•
|
Commercial Banking:
Our Commercial Banking business generated net income from continuing operations of
$155 million
in
the first quarter of 2015
compared to net income from continuing operations of
$137 million
in
the first quarter of 2014
. The increase in net income was primarily due to higher revenue net of related operating expenses driven by the growth in our average commercial loan portfolio, as well as increased fee-based services and products, partially offset by a larger allowance build. Period-end loans held for investment in our Commercial Banking business decreased by
$149 million
to
$50.7 billion
as of
March 31, 2015
from
December 31, 2014
.
|
|
7
|
Capital One Financial Corporation (COF)
|
CRITICAL ACCOUNTING POLICIES AND ESTIMATES
|
•
|
Loan loss reserves
|
•
|
Asset impairment
|
•
|
Fair value of financial instruments
|
•
|
Representation and warranty reserves
|
•
|
Customer rewards reserves
|
ACCOUNTING CHANGES AND DEVELOPMENTS
|
|
8
|
Capital One Financial Corporation (COF)
|
CONSOLIDATED RESULTS OF OPERATIONS
|
|
9
|
Capital One Financial Corporation (COF)
|
|
|
Three Months Ended March 31,
|
||||||||||||||||||||
|
|
2015
|
|
2014
|
||||||||||||||||||
(Dollars in millions)
|
|
Average
Balance
|
|
Interest
Income/
Expense
(2)(3)
|
|
Yield/
Rate
|
|
Average
Balance
|
|
Interest
Income/
Expense
(2)(3)
|
|
Yield/
Rate
|
||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest-earning assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Credit card:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Domestic credit card
|
|
$
|
74,875
|
|
|
$
|
2,660
|
|
|
14.21
|
%
|
|
$
|
69,800
|
|
|
$
|
2,478
|
|
|
14.20
|
%
|
International credit card
|
|
7,811
|
|
|
291
|
|
|
14.90
|
|
|
7,690
|
|
|
319
|
|
|
16.59
|
|
||||
Total credit card
|
|
82,686
|
|
|
2,951
|
|
|
14.28
|
|
|
77,490
|
|
|
2,797
|
|
|
14.44
|
|
||||
Consumer banking
|
|
71,595
|
|
|
1,120
|
|
|
6.26
|
|
|
70,836
|
|
|
1,094
|
|
|
6.18
|
|
||||
Commercial banking
|
|
51,461
|
|
|
415
|
|
|
3.23
|
|
|
45,561
|
|
|
395
|
|
|
3.47
|
|
||||
Other
|
|
112
|
|
|
54
|
|
|
192.86
|
|
|
133
|
|
|
21
|
|
|
63.16
|
|
||||
Total loans, including loans held for sale
|
|
205,854
|
|
|
4,540
|
|
|
8.82
|
|
|
194,020
|
|
|
4,307
|
|
|
8.88
|
|
||||
Investment securities
|
|
63,181
|
|
|
406
|
|
|
2.57
|
|
|
62,124
|
|
|
416
|
|
|
2.68
|
|
||||
Cash equivalents and other interest-earning assets
|
|
9,392
|
|
|
28
|
|
|
1.19
|
|
|
6,515
|
|
|
30
|
|
|
1.84
|
|
||||
Total interest-earning assets
|
|
$
|
278,427
|
|
|
$
|
4,974
|
|
|
7.15
|
|
|
$
|
262,659
|
|
|
$
|
4,753
|
|
|
7.24
|
|
Cash and due from banks
|
|
3,099
|
|
|
|
|
|
|
2,881
|
|
|
|
|
|
||||||||
Allowance for loan and lease losses
|
|
(4,371
|
)
|
|
|
|
|
|
(4,306
|
)
|
|
|
|
|
||||||||
Premises and equipment, net
|
|
3,701
|
|
|
|
|
|
|
3,838
|
|
|
|
|
|
||||||||
Other assets
|
|
28,545
|
|
|
|
|
|
|
28,479
|
|
|
|
|
|
||||||||
Total assets
|
|
$
|
309,401
|
|
|
|
|
|
|
$
|
293,551
|
|
|
|
|
|
||||||
Liabilities and stockholders’ equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposits
|
|
$
|
182,998
|
|
|
$
|
271
|
|
|
0.59
|
|
|
$
|
184,183
|
|
|
$
|
276
|
|
|
0.60
|
|
Securitized debt obligations
|
|
11,563
|
|
|
33
|
|
|
1.14
|
|
|
10,418
|
|
|
38
|
|
|
1.46
|
|
||||
Senior and subordinated notes
|
|
20,595
|
|
|
79
|
|
|
1.53
|
|
|
14,162
|
|
|
77
|
|
|
2.17
|
|
||||
Other borrowings and liabilities
|
|
14,721
|
|
|
15
|
|
|
0.41
|
|
|
11,398
|
|
|
12
|
|
|
0.42
|
|
||||
Total interest-bearing liabilities
|
|
$
|
229,877
|
|
|
$
|
398
|
|
|
0.69
|
|
|
$
|
220,161
|
|
|
$
|
403
|
|
|
0.73
|
|
Non-interest bearing deposits
|
|
24,853
|
|
|
|
|
|
|
21,659
|
|
|
|
|
|
||||||||
Other liabilities
|
|
8,274
|
|
|
|
|
|
|
8,872
|
|
|
|
|
|
||||||||
Total liabilities
|
|
263,004
|
|
|
|
|
|
|
250,692
|
|
|
|
|
|
||||||||
Stockholders’ equity
|
|
46,397
|
|
|
|
|
|
|
42,859
|
|
|
|
|
|
||||||||
Total liabilities and stockholders’ equity
|
|
$
|
309,401
|
|
|
|
|
|
|
$
|
293,551
|
|
|
|
|
|
||||||
Net interest income/spread
|
|
|
|
$
|
4,576
|
|
|
6.46
|
|
|
|
|
$
|
4,350
|
|
|
6.51
|
|
||||
Impact of non-interest bearing funding
|
|
|
|
|
|
0.11
|
|
|
|
|
|
|
0.11
|
|
||||||||
Net interest margin
|
|
|
|
|
|
6.57
|
%
|
|
|
|
|
|
6.62
|
%
|
(1)
|
As of January 1, 2015, we changed our accounting principle to move from a gross basis of presentation to a net basis, for presenting qualifying derivative assets and liabilities, as well as the related right to reclaim cash collateral or obligation to return cash collateral. See “
Note 1—Summary of Significant Accounting Policies
” for additional information. Prior period results have been recast to conform to this presentation.
|
(2)
|
Past due fees included in interest income totaled approximately
$354 million
and
$359 million
in
the first quarters of 2015 and 2014
, respectively.
|
(3)
|
Interest income and interest expense and the calculation of average yields on interest-earning assets and average rates on interest-bearing liabilities include the impact of hedge accounting.
|
|
10
|
Capital One Financial Corporation (COF)
|
|
|
Three Months Ended March 31,
|
||||||||||
|
|
2015 vs. 2014
|
||||||||||
(Dollars in millions)
|
|
Total Variance
|
|
Volume
|
|
Rate
|
||||||
Interest income:
|
|
|
|
|
|
|
||||||
Loans:
|
|
|
|
|
|
|
||||||
Credit card
|
|
$
|
154
|
|
|
$
|
185
|
|
|
$
|
(31
|
)
|
Consumer banking
|
|
26
|
|
|
12
|
|
|
14
|
|
|||
Commercial banking
|
|
20
|
|
|
47
|
|
|
(27
|
)
|
|||
Other
|
|
33
|
|
|
(3
|
)
|
|
36
|
|
|||
Total loans, including loans held for sale
|
|
233
|
|
|
241
|
|
|
(8
|
)
|
|||
Investment securities
|
|
(10
|
)
|
|
7
|
|
|
(17
|
)
|
|||
Cash equivalents and other interest-earning assets
|
|
(2
|
)
|
|
9
|
|
|
(11
|
)
|
|||
Total interest income
|
|
221
|
|
|
257
|
|
|
(36
|
)
|
|||
Interest expense:
|
|
|
|
|
|
|
||||||
Deposits
|
|
(5
|
)
|
|
(2
|
)
|
|
(3
|
)
|
|||
Securitized debt obligations
|
|
(5
|
)
|
|
3
|
|
|
(8
|
)
|
|||
Senior and subordinated notes
|
|
2
|
|
|
25
|
|
|
(23
|
)
|
|||
Other borrowings and liabilities
|
|
3
|
|
|
4
|
|
|
(1
|
)
|
|||
Total interest expense
|
|
(5
|
)
|
|
30
|
|
|
(35
|
)
|
|||
Net interest income
|
|
$
|
226
|
|
|
$
|
227
|
|
|
$
|
(1
|
)
|
(1)
|
We calculate the change in interest income and interest expense separately for each item. The portion of interest income or interest expense attributable to both volume and rate is allocated proportionately when the calculation results in a positive value. When the portion of interest income or interest expense attributable to both volume and rate results in a negative value, the total amount is allocated to volume or rate, depending on which amount is positive.
|
|
11
|
Capital One Financial Corporation (COF)
|
|
|
Three Months Ended March 31,
|
||||||
(Dollars in millions)
|
|
2015
|
|
2014
|
||||
Service charges and other customer-related fees
|
|
$
|
437
|
|
|
$
|
474
|
|
Interchange fees, net
|
|
496
|
|
|
440
|
|
||
Net other-than-temporary impairment recognized in earnings
|
|
(15
|
)
|
|
(5
|
)
|
||
Other non-interest income:
|
|
|
|
|
||||
Provision for mortgage representation and warranty losses
(1)
|
|
(1
|
)
|
|
(14
|
)
|
||
Net gains from the sale of investment securities
|
|
2
|
|
|
13
|
|
||
Net fair value gains on free-standing derivatives
|
|
10
|
|
|
13
|
|
||
Other
|
|
142
|
|
|
99
|
|
||
Total other non-interest income
|
|
153
|
|
|
111
|
|
||
Total non-interest income
|
|
$
|
1,071
|
|
|
$
|
1,020
|
|
(1)
|
Represents the provision for mortgage representation and warranty losses recorded in continuing operations. For the total impact to the net provision for mortgage representation and warranty losses, including the portion recognized in our consolidated statements of income as a component of discontinued operations, see “MD&A—
Consolidated Balance Sheets Analysis
—Table
14
: Changes in Representation and Warranty Reserve.”
|
|
12
|
Capital One Financial Corporation (COF)
|
|
|
Three Months Ended March 31,
|
||||||
(Dollars in millions)
|
|
2015
|
|
2014
|
||||
Salaries and associate benefits
|
|
$
|
1,211
|
|
|
$
|
1,161
|
|
Occupancy and equipment
|
|
435
|
|
|
405
|
|
||
Marketing
|
|
375
|
|
|
325
|
|
||
Professional services
|
|
296
|
|
|
287
|
|
||
Communications and data processing
|
|
202
|
|
|
196
|
|
||
Amortization of intangibles
|
|
110
|
|
|
143
|
|
||
Other non-interest expense:
|
|
|
|
|
||||
Collections
|
|
84
|
|
|
99
|
|
||
Fraud losses
|
|
67
|
|
|
73
|
|
||
Bankcard, regulatory and other fee assessments
|
|
109
|
|
|
113
|
|
||
Other
|
|
160
|
|
|
130
|
|
||
Other non-interest expense
|
|
420
|
|
|
415
|
|
||
Total non-interest expense
|
|
$
|
3,049
|
|
|
$
|
2,932
|
|
|
13
|
Capital One Financial Corporation (COF)
|
BUSINESS SEGMENT FINANCIAL PERFORMANCE
|
|
14
|
Capital One Financial Corporation (COF)
|
|
|
Three Months Ended March 31,
|
|||||||||
(Dollars in millions)
|
|
2015
|
|
2014
|
|
Change
|
|||||
Selected income statement data:
|
|
|
|
|
|
|
|||||
Net interest income
|
|
$
|
2,666
|
|
|
$
|
2,525
|
|
|
6
|
%
|
Non-interest income
|
|
816
|
|
|
785
|
|
|
4
|
|
||
Total net revenue
(1)
|
|
3,482
|
|
|
3,310
|
|
|
5
|
|
||
Provision for credit losses
|
|
669
|
|
|
558
|
|
|
20
|
|
||
Non-interest expense
|
|
1,776
|
|
|
1,726
|
|
|
3
|
|
||
Income from continuing operations before income taxes
|
|
1,037
|
|
|
1,026
|
|
|
1
|
|
||
Income tax provision
|
|
369
|
|
|
358
|
|
|
3
|
|
||
Income from continuing operations, net of tax
|
|
$
|
668
|
|
|
$
|
668
|
|
|
—
|
|
Selected performance metrics:
|
|
|
|
|
|
|
|||||
Average loans held for investment
(2)
|
|
$
|
82,581
|
|
|
$
|
77,502
|
|
|
7
|
|
Average yield on loans held for investment
(3)
|
|
14.30
|
%
|
|
14.43
|
%
|
|
(13
|
)bps
|
||
Total net revenue margin
(4)
|
|
16.87
|
|
|
17.08
|
|
|
(21
|
)
|
||
Net charge-offs
|
|
$
|
719
|
|
|
$
|
780
|
|
|
(8)%
|
|
Net charge-off rate
|
|
3.48
|
%
|
|
4.02
|
%
|
|
(54
|
)bps
|
||
Card loan premium amortization and other intangible accretion
(5)
|
|
$
|
11
|
|
|
$
|
37
|
|
|
(70)%
|
|
Purchased credit card relationship (“PCCR”) intangible amortization
|
|
84
|
|
|
98
|
|
|
(14
|
)
|
||
Purchase volume
(6)
|
|
57,383
|
|
|
47,434
|
|
|
21
|
|
||
|
|
|
|
|
|
|
|||||
(Dollars in millions)
|
|
March 31, 2015
|
|
December 31, 2014
|
|
Change
|
|||||
Selected period-end data:
|
|
|
|
|
|
|
|||||
Loans held for investment
(2)
|
|
$
|
81,754
|
|
|
$
|
85,876
|
|
|
(5)%
|
|
30+ day performing delinquency rate
|
|
2.91
|
%
|
|
3.24
|
%
|
|
(33
|
)bps
|
||
30+ day delinquency rate
|
|
2.97
|
|
|
3.30
|
|
|
(33
|
)
|
||
Nonperforming loan rate
|
|
0.08
|
|
|
0.08
|
|
|
—
|
|
||
Allowance for loan and lease losses
|
|
$
|
3,130
|
|
|
$
|
3,204
|
|
|
(2)%
|
|
Allowance coverage ratio
(7)
|
|
3.83
|
%
|
|
3.73
|
%
|
|
10
|
bps
|
(1)
|
We recognize billed finance charges and fee income on open-ended loans in accordance with the contractual provisions of the credit arrangements and estimate the uncollectible amount on a quarterly basis. The estimated uncollectible amount of billed finance charges and fees is reflected as a reduction in revenue and is not included in our net charge-offs. Total net revenue was reduced by
$147 million
and $163 million in
the first quarters of 2015 and 2014
, respectively, for the estimated uncollectible amount of billed finance charges and fees. The finance charge and fee reserve totaled
$190 million
and
$216 million
as of
March 31, 2015
and
December 31, 2014
, respectively.
|
(2)
|
Period-end loans held for investment and average loans held for investment include accrued finance charges and fees, net of the estimated uncollectible amount.
|
(3)
|
Calculated by dividing annualized interest income for the period by average loans held for investment during the period. Interest income excludes various allocations including funds transfer pricing that assigns certain balance sheet assets, deposits and other liabilities and their related revenue and expenses attributable to each business segment.
|
(4)
|
Calculated by dividing annualized total net revenue for the period by average loans held for investment during the period for the specified loan category. Interest income also includes interest income on loans held for sale.
|
(5)
|
Represents the net reduction in interest income attributable to the amortization of premiums on purchased loans accounted for based on contractual cash flows and the accretion of other intangibles associated with the 2012 U.S. card acquisition.
|
(6)
|
Consists of credit card purchase transactions, net of returns for the period for both loans classified as held for investment and loans classified as held for sale. Excludes cash advance and balance transfer transactions.
|
(7)
|
Calculated by dividing the allowance for loan and lease losses as of the end of the period by period-end loans held for investment.
|
|
15
|
Capital One Financial Corporation (COF)
|
•
|
Net Interest Income:
Net interest income
increased
by
$141 million
, or
6%
, to
$2.7 billion
in
the first quarter of 2015
. The increase in net interest income was primarily driven by loan growth in the Domestic Card business.
|
•
|
Non-Interest Income:
Non-interest income
increased
by
$31 million
, or
4%
, to
$816 million
in
the first quarter of 2015
. The increase was primarily attributable to an increase in interchange fees driven by higher purchase volume, partially offset by a decline in service charges and other customer-related fees in our Credit Card business.
|
•
|
Provision for Credit Losses:
The provision for credit losses
increased
by
$111 million
, or
20%
, to
$669 million
in
the first quarter of 2015
. The increase was primarily due to a smaller release in the allowance for loan and lease losses in our Domestic Card business, partially offset by lower net charge-offs across the Credit Card business.
|
•
|
Non-Interest Expense:
Non-interest expense
increased
by
$50 million
, or
3%
, to
$1.8 billion
in
the first quarter of 2015
. The increase was largely due to higher marketing expenses associated with loan growth, partially offset by lower operating expenses and lower PCCR intangible amortization.
|
•
|
Loans Held for Investment:
Period-end loans held for investment
decreased
by
$4.1 billion
, or
5%
, to
$81.8 billion
as of
March 31, 2015
from
December 31, 2014
, primarily due to expected seasonal paydowns. Average loans held for investment
increased
by
$5.1 billion
, or
7%
, to
$82.6 billion
in
the first quarter of 2015
compared to first quarter of 2014, primarily due to loan growth in the Domestic Card business.
|
•
|
Net Charge-off and Delinquency Statistics:
Our net charge-off rate
decreased
by
54
basis points to
3.48%
in
the first quarter of 2015
compared to
the first quarter of 2014
largely due to loan growth, continued economic improvement and portfolio seasoning. The 30+ day delinquency rate
decreased
33
basis points to
2.97%
as of
March 31, 2015
from
December 31, 2014
due to seasonally lower delinquency inventories.
|
|
16
|
Capital One Financial Corporation (COF)
|
|
|
Three Months Ended March 31,
|
|||||||||
(Dollars in millions)
|
|
2015
|
|
2014
|
|
Change
|
|||||
Selected income statement data:
|
|
|
|
|
|
|
|||||
Net interest income
|
|
$
|
2,421
|
|
|
$
|
2,255
|
|
|
7%
|
|
Non-interest income
|
|
743
|
|
|
702
|
|
|
6
|
|
||
Total net revenue
(1)
|
|
3,164
|
|
|
2,957
|
|
|
7
|
|
||
Provision for credit losses
|
|
610
|
|
|
486
|
|
|
26
|
|
||
Non-interest expense
|
|
1,580
|
|
|
1,545
|
|
|
2
|
|
||
Income from continuing operations before income taxes
|
|
974
|
|
|
926
|
|
|
5
|
|
||
Income tax provision
|
|
353
|
|
|
331
|
|
|
7
|
|
||
Income from continuing operations, net of tax
|
|
$
|
621
|
|
|
$
|
595
|
|
|
4
|
|
Selected performance metrics:
|
|
|
|
|
|
|
|||||
Average loans held for investment
(2)
|
|
$
|
74,770
|
|
|
$
|
69,810
|
|
|
7
|
|
Average yield on loans held for investment
(3)
|
|
14.23
|
%
|
|
14.19
|
%
|
|
4
|
bps
|
||
Total net revenue margin
(4)
|
|
16.93
|
|
|
16.94
|
|
|
(1
|
)
|
||
Net charge-offs
|
|
$
|
664
|
|
|
$
|
700
|
|
|
(5)%
|
|
Net charge-off rate
|
|
3.55
|
%
|
|
4.01
|
%
|
|
(46
|
)bps
|
||
Card loan premium amortization and other intangible accretion
(5)
|
|
$
|
11
|
|
|
$
|
37
|
|
|
(70)%
|
|
PCCR intangible amortization
|
|
84
|
|
|
98
|
|
|
(14
|
)
|
||
Purchase volume
(6)
|
|
52,025
|
|
|
44,139
|
|
|
18
|
|
||
|
|
|
|
|
|
|
|||||
(Dollars in millions)
|
|
March 31, 2015
|
|
December 31, 2014
|
|
Change
|
|||||
Selected period-end data:
|
|
|
|
|
|
|
|||||
Loans held for investment
(2)
|
|
$
|
74,131
|
|
|
$
|
77,704
|
|
|
(5)%
|
|
30+ day delinquency rate
|
|
2.92
|
%
|
|
3.27
|
%
|
|
(35
|
)bps
|
||
Allowance for loan and lease losses
|
|
$
|
2,824
|
|
|
$
|
2,878
|
|
|
(2)%
|
|
Allowance coverage ratio
(7)
|
|
3.81
|
%
|
|
3.70
|
%
|
|
11
|
bps
|
(1)
|
We recognize billed finance charges and fee income on open-ended loans in accordance with the contractual provisions of the credit arrangements and estimate the uncollectible amount on a quarterly basis. The estimated uncollectible amount of billed finance charges and fees is reflected as a reduction in revenue and is not included in our net charge-offs.
|
(2)
|
Period-end loans held for investment and average loans held for investment include accrued finance charges and fees, net of the estimated uncollectible amount.
|
(3)
|
Calculated by dividing annualized interest income for the period by average loans held for investment during the period for the specified loan category. Interest income includes interest income on loans held for sale.
|
(4)
|
Calculated by dividing annualized total net revenue for the period by average loans held for investment during the period. Interest income excludes various allocations including funds transfer pricing that assigns certain balance sheet assets, deposits and other liabilities and their related revenue and expenses attributable to each business segment.
|
(5)
|
Represents the net reduction in interest income attributable to the amortization of premiums on purchased loans accounted for based on contractual cash flows and the accretion of other intangibles associated with the 2012 U.S. card acquisition.
|
(6)
|
Consists of domestic card purchase transactions, net of returns, for the period for both loans classified as held for investment and loans classified as held for sale. Excludes cash advance and balance transfer transactions.
|
(7)
|
Calculated by dividing the allowance for loan and lease losses as of the end of the period by period-end loans held for investment.
|
|
17
|
Capital One Financial Corporation (COF)
|
|
|
Three Months Ended March 31,
|
|||||||||
(Dollars in millions)
|
|
2015
|
|
2014
|
|
Change
|
|||||
Selected income statement data:
|
|
|
|
|
|
|
|||||
Net interest income
|
|
$
|
245
|
|
|
$
|
270
|
|
|
(9)%
|
|
Non-interest income
|
|
73
|
|
|
83
|
|
|
(12
|
)
|
||
Total net revenue
|
|
318
|
|
|
353
|
|
|
(10
|
)
|
||
Provision for credit losses
|
|
59
|
|
|
72
|
|
|
(18
|
)
|
||
Non-interest expense
|
|
196
|
|
|
181
|
|
|
8
|
|
||
Income from continuing operations before income taxes
|
|
63
|
|
|
100
|
|
|
(37
|
)
|
||
Income tax provision
|
|
16
|
|
|
27
|
|
|
(41
|
)
|
||
Income from continuing operations, net of tax
|
|
$
|
47
|
|
|
$
|
73
|
|
|
(36
|
)
|
Selected performance metrics:
|
|
|
|
|
|
|
|||||
Average loans held for investment
(1)
|
|
$
|
7,811
|
|
|
$
|
7,692
|
|
|
2
|
|
Average yield on loans held for investment
(2)
|
|
14.93
|
%
|
|
16.64
|
%
|
|
(171
|
)bps
|
||
Total net revenue margin
(3)
|
|
16.31
|
|
|
18.38
|
|
|
(207
|
)
|
||
Net charge-offs
|
|
$
|
55
|
|
|
$
|
80
|
|
|
(31)%
|
|
Net charge-off rate
|
|
2.80
|
%
|
|
4.17
|
%
|
|
(137
|
)bps
|
||
Purchase volume
(4)
|
|
$
|
5,358
|
|
|
$
|
3,295
|
|
|
63
|
%
|
|
|
|
|
|
|
|
|||||
(Dollars in millions)
|
|
March 31, 2015
|
|
December 31, 2014
|
|
Change
|
|||||
Selected period-end data:
|
|
|
|
|
|
|
|||||
Loans held for investment
(1)
|
|
$
|
7,623
|
|
|
$
|
8,172
|
|
|
(7)%
|
|
30+ day performing delinquency rate
|
|
2.81
|
%
|
|
2.94
|
%
|
|
(13
|
)bps
|
||
30+ day delinquency rate
|
|
3.44
|
|
|
3.60
|
|
|
(16
|
)
|
||
Nonperforming loan rate
|
|
0.84
|
|
|
0.86
|
|
|
(2
|
)
|
||
Allowance for loan and lease losses
|
|
$
|
306
|
|
|
$
|
326
|
|
|
(6)%
|
|
Allowance coverage ratio
(5)
|
|
4.02
|
%
|
|
3.99
|
%
|
|
3
|
bps
|
(1)
|
Period-end loans held for investment and average loans held for investment include accrued finance charges and fees, net of the estimated uncollectible amount.
|
(2)
|
Calculated by dividing annualized interest income for the period by average loans held for investment during the period. Interest income excludes various allocations including funds transfer pricing that assigns certain balance sheet assets, deposits and other liabilities and their related revenue and expenses attributable to each business segment.
|
(3)
|
Calculated by dividing annualized total net revenue for the period by average loans held for investment during the period.
|
(4)
|
Consists of international card purchase transactions, net of returns for the period. Excludes cash advance and balance transfer transactions.
|
(5)
|
Calculated by dividing the allowance for loan and lease losses as of the end of the period by period-end loans held for investment.
|
|
18
|
Capital One Financial Corporation (COF)
|
|
|
Three Months Ended March 31,
|
|||||||||
(Dollars in millions)
|
|
2015
|
|
2014
|
|
Change
|
|||||
Selected income statement data:
|
|
|
|
|
|
|
|||||
Net interest income
|
|
$
|
1,434
|
|
|
$
|
1,433
|
|
|
—
|
|
Non-interest income
|
|
158
|
|
|
150
|
|
|
5
|
|
||
Total net revenue
|
|
1,592
|
|
|
1,583
|
|
|
1
|
|
||
Provision for credit losses
|
|
206
|
|
|
140
|
|
|
47
|
|
||
Non-interest expense
|
|
970
|
|
|
930
|
|
|
4
|
|
||
Income from continuing operations before income taxes
|
|
416
|
|
|
513
|
|
|
(19
|
)
|
||
Income tax provision
|
|
150
|
|
|
183
|
|
|
(18
|
)
|
||
Income from continuing operations, net of tax
|
|
$
|
266
|
|
|
$
|
330
|
|
|
(19
|
)
|
Selected performance metrics:
|
|
|
|
|
|
|
|||||
Average loans held for investment:
(1)
|
|
|
|
|
|
|
|||||
Auto
|
|
$
|
38,387
|
|
|
$
|
32,387
|
|
|
19
|
|
Home loan
|
|
29,493
|
|
|
34,646
|
|
|
(15
|
)
|
||
Retail banking
|
|
3,561
|
|
|
3,630
|
|
|
(2
|
)
|
||
Total consumer banking
|
|
$
|
71,441
|
|
|
$
|
70,663
|
|
|
1
|
|
Average yield on loans held for investment
(2)
|
|
6.26
|
%
|
|
6.18
|
%
|
|
8
|
bps
|
||
Average deposits
|
|
$
|
169,593
|
|
|
$
|
168,676
|
|
|
1%
|
|
Average deposit interest rate
|
|
0.57
|
%
|
|
0.57
|
%
|
|
—
|
|
||
Core deposit intangible amortization
|
|
$
|
22
|
|
|
$
|
30
|
|
|
(27)%
|
|
Net charge-offs
|
|
159
|
|
|
148
|
|
|
7
|
|
||
Net charge-off rate
|
|
0.89
|
%
|
|
0.84
|
%
|
|
5
|
bps
|
||
Net charge-off rate (excluding Acquired Loans)
|
|
1.30
|
|
|
1.37
|
|
|
(7
|
)
|
||
Auto loan originations
|
|
$
|
5,185
|
|
|
$
|
4,727
|
|
|
10
|
%
|
|
|
|
|
|
|
|
|
19
|
Capital One Financial Corporation (COF)
|
(Dollars in millions)
|
|
March 31, 2015
|
|
December 31, 2014
|
|
Change
|
|||||
Selected period-end data:
|
|
|
|
|
|
|
|||||
Loans held for investment:
(1)
|
|
|
|
|
|
|
|||||
Auto
|
|
$
|
38,937
|
|
|
$
|
37,824
|
|
|
3
|
%
|
Home loan
|
|
28,905
|
|
|
30,035
|
|
|
(4
|
)
|
||
Retail banking
|
|
3,537
|
|
|
3,580
|
|
|
(1
|
)
|
||
Total consumer banking
|
|
$
|
71,379
|
|
|
$
|
71,439
|
|
|
—
|
|
30+ day performing delinquency rate
|
|
2.95
|
%
|
|
3.60
|
%
|
|
(65
|
)bps
|
||
30+ day performing delinquency rate (excluding Acquired Loans)
(3)
|
|
4.27
|
|
|
5.34
|
|
|
(107
|
)
|
||
30+ day delinquency rate
|
|
3.46
|
|
|
4.23
|
|
|
(77
|
)
|
||
30+ day delinquency rate (excluding Acquired Loans)
(3)
|
|
5.02
|
|
|
6.28
|
|
|
(126
|
)
|
||
Nonperforming loans rate
|
|
0.67
|
|
|
0.77
|
|
|
(10
|
)
|
||
Nonperforming loans rate (excluding Acquired Loans)
(3)
|
|
0.98
|
|
|
1.14
|
|
|
(16
|
)
|
||
Nonperforming asset rate
(4)
|
|
0.95
|
|
|
1.06
|
|
|
(11
|
)
|
||
Nonperforming asset rate (excluding Acquired Loans)
(3)
|
|
1.37
|
|
|
1.57
|
|
|
(20
|
)
|
||
Allowance for loan and lease losses
|
|
$
|
826
|
|
|
$
|
779
|
|
|
6
|
%
|
Allowance coverage ratio
(5)
|
|
1.16
|
%
|
|
1.09
|
%
|
|
7
|
bps
|
||
Deposits
|
|
$
|
172,502
|
|
|
$
|
168,078
|
|
|
3
|
%
|
Loans serviced for others
|
|
6,784
|
|
|
6,701
|
|
|
1
|
|
(1)
|
The period-end consumer banking loans held for investments includes Acquired Loans with carrying values of
$22.2 billion
and
$23.3 billion
as of
March 31, 2015
and
December 31, 2014
, respectively. The average balance of consumer banking loans held for investment includes Acquired Loans of
$22.6 billion
and
$27.5 billion
in
the first quarters of 2015 and 2014
, respectively.
|
(2)
|
Calculated by dividing annualized interest income for the period by average loans held for investment during the period. Interest income excludes various allocations including funds transfer pricing that assigns certain balance sheet assets, deposits and other liabilities and their related revenue and expenses attributable to each business segment.
|
(3)
|
See “
Credit Risk Profile
” and “
Note 1—Summary of Significant Accounting Policies
” in our 2014 Form 10-K for additional information on the impact of Acquired Loans on our credit quality metrics.
|
(4)
|
Calculated by dividing nonperforming assets as of the end of the period by the sum of period-end loans held for investment, foreclosed properties and other foreclosed assets.
|
(5)
|
Calculated by dividing the allowance for loan and lease losses as of the end of the period by period-end loans held for investment.
|
•
|
Net Interest Income:
Net interest income remained flat at
$1.4 billion
in
the first quarter of 2015
as the higher net interest income generated by the growth in our auto loan portfolio was offset by the lower net interest income from our home loan portfolio attributable to the planned run-off of the acquired portfolio and margin compression in auto.
|
•
|
Non-Interest Income:
Non-interest income
increased
by
$8 million
, or
5%
, to
$158 million
in
the first quarter of 2015
, primarily driven by a lower provision for representation and warranty losses in our home loan portfolio.
|
•
|
Provision for Credit Losses:
The provision for credit losses
increased
by
$66 million
, or
47%
, to
$206 million
in
the first quarter of 2015
, driven by an allowance build and higher net charge-offs due to the growth in our auto loan portfolio, as
|
|
20
|
Capital One Financial Corporation (COF)
|
•
|
Non-Interest Expense
: Non-interest expense
increased
by
$40 million
, or
4%
, to
$970 million
in
the first quarter of 2015
, largely due to higher infrastructure spending in our retail banking business and the growth in our auto loan portfolio.
|
•
|
Loans Held for Investment
: Period-end loans held for investment
decreased
by
$60 million
, or
0.1%
, to
$71.4 billion
as of
March 31, 2015
from December 31, 2014, primarily due to the continued run-off of our acquired home loan portfolio, mostly offset by growth in the auto loan portfolio. Average loans held for investments
increased
by
$778 million
, or
1%
, to
$71.4 billion
in
the first quarter of 2015
compared to
the first quarter of 2014
, due to the growth in our auto loan portfolio outpacing the run-off of our acquired home loan portfolio.
|
•
|
Deposits
: Period-end deposits
increased
by
$4.4 billion
, or
3%
, to
$172.5 billion
as of
March 31, 2015
from
December 31, 2014
, primarily driven by seasonality of our consumer deposits as well as our continued focus on deepening deposit relationships with existing customers and attract new customers.
|
•
|
Net Charge-off and Delinquency Statistics
: The net charge-off rate
increased
by
5
basis points to
0.89%
in
the first quarter of 2015
compared to
the first quarter of 2014
. The increase in the net charge-off rate reflected the run-off of our acquired home loan portfolio and a greater portion of auto loan portfolio. The 30+ day delinquency rate
decreased
by
77
basis points to
3.46%
as of
March 31, 2015
from
December 31, 2014
primarily attributable to seasonally lower auto delinquency inventories.
|
|
21
|
Capital One Financial Corporation (COF)
|
|
|
Three Months Ended March 31,
|
|||||||||
(Dollars in millions)
|
|
2015
|
|
2014
|
|
Change
|
|||||
Selected income statement data:
|
|
|
|
|
|
|
|||||
Net interest income
|
|
$
|
461
|
|
|
$
|
421
|
|
|
10%
|
|
Non-interest income
|
|
114
|
|
|
87
|
|
|
31
|
|
||
Total net revenue
(1)
|
|
575
|
|
|
508
|
|
|
13
|
|
||
Provision for credit losses
|
|
60
|
|
|
40
|
|
|
50
|
|
||
Non-interest expense
|
|
272
|
|
|
255
|
|
|
7
|
|
||
Income from continuing operations before income taxes
|
|
243
|
|
|
213
|
|
|
14
|
|
||
Income tax provision
|
|
88
|
|
|
76
|
|
|
16
|
|
||
Income from continuing operations, net of tax
|
|
$
|
155
|
|
|
$
|
137
|
|
|
13
|
|
Selected performance metrics:
|
|
|
|
|
|
|
|||||
Average loans held for investment:
(2)
|
|
|
|
|
|
|
|||||
Commercial and multifamily real estate
|
|
$
|
23,120
|
|
|
$
|
20,962
|
|
|
10
|
|
Commercial and industrial
|
|
27,190
|
|
|
23,541
|
|
|
16
|
|
||
Total commercial lending
|
|
50,310
|
|
|
44,503
|
|
|
13
|
|
||
Small-ticket commercial real estate
|
|
760
|
|
|
932
|
|
|
(18
|
)
|
||
Total commercial banking
|
|
$
|
51,070
|
|
|
$
|
45,435
|
|
|
12
|
|
Average yield on loans held for investment
(1)
|
|
3.22
|
%
|
|
3.47
|
%
|
|
(25
|
)bps
|
||
Average deposits
|
|
$
|
32,845
|
|
|
$
|
31,627
|
|
|
4%
|
|
Average deposit interest rate
|
|
0.24
|
%
|
|
0.25
|
%
|
|
(1
|
)bps
|
||
Core deposit intangible amortization
|
|
$
|
4
|
|
|
$
|
6
|
|
|
(33)%
|
|
Net charge-offs
|
|
3
|
|
|
4
|
|
|
(25
|
)
|
||
Net charge-off rate
|
|
0.02
|
%
|
|
0.04
|
%
|
|
(2
|
)bps
|
||
|
|
|
|
|
|
|
|||||
(Dollars in millions)
|
|
March 31, 2015
|
|
December 31, 2014
|
|
Change
|
|||||
Selected period-end data:
|
|
|
|
|
|
|
|||||
Loans held for investment:
(2)
|
|
|
|
|
|
|
|||||
Commercial and multifamily real estate
|
|
$
|
22,831
|
|
|
$
|
23,137
|
|
|
(1)%
|
|
Commercial and industrial
|
|
27,172
|
|
|
26,972
|
|
|
1
|
|
||
Total commercial lending
|
|
50,003
|
|
|
50,109
|
|
|
—
|
|
||
Small-ticket commercial real estate
|
|
738
|
|
|
781
|
|
|
(6
|
)
|
||
Total commercial banking
|
|
$
|
50,741
|
|
|
$
|
50,890
|
|
|
—
|
|
Nonperforming loans rate
|
|
0.31
|
%
|
|
0.34
|
%
|
|
(3
|
)bps
|
||
Nonperforming asset rate
(3)
|
|
0.31
|
|
|
0.36
|
|
|
(5
|
)
|
||
Allowance for loan and lease losses
|
|
$
|
444
|
|
|
$
|
395
|
|
|
12%
|
|
Allowance coverage ratio
(4)
|
|
0.87
|
%
|
|
0.78
|
%
|
|
9
|
bps
|
||
Deposits
|
|
$
|
32,575
|
|
|
$
|
31,954
|
|
|
2%
|
|
Loans serviced for others
(5)
|
|
14,804
|
|
|
14,131
|
|
|
5
|
|
(1)
|
The average yield on loans held for investment is calculated by dividing annualized interest income for the period by average loans held for investment during the period. Annualized interest income excludes various allocations including funds transfer pricing that assigns certain balance sheet assets, deposits and other liabilities and their related revenue and expenses attributable to each business segment. Some of our tax-related commercial investments generate tax-exempt income or tax credits. Accordingly, we make certain reclassifications within our Commercial Banking business results to present revenues and yields on a taxable-equivalent basis, calculated assuming an effective tax rate approximately equal to our federal statutory tax rate of 35%.
|
(2)
|
The period-end commercial banking loans held for investments includes Acquired Loans with carrying value of
$160 million
and
$191 millio
n as of
March 31, 2015
and
December 31, 2014
, respectively. The average balance of commercial banking loans held for investment includes Acquired Loans of
$171 million
and
$230 million
in
the first quarters of 2015 and 2014
, respectively.
|
|
22
|
Capital One Financial Corporation (COF)
|
(3)
|
Calculated by dividing nonperforming assets as of the end of the period by the sum of period-end loans held for investment, foreclosed properties and other foreclosed assets.
|
(4)
|
Calculated by dividing the allowance for loan and lease losses as of the end of the period by period-end loans held for investment.
|
(5)
|
Represents our portfolio of loans serviced for third parties related to our multifamily finance business.
|
•
|
Net Interest Income:
Net interest income
increased
by
$40 million
, or
10%
, to
$461 million
in
the first quarter of 2015
. The increase was driven by growth in commercial and multifamily real estate and commercial and industrial loans, partially offset by lower loan yields driven by market and competitive pressures.
|
•
|
Non-Interest Income:
Non-interest income
increased
by
$27 million
, or
31%
, to
$114 million
in
the first quarter of 2015
, primarily driven by increased revenue from fee-based services and products related to our multifamily finance business.
|
•
|
Provision for Credit Losses:
The provision for credit losses
increased
by
$20 million
, or
50%
to
$60 million
in
the first quarter of 2015
, primarily due to a larger allowance build in
the first quarter of 2015
attributable to portfolio specific risks, partially offset by a smaller reserve build for unfunded lending commitments.
|
•
|
Non-Interest Expense:
Non-interest expense
increased
by
$17 million
, or
7%
, to
$272 million
in
the first quarter of 2015
, driven by higher operating expenses associated with continued investments in business growth.
|
•
|
Loans Held for Investment:
Period-end loans held for investment
decreased
by
$149 million
, or less than 1%, to
$50.7 billion
as of
March 31, 2015
from December 31, 2014 as paydowns offset originations. Average loans held for investment
increased
by
$5.6 billion
, or
12%
, to
$51.1 billion
in
the first quarter of 2015
compared to the first quarter of 2014, driven by loan growth in the commercial and industrial and commercial and multifamily real estate businesses.
|
•
|
Deposits:
Period-end deposits
increased
by
$621 million
, or
2%
, to
$32.6 billion
as of
March 31, 2015
from December 31, 2014, driven by our strategy to strengthen existing relationships and increase liquidity from commercial customers.
|
•
|
Net Charge-off and Nonperforming Statistics:
The net charge-off rate
decreased
by
2
basis points to
0.02%
in
the first quarter of 2015
compared to
the first quarter of 2014
. The nonperforming loans rate
decreased
by
3
basis points to
0.31%
as of
March 31, 2015
from
December 31, 2014
.
|
|
23
|
Capital One Financial Corporation (COF)
|
|
|
Three Months Ended March 31,
|
|||||||||
(Dollars in millions)
|
|
2015
|
|
2014
|
|
Change
|
|||||
Selected income statement data:
|
|
|
|
|
|
|
|||||
Net interest income (expense)
(1)
|
|
$
|
15
|
|
|
$
|
(29
|
)
|
|
**
|
|
Non-interest income
|
|
(17
|
)
|
|
(2
|
)
|
|
**
|
|
||
Total net loss
|
|
(2
|
)
|
|
(31
|
)
|
|
(94
|
)%
|
||
Benefit for credit losses
|
|
0
|
|
|
(3
|
)
|
|
(100
|
)
|
||
Non-interest expense
|
|
31
|
|
|
21
|
|
|
48
|
|
||
Loss from continuing operations before income taxes
|
|
(33
|
)
|
|
(49
|
)
|
|
(33
|
)
|
||
Income tax benefit
|
|
(78
|
)
|
|
(38
|
)
|
|
105
|
|
||
Income (loss) from continuing operations, net of tax
|
|
$
|
45
|
|
|
$
|
(11
|
)
|
|
**
|
|
**
|
Change is not meaningful.
|
(1)
|
Some of our tax-related commercial investments generate tax-exempt income or tax credits, accordingly we make certain reclassifications within our Commercial Banking business results to present revenues and yields on a taxable-equivalent basis, calculated assuming an effective tax rate approximately equal to our federal statutory tax rate of 35%, with offsetting reclassifications within Other.
|
CONSOLIDATED BALANCE SHEETS ANALYSIS
|
|
24
|
Capital One Financial Corporation (COF)
|
|
|
March 31, 2015
|
|
December 31, 2014
|
||||||||||||
(Dollars in millions)
|
|
Amortized
Cost
|
|
Fair
Value
|
|
Amortized
Cost
|
|
Fair
Value
|
||||||||
Investment securities available for sale
|
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury securities
|
|
$
|
4,411
|
|
|
$
|
4,440
|
|
|
$
|
4,114
|
|
|
$
|
4,118
|
|
Corporate debt securities guaranteed by U.S. government agencies
|
|
600
|
|
|
598
|
|
|
819
|
|
|
800
|
|
||||
RMBS:
|
|
|
|
|
|
|
|
|
||||||||
Agency
(1)
|
|
22,344
|
|
|
22,607
|
|
|
21,804
|
|
|
21,995
|
|
||||
Non-agency
|
|
2,943
|
|
|
3,441
|
|
|
2,938
|
|
|
3,386
|
|
||||
Total RMBS
|
|
25,287
|
|
|
26,048
|
|
|
24,742
|
|
|
25,381
|
|
||||
CMBS:
|
|
|
|
|
|
|
|
|
||||||||
Agency
(1)
|
|
3,672
|
|
|
3,676
|
|
|
3,751
|
|
|
3,723
|
|
||||
Non-agency
|
|
1,711
|
|
|
1,753
|
|
|
1,780
|
|
|
1,796
|
|
||||
Total CMBS
|
|
5,383
|
|
|
5,429
|
|
|
5,531
|
|
|
5,519
|
|
||||
Other ABS
(2)
|
|
2,025
|
|
|
2,028
|
|
|
2,618
|
|
|
2,662
|
|
||||
Other securities
(3)
|
|
775
|
|
|
778
|
|
|
1,035
|
|
|
1,028
|
|
||||
Total investment securities available for sale
|
|
$
|
38,481
|
|
|
$
|
39,321
|
|
|
$
|
38,859
|
|
|
$
|
39,508
|
|
|
|
|
|
|
|
|
|
|
||||||||
(Dollars in millions)
|
|
Carrying Value
|
|
Fair
Value
|
|
Carrying Value
|
|
Fair
Value
|
||||||||
Investment securities held to maturity
|
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury securities
|
|
$
|
198
|
|
|
$
|
199
|
|
|
$
|
0
|
|
|
$
|
0
|
|
Agency RMBS
|
|
20,484
|
|
|
21,763
|
|
|
20,163
|
|
|
21,210
|
|
||||
Agency CMBS
|
|
2,559
|
|
|
2,691
|
|
|
2,337
|
|
|
2,424
|
|
||||
Total investment securities held to maturity
|
|
$
|
23,241
|
|
|
$
|
24,653
|
|
|
$
|
22,500
|
|
|
$
|
23,634
|
|
(1)
|
Agency includes Federal National Mortgage Association (“Fannie Mae”), Federal Home Loan Mortgage Corporation (“Freddie Mac”) and Government National Mortgage Association (“Ginnie Mae”).
|
(2)
|
ABS collateralized by credit card loans constituted approximately
59%
and
56%
of the other ABS portfolio as of
March 31, 2015
and
December 31, 2014
, respectively, and ABS collateralized by auto dealer floor plan inventory loans and leases constituted approximately
18%
and
16%
of the other ABS portfolio as of
March 31, 2015
and
December 31, 2014
, respectively.
|
(3)
|
Includes foreign government bonds, corporate securities, municipal securities and equity investments primarily related to activities under the Community Reinvestment Act (“CRA”).
|
|
25
|
Capital One Financial Corporation (COF)
|
|
|
March 31, 2015
|
|
December 31, 2014
|
||||||||||||||||||||||
(Dollars in millions)
|
|
Amortized
Cost
|
|
AAA
|
|
Other
Investment
Grade
|
|
Below
Investment
Grade
(1)
|
|
Amortized
Cost
|
|
AAA
|
|
Other
Investment
Grade
|
|
Below
Investment Grade (1) |
||||||||||
Non-agency RMBS
|
|
$
|
2,943
|
|
|
—
|
%
|
|
3
|
%
|
|
97
|
%
|
|
$
|
2,938
|
|
|
—
|
%
|
|
3
|
%
|
|
97
|
%
|
Non-agency CMBS
|
|
1,711
|
|
|
100
|
|
|
—
|
|
|
—
|
|
|
1,780
|
|
|
100
|
|
|
—
|
|
|
—
|
|
||
Other ABS
|
|
2,025
|
|
|
98
|
|
|
2
|
|
|
—
|
|
|
2,618
|
|
|
90
|
|
|
5
|
|
|
5
|
|
||
Other securities
|
|
775
|
|
|
3
|
|
|
85
|
|
|
12
|
|
|
1,035
|
|
|
2
|
|
|
88
|
|
|
10
|
|
(1)
|
Includes a small portion of investment securities that were not rated.
|
|
|
March 31, 2015
|
|
December 31, 2014
|
||||||||||||||||||||
(Dollars in millions)
|
|
Loans
|
|
Allowance
|
|
Net Loans
|
|
Loans
|
|
Allowance
|
|
Net Loans
|
||||||||||||
Credit Card
|
|
$
|
81,754
|
|
|
$
|
3,130
|
|
|
$
|
78,624
|
|
|
$
|
85,876
|
|
|
$
|
3,204
|
|
|
$
|
82,672
|
|
Consumer Banking
|
|
71,379
|
|
|
826
|
|
|
70,553
|
|
|
71,439
|
|
|
779
|
|
|
70,660
|
|
||||||
Commercial Banking
|
|
50,741
|
|
|
444
|
|
|
50,297
|
|
|
50,890
|
|
|
395
|
|
|
50,495
|
|
||||||
Other
|
|
104
|
|
|
5
|
|
|
99
|
|
|
111
|
|
|
5
|
|
|
106
|
|
||||||
Total
|
|
$
|
203,978
|
|
|
$
|
4,405
|
|
|
$
|
199,573
|
|
|
$
|
208,316
|
|
|
$
|
4,383
|
|
|
$
|
203,933
|
|
|
26
|
Capital One Financial Corporation (COF)
|
|
|
Three Months Ended March 31,
|
||||||
(Dollars in millions)
|
|
2015
|
|
2014
|
||||
Representation and warranty reserve, beginning of period
|
|
$
|
731
|
|
|
$
|
1,172
|
|
Provision (benefit) for mortgage representation and warranty losses:
|
|
|
|
|
||||
Recorded in continuing operations
|
|
1
|
|
|
14
|
|
||
Recorded in discontinued operations
|
|
(19
|
)
|
|
(47
|
)
|
||
Total benefit for mortgage representation and warranty losses
|
|
(18
|
)
|
|
(33
|
)
|
||
Net realized losses
|
|
(40
|
)
|
|
(11
|
)
|
||
Representation and warranty reserve, end of period
|
|
$
|
673
|
|
|
$
|
1,128
|
|
(1)
|
Reported on our consolidated balance sheets as a component of other liabilities.
|
|
27
|
Capital One Financial Corporation (COF)
|
OFF-BALANCE SHEET ARRANGEMENTS AND VARIABLE INTEREST ENTITIES
|
CAPITAL MANAGEMENT
|
|
28
|
Capital One Financial Corporation (COF)
|
|
29
|
Capital One Financial Corporation (COF)
|
|
|
March 31, 2015
|
|
December 31, 2014
|
||||||||||||||
|
|
Capital
Ratio |
|
Minimum
Capital Adequacy |
|
Well-
Capitalized |
|
Capital
Ratio |
|
Minimum
Capital Adequacy |
|
Well-
Capitalized |
||||||
Capital One Financial Corp:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Common equity Tier 1 capital
(2)
|
|
12.46
|
%
|
|
4.50
|
%
|
|
N/A
|
|
|
12.46
|
%
|
|
4.00
|
%
|
|
N/A
|
|
Tier 1 risk-based capital
(3)
|
|
13.22
|
|
|
6.00
|
|
|
6.00
|
%
|
|
13.23
|
|
|
5.50
|
|
|
6.00
|
%
|
Total risk-based capital
(4)
|
|
15.07
|
|
|
8.00
|
|
|
10.00
|
|
|
15.14
|
|
|
8.00
|
|
|
10.00
|
|
Tier 1 leverage
(5)
|
|
10.66
|
|
|
4.00
|
|
|
N/A
|
|
|
10.77
|
|
|
4.00
|
|
|
N/A
|
|
Supplementary leverage ratio
(6)
|
|
9.22
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
Capital One Bank (USA), N.A.:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Common equity Tier 1 capital
(2)
|
|
12.36
|
%
|
|
4.50
|
%
|
|
6.50
|
%
|
|
11.33
|
%
|
|
4.00
|
%
|
|
N/A
|
|
Tier 1 risk-based capital
(3)
|
|
12.36
|
|
|
6.00
|
|
|
8.00
|
|
|
11.33
|
|
|
5.50
|
|
|
6.00
|
%
|
Total risk-based capital
(4)
|
|
15.66
|
|
|
8.00
|
|
|
10.00
|
|
|
14.57
|
|
|
8.00
|
|
|
10.00
|
|
Tier 1 leverage
(5)
|
|
10.22
|
|
|
4.00
|
|
|
5.00
|
|
|
9.64
|
|
|
4.00
|
|
|
5.00
|
|
Supplementary leverage ratio
(6)
|
|
8.37
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
Capital One, N.A.:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Common equity Tier 1 capital
(2)
|
|
12.72
|
%
|
|
4.50
|
%
|
|
6.50
|
%
|
|
12.53
|
%
|
|
4.00
|
%
|
|
N/A
|
|
Tier 1 risk-based capital
(3)
|
|
12.72
|
|
|
6.00
|
|
|
8.00
|
|
|
12.53
|
|
|
5.50
|
|
|
6.00
|
%
|
Total risk-based capital
(4)
|
|
13.78
|
|
|
8.00
|
|
|
10.00
|
|
|
13.57
|
|
|
8.00
|
|
|
10.00
|
|
Tier 1 leverage
(5)
|
|
8.83
|
|
|
4.00
|
|
|
5.00
|
|
|
8.90
|
|
|
4.00
|
|
|
5.00
|
|
Supplementary leverage ratio
(6)
|
|
7.96
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
(1)
|
Capital ratios are calculated based on the Basel III Standardized Approach framework, subject to applicable transition provisions. As we continue to refine our classification of exposures under the Basel III Standardized Approach framework, risk-weighted asset classifications are subject to change. See “MD&A—Table
A
—Reconciliation of Non-GAAP Measures and Calculation of Regulatory Capital Measures” for additional information.
|
(2)
|
Common equity Tier 1 capital ratio is a regulatory capital measure under Basel III calculated based on common equity Tier 1 capital divided by risk-weighted assets.
|
(3)
|
Tier 1 risk-based capital ratio is a regulatory capital measure calculated based on Tier 1 capital divided by risk-weighted assets.
|
(4)
|
Total risk-based capital ratio is a regulatory capital measure calculated based on total risk-based capital divided by risk-weighted assets.
|
(5)
|
Tier 1 leverage ratio is a regulatory capital measure calculated based on Tier 1 capital divided by average assets, after certain adjustments.
|
(6)
|
Supplementary leverage ratio is a regulatory capital measure calculated based on Tier 1 capital under the Basel III Standardized Approach divided by total leverage exposure.
|
|
30
|
Capital One Financial Corporation (COF)
|
(Dollars in millions)
|
|
March 31, 2015
|
||
Common equity Tier 1 capital under Basel III Standardized
|
|
$
|
29,671
|
|
Adjustments related to AOCI
(2)
|
|
(186
|
)
|
|
Adjustments related to intangibles
(2)
|
|
(675
|
)
|
|
Other adjustments
(2)
|
|
—
|
|
|
Estimated common equity Tier 1 capital under fully phased-in Basel III Standardized
|
|
$
|
28,810
|
|
Risk-weighted assets under Basel III Standardized
|
|
$
|
238,144
|
|
Adjustments for fully phased-in Basel III Standardized
(3)
|
|
(282
|
)
|
|
Estimated risk-weighted assets under fully phased-in Basel III Standardized
|
|
$
|
237,862
|
|
Estimated common equity Tier 1 capital ratio under fully phased-in Basel III Standardized
(4)
|
|
12.1
|
%
|
(1)
|
Estimated common equity Tier 1 capital ratio under the fully phased-in Basel III Standardized Approach is a non-GAAP financial measure.
|
(2)
|
Assumes adjustments are fully phased-in.
|
(3)
|
Adjustments include higher risk weights for items included in capital based on the threshold deduction approach, such as mortgage servicing assets and deferred tax assets. The adjustments also include removal of risk-weights for items that are deducted from common equity Tier 1 capital.
|
(4)
|
Calculated by dividing estimated common equity Tier 1 capital by estimated risk-weighted assets, which are both calculated under the Basel III Standardized Approach, as it applies when fully phased-in for Advanced Approaches banks that have not yet exited parallel run. Additional calculation adjustments are likely to apply to the common equity Tier 1 capital ratio under fully phased-in Basel III Standardized Approach following our exit from Advanced Approaches parallel run.
|
|
31
|
Capital One Financial Corporation (COF)
|
RISK MANAGEMENT
|
|
32
|
Capital One Financial Corporation (COF)
|
•
|
Establish Governance Processes, Accountabilities, and Risk Appetites
|
•
|
Identify and Assess Risks and Ownership
|
•
|
Develop and Operate Controls, Monitoring and Mitigation Plans
|
•
|
Test and Detect Control Gaps and Perform Corrective Action
|
•
|
Escalate Key Risks and Gaps to Executive Management and, when Appropriate, the Board of Directors
|
•
|
Calculate and Allocate Capital in Alignment with Risk Management and Measurement Processes (including Stress Testing)
|
•
|
Support with the Right Culture, Talent and Skills
|
•
|
Enable with the Right Data, Infrastructure and Programs
|
CREDIT RISK PROFILE
|
|
33
|
Capital One Financial Corporation (COF)
|
|
March 31, 2015
|
|
December 31, 2014
|
|||||||||||
(Dollars in millions)
|
|
Loans
|
|
% of Total
|
|
Loans
|
|
% of Total
|
||||||
Credit Card:
|
|
|
|
|
|
|
|
|
||||||
Domestic credit card
(1)
|
|
$
|
74,131
|
|
|
36.3
|
%
|
|
$
|
77,704
|
|
|
37.3
|
%
|
International credit card
|
|
7,623
|
|
|
3.7
|
|
|
8,172
|
|
|
3.9
|
|
||
Total credit card
|
|
81,754
|
|
|
40.0
|
|
|
85,876
|
|
|
41.2
|
|
||
Consumer Banking:
|
|
|
|
|
|
|
|
|
||||||
Auto
|
|
38,937
|
|
|
19.1
|
|
|
37,824
|
|
|
18.2
|
|
||
Home loan
|
|
28,905
|
|
|
14.2
|
|
|
30,035
|
|
|
14.4
|
|
||
Retail banking
|
|
3,537
|
|
|
1.7
|
|
|
3,580
|
|
|
1.7
|
|
||
Total consumer banking
|
|
71,379
|
|
|
35.0
|
|
|
71,439
|
|
|
34.3
|
|
||
Commercial Banking:
|
|
|
|
|
|
|
|
|
||||||
Commercial and multifamily real estate
|
|
22,831
|
|
|
11.2
|
|
|
23,137
|
|
|
11.1
|
|
||
Commercial and industrial
|
|
27,172
|
|
|
13.3
|
|
|
26,972
|
|
|
12.9
|
|
||
Total commercial lending
|
|
50,003
|
|
|
24.5
|
|
|
50,109
|
|
|
24.0
|
|
||
Small-ticket commercial real estate
|
|
738
|
|
|
0.4
|
|
|
781
|
|
|
0.4
|
|
||
Total commercial banking
|
|
50,741
|
|
|
24.9
|
|
|
50,890
|
|
|
24.4
|
|
||
Other:
|
|
|
|
|
|
|
|
|
||||||
Other loans
|
|
104
|
|
|
0.1
|
|
|
111
|
|
|
0.1
|
|
||
Total loans held for investment
|
|
$
|
203,978
|
|
|
100.0
|
%
|
|
$
|
208,316
|
|
|
100.0
|
%
|
(1)
|
Includes installment loans of
$123 million
and
$144 million
as of
March 31, 2015
and
December 31, 2014
, respectively.
|
(Percentage of portfolio)
|
|
March 31,
2015 |
|
December 31,
2014 |
||
Real estate
(2)
|
|
41
|
%
|
|
41
|
%
|
Finance and insurance
|
|
11
|
|
|
12
|
|
Oil and gas
|
|
7
|
|
|
7
|
|
Health care
|
|
5
|
|
|
5
|
|
Business services
|
|
5
|
|
|
5
|
|
Public administration
|
|
5
|
|
|
5
|
|
Construction and land
|
|
5
|
|
|
4
|
|
Educational services
|
|
4
|
|
|
4
|
|
Retail trade
|
|
4
|
|
|
4
|
|
Transportation
|
|
4
|
|
|
4
|
|
Other
|
|
9
|
|
|
9
|
|
Total
|
|
100
|
%
|
|
100
|
%
|
(1)
|
Industry categories are based on our interpretation of the North American Industry Classification System codes as they pertain to each individual loan.
|
(2)
|
Primarily consists of loans secured by commercial real estate.
|
|
34
|
Capital One Financial Corporation (COF)
|
|
|
March 31, 2015
|
|||||||||||||||||||
|
|
Loans
|
|
Acquired Loans
|
|
Total Home Loans
|
|||||||||||||||
(Dollars in millions)
|
|
Amount
|
|
% of
Total |
|
Amount
|
|
% of
Total |
|
Amount
|
|
% of
Total |
|||||||||
Lien type:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
1st lien
|
|
$
|
5,776
|
|
|
20.0
|
%
|
|
$
|
21,766
|
|
|
75.3
|
%
|
|
$
|
27,542
|
|
|
95.3
|
%
|
2nd lien
|
|
1,015
|
|
|
3.5
|
|
|
348
|
|
|
1.2
|
|
|
1,363
|
|
|
4.7
|
|
|||
Total
|
|
$
|
6,791
|
|
|
23.5
|
%
|
|
$
|
22,114
|
|
|
76.5
|
%
|
|
$
|
28,905
|
|
|
100.0
|
%
|
|
|
December 31, 2014
|
|||||||||||||||||||
|
|
Loans
|
|
Acquired Loans
|
|
Total Home Loans
|
|||||||||||||||
(Dollars in millions)
|
|
Amount
|
|
% of
Total |
|
Amount
|
|
% of
Total |
|
Amount
|
|
% of
Total |
|||||||||
Lien type:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
1st lien
|
|
$
|
5,756
|
|
|
19.2
|
%
|
|
$
|
22,883
|
|
|
76.2
|
%
|
|
$
|
28,639
|
|
|
95.4
|
%
|
2nd lien
|
|
1,038
|
|
|
3.4
|
|
|
358
|
|
|
1.2
|
|
|
1,396
|
|
|
4.6
|
|
|||
Total
|
|
$
|
6,794
|
|
|
22.6
|
%
|
|
$
|
23,241
|
|
|
77.4
|
%
|
|
$
|
30,035
|
|
|
100.0
|
%
|
|
35
|
Capital One Financial Corporation (COF)
|
(Dollars in millions)
|
|
March 31, 2015
|
|
Estimated Impact
|
||||
Expected cash flows
|
|
$
|
26,552
|
|
|
$
|
(137
|
)
|
Accretable yield
|
|
4,471
|
|
|
2
|
|
||
Allowance for loan and lease losses
|
|
33
|
|
|
139
|
|
(1)
|
The estimated impact is the change in the balance as of
March 31, 2015
from the hypothetical decline of 10% in the home price index. Changes in the accretable yield would be recognized in interest income in our consolidated statements of income over the life of the loans. Changes in the allowance for loan and lease losses would be recognized immediately in the provision for credit losses in the consolidated statements of income.
|
(Percentage of portfolio)
|
|
March 31,
2015 |
|
December 31,
2014 |
|
March 31,
2014 |
|||
Domestic credit card - Refreshed FICO scores:
(1)
|
|
|
|
|
|
|
|||
Greater than 660
|
|
66
|
%
|
|
68
|
%
|
|
68
|
%
|
660 or below
|
|
34
|
|
|
32
|
|
|
32
|
|
Total
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
Auto - At origination FICO scores:
(2)
|
|
|
|
|
|
|
|||
Greater than 660
|
|
48
|
%
|
|
47
|
%
|
|
44
|
%
|
621 - 660
|
|
17
|
|
|
17
|
|
|
17
|
|
620 or below
|
|
35
|
|
|
36
|
|
|
39
|
|
Total
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
(1)
|
Credit scores generally represent FICO scores. These scores are obtained from one of the major credit bureaus at origination and are refreshed monthly thereafter. We approximate non-FICO credit scores to comparable FICO scores for consistency purposes. Balances for which no credit score is available or the credit score is invalid are included in the 660 or below category.
|
(2)
|
Credit scores represent FICO scores. These scores are obtained from three credit bureaus at the time of application and are not refreshed thereafter. The FICO score distribution is based on the average scores. Balances for which no credit score is available or the credit score is invalid are included in the 620 or below category.
|
|
36
|
Capital One Financial Corporation (COF)
|
|
|
March 31, 2015
|
|
December 31, 2014
|
||||||||||||||||||||||||
|
|
30+ Day Performing Delinquencies
|
|
30+ Day Delinquencies
|
|
30+ Day Performing Delinquencies
|
|
30+ Day Delinquencies
|
||||||||||||||||||||
(Dollars in millions)
|
|
Amount
|
|
Rate
(1)
|
|
Amount
|
|
Rate
(1)
|
|
Amount
|
|
Rate
(1)
|
|
Amount
|
|
Rate
(1)
|
||||||||||||
Credit Card:
|
||||||||||||||||||||||||||||
Domestic credit card
|
|
$
|
2,163
|
|
|
2.92
|
%
|
|
$
|
2,163
|
|
|
2.92
|
%
|
|
$
|
2,538
|
|
|
3.27
|
%
|
|
$
|
2,538
|
|
|
3.27
|
%
|
International credit card
|
|
214
|
|
|
2.81
|
|
|
262
|
|
|
3.44
|
|
|
240
|
|
|
2.94
|
|
|
294
|
|
|
3.60
|
|
||||
Total credit card
|
|
2,377
|
|
|
2.91
|
|
|
2,425
|
|
|
2.97
|
|
|
2,778
|
|
|
3.24
|
|
|
2,832
|
|
|
3.30
|
|
||||
Consumer Banking:
|
||||||||||||||||||||||||||||
Auto
|
|
2,029
|
|
|
5.21
|
|
|
2,149
|
|
|
5.52
|
|
|
2,486
|
|
|
6.57
|
|
|
2,682
|
|
|
7.09
|
|
||||
Home loan
(2)
|
|
52
|
|
|
0.18
|
|
|
282
|
|
|
0.97
|
|
|
64
|
|
|
0.21
|
|
|
302
|
|
|
1.01
|
|
||||
Retail banking
|
|
21
|
|
|
0.60
|
|
|
40
|
|
|
1.12
|
|
|
23
|
|
|
0.64
|
|
|
40
|
|
|
1.11
|
|
||||
Total consumer banking
(2)
|
|
2,102
|
|
|
2.95
|
|
|
2,471
|
|
|
3.46
|
|
|
2,573
|
|
|
3.60
|
|
|
3,024
|
|
|
4.23
|
|
||||
Commercial Banking:
|
||||||||||||||||||||||||||||
Commercial and multifamily real estate
|
|
72
|
|
|
0.31
|
|
|
99
|
|
|
0.43
|
|
|
85
|
|
|
0.37
|
|
|
117
|
|
|
0.51
|
|
||||
Commercial and industrial
|
|
181
|
|
|
0.67
|
|
|
249
|
|
|
0.92
|
|
|
15
|
|
|
0.05
|
|
|
73
|
|
|
0.27
|
|
||||
Total commercial lending
|
|
253
|
|
|
0.51
|
|
|
348
|
|
|
0.70
|
|
|
100
|
|
|
0.20
|
|
|
190
|
|
|
0.38
|
|
||||
Small-ticket commercial real estate
|
|
4
|
|
|
0.49
|
|
|
13
|
|
|
1.82
|
|
|
6
|
|
|
0.72
|
|
|
10
|
|
|
1.28
|
|
||||
Total commercial banking
|
|
257
|
|
|
0.51
|
|
|
361
|
|
|
0.71
|
|
|
106
|
|
|
0.21
|
|
|
200
|
|
|
0.39
|
|
||||
Other:
|
||||||||||||||||||||||||||||
Other loans
|
|
3
|
|
|
3.37
|
|
|
13
|
|
|
12.58
|
|
|
3
|
|
|
2.84
|
|
|
14
|
|
|
12.23
|
|
||||
Total
(2)
|
|
$
|
4,739
|
|
|
2.32
|
|
|
$
|
5,270
|
|
|
2.58
|
|
|
$
|
5,460
|
|
|
2.62
|
|
|
$
|
6,070
|
|
|
2.91
|
|
(1)
|
Calculated by loan category by dividing 30+ day delinquent loans as of the end of the period by period-end loans held for investment for the specified loan category, including Acquired Loans as applicable.
|
(2)
|
Excluding the impact of Acquired Loans, the 30+ day performing delinquency rate for our home loan portfolio, total consumer banking and total loans held for investment was
0.77%
,
4.27%
and
2.61%
, respectively, as of
March 31, 2015
, and
0.94%
,
5.34%
, and
2.95%
, respectively, as of
December 31, 2014
. Excluding the impact of Acquired Loans, the 30+ day delinquency rate for our home loan portfolio, total consumer banking and total loans held for investment was
4.15%
,
5.02%
and
2.90%
, respectively, as of
March 31, 2015
, and
4.45%
,
6.28%
, and
3.28%
, respectively, as of
December 31, 2014
.
|
|
37
|
Capital One Financial Corporation (COF)
|
|
|
March 31, 2015
|
|
December 31, 2014
|
||||||||||
(Dollars in millions)
|
|
Amount
|
|
% of
Total Loans
(1)
|
|
Amount
|
|
% of
Total Loans
(1)
|
||||||
Total loan portfolio
|
|
$
|
203,978
|
|
|
100.0
|
%
|
|
$
|
208,316
|
|
|
100.00
|
%
|
Delinquency status:
|
|
|
|
|
|
|
|
|
||||||
30 – 59 days
|
|
$
|
2,384
|
|
|
1.17
|
%
|
|
$
|
2,841
|
|
|
1.36
|
%
|
60 – 89 days
|
|
1,196
|
|
|
0.58
|
|
|
1,424
|
|
|
0.68
|
|
||
90 + days
|
|
1,690
|
|
|
0.83
|
|
|
1,805
|
|
|
0.87
|
|
||
Total
|
|
$
|
5,270
|
|
|
2.58
|
%
|
|
$
|
6,070
|
|
|
2.91
|
%
|
Geographic region:
|
|
|
|
|
|
|
|
|
||||||
Domestic
|
|
$
|
5,008
|
|
|
2.46
|
%
|
|
$
|
5,776
|
|
|
2.77
|
%
|
International
|
|
262
|
|
|
0.13
|
|
|
294
|
|
|
0.14
|
|
||
Total
|
|
$
|
5,270
|
|
|
2.58
|
%
|
|
$
|
6,070
|
|
|
2.91
|
%
|
(1)
|
Calculated by dividing loans in each delinquency status category or geographic region as of the end of the period by the total loans held for investment, including Acquired Loans accounted for based on expected cash flows.
|
|
|
March 31, 2015
|
|
December 31, 2014
|
||||||||||
(Dollars in millions)
|
|
Amount
|
|
% of
Total Loans (1) |
|
Amount
|
|
% of
Total Loans (1) |
||||||
Loan category:
|
|
|
|
|
|
|
|
|
||||||
Credit card
|
|
$
|
1,134
|
|
|
1.39
|
%
|
|
$
|
1,254
|
|
|
1.46
|
%
|
Consumer banking
|
|
1
|
|
|
0.00
|
|
|
1
|
|
|
0.00
|
|
||
Commercial banking
|
|
84
|
|
|
0.17
|
|
|
8
|
|
|
0.01
|
|
||
Total
|
|
$
|
1,219
|
|
|
0.60
|
|
|
$
|
1,263
|
|
|
0.61
|
|
Geographic region:
|
|
|
|
|
|
|
|
|
||||||
Domestic
|
|
$
|
1,155
|
|
|
0.59
|
%
|
|
$
|
1,190
|
|
|
0.59
|
%
|
International
|
|
64
|
|
|
0.85
|
|
|
73
|
|
|
0.90
|
|
||
Total
|
|
$
|
1,219
|
|
|
0.60
|
|
|
$
|
1,263
|
|
|
0.61
|
|
(1)
|
Delinquency rates are calculated for each loan category by dividing 90+ day delinquent loans accruing interest by period-end loans held for investment for the specified loan category.
|
|
38
|
Capital One Financial Corporation (COF)
|
|
|
March 31, 2015
|
|
December 31, 2014
|
||||||||||
(Dollars in millions)
|
|
Amount
|
|
% of Total Loans HFI
|
|
Amount
|
|
% of Total Loans HFI
|
||||||
Nonperforming loans held for investment:
|
|
|
|
|
|
|
|
|
||||||
Credit Card:
|
|
|
|
|
|
|
|
|
||||||
International credit card
|
|
$
|
64
|
|
|
0.84
|
%
|
|
$
|
70
|
|
|
0.86
|
%
|
Total credit card
|
|
64
|
|
|
0.08
|
|
|
70
|
|
|
0.08
|
|
||
Consumer Banking:
|
|
|
|
|
|
|
|
|
||||||
Auto
|
|
120
|
|
|
0.31
|
|
|
197
|
|
|
0.52
|
|
||
Home loan
(2)
|
|
336
|
|
|
1.16
|
|
|
330
|
|
|
1.10
|
|
||
Retail banking
|
|
25
|
|
|
0.71
|
|
|
22
|
|
|
0.61
|
|
||
Total consumer banking
(2)
|
|
481
|
|
|
0.67
|
|
|
549
|
|
|
0.77
|
|
||
Commercial Banking:
|
|
|
|
|
|
|
|
|
||||||
Commercial and multifamily real estate
|
|
40
|
|
|
0.18
|
|
|
62
|
|
|
0.27
|
|
||
Commercial and industrial
|
|
106
|
|
|
0.39
|
|
|
106
|
|
|
0.39
|
|
||
Total commercial lending
|
|
146
|
|
|
0.29
|
|
|
168
|
|
|
0.33
|
|
||
Small-ticket commercial real estate
|
|
12
|
|
|
1.62
|
|
|
7
|
|
|
0.96
|
|
||
Total commercial banking
|
|
158
|
|
|
0.31
|
|
|
175
|
|
|
0.34
|
|
||
Other:
|
|
|
|
|
|
|
|
|
||||||
Other loans
|
|
14
|
|
|
13.33
|
|
|
15
|
|
|
13.37
|
|
||
Total nonperforming loans held for investment
(2)(3)
|
|
$
|
717
|
|
|
0.35
|
|
|
$
|
809
|
|
|
0.39
|
|
Other nonperforming assets:
(4)
|
|
|
|
|
|
|
|
|
||||||
Foreclosed property
(5)
|
|
$
|
134
|
|
|
0.07
|
%
|
|
$
|
139
|
|
|
0.06
|
%
|
Other assets
(6)
|
|
173
|
|
|
0.08
|
|
|
183
|
|
|
0.09
|
|
||
Total other nonperforming assets
|
|
307
|
|
|
0.15
|
|
|
322
|
|
|
0.15
|
|
||
Total nonperforming assets
|
|
$
|
1,024
|
|
|
0.50
|
|
|
$
|
1,131
|
|
|
0.54
|
|
(1)
|
We recognized interest income for loans classified as nonperforming of
$3 million
in both
the first quarters of 2015 and 2014
. Interest income forgone related to nonperforming loans was
$15 million
and
$16 million
in
the first quarters of 2015 and 2014
, respectively. Forgone interest income represents the amount of interest income that would have been recorded during the period for nonperforming loans as of the end of the period had the loans performed according to their contractual terms.
|
(2)
|
Excluding the impact of Acquired Loans, the nonperforming loan ratio for our home loan portfolio, total consumer banking and total nonperforming loans held for investment was
4.94%
,
0.98%
and 0.39%, respectively, as of
March 31, 2015
, compared to
4.86%
,
1.14%
and 0.44%, respectively, as of
December 31, 2014
.
|
(3)
|
Excluding the impact of domestic credit card loans, nonperforming loans as a percentage of total loans held for investment was
0.55%
and
0.62%
as of
March 31, 2015
and
December 31, 2014
, respectively.
|
(4)
|
The denominator used in calculating the nonperforming asset ratios consists of total loans held for investment and total other nonperforming assets.
|
(5)
|
Includes foreclosed properties related to Acquired Loans of
$107 million
and
$101 million
as of
March 31, 2015
and
December 31, 2014
, respectively.
|
(6)
|
Includes the net realizable value of auto loans that have been charged-off as a result of a bankruptcy and repossessed assets obtained in satisfaction of auto loans.
|
|
39
|
Capital One Financial Corporation (COF)
|
|
|
Three Months Ended March 31,
|
||||||||||||
|
|
2015
|
|
2014
|
||||||||||
(Dollars in millions)
|
|
Amount
|
|
Rate
(1)
|
|
Amount
|
|
Rate
(1)
|
||||||
Credit Card:
|
|
|
|
|
|
|
|
|
||||||
Domestic credit card
|
|
$
|
664
|
|
|
3.55
|
%
|
|
$
|
700
|
|
|
4.01
|
%
|
International credit card
|
|
55
|
|
|
2.80
|
|
|
80
|
|
|
4.17
|
|
||
Total credit card
|
|
719
|
|
|
3.48
|
|
|
780
|
|
|
4.02
|
|
||
Consumer Banking:
|
|
|
|
|
|
|
|
|
||||||
Auto
|
|
148
|
|
|
1.55
|
|
|
134
|
|
|
1.66
|
|
||
Home loan
(2)
|
|
2
|
|
|
0.03
|
|
|
5
|
|
|
0.06
|
|
||
Retail banking
|
|
9
|
|
|
0.96
|
|
|
9
|
|
|
0.95
|
|
||
Total consumer banking
(2)
|
|
159
|
|
|
0.89
|
|
|
148
|
|
|
0.84
|
|
||
Commercial Banking:
|
|
|
|
|
|
|
|
|
||||||
Commercial and multifamily real estate
|
|
(2
|
)
|
|
(0.03
|
)
|
|
1
|
|
|
0.01
|
|
||
Commercial and industrial
|
|
4
|
|
|
0.05
|
|
|
2
|
|
|
0.03
|
|
||
Total commercial lending
|
|
2
|
|
|
0.01
|
|
|
3
|
|
|
0.02
|
|
||
Small-ticket commercial real estate
|
|
1
|
|
|
0.47
|
|
|
1
|
|
|
0.67
|
|
||
Total commercial banking
|
|
3
|
|
|
0.02
|
|
|
4
|
|
|
0.04
|
|
||
Other:
|
|
|
|
|
|
.
|
|
|
|
|||||
Other loans
|
|
0
|
|
|
1.56
|
|
|
(1
|
)
|
|
(0.68
|
)
|
||
Total net charge-offs
(2)
|
|
$
|
881
|
|
|
1.72
|
|
|
$
|
931
|
|
|
1.92
|
|
Average loans held for investment
|
|
$
|
205,194
|
|
|
|
|
$
|
193,722
|
|
|
|
||
Average loans held for investment (excluding Acquired Loans)
|
|
182,421
|
|
|
|
|
165,962
|
|
|
|
(1)
|
Calculated for each loan category by dividing annualized net charge-offs for the period by average loans held for investment during the period.
|
(2)
|
Excluding the impact of Acquired Loans, the net charge-off rates for our home loan portfolio, total consumer banking and total loans held for investment were
0.11%
,
1.30%
and
1.93%
, respectively, for
the three months ended March 31, 2015
, compared to
0.29%
,
1.37%
and
2.24%
, respectively, for
the three months ended March 31, 2014
.
|
|
40
|
Capital One Financial Corporation (COF)
|
|
|
March 31, 2015
|
|
December 31, 2014
|
||||||||||
(Dollars in millions)
|
|
Amount
|
|
% of Total Modifications
|
|
Amount
|
|
% of Total Modifications
|
||||||
Modified and restructured loans:
|
|
|
|
|
|
|
|
|
||||||
Credit card
|
|
$
|
673
|
|
|
41.0
|
%
|
|
$
|
692
|
|
|
41.9
|
%
|
Consumer banking:
|
|
|
|
|
|
|
|
|
||||||
Auto
|
|
453
|
|
|
27.5
|
|
|
435
|
|
|
26.3
|
|
||
Home loan
|
|
219
|
|
|
13.3
|
|
|
218
|
|
|
13.2
|
|
||
Retail banking
|
|
36
|
|
|
2.2
|
|
|
35
|
|
|
2.1
|
|
||
Total consumer banking
|
|
708
|
|
|
43.0
|
|
|
688
|
|
|
41.6
|
|
||
Commercial banking
|
|
263
|
|
|
16.0
|
|
|
272
|
|
|
16.5
|
|
||
Total
|
|
$
|
1,644
|
|
|
100.0
|
%
|
|
$
|
1,652
|
|
|
100.0
|
%
|
Status of modified and restructured loans:
|
|
|
|
|
|
|
|
|
||||||
Performing
|
|
$
|
1,198
|
|
|
72.9
|
%
|
|
$
|
1,203
|
|
|
72.8
|
%
|
Nonperforming
|
|
446
|
|
|
27.1
|
|
|
449
|
|
|
27.2
|
|
||
Total
|
|
$
|
1,644
|
|
|
100.0
|
%
|
|
$
|
1,652
|
|
|
100.0
|
%
|
|
41
|
Capital One Financial Corporation (COF)
|
|
42
|
Capital One Financial Corporation (COF)
|
|
|
Three Months Ended March 31,
|
||||||
(Dollars in millions)
|
|
2015
|
|
2014
|
||||
Balance at beginning of period
|
|
$
|
4,383
|
|
|
$
|
4,315
|
|
Provision for credit losses
(1)
|
|
927
|
|
|
723
|
|
||
Charge-offs:
|
|
|
|
|
||||
Credit Card:
|
|
|
|
|
||||
Domestic credit card
|
|
(924
|
)
|
|
(964
|
)
|
||
International credit card
|
|
(98
|
)
|
|
(131
|
)
|
||
Total credit card
|
|
(1,022
|
)
|
|
(1,095
|
)
|
||
Consumer Banking:
|
|
|
|
|
||||
Auto
|
|
(233
|
)
|
|
(205
|
)
|
||
Home loan
|
|
(4
|
)
|
|
(11
|
)
|
||
Retail banking
|
|
(13
|
)
|
|
(15
|
)
|
||
Total consumer banking
|
|
(250
|
)
|
|
(231
|
)
|
||
Commercial Banking:
|
|
|
|
|
||||
Commercial and multifamily real estate
|
|
—
|
|
|
(2
|
)
|
||
Commercial and industrial
|
|
(7
|
)
|
|
(4
|
)
|
||
Total commercial lending
|
|
(7
|
)
|
|
(6
|
)
|
||
Small-ticket commercial real estate
|
|
(2
|
)
|
|
(1
|
)
|
||
Total commercial banking
|
|
(9
|
)
|
|
(7
|
)
|
||
Other:
|
|
|
|
|
||||
Other loans
|
|
(3
|
)
|
|
(2
|
)
|
||
Total charge-offs
|
|
(1,284
|
)
|
|
(1,335
|
)
|
||
Recoveries:
|
|
|
|
|
||||
Credit Card:
|
|
|
|
|
||||
Domestic credit card
|
|
260
|
|
|
264
|
|
||
International credit card
|
|
43
|
|
|
51
|
|
||
Total credit card
|
|
303
|
|
|
315
|
|
||
Consumer Banking:
|
|
|
|
|
||||
Auto
|
|
85
|
|
|
71
|
|
||
Home loan
|
|
2
|
|
|
6
|
|
||
Retail banking
|
|
4
|
|
|
6
|
|
||
Total consumer banking
|
|
91
|
|
|
83
|
|
||
Commercial Banking:
|
|
|
|
|
||||
Commercial and multifamily real estate
|
|
2
|
|
|
1
|
|
||
Commercial and industrial
|
|
3
|
|
|
2
|
|
||
Total commercial lending
|
|
5
|
|
|
3
|
|
||
Small-ticket commercial real estate
|
|
1
|
|
|
—
|
|
||
Total commercial banking
|
|
6
|
|
|
3
|
|
||
Other:
|
|
|
|
|
||||
Other loans
|
|
3
|
|
|
3
|
|
||
Total recoveries
|
|
403
|
|
|
404
|
|
||
Net charge-offs
|
|
(881
|
)
|
|
(931
|
)
|
||
Other changes
(2)
|
|
(24
|
)
|
|
(9
|
)
|
||
Balance at end of period
|
|
$
|
4,405
|
|
|
$
|
4,098
|
|
Allowance for loan and lease losses as a percentage of loans held for investment
|
|
2.16
|
%
|
|
2.12
|
%
|
(1)
|
The total provision for credit losses reported in our consolidated statements of income consists of a provision for loan and lease losses and a provision for unfunded lending commitments. This table only presents the provision for loan and lease losses and does not include the provision for unfunded lending commitments of
$8 million
and
$12 million
in
the first quarters of 2015 and 2014
, respectively.
|
(2)
|
Represents foreign currency translation adjustments and the net impact of loan transfers and sales.
|
|
43
|
Capital One Financial Corporation (COF)
|
|
|
March 31, 2015
|
|
December 31, 2014
|
||||||||||
(Dollars in millions)
|
|
Amount
|
|
% of Total Loans HFI
|
|
Amount
|
|
% of Total Loans HFI
|
||||||
Credit Card:
|
|
|
|
|
|
|
|
|
||||||
Domestic credit card
|
|
$
|
2,824
|
|
|
3.81
|
%
|
|
$
|
2,878
|
|
|
3.70
|
%
|
International credit card
|
|
306
|
|
|
4.02
|
|
|
326
|
|
|
3.99
|
|
||
Total credit card
|
|
3,130
|
|
|
3.83
|
|
|
3,204
|
|
|
3.73
|
|
||
Consumer Banking:
|
|
|
|
|
|
|
|
|
||||||
Auto
|
|
697
|
|
|
1.79
|
|
|
661
|
|
|
1.75
|
|
||
Home loan
(1)
|
|
68
|
|
|
0.23
|
|
|
62
|
|
|
0.21
|
|
||
Retail banking
|
|
61
|
|
|
1.74
|
|
|
56
|
|
|
1.58
|
|
||
Total consumer banking
(1)
|
|
826
|
|
|
1.16
|
|
|
779
|
|
|
1.09
|
|
||
Commercial Banking:
|
|
|
|
|
|
|
|
|
||||||
Commercial and multifamily real estate
|
|
160
|
|
|
0.70
|
|
|
155
|
|
|
0.67
|
|
||
Commercial and industrial
|
|
275
|
|
|
1.01
|
|
|
229
|
|
|
0.85
|
|
||
Total commercial lending
|
|
435
|
|
|
0.87
|
|
|
384
|
|
|
0.77
|
|
||
Small-ticket commercial real estate
|
|
9
|
|
|
1.24
|
|
|
11
|
|
|
1.43
|
|
||
Total commercial banking
|
|
444
|
|
|
0.87
|
|
|
395
|
|
|
0.78
|
|
||
Other:
|
|
|
|
|
|
|
|
|
||||||
Other loans
|
|
5
|
|
|
4.48
|
|
|
5
|
|
|
4.68
|
|
||
Total allowance for loan and lease losses
|
|
$
|
4,405
|
|
|
2.16
|
|
|
$
|
4,383
|
|
|
2.10
|
|
Total allowance coverage ratios:
|
|
|
|
|
|
|
|
|
||||||
Period-end loans held for investment
|
|
$
|
203,978
|
|
|
2.16
|
|
|
$
|
208,316
|
|
|
2.10
|
|
Period-end loans held for investment (excluding Acquired Loans)
|
|
181,644
|
|
|
2.41
|
|
|
184,816
|
|
|
2.36
|
|
||
Nonperforming loans
(2)
|
|
717
|
|
|
614.18
|
|
|
809
|
|
|
541.86
|
|
||
Allowance coverage ratios by loan category:
(3)
|
|
|
|
|
|
|
|
|
||||||
Credit card (30+ day delinquent loans)
|
|
2,425
|
|
|
129.08
|
|
|
2,832
|
|
|
113.13
|
|
||
Consumer banking (30+ day delinquent loans)
|
|
2,471
|
|
|
33.43
|
|
|
3,024
|
|
|
25.76
|
|
||
Commercial banking (nonperforming loans)
|
|
158
|
|
|
281.66
|
|
|
175
|
|
|
225.86
|
|
(1)
|
Excluding the impact of Acquired Loans, the coverage ratios for our home loan portfolio and total consumer banking were
0.51%
and
1.61%
, respectively, as of
March 31, 2015
, compared to
0.52%
and
1.56%
, respectively, as of
December 31, 2014
.
|
(2)
|
The allowance for loan and lease losses as a percentage of nonperforming loans, excluding the allowance for loan and lease losses related to our domestic credit card loans, was
220.39%
and
186.07%
as of
March 31, 2015
and
December 31, 2014
, respectively.
|
(3)
|
Calculated based on the total allowance for loan and lease losses divided by the outstanding balance of loans within the specified loan category.
|
LIQUIDITY RISK PROFILE
|
|
44
|
Capital One Financial Corporation (COF)
|
(Dollars in millions)
|
|
March 31, 2015
|
|
December 31, 2014
|
||||
Cash and cash equivalents
|
|
$
|
8,891
|
|
|
$
|
7,242
|
|
Investment securities available for sale, at fair value
|
|
39,321
|
|
|
39,508
|
|
||
Investment securities held to maturity, at fair value
|
|
24,653
|
|
|
23,634
|
|
||
Total investment securities portfolio
(1)(2)
|
|
63,974
|
|
|
63,142
|
|
||
FHLB borrowing capacity secured by loans
|
|
28,389
|
|
|
29,547
|
|
||
Outstanding FHLB advances and letters of credit secured by loans
|
|
(7,268
|
)
|
|
(17,720
|
)
|
||
Outstanding FHLB advances and letters of credit secured by securities
(3)
|
|
(4
|
)
|
|
(4
|
)
|
||
Securities encumbered for Public Funds and others
|
|
(10,998
|
)
|
|
(10,627
|
)
|
||
Total liquidity reserves
|
|
$
|
82,984
|
|
|
$
|
71,580
|
|
(1)
|
The weighted average life of our securities was approximately
5.4
years and
5.7
years as of
March 31, 2015
and
December 31, 2014
, respectively.
|
(2)
|
As part of our liquidity management strategy, we pledge securities to secure borrowings from counterparties and to secure trust and public deposits and other purposes as required or permitted by law. We pledged securities available for sale with a fair value of
$3.0 billion
and
$3.5 billion
as of
March 31, 2015
and
December 31, 2014
, respectively. We also pledged securities held to maturity with a carrying value of
$9.1 billion
and
$9.0 billion
as of
March 31, 2015
and
December 31, 2014
, respectively.
|
(3)
|
As of
March 31, 2015
, we pledged
$13 million
of securities available for sale to secure our FHLB borrowing capacity.
|
|
45
|
Capital One Financial Corporation (COF)
|
|
|
Three Months Ended March 31, 2015
|
||||||||||||||||
(Dollars in millions)
|
|
Period End
Balance
|
|
Average
Balance
|
|
Interest
Expense
|
|
% of
Average
Deposits
|
|
Average
Deposit
Rate
|
||||||||
Non-interest bearing accounts
|
|
$
|
25,232
|
|
|
$
|
24,853
|
|
|
N/A
|
|
|
12.0
|
%
|
|
N/A
|
|
|
Interest-bearing checking accounts
(1)
|
|
43,183
|
|
|
42,309
|
|
|
$
|
51
|
|
|
20.3
|
|
|
0.48
|
%
|
||
Saving deposits
(2)
|
|
133,059
|
|
|
131,580
|
|
|
191
|
|
|
63.3
|
|
|
0.58
|
|
|||
Time deposits less than $100,000
|
|
5,712
|
|
|
5,885
|
|
|
17
|
|
|
2.8
|
|
|
1.12
|
|
|||
Total core deposits
|
|
207,186
|
|
|
204,627
|
|
|
259
|
|
|
98.4
|
|
|
0.51
|
|
|||
Time deposits of $100,000 or more
|
|
2,197
|
|
|
2,211
|
|
|
11
|
|
|
1.1
|
|
|
1.96
|
|
|||
Foreign time deposits
(3)
|
|
1,057
|
|
|
1,013
|
|
|
1
|
|
|
0.5
|
|
|
0.34
|
|
|||
Total deposits
|
|
$
|
210,440
|
|
|
$
|
207,851
|
|
|
$
|
271
|
|
|
100.0
|
%
|
|
0.52
|
|
|
|
Twelve Months Ended December 31, 2014
|
||||||||||||||||
(Dollars in millions)
|
|
Period End
Balance
|
|
Average
Balance
|
|
Interest
Expense
|
|
% of
Average
Deposits
|
|
Average
Deposit
Rate
|
||||||||
Non-interest bearing accounts
|
|
$
|
25,081
|
|
|
$
|
24,639
|
|
|
N/A
|
|
|
12.0
|
%
|
|
N/A
|
|
|
Interest-bearing checking accounts
(1)
|
|
41,022
|
|
|
41,702
|
|
|
$
|
204
|
|
|
20.3
|
|
|
0.49
|
%
|
||
Saving deposits
(2)
|
|
130,156
|
|
|
129,868
|
|
|
752
|
|
|
63.1
|
|
|
0.58
|
|
|||
Time deposits less than $100,000
|
|
6,051
|
|
|
5,856
|
|
|
75
|
|
|
2.8
|
|
|
1.29
|
|
|||
Total core deposits
|
|
202,310
|
|
|
202,065
|
|
|
1,031
|
|
|
98.2
|
|
|
0.51
|
|
|||
Time deposits of $100,000 or more
|
|
2,261
|
|
|
2,560
|
|
|
53
|
|
|
1.3
|
|
|
2.07
|
|
|||
Foreign time deposits
(3)
|
|
977
|
|
|
1,050
|
|
|
4
|
|
|
0.5
|
|
|
0.34
|
|
|||
Total deposits
|
|
$
|
205,548
|
|
|
$
|
205,675
|
|
|
$
|
1,088
|
|
|
100.0
|
%
|
|
0.53
|
|
(1)
|
Includes Negotiable Order of Withdrawal (“NOW”) accounts.
|
(2)
|
Includes Money Market Deposit Accounts (“MMDA”).
|
(3)
|
Substantially all of our foreign time deposits were greater than $100,000 as of both
March 31, 2015
and
December 31, 2014
.
|
|
46
|
Capital One Financial Corporation (COF)
|
|
|
March 31, 2015
|
|
|
||||||||||||||||||||||||||||
(Dollars in millions)
|
|
Up to
1 Year
|
|
> 1 Year
to 2 Years
|
|
> 2 Years
to 3 Years
|
|
> 3 Years
to 4 Years
|
|
> 4 Years
to 5 Years
|
|
> 5 Years
|
|
Total
|
|
December 31, 2014
|
||||||||||||||||
Short-term borrowings:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Federal funds purchased and securities loaned or sold under agreements to repurchase
|
|
$
|
933
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
933
|
|
|
$
|
880
|
|
FHLB advances
|
|
5,750
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,750
|
|
|
16,200
|
|
||||||||
Total short-term borrowings
|
|
6,683
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,683
|
|
|
17,080
|
|
||||||||
Long-term debt:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Securitized debt obligations
|
|
1,652
|
|
|
5,482
|
|
|
4,370
|
|
|
588
|
|
|
550
|
|
|
75
|
|
|
12,717
|
|
|
11,624
|
|
||||||||
Senior and subordinated notes:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Unsecured senior debt
|
|
1,627
|
|
|
2,521
|
|
|
4,463
|
|
|
1,612
|
|
|
2,535
|
|
|
5,146
|
|
|
17,904
|
|
|
16,054
|
|
||||||||
Unsecured subordinated debt
|
|
—
|
|
|
1,067
|
|
|
—
|
|
|
—
|
|
|
328
|
|
|
1,260
|
|
|
2,655
|
|
|
2,630
|
|
||||||||
Total senior and subordinated notes
|
|
1,627
|
|
|
3,588
|
|
|
4,463
|
|
|
1,612
|
|
|
2,863
|
|
|
6,406
|
|
|
20,559
|
|
|
18,684
|
|
||||||||
Other long-term borrowings:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
FHLB advances
|
|
1,016
|
|
|
20
|
|
|
25
|
|
|
5
|
|
|
2
|
|
|
2
|
|
|
1,070
|
|
|
1,069
|
|
||||||||
Total long-term debt
(1)
|
|
4,295
|
|
|
9,090
|
|
|
8,858
|
|
|
2,205
|
|
|
3,415
|
|
|
6,483
|
|
|
34,346
|
|
|
31,377
|
|
||||||||
Total short-term borrowings and long-term debt
|
|
$
|
10,978
|
|
|
$
|
9,090
|
|
|
$
|
8,858
|
|
|
$
|
2,205
|
|
|
$
|
3,415
|
|
|
$
|
6,483
|
|
|
$
|
41,029
|
|
|
$
|
48,457
|
|
Percentage of total
|
|
27
|
%
|
|
22
|
%
|
|
22
|
%
|
|
5
|
%
|
|
8
|
%
|
|
16
|
%
|
|
100
|
%
|
|
100
|
%
|
(1)
|
Includes unamortized discounts, premiums and other cost basis adjustments, which together result in a net reduction of
$222 million
and
$233 million
as of
March 31, 2015
and
December 31, 2014
, respectively.
|
|
47
|
Capital One Financial Corporation (COF)
|
|
|
March 31, 2015
|
|
December 31, 2014
|
||||||||
|
|
Capital One
Financial
Corporation
|
|
Capital One
Bank (USA),
N.A.
|
|
Capital One,
N.A.
|
|
Capital One
Financial
Corporation
|
|
Capital One
Bank (USA),
N.A.
|
|
Capital One,
N.A.
|
Moody’s
|
|
Baa1
|
|
A3
|
|
A3
|
|
Baa1
|
|
A3
|
|
A3
|
S&P
|
|
BBB
|
|
BBB+
|
|
BBB+
|
|
BBB
|
|
BBB+
|
|
BBB+
|
Fitch
|
|
A-
|
|
A-
|
|
A-
|
|
A-
|
|
A-
|
|
A-
|
MARKET RISK PROFILE
|
|
48
|
Capital One Financial Corporation (COF)
|
|
49
|
Capital One Financial Corporation (COF)
|
|
|
March 31, 2015
|
|
December 31, 2014
|
||
Estimated impact on projected base-line net interest income
|
|
|
|
|
||
+200 basis points
|
|
4.0
|
%
|
|
4.5
|
%
|
–50 basis points
|
|
(2.3
|
)
|
|
(2.1
|
)
|
Estimated impact on economic value of equity
|
|
|
|
|
||
+200 basis points
|
|
(2.2
|
)
|
|
(3.4
|
)
|
–50 basis points
|
|
(1.6
|
)
|
|
(1.2
|
)
|
SUPERVISION AND REGULATION
|
FORWARD-LOOKING STATEMENTS
|
|
50
|
Capital One Financial Corporation (COF)
|
•
|
general economic and business conditions in the U.S., the U.K., Canada or our local markets, including conditions affecting employment levels, interest rates, collateral values, consumer income and confidence, spending and savings that may affect consumer bankruptcies, defaults, charge-offs and deposit activity;
|
•
|
an increase or decrease in credit losses (including increases due to a worsening of general economic conditions in the credit environment);
|
•
|
financial, legal, regulatory, tax or accounting changes or actions, including the impact of the Dodd-Frank Act and the regulations promulgated thereunder and regulations governing bank capital and liquidity standards, including Basel-related initiatives and potential changes to financial accounting and reporting standards;
|
•
|
developments, changes or actions relating to any litigation matter involving us;
|
•
|
the inability to sustain revenue and earnings growth;
|
•
|
increases or decreases in interest rates;
|
•
|
our ability to access the capital markets at attractive rates and terms to capitalize and fund our operations and future growth;
|
•
|
the success of our marketing efforts in attracting and retaining customers;
|
•
|
increases or decreases in our aggregate loan balances or the number of customers and the growth rate and composition thereof, including increases or decreases resulting from factors such as shifting product mix, amount of actual marketing expenses we incur and attrition of loan balances;
|
•
|
the level of future repurchase or indemnification requests we may receive, the actual future performance of mortgage loans relating to such requests, the success rates of claimants against us, any developments in litigation and the actual recoveries we may make on any collateral relating to claims against us;
|
•
|
the amount and rate of deposit growth;
|
•
|
changes in the reputation of, or expectations regarding, the financial services industry or us with respect to practices, products or financial condition;
|
•
|
any significant disruption in our operations or technology platform;
|
•
|
our ability to maintain a compliance and technology infrastructure suitable for the nature of our business;
|
•
|
our ability to develop digital technology that addresses the needs of our customers;
|
•
|
our ability to control costs;
|
•
|
the amount of, and rate of growth in, our expenses as our business develops or changes or as it expands into new market areas;
|
•
|
our ability to execute on our strategic and operational plans;
|
•
|
any significant disruption of, or loss of public confidence in, the United States mail service affecting our response rates and consumer payments;
|
•
|
any significant disruption of, or loss of public confidence in, the internet affecting the ability of our customers to access their accounts and conduct banking transactions;
|
•
|
our ability to recruit and retain talented and experienced personnel to assist in the development, management and operation of new products and services;
|
|
51
|
Capital One Financial Corporation (COF)
|
•
|
changes in the labor and employment markets;
|
•
|
fraud or misconduct by our customers, employees or business partners;
|
•
|
competition from providers of products and services that compete with our businesses; and
|
•
|
other risk factors listed from time to time in reports that we file with the SEC.
|
|
52
|
Capital One Financial Corporation (COF)
|
SUPPLEMENTAL TABLE
|
(Dollars in millions)
|
|
March 31, 2015
|
|
December 31, 2014
|
||||
Quarterly Average Tangible Common Equity
|
|
|
|
|
||||
Average stockholders' equity
|
|
$
|
46,397
|
|
|
$
|
45,576
|
|
Average goodwill and intangible assets
(2)
|
|
(15,339
|
)
|
|
(15,437
|
)
|
||
Average noncumulative perpetual preferred stock
(3)
|
|
(1,822
|
)
|
|
(1,681
|
)
|
||
Average tangible common equity
|
|
$
|
29,236
|
|
|
$
|
28,458
|
|
Period End Tangible Common Equity
|
|
|
|
|
||||
Period end stockholders’ equity
|
|
$
|
45,730
|
|
|
$
|
45,053
|
|
Goodwill and intangible assets
(2)
|
|
(15,307
|
)
|
|
(15,383
|
)
|
||
Noncumulative perpetual preferred stock
(3)
|
|
(1,822
|
)
|
|
(1,822
|
)
|
||
Tangible common equity
|
|
$
|
28,601
|
|
|
$
|
27,848
|
|
Quarterly Average Tangible Assets
|
|
|
|
|
||||
Average assets
|
|
$
|
309,401
|
|
|
$
|
304,153
|
|
Average goodwill and intangible assets
(2)
|
|
(15,339
|
)
|
|
(15,437
|
)
|
||
Average tangible assets
|
|
$
|
294,062
|
|
|
$
|
288,716
|
|
Period End Tangible Assets
|
|
|
|
|
||||
Period end assets
|
|
$
|
306,224
|
|
|
$
|
308,167
|
|
Goodwill and intangible assets
(2)
|
|
(15,307
|
)
|
|
(15,383
|
)
|
||
Tangible assets
|
|
$
|
290,917
|
|
|
$
|
292,784
|
|
Non-GAAP TCE ratio
|
|
|
|
|
||||
TCE ratio
(4)
|
|
9.83
|
%
|
|
9.49
|
%
|
||
Capital Ratios
|
|
|
|
|
||||
Common equity Tier 1 capital ratio
(5)
|
|
12.46
|
%
|
|
12.46
|
%
|
||
Tier 1 risk-based capital ratio
(6)
|
|
13.22
|
|
|
13.23
|
|
||
Total risk-based capital ratio
(7)
|
|
15.07
|
|
|
15.14
|
|
||
Tier 1 leverage ratio
(8)
|
|
10.66
|
|
|
10.77
|
|
||
Supplementary leverage ratio
(9)
|
|
9.22
|
|
|
N/A
|
|
||
Risk-weighted assets
(10)
|
|
$
|
238,144
|
|
|
$
|
236,944
|
|
Average assets for the leverage ratio
|
|
295,556
|
|
|
291,243
|
|
||
Regulatory Capital Ratios Under Basel III Standardized Approach
|
|
|
|
|
||||
Common equity excluding AOCI
|
|
$
|
44,120
|
|
|
$
|
43,661
|
|
Adjustments:
|
|
|
|
|
||||
AOCI
(11)(12)
|
|
(26
|
)
|
|
(69
|
)
|
||
Goodwill
(2)
|
|
(13,801
|
)
|
|
(13,805
|
)
|
||
Intangible Assets
(2)(12)
|
|
(450
|
)
|
|
(243
|
)
|
||
Other
|
|
(172
|
)
|
|
(10
|
)
|
||
Common equity Tier 1 capital
|
|
29,671
|
|
|
29,534
|
|
||
Tier 1 capital instruments
(3)
|
|
1,822
|
|
|
1,822
|
|
||
Additional Tier 1 capital adjustments
|
|
—
|
|
|
(1
|
)
|
||
Tier 1 capital
|
|
31,493
|
|
|
31,355
|
|
||
Tier 2 capital instruments
(3)
|
|
1,390
|
|
|
1,542
|
|
||
Qualifying allowance for loan and lease losses
|
|
2,996
|
|
|
2,981
|
|
||
Additional Tier 2 capital adjustments
|
|
—
|
|
|
1
|
|
||
Tier 2 capital
|
|
4,386
|
|
|
4,524
|
|
||
Total risk-based capital
(13)
|
|
$
|
35,879
|
|
|
$
|
35,879
|
|
|
53
|
Capital One Financial Corporation (COF)
|
(1)
|
As of January 1, 2015, we changed our accounting principle to move from a gross basis of presentation to a net basis, for presenting qualifying derivative assets and liabilities, as well as the related right to reclaim cash collateral or obligation to return cash collateral. See “
Note 1—Summary of Significant Accounting Policies
” for additional information. Prior period results, excluding regulatory ratios, have been recast to conform to this presentation.
|
(2)
|
Includes impact of related deferred taxes.
|
(3)
|
Includes related surplus.
|
(4)
|
TCE ratio is a non-GAAP measure calculated based on TCE divided by tangible assets.
|
(5)
|
Common equity Tier 1 capital ratio is a regulatory capital measure calculated based on common equity Tier 1 capital divided by risk-weighted assets.
|
(6)
|
Tier 1 risk-based capital ratio is a regulatory capital measure calculated based on Tier 1 capital divided by risk-weighted assets.
|
(7)
|
Total risk-based capital ratio is a regulatory capital measure calculated based on total risk-based capital divided by risk-weighted assets.
|
(8)
|
Tier 1 leverage ratio is a regulatory capital measure calculated based on Tier 1 capital divided by average assets, after certain adjustments.
|
(9)
|
Supplementary leverage ratio is a regulatory capital measure calculated based on Tier 1 capital under the Basel III Standardized Approach divided by total leverage exposure. See “MD&A—Capital Management” for additional information.
|
(10)
|
As of January 1, 2015, risk-weighted assets are calculated under the Basel III Standardized Approach, subject to transition provisions. Prior to January 1, 2015 risk-weighted assets were calculated under Basel I.
|
(11)
|
Amounts presented are net of tax.
|
(12)
|
Amounts based on transition provisions for regulatory capital deductions and adjustments of 20% for 2014 and 40% for 2015.
|
(13)
|
Total risk-based capital equals the sum of Tier 1 capital and Tier 2 capital.
|
|
54
|
Capital One Financial Corporation (COF)
|
Glossary and Acronyms
|
|
55
|
Capital One Financial Corporation (COF)
|
|
56
|
Capital One Financial Corporation (COF)
|
|
57
|
Capital One Financial Corporation (COF)
|
|
58
|
Capital One Financial Corporation (COF)
|
Acronyms
|
|
59
|
Capital One Financial Corporation (COF)
|
|
60
|
Capital One Financial Corporation (COF)
|
|
Page
|
|
61
|
Capital One Financial Corporation (COF)
|
|
|
Three Months Ended March 31,
|
||||||
(Dollars in millions, except per share-related data)
|
|
2015
|
|
2014
|
||||
Interest income:
|
|
|
|
|
||||
Loans, including loans held for sale
|
|
$
|
4,540
|
|
|
$
|
4,307
|
|
Investment securities
|
|
406
|
|
|
416
|
|
||
Other
|
|
28
|
|
|
30
|
|
||
Total
interest
income
|
|
4,974
|
|
|
4,753
|
|
||
Interest expense:
|
|
|
|
|
||||
Deposits
|
|
271
|
|
|
276
|
|
||
Securitized debt obligations
|
|
33
|
|
|
38
|
|
||
Senior and subordinated notes
|
|
79
|
|
|
77
|
|
||
Other borrowings
|
|
15
|
|
|
12
|
|
||
Total interest expense
|
|
398
|
|
|
403
|
|
||
Net interest income
|
|
4,576
|
|
|
4,350
|
|
||
Provision for credit losses
|
|
935
|
|
|
735
|
|
||
Net interest income after provision for credit losses
|
|
3,641
|
|
|
3,615
|
|
||
Non-interest income:
|
|
|
|
|
||||
Service charges and other customer-related fees
|
|
437
|
|
|
474
|
|
||
Interchange fees, net
|
|
496
|
|
|
440
|
|
||
Total other-than-temporary impairment
|
|
(9
|
)
|
|
(3
|
)
|
||
Less: Portion of other-than-temporary impairment recorded in AOCI
|
|
(6
|
)
|
|
(2
|
)
|
||
Net other-than-temporary impairment recognized in earnings
|
|
(15
|
)
|
|
(5
|
)
|
||
Other
|
|
153
|
|
|
111
|
|
||
Total non-interest income
|
|
1,071
|
|
|
1,020
|
|
||
Non-interest expense:
|
|
|
|
|
||||
Salaries and associate benefits
|
|
1,211
|
|
|
1,161
|
|
||
Occupancy and equipment
|
|
435
|
|
|
405
|
|
||
Marketing
|
|
375
|
|
|
325
|
|
||
Professional services
|
|
296
|
|
|
287
|
|
||
Communications and data processing
|
|
202
|
|
|
196
|
|
||
Amortization of intangibles
|
|
110
|
|
|
143
|
|
||
Other
|
|
420
|
|
|
415
|
|
||
Total non-interest expense
|
|
3,049
|
|
|
2,932
|
|
||
Income from continuing operations before income taxes
|
|
1,663
|
|
|
1,703
|
|
||
Income tax provision
|
|
529
|
|
|
579
|
|
||
Income from continuing operations, net of tax
|
|
1,134
|
|
|
1,124
|
|
||
Income from discontinued operations, net of tax
|
|
19
|
|
|
30
|
|
||
Net income
|
|
1,153
|
|
|
1,154
|
|
||
Dividends and undistributed earnings allocated to participating securities
|
|
(6
|
)
|
|
(5
|
)
|
||
Preferred stock dividends
|
|
(32
|
)
|
|
(13
|
)
|
||
Net income available to common stockholders
|
|
$
|
1,115
|
|
|
$
|
1,136
|
|
Basic earnings per common share:
|
|
|
|
|
||||
Net income from continuing operations
|
|
$
|
2.00
|
|
|
$
|
1.94
|
|
Income from discontinued operations
|
|
0.03
|
|
|
0.05
|
|
||
Net income per basic common share
|
|
$
|
2.03
|
|
|
$
|
1.99
|
|
Diluted earnings per common share:
|
|
|
|
|
||||
Net income from continuing operations
|
|
$
|
1.97
|
|
|
$
|
1.91
|
|
Income from discontinued operations
|
|
0.03
|
|
|
0.05
|
|
||
Net income per diluted common share
|
|
$
|
2.00
|
|
|
$
|
1.96
|
|
Dividends paid per common share
|
|
$
|
0.30
|
|
|
$
|
0.30
|
|
|
62
|
Capital One Financial Corporation (COF)
|
|
|
Three Months Ended March 31,
|
||||||
(Dollars in millions)
|
|
2015
|
|
2014
|
||||
Net income
|
|
$
|
1,153
|
|
|
$
|
1,154
|
|
Other comprehensive income (loss) before taxes:
|
|
|
|
|
||||
Net unrealized gains on securities available for sale
|
|
190
|
|
|
229
|
|
||
Net changes in securities held to maturity
|
|
33
|
|
|
28
|
|
||
Net unrealized gains on cash flow hedges
|
|
258
|
|
|
30
|
|
||
Foreign currency translation adjustments
|
|
(41
|
)
|
|
(13
|
)
|
||
Other
|
|
(4
|
)
|
|
(1
|
)
|
||
Other comprehensive income before taxes
|
|
436
|
|
|
273
|
|
||
Income tax provision related to other comprehensive income
|
|
218
|
|
|
111
|
|
||
Other comprehensive income, net of tax
|
|
218
|
|
|
162
|
|
||
Comprehensive income
|
|
$
|
1,371
|
|
|
$
|
1,316
|
|
|
63
|
Capital One Financial Corporation (COF)
|
(Dollars in millions, except per share data)
|
|
March 31,
2015 |
|
December 31,
2014 |
||||
Assets:
|
|
|
|
|
||||
Cash and cash equivalents:
|
|
|
|
|
||||
Cash and due from banks
|
|
$
|
2,853
|
|
|
$
|
3,147
|
|
Interest-bearing deposits with banks
|
|
6,038
|
|
|
4,095
|
|
||
Total cash and cash equivalents
|
|
8,891
|
|
|
7,242
|
|
||
Restricted cash for securitization investors
|
|
234
|
|
|
234
|
|
||
Securities available for sale, at fair value
|
|
39,321
|
|
|
39,508
|
|
||
Securities held to maturity, at carrying value
|
|
23,241
|
|
|
22,500
|
|
||
Loans held for investment:
|
|
|
|
|
||||
Unsecuritized loans held for investment
|
|
170,040
|
|
|
171,771
|
|
||
Restricted loans for securitization investors
|
|
33,938
|
|
|
36,545
|
|
||
Total loans held for investment
|
|
203,978
|
|
|
208,316
|
|
||
Allowance for loan and lease losses
|
|
(4,405
|
)
|
|
(4,383
|
)
|
||
Net loans held for investment
|
|
199,573
|
|
|
203,933
|
|
||
Loans held for sale, at lower of cost or fair value
|
|
1,331
|
|
|
626
|
|
||
Premises and equipment, net
|
|
3,684
|
|
|
3,685
|
|
||
Interest receivable
|
|
1,078
|
|
|
1,079
|
|
||
Goodwill
|
|
13,978
|
|
|
13,978
|
|
||
Other assets
|
|
14,893
|
|
|
15,382
|
|
||
Total assets
|
|
$
|
306,224
|
|
|
$
|
308,167
|
|
|
|
|
|
|
||||
Liabilities:
|
|
|
|
|
||||
Interest payable
|
|
$
|
195
|
|
|
$
|
254
|
|
Deposits:
|
|
|
|
|
||||
Non-interest bearing deposits
|
|
25,232
|
|
|
25,081
|
|
||
Interest-bearing deposits
|
|
185,208
|
|
|
180,467
|
|
||
Total deposits
|
|
210,440
|
|
|
205,548
|
|
||
Securitized debt obligations
|
|
12,717
|
|
|
11,624
|
|
||
Other debt:
|
|
|
|
|
||||
Federal funds purchased and securities loaned or sold under agreements to repurchase
|
|
933
|
|
|
880
|
|
||
Senior and subordinated notes
|
|
20,559
|
|
|
18,684
|
|
||
Other borrowings
|
|
6,820
|
|
|
17,269
|
|
||
Total other debt
|
|
28,312
|
|
|
36,833
|
|
||
Other liabilities
|
|
8,830
|
|
|
8,855
|
|
||
Total liabilities
|
|
260,494
|
|
|
263,114
|
|
||
Commitments, contingencies and guarantees (see Note 14)
|
|
|
|
|
||||
Stockholders’ equity:
|
|
|
|
|
||||
Preferred stock (par value $.01 per share; 50,000,000 shares authorized; 1,875,000 shares issued and outstanding both as of March 31, 2015 and December 31, 2014)
|
|
0
|
|
|
0
|
|
||
Common stock (par value $.01 per share; 1,000,000,000 shares authorized; 645,336,323 and 643,557,048 shares issued as of March 31, 2015 and December 31, 2014, respectively, and 548,003,155 and 553,391,311 shares outstanding as of March 31, 2015 and December 31, 2014, respectively)
|
|
6
|
|
|
6
|
|
||
Additional paid-in capital, net
|
|
27,939
|
|
|
27,869
|
|
||
Retained earnings
|
|
24,925
|
|
|
23,973
|
|
||
Accumulated other comprehensive loss
|
|
(212
|
)
|
|
(430
|
)
|
||
Treasury stock at cost (par value $.01 per share; 97,333,168 and 90,165,737 shares as of March 31, 2015 and December 31, 2014, respectively)
|
|
(6,928
|
)
|
|
(6,365
|
)
|
||
Total stockholders’ equity
|
|
45,730
|
|
|
45,053
|
|
||
Total liabilities and stockholders’ equity
|
|
$
|
306,224
|
|
|
$
|
308,167
|
|
|
64
|
Capital One Financial Corporation (COF)
|
(Dollars in millions, except shares)
|
|
Preferred Stock
|
|
Common Stock
|
|
Additional
Paid-In
Capital
|
|
Retained Earnings
|
|
Accumulated
Other
Comprehensive
Income (Loss)
|
|
Treasury
Stock
|
|
Total
Stockholders’
Equity
|
||||||||||||||||||||
Shares
|
|
Amount
|
|
Shares
|
|
Amount
|
|
|||||||||||||||||||||||||||
Balance as of December 31, 2014
|
|
1,875,000
|
|
|
$
|
0
|
|
|
643,557,048
|
|
|
$
|
6
|
|
|
$
|
27,869
|
|
|
$
|
23,973
|
|
|
$
|
(430
|
)
|
|
$
|
(6,365
|
)
|
|
$
|
45,053
|
|
Comprehensive income
|
|
|
|
|
|
|
|
|
|
|
|
1,153
|
|
|
218
|
|
|
|
|
1,371
|
|
|||||||||||||
Dividends—common stock
|
|
|
|
|
|
29,455
|
|
|
0
|
|
2
|
|
|
(169
|
)
|
|
|
|
|
|
(167
|
)
|
||||||||||||
Dividends—preferred stock
|
|
|
|
|
|
|
|
|
|
|
|
(32
|
)
|
|
|
|
|
|
(32
|
)
|
||||||||||||||
Purchases of treasury stock
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(563
|
)
|
|
(563
|
)
|
||||||||||||||
Issuances of common stock and restricted stock, net of forfeitures
|
|
|
|
|
|
1,497,059
|
|
|
0
|
|
24
|
|
|
|
|
|
|
|
|
24
|
|
|||||||||||||
Exercise of stock options and warrants, tax effects of exercises and restricted stock vesting
|
|
|
|
|
|
252,761
|
|
|
0
|
|
10
|
|
|
|
|
|
|
|
|
10
|
|
|||||||||||||
Compensation expense for restricted stock awards and stock options
|
|
|
|
|
|
|
|
|
|
34
|
|
|
|
|
|
|
|
|
34
|
|
||||||||||||||
Balance as of March 31, 2015
|
|
1,875,000
|
|
|
$
|
0
|
|
|
645,336,323
|
|
|
$
|
6
|
|
|
$
|
27,939
|
|
|
$
|
24,925
|
|
|
$
|
(212
|
)
|
|
$
|
(6,928
|
)
|
|
$
|
45,730
|
|
|
65
|
Capital One Financial Corporation (COF)
|
|
|
Three Months Ended March 31,
|
||||||
(Dollars in millions)
|
|
2015
|
|
2014
|
||||
Operating activities:
|
|
|
|
|
||||
Income from continuing operations, net of tax
|
|
$
|
1,134
|
|
|
$
|
1,124
|
|
Income from discontinued operations, net of tax
|
|
19
|
|
|
30
|
|
||
Net income
|
|
1,153
|
|
|
1,154
|
|
||
Adjustments to reconcile net income to cash provided by operating activities:
|
|
|
|
|
||||
Provision for credit losses
|
|
935
|
|
|
735
|
|
||
Depreciation and amortization, net
|
|
483
|
|
|
514
|
|
||
Net gain on sales of securities available for sale
|
|
(2
|
)
|
|
(13
|
)
|
||
Impairment losses on securities available for sale
|
|
15
|
|
|
5
|
|
||
Gain on sales of loans held for sale
|
|
(34
|
)
|
|
(7
|
)
|
||
Stock plan compensation expense
|
|
50
|
|
|
84
|
|
||
Loans held for sale:
|
|
|
|
|
||||
Originations and purchases
|
|
(1,916
|
)
|
|
(695
|
)
|
||
Proceeds from sales and paydowns
|
|
1,234
|
|
|
667
|
|
||
Changes in operating assets and liabilities:
|
|
|
|
|
||||
Decrease in interest receivable
|
|
1
|
|
|
5
|
|
||
Decrease in other assets
|
|
187
|
|
|
1,406
|
|
||
Decrease in interest payable
|
|
(59
|
)
|
|
(50
|
)
|
||
Decrease in other liabilities
|
|
(8
|
)
|
|
(597
|
)
|
||
Net cash used by discontinued operations
|
|
(46
|
)
|
|
(49
|
)
|
||
Net cash provided by operating activities
|
|
1,993
|
|
|
3,159
|
|
||
Investing activities:
|
|
|
|
|
||||
Securities available for sale:
|
|
|
|
|
||||
Purchases
|
|
(2,883
|
)
|
|
(3,443
|
)
|
||
Proceeds from paydowns and maturities
|
|
1,891
|
|
|
1,776
|
|
||
Proceeds from sales
|
|
1,342
|
|
|
2,976
|
|
||
Securities held to maturity:
|
|
|
|
|
||||
Purchases
|
|
(1,193
|
)
|
|
(1,269
|
)
|
||
Proceeds from paydowns and maturities
|
|
453
|
|
|
254
|
|
||
Loans:
|
|
|
|
|
||||
Net decrease in loans held for investment
|
|
3,143
|
|
|
2,817
|
|
||
Principal recoveries of loans previously charged off
|
|
403
|
|
|
404
|
|
||
Purchases of premises and equipment
|
|
(153
|
)
|
|
(129
|
)
|
||
Net cash provided by other investing activities
|
|
68
|
|
|
0
|
|
||
Net cash provided by investing activities
|
|
3,071
|
|
|
3,386
|
|
||
Financing activities:
|
|
|
|
|
||||
Deposits and borrowings:
|
|
|
|
|
||||
Decrease restricted cash for securitization investors
|
|
0
|
|
|
324
|
|
||
Net increase in deposits
|
|
4,890
|
|
|
3,799
|
|
||
Issuance of securitized debt obligations
|
|
1,247
|
|
|
948
|
|
||
Maturities and paydowns of securitized debt obligations
|
|
(175
|
)
|
|
(1,470
|
)
|
||
Issuance of senior and subordinated notes and junior subordinated debentures
|
|
2,988
|
|
|
1,994
|
|
||
Maturities and redemptions of senior and subordinate notes
|
|
(1,250
|
)
|
|
(275
|
)
|
||
Net decrease in other borrowings
|
|
(10,396
|
)
|
|
(11,787
|
)
|
||
Common stock:
|
|
|
|
|
||||
Net proceeds from issuances
|
|
$
|
24
|
|
|
$
|
27
|
|
Dividends paid
|
|
(167
|
)
|
|
(174
|
)
|
||
Preferred stock:
|
|
|
|
|
||||
Dividends paid
|
|
(32
|
)
|
|
(13
|
)
|
||
Purchases of treasury stock
|
|
(563
|
)
|
|
(39
|
)
|
||
Proceeds from share-based payment activities
|
|
19
|
|
|
12
|
|
||
Net cash used by financing activities
|
|
(3,415
|
)
|
|
(6,654
|
)
|
||
Increase (decrease) in cash and cash equivalents
|
|
1,649
|
|
|
(109
|
)
|
||
Cash and cash equivalents at beginning of the period
|
|
7,242
|
|
|
6,291
|
|
||
Cash and cash equivalents at end of the period
|
|
$
|
8,891
|
|
|
$
|
6,182
|
|
Supplemental cash flow information:
|
|
|
|
|
||||
Non-cash items:
|
|
|
|
|
||||
Net transfers from loans held for investment to loans held for sale
|
|
$
|
3
|
|
|
$
|
8
|
|
Interest paid
|
|
457
|
|
|
451
|
|
||
Income tax refund
|
|
(87
|
)
|
|
(19
|
)
|
|
66
|
Capital One Financial Corporation (COF)
|
NOTE 1—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
|
•
|
Capital One Bank (USA), National Association (“COBNA”), which offers credit and debit card products, other lending products and deposit products; and
|
•
|
Capital One, National Association (“CONA”), which offers a broad spectrum of banking products and financial services to consumers, small businesses and commercial clients.
|
|
67
|
Capital One Financial Corporation (COF)
|
NOTE 2—DISCONTINUED OPERATIONS
|
|
|
Three Months Ended March 31,
|
||||||
(Dollars in millions)
|
|
2015
|
|
2014
|
||||
Non-interest income, net
|
|
$
|
30
|
|
|
$
|
47
|
|
Income from discontinued operations before income taxes
|
|
30
|
|
|
47
|
|
||
Income tax provision
|
|
11
|
|
|
17
|
|
||
Income from discontinued operations, net of tax
|
|
$
|
19
|
|
|
$
|
30
|
|
|
68
|
Capital One Financial Corporation (COF)
|
NOTE 3—INVESTMENT SECURITIES
|
(Dollars in millions)
|
|
March 31, 2015
|
|
December 31, 2014
|
||||
Securities available for sale, at fair value
|
|
$
|
39,321
|
|
|
$
|
39,508
|
|
Securities held to maturity, at carrying value
|
|
23,241
|
|
|
22,500
|
|
||
Total investments
|
|
$
|
62,562
|
|
|
$
|
62,008
|
|
|
|
March 31, 2015
|
||||||||||||||
(Dollars in millions)
|
|
Amortized
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
(1)
|
|
Fair
Value
|
||||||||
Investment securities available for sale:
|
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury securities
|
|
$
|
4,411
|
|
|
$
|
29
|
|
|
$
|
0
|
|
|
$
|
4,440
|
|
Corporate debt securities guaranteed by U.S. government agencies
|
|
600
|
|
|
3
|
|
|
(5
|
)
|
|
598
|
|
||||
RMBS:
|
|
|
|
|
|
|
|
|
||||||||
Agency
(2)
|
|
22,344
|
|
|
327
|
|
|
(64
|
)
|
|
22,607
|
|
||||
Non-agency
|
|
2,943
|
|
|
503
|
|
|
(5
|
)
|
|
3,441
|
|
||||
Total RMBS
|
|
25,287
|
|
|
830
|
|
|
(69
|
)
|
|
26,048
|
|
||||
CMBS:
|
|
|
|
|
|
|
|
|
||||||||
Agency
(2)
|
|
3,672
|
|
|
47
|
|
|
(43
|
)
|
|
3,676
|
|
||||
Non-agency
|
|
1,711
|
|
|
46
|
|
|
(4
|
)
|
|
1,753
|
|
||||
Total CMBS
|
|
5,383
|
|
|
93
|
|
|
(47
|
)
|
|
5,429
|
|
||||
Other ABS
(3)
|
|
2,025
|
|
|
6
|
|
|
(3
|
)
|
|
2,028
|
|
||||
Other securities
(4)
|
|
775
|
|
|
7
|
|
|
(4
|
)
|
|
778
|
|
||||
Total investment securities available for sale
|
|
$
|
38,481
|
|
|
$
|
968
|
|
|
$
|
(128
|
)
|
|
$
|
39,321
|
|
|
69
|
Capital One Financial Corporation (COF)
|
|
|
December 31, 2014
|
||||||||||||||
(Dollars in millions)
|
|
Amortized
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
(1)
|
|
Fair
Value
|
||||||||
Investment securities available for sale:
|
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury securities
|
|
$
|
4,114
|
|
|
$
|
5
|
|
|
$
|
(1
|
)
|
|
$
|
4,118
|
|
Corporate debt securities guaranteed by U.S. government agencies
|
|
819
|
|
|
1
|
|
|
(20
|
)
|
|
800
|
|
||||
RMBS:
|
|
|
|
|
|
|
|
|
||||||||
Agency
(2)
|
|
21,804
|
|
|
296
|
|
|
(105
|
)
|
|
21,995
|
|
||||
Non-agency
|
|
2,938
|
|
|
461
|
|
|
(13
|
)
|
|
3,386
|
|
||||
Total RMBS
|
|
24,742
|
|
|
757
|
|
|
(118
|
)
|
|
25,381
|
|
||||
CMBS:
|
|
|
|
|
|
|
|
|
||||||||
Agency
(2)
|
|
3,751
|
|
|
32
|
|
|
(60
|
)
|
|
3,723
|
|
||||
Non-agency
|
|
1,780
|
|
|
31
|
|
|
(15
|
)
|
|
1,796
|
|
||||
Total CMBS
|
|
5,531
|
|
|
63
|
|
|
(75
|
)
|
|
5,519
|
|
||||
Other ABS
(3)
|
|
2,618
|
|
|
54
|
|
|
(10
|
)
|
|
2,662
|
|
||||
Other securities
(4)
|
|
1,035
|
|
|
6
|
|
|
(13
|
)
|
|
1,028
|
|
||||
Total investment securities available for sale
|
|
$
|
38,859
|
|
|
$
|
886
|
|
|
$
|
(237
|
)
|
|
$
|
39,508
|
|
(1)
|
Includes non-credit related other-than-temporary impairment (“OTTI”) that remains in accumulated other comprehensive income (“AOCI”) of
$5 million
and
$8 million
as of
March 31, 2015
and
December 31, 2014
, respectively. Substantially all of this entire amount is related to non-agency RMBS.
|
(2)
|
Agency includes Federal National Mortgage Association (“Fannie Mae”), Federal Home Loan Mortgage Corporation (“Freddie Mac”), and Government National Mortgage Association (“Ginnie Mae”).
|
(3)
|
ABS collateralized by credit card loans constituted approximately
59%
and
56%
of the other ABS portfolio as of
March 31, 2015
and
December 31, 2014
, respectively, and ABS collateralized by auto dealer floor plan inventory loans and leases constituted approximately
18%
and
16%
of the other ABS portfolio as of
March 31, 2015
and
December 31, 2014
, respectively.
|
(4)
|
Includes foreign government bonds, corporate bonds, municipal securities and equity investments primarily related to activities under the Community Reinvestment Act (“CRA”).
|
|
|
March 31, 2015
|
||||||||||||||||||||||
(Dollars in millions)
|
|
Amortized
Cost
|
|
Unrealized Losses Recorded in AOCI
(1)
|
|
Carrying Value
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Fair
Value
|
||||||||||||
U.S. Treasury securities
|
|
$
|
198
|
|
|
$
|
0
|
|
|
$
|
198
|
|
|
$
|
1
|
|
|
$
|
0
|
|
|
$
|
199
|
|
Agency RMBS
|
|
21,639
|
|
|
$
|
(1,155
|
)
|
|
20,484
|
|
|
1,282
|
|
|
(3
|
)
|
|
21,763
|
|
|||||
Agency CMBS
|
|
2,675
|
|
|
(116
|
)
|
|
2,559
|
|
|
132
|
|
|
0
|
|
|
2,691
|
|
||||||
Total investment securities held to maturity
|
|
$
|
24,512
|
|
|
$
|
(1,271
|
)
|
|
$
|
23,241
|
|
|
$
|
1,415
|
|
|
$
|
(3
|
)
|
|
$
|
24,653
|
|
|
|
December 31, 2014
|
||||||||||||||||||||||
(Dollars in millions)
|
|
Amortized
Cost
|
|
Unrealized
Losses Recorded in AOCI
(1)
|
|
Carrying Value
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Fair
Value
|
||||||||||||
U.S. Treasury securities
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
Agency RMBS
|
|
21,347
|
|
|
$
|
(1,184
|
)
|
|
20,163
|
|
|
1,047
|
|
|
0
|
|
|
21,210
|
|
|||||
Agency CMBS
|
|
2,457
|
|
|
(120
|
)
|
|
2,337
|
|
|
93
|
|
|
(6
|
)
|
|
2,424
|
|
||||||
Total investment securities held to maturity
|
|
$
|
23,804
|
|
|
$
|
(1,304
|
)
|
|
$
|
22,500
|
|
|
$
|
1,140
|
|
|
$
|
(6
|
)
|
|
$
|
23,634
|
|
|
70
|
Capital One Financial Corporation (COF)
|
(1)
|
Represents the unrealized holding gain or loss at the date of transfer from available for sale to held to maturity, net of any subsequent accretion. Any bonds purchased into the securities held for maturity portfolio rather than transferred will not have unrealized losses recognized in AOCI.
|
|
|
March 31, 2015
|
||||||||||||||||||||||
|
|
Less than 12 Months
|
|
12 Months or Longer
|
|
Total
|
||||||||||||||||||
(Dollars in millions)
|
|
Fair Value
|
|
Gross
Unrealized
Losses
|
|
Fair Value
|
|
Gross
Unrealized
Losses
|
|
Fair Value
|
|
Gross
Unrealized
Losses
|
||||||||||||
Investment securities available for sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. Treasury securities
|
|
$
|
201
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
201
|
|
|
$
|
0
|
|
Corporate debt securities guaranteed by U.S. government agencies
|
|
155
|
|
|
(1
|
)
|
|
307
|
|
|
(4
|
)
|
|
462
|
|
|
(5
|
)
|
||||||
RMBS:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Agency
|
|
4,288
|
|
|
(14
|
)
|
|
3,549
|
|
|
(50
|
)
|
|
7,837
|
|
|
(64
|
)
|
||||||
Non-agency
|
|
145
|
|
|
(2
|
)
|
|
62
|
|
|
(3
|
)
|
|
207
|
|
|
(5
|
)
|
||||||
Total RMBS
|
|
4,433
|
|
|
(16
|
)
|
|
3,611
|
|
|
(53
|
)
|
|
8,044
|
|
|
(69
|
)
|
||||||
CMBS:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Agency
|
|
158
|
|
|
0
|
|
|
1,669
|
|
|
(43
|
)
|
|
1,827
|
|
|
(43
|
)
|
||||||
Non-agency
|
|
153
|
|
|
(1
|
)
|
|
312
|
|
|
(3
|
)
|
|
465
|
|
|
(4
|
)
|
||||||
Total CMBS
|
|
311
|
|
|
(1
|
)
|
|
1,981
|
|
|
(46
|
)
|
|
2,292
|
|
|
(47
|
)
|
||||||
Other ABS
|
|
376
|
|
|
0
|
|
|
474
|
|
|
(3
|
)
|
|
850
|
|
|
(3
|
)
|
||||||
Other securities
|
|
160
|
|
|
(2
|
)
|
|
184
|
|
|
(2
|
)
|
|
344
|
|
|
(4
|
)
|
||||||
Total investment securities available for sale in a gross unrealized loss position
|
|
$
|
5,636
|
|
|
$
|
(20
|
)
|
|
$
|
6,557
|
|
|
$
|
(108
|
)
|
|
$
|
12,193
|
|
|
$
|
(128
|
)
|
|
71
|
Capital One Financial Corporation (COF)
|
|
|
December 31, 2014
|
||||||||||||||||||||||
|
|
Less than 12 Months
|
|
12 Months or Longer
|
|
Total
|
||||||||||||||||||
(Dollars in millions)
|
|
Fair Value
|
|
Gross
Unrealized
Losses
|
|
Fair Value
|
|
Gross
Unrealized
Losses
|
|
Fair Value
|
|
Gross
Unrealized
Losses
|
||||||||||||
Investment securities available for sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. Treasury securities
|
|
$
|
1,499
|
|
|
$
|
(1
|
)
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
1,499
|
|
|
$
|
(1
|
)
|
Corporate debt securities guaranteed by U.S. government agencies
|
|
113
|
|
|
(2
|
)
|
|
557
|
|
|
(18
|
)
|
|
670
|
|
|
(20
|
)
|
||||||
RMBS:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Agency
|
|
3,917
|
|
|
(15
|
)
|
|
4,413
|
|
|
(90
|
)
|
|
8,330
|
|
|
(105
|
)
|
||||||
Non-agency
|
|
412
|
|
|
(9
|
)
|
|
90
|
|
|
(4
|
)
|
|
502
|
|
|
(13
|
)
|
||||||
Total RMBS
|
|
4,329
|
|
|
(24
|
)
|
|
4,503
|
|
|
(94
|
)
|
|
8,832
|
|
|
(118
|
)
|
||||||
CMBS:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Agency
|
|
294
|
|
|
(2
|
)
|
|
1,993
|
|
|
(58
|
)
|
|
2,287
|
|
|
(60
|
)
|
||||||
Non-agency
|
|
258
|
|
|
(1
|
)
|
|
681
|
|
|
(14
|
)
|
|
939
|
|
|
(15
|
)
|
||||||
Total CMBS
|
|
552
|
|
|
(3
|
)
|
|
2,674
|
|
|
(72
|
)
|
|
3,226
|
|
|
(75
|
)
|
||||||
Other ABS
|
|
783
|
|
|
(1
|
)
|
|
586
|
|
|
(9
|
)
|
|
1,369
|
|
|
(10
|
)
|
||||||
Other securities
|
|
106
|
|
|
0
|
|
|
551
|
|
|
(13
|
)
|
|
657
|
|
|
(13
|
)
|
||||||
Total investment securities available for sale in a gross unrealized loss position
|
|
$
|
7,382
|
|
|
$
|
(31
|
)
|
|
$
|
8,871
|
|
|
$
|
(206
|
)
|
|
$
|
16,253
|
|
|
$
|
(237
|
)
|
|
|
March 31, 2015
|
||||||
(Dollars in millions)
|
|
Amortized Cost
|
|
Fair Value
|
||||
Due in 1 year or less
|
|
$
|
662
|
|
|
$
|
662
|
|
Due after 1 year through 5 years
|
|
6,526
|
|
|
6,571
|
|
||
Due after 5 years through 10 years
|
|
2,509
|
|
|
2,554
|
|
||
Due after 10 years
(1)
|
|
28,784
|
|
|
29,534
|
|
||
Total
|
|
$
|
38,481
|
|
|
$
|
39,321
|
|
(1)
|
Investments with no stated maturities, which consist of equity securities, are included with contractual maturities due after 10 years.
|
|
72
|
Capital One Financial Corporation (COF)
|
|
|
March 31, 2015
|
||||||
(Dollars in millions)
|
|
Carrying Value
|
|
Fair Value
|
||||
Due after 1 year through 5 years
|
|
$
|
198
|
|
|
$
|
199
|
|
Due after 5 years through 10 years
|
|
1,146
|
|
|
1,244
|
|
||
Due after 10 years
|
|
21,897
|
|
|
23,210
|
|
||
Total
|
|
$
|
23,241
|
|
|
$
|
24,653
|
|
|
|
March 31, 2015
|
||||||||||||||||||
(Dollars in millions)
|
|
Due in
1 Year or Less
|
|
Due > 1 Year
through
5 Years
|
|
Due > 5 Years
through
10 Years
|
|
Due > 10 Years
|
|
Total
|
||||||||||
Fair value of securities available for sale:
|
||||||||||||||||||||
U.S. Treasury securities
|
|
$
|
251
|
|
|
$
|
4,189
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
4,440
|
|
Corporate debt securities guaranteed by U.S. government agencies
|
|
0
|
|
|
434
|
|
|
151
|
|
|
13
|
|
|
598
|
|
|||||
RMBS:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Agency
|
|
369
|
|
|
15,422
|
|
|
6,816
|
|
|
0
|
|
|
22,607
|
|
|||||
Non-agency
|
|
10
|
|
|
931
|
|
|
1,688
|
|
|
812
|
|
|
3,441
|
|
|||||
Total RMBS
|
|
379
|
|
|
16,353
|
|
|
8,504
|
|
|
812
|
|
|
26,048
|
|
|||||
CMBS:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Agency
|
|
129
|
|
|
2,005
|
|
|
1,523
|
|
|
19
|
|
|
3,676
|
|
|||||
Non-agency
|
|
135
|
|
|
424
|
|
|
1,194
|
|
|
0
|
|
|
1,753
|
|
|||||
Total CMBS
|
|
264
|
|
|
2,429
|
|
|
2,717
|
|
|
19
|
|
|
5,429
|
|
|||||
Other ABS
|
|
656
|
|
|
1,177
|
|
|
195
|
|
|
0
|
|
|
2,028
|
|
|||||
Other securities
|
|
99
|
|
|
188
|
|
|
401
|
|
|
90
|
|
|
778
|
|
|||||
Total securities available for sale
|
|
$
|
1,649
|
|
|
$
|
24,770
|
|
|
$
|
11,968
|
|
|
$
|
934
|
|
|
$
|
39,321
|
|
Amortized cost of securities available for sale
|
|
$
|
1,651
|
|
|
$
|
24,431
|
|
|
$
|
11,581
|
|
|
$
|
818
|
|
|
$
|
38,481
|
|
Weighted average yield for securities available for sale
(1)
|
|
0.97
|
%
|
|
2.17
|
%
|
|
3.25
|
%
|
|
9.36
|
%
|
|
2.60
|
%
|
|||||
Carrying value of securities held to maturity:
|
||||||||||||||||||||
U.S. Treasury securities
|
|
$
|
0
|
|
|
$
|
198
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
198
|
|
Agency RMBS
|
|
29
|
|
|
2,097
|
|
|
16,003
|
|
|
2,355
|
|
|
20,484
|
|
|||||
Agency CMBS
|
|
0
|
|
|
65
|
|
|
2,304
|
|
|
190
|
|
|
2,559
|
|
|||||
Total securities held for maturity
|
|
$
|
29
|
|
|
$
|
2,360
|
|
|
$
|
18,307
|
|
|
$
|
2,545
|
|
|
$
|
23,241
|
|
Fair value of securities held to maturity
|
|
$
|
29
|
|
|
$
|
2,446
|
|
|
$
|
19,385
|
|
|
$
|
2,793
|
|
|
$
|
24,653
|
|
Weighted average yield for securities held to maturity
(1)
|
|
4.59
|
%
|
|
2.59
|
%
|
|
2.64
|
%
|
|
3.52
|
%
|
|
2.73
|
%
|
(1)
|
Average yield represents the effective yield for the investment securities and is calculated based on the amortized cost of each security.
|
|
73
|
Capital One Financial Corporation (COF)
|
|
|
Three Months Ended March 31,
|
||||||
(Dollars in millions)
|
|
2015
|
|
2014
|
||||
Credit loss component, beginning of period
|
|
$
|
175
|
|
|
$
|
160
|
|
Additions:
|
|
|
|
|
||||
Initial credit impairment
|
|
5
|
|
|
1
|
|
||
Subsequent credit impairment
|
|
10
|
|
|
4
|
|
||
Total additions
|
|
15
|
|
|
5
|
|
||
Credit loss component, end of period
|
|
$
|
190
|
|
|
$
|
165
|
|
|
|
Three Months Ended March 31,
|
||||||
(Dollars in millions)
|
|
2015
|
|
2014
|
||||
Realized gains (losses):
|
|
|
|
|
||||
Gross realized gains
|
|
$
|
9
|
|
|
$
|
32
|
|
Gross realized losses
|
|
(7
|
)
|
|
(19
|
)
|
||
Net realized gains
|
|
2
|
|
|
13
|
|
||
Credit-related OTTI recognized in earnings
|
|
(15
|
)
|
|
(5
|
)
|
||
Total OTTI recognized in earnings
|
|
(15
|
)
|
|
(5
|
)
|
||
Net securities (losses) gains
|
|
$
|
(13
|
)
|
|
$
|
8
|
|
Total proceeds from sales
|
|
$
|
1,342
|
|
|
$
|
2,976
|
|
|
74
|
Capital One Financial Corporation (COF)
|
(Dollars in millions)
|
|
March 31, 2015
|
|
December 31, 2014
|
||||
Outstanding balance
|
|
$
|
4,076
|
|
|
$
|
4,259
|
|
Carrying value
|
|
2,787
|
|
|
2,839
|
|
||
Amortized cost
|
|
2,307
|
|
|
2,354
|
|
(Dollars in millions)
|
|
Acquired
Credit-Impaired
Securities
|
||
Accretable yield as of December 31, 2014
|
|
$
|
1,250
|
|
Accretion recognized in earnings
|
|
(61
|
)
|
|
Reduction due to payoffs, disposals, transfers and other
|
|
(1
|
)
|
|
Net reclassifications from (to) nonaccretable difference
|
|
(17
|
)
|
|
Accretable yield as of March 31, 2015
|
|
$
|
1,171
|
|
|
75
|
Capital One Financial Corporation (COF)
|
NOTE 4—LOANS
|
|
|
March 31, 2015
|
||||||||||||||||||||||||||
(Dollars in millions)
|
|
Current
|
|
30-59
Days
|
|
60-89
Days
|
|
>
90
Days
|
|
Total
Delinquent
Loans
|
|
Acquired
Loans
|
|
Total
Loans
|
||||||||||||||
Credit Card:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Domestic credit card
(1)
|
|
$
|
71,947
|
|
|
$
|
637
|
|
|
$
|
456
|
|
|
$
|
1,070
|
|
|
$
|
2,163
|
|
|
$
|
21
|
|
|
$
|
74,131
|
|
International credit card
|
|
7,361
|
|
|
102
|
|
|
61
|
|
|
99
|
|
|
262
|
|
|
0
|
|
|
7,623
|
|
|||||||
Total credit card
|
|
79,308
|
|
|
739
|
|
|
517
|
|
|
1,169
|
|
|
2,425
|
|
|
21
|
|
|
81,754
|
|
|||||||
Consumer Banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Auto
|
|
36,788
|
|
|
1,514
|
|
|
515
|
|
|
120
|
|
|
2,149
|
|
|
0
|
|
|
38,937
|
|
|||||||
Home loan
|
|
6,509
|
|
|
49
|
|
|
25
|
|
|
208
|
|
|
282
|
|
|
22,114
|
|
|
28,905
|
|
|||||||
Retail banking
|
|
3,458
|
|
|
17
|
|
|
9
|
|
|
14
|
|
|
40
|
|
|
39
|
|
|
3,537
|
|
|||||||
Total consumer banking
|
|
46,755
|
|
|
1,580
|
|
|
549
|
|
|
342
|
|
|
2,471
|
|
|
22,153
|
|
|
71,379
|
|
|||||||
Commercial Banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commercial and multifamily real estate
|
|
22,695
|
|
|
43
|
|
|
5
|
|
|
51
|
|
|
99
|
|
|
37
|
|
|
22,831
|
|
|||||||
Commercial and industrial
|
|
26,800
|
|
|
14
|
|
|
120
|
|
|
115
|
|
|
249
|
|
|
123
|
|
|
27,172
|
|
|||||||
Total commercial lending
|
|
49,495
|
|
|
57
|
|
|
125
|
|
|
166
|
|
|
348
|
|
|
160
|
|
|
50,003
|
|
|||||||
Small-ticket commercial real estate
|
|
725
|
|
|
4
|
|
|
4
|
|
|
5
|
|
|
13
|
|
|
0
|
|
|
738
|
|
|||||||
Total commercial banking
|
|
50,220
|
|
|
61
|
|
|
129
|
|
|
171
|
|
|
361
|
|
|
160
|
|
|
50,741
|
|
|||||||
Other:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Other loans
|
|
91
|
|
|
4
|
|
|
1
|
|
|
8
|
|
|
13
|
|
|
0
|
|
|
104
|
|
|||||||
Total loans
(
2)
|
|
$
|
176,374
|
|
|
$
|
2,384
|
|
|
$
|
1,196
|
|
|
$
|
1,690
|
|
|
$
|
5,270
|
|
|
$
|
22,334
|
|
|
$
|
203,978
|
|
% of Total loans
|
|
86.47
|
%
|
|
1.17
|
%
|
|
0.58
|
%
|
|
0.83
|
%
|
|
2.58
|
%
|
|
10.95
|
%
|
|
100.00
|
%
|
|
76
|
Capital One Financial Corporation (COF)
|
|
|
December 31, 2014
|
||||||||||||||||||||||||||
(Dollars in millions)
|
|
Current
|
|
30-59
Days
|
|
60-89
Days
|
|
>
90
Days
|
|
Total
Delinquent
Loans
|
|
Acquired
Loans
|
|
Total
Loans
|
||||||||||||||
Credit Card:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Domestic credit card
(1)
|
|
$
|
75,143
|
|
|
$
|
790
|
|
|
$
|
567
|
|
|
$
|
1,181
|
|
|
$
|
2,538
|
|
|
$
|
23
|
|
|
$
|
77,704
|
|
International credit card
|
|
7,878
|
|
|
114
|
|
|
69
|
|
|
111
|
|
|
294
|
|
|
0
|
|
|
8,172
|
|
|||||||
Total credit card
|
|
83,021
|
|
|
904
|
|
|
636
|
|
|
1,292
|
|
|
2,832
|
|
|
23
|
|
|
85,876
|
|
|||||||
Consumer Banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Auto
|
|
35,142
|
|
|
1,751
|
|
|
734
|
|
|
197
|
|
|
2,682
|
|
|
0
|
|
|
37,824
|
|
|||||||
Home loan
|
|
6,492
|
|
|
57
|
|
|
27
|
|
|
218
|
|
|
302
|
|
|
23,241
|
|
|
30,035
|
|
|||||||
Retail banking
|
|
3,496
|
|
|
17
|
|
|
7
|
|
|
16
|
|
|
40
|
|
|
44
|
|
|
3,580
|
|
|||||||
Total consumer banking
|
|
45,130
|
|
|
1,825
|
|
|
768
|
|
|
431
|
|
|
3,024
|
|
|
23,285
|
|
|
71,439
|
|
|||||||
Commercial Banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commercial and multifamily real estate
|
|
22,974
|
|
|
74
|
|
|
7
|
|
|
36
|
|
|
117
|
|
|
46
|
|
|
23,137
|
|
|||||||
Commercial and industrial
|
|
26,753
|
|
|
29
|
|
|
10
|
|
|
34
|
|
|
73
|
|
|
146
|
|
|
26,972
|
|
|||||||
Total commercial lending
|
|
49,727
|
|
|
103
|
|
|
17
|
|
|
70
|
|
|
190
|
|
|
192
|
|
|
50,109
|
|
|||||||
Small-ticket commercial real estate
|
|
771
|
|
|
6
|
|
|
1
|
|
|
3
|
|
|
10
|
|
|
0
|
|
|
781
|
|
|||||||
Total commercial banking
|
|
50,498
|
|
|
109
|
|
|
18
|
|
|
73
|
|
|
200
|
|
|
192
|
|
|
50,890
|
|
|||||||
Other:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Other loans
|
|
97
|
|
|
3
|
|
|
2
|
|
|
9
|
|
|
14
|
|
|
0
|
|
|
111
|
|
|||||||
Total loans
(2)
|
|
$
|
178,746
|
|
|
$
|
2,841
|
|
|
$
|
1,424
|
|
|
$
|
1,805
|
|
|
$
|
6,070
|
|
|
$
|
23,500
|
|
|
$
|
208,316
|
|
% of Total loans
|
|
85.81
|
%
|
|
1.36
|
%
|
|
0.68
|
%
|
|
0.87
|
%
|
|
2.91
|
%
|
|
11.28
|
%
|
|
100.00
|
%
|
(1)
|
Includes installment loans of
$123 million
and
$144 million
as of
March 31, 2015
and
December 31, 2014
, respectively.
|
(2)
|
Loans as presented are net of unearned income, unamortized premiums and discounts, and net unamortized deferred fees and costs totaling
$1.0 billion
and
$1.1 billion
as of March 31, 2015 and December 31, 2014, respectively.
|
|
|
March 31, 2015
|
|
December 31, 2014
|
||||||||||||
(Dollars in millions)
|
|
>
90 Days and Accruing
|
|
Nonperforming
Loans
|
|
>
90 Days and Accruing
|
|
Nonperforming
Loans
|
||||||||
Credit Card:
|
|
|
|
|
|
|
|
|
||||||||
Domestic credit card
|
|
$
|
1,070
|
|
|
$
|
0
|
|
|
$
|
1,181
|
|
|
$
|
0
|
|
International credit card
|
|
64
|
|
|
64
|
|
|
73
|
|
|
70
|
|
||||
Total credit card
|
|
1,134
|
|
|
64
|
|
|
1,254
|
|
|
70
|
|
||||
Consumer Banking:
|
|
|
|
|
|
|
|
|
||||||||
Auto
|
|
0
|
|
|
120
|
|
|
0
|
|
|
197
|
|
||||
Home loan
|
|
0
|
|
|
336
|
|
|
0
|
|
|
330
|
|
||||
Retail banking
|
|
1
|
|
|
25
|
|
|
1
|
|
|
22
|
|
||||
Total consumer banking
|
|
1
|
|
|
481
|
|
|
1
|
|
|
549
|
|
||||
|
|
|
|
|
|
|
|
|
|
77
|
Capital One Financial Corporation (COF)
|
Commercial Banking:
|
|
|
|
|
|
|
|
|
||||||||
Commercial and multifamily real estate
|
|
24
|
|
|
40
|
|
|
7
|
|
|
62
|
|
||||
Commercial and industrial
|
|
60
|
|
|
106
|
|
|
1
|
|
|
106
|
|
||||
Total commercial lending
|
|
84
|
|
|
146
|
|
|
8
|
|
|
168
|
|
||||
Small-ticket commercial real estate
|
|
0
|
|
|
12
|
|
|
0
|
|
|
7
|
|
||||
Total commercial banking
|
|
84
|
|
|
158
|
|
|
8
|
|
|
175
|
|
||||
Other:
|
|
|
|
|
|
|
|
|
||||||||
Other loans
|
|
0
|
|
|
14
|
|
|
0
|
|
|
15
|
|
||||
Total
|
|
$
|
1,219
|
|
|
$
|
717
|
|
|
$
|
1,263
|
|
|
$
|
809
|
|
% of Total loans
|
|
0.60
|
%
|
|
0.35
|
%
|
|
0.61
|
%
|
|
0.39
|
%
|
(1)
|
Nonperfor
ming loans generally include loans that have been placed on nonaccrual status. Acquired Loans are excluded from loans reported as 90 days and accruing inte
rest as well as nonperforming loans.
|
|
|
March 31, 2015
|
|
December 31, 2014
|
||||||||||
(Dollars in millions)
|
|
Amount
|
|
% of
Total
(1)
|
|
Amount
|
|
% of
Total
(1)
|
||||||
Domestic credit card:
|
|
|
|
|
|
|
|
|
||||||
California
|
|
$
|
8,326
|
|
|
10.2
|
%
|
|
$
|
8,574
|
|
|
10.0
|
%
|
New York
|
|
5,339
|
|
|
6.5
|
|
|
5,610
|
|
|
6.5
|
|
||
Texas
|
|
5,190
|
|
|
6.4
|
|
|
5,382
|
|
|
6.3
|
|
||
Florida
|
|
4,635
|
|
|
5.7
|
|
|
4,794
|
|
|
5.6
|
|
||
Illinois
|
|
3,525
|
|
|
4.3
|
|
|
3,747
|
|
|
4.4
|
|
||
Pennsylvania
|
|
3,349
|
|
|
4.1
|
|
|
3,581
|
|
|
4.2
|
|
||
Ohio
|
|
2,882
|
|
|
3.5
|
|
|
3,075
|
|
|
3.6
|
|
||
New Jersey
|
|
2,714
|
|
|
3.3
|
|
|
2,868
|
|
|
3.3
|
|
||
Michigan
|
|
2,516
|
|
|
3.1
|
|
|
2,681
|
|
|
3.1
|
|
||
Other
|
|
35,655
|
|
|
43.6
|
|
|
37,392
|
|
|
43.5
|
|
||
Total domestic credit card
|
|
74,131
|
|
|
90.7
|
|
|
77,704
|
|
|
90.5
|
|
||
International credit card:
|
|
|
|
|
|
|
|
|
||||||
Canada
|
|
4,443
|
|
|
5.4
|
|
|
4,747
|
|
|
5.5
|
|
||
United Kingdom
|
|
3,180
|
|
|
3.9
|
|
|
3,425
|
|
|
4.0
|
|
||
Total international credit card
|
|
7,623
|
|
|
9.3
|
|
|
8,172
|
|
|
9.5
|
|
||
Total credit card
|
|
$
|
81,754
|
|
|
100.0
|
%
|
|
$
|
85,876
|
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
|
78
|
Capital One Financial Corporation (COF)
|
Selected credit metrics
(2)
:
|
|
|
|
|
|
|
|
|
||||||
30+ day delinquencies
|
|
$
|
2,425
|
|
|
2.97
|
%
|
|
$
|
2,832
|
|
|
3.30
|
%
|
90+ day delinquencies
|
|
1,169
|
|
|
1.43
|
|
|
1,292
|
|
|
1.50
|
|
(1)
|
P
ercentages by geographic region within the domestic and international credit card portfolios are calculated based on the total held for investment credit card loan
s as of the end of the reported period.
|
(2)
|
Calculated by dividing delinquent credit card loans by the total balance of credit card loans held for investment as of the end of the reported period.
|
|
|
Three Months Ended March 31,
|
||||||||||||
|
|
2015
|
|
2014
|
||||||||||
(Dollars in millions)
|
|
Amount
|
|
Rate
(1)
|
|
Amount
|
|
Rate
(1)
|
||||||
Net charge-offs:
|
|
|
|
|
|
|
|
|
||||||
Domestic credit card
|
|
$
|
664
|
|
|
3.55
|
%
|
|
$
|
700
|
|
|
4.01
|
%
|
International credit card
|
|
55
|
|
|
2.80
|
|
|
80
|
|
|
4.17
|
|
||
Total credit card
|
|
$
|
719
|
|
|
3.48
|
|
|
$
|
780
|
|
|
4.02
|
|
(1)
|
Calculated for each loan category by dividing annualized net charge-offs for the period by average loans held for investment during the period.
|
|
79
|
Capital One Financial Corporation (COF)
|
|
|
March 31, 2015
|
|
December 31, 2014
|
||||||||||
(Dollars in millions)
|
|
Amount
|
|
% of Total
(1)
|
|
Amount
|
|
% of
Total
(1)
|
||||||
Auto:
|
|
|
|
|
|
|
|
|
||||||
Texas
|
|
$
|
5,323
|
|
|
7.4
|
%
|
|
$
|
5,248
|
|
|
7.4
|
%
|
California
|
|
4,248
|
|
|
6.0
|
|
|
4,081
|
|
|
5.7
|
|
||
Florida
|
|
2,919
|
|
|
4.1
|
|
|
2,737
|
|
|
3.8
|
|
||
Georgia
|
|
2,124
|
|
|
3.0
|
|
|
2,066
|
|
|
2.9
|
|
||
Louisiana
|
|
1,820
|
|
|
2.5
|
|
|
1,773
|
|
|
2.5
|
|
||
Illinois
|
|
1,722
|
|
|
2.4
|
|
|
1,676
|
|
|
2.4
|
|
||
Ohio
|
|
1,607
|
|
|
2.2
|
|
|
1,566
|
|
|
2.2
|
|
||
Other
|
|
19,174
|
|
|
26.9
|
|
|
18,677
|
|
|
26.1
|
|
||
Total auto
|
|
38,937
|
|
|
54.5
|
|
|
37,824
|
|
|
53.0
|
|
||
Home loan:
|
|
|
|
|
|
|
|
|
||||||
California
|
|
6,696
|
|
|
9.4
|
|
|
6,943
|
|
|
9.7
|
|
||
New York
|
|
2,387
|
|
|
3.3
|
|
|
2,452
|
|
|
3.4
|
|
||
Illinois
|
|
1,792
|
|
|
2.5
|
|
|
1,873
|
|
|
2.6
|
|
||
Maryland
|
|
1,674
|
|
|
2.3
|
|
|
1,720
|
|
|
2.4
|
|
||
Virginia
|
|
1,500
|
|
|
2.1
|
|
|
1,538
|
|
|
2.2
|
|
||
New Jersey
|
|
1,471
|
|
|
2.1
|
|
|
1,529
|
|
|
2.1
|
|
||
Florida
|
|
1,317
|
|
|
1.8
|
|
|
1,375
|
|
|
1.9
|
|
||
Other
|
|
12,068
|
|
|
17.0
|
|
|
12,605
|
|
|
17.7
|
|
||
Total home loan
|
|
28,905
|
|
|
40.5
|
|
|
30,035
|
|
|
42.0
|
|
||
Retail banking:
|
|
|
|
|
|
|
|
|
||||||
Louisiana
|
|
1,098
|
|
|
1.6
|
|
|
1,120
|
|
|
1.5
|
|
||
New York
|
|
873
|
|
|
1.2
|
|
|
881
|
|
|
1.2
|
|
||
Texas
|
|
749
|
|
|
1.0
|
|
|
756
|
|
|
1.1
|
|
||
New Jersey
|
|
252
|
|
|
0.4
|
|
|
265
|
|
|
0.4
|
|
||
Maryland
|
|
165
|
|
|
0.2
|
|
|
167
|
|
|
0.2
|
|
||
Virginia
|
|
142
|
|
|
0.2
|
|
|
132
|
|
|
0.2
|
|
||
California
|
|
50
|
|
|
0.1
|
|
|
52
|
|
|
0.1
|
|
||
Other
|
|
208
|
|
|
0.3
|
|
|
207
|
|
|
0.3
|
|
||
Total retail banking
|
|
3,537
|
|
|
5.0
|
|
|
3,580
|
|
|
5.0
|
|
||
Total consumer banking
|
|
$
|
71,379
|
|
|
100.0
|
%
|
|
$
|
71,439
|
|
|
100.0
|
%
|
|
|
March 31, 2015
|
||||||||||||||||||||||||||
|
|
Auto
|
|
Home Loan
|
|
Retail Banking
|
|
Total Consumer
Banking
|
||||||||||||||||||||
(Dollars in millions)
|
|
Amount
|
|
Rate
|
|
Amount
|
|
Rate
(2)
|
|
Amount
|
|
Rate
|
|
Amount
|
|
Rate
(2)
|
||||||||||||
Credit performance:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
30+ day delinquencies
|
|
$
|
2,149
|
|
|
5.52
|
%
|
|
$
|
282
|
|
|
0.97
|
%
|
|
$
|
40
|
|
|
1.12
|
%
|
|
$
|
2,471
|
|
|
3.46
|
%
|
90+ day delinquencies
|
|
120
|
|
|
0.31
|
|
|
208
|
|
|
0.72
|
|
|
14
|
|
|
0.40
|
|
|
342
|
|
|
0.48
|
|
||||
Nonperforming loans
|
|
120
|
|
|
0.31
|
|
|
336
|
|
|
1.16
|
|
|
25
|
|
|
0.71
|
|
|
481
|
|
|
0.67
|
|
|
80
|
Capital One Financial Corporation (COF)
|
|
|
December 31, 2014
|
||||||||||||||||||||||||||
|
|
Auto
|
|
Home Loan
|
|
Retail Banking
|
|
Total Consumer
Banking
|
||||||||||||||||||||
(Dollars in millions)
|
|
Amount
|
|
Rate
|
|
Amount
|
|
Rate
(2)
|
|
Amount
|
|
Rate
|
|
Amount
|
|
Rate
(2)
|
||||||||||||
Credit performance:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
30+ day delinquencies
|
|
$
|
2,682
|
|
|
7.09
|
%
|
|
$
|
302
|
|
|
1.01
|
%
|
|
$
|
40
|
|
|
1.11
|
%
|
|
$
|
3,024
|
|
|
4.23
|
%
|
90+ day delinquencies
|
|
197
|
|
|
0.52
|
|
|
218
|
|
|
0.73
|
|
|
16
|
|
|
0.44
|
|
|
431
|
|
|
0.60
|
|
||||
Nonperforming loans
|
|
197
|
|
|
0.52
|
|
|
330
|
|
|
1.10
|
|
|
22
|
|
|
0.61
|
|
|
549
|
|
|
0.77
|
|
(1)
|
Pe
rcentages by geographic region are calculated based on the total held for investment consumer banking loans as of the end of the reported period.
|
(2)
|
Excluding the impact of Acquired Loans, the 30+ day delinquency rates, 90+ day delinquency rates, and the nonperforming loans rates for home loan portfolio were
4.15%
,
3.06%
and
4.94%
as of
March 31, 2015
; and
4.45%
,
3.21%
and
4.86%
as of
December 31, 2014
; and for total Consumer Banking were
5.02%
,
0.70%
and
0.98%
as of
March 31, 2015
; and
6.28%
,
0.89%
and
1.14%
as of
December 31, 2014
.
|
|
|
Three Months Ended March 31,
|
||||||||||||
|
|
2015
|
|
2014
|
||||||||||
(Dollars in millions)
|
|
Amount
|
|
Rate
(1)
|
|
Amount
|
|
Rate
(1)
|
||||||
Net charge-offs:
|
|
|
|
|
|
|
|
|
||||||
Auto
|
|
$
|
148
|
|
|
1.55
|
%
|
|
$
|
134
|
|
|
1.66
|
%
|
Home loan
|
|
2
|
|
|
0.03
|
|
|
5
|
|
|
0.06
|
|
||
Retail banking
|
|
9
|
|
|
0.96
|
|
|
9
|
|
|
0.95
|
|
||
Total consumer banking
|
|
$
|
159
|
|
|
0.89
|
|
|
$
|
148
|
|
|
0.84
|
|
(1)
|
Calculated for each loan category by dividing annualized net charge-offs for the period by average loans held for investment during the period. Excluding the impact of Acquired Loans, the net charge-off rates for our home loan portfolio and total consumer banking were
0.11%
and
1.30%
, respectively, for
the three months ended March 31, 2015
, compared to
0.29%
and
1.37%
, respectively, for
the three months ended March 31, 2014
.
|
|
81
|
Capital One Financial Corporation (COF)
|
|
|
March 31, 2015
|
|||||||||||||||||||
|
|
Loans
|
|
Acquired Loans
|
|
Total Home Loans
|
|||||||||||||||
(Dollars in millions)
|
|
Amount
|
|
% of
Total
(1)
|
|
Amount
|
|
% of
Total
(1)
|
|
Amount
|
|
% of
Total
(1)
|
|||||||||
Origination year:
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
< = 2006
|
|
$
|
2,706
|
|
|
9.4
|
%
|
|
$
|
5,520
|
|
|
19.1
|
%
|
|
$
|
8,226
|
|
|
28.5
|
%
|
2007
|
|
309
|
|
|
1.1
|
|
|
4,648
|
|
|
16.0
|
|
|
4,957
|
|
|
17.1
|
|
|||
2008
|
|
178
|
|
|
0.6
|
|
|
3,337
|
|
|
11.6
|
|
|
3,515
|
|
|
12.2
|
|
|||
2009
|
|
104
|
|
|
0.4
|
|
|
1,870
|
|
|
6.4
|
|
|
1,974
|
|
|
6.8
|
|
|||
2010
|
|
113
|
|
|
0.4
|
|
|
2,864
|
|
|
9.9
|
|
|
2,977
|
|
|
10.3
|
|
|||
2011
|
|
208
|
|
|
0.7
|
|
|
3,251
|
|
|
11.3
|
|
|
3,459
|
|
|
12.0
|
|
|||
2012
|
|
1,536
|
|
|
5.3
|
|
|
500
|
|
|
1.7
|
|
|
2,036
|
|
|
7.0
|
|
|||
2013
|
|
633
|
|
|
2.2
|
|
|
81
|
|
|
0.3
|
|
|
714
|
|
|
2.5
|
|
|||
2014
|
|
734
|
|
|
2.5
|
|
|
35
|
|
|
0.1
|
|
|
769
|
|
|
2.6
|
|
|||
2015
|
|
270
|
|
|
0.9
|
|
|
8
|
|
|
0.1
|
|
|
278
|
|
|
1.0
|
|
|||
Total
|
|
$
|
6,791
|
|
|
23.5
|
%
|
|
$
|
22,114
|
|
|
76.5
|
%
|
|
$
|
28,905
|
|
|
100.0
|
%
|
Geographic concentration:
(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
California
|
|
$
|
931
|
|
|
3.2
|
%
|
|
$
|
5,765
|
|
|
19.9
|
%
|
|
$
|
6,696
|
|
|
23.1
|
%
|
New York
|
|
1,363
|
|
|
4.7
|
|
|
1,024
|
|
|
3.5
|
|
|
2,387
|
|
|
8.2
|
|
|||
Illinois
|
|
93
|
|
|
0.3
|
|
|
1,699
|
|
|
5.9
|
|
|
1,792
|
|
|
6.2
|
|
|||
Maryland
|
|
464
|
|
|
1.6
|
|
|
1,210
|
|
|
4.2
|
|
|
1,674
|
|
|
5.8
|
|
|||
Virginia
|
|
395
|
|
|
1.3
|
|
|
1,105
|
|
|
3.9
|
|
|
1,500
|
|
|
5.2
|
|
|||
New Jersey
|
|
337
|
|
|
1.2
|
|
|
1,134
|
|
|
3.9
|
|
|
1,471
|
|
|
5.1
|
|
|||
Florida
|
|
162
|
|
|
0.6
|
|
|
1,155
|
|
|
4.0
|
|
|
1,317
|
|
|
4.6
|
|
|||
Arizona
|
|
90
|
|
|
0.3
|
|
|
1,165
|
|
|
4.0
|
|
|
1,255
|
|
|
4.3
|
|
|||
Louisiana
|
|
1,171
|
|
|
4.1
|
|
|
36
|
|
|
0.1
|
|
|
1,207
|
|
|
4.2
|
|
|||
Washington
|
|
105
|
|
|
0.4
|
|
|
985
|
|
|
3.4
|
|
|
1,090
|
|
|
3.8
|
|
|||
Other
|
|
1,680
|
|
|
5.8
|
|
|
6,836
|
|
|
23.7
|
|
|
8,516
|
|
|
29.5
|
|
|||
Total
|
|
$
|
6,791
|
|
|
23.5
|
%
|
|
$
|
22,114
|
|
|
76.5
|
%
|
|
$
|
28,905
|
|
|
100.0
|
%
|
Lien type:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
1
st
lien
|
|
$
|
5,776
|
|
|
20.0
|
%
|
|
$
|
21,766
|
|
|
75.3
|
%
|
|
$
|
27,542
|
|
|
95.3
|
%
|
2
nd
lien
|
|
1,015
|
|
|
3.5
|
|
|
348
|
|
|
1.2
|
|
|
1,363
|
|
|
4.7
|
|
|||
Total
|
|
$
|
6,791
|
|
|
23.5
|
%
|
|
$
|
22,114
|
|
|
76.5
|
%
|
|
$
|
28,905
|
|
|
100.0
|
%
|
Interest rate type:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Fixed rate
|
|
$
|
2,513
|
|
|
8.7
|
%
|
|
$
|
2,702
|
|
|
9.3
|
%
|
|
$
|
5,215
|
|
|
18.0
|
%
|
Adjustable rate
|
|
4,278
|
|
|
14.8
|
|
|
19,412
|
|
|
67.2
|
|
|
23,690
|
|
|
82.0
|
|
|||
Total
|
|
$
|
6,791
|
|
|
23.5
|
%
|
|
$
|
22,114
|
|
|
76.5
|
%
|
|
$
|
28,905
|
|
|
100.0
|
%
|
|
82
|
Capital One Financial Corporation (COF)
|
|
|
December 31, 2014
|
|||||||||||||||||||
|
|
Loans
|
|
Acquired Loans
|
|
Total Home Loans
|
|||||||||||||||
(Dollars in millions)
|
|
Amount
|
|
% of
Total
(1)
|
|
Amount
|
|
% of
Total
(1)
|
|
Amount
|
|
% of
Total
(1)
|
|||||||||
Origination year:
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
< = 2006
|
|
$
|
2,827
|
|
|
9.4
|
%
|
|
$
|
5,715
|
|
|
19.1
|
%
|
|
$
|
8,542
|
|
|
28.5
|
%
|
2007
|
|
320
|
|
|
1.1
|
|
|
4,766
|
|
|
15.8
|
|
|
5,086
|
|
|
16.9
|
|
|||
2008
|
|
187
|
|
|
0.6
|
|
|
3,494
|
|
|
11.7
|
|
|
3,681
|
|
|
12.3
|
|
|||
2009
|
|
107
|
|
|
0.4
|
|
|
1,999
|
|
|
6.6
|
|
|
2,106
|
|
|
7.0
|
|
|||
2010
|
|
120
|
|
|
0.4
|
|
|
3,108
|
|
|
10.3
|
|
|
3,228
|
|
|
10.7
|
|
|||
2011
|
|
221
|
|
|
0.7
|
|
|
3,507
|
|
|
11.7
|
|
|
3,728
|
|
|
12.4
|
|
|||
2012
|
|
1,620
|
|
|
5.4
|
|
|
533
|
|
|
1.8
|
|
|
2,153
|
|
|
7.2
|
|
|||
2013
|
|
661
|
|
|
2.2
|
|
|
85
|
|
|
0.3
|
|
|
746
|
|
|
2.5
|
|
|||
2014
|
|
731
|
|
|
2.4
|
|
|
34
|
|
|
0.1
|
|
|
765
|
|
|
2.5
|
|
|||
Total
|
|
$
|
6,794
|
|
|
22.6
|
%
|
|
$
|
23,241
|
|
|
77.4
|
%
|
|
$
|
30,035
|
|
|
100.0
|
%
|
Geographic concentration:
(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
California
|
|
$
|
924
|
|
|
3.1
|
%
|
|
$
|
6,019
|
|
|
20.0
|
%
|
|
$
|
6,943
|
|
|
23.1
|
%
|
New York
|
|
1,379
|
|
|
4.6
|
|
|
1,073
|
|
|
3.6
|
|
|
2,452
|
|
|
8.2
|
|
|||
Illinois
|
|
86
|
|
|
0.3
|
|
|
1,787
|
|
|
5.9
|
|
|
1,873
|
|
|
6.2
|
|
|||
Maryland
|
|
457
|
|
|
1.5
|
|
|
1,263
|
|
|
4.2
|
|
|
1,720
|
|
|
5.7
|
|
|||
Virginia
|
|
385
|
|
|
1.3
|
|
|
1,153
|
|
|
3.8
|
|
|
1,538
|
|
|
5.1
|
|
|||
New Jersey
|
|
341
|
|
|
1.1
|
|
|
1,188
|
|
|
4.0
|
|
|
1,529
|
|
|
5.1
|
|
|||
Florida
|
|
161
|
|
|
0.5
|
|
|
1,214
|
|
|
4.1
|
|
|
1,375
|
|
|
4.6
|
|
|||
Arizona
|
|
89
|
|
|
0.3
|
|
|
1,215
|
|
|
4.1
|
|
|
1,304
|
|
|
4.4
|
|
|||
Louisiana
|
|
1,205
|
|
|
4.0
|
|
|
38
|
|
|
0.1
|
|
|
1,243
|
|
|
4.1
|
|
|||
Washington
|
|
109
|
|
|
0.4
|
|
|
1,038
|
|
|
3.4
|
|
|
1,147
|
|
|
3.8
|
|
|||
Other
|
|
1,658
|
|
|
5.5
|
|
|
7,253
|
|
|
24.2
|
|
|
8,911
|
|
|
29.7
|
|
|||
Total
|
|
$
|
6,794
|
|
|
22.6
|
%
|
|
$
|
23,241
|
|
|
77.4
|
%
|
|
$
|
30,035
|
|
|
100.0
|
%
|
Lien type:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
1
st
lien
|
|
$
|
5,756
|
|
|
19.2
|
%
|
|
$
|
22,883
|
|
|
76.2
|
%
|
|
$
|
28,639
|
|
|
95.4
|
%
|
2
nd
lien
|
|
1,038
|
|
|
3.4
|
|
|
358
|
|
|
1.2
|
|
|
1,396
|
|
|
4.6
|
|
|||
Total
|
|
$
|
6,794
|
|
|
22.6
|
%
|
|
$
|
23,241
|
|
|
77.4
|
%
|
|
$
|
30,035
|
|
|
100.0
|
%
|
Interest rate type:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Fixed rate
|
|
$
|
2,446
|
|
|
8.1
|
%
|
|
$
|
2,840
|
|
|
9.5
|
%
|
|
$
|
5,286
|
|
|
17.6
|
%
|
Adjustable rate
|
|
4,348
|
|
|
14.5
|
|
|
20,401
|
|
|
67.9
|
|
|
24,749
|
|
|
82.4
|
|
|||
Total
|
|
$
|
6,794
|
|
|
22.6
|
%
|
|
$
|
23,241
|
|
|
77.4
|
%
|
|
$
|
30,035
|
|
|
100.0
|
%
|
(1)
|
Percentages within each risk category are calculated based on total home loans held for investment.
|
(2)
|
The Acquired Loans origination balances in the years subsequent to 2012 are related to refinancing of previously acquired home loans.
|
(3)
|
Represents the ten states in which we have the highest concentration of home loans.
|
|
83
|
Capital One Financial Corporation (COF)
|
•
|
Noncriticized:
Loans that have not been designated as criticized, frequently referred to as “pass” loans.
|
•
|
Criticized performing:
Loans in which the financial condition of the obligor is stressed, affecting earnings, cash flows or collateral values. The borrower currently has adequate capacity to meet near-term obligations; however, the stress, left unabated, may result in deterioration of the repayment prospects at some future date.
|
•
|
Criticized nonperforming:
Loans that are not adequately protected by the current net worth and paying capacity of the obligor or the collateral pledged, if any. Loans classified as criticized nonperforming have a well-defined weakness, or weaknesses, which jeopardize the repayment of the debt. These loans are characterized by the distinct possibility that we will sustain a credit loss if the deficiencies are not corrected and are generally placed on nonaccrual status.
|
|
|
March 31, 2015
|
||||||||||||||||||||||||||
(Dollars in millions)
|
|
Commercial
and
Multifamily
Real Estate
|
|
% of
Total
(1)
|
|
Commercial
and
Industrial
|
|
% of
Total
(1)
|
|
Small-ticket
Commercial
Real Estate
|
|
% of
Total
(1)
|
|
Total
Commercial Banking
|
|
% of
Total
(1)
|
||||||||||||
Geographic concentration:
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Northeast
|
|
$
|
14,677
|
|
|
64.3
|
%
|
|
$
|
6,448
|
|
|
23.7
|
%
|
|
$
|
452
|
|
|
61.2
|
%
|
|
$
|
21,577
|
|
|
42.5
|
%
|
Mid-Atlantic
|
|
2,578
|
|
|
11.3
|
|
|
2,138
|
|
|
7.9
|
|
|
28
|
|
|
3.8
|
|
|
4,744
|
|
|
9.3
|
|
||||
South
|
|
3,375
|
|
|
14.8
|
|
|
12,133
|
|
|
44.7
|
|
|
46
|
|
|
6.2
|
|
|
15,554
|
|
|
30.7
|
|
||||
Other
|
|
2,201
|
|
|
9.6
|
|
|
6,453
|
|
|
23.7
|
|
|
212
|
|
|
28.8
|
|
|
8,866
|
|
|
17.5
|
|
||||
Total
|
|
$
|
22,831
|
|
|
100.0
|
%
|
|
$
|
27,172
|
|
|
100.0
|
%
|
|
$
|
738
|
|
|
100.0
|
%
|
|
$
|
50,741
|
|
|
100.0
|
%
|
Internal risk rating:
(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Noncriticized
|
|
$
|
22,283
|
|
|
97.6
|
%
|
|
$
|
25,933
|
|
|
95.4
|
%
|
|
$
|
722
|
|
|
97.8
|
%
|
|
$
|
48,938
|
|
|
96.5
|
%
|
Criticized performing
|
|
508
|
|
|
2.2
|
|
|
1,133
|
|
|
4.2
|
|
|
4
|
|
|
0.6
|
|
|
1,645
|
|
|
3.2
|
|
||||
Criticized nonperforming
|
|
40
|
|
|
0.2
|
|
|
106
|
|
|
0.4
|
|
|
12
|
|
|
1.6
|
|
|
158
|
|
|
0.3
|
|
||||
Total
|
|
$
|
22,831
|
|
|
100.0
|
%
|
|
$
|
27,172
|
|
|
100.0
|
%
|
|
$
|
738
|
|
|
100.0
|
%
|
|
$
|
50,741
|
|
|
100.0
|
%
|
|
84
|
Capital One Financial Corporation (COF)
|
|
|
December 31, 2014
|
||||||||||||||||||||||||||
(Dollars in millions)
|
|
Commercial
and
Multifamily
Real Estate
|
|
% of
Total
(1)
|
|
Commercial
and
Industrial
|
|
% of
Total
(1)
|
|
Small-ticket
Commercial
Real Estate
|
|
% of
Total
(1)
|
|
Total
Commercial Banking
|
|
% of
Total
(1)
|
||||||||||||
Geographic concentration:
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Northeast
|
|
$
|
15,135
|
|
|
65.4
|
%
|
|
$
|
6,384
|
|
|
23.7
|
%
|
|
$
|
478
|
|
|
61.2
|
%
|
|
$
|
21,997
|
|
|
43.2
|
%
|
Mid-Atlantic
|
|
2,491
|
|
|
10.8
|
|
|
2,121
|
|
|
7.9
|
|
|
30
|
|
|
3.8
|
|
|
4,642
|
|
|
9.1
|
|
||||
South
|
|
3,070
|
|
|
13.3
|
|
|
12,310
|
|
|
45.6
|
|
|
48
|
|
|
6.2
|
|
|
15,428
|
|
|
30.3
|
|
||||
Other
|
|
2,441
|
|
|
10.5
|
|
|
6,157
|
|
|
22.8
|
|
|
225
|
|
|
28.8
|
|
|
8,823
|
|
|
17.4
|
|
||||
Total
|
|
$
|
23,137
|
|
|
100.0
|
%
|
|
$
|
26,972
|
|
|
100.0
|
%
|
|
$
|
781
|
|
|
100.0
|
%
|
|
$
|
50,890
|
|
|
100.0
|
%
|
Internal risk rating:
(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Noncriticized
|
|
$
|
22,535
|
|
|
97.4
|
%
|
|
$
|
25,982
|
|
|
96.3
|
%
|
|
$
|
767
|
|
|
98.2
|
%
|
|
$
|
49,284
|
|
|
96.9
|
%
|
Criticized performing
|
|
540
|
|
|
2.3
|
|
|
884
|
|
|
3.3
|
|
|
7
|
|
|
0.9
|
|
|
1,431
|
|
|
2.8
|
|
||||
Criticized nonperforming
|
|
62
|
|
|
0.3
|
|
|
106
|
|
|
0.4
|
|
|
7
|
|
|
0.9
|
|
|
175
|
|
|
0.3
|
|
||||
Total
|
|
$
|
23,137
|
|
|
100.0
|
%
|
|
$
|
26,972
|
|
|
100.0
|
%
|
|
$
|
781
|
|
|
100.0
|
%
|
|
$
|
50,890
|
|
|
100.0
|
%
|
(1)
|
Percentages calculated based on total held for investment commercial loans in each respective loan category as of the end of the reported period.
|
(2)
|
Northeast consists of CT, ME, MA, NH, NJ, NY, PA and VT. Mid-Atlantic consists of DE,
DC, MD, VA and WV. South consists of AL, AR, FL, GA, KY, LA, MS, MO, NC, SC, TN and TX.
|
(3)
|
Criticized exposures correspond to the “Special Mention,” “Substandard” and “Doubtful” asset c
ategories defined by banking regulatory authorities.
|
|
|
March 31, 2015
|
||||||||||||||||||||||
(Dollars in millions)
|
|
With an
Allowance
|
|
Without
an
Allowance
|
|
Total
Recorded
Investment
|
|
Related
Allowance
|
|
Net
Recorded
Investment
|
|
Unpaid
Principal
Balance
|
||||||||||||
Credit Card:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Domestic credit card
|
|
$
|
538
|
|
|
$
|
0
|
|
|
$
|
538
|
|
|
$
|
143
|
|
|
$
|
395
|
|
|
$
|
523
|
|
International credit card
|
|
135
|
|
|
0
|
|
|
135
|
|
|
67
|
|
|
68
|
|
|
130
|
|
||||||
Total credit card
(2)
|
|
673
|
|
|
0
|
|
|
673
|
|
|
210
|
|
|
463
|
|
|
653
|
|
||||||
Consumer Banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Auto
(3)
|
|
249
|
|
|
204
|
|
|
453
|
|
|
22
|
|
|
431
|
|
|
717
|
|
||||||
Home loan
|
|
219
|
|
|
146
|
|
|
365
|
|
|
16
|
|
|
349
|
|
|
467
|
|
||||||
Retail banking
|
|
46
|
|
|
8
|
|
|
54
|
|
|
9
|
|
|
45
|
|
|
57
|
|
||||||
Total consumer banking
|
|
514
|
|
|
358
|
|
|
872
|
|
|
47
|
|
|
825
|
|
|
1,241
|
|
||||||
Commercial Banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial and multifamily real estate
|
|
107
|
|
|
13
|
|
|
120
|
|
|
19
|
|
|
101
|
|
|
134
|
|
||||||
Commercial and industrial
|
|
144
|
|
|
67
|
|
|
211
|
|
|
13
|
|
|
198
|
|
|
231
|
|
||||||
Total commercial lending
|
|
251
|
|
|
80
|
|
|
331
|
|
|
32
|
|
|
299
|
|
|
365
|
|
||||||
Small-ticket commercial real estate
|
|
4
|
|
|
9
|
|
|
13
|
|
|
0
|
|
|
13
|
|
|
15
|
|
||||||
Total commercial banking
|
|
255
|
|
|
89
|
|
|
344
|
|
|
32
|
|
|
312
|
|
|
380
|
|
||||||
Total
|
|
$
|
1,442
|
|
|
$
|
447
|
|
|
$
|
1,889
|
|
|
$
|
289
|
|
|
$
|
1,600
|
|
|
$
|
2,274
|
|
|
85
|
Capital One Financial Corporation (COF)
|
|
|
December 31, 2014
|
||||||||||||||||||||||
(Dollars in millions)
|
|
With an
Allowance
|
|
Without
an
Allowance
|
|
Total
Recorded
Investment
|
|
Related
Allowance
|
|
Net
Recorded
Investment
|
|
Unpaid
Principal
Balance
|
||||||||||||
Credit Card:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Domestic credit card
|
|
$
|
546
|
|
|
$
|
0
|
|
|
$
|
546
|
|
|
$
|
145
|
|
|
$
|
401
|
|
|
$
|
531
|
|
International credit card
|
|
146
|
|
|
0
|
|
|
146
|
|
|
74
|
|
|
72
|
|
|
141
|
|
||||||
Total credit card
(2)
|
|
692
|
|
|
0
|
|
|
692
|
|
|
219
|
|
|
473
|
|
|
672
|
|
||||||
Consumer Banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Auto
(3)
|
|
230
|
|
|
205
|
|
|
435
|
|
|
19
|
|
|
416
|
|
|
694
|
|
||||||
Home loan
|
|
218
|
|
|
149
|
|
|
367
|
|
|
17
|
|
|
350
|
|
|
472
|
|
||||||
Retail banking
|
|
45
|
|
|
5
|
|
|
50
|
|
|
6
|
|
|
44
|
|
|
52
|
|
||||||
Total consumer banking
|
|
493
|
|
|
359
|
|
|
852
|
|
|
42
|
|
|
810
|
|
|
1,218
|
|
||||||
Commercial Banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial and multifamily real estate
|
|
120
|
|
|
26
|
|
|
146
|
|
|
23
|
|
|
123
|
|
|
163
|
|
||||||
Commercial and industrial
|
|
161
|
|
|
55
|
|
|
216
|
|
|
16
|
|
|
200
|
|
|
233
|
|
||||||
Total commercial lending
|
|
281
|
|
|
81
|
|
|
362
|
|
|
39
|
|
|
323
|
|
|
396
|
|
||||||
Small-ticket commercial real estate
|
|
3
|
|
|
5
|
|
|
8
|
|
|
0
|
|
|
8
|
|
|
10
|
|
||||||
Total commercial banking
|
|
284
|
|
|
86
|
|
|
370
|
|
|
39
|
|
|
331
|
|
|
406
|
|
||||||
Total
|
|
$
|
1,469
|
|
|
$
|
445
|
|
|
$
|
1,914
|
|
|
$
|
300
|
|
|
$
|
1,614
|
|
|
$
|
2,296
|
|
|
|
Three Months Ended March 31,
|
||||||||||||||
|
|
2015
|
|
2014
|
||||||||||||
(Dollars in millions)
|
|
Average
Recorded
Investment
|
|
Interest
Income
Recognized
|
|
Average
Recorded
Investment
|
|
Interest
Income
Recognized
|
||||||||
Credit Card:
|
|
|
|
|
|
|
|
|
||||||||
Domestic credit card
|
|
$
|
542
|
|
|
$
|
14
|
|
|
$
|
596
|
|
|
$
|
15
|
|
International credit card
|
|
141
|
|
|
2
|
|
|
169
|
|
|
3
|
|
||||
Total credit card
(2)
|
|
683
|
|
|
16
|
|
|
765
|
|
|
18
|
|
||||
Consumer Banking:
|
|
|
|
|
|
|
|
|
||||||||
Auto
(3)
|
|
444
|
|
|
21
|
|
|
363
|
|
|
17
|
|
||||
Home loan
|
|
366
|
|
|
1
|
|
|
402
|
|
|
1
|
|
||||
Retail banking
|
|
52
|
|
|
0
|
|
|
83
|
|
|
1
|
|
||||
Total consumer banking
|
|
862
|
|
|
22
|
|
|
848
|
|
|
19
|
|
||||
Commercial Banking:
|
|
|
|
|
|
|
|
|
||||||||
Commercial and multifamily real estate
|
|
133
|
|
|
1
|
|
|
169
|
|
|
2
|
|
||||
Commercial and industrial
|
|
213
|
|
|
1
|
|
|
179
|
|
|
1
|
|
||||
Total commercial lending
|
|
346
|
|
|
2
|
|
|
348
|
|
|
3
|
|
||||
Small-ticket commercial real estate
|
|
10
|
|
|
0
|
|
|
7
|
|
|
0
|
|
||||
Total commercial banking
|
|
356
|
|
|
2
|
|
|
355
|
|
|
3
|
|
||||
Total
|
|
$
|
1,901
|
|
|
$
|
40
|
|
|
$
|
1,968
|
|
|
$
|
40
|
|
(1)
|
Impaired loans
include loans modified in TDRs, all nonperforming commercial loans, and nonperforming home loans with a specific impairment.
|
(2)
|
Credit card loans include finance charges and fees.
|
(3)
|
Although auto loans from loan recovery inventory are not reported in our loans held for investment, they are included as impaired loans above since they are reported as TD
Rs.
|
|
86
|
Capital One Financial Corporation (COF)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Loans Modified (1) |
|
Three Months Ended March 31, 2015
|
||||||||||||||||||
|
|
Reduced Interest Rate
|
|
Term Extension
|
|
Balance Reduction
|
||||||||||||||||
(Dollars in millions)
|
|
% of
TDR Activity (2)(3) |
|
Average
Rate Reduction (4) |
|
% of
TDR Activity (3)(5) |
|
Average
Term Extension (Months) (6) |
|
% of
TDR Activity (3)(7) |
|
Gross
Balance Reduction (8) |
||||||||||
Credit Card:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Domestic credit card
|
|
$
|
72
|
|
|
100
|
%
|
|
12.13
|
%
|
|
0
|
%
|
|
0
|
|
0
|
%
|
|
$
|
0
|
|
International credit card
|
|
32
|
|
|
100
|
|
|
25.79
|
|
|
0
|
|
|
0
|
|
0
|
|
|
0
|
|
||
Total credit card
|
|
104
|
|
|
100
|
|
|
16.39
|
|
|
0
|
|
|
0
|
|
0
|
|
|
0
|
|
||
Consumer Banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Auto
|
|
88
|
|
|
41
|
|
|
1.71
|
|
|
71
|
|
|
9
|
|
28
|
|
|
22
|
|
||
Home loan
|
|
7
|
|
|
67
|
|
|
2.85
|
|
|
66
|
|
|
171
|
|
0
|
|
|
0
|
|
||
Retail banking
|
|
5
|
|
|
61
|
|
|
9.36
|
|
|
91
|
|
|
4
|
|
0
|
|
|
0
|
|
||
Total consumer banking
|
|
100
|
|
|
44
|
|
|
2.36
|
|
|
72
|
|
|
20
|
|
24
|
|
|
22
|
|
||
Commercial Banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Commercial and multifamily real estate
|
|
3
|
|
|
0
|
|
|
0.00
|
|
|
100
|
|
|
35
|
|
77
|
|
|
1
|
|
||
Commercial and industrial
|
|
21
|
|
|
0
|
|
|
2.02
|
|
|
3
|
|
|
7
|
|
0
|
|
|
0
|
|
||
Total commercial lending
|
|
24
|
|
|
0
|
|
|
2.02
|
|
|
13
|
|
|
29
|
|
8
|
|
|
1
|
|
||
Small-ticket commercial real estate
|
|
0
|
|
|
0
|
|
|
0.00
|
|
|
0
|
|
|
0
|
|
0
|
|
|
0
|
|
||
Total commercial banking
|
|
24
|
|
|
0
|
|
|
2.02
|
|
|
13
|
|
|
29
|
|
8
|
|
|
1
|
|
||
Total
|
|
$
|
228
|
|
|
65
|
|
|
12.19
|
|
|
33
|
|
|
20
|
|
12
|
|
|
$
|
23
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
87
|
Capital One Financial Corporation (COF)
|
|
|
Total
Loans
Modified
(1)
|
|
Three Months Ended March 31, 2014
|
||||||||||||||||||
|
Reduced Interest Rate
|
|
Term Extension
|
|
Balance Reduction
|
|||||||||||||||||
(Dollars in millions)
|
% of
TDR
Activity
(2)(3)
|
|
Average
Rate
Reduction
(4)
|
|
% of
TDR
Activity
(3)(5)
|
|
Average
Term
Extension
(Months)
(6)
|
|
% of
TDR
Activity
(3)(7)
|
|
Gross
Balance
Reduction
(8)
|
|||||||||||
Credit Card:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Domestic credit card
|
|
$
|
67
|
|
|
100
|
%
|
|
11.50
|
%
|
|
0
|
%
|
|
0
|
|
0
|
%
|
|
$
|
0
|
|
International credit card
|
|
43
|
|
|
100
|
|
|
25.20
|
|
|
0
|
|
|
0
|
|
0
|
|
|
0
|
|
||
Total credit card
|
|
110
|
|
|
100
|
|
|
16.82
|
|
|
0
|
|
|
0
|
|
0
|
|
|
0
|
|
||
Consumer Banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Auto
|
|
77
|
|
|
40
|
|
|
0.94
|
|
|
67
|
|
|
9
|
|
32
|
|
|
22
|
|
||
Home loan
|
|
8
|
|
|
19
|
|
|
1.25
|
|
|
30
|
|
|
138
|
|
13
|
|
|
1
|
|
||
Retail banking
|
|
6
|
|
|
8
|
|
|
4.01
|
|
|
59
|
|
|
6
|
|
0
|
|
|
0
|
|
||
Total consumer banking
|
|
91
|
|
|
36
|
|
|
1.00
|
|
|
63
|
|
|
14
|
|
29
|
|
|
23
|
|
||
Commercial Banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Commercial and multifamily real estate
|
|
62
|
|
|
33
|
|
|
1.37
|
|
|
100
|
|
|
8
|
|
0
|
|
|
0
|
|
||
Commercial and industrial
|
|
1
|
|
|
0
|
|
|
0.00
|
|
|
64
|
|
|
11
|
|
0
|
|
|
0
|
|
||
Total commercial lending
|
|
63
|
|
|
33
|
|
|
1.37
|
|
|
99
|
|
|
8
|
|
0
|
|
|
0
|
|
||
Small-ticket commercial real estate
|
|
0
|
|
|
0
|
|
|
0.00
|
|
|
0
|
|
|
0
|
|
0
|
|
|
0
|
|
||
Total commercial banking
|
|
63
|
|
|
33
|
|
|
1.37
|
|
|
99
|
|
|
8
|
|
0
|
|
|
0
|
|
||
Total
|
|
$
|
264
|
|
|
62
|
|
|
11.70
|
|
|
46
|
|
|
11
|
|
10
|
|
|
$
|
23
|
|
(1)
|
Represents total loans modified and accounted for as TDRs during the period. Paydowns, net charge-offs and any other changes in the loan carrying value subsequent to the loan entering TDR status are not reflected.
|
(2)
|
Represents percentage of loans modified and accounted for as TDRs during the period that were granted a reduced interest rate.
|
(3)
|
Due to multiple concessions granted to some troubled borrowers, percentages may total more than 100% for certain loan types.
|
(4)
|
Represents weighted average interest rate reduction for those loans that received an interest rate concession.
|
(5)
|
Represents percentage of loans modified and accounted for as TDRs during the period that were granted a maturity date extension.
|
(6)
|
Represents weighted average change in maturity date for those loans that received a maturity date extension.
|
(7)
|
Represents percentage of loans modified and accounted for as TDRs during the period that were granted forgiveness or forbearance of a portion of their balance.
|
(8)
|
Total amount represents the gross balance forgiven. For loans modified in bankruptcy, the gross balance reduction represents collateral value write downs associated with the discharge of the borrower’s obligations.
|
|
88
|
Capital One Financial Corporation (COF)
|
|
|
Three Months Ended March 31,
|
||||||||||
|
|
2015
|
|
2014
|
||||||||
(Dollars in millions)
|
|
Number of
Contracts |
|
Amount
|
|
Number of
Contracts |
|
Amount
|
||||
Credit Card:
|
|
|
|
|
|
|
|
|
||||
Domestic credit card
|
|
9,667
|
|
$
|
16
|
|
|
11,061
|
|
$
|
16
|
|
International credit card
(1)
|
|
8,548
|
|
20
|
|
|
10,521
|
|
30
|
|
||
Total credit card
|
|
18,215
|
|
36
|
|
|
21,582
|
|
46
|
|
||
Consumer Banking:
|
|
|
|
|
|
|
|
|
||||
Auto
|
|
1,747
|
|
20
|
|
|
1,322
|
|
13
|
|
||
Home loan
|
|
5
|
|
0
|
|
|
6
|
|
2
|
|
||
Retail banking
|
|
10
|
|
1
|
|
|
25
|
|
7
|
|
||
Total consumer banking
|
|
1,762
|
|
21
|
|
|
1,353
|
|
22
|
|
||
Commercial Banking:
|
|
|
|
|
|
|
|
|
||||
Commercial and multifamily real estate
|
|
0
|
|
0
|
|
|
3
|
|
6
|
|
||
Commercial and industrial
|
|
0
|
|
0
|
|
|
1
|
|
0
|
|
||
Total commercial lending
|
|
0
|
|
0
|
|
|
4
|
|
6
|
|
||
Small-ticket commercial real estate
|
|
0
|
|
0
|
|
|
6
|
|
2
|
|
||
Total commercial banking
|
|
0
|
|
0
|
|
|
10
|
|
8
|
|
||
Total
|
|
19,977
|
|
$
|
57
|
|
|
22,945
|
|
$
|
76
|
|
|
|
|
|
|
|
|
|
|
(1)
|
The regulato
ry regime in the U.K. requires U.K. credit card businesses to accept payment plan proposals even when the proposed payments are less than the contractual minimum amount. As a result, loans entering long-term TDR payment programs in the U.K. typically continue to age and ultimately charge-off even when fully in compliance with the TDR program terms.
|
|
|
March 31, 2015
|
|
December 31, 2014
|
||||||||||||||||||||
(Dollars in millions)
|
|
Total
|
|
Impaired
Loans
|
|
Non-Impaired
Loans
|
|
Total
|
|
Impaired
Loans
|
|
Non-Impaired
Loans
|
||||||||||||
Outstanding balance
|
|
$
|
24,037
|
|
|
$
|
4,184
|
|
|
$
|
19,853
|
|
|
$
|
25,201
|
|
|
$
|
4,279
|
|
|
$
|
20,922
|
|
Carrying value
(1)
|
|
22,343
|
|
|
2,808
|
|
|
19,535
|
|
|
23,519
|
|
|
2,882
|
|
|
20,637
|
|
(1)
|
Includes
$34 million
and
$27 million
of allowance for loan and lease losses for these loans as of
March 31, 2015
and
December 31, 2014
, respectively. We recorded a
$7 million
provision and
$2 million
release of allowance for credit losses for the three months ended
March 31, 2015
and
2014
, respectively, for certain pools of Acquired Loans.
|
|
89
|
Capital One Financial Corporation (COF)
|
(Dollars in millions)
|
|
Total
Loans
|
|
Impaired
Loans
|
|
Non-Impaired
Loans
|
||||||
Accretable yield as of December 31, 2014
|
|
$
|
4,653
|
|
|
$
|
1,485
|
|
|
$
|
3,168
|
|
Accretion recognized in earnings
|
|
(237
|
)
|
|
(87
|
)
|
|
(150
|
)
|
|||
Reclassifications from (to) nonaccretable difference for loans with changing cash flows
(1)
|
|
35
|
|
|
45
|
|
|
(10
|
)
|
|||
Changes in accretable yield for non-credit related changes in expected cash flows
(2)
|
|
110
|
|
|
84
|
|
|
26
|
|
|||
Accretable yield as of March 31, 2015
|
|
$
|
4,561
|
|
|
$
|
1,527
|
|
|
$
|
3,034
|
|
(1)
|
Represents changes in accretable yield for those loans in pools that are driven primarily by credit performance.
|
(2)
|
Represents changes in accretable yield for those loans in pools that are driven primarily by changes in actual and estimated prepayments.
|
|
90
|
Capital One Financial Corporation (COF)
|
NOTE 5—ALLOWANCE FOR LOAN AND LEASE LOSSES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit
Card |
|
Consumer Banking
|
|
Commercial Banking
|
|
Other
(1)
|
|
Total
Allowance |
|
Unfunded
Lending Commitments Reserve |
|
Combined
Allowance & Unfunded Reserve |
||||||||||||||||||||||||||
(Dollars in millions)
|
|
Auto
|
|
Home
Loan |
|
Retail
Banking |
|
Total
Consumer
Banking
|
|
|||||||||||||||||||||||||||||||
Balance as of December 31, 2014
|
|
$
|
3,204
|
|
|
$
|
661
|
|
|
$
|
62
|
|
|
$
|
56
|
|
|
$
|
779
|
|
|
$
|
395
|
|
|
$
|
5
|
|
|
$
|
4,383
|
|
|
$
|
113
|
|
|
$
|
4,496
|
|
Provision for credit losses
|
|
669
|
|
|
184
|
|
|
8
|
|
|
14
|
|
|
206
|
|
|
52
|
|
|
0
|
|
|
927
|
|
|
8
|
|
|
935
|
|
||||||||||
Charge-offs
|
|
(1,022
|
)
|
|
(233
|
)
|
|
(4
|
)
|
|
(13
|
)
|
|
(250
|
)
|
|
(9
|
)
|
|
(3
|
)
|
|
(1,284
|
)
|
|
0
|
|
|
(1,284
|
)
|
||||||||||
Recoveries
|
|
303
|
|
|
85
|
|
|
2
|
|
|
4
|
|
|
91
|
|
|
6
|
|
|
3
|
|
|
403
|
|
|
0
|
|
|
403
|
|
||||||||||
Net charge-offs
|
|
(719
|
)
|
|
(148
|
)
|
|
(2
|
)
|
|
(9
|
)
|
|
(159
|
)
|
|
(3
|
)
|
|
0
|
|
|
(881
|
)
|
|
0
|
|
|
(881
|
)
|
||||||||||
Other changes
(2)
|
|
(24
|
)
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
(24
|
)
|
|
0
|
|
|
(24
|
)
|
||||||||||
Balance as of March 31, 2015
|
|
$
|
3,130
|
|
|
$
|
697
|
|
|
$
|
68
|
|
|
$
|
61
|
|
|
$
|
826
|
|
|
$
|
444
|
|
|
$
|
5
|
|
|
$
|
4,405
|
|
|
$
|
121
|
|
|
$
|
4,526
|
|
|
91
|
Capital One Financial Corporation (COF)
|
|
|
Credit
Card |
|
Consumer Banking
|
|
Commercial Banking
|
|
Other
(1)
|
|
Total
Allowance |
|
Unfunded
Lending Commitments Reserve |
|
Combined
Allowance & Unfunded Reserve |
||||||||||||||||||||||||||
(Dollars in millions)
|
|
Auto
|
|
Home
Loan |
|
Retail
Banking |
|
Total
Consumer
Banking
|
|
|||||||||||||||||||||||||||||||
Balance as of December 31, 2013
|
|
$
|
3,214
|
|
|
$
|
606
|
|
|
$
|
83
|
|
|
$
|
63
|
|
|
$
|
752
|
|
|
$
|
338
|
|
|
$
|
11
|
|
|
$
|
4,315
|
|
|
$
|
87
|
|
|
$
|
4,402
|
|
Provision (benefit) for credit losses
|
|
558
|
|
|
136
|
|
|
(6
|
)
|
|
10
|
|
|
140
|
|
|
28
|
|
|
(3
|
)
|
|
723
|
|
|
12
|
|
|
735
|
|
||||||||||
Charge-offs
|
|
(1,095
|
)
|
|
(205
|
)
|
|
(11
|
)
|
|
(15
|
)
|
|
(231
|
)
|
|
(7
|
)
|
|
(2
|
)
|
|
(1,335
|
)
|
|
0
|
|
|
(1,335
|
)
|
||||||||||
Recoveries
|
|
315
|
|
|
71
|
|
|
6
|
|
|
6
|
|
|
83
|
|
|
3
|
|
|
3
|
|
|
404
|
|
|
0
|
|
|
404
|
|
||||||||||
Net charge-offs
|
|
(780
|
)
|
|
(134
|
)
|
|
(5
|
)
|
|
(9
|
)
|
|
(148
|
)
|
|
(4
|
)
|
|
1
|
|
|
(931
|
)
|
|
0
|
|
|
(931
|
)
|
||||||||||
Other changes
(2)
|
|
(8
|
)
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
(1
|
)
|
|
(9
|
)
|
|
0
|
|
|
(9
|
)
|
||||||||||
Balance as of March 31, 2014
|
|
$
|
2,984
|
|
|
$
|
608
|
|
|
$
|
72
|
|
|
$
|
64
|
|
|
$
|
744
|
|
|
$
|
362
|
|
|
$
|
8
|
|
|
$
|
4,098
|
|
|
$
|
99
|
|
|
$
|
4,197
|
|
(1)
|
Other consists of our discontinued GreenPoint mortgage operations loan portfolio and our community redevelopment loan portfolio.
|
(2)
|
Represents foreign currency translation adjustments and the net impact of loan transfers and sales.
|
|
|
March 31, 2015
|
||||||||||||||||||||||||||||||
|
|
|
|
Consumer Banking
|
|
|
|
|
|
|
||||||||||||||||||||||
(Dollars in millions)
|
|
Credit
Card
|
|
Auto
|
|
Home
Loan
|
|
Retail
Banking
|
|
Total
Consumer Banking
|
|
Commercial Banking
|
|
Other
|
|
Total
|
||||||||||||||||
Allowance for loan and lease losses:
|
||||||||||||||||||||||||||||||||
Collectively evaluated
(1)
|
|
$
|
2,920
|
|
|
$
|
675
|
|
|
$
|
19
|
|
|
$
|
52
|
|
|
$
|
746
|
|
|
$
|
411
|
|
|
$
|
5
|
|
|
$
|
4,082
|
|
Asset-specific
(2)
|
|
210
|
|
|
22
|
|
|
16
|
|
|
9
|
|
|
47
|
|
|
32
|
|
|
0
|
|
|
289
|
|
||||||||
Acquired Loans
(3)
|
|
0
|
|
|
0
|
|
|
33
|
|
|
0
|
|
|
33
|
|
|
1
|
|
|
0
|
|
|
34
|
|
||||||||
Total allowance for loan and lease losses
|
|
$
|
3,130
|
|
|
$
|
697
|
|
|
$
|
68
|
|
|
$
|
61
|
|
|
$
|
826
|
|
|
$
|
444
|
|
|
$
|
5
|
|
|
$
|
4,405
|
|
Loans held for investment:
|
||||||||||||||||||||||||||||||||
Collectively evaluated
(1)
|
|
$
|
81,060
|
|
|
$
|
38,688
|
|
|
$
|
6,426
|
|
|
$
|
3,444
|
|
|
$
|
48,558
|
|
|
$
|
50,237
|
|
|
$
|
104
|
|
|
$
|
179,959
|
|
Asset-specific
(2)
|
|
673
|
|
|
249
|
|
|
365
|
|
|
54
|
|
|
668
|
|
|
344
|
|
|
0
|
|
|
1,685
|
|
||||||||
Acquired Loans
(3)
|
|
21
|
|
|
0
|
|
|
22,114
|
|
|
39
|
|
|
22,153
|
|
|
160
|
|
|
0
|
|
|
22,334
|
|
||||||||
Total loans held for investment
|
|
$
|
81,754
|
|
|
$
|
38,937
|
|
|
$
|
28,905
|
|
|
$
|
3,537
|
|
|
$
|
71,379
|
|
|
$
|
50,741
|
|
|
$
|
104
|
|
|
$
|
203,978
|
|
Allowance as a percentage of period-end loans held for investment
|
|
3.83
|
%
|
|
1.79
|
%
|
|
0.23
|
%
|
|
1.74
|
%
|
|
1.16
|
%
|
|
0.87
|
%
|
|
4.48
|
%
|
|
2.16
|
%
|
|
92
|
Capital One Financial Corporation (COF)
|
|
|
December 31, 2014
|
||||||||||||||||||||||||||||||
|
|
|
|
Consumer Banking
|
|
|
|
|
|
|
||||||||||||||||||||||
(Dollars in millions)
|
|
Credit
Card |
|
Auto
|
|
Home
Loan |
|
Retail
Banking |
|
Total
Consumer Banking |
|
Commercial Banking
|
|
Other
|
|
Total
|
||||||||||||||||
Allowance for loan and lease losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Collectively evaluated
(1)
|
|
$
|
2,985
|
|
|
$
|
642
|
|
|
$
|
18
|
|
|
$
|
50
|
|
|
$
|
710
|
|
|
$
|
356
|
|
|
$
|
5
|
|
|
$
|
4,056
|
|
Asset-specific
(2)
|
|
219
|
|
|
19
|
|
|
17
|
|
|
6
|
|
|
42
|
|
|
39
|
|
|
0
|
|
|
300
|
|
||||||||
Acquired Loans
(3)
|
|
0
|
|
|
0
|
|
|
27
|
|
|
0
|
|
|
27
|
|
|
0
|
|
|
0
|
|
|
27
|
|
||||||||
Total allowance for loan and lease losses
|
|
$
|
3,204
|
|
|
$
|
661
|
|
|
$
|
62
|
|
|
$
|
56
|
|
|
$
|
779
|
|
|
$
|
395
|
|
|
$
|
5
|
|
|
$
|
4,383
|
|
Loans held for investment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Collectively evaluated
(1)
|
|
$
|
85,161
|
|
|
$
|
37,594
|
|
|
$
|
6,427
|
|
|
$
|
3,486
|
|
|
$
|
47,507
|
|
|
$
|
50,328
|
|
|
$
|
111
|
|
|
$
|
183,107
|
|
Asset-specific
(2)
|
|
692
|
|
|
230
|
|
|
367
|
|
|
50
|
|
|
647
|
|
|
370
|
|
|
0
|
|
|
1,709
|
|
||||||||
Acquired Loans
(3)
|
|
23
|
|
|
0
|
|
|
23,241
|
|
|
44
|
|
|
23,285
|
|
|
192
|
|
|
0
|
|
|
23,500
|
|
||||||||
Total loans held for investment
|
|
$
|
85,876
|
|
|
$
|
37,824
|
|
|
$
|
30,035
|
|
|
$
|
3,580
|
|
|
$
|
71,439
|
|
|
$
|
50,890
|
|
|
$
|
111
|
|
|
$
|
208,316
|
|
Allowance as a percentage of period-end loans held for investment
|
|
3.73
|
%
|
|
1.75
|
%
|
|
0.21
|
%
|
|
1.58
|
%
|
|
1.09
|
%
|
|
0.78
|
%
|
|
4.68
|
%
|
|
2.10
|
%
|
(1)
|
The component of the allowance for loan and lease losses for credit card and other consumer loans that we collectively evaluate for impairment is based on a statistical calculation supplemented by management judgment and interpretation. The component of the allowance for loan and lease losses for commercial loans, which we collectively evaluate for impairment, is based on historical loss experience for loans with similar characteristics and consideration of credit quality supplemented by management judgment and interpretation.
|
(2)
|
The asset-specific component of the allowance for loan and lease losses for smaller-balance impaired loans is calculated on a pool basis using historical loss experience for the respective class of assets. The asset-specific component of the allowance for loan and lease losses for larger-balance commercial loans is individually calculated for each loan.
|
(3)
|
The Acquired Loans component of the allowance for loan and lease losses is accounted for based on expected cash flows. See “
Note 1—Summary of Significant Accounting Policies
” in our 2014 Form 10-K for details on these loans.
|
|
93
|
Capital One Financial Corporation (COF)
|
NOTE 6—VARIABLE INTEREST ENTITIES AND SECURITIZATIONS
|
|
|
March 31, 2015
|
||||||||||||||||||
|
|
Consolidated
|
|
Unconsolidated
|
||||||||||||||||
(Dollars in millions)
|
|
Carrying
Amount
of Assets
|
|
Carrying
Amount of
Liabilities
|
|
Carrying
Amount
of Assets
|
|
Carrying
Amount of
Liabilities
|
|
Maximum
Exposure to
Loss
|
||||||||||
Securitization-related VIEs:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Credit card loan securitizations
(1)
|
|
$
|
34,172
|
|
|
$
|
13,425
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
Home loan securitizations
(2)
|
|
0
|
|
|
0
|
|
|
223
|
|
|
28
|
|
|
892
|
|
|||||
Total securitization-related VIEs
|
|
34,172
|
|
|
13,425
|
|
|
223
|
|
|
28
|
|
|
892
|
|
|||||
Other VIEs:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Affordable housing entities
|
|
0
|
|
|
0
|
|
|
3,502
|
|
|
463
|
|
|
3,502
|
|
|||||
Entities that provide capital to low-income and rural communities
|
|
384
|
|
|
100
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|||||
Other
|
|
0
|
|
|
0
|
|
|
70
|
|
|
0
|
|
|
70
|
|
|||||
Total other VIEs
|
|
384
|
|
|
100
|
|
|
3,572
|
|
|
463
|
|
|
3,572
|
|
|||||
Total VIEs
|
|
$
|
34,556
|
|
|
$
|
13,525
|
|
|
$
|
3,795
|
|
|
$
|
491
|
|
|
$
|
4,464
|
|
|
94
|
Capital One Financial Corporation (COF)
|
|
|
December 31, 2014
|
||||||||||||||||||
|
|
Consolidated
|
|
Unconsolidated
|
||||||||||||||||
(Dollars in millions)
|
|
Carrying
Amount
of Assets
|
|
Carrying
Amount of
Liabilities
|
|
Carrying
Amount
of Assets
|
|
Carrying
Amount of
Liabilities
|
|
Maximum
Exposure to
Loss
|
||||||||||
Securitization-related VIEs:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Credit card loan securitizations
(1)
|
|
$
|
36,779
|
|
|
$
|
12,350
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
Home loan securitizations
(2)
|
|
0
|
|
|
0
|
|
|
221
|
|
|
31
|
|
|
876
|
|
|||||
Total securitization-related VIEs
|
|
36,779
|
|
|
12,350
|
|
|
221
|
|
|
31
|
|
|
876
|
|
|||||
Other VIEs:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Affordable housing entities
|
|
0
|
|
|
0
|
|
|
3,500
|
|
|
488
|
|
|
3,500
|
|
|||||
Entities that provide capital to low-income and rural communities
|
|
374
|
|
|
99
|
|
|
1
|
|
|
0
|
|
|
1
|
|
|||||
Other
|
|
4
|
|
|
0
|
|
|
74
|
|
|
0
|
|
|
74
|
|
|||||
Total other VIEs
|
|
378
|
|
|
99
|
|
|
3,575
|
|
|
488
|
|
|
3,575
|
|
|||||
Total VIEs
|
|
$
|
37,157
|
|
|
$
|
12,449
|
|
|
$
|
3,796
|
|
|
$
|
519
|
|
|
$
|
4,451
|
|
(1)
|
Represents the gross amount of assets and liabilities owned by the VIE, which includes seller’s interest and retained and repurchased notes held by other related parties.
|
(2)
|
The carrying amount of assets of unconsolidated securitization-related VIEs consists of retained interests associated with the securitization of option-adjustable rate mortgage loans (“option-ARM”) and letters of credit related to manufactured housing securitizations. These are reported on our consolidated balance sheets under other assets. The carrying amount of liabilities of unconsolidated securitization-related VIEs is comprised of obligations on certain swap agreements associated with the securitization of manufactured housing loans and other obligations. These are reported on our consolidated balance sheets under other liabilities.
|
|
95
|
Capital One Financial Corporation (COF)
|
|
|
Non-Mortgage
|
|
Mortgage
|
|
||||||||||||
(Dollars in millions)
|
|
Credit
Card
|
|
Option
ARM
|
|
GreenPoint
HELOCs
|
|
GreenPoint
Manufactured
Housing
|
|
||||||||
March 31, 2015:
|
|
|
|
|
|
|
|
|
|
||||||||
Securities held by third-party investors
|
|
$
|
12,717
|
|
|
$
|
1,971
|
|
|
$
|
90
|
|
|
$
|
862
|
|
|
Receivables in the trust
|
|
33,938
|
|
|
2,037
|
|
|
84
|
|
|
868
|
|
|
||||
Cash balance of spread or reserve accounts
|
|
0
|
|
|
8
|
|
|
N/A
|
|
|
145
|
|
|
||||
Retained interests
|
|
Yes
|
|
|
Yes
|
|
|
Yes
|
|
|
Yes
|
|
|
||||
Servicing retained
|
|
Yes
|
|
|
Yes
|
|
(1)
|
No
|
|
|
No
|
|
(2)
|
||||
Amortization event
(3)
|
|
No
|
|
|
No
|
|
|
No
|
|
|
No
|
|
|
||||
December 31, 2014:
|
|
|
|
|
|
|
|
|
|
||||||||
Securities held by third-party investors
|
|
$
|
11,624
|
|
|
$
|
2,026
|
|
|
$
|
95
|
|
|
$
|
887
|
|
|
Receivables in the trust
|
|
36,545
|
|
|
2,094
|
|
|
89
|
|
|
893
|
|
|
||||
Cash balance of spread or reserve accounts
|
|
0
|
|
|
8
|
|
|
N/A
|
|
|
143
|
|
|
||||
Retained interests
|
|
Yes
|
|
|
Yes
|
|
|
Yes
|
|
|
Yes
|
|
|
||||
Servicing retained
|
|
Yes
|
|
|
Yes
|
|
(1)
|
No
|
|
(1)
|
No
|
|
(2)
|
||||
Amortization event
(3)
|
|
No
|
|
|
No
|
|
|
No
|
|
|
No
|
|
|
(1)
|
We retained servicing of the outstanding balance for a portion of securitized mortgage receivables.
|
(2)
|
The core servicing activities for the manufactured housing securitizations are completed by a third party.
|
(3)
|
Amortization events vary according to each specific trust agreement but generally are triggered by declines in performance or credit metrics, such as net charge-off rates or delinquency rates, below certain predetermined thresholds. Generally, the occurrence of an amortization event changes the sequencing and amount of trust-related cash flows to the benefit of senior noteholders.
|
|
96
|
Capital One Financial Corporation (COF)
|
|
97
|
Capital One Financial Corporation (COF)
|
|
98
|
Capital One Financial Corporation (COF)
|
NOTE 7—GOODWILL AND INTANGIBLE ASSETS
|
|
|
March 31, 2015
|
|
December 31, 2014
|
||||||||||||||||||||
(Dollars in millions)
|
|
Carrying
Amount of Assets (1) |
|
Accumulated Amortization
(1)
|
|
Net
Carrying Amount |
|
Carrying
Amount of Assets (1) |
|
Accumulated Amortization
(1)
|
|
Net
Carrying Amount |
||||||||||||
Goodwill
|
|
$
|
13,978
|
|
|
N/A
|
|
|
$
|
13,978
|
|
|
$
|
13,978
|
|
|
N/A
|
|
|
$
|
13,978
|
|
||
Intangible assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Purchased credit card relationship (“PCCR”) intangibles
|
|
2,147
|
|
|
$
|
(1,235
|
)
|
|
912
|
|
|
2,124
|
|
|
$
|
(1,152
|
)
|
|
972
|
|
||||
Core deposit intangibles
|
|
1,771
|
|
|
(1,596
|
)
|
|
175
|
|
|
1,771
|
|
|
(1,569
|
)
|
|
202
|
|
||||||
Other
(2)
|
|
239
|
|
|
(114
|
)
|
|
125
|
|
|
300
|
|
|
(158
|
)
|
|
142
|
|
||||||
Total intangible assets
|
|
4,157
|
|
|
(2,945
|
)
|
|
1,212
|
|
|
4,195
|
|
|
(2,879
|
)
|
|
1,316
|
|
||||||
Total goodwill and intangible assets
|
|
$
|
18,135
|
|
|
$
|
(2,945
|
)
|
|
$
|
15,190
|
|
|
$
|
18,173
|
|
|
$
|
(2,879
|
)
|
|
$
|
15,294
|
|
MSRs:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Consumer MSRs
(3)
|
|
$
|
53
|
|
|
N/A
|
|
|
$
|
53
|
|
|
$
|
53
|
|
|
N/A
|
|
|
$
|
53
|
|
||
Commercial MSRs
(4)
|
|
177
|
|
|
$
|
(30
|
)
|
|
147
|
|
|
171
|
|
|
$
|
(24
|
)
|
|
147
|
|
||||
Total MSRs
|
|
$
|
230
|
|
|
$
|
(30
|
)
|
|
$
|
200
|
|
|
$
|
224
|
|
|
$
|
(24
|
)
|
|
$
|
200
|
|
(1)
|
Certain intangible assets that were fully amortized in prior periods were removed from our consolidated balance sheets.
|
(2)
|
Primarily consists of brokerage relationship intangibles, partnership and other contract intangibles and tradename intangibles. Also includes certain indefinite-lived intangibles of
$4 million
as of both
March 31, 2015
and
December 31, 2014
.
|
(3)
|
Represents MSRs related to our Consumer Banking business that are carried at fair value on our consolidated balance sheets.
|
(4)
|
Represents MSRs related to our Commercial Banking business that are subsequently measured under the amortization method and periodically assessed for impairment.
None
of these MSRs were impaired during the three months ended
March 31, 2015
and 2014 and
no
valuation allowance was recorded as of
March 31, 2015
and
December 31, 2014
.
|
(Dollars in millions)
|
|
Credit
Card
|
|
Consumer
Banking
|
|
Commercial Banking
|
|
Total
|
||||||||
Balance as of December 31, 2014
|
|
$
|
5,001
|
|
|
$
|
4,593
|
|
|
$
|
4,384
|
|
|
$
|
13,978
|
|
Acquisitions
|
|
0
|
|
|
5
|
|
|
0
|
|
|
5
|
|
||||
Other adjustments
|
|
(5
|
)
|
|
0
|
|
|
0
|
|
|
(5
|
)
|
||||
Balance as of March 31, 2015
|
|
$
|
4,996
|
|
|
$
|
4,598
|
|
|
$
|
4,384
|
|
|
$
|
13,978
|
|
|
99
|
Capital One Financial Corporation (COF)
|
NOTE 8—DEPOSITS AND BORROWINGS
|
|
100
|
Capital One Financial Corporation (COF)
|
(Dollars in millions)
|
|
March 31,
2015 |
|
December 31,
2014 |
||||
Deposits:
|
|
|
|
|
||||
Non-interest bearing deposits
|
|
$
|
25,232
|
|
|
$
|
25,081
|
|
Interest-bearing deposits
|
|
185,208
|
|
|
180,467
|
|
||
Total deposits
|
|
$
|
210,440
|
|
|
$
|
205,548
|
|
Short-term borrowings:
|
|
|
|
|
||||
Federal funds purchased and securities loaned or sold under agreements to repurchase
|
|
$
|
933
|
|
|
$
|
880
|
|
FHLB advances
|
|
5,750
|
|
|
16,200
|
|
||
Total short-term borrowings
|
|
$
|
6,683
|
|
|
$
|
17,080
|
|
|
|
March 31, 2015
|
|
|
|||||||||||
(Dollars in millions)
|
|
Maturity
Date
|
|
Interest Rate
|
|
Weighted
Average
Interest Rate
|
|
Outstanding Amount
|
|
December 31,
2014 |
|||||
Long-term debt:
|
|
|
|
|
|
|
|
|
|
|
|||||
Securitized debt obligations
(1)
|
|
2015 -2025
|
|
0.21 - 5.75%
|
|
1.35
|
%
|
|
$
|
12,717
|
|
|
$
|
11,624
|
|
Senior and subordinated notes:
(1)
|
|
|
|
|
|
|
|
|
|
|
|||||
Fixed unsecured senior debt
|
|
2015 - 2025
|
|
1.00 - 6.75%
|
|
2.73
|
|
|
16,624
|
|
|
15,174
|
|
||
Floating unsecured senior debt
|
|
2015 - 2018
|
|
0.71 - 0.94%
|
|
0.84
|
|
|
1,280
|
|
|
880
|
|
||
Total unsecured senior debt
|
|
|
|
|
|
2.60
|
|
|
17,904
|
|
|
16,054
|
|
||
Fixed unsecured subordinated debt
|
|
2016 - 2023
|
|
3.38 - 8.80%
|
|
4.97
|
|
|
2,655
|
|
|
2,630
|
|
||
Total senior and subordinated notes
|
|
|
|
|
|
|
|
20,559
|
|
|
18,684
|
|
|||
Other long-term borrowings:
|
|
|
|
|
|
|
|
|
|
|
|||||
FHLB advances
|
|
2015 - 2023
|
|
0.22 - 6.88%
|
|
0.55
|
|
|
1,070
|
|
|
1,069
|
|
||
Total long-term debt
|
|
|
|
|
|
|
|
34,346
|
|
|
31,377
|
|
|||
Total short-term borrowings and long-term debt
|
|
|
|
|
|
|
|
$
|
41,029
|
|
|
$
|
48,457
|
|
(1)
|
Outstanding amount includes the impact from hedge accounting.
|
|
|
Three Months Ended March 31,
|
||||||
(Dollars in millions)
|
|
2015
|
|
2014
|
||||
Short-term borrowings:
|
|
|
|
|
||||
Federal funds purchased and securities loaned or sold under agreements to repurchase
|
|
$
|
0
|
|
|
$
|
0
|
|
FHLB advances
|
|
8
|
|
|
6
|
|
||
Total short-term borrowings
|
|
8
|
|
|
6
|
|
||
Long-term debt:
|
|
|
|
|
||||
Securitized debt obligations
(1)
|
|
33
|
|
|
38
|
|
||
Senior and subordinated notes
(1)
|
|
79
|
|
|
77
|
|
||
Other long-term borrowings
|
|
7
|
|
|
6
|
|
||
Total long-term debt
|
|
119
|
|
|
121
|
|
||
Total interest expense on short-term borrowings and long-term debt
|
|
$
|
127
|
|
|
$
|
127
|
|
(1)
|
Interest expense includes the impact from hedge accounting.
|
|
101
|
Capital One Financial Corporation (COF)
|
NOTE 9—DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
|
•
|
Fair Value Hedges:
We designate derivatives as fair value hedges to manage our exposure to changes in the fair value of certain financial assets and liabilities, which fluctuate in value as a result of movements in interest rates. Changes in the fair value of derivatives designated as fair value hedges are recorded in earnings together with offsetting changes in the fair value of the hedged item and any resulting ineffectiveness. Our fair value hedges consist of interest rate swaps that are intended to modify our exposure to interest rate risk on various fixed-rate assets and liabilities.
|
•
|
Cash Flow Hedges:
We designate derivatives as cash flow hedges to manage our exposure to variability in cash flows related to forecasted transactions. Changes in the fair value of derivatives designated as cash flow hedges are recorded as a component of AOCI, to the extent that the hedge relationships are effective, and amounts are reclassified from AOCI to earnings as the forecasted transactions impact earnings. To the extent that any ineffectiveness exists in the hedge relationships, the amounts are recorded in current period earnings. Our cash flow hedges consist of interest rate swaps that are intended to hedge the variability in interest payments on some of our variable-rate assets through
2020
. These hedges have the effect of converting some of our variable-rate assets to a fixed rate. We also have entered into forward foreign currency derivative contracts to hedge our exposure to variability in cash flows related to foreign currency denominated intercompany borrowings.
|
•
|
Net Investment Hedges:
We use net investment hedges to manage the foreign currency exposure related to our net investments in foreign operations that have functional currencies other than the U.S. dollar. Changes in the fair value of net investment hedges are recorded in the translation adjustment component of AOCI, offsetting the translation gain or loss from those foreign operations. During 2014, we executed net investment hedges using foreign exchange forward contracts to hedge the translation exposure of the net investment in our foreign operations.
|
•
|
Free-Standing Derivatives:
We use free-standing derivatives to hedge the risk of changes in the fair value of residential MSRs, mortgage loan origination and purchase commitments and other interests held. We also categorize our customer accommodation derivatives and the related offsetting contracts as free-standing derivatives. Changes in the fair value of free-standing derivatives are recorded in earnings as a component of other non-interest income.
|
|
102
|
Capital One Financial Corporation (COF)
|
|
|
March 31, 2015
|
|
December 31, 2014
|
||||||||||||||||||||
|
|
Notional or
Contractual
Amount
|
|
Derivative
(1)
|
|
Notional or
Contractual
Amount
|
|
Derivative
(1)
|
||||||||||||||||
(Dollars in millions)
|
|
Assets
|
|
Liabilities
|
|
Assets
|
|
Liabilities
|
||||||||||||||||
Derivatives designated as accounting hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest rate contracts:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Fair value hedges
|
|
$
|
26,793
|
|
|
$
|
577
|
|
|
$
|
47
|
|
|
$
|
24,543
|
|
|
$
|
480
|
|
|
$
|
39
|
|
Cash flow hedges
|
|
25,210
|
|
|
437
|
|
|
13
|
|
|
24,450
|
|
|
222
|
|
|
18
|
|
||||||
Total interest rate contracts
|
|
52,003
|
|
|
1,014
|
|
|
60
|
|
|
48,993
|
|
|
702
|
|
|
57
|
|
||||||
Foreign exchange contracts:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash flow hedges
|
|
5,140
|
|
|
340
|
|
|
1
|
|
|
5,546
|
|
|
221
|
|
|
2
|
|
||||||
Net investment hedges
|
|
2,408
|
|
|
51
|
|
|
0
|
|
|
2,476
|
|
|
73
|
|
|
0
|
|
||||||
Total foreign exchange contracts
|
|
7,548
|
|
|
391
|
|
|
1
|
|
|
8,022
|
|
|
294
|
|
|
2
|
|
||||||
Total derivatives designated as accounting hedges
|
|
59,551
|
|
|
1,405
|
|
|
61
|
|
|
57,015
|
|
|
996
|
|
|
59
|
|
||||||
Derivatives not designated as accounting hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest rate contracts covering:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
MSRs
(2)
|
|
1,028
|
|
|
13
|
|
|
5
|
|
|
777
|
|
|
10
|
|
|
3
|
|
||||||
Customer accommodation
|
|
27,918
|
|
|
485
|
|
|
329
|
|
|
27,646
|
|
|
413
|
|
|
251
|
|
||||||
Other interest rate exposures
(3)
|
|
2,740
|
|
|
36
|
|
|
21
|
|
|
2,614
|
|
|
33
|
|
|
21
|
|
||||||
Total interest rate contracts
|
|
31,686
|
|
|
534
|
|
|
355
|
|
|
31,037
|
|
|
456
|
|
|
275
|
|
||||||
Other contracts
|
|
586
|
|
|
0
|
|
|
6
|
|
|
593
|
|
|
0
|
|
|
5
|
|
||||||
Total derivatives not designated as accounting hedges
|
|
32,272
|
|
|
534
|
|
|
361
|
|
|
31,630
|
|
|
456
|
|
|
280
|
|
||||||
Total derivatives
|
|
$
|
91,823
|
|
|
$
|
1,939
|
|
|
$
|
422
|
|
|
$
|
88,645
|
|
|
$
|
1,452
|
|
|
$
|
339
|
|
Less: netting adjustment
(4)
|
|
|
|
(666
|
)
|
|
(165
|
)
|
|
|
|
(624
|
)
|
|
(164
|
)
|
||||||||
Total derivative assets/liabilities
|
|
|
|
$
|
1,273
|
|
|
$
|
257
|
|
|
|
|
$
|
828
|
|
|
$
|
175
|
|
(1)
|
Derivative assets and liabilities include interest accruals.
|
(2)
|
Includes interest rate swaps and To Be Announced (“TBA”) contracts.
|
(3)
|
Other interest rate exposures include mortgage related derivatives.
|
(4)
|
Represents balance sheet netting of derivative assets and liabilities, and related receivables, payables, and cash collateral. See Table 9.2 for further information.
|
|
103
|
Capital One Financial Corporation (COF)
|
|
|
Gross
Amounts
|
|
Gross Amounts Offset in the Balance Sheet
|
|
Net Amounts as Recognized
|
|
Securities Collateral Held Under Master Netting Agreements
|
|
|
||||||||||||||
(Dollars in millions)
|
|
|
Financial
Instruments
|
|
Cash Collateral Received
|
|
|
|
Net
Exposure
|
|||||||||||||||
As of March 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Derivatives assets
(1)
|
|
$
|
1,939
|
|
|
$
|
(70
|
)
|
|
$
|
(596
|
)
|
|
$
|
1,273
|
|
|
$
|
(121
|
)
|
|
$
|
1,152
|
|
As of December 31, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Derivatives assets
(1)
|
|
$
|
1,452
|
|
|
$
|
(101
|
)
|
|
$
|
(523
|
)
|
|
$
|
828
|
|
|
$
|
(80
|
)
|
|
$
|
748
|
|
|
|
Gross
Amounts
|
|
Gross Amounts Offset in the Balance Sheet
|
|
Net Amounts as Recognized
|
|
Securities Collateral Pledged Under Master Netting Agreements
|
|
|
||||||||||||||
(Dollars in millions)
|
|
|
Financial
Instruments
|
|
Cash Collateral Pledged
|
|
|
|
Net
Exposure
|
|||||||||||||||
As of March 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Derivatives liabilities
(1)
|
|
$
|
422
|
|
|
$
|
(70
|
)
|
|
$
|
(95
|
)
|
|
$
|
257
|
|
|
$
|
0
|
|
|
$
|
257
|
|
Repurchase agreements
(2)
|
|
924
|
|
|
0
|
|
|
0
|
|
|
924
|
|
|
(924
|
)
|
|
0
|
|
||||||
As of December 31, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Derivatives liabilities
(1)
|
|
$
|
339
|
|
|
$
|
(101
|
)
|
|
$
|
(63
|
)
|
|
$
|
175
|
|
|
$
|
0
|
|
|
$
|
175
|
|
Repurchase agreements
(2)
|
|
869
|
|
|
0
|
|
|
0
|
|
|
869
|
|
|
(869
|
)
|
|
0
|
|
(1)
|
The gross balances include derivative assets and derivative liabilities as of
March 31, 2015
totaling
$650 million
and
$207 million
, respectively, related to the centrally cleared derivative contracts. The comparable amounts as of
December 31, 2014
totaled
$360 million
and
$127 million
, respectively. These contracts were not subject to offsetting as of
March 31, 2015
and
December 31, 2014
.
|
(2)
|
As of
March 31, 2015
and
December 31, 2014
, the Company only had repurchase obligations outstanding and did not have any reverse repurchase receivables.
|
|
104
|
Capital One Financial Corporation (COF)
|
|
105
|
Capital One Financial Corporation (COF)
|
|
|
Three Months Ended March 31,
|
||||||
(Dollars in millions)
|
|
2015
|
|
2014
|
||||
Derivatives designated as accounting hedges:
(1)
|
|
|
|
|
||||
Fair value interest rate contracts:
|
|
|
|
|
||||
Gains recognized in earnings on derivatives
|
|
$
|
153
|
|
|
$
|
31
|
|
Losses recognized in earnings on hedged items
|
|
(148
|
)
|
|
(23
|
)
|
||
Net fair value hedge ineffectiveness gains
|
|
5
|
|
|
8
|
|
||
Derivatives not designated as accounting hedges:
(1)
|
|
|
|
|
||||
Interest rate contracts covering:
|
|
|
|
|
||||
MSRs
|
|
6
|
|
|
7
|
|
||
Customer accommodation
|
|
4
|
|
|
4
|
|
||
Other interest rate exposures
|
|
2
|
|
|
5
|
|
||
Total interest rate contracts
|
|
12
|
|
|
16
|
|
||
Other contracts
|
|
(2
|
)
|
|
(3
|
)
|
||
Total gains on derivatives not designated as accounting hedges
|
|
10
|
|
|
13
|
|
||
Net derivative gains recognized in earnings
|
|
$
|
15
|
|
|
$
|
21
|
|
(1)
|
Amounts are recorded in our consolidated statements of income in other non-interest income.
|
|
|
Three Months Ended March 31,
|
||||||
(Dollars in millions)
|
|
2015
|
|
2014
|
||||
Gains (losses) recorded in AOCI:
|
|
|
|
|
||||
Cash flow hedges:
|
|
|
|
|
||||
Interest rate contracts
|
|
$
|
210
|
|
|
$
|
45
|
|
Foreign exchange contracts
|
|
(5
|
)
|
|
(5
|
)
|
||
Subtotal
|
|
205
|
|
|
40
|
|
||
Net investment hedges:
|
|
|
|
|
||||
Foreign exchange contracts
|
|
75
|
|
|
0
|
|
||
Net derivatives gains recognized in AOCI
|
|
$
|
280
|
|
|
$
|
40
|
|
Gains (losses) recorded in earnings:
|
|
|
|
|
||||
Cash flow hedges:
|
|
|
|
|
||||
Gains (losses) reclassified from AOCI into earnings:
|
|
|
|
|
||||
Interest rate contracts
(1)
|
|
$
|
47
|
|
|
$
|
26
|
|
Foreign exchange contracts
(2)
|
|
(4
|
)
|
|
(5
|
)
|
||
Subtotal
|
|
43
|
|
|
21
|
|
||
Gains (losses) recognized in earnings due to ineffectiveness:
|
|
|
|
|
||||
Interest rate contracts
(2)
|
|
2
|
|
|
1
|
|
||
Net derivative gains recognized in earnings
|
|
$
|
45
|
|
|
$
|
22
|
|
(1)
|
Amounts reclassified are recorded in our consolidated statements of income in interest income or interest expense.
|
(2)
|
Amounts reclassified are recorded in our consolidated statements of income in other non-interest income.
|
|
106
|
Capital One Financial Corporation (COF)
|
|
107
|
Capital One Financial Corporation (COF)
|
NOTE 10—STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
Carrying Value
(in millions)
|
||||||||||
Series
|
|
Issuance Date
|
|
Redeemable by Issuer Beginning
|
|
Non-cumulative Fixed Dividend Rate per Annum
|
|
Redemption Price per Depositary Share
|
|
Number of Depositary Shares
(1)
|
|
March 31, 2015
|
|
December 31, 2014
|
||||||||
Series B
|
|
August 20, 2012
|
|
September 1, 2017
|
|
6.00
|
%
|
|
$
|
25
|
|
|
35,000,000
|
|
|
$
|
853
|
|
|
$
|
853
|
|
Series C
|
|
June 12, 2014
|
|
September 1, 2019
|
|
6.25
|
|
|
25
|
|
|
20,000,000
|
|
|
484
|
|
|
484
|
|
|||
Series D
|
|
October 31, 2014
|
|
December 1, 2019
|
|
6.70
|
|
|
25
|
|
|
20,000,000
|
|
|
485
|
|
|
485
|
|
|||
Total
|
|
|
|
|
|
|
|
|
|
|
|
$
|
1,822
|
|
|
$
|
1,822
|
|
(1)
|
Each depositary share represents a 1/40th interest in a share of fixed-rate non-cumulative perpetual preferred stock.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in millions)
|
|
Securities
Available
for Sale
|
|
Securities Held to Maturity
(1)
|
|
Cash Flow
Hedges
|
|
Foreign
Currency Translation Adjustments (2) |
|
Other
|
|
Total
|
||||||||||||
AOCI as of December 31, 2014
|
|
$
|
410
|
|
|
$
|
(821
|
)
|
|
$
|
10
|
|
|
$
|
(8
|
)
|
|
$
|
(21
|
)
|
|
$
|
(430
|
)
|
Other comprehensive income (loss) before reclassifications
|
|
114
|
|
|
0
|
|
|
205
|
|
|
(84
|
)
|
|
(1
|
)
|
|
234
|
|
||||||
Amounts reclassified from AOCI into earnings
|
|
8
|
|
|
20
|
|
|
(43
|
)
|
|
0
|
|
|
(1
|
)
|
|
(16
|
)
|
||||||
Net other comprehensive income (loss)
|
|
122
|
|
|
20
|
|
|
162
|
|
|
(84
|
)
|
|
(2
|
)
|
|
218
|
|
||||||
AOCI as of March 31, 2015
|
|
$
|
532
|
|
|
$
|
(801
|
)
|
|
$
|
172
|
|
|
$
|
(92
|
)
|
|
$
|
(23
|
)
|
|
$
|
(212
|
)
|
(Dollars in millions)
|
|
Securities
Available for Sale |
|
Securities Held to Maturity
(1)
|
|
Cash Flow
Hedges |
|
Foreign
Currency Translation Adjustments |
|
Other
|
|
Total
|
||||||||||||
AOCI as of December 31, 2013
|
|
$
|
106
|
|
|
$
|
(897
|
)
|
|
$
|
(110
|
)
|
|
$
|
40
|
|
|
$
|
(11
|
)
|
|
$
|
(872
|
)
|
Other comprehensive income (loss) before reclassifications
|
|
149
|
|
|
0
|
|
|
40
|
|
|
(13
|
)
|
|
0
|
|
|
176
|
|
||||||
Amounts reclassified from AOCI into earnings
|
|
(5
|
)
|
|
13
|
|
|
(21
|
)
|
|
0
|
|
|
(1
|
)
|
|
(14
|
)
|
||||||
Net other comprehensive income (loss)
|
|
144
|
|
|
13
|
|
|
19
|
|
|
(13
|
)
|
|
(1
|
)
|
|
162
|
|
||||||
AOCI as of March 31, 2014
|
|
$
|
250
|
|
|
$
|
(884
|
)
|
|
$
|
(91
|
)
|
|
$
|
27
|
|
|
$
|
(12
|
)
|
|
$
|
(710
|
)
|
(1)
|
The amortization of unrealized holding gains or losses reported in AOCI for securities held to maturity will be offset by the amortization of the premium or discount created at the date of transfer from the securities available for sale to securities held to maturity, which occurred at fair value. These unrealized gains or losses will be recorded over the remaining life of the security with no impact on future net income.
|
(2)
|
Includes the impact from hedging instruments designated as net investment hedges.
|
|
108
|
Capital One Financial Corporation (COF)
|
|
|
|
|
Amount Reclassified from AOCI
|
||||||
(Dollars in millions)
|
|
|
|
Three Months Ended March 31,
|
||||||
AOCI Components
|
|
Affected Income Statement Line Item
|
|
2015
|
|
2014
|
||||
Securities available for sale:
|
|
|
|
|
|
|
||||
|
|
Non-interest income - Other
|
|
$
|
2
|
|
|
$
|
13
|
|
|
|
Non-interest income - OTTI
|
|
(15
|
)
|
|
(5
|
)
|
||
|
|
(Loss) income from continuing operations before income taxes
|
|
(13
|
)
|
|
8
|
|
||
|
|
Income tax (benefit) provision
|
|
(5
|
)
|
|
3
|
|
||
|
|
Net (loss) income
|
|
(8
|
)
|
|
5
|
|
||
Securities held to maturity:
(1)
|
|
|
|
|
|
|
||||
|
|
Non-interest income - Other
|
|
(33
|
)
|
|
(28
|
)
|
||
|
|
Income tax benefit
|
|
(13
|
)
|
|
(15
|
)
|
||
|
|
Net loss
|
|
(20
|
)
|
|
(13
|
)
|
||
Cash flow hedges:
|
|
|
|
|
|
|
||||
Interest rate contracts:
|
|
Interest income - Other
|
|
75
|
|
|
42
|
|
||
Foreign exchange contracts:
|
|
Non-interest income - Other
|
|
(7
|
)
|
|
(8
|
)
|
||
|
|
Income from continuing operations before income taxes
|
|
68
|
|
|
34
|
|
||
|
|
Income tax provision
|
|
25
|
|
|
13
|
|
||
|
|
Net income
|
|
43
|
|
|
21
|
|
||
Other:
|
|
|
|
|
|
|
||||
|
|
Various (pension and other)
|
|
1
|
|
|
1
|
|
||
|
|
Income tax provision (benefit)
|
|
0
|
|
|
0
|
|
||
|
|
Net income
|
|
1
|
|
|
1
|
|
||
Total reclassifications
|
|
|
|
$
|
16
|
|
|
$
|
14
|
|
(1)
|
The amortization of unrealized holding gains or losses reported in AOCI for securities held to maturity will be offset by the amortization of the premium or discount created from the transfer into securities held to maturity, which occurred at fair value.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
||||||||||||||||||||||
|
|
2015
|
|
2014
|
||||||||||||||||||||
(Dollars in millions)
|
|
Before
Tax
|
|
Provision
(Benefit)
|
|
After
Tax
|
|
Before
Tax
|
|
Provision
(Benefit) |
|
After
Tax
|
||||||||||||
Other comprehensive income (loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net unrealized gains on securities available for sale
|
|
$
|
190
|
|
|
$
|
68
|
|
|
$
|
122
|
|
|
$
|
229
|
|
|
$
|
85
|
|
|
$
|
144
|
|
Net changes in securities held to maturity
|
|
33
|
|
|
13
|
|
|
20
|
|
|
28
|
|
|
15
|
|
|
13
|
|
||||||
Net unrealized gains on cash flow hedges
|
|
258
|
|
|
96
|
|
|
162
|
|
|
30
|
|
|
11
|
|
|
19
|
|
||||||
Foreign currency translation adjustments
(1)
|
|
(41
|
)
|
|
43
|
|
|
(84
|
)
|
|
(13
|
)
|
|
0
|
|
|
(13
|
)
|
||||||
Other
|
|
(4
|
)
|
|
(2
|
)
|
|
(2
|
)
|
|
(1
|
)
|
|
0
|
|
|
(1
|
)
|
||||||
Other comprehensive income
|
|
$
|
436
|
|
|
$
|
218
|
|
|
$
|
218
|
|
|
$
|
273
|
|
|
$
|
111
|
|
|
$
|
162
|
|
(1)
|
Includes the impact from hedging instruments designated as net investment hedges.
|
|
109
|
Capital One Financial Corporation (COF)
|
NOTE 11—EARNINGS PER COMMON SHARE
|
|
|
Three Months Ended March 31,
|
||||||
(Dollars and shares in millions, except per share data)
|
|
2015
|
|
2014
|
||||
Basic earnings
|
|
|
|
|
||||
Income from continuing operations, net of tax
|
|
$
|
1,134
|
|
|
$
|
1,124
|
|
Income from discontinued operations, net of tax
|
|
19
|
|
|
30
|
|
||
Net income
|
|
1,153
|
|
|
1,154
|
|
||
Dividends and undistributed earnings allocated to participating securities
(1)
|
|
(6
|
)
|
|
(5
|
)
|
||
Preferred stock dividends
|
|
(32
|
)
|
|
(13
|
)
|
||
Net income available to common stockholders
|
|
$
|
1,115
|
|
|
$
|
1,136
|
|
|
|
|
|
|
||||
Net income from continuing operations per share
|
|
$
|
2.00
|
|
|
$
|
1.94
|
|
Income from discontinued operations per share
|
|
0.03
|
|
|
0.05
|
|
||
Net income per share
|
|
$
|
2.03
|
|
|
$
|
1.99
|
|
Total weighted-average basic shares outstanding
|
|
550.2
|
|
|
571.0
|
|
Diluted earnings
(2)
|
|
|
|
|
||||
Net income available to common stockholders
|
|
$
|
1,115
|
|
|
$
|
1,136
|
|
Net income from continuing operations per share
|
|
$
|
1.97
|
|
|
$
|
1.91
|
|
Income from discontinued operations per share
|
|
0.03
|
|
|
0.05
|
|
||
Net income per share
|
|
$
|
2.00
|
|
|
$
|
1.96
|
|
|
|
|
|
|
||||
Total weighted-average basic shares outstanding
|
|
550.2
|
|
|
571.0
|
|
||
Effect of dilutive securities:
|
|
|
|
|
||||
Stock options
|
|
2.6
|
|
|
2.4
|
|
||
Other contingently issuable shares
|
|
1.5
|
|
|
1.5
|
|
||
Warrants
(3)
|
|
2.9
|
|
|
5.4
|
|
||
Total effect of dilutive securities
|
|
7.0
|
|
|
9.3
|
|
||
Total weighted-average diluted shares outstanding
|
|
557.2
|
|
|
580.3
|
|
(1)
|
Includes undistributed earnings allocated to participating securities using the two-class method under the accounting guidance for computing earnings per share.
|
(2)
|
Excluded from the computation of diluted earnings per share were
2.0 million
shares related to options with exercise prices ranging from
$70.96
to
$88.81
,
and
4.6 million
shares related to options with exercise prices ranging from
$70.96
to
$88.81
for
the three months ended March 31, 2015 and 2014
, respectively, because their inclusion would be anti-dilutive.
|
(3)
|
Represents warrants issued as part of the U.S. Department of Treasury’s Troubled Assets Relief Program (“TARP”). As of
March 31, 2015
, there were
6.3 million
warrants to purchase common stock outstanding, which represents approximately half of the warrants issued in the initial offering.
|
|
110
|
Capital One Financial Corporation (COF)
|
NOTE 12—FAIR VALUE MEASUREMENT
|
Level 1:
|
|
Valuation is based on quoted prices (unadjusted) in active markets for identical assets or liabilities.
|
Level 2:
|
|
Valuation is based on observable market-based inputs, other than quoted prices in active markets for identical assets or liabilities, quoted prices in markets that are not active, or models using inputs that are observable or can be corroborated by observable market data of substantially the full term of the assets or liabilities.
|
Level 3:
|
|
Valuation is generated from techniques that use significant assumptions not observable in the market. Valuation techniques include pricing models, discounted cash flow methodologies or similar techniques.
|
|
111
|
Capital One Financial Corporation (COF)
|
|
|
March 31, 2015
|
||||||||||||||
|
|
Fair Value Measurements Using
|
|
|
||||||||||||
(Dollars in millions)
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
Assets:
|
|
|
|
|
|
|
|
|
||||||||
Securities available for sale:
|
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury securities
|
|
$
|
4,440
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
4,440
|
|
Corporate debt securities guaranteed by U.S. government agencies
|
|
0
|
|
|
426
|
|
|
172
|
|
|
598
|
|
||||
RMBS
|
|
0
|
|
|
25,493
|
|
|
555
|
|
|
26,048
|
|
||||
CMBS
|
|
0
|
|
|
5,255
|
|
|
174
|
|
|
5,429
|
|
||||
Other ABS
|
|
0
|
|
|
2,021
|
|
|
7
|
|
|
2,028
|
|
||||
Other securities
|
|
112
|
|
|
648
|
|
|
18
|
|
|
778
|
|
||||
Total securities available for sale
|
|
4,552
|
|
|
33,843
|
|
|
926
|
|
|
39,321
|
|
||||
Other assets:
|
|
|
|
|
|
|
|
|
||||||||
Consumer MSRs
|
|
0
|
|
|
0
|
|
|
53
|
|
|
53
|
|
||||
Derivative assets
(1)(2)
|
|
3
|
|
|
1,863
|
|
|
73
|
|
|
1,939
|
|
||||
Retained interests in securitizations
|
|
0
|
|
|
0
|
|
|
223
|
|
|
223
|
|
||||
Total assets
|
|
$
|
4,555
|
|
|
$
|
35,706
|
|
|
$
|
1,275
|
|
|
$
|
41,536
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
||||||||
Other liabilities:
|
|
|
|
|
|
|
|
|
||||||||
Derivative liabilities
(1)(2)
|
|
$
|
3
|
|
|
$
|
371
|
|
|
$
|
48
|
|
|
$
|
422
|
|
Total liabilities
|
|
$
|
3
|
|
|
$
|
371
|
|
|
$
|
48
|
|
|
$
|
422
|
|
|
112
|
Capital One Financial Corporation (COF)
|
|
|
December 31, 2014
|
||||||||||||||
|
|
Fair Value Measurements Using
|
|
|
||||||||||||
(Dollars in millions)
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
Assets:
|
|
|
|
|
|
|
|
|
||||||||
Securities available for sale:
|
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury securities
|
|
$
|
4,117
|
|
|
$
|
1
|
|
|
$
|
0
|
|
|
$
|
4,118
|
|
Corporate debt securities guaranteed by U.S. government agencies
|
|
0
|
|
|
467
|
|
|
333
|
|
|
800
|
|
||||
RMBS
|
|
0
|
|
|
24,820
|
|
|
561
|
|
|
25,381
|
|
||||
CMBS
|
|
0
|
|
|
5,291
|
|
|
228
|
|
|
5,519
|
|
||||
Other ABS
|
|
0
|
|
|
2,597
|
|
|
65
|
|
|
2,662
|
|
||||
Other securities
|
|
111
|
|
|
899
|
|
|
18
|
|
|
1,028
|
|
||||
Total securities available for sale
|
|
4,228
|
|
|
34,075
|
|
|
1,205
|
|
|
39,508
|
|
||||
Other assets:
|
|
|
|
|
|
|
|
|
||||||||
Consumer MSRs
|
|
0
|
|
|
0
|
|
|
53
|
|
|
53
|
|
||||
Derivative assets
(1)(2)
|
|
4
|
|
|
1,382
|
|
|
66
|
|
|
1,452
|
|
||||
Retained interests in securitizations
|
|
0
|
|
|
0
|
|
|
221
|
|
|
221
|
|
||||
Total assets
|
|
$
|
4,232
|
|
|
$
|
35,457
|
|
|
$
|
1,545
|
|
|
$
|
41,234
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
||||||||
Other liabilities:
|
|
|
|
|
|
|
|
|
||||||||
Derivative liabilities
(1)(2)
|
|
$
|
3
|
|
|
$
|
293
|
|
|
$
|
43
|
|
|
$
|
339
|
|
Total liabilities
|
|
$
|
3
|
|
|
$
|
293
|
|
|
$
|
43
|
|
|
$
|
339
|
|
(1)
|
As of January 1, 2015, we changed our accounting principle to move from a gross basis of presentation to a net basis, for presenting qualifying derivative assets and liabilities, as well as the related right to reclaim cash collateral or obligation to return cash collateral. See “
Note 1—Summary of Significant Accounting Policies
” for additional information. Prior period results have been recast to conform to this presentation.
|
(2)
|
Does not reflect
$5 million
and
$4 million
recognized as a net valuation allowance on derivative assets and liabilities for non-performance risk as of
March 31, 2015
and
December 31, 2014
, respectively. Non-performance risk is reflected in other assets and liabilities on the consolidated balance sheets and offset through other income in the consolidated statements of income.
|
|
113
|
Capital One Financial Corporation (COF)
|
|
|
Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
|
||||||||||||||||||||||||||||||||||||||||||
|
|
Three Months Ended March 31, 2015
|
||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
Total Gains (Losses)
(Realized/Unrealized)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Unrealized
Gains (Losses)
Included in Net
Income Related to Assets and
Liabilities Still Held as of
March 31, 2015
(3)
|
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||
(Dollars in millions)
|
|
Balance,
January 1,
2015
|
|
Included
in Net
Income
(1)
|
|
Included in
OCI
|
|
Purchases
|
|
Sales
|
|
Issuances
|
|
Settlements
|
|
Transfers
Into
Level 3
(2)
|
|
Transfers
Out of
Level 3
(2)
|
|
Balance,
March 31, 2015
|
|
|||||||||||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Securities available for sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Corporate debt securities guaranteed by U.S. government agencies
|
|
$
|
333
|
|
|
$
|
(2
|
)
|
|
$
|
5
|
|
|
$
|
0
|
|
|
$
|
(68
|
)
|
|
$
|
0
|
|
|
$
|
(8
|
)
|
|
$
|
0
|
|
|
$
|
(88
|
)
|
|
$
|
172
|
|
|
$
|
0
|
|
RMBS
|
|
561
|
|
|
8
|
|
|
8
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
(13
|
)
|
|
85
|
|
|
(94
|
)
|
|
555
|
|
|
9
|
|
|||||||||||
CMBS
|
|
228
|
|
|
0
|
|
|
1
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
(21
|
)
|
|
0
|
|
|
(34
|
)
|
|
174
|
|
|
0
|
|
|||||||||||
Other ABS
|
|
65
|
|
|
1
|
|
|
(2
|
)
|
|
0
|
|
|
(20
|
)
|
|
0
|
|
|
0
|
|
|
0
|
|
|
(37
|
)
|
|
7
|
|
|
0
|
|
|||||||||||
Other securities
|
|
18
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
18
|
|
|
0
|
|
|||||||||||
Total securities available for sale
|
|
1,205
|
|
|
7
|
|
|
12
|
|
|
0
|
|
|
(88
|
)
|
|
0
|
|
|
(42
|
)
|
|
85
|
|
|
(253
|
)
|
|
926
|
|
|
9
|
|
|||||||||||
Other assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Consumer MSRs
|
|
53
|
|
|
(3
|
)
|
|
0
|
|
|
0
|
|
|
0
|
|
|
4
|
|
|
(1
|
)
|
|
0
|
|
|
0
|
|
|
53
|
|
|
(3
|
)
|
|||||||||||
Derivative assets
(4)
|
|
66
|
|
|
11
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
9
|
|
|
(12
|
)
|
|
0
|
|
|
(1
|
)
|
|
73
|
|
|
11
|
|
|||||||||||
Retained interest in securitizations
|
|
221
|
|
|
2
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
223
|
|
|
2
|
|
|||||||||||
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Other liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Derivative liabilities
(4)
|
|
$
|
43
|
|
|
$
|
10
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
7
|
|
|
$
|
(12
|
)
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
48
|
|
|
$
|
10
|
|
|
|
Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
|
||||||||||||||||||||||||||||||||||||||||||
|
|
Three Months Ended March 31, 2014
|
||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
Total Gains (Losses)
(Realized/Unrealized)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Unrealized
Gains (Losses)
Included in Net
Income Related to Assets and Liabilities Still Held as of March 31, 2014
(3)
|
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||
(Dollars in millions)
|
|
Balance,
January 1,
2014
|
|
Included
in Net
Income
(1)
|
|
Included in
OCI
|
|
Purchases
|
|
Sales
|
|
Issuances
|
|
Settlements
|
|
Transfers
Into
Level 3
(2)
|
|
Transfers
Out of
Level 3
(2)
|
|
Balance,
March 31, 2014
|
|
|||||||||||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Securities available for sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Corporate debt securities guaranteed by U.S. government agencies
|
|
$
|
927
|
|
|
$
|
0
|
|
|
$
|
10
|
|
|
$
|
0
|
|
|
$
|
(112
|
)
|
|
$
|
0
|
|
|
$
|
(21
|
)
|
|
$
|
64
|
|
|
$
|
(116
|
)
|
|
$
|
752
|
|
|
$
|
0
|
|
RMBS
|
|
1,304
|
|
|
20
|
|
|
28
|
|
|
886
|
|
|
0
|
|
|
0
|
|
|
(34
|
)
|
|
57
|
|
|
(534
|
)
|
|
1,727
|
|
|
20
|
|
|||||||||||
CMBS
|
|
739
|
|
|
0
|
|
|
2
|
|
|
34
|
|
|
0
|
|
|
0
|
|
|
(11
|
)
|
|
38
|
|
|
(307
|
)
|
|
495
|
|
|
0
|
|
|||||||||||
Other ABS
|
|
343
|
|
|
2
|
|
|
2
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
(1
|
)
|
|
43
|
|
|
(163
|
)
|
|
226
|
|
|
2
|
|
|||||||||||
Other securities
|
|
17
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
17
|
|
|
0
|
|
|||||||||||
Total securities available for sale
|
|
3,330
|
|
|
22
|
|
|
42
|
|
|
920
|
|
|
(112
|
)
|
|
0
|
|
|
(67
|
)
|
|
202
|
|
|
(1,120
|
)
|
|
3,217
|
|
|
22
|
|
|||||||||||
Other assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Consumer MSRs
|
|
69
|
|
|
(11
|
)
|
|
0
|
|
|
0
|
|
|
0
|
|
|
4
|
|
|
(1
|
)
|
|
0
|
|
|
0
|
|
|
61
|
|
|
(11
|
)
|
|||||||||||
Derivative assets
(4)
|
|
50
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
2
|
|
|
(3
|
)
|
|
0
|
|
|
(1
|
)
|
|
48
|
|
|
0
|
|
|||||||||||
Retained interest in securitization
|
|
199
|
|
|
(2
|
)
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
197
|
|
|
(2
|
)
|
|||||||||||
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Other liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Derivative liabilities
(4)
|
|
$
|
38
|
|
|
$
|
2
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
1
|
|
|
$
|
(5
|
)
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
36
|
|
|
$
|
2
|
|
(1)
|
Gains (Losses) related to Level 3 Consumer MSRs, derivative assets and derivative liabilities, and retained interests in securitizations are reported in other non-interest income, which is a component of non-interest income, in our consolidated statements of income.
|
|
114
|
Capital One Financial Corporation (COF)
|
(2)
|
During the three months ended
March 31, 2015
and
2014
, the transfers into Level 3 were primarily driven by less consistency among vendor pricing on individual securities, while the transfers out of Level 3 were primarily driven by greater consistency among multiple pricing sources.
|
(3)
|
The amount presented for unrealized gains (losses) for assets still held as of the reporting date primarily represents impairments of securities available for sale, accretion on certain fixed maturity securities, changes in fair value of derivative instruments and mortgage servicing rights transactions. Impairment is reported in total other-than-temporary impairment, which is a component of non-interest income, in our consolidated statements of income.
|
(4)
|
All level 3 derivative assets and liabilities are presented on a gross basis and are not reduced by the impact of legally enforceable master netting agreements that allow us to net positive and negative positions and cash collateral held or placed with the same counterparty.
|
|
|
Quantitative Information about Level 3 Fair Value Measurements
|
||||||||||
(Dollars in millions)
|
|
Fair Value at March 31,
2015 |
|
Significant
Valuation
Techniques
|
|
Significant
Unobservable
Inputs
|
|
Range
|
|
Weighted
Average
|
||
Assets:
|
|
|
|
|
|
|
|
|
|
|
||
Securities available for sale:
|
|
|
|
|
|
|
|
|
|
|
||
RMBS
|
|
$
|
555
|
|
|
Discounted cash flows (3rd party pricing)
|
|
Yield
Constant prepayment rate Default rate Loss severity |
|
1-22%
0-22% 0-15% 0-85% |
|
6%
4% 5% 59% |
CMBS
|
|
174
|
|
|
Discounted cash flows (3rd party pricing)
|
|
Yield
Constant prepayment rate |
|
1-2%
0-100% |
|
2%
5% |
|
Other ABS
|
|
7
|
|
|
Discounted cash flows (3rd party pricing)
|
|
Yield
Constant prepayment rate Default rate Loss severity |
|
2%
0% 1% 30% |
|
2%
0% 1% 30% |
|
U.S. government guaranteed debt and other securities
|
|
190
|
|
|
Discounted cash flows (3rd party pricing)
|
|
Yield
|
|
1-4%
|
|
3%
|
|
Other assets:
|
|
|
|
|
|
|
|
|
|
|
||
Consumer MSRs
|
|
53
|
|
|
Discounted cash flows
|
|
Total prepayment rate
Discount rate Option Adjusted Spread rate Servicing cost ($ per loan) |
|
9-20%
14% 435-1500 bps $93.18-$208.70 |
|
18%
14% 489 bps $100.45 |
|
Derivative assets
(1)
|
|
73
|
|
|
Discounted cash flows
|
|
Swap rates
|
|
2%
|
|
2%
|
|
Retained interests in securitization
(2)
|
|
223
|
|
|
Discounted cash flows
|
|
Life of receivables (months) Constant prepayment rate
Discount rate Default rate Loss severity |
|
24-84
2-11% 4-11% 2-6% 16-91% |
|
N/A
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
||
Derivative liabilities
(1)
|
|
$
|
48
|
|
|
Discounted cash flows
|
|
Swap rates
|
|
2%
|
|
2%
|
|
115
|
Capital One Financial Corporation (COF)
|
|
|
Quantitative Information about Level 3 Fair Value Measurements
|
||||||||||
(Dollars in millions)
|
|
Fair Value at
December 31,
2014
|
|
Significant
Valuation
Techniques
|
|
Significant
Unobservable
Inputs
|
|
Range
|
|
Weighted
Average
|
||
Assets:
|
|
|
|
|
|
|
|
|
|
|
||
Securities available for sale:
|
|
|
|
|
|
|
|
|
|
|
||
RMBS
|
|
$
|
561
|
|
|
Discounted cash flows (3rd party pricing)
|
|
Yield
Constant prepayment rate Default rate Loss severity |
|
0-18%
0-23% 0-15% 0-85% |
|
6%
4% 5% 55% |
CMBS
|
|
228
|
|
|
Discounted cash flows (3rd party pricing)
|
|
Yield
Constant prepayment rate |
|
1-4%
0-100% |
|
1%
5% |
|
Other ABS
|
|
65
|
|
|
Discounted cash flows (3rd party pricing)
|
|
Yield
Constant prepayment rate Default rate Loss severity |
|
2-7%
0-3% 1-10% 30-88% |
|
5%
2% 7% 71% |
|
U.S. government guaranteed debt and other securities
|
|
351
|
|
|
Discounted cash flows (3rd party pricing)
|
|
Yield
|
|
1-4%
|
|
3%
|
|
Other assets:
|
|
|
|
|
|
|
|
|
|
|
||
Consumer MSRs
|
|
53
|
|
|
Discounted cash flows
|
|
Total prepayment rate
Discount rate Option Adjusted Spread rate Servicing cost ($ per loan) |
|
12-27%
12% 435-1,500 bps $93.18-$208.70 |
|
18%
12% 478 bps $100.63 |
|
Derivative assets
(1)
|
|
66
|
|
|
Discounted cash flows
|
|
Swap rates
|
|
2-3%
|
|
2%
|
|
Retained interests in securitization
(2)
|
|
221
|
|
|
Discounted cash flows
|
|
Life of receivables (months) Constant prepayment rate
Discount rate Default rate Loss severity |
|
25-72
2-13% 4-9% 2-8% 19-95% |
|
N/A
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
||
Derivative liabilities
(1)
|
|
$
|
43
|
|
|
Discounted cash flows
|
|
Swap rates
|
|
2-3%
|
|
2%
|
(1)
|
All level 3 derivative assets and liabilities are presented on a gross basis and are not reduced by the impact of legally enforceable master netting agreements that allow us to net positive and negative positions and cash collateral held or placed with the same counterparty.
|
(2)
|
Due to the nature of the various mortgage securitization structures in which we have retained interests, it is not meaningful to present a consolidated weighted average for the significant unobservable inputs.
|
|
|
March 31, 2015
|
||||||||||||||
|
|
Estimated Fair Value Hierarchy
|
|
Total
|
||||||||||||
(Dollars in millions)
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
|||||||||
Assets:
|
|
|
|
|
|
|
|
|
||||||||
Loans held for investment
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
63
|
|
|
$
|
63
|
|
Loans held for sale
|
|
0
|
|
|
15
|
|
|
0
|
|
|
15
|
|
||||
Other assets
(1)
|
|
0
|
|
|
0
|
|
|
28
|
|
|
28
|
|
||||
Total
|
|
$
|
0
|
|
|
$
|
15
|
|
|
$
|
91
|
|
|
$
|
106
|
|
|
116
|
Capital One Financial Corporation (COF)
|
|
|
December 31, 2014
|
||||||||||||||
|
|
Estimated Fair Value Hierarchy
|
|
Total
|
||||||||||||
(Dollars in millions)
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
|||||||||
Assets:
|
|
|
|
|
|
|
|
|
||||||||
Loans held for investment
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
121
|
|
|
$
|
121
|
|
Loans held for sale
|
|
0
|
|
|
34
|
|
|
0
|
|
|
34
|
|
||||
Other assets
(1)
|
|
0
|
|
|
0
|
|
|
65
|
|
|
65
|
|
||||
Total
|
|
$
|
0
|
|
|
$
|
34
|
|
|
$
|
186
|
|
|
$
|
220
|
|
(1)
|
Includes foreclosed property and repossessed assets of
$28 million
as of
March 31, 2015
, compared to foreclosed property and repossessed assets of
$60 million
and long-lived assets held for sale of
$5 million
as of
December 31, 2014
.
|
|
|
Total Gains (Losses)
|
||||||
|
|
Three Months Ended March 31,
|
||||||
(Dollars in millions)
|
|
2015
|
|
2014
|
||||
Assets:
|
|
|
|
|
||||
Loans held for investment
|
|
$
|
(5
|
)
|
|
$
|
(9
|
)
|
Loans held for sale
|
|
0
|
|
|
(1
|
)
|
||
Other assets
(1)
|
|
(4
|
)
|
|
(3
|
)
|
||
Total
|
|
$
|
(9
|
)
|
|
$
|
(13
|
)
|
(1)
|
Includes losses related to foreclosed property and repossessed assets and long-lived assets held for sale.
|
|
117
|
Capital One Financial Corporation (COF)
|
|
|
March 31, 2015
|
|
Estimated Fair Value Hierarchy
|
||||||||||||||||
(Dollars in millions)
|
|
Carrying
Amount
|
|
Estimated
Fair Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||
Financial assets:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
|
$
|
8,891
|
|
|
$
|
8,891
|
|
|
$
|
8,891
|
|
|
$
|
0
|
|
|
$
|
0
|
|
Restricted cash for securitization investors
|
|
234
|
|
|
234
|
|
|
234
|
|
|
0
|
|
|
0
|
|
|||||
Securities available for sale
|
|
39,321
|
|
|
39,321
|
|
|
4,552
|
|
|
33,843
|
|
|
926
|
|
|||||
Securities held to maturity
|
|
23,241
|
|
|
24,653
|
|
|
199
|
|
|
24,197
|
|
|
257
|
|
|||||
Net loans held for investment
|
|
199,573
|
|
|
202,522
|
|
|
0
|
|
|
0
|
|
|
202,522
|
|
|||||
Loans held for sale
|
|
1,331
|
|
|
1,358
|
|
|
0
|
|
|
1,358
|
|
|
0
|
|
|||||
Interest receivable
(1)
|
|
1,078
|
|
|
1,078
|
|
|
0
|
|
|
1,078
|
|
|
0
|
|
|||||
Derivative assets
(1)(2)
|
|
1,939
|
|
|
1,939
|
|
|
3
|
|
|
1,863
|
|
|
73
|
|
|||||
Retained interests in securitizations
|
|
223
|
|
|
223
|
|
|
0
|
|
|
0
|
|
|
223
|
|
|||||
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Non-interest bearing deposits
|
|
$
|
25,232
|
|
|
$
|
25,232
|
|
|
$
|
25,232
|
|
|
$
|
0
|
|
|
$
|
0
|
|
Interest-bearing deposits
|
|
185,208
|
|
|
180,037
|
|
|
0
|
|
|
11,253
|
|
|
168,784
|
|
|||||
Securitized debt obligations
|
|
12,717
|
|
|
12,826
|
|
|
0
|
|
|
12,826
|
|
|
0
|
|
|||||
Senior and subordinated notes
|
|
20,599
|
|
|
20,967
|
|
|
0
|
|
|
20,967
|
|
|
0
|
|
|||||
Federal funds purchased and securities loaned or sold under agreements to repurchase
|
|
933
|
|
|
933
|
|
|
933
|
|
|
0
|
|
|
0
|
|
|||||
Other borrowings
|
|
6,820
|
|
|
6,823
|
|
|
0
|
|
|
6,823
|
|
|
0
|
|
|||||
Interest payable
(1)
|
|
195
|
|
|
195
|
|
|
0
|
|
|
195
|
|
|
0
|
|
|||||
Derivative liabilities
(1)(2)
|
|
422
|
|
|
422
|
|
|
3
|
|
|
371
|
|
|
48
|
|
|
|
December 31, 2014
|
|
Estimated Fair Value Hierarchy
|
||||||||||||||||
(Dollars in millions)
|
|
Carrying
Amount
|
|
Estimated
Fair Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||
Financial assets:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
|
$
|
7,242
|
|
|
$
|
7,242
|
|
|
$
|
7,242
|
|
|
$
|
0
|
|
|
$
|
0
|
|
Restricted cash for securitization investors
|
|
234
|
|
|
234
|
|
|
234
|
|
|
0
|
|
|
0
|
|
|||||
Securities available for sale
|
|
39,508
|
|
|
39,508
|
|
|
4,228
|
|
|
34,075
|
|
|
1,205
|
|
|||||
Securities held to maturity
|
|
22,500
|
|
|
23,634
|
|
|
0
|
|
|
23,503
|
|
|
131
|
|
|||||
Net loans held for investment
|
|
203,933
|
|
|
207,104
|
|
|
0
|
|
|
0
|
|
|
207,104
|
|
|||||
Loans held for sale
|
|
626
|
|
|
650
|
|
|
0
|
|
|
650
|
|
|
0
|
|
|||||
Interest receivable
(1)
|
|
1,079
|
|
|
1,079
|
|
|
0
|
|
|
1,079
|
|
|
0
|
|
|||||
Derivatives assets
(1)(2)
|
|
1,452
|
|
|
1,452
|
|
|
4
|
|
|
1,382
|
|
|
66
|
|
|||||
Retained interests in securitizations
|
|
221
|
|
|
221
|
|
|
0
|
|
|
0
|
|
|
221
|
|
|||||
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Non-interest bearing deposits
|
|
$
|
25,081
|
|
|
$
|
25,081
|
|
|
$
|
25,081
|
|
|
$
|
0
|
|
|
$
|
0
|
|
Interest-bearing deposits
|
|
180,467
|
|
|
174,074
|
|
|
0
|
|
|
11,668
|
|
|
162,406
|
|
|||||
Securitized debt obligations
|
|
11,624
|
|
|
11,745
|
|
|
0
|
|
|
11,745
|
|
|
0
|
|
|||||
Senior and subordinated notes
|
|
18,684
|
|
|
19,083
|
|
|
0
|
|
|
19,083
|
|
|
0
|
|
|||||
Federal funds purchased and securities loaned or sold under agreements to repurchase
|
|
880
|
|
|
880
|
|
|
880
|
|
|
0
|
|
|
0
|
|
|||||
Other borrowings
|
|
17,269
|
|
|
17,275
|
|
|
0
|
|
|
17,275
|
|
|
0
|
|
|||||
Interest payable
(1)
|
|
254
|
|
|
254
|
|
|
0
|
|
|
254
|
|
|
0
|
|
|||||
Derivatives liabilities
(1)(2)
|
|
339
|
|
|
339
|
|
|
3
|
|
|
293
|
|
|
43
|
|
(1)
|
As of January 1, 2015, we changed our accounting principle to move from a gross basis of presentation to a net basis, for presenting qualifying derivative assets and liabilities, as well as the related right to reclaim cash collateral or obligation to return cash collateral. Prior period results have been recast to conform this presentation. See additional information in “
Note 1—Summary of Significant Accounting Policies
.”
|
(2)
|
The balances represent gross derivative amounts and are not reduced by the impact of legally enforceable master netting agreements that allow us to net
|
|
118
|
Capital One Financial Corporation (COF)
|
|
119
|
Capital One Financial Corporation (COF)
|
|
120
|
Capital One Financial Corporation (COF)
|
|
121
|
Capital One Financial Corporation (COF)
|
NOTE 13—BUSINESS SEGMENTS
|
|
122
|
Capital One Financial Corporation (COF)
|
|
|
Three Months Ended March 31, 2015
|
||||||||||||||||||
(Dollars in millions)
|
|
Credit
Card |
|
Consumer
Banking |
|
Commercial
Banking |
|
Other
|
|
Consolidated
Total |
||||||||||
Net interest income
|
|
$
|
2,666
|
|
|
$
|
1,434
|
|
|
$
|
461
|
|
|
$
|
15
|
|
|
$
|
4,576
|
|
Non-interest income
|
|
816
|
|
|
158
|
|
|
114
|
|
|
(17
|
)
|
|
1,071
|
|
|||||
Total net revenue (loss)
|
|
3,482
|
|
|
1,592
|
|
|
575
|
|
|
(2
|
)
|
|
5,647
|
|
|||||
Provision for credit losses
|
|
669
|
|
|
206
|
|
|
60
|
|
|
0
|
|
|
935
|
|
|||||
Non-interest expense:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Amortization of intangibles:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
PCCR intangible amortization
|
|
84
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
84
|
|
|||||
Core deposit intangible amortization
|
|
0
|
|
|
22
|
|
|
4
|
|
|
0
|
|
|
26
|
|
|||||
Total PCCR and core deposit intangible amortization
|
|
84
|
|
|
22
|
|
|
4
|
|
|
0
|
|
|
110
|
|
|||||
Other non-interest expense
|
|
1,692
|
|
|
948
|
|
|
268
|
|
|
31
|
|
|
2,939
|
|
|||||
Total non-interest expense
|
|
1,776
|
|
|
970
|
|
|
272
|
|
|
31
|
|
|
3,049
|
|
|||||
Income (loss) from continuing operations before income taxes
|
|
1,037
|
|
|
416
|
|
|
243
|
|
|
(33
|
)
|
|
1,663
|
|
|||||
Income tax provision (benefit)
|
|
369
|
|
|
150
|
|
|
88
|
|
|
(78
|
)
|
|
529
|
|
|||||
Income from continuing operations, net of tax
|
|
$
|
668
|
|
|
$
|
266
|
|
|
$
|
155
|
|
|
$
|
45
|
|
|
$
|
1,134
|
|
Loans held for investment
|
|
$
|
81,754
|
|
|
$
|
71,379
|
|
|
$
|
50,741
|
|
|
$
|
104
|
|
|
$
|
203,978
|
|
Deposits
|
|
0
|
|
|
172,502
|
|
|
32,575
|
|
|
5,363
|
|
|
210,440
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
Three Months Ended March 31, 2014
|
||||||||||||||||||
(Dollars in millions)
|
|
Credit
Card |
|
Consumer
Banking |
|
Commercial
Banking |
|
Other
|
|
Consolidated
Total |
||||||||||
Net interest income (expense)
|
|
$
|
2,525
|
|
|
$
|
1,433
|
|
|
$
|
421
|
|
|
$
|
(29
|
)
|
|
$
|
4,350
|
|
Non-interest income
|
|
785
|
|
|
150
|
|
|
87
|
|
|
(2
|
)
|
|
1,020
|
|
|||||
Total net revenue (loss)
|
|
3,310
|
|
|
1,583
|
|
|
508
|
|
|
(31
|
)
|
|
5,370
|
|
|||||
Provision (benefit) for credit losses
|
|
558
|
|
|
140
|
|
|
40
|
|
|
(3
|
)
|
|
735
|
|
|||||
Non-interest expense:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Amortization of intangibles:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
PCCR intangible amortization
|
|
98
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
98
|
|
|||||
Core deposit intangible amortization
|
|
0
|
|
|
30
|
|
|
6
|
|
|
0
|
|
|
36
|
|
|||||
Total PCCR and core deposit intangible amortization
|
|
98
|
|
|
30
|
|
|
6
|
|
|
0
|
|
|
134
|
|
|||||
Other non-interest expense
|
|
1,628
|
|
|
900
|
|
|
249
|
|
|
21
|
|
|
2,798
|
|
|||||
Total non-interest expense
|
|
1,726
|
|
|
930
|
|
|
255
|
|
|
21
|
|
|
2,932
|
|
|||||
Income (loss) from continuing operations before income taxes
|
|
1,026
|
|
|
513
|
|
|
213
|
|
|
(49
|
)
|
|
1,703
|
|
|||||
Income tax provision (benefit)
|
|
358
|
|
|
183
|
|
|
76
|
|
|
(38
|
)
|
|
579
|
|
|||||
Income (loss) from continuing operations, net of tax
|
|
$
|
668
|
|
|
$
|
330
|
|
|
$
|
137
|
|
|
$
|
(11
|
)
|
|
$
|
1,124
|
|
Loans held for investment
|
|
$
|
75,850
|
|
|
$
|
70,727
|
|
|
$
|
46,230
|
|
|
$
|
134
|
|
|
$
|
192,941
|
|
Deposits
|
|
0
|
|
|
171,529
|
|
|
31,485
|
|
|
5,310
|
|
|
208,324
|
|
|
|
|
|
|
|
|
|
|
|
|
|
123
|
Capital One Financial Corporation (COF)
|
NOTE 14—COMMITMENTS, CONTINGENCIES, GUARANTEES AND OTHERS
|
|
124
|
Capital One Financial Corporation (COF)
|
|
|
Estimated Unpaid Principal Balance
|
|
Original Principal Balance
|
||||||||||||||||||||||||
(Dollars in billions)
|
|
March 31, 2015
|
|
December 31, 2014
|
|
Total
|
|
2008
|
|
2007
|
|
2006
|
|
2005
|
||||||||||||||
GSEs
|
|
$
|
2
|
|
|
$
|
3
|
|
|
$
|
11
|
|
|
$
|
1
|
|
|
$
|
4
|
|
|
$
|
3
|
|
|
$
|
3
|
|
Insured Securitizations
|
|
4
|
|
|
4
|
|
|
20
|
|
|
0
|
|
|
2
|
|
|
8
|
|
|
10
|
|
|||||||
Uninsured Securitizations and Other
|
|
16
|
|
|
16
|
|
|
80
|
|
|
3
|
|
|
15
|
|
|
30
|
|
|
32
|
|
|||||||
Total
|
|
$
|
22
|
|
|
$
|
23
|
|
|
$
|
111
|
|
|
$
|
4
|
|
|
$
|
21
|
|
|
$
|
41
|
|
|
$
|
45
|
|
|
125
|
Capital One Financial Corporation (COF)
|
(Dollars in millions)
|
|
GSEs
|
|
Insured
Securitizations
|
|
Uninsured
Securitizations
and Other
|
|
Total
|
||||||||
Open claims as of December 31, 2013
|
|
$
|
89
|
|
|
$
|
1,614
|
|
|
$
|
1,122
|
|
|
$
|
2,825
|
|
Gross new demands received
|
|
22
|
|
|
0
|
|
|
742
|
|
|
764
|
|
||||
Loans repurchased/made whole
|
|
(31
|
)
|
|
0
|
|
|
(5
|
)
|
|
(36
|
)
|
||||
Demands rescinded
|
|
(64
|
)
|
|
(965
|
)
|
|
(12
|
)
|
|
(1,041
|
)
|
||||
Open claims as of December 31, 2014
|
|
$
|
16
|
|
|
$
|
649
|
|
|
$
|
1,847
|
|
|
$
|
2,512
|
|
Gross new demands received
|
|
6
|
|
|
0
|
|
|
1
|
|
|
7
|
|
||||
Loans repurchased/made whole
|
|
(3
|
)
|
|
0
|
|
|
(1
|
)
|
|
(4
|
)
|
||||
Demands rescinded
|
|
(2
|
)
|
|
(1
|
)
|
|
(8
|
)
|
|
(11
|
)
|
||||
Open claims as of March 31, 2015
|
|
$
|
17
|
|
|
$
|
648
|
|
|
$
|
1,839
|
|
|
$
|
2,504
|
|
(1)
|
The open pipeline includes all repurchase requests ever received by our subsidiaries where either the requesting party has not formally rescinded the repurchase request and where our subsidiary has not agreed to either repurchase the loan at issue or make the requesting party whole with respect to its losses. Accordingly, repurchase requests denied by our subsidiaries and not pursued by the counterparty remain in the open pipeline, with the exception of certain aged repurchase requests submitted by parties without contractual standing to pursue such requests, which may be removed from the pipeline. Finally, the amounts reflected in this chart are the original principal balance amounts of the mortgage loans at issue and do not correspond to the losses our subsidiary would incur upon the repurchase of these loans.
|
|
126
|
Capital One Financial Corporation (COF)
|
|
|
Three Months Ended March 31,
|
||||||
(Dollars in millions)
|
|
2015
|
|
2014
|
||||
Representation and warranty reserve, beginning of period
|
|
$
|
731
|
|
|
$
|
1,172
|
|
Provision (benefit) for mortgage representation and warranty losses:
|
|
|
|
|
||||
Recorded in continuing operations
|
|
1
|
|
|
14
|
|
||
Recorded in discontinued operations
|
|
(19
|
)
|
|
(47
|
)
|
||
Total benefit for mortgage representation and warranty losses
|
|
(18
|
)
|
|
(33
|
)
|
||
Net realized losses
|
|
(40
|
)
|
|
(11
|
)
|
||
Representation and warranty reserve, end of period
|
|
$
|
673
|
|
|
$
|
1,128
|
|
(1)
|
Reported on our consolidated balance sheets as a component of other liabilities.
|
|
|
Reserve Liability
|
|
Loans Sold
2005 to 2008
(1)
|
||||||||
(Dollars in millions, except for loans sold)
|
|
March 31, 2015
|
|
December 31, 2014
|
|
|||||||
Selected period-end data:
|
|
|
|
|
|
|
||||||
GSEs and Active Insured Securitizations
|
|
$
|
492
|
|
|
$
|
499
|
|
|
$
|
27
|
|
Inactive Insured Securitizations and Others
|
|
181
|
|
|
232
|
|
|
84
|
|
|||
Total
(2)
|
|
$
|
673
|
|
|
$
|
731
|
|
|
$
|
111
|
|
(1)
|
Reflects, in billions, the total original principal balance of loans originated by our subsidiaries and sold to third-party investors between 2005 and 2008.
|
(2)
|
The total reserve liability includes an immaterial amount related to loans that were originated after 2008.
|
|
127
|
Capital One Financial Corporation (COF)
|
|
128
|
Capital One Financial Corporation (COF)
|
|
129
|
Capital One Financial Corporation (COF)
|
|
130
|
Capital One Financial Corporation (COF)
|
|
131
|
Capital One Financial Corporation (COF)
|
|
132
|
Capital One Financial Corporation (COF)
|
|
133
|
Capital One Financial Corporation (COF)
|
(Dollars in millions, except per share information)
|
|
Total
Number
of Shares
Purchased
(1)
|
|
Average
Price Paid
per Share
(2)
|
|
Total Number of
Shares Purchased as
Part of Publicly
Announced Plans
|
|
Maximum
Amount That May
Yet be Purchased
Under the Plan
or Program
(2)
|
||||||
January
|
|
1,902,000
|
|
|
$
|
78.50
|
|
|
1,902,000
|
|
|
$
|
351
|
|
February
|
|
2,480,461
|
|
|
77.28
|
|
|
2,055,700
|
|
|
192
|
|
||
March
|
|
2,784,970
|
|
|
79.52
|
|
|
2,405,650
|
|
|
—
|
|
||
Total
|
|
7,167,431
|
|
|
78.48
|
|
|
6,363,350
|
|
|
|
(1)
|
Primarily comprised of repurchases under the $2.5 billion common stock repurchase program authorized by our Board of Directors and announced on March 26, 2014, which authorized share repurchases through March 31, 2015. Also includes 424,761 shares and 379,320 shares purchased in February and March respectively, related to the withholding of shares to cover taxes on restricted stock awards whose restrictions have lapsed.
|
(2)
|
Amounts exclude commission costs.
|
|
134
|
Capital One Financial Corporation (COF)
|
|
|
|
|
CAPITAL ONE FINANCIAL CORPORATION
|
|
|
|
|
|
Date: May 5, 2015
|
|
By:
|
|
/s/ STEPHEN S. CRAWFORD
|
|
|
|
|
Stephen. S. Crawford
|
|
|
|
|
Chief Financial Officer
|
|
135
|
Capital One Financial Corporation (COF)
|
Exhibit No.
|
|
Description
|
2.1.1
|
|
Purchase and Sale Agreement, dated as of June 16, 2011, by and among Capital One Financial Corporation, ING Groep N.V., ING Bank N.V., ING Direct N.V. and ING Direct Bancorp (incorporated by reference to Exhibit 2.1 of the Current Report on Form 8-K, filed on June 22, 2011).
|
2.1.2
|
|
First Amendment to the Purchase and Sale Agreement by and among Capital One Financial Corporation, ING Groep N.V., ING Bank N.V., ING Direct N.V. and ING Direct Bancorp, dated as of February 17, 2012 (incorporated by reference to Exhibit 2.2.2 of the 2011 Form 10-K).
|
2.2.1
|
|
Purchase and Assumption Agreement, dated as of August 10, 2011, by and among Capital One Financial Corporation, HSBC Finance Corporation, HSBC USA Inc. and HSBC Technology and Services (USA) Inc. (incorporated by reference to Exhibit 2.1 of the Current Report on Form 8-K, filed on August 12, 2011).
|
2.2.2
|
|
Purchaser Transition Services Agreement between HSBC Technology and Services (USA) Inc. and Capital One Services, LLC, dated as of May 1, 2012 (incorporated by reference to Exhibit 10.1 of the Quarterly Report on Form 10-Q for the period ended June 30, 2012).
|
3.1
|
|
Restated Certificate of Incorporation of Capital One Financial Corporation, (as restated April 30, 2015) (incorporated by reference to Exhibit 3.1 of the Current Report on Form 8-K, filed on May 4, 2015).
|
3.2
|
|
Amended and Restated Bylaws of Capital One Financial Corporation, dated April 30, 2015 (incorporated by reference to Exhibit 3.2 of the Current Report on Form 8-K, filed on May 4, 2015).
|
3.3.1
|
|
Certificate of Designations of Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series B, dated August 16, 2012 (incorporated by reference to Exhibit 3.1 of the Current Report on Form 8-K, filed on August 20, 2012).
|
3.3.2
|
|
Certificate of Designations of Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series C, dated June 11, 2014 (incorporated by reference to Exhibit 3.1 of the Current Report on Form 8-K, filed June 12, 2014).
|
3.3.3
|
|
Certificate of Designations of Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series D, dated October 29, 2014 (incorporated by reference to Exhibit 3.1 of the Current Report on Form 8-K, filed October 31, 2014).
|
4.1.1
|
|
Specimen certificate representing the common stock of Capital One Financial Corporation (incorporated by reference to Exhibit 4.1 of the 2003 Form 10-K).
|
4.1.2
|
|
Warrant Agreement, dated December 3, 2009, between Capital One Financial Corporation and Computershare Trust Company, N.A. (incorporated by reference to the Exhibit 4.1 of the Form 8-A, filed on December 4, 2009).
|
4.1.3
|
|
Deposit Agreement, dated August 20, 2012 (incorporated by reference to Exhibit 4.1 of the Current Report on Form 8-K, filed on August 20, 2012).
|
4.2
|
|
Pursuant to Item 601(b)(4)(iii)(A) of Regulation S-K, copies of instruments defining the rights of holders of long-term debt are not filed. The Company agrees to furnish a copy thereof to the SEC upon request.
|
12.1*
|
|
Computation of Ratio of Earnings to Fixed Charges and Earnings to Combined Fixed Charges and Preferred Stock Dividends.
|
18.1*
|
|
Preferability Letter from Independent Registered Public Accounting Firm.
|
31.1*
|
|
Certification of Richard D. Fairbank.
|
31.2*
|
|
Certification of Stephen S. Crawford.
|
32.1*
|
|
Certification** of Richard D. Fairbank.
|
32.2*
|
|
Certification** of Stephen S. Crawford.
|
101.INS*
|
|
XBRL Instance Document.
|
101.SCH*
|
|
XBRL Taxonomy Extension Schema Document.
|
101.CAL*
|
|
XBRL Taxonomy Extension Calculation Linkbase Document.
|
101.DEF*
|
|
XBRL Taxonomy Extension Definition Linkbase Document.
|
101.LAB*
|
|
XBRL Taxonomy Extension Label Linkbase Document.
|
101.PRE*
|
|
XBRL Taxonomy Extension Presentation Linkbase Document.
|
|
136
|
Capital One Financial Corporation (COF)
|
No information found
* THE VALUE IS THE MARKET VALUE AS OF THE LAST DAY OF THE QUARTER FOR WHICH THE 13F WAS FILED.
FUND | NUMBER OF SHARES | VALUE ($) | PUT OR CALL |
---|
DIRECTORS | AGE | BIO | OTHER DIRECTOR MEMBERSHIPS |
---|---|---|---|
Suni P. Harford Former President, UBS Asset Management Ms. Harford is a seasoned financial services industry executive with over 30 years of risk management, compliance and banking experience. Ms. Harford served as the President of UBS Asset Management as well as Chair of UBS Asset Management’s Executive Committee and Risk Committee from October 2019 until her retirement in February 2024. From April 2021 until February 2024, Ms. Harford also served as the UBS Group Executive Board Lead for the firm’s sustainability and impact efforts. As head of UBS Group’s Sustainability and Impact organization, Ms. Harford had oversight of the Chief Sustainability Office, responsible for sustainability strategy, external engagement and corporate responsibility across UBS. Ms. Harford joined UBS as the Head of Investments in July 2017, where she was responsible for the investment teams for traditional asset classes and UBS O’Connor, a multi-strategy hedge fund, until September 2019. Prior to joining UBS, Ms. Harford worked at Citigroup, Inc., an investment bank and financial services corporation, for almost 25 years, most recently as the Regional Head of Markets for North America. Ms. Harford was also a member of Citibank’s Pension Plan Investment Committee and a director on the board of Citibank Canada. Ms. Harford served as a co-chair of the World Economic Forum Global Future Council on Investing and has held seats on the board of several industry associations, including the Depository Trust and Clearing Corporation and the Securities Industry Financial Management Association. Additional Public Directorships: ∎ None | |||
Richard D. Fairbank Chairman and Chief Executive Officer, Capital One Financial Corporation Mr. Fairbank is the founder, CEO and Chairman of Capital One and one of just a few founder-CEOs among America’s largest public companies. In 1987, Mr. Fairbank founded Capital One on the belief that data and technology could change how banking works. He has been the CEO since the Company’s initial public offering in November 1994, and has served as the Chairman since February 1995. Mr. Fairbank’s vision and leadership have positioned Capital One as a leader in technology, data, and cloud capabilities and the Company has been recognized as one of the most innovative financial services providers in the world. Today, Capital One serves over 100 million customers and has reimagined the banking experience, built an iconic and respected brand, and been consistently recognized as one of the best companies to work for. Prior to Capital One, Mr. Fairbank earned his BA and MBA from Stanford University. He became a strategy consultant, advising leading companies on long-term business strategy and growth opportunities. Mr. Fairbank has over three decades of experience in banking and financial services and is deeply knowledgeable about all aspects of the Company’s businesses, strategies, capabilities and culture. His qualifications as a Director also include his broad range of skills in the areas of strategy, technology, risk management, customer experience, talent, and public company leadership and governance. Additional Public Directorships: ∎ None | |||
Peter Thomas Killalea Former Vice President of Technology, Amazon.com Mr. Killalea, a seasoned technology executive and advisor, has deep expertise in product development, digital innovation, customer experience, and security. From November 2014 to December 2021, Mr. Killalea served as the owner and President of Aoinle, LLC, a consulting firm. From May 1998 to November 2014, Mr. Killalea served in various senior executive leadership roles at Amazon, most recently as Vice President of Technology for the Kindle Content Ecosystem. He led Amazon’s Infrastructure and Distributed Systems team, which later became a key part of the Amazon Web Services Platform. Prior to that, he served as Amazon’s Chief Information Security Officer and Vice President of Security. Mr. Killalea previously served on the board of Xoom Corporation (acquired by PayPal Inc.) from March 2015 to November 2015 and Carbon Black, Inc. (acquired by VMware) from April 2017 to October 2019. Additional Public Directorships: ∎ Akamai Technologies, Inc. ∎ MongoDB, Inc. ∎ Satellogic, Inc. | |||
Peter E. Raskind Former Chairman, President, and Chief Executive Officer, National City Corporation Mr. Raskind has more than 45 years of banking experience, including in corporate banking, retail banking, wealth management/trust, mortgage, operations, technology, strategy, product management, asset/liability management, risk management and acquisition integration. Through his extensive banking career, he has served in a number of senior executive leadership roles and held positions of successively greater responsibility in a broad range of consumer and commercial banking disciplines, including cash management services, corporate finance, international banking, wealth management and corporate trust, retail and small business banking, operations and strategic planning. Most recently, Mr. Raskind was a consultant to banks and equity bank investors as the owner of JMB Consulting, LLC, which he established in February 2009 and managed through 2017. Prior to founding JMB Consulting, Mr. Raskind served as Chairman, President and Chief Executive Officer of National City Corporation, one of the largest banks in the United States, until its merger with PNC Financial Services Group in December 2008. Mr. Raskind has served as a director of United Community Banks, Inc. and Visa USA and Visa International. He also served on the board of directors of the Consumer Bankers Association, was a member of the Financial Services Roundtable, and on the executive committee of the National Automated Clearing House Association. In addition, Mr. Raskind served as Interim Chief Executive Officer of the Cleveland Metropolitan School District in 2011, and in 2010, he served as Interim Chief Executive Officer of the Cleveland-Cuyahoga County Port Authority. Additional Public Directorships: ∎ None | |||
Mayo A. Shattuck III Former Chairman, Exelon Corporation; Former Chairman, President, and Chief Executive Officer, Constellation Energy Group Mr. Shattuck has decades of experience in global corporate finance and lending, corporate strategy, capital markets, risk management, executive compensation, and private banking. He has led two large, publicly held companies and has served on other public company boards. From 2013 to April 2022, Mr. Shattuck served as Chairman of the Board of Chicago-based Exelon Corporation, a Fortune 100 company that owns six utilities and is the nation’s largest competitive energy provider and commercial nuclear plant operator. Previously, Mr. Shattuck was Chairman, President, and Chief Executive Officer of Constellation Energy Group, a position he held from 2001 to 2012. Mr. Shattuck has extensive experience in the financial services industry. He was previously at Deutsche Bank, where he served as Global Head of Investment Banking, Global Head of Private Banking and Chairman of Deutsche Bank Alex. Brown. From 1997 to 1999, Mr. Shattuck served as Vice Chairman of Bankers Trust Corporation, which merged with Deutsche Bank in 1999. In addition, from 1991 to 1997, Mr. Shattuck was President, Chief Operating Officer and a director of Alex. Brown & Sons, an investment bank, which merged with Bankers Trust in 1997. Mr. Shattuck is the former Chairman of the Institute of Nuclear Power Operations. Additional Public Directorships: ∎ Gap, Inc. ∎ Hut 8 Corp. | |||
Ime Archibong Vice President, Product Management and Head of Product at Messenger, Meta Mr. Archibong is a seasoned product and business development technology executive. He has served as Vice President, Product Management and Head of Product at Messenger at Meta Platforms, Inc. (formerly known as Facebook, Inc.) since March 2023. From August 2019 until March 2023, Mr. Archibong served as Meta’s Head of New Product Experimentation, where he led a multi-disciplinary group focused on product research and development. Prior to that role, Mr. Archibong served as Meta’s Vice President, Product Partnerships from November 2010 to June 2020. Prior to joining Meta, from February 2004 to October 2010, Mr. Archibong held roles of increasing responsibility at International Business Machines (IBM), including serving on the Advanced Technology Professional Business Development team focused on the future of storage, the Corporate Strategy team laying the foundation for IBM’s Smarter Cities initiative, and as a software engineer in the Systems and Technology Group. Additional Public Directorships: ∎ None | |||
François Locoh-Donou President, Chief Executive Officer, and Director, F5, Inc. Mr. Locoh-Donou is President and Chief Executive Officer of F5 and a member of the company’s Board of Directors. Since joining F5 as CEO in April 2017, he has spearheaded the company’s business transformation from a networking hardware maker to a software- and SaaS-first leader in multi-cloud application security and delivery. He has also been instrumental in the company’s cultural transformation to a high-performance, human-first organization energized by F5’s purpose to bring a better digital world to life. Prior to joining F5, Locoh-Donou served as Chief Operating Officer at Ciena, a global networking solutions provider to the telecom industry; his leadership positions there also included executive roles in the Product, Sales, and Marketing organizations. He also held research and development roles at Photonetics, a French opto-electronics company. Raised in Togo and France, Locoh-Donou holds engineering degrees from École Centrale de Marseille and Télécom ParisTech in France, as well as an MBA from the Stanford Graduate School of Business. He is the co-founder and chairman of Cajou Espoir, a cashew processing business employing several hundred people, mostly women, in rural Togo. Additional Public Directorships: ∎ F5, Inc. | |||
Eileen Serra Former Senior Advisor, JPMorgan Chase & Co.; Former Chief Executive Officer, Chase Card Services Ms. Serra served in various leadership roles over the course of her more than 20 years in the financial services industry, which included responsibility for operations, product development, customer engagement, digital transformation, strategic and growth initiatives, and talent management. Prior to her financial services experience, Ms. Serra was a partner in a strategy consulting firm. A seasoned credit card industry executive, Ms. Serra served in a variety of executive positions at JPMorgan Chase & Co., including as Chief Executive Officer of Chase Card Services from 2012 to 2016 and most recently as Senior Advisor focusing on strategic growth initiatives from 2016 until her retirement in February 2018. While at JPMorgan Chase, Ms. Serra established and developed successful consumer credit card products and brands, loyalty programs, partner relationships, and digital mobile payment solutions. Prior to joining JPMorgan Chase in 2006, Ms. Serra was a Managing Director and Head of Private Client Banking Solutions at Merrill Lynch. She also served as Senior Vice President at American Express where, among other responsibilities, she led the Small Business Credit Card and Lending businesses. Prior to American Express, she was a partner at McKinsey & Company. Ms. Serra previously served as a director and member of the audit committee of Boxed, Inc. Additional Public Directorships: ∎ Gartner, Inc. | |||
Craig Anthony Williams President, Geographies and Marketplace, NIKE, Inc. Mr. Williams, a seasoned business executive, has extensive experience in general management, marketing, product development, cross-functional team leadership and driving global strategy and operations. He has served as President, Geographies and Marketplace at NIKE, Inc. since May 2023, where he leads NIKE’s four geographies and marketplace across its direct and wholesale business in addition to leading NIKE’s supply chain and logistics. From January 2019 until May 2023, he served as President of Jordan Brand at NIKE, Inc., where he led a cross-functional team focused on the brand’s vision, strategy and global revenue growth. Prior to joining NIKE, Inc., Mr. Williams was the Senior Vice President, The Coca-Cola Co. and President of The Global McDonald’s Division (TMD) from January 2016 to January 2019, where he was responsible for brand and category growth. During his time at The Coca-Cola Co., Mr. Williams held a variety of executive roles within TMD Worldwide, including Senior Vice President and Chief Operating Officer, Vice President U.S., Assistant Vice President of U.S. Marketing and Group Director of U.S. Marketing. Prior to joining The Coca-Cola Co. in June 2005, Mr. Williams was a Global Marketing Director at CIBA Vision Corporation, a contact lenses and lens care product manufacturer, a brand management executive at Kraft Foods Inc., and served as a Naval Nuclear Power Officer in the U.S. Navy. Additional Public Directorships: ∎ None | |||
Christine Detrick Former Director, Head of the Americas Financial Services Practice; Former Senior Advisor, Bain & Company Ms. Detrick is a financial services industry veteran with more than 35 years of senior operating and executive leadership experience. She has deep expertise in the banking and insurance industries across a wide array of sectors, including asset management, credit cards, property and casualty, and life insurance, payments, and other consumer finance segments. From 2002 until 2012, Ms. Detrick was a Senior Partner, Leader of the Financial Services Practice, and a Senior Advisor at Bain & Company, a management consulting firm. Before joining Bain, she served for ten years at A.T. Kearney, Inc., a management consulting firm, including as Leader of the Global Financial Institutions group and a member of the firm’s Board of Management and Board of Directors. At Bain and A.T. Kearney, Ms. Detrick served banks on issues of strategy, operational transformation, risk management, and technology. Prior to those roles, she was a founding member of a venture capital firm specializing in savings and loan institution turnarounds and served as the Chief Executive Officer of St. Louis Bank for Savings. She was also a consultant at McKinsey and Company earlier in her career. Ms. Detrick also serves on the board of Hartford Mutual Funds, a mutual fund company, as chairman of the board. She previously served on the board of directors of Forest City Realty Trust, a public real estate investment trust, as chair of the Compensation Committee, and Reinsurance Group of America, a public reinsurance company, as chair of the Nominating and Governance Committee. Additional Public Directorships: ∎ Altus Power America, Inc. ∎ CRA International, Inc. | |||
Ann Fritz Hackett Former Strategy Consulting Partner Ms. Hackett has extensive experience in leading companies that provide strategy and human capital consulting services to boards of directors and senior management teams. She has experience developing corporate and business strategy, leading change initiatives, risk management, talent management and succession planning, and creating performance-based compensation programs, as well as significant international and technology experience. Ms. Hackett also has extensive board experience. Ms. Hackett is a former Strategy Consulting Partner. From 2015 through January 2020 she was a Partner and Co-founder of Personal Pathways, LLC, a technology company providing a web-based enterprise collaboration insights platform to advance high performance professional relationships required in today’s distributed workplace. Prior to her role at Personal Pathways, she was President of Horizon Consulting Group, LLC, a firm founded by Ms. Hackett in 1996, providing global consumer product and service companies with innovative strategy and human capital initiatives. Prior to launching Horizon Consulting, Ms. Hackett spent 11 years at a leading national strategy consulting firm where she served as Vice President and Partner in the strategy practice, served on the Management Committee, and led Human Resources. She also previously served as a director of Beam, Inc. (predecessor to Suntory Global Spirits) from December 2007 until April 2014. Additional Public Directorships: ∎ Fortune Brands Innovations, Inc. ∎ MasterBrand, Inc. |
Name and Principal Position | Year | Salary | Bonus | Stock Awards |
Change in
Pension Value and Non- Qualified Deferred Compensation Earnings |
All Other
(*) |
Total | |||||||||
Richard D. Fairbank Chairman and CEO |
|
2024 |
|
$— |
$5,500,000 |
$25,206,709 |
$12,143 |
$110,218 |
$30,829,070 |
|||||||
|
2023 |
|
$— |
$5,000,000 |
$23,458,681 |
$10,832 |
$120,060 |
$28,589,573 |
||||||||
|
2022 |
|
$— |
$4,250,000 |
$23,248,940 |
$5,462 |
$100,909 |
$27,605,311 |
||||||||
Andrew M. Young Chief Financial Officer |
|
2024 |
|
$1,034,577 |
$1,950,000 |
$2,829,397 |
$— |
$218,643 |
$6,032,617 |
|||||||
|
2023 |
|
$987,577 |
$1,864,500 |
$2,601,129 |
$— |
$206,771 |
$5,659,977 |
||||||||
|
2022 |
|
$940,692 |
$1,656,200 |
$2,475,108 |
$— |
$190,486 |
$5,262,486 |
||||||||
Frank G. LaPrade, III
|
|
2024 |
|
$1,383,154 |
$2,602,500 |
$3,836,290 |
$— |
$250,460 |
$8,072,404 |
|||||||
|
2023 |
|
$1,341,385 |
$2,524,500 |
$4,345,491 |
$— |
$268,922 |
$8,480,298 |
||||||||
|
2022
|
|
$1,292,154
|
$2,286,200
|
$3,509,283
|
$—
|
$247,826
|
$7,335,463
|
||||||||
Matthew W. Cooper
|
|
2024 |
|
$1,110,077 |
$3,214,500 |
$3,507,062 |
$— |
$216,480 |
$8,048,119 |
|||||||
|
2023 |
|
$— |
$— |
$— |
$— |
$— |
$— |
||||||||
|
2022 |
|
$— |
$— |
$— |
$— |
$— |
$— |
||||||||
Sanjiv Yajnik President, Financial Services |
|
2024 |
|
$1,297,615 |
$2,442,000 |
$3,602,747 |
$— |
$241,719 |
$7,584,081 |
|||||||
|
2023 |
|
$1,259,615 |
$2,370,000 |
$3,604,059 |
$— |
$316,895 |
$7,550,569 |
||||||||
|
2022 |
|
$1,219,077 |
$2,146,200 |
$3,290,407 |
$— |
$310,343 |
$6,966,027 |
Customers
Customer name | Ticker |
---|---|
MGIC Investment Corporation | MTG |
Simon Property Group, Inc. | SPG |
Suppliers
Supplier name | Ticker |
---|---|
Adobe Inc. | ADBE |
Cisco Systems, Inc. | CSCO |
Oracle Corporation | ORCL |
salesforce.com, inc. | CRM |
JPMorgan Chase & Co. | JPM |
Canaan Inc. | CAN |
Mastercard Incorporated | MA |
Canaan Inc. | CAN |
Price
Yield
Owner | Position | Direct Shares | Indirect Shares |
---|---|---|---|
FAIRBANK RICHARD D | - | 3,961,170 | 0 |
FAIRBANK RICHARD D | - | 3,848,410 | 0 |
Blinde Neal | - | 121,472 | 0 |
Blinde Neal | - | 99,256 | 0 |
Alexander Robert M. | - | 67,040 | 2 |
MAHERAS THOMAS G | - | 66,431 | 0 |
Borgmann Kevin S. | - | 66,034 | 0 |
Alexander Robert M. | - | 57,140 | 100 |
HACKETT ANN F | - | 56,244 | 5,005 |
LaPrade,III Frank G. | - | 54,991 | 808 |
Dean Lia | - | 53,810 | 0 |
Cooper Matthew W | - | 50,344 | 0 |
Karam Celia | - | 47,081 | 0 |
LaPrade,III Frank G. | - | 44,711 | 812 |
Borgmann Kevin S. | - | 40,934 | 0 |
Zamsky Michael | - | 30,587 | 0 |
Young Andrew M | - | 28,974 | 59 |
Raghu Ravi | - | 27,180 | 0 |
Zamsky Michael | - | 26,482 | 0 |
Mouadeb Mark Daniel | - | 25,095 | 0 |
Mouadeb Mark Daniel | - | 15,493 | 0 |
West Kara | - | 13,590 | 0 |
Locoh-Donou Francois | - | 13,489 | 0 |
Leenaars Cornelis PAJ | - | 10,999 | 0 |
West Kara | - | 10,450 | 0 |
Golden Timothy P | - | 10,246 | 0 |
Harford Suni P | - | 121 | 0 |