CAPITAL ONE FINANCIAL CORP (Form: 8-K, Received: 07/21/2022 16:07:04)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

____________________________________

FORM 8-K

____________________________________

CURRENT REPORT

Pursuant to Section 13 or 15(d) of

The Securities Exchange Act of 1934

July 21, 2022

Date of Report (Date of earliest event reported)

____________________________________

CAPITAL ONE FINANCIAL CORPORATION

(Exact name of registrant as specified in its charter)

____________________________________


Delaware		001-13300	54-1719854
(State or other jurisdiction of incorporation)		(Commission File Number)	(IRS Employer Identification No.)
1680 Capital One Drive,
McLean,	Virginia		22102
(Address of principal executive offices)			(Zip Code)

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

(Not applicable)

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

____________________________________

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

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

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

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

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

Securities registered pursuant to Section 12(b) of the Act:


Title of Each Class	Trading Symbol(s)	Name of Each Exchange on Which Registered
Common Stock (par value $.01 per share)	COF	New York Stock Exchange
Depositary Shares, Each Representing a 1/40th Interest in a Share of Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series I	COF PRI	New York Stock Exchange
Depositary Shares, Each Representing a 1/40th Interest in a Share of Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series J	COF PRJ	New York Stock Exchange
Depositary Shares, Each Representing a 1/40th Interest in a Share of Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series K	COF PRK	New York Stock Exchange
Depositary Shares, Each Representing a 1/40th Interest in a Share of Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series L	COF PRL	New York Stock Exchange
Depositary Shares, Each Representing a 1/40th Interest in a Share of Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series N	COF PRN	New York Stock Exchange
0.800% Senior Notes Due 2024	COF24	New York Stock Exchange
1.650% Senior Notes Due 2029	COF29	New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02 Results of Operations and Financial Condition.

On July 21, 2022, Capital One Financial Corporation (the “Company”) issued a press release announcing its financial results for the second quarter ended June 30, 2022. Copies of the Company’s press release and financial supplement are attached and furnished herewith as Exhibits 99.1 and 99.2 to this Form 8-K and are incorporated herein by reference.

Note: Information in this report (including Exhibits 99.1 and 99.2) furnished pursuant to Item 2.02 shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that Section.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.


Exhibit No.						Description
99.1						Press Release, dated July 21 , 2022 - Second Quarter 2022
99.2						Financial Supplement - Second Quarter 2022
104						The cover page from this Current Report on Form 8-K, formatted in Inline XBRL

Earnings Conference Call Webcast Information.

The Company will hold an earnings conference call on July 21, 2022 at 5:00 PM Eastern Time. The conference call will be accessible through live webcast. Interested investors and other individuals can access the webcast via the Company’s home page (www.capitalone.com). Under “About,” choose “Investors” to access the Investor Center and view and/or download the earnings press release, the financial supplement, including a reconciliation of non-GAAP financial measures, and the earnings release presentation. A replay of the webcast will be archived on the Company’s website through August 4, 2022 at 5:00 PM Eastern Time.

SIGNATURE

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

CAPITAL ONE FINANCIAL CORPORATION

Date: July 21, 2022

By:

/s/ TIMOTHY P. GOLDEN

Timothy P. Golden

Controller and Principal Accounting Officer

Exhibit 99.1

News Release


Contacts:
Investor Relations		Media Relations
Jeff Norris	Danielle Dietz	Sie Soheili
jeff.norris@capitalone.com	danielle.dietz@capitalone.com	sie.soheili@capitalone.com

FOR IMMEDIATE RELEASE: July 21, 2022

Capital One Reports Second Quarter 2022 Net Income of $2.0 billion,
or $4.96 per share

McLean, Va. (July 21, 2022) – Capital One Financial Corporation (NYSE: COF) today announced net income for the second quarter of 2022 of $2.0 billion, or $4.96 per diluted common share, compared with net income of $2.4 billion, or $5.62 per diluted common share in the first quarter of 2022, and with net income of $3.5 billion, or $7.62 per diluted common share in the second quarter of 2021.

“We continued to drive attractive and resilient growth in the second quarter, and we’re staying focused on the most resilient businesses and opportunities", said Richard D. Fairbank, Founder, Chairman and Chief Executive Officer. "The choices we’re making today put us in a strong position to continue to deliver long-term value as the sweeping digital transformation of banking continues.”

All comparisons below are for the second quarter of 2022 compared with the first quarter of 2022 unless otherwise noted.

Second Quarter 2022 Income Statement Summary:

•Total net revenue increased 1 percent to $8.2 billion.

•Total non-interest expense increased 1 percent to $4.6 billion:

◦9 percent increase in marketing.

◦1 percent decrease in operating expenses.

•Pre-provision earnings increased 1 percent to $3.6 billion.(1)

•Provision for credit losses increased $408 million to $1.1 billion:

◦Net charge-offs of $845 million.

◦$200 million loan reserve build.

•Net interest margin of 6.54 percent, an increase of 5 basis points.

(1)Pre-provision earnings is calculated based on the sum of net interest income and non-interest income, less non-interest expense for the period. Management believes that this financial metric is useful in enabling investors and others to assess the Company’s ability to generate income to cover credit losses through a credit cycle, which can vary significantly between periods.

Capital One Second Quarter 2022 Earnings

Page 2

•Efficiency ratio of 55.67 percent.

•Operating efficiency ratio of 43.49 percent.

Second Quarter 2022 Balance Sheet Summary:

•Common equity Tier 1 capital ratio under Basel III Standardized Approach of 12.1 percent at June 30, 2022.

•Period-end loans held for investment in the quarter increased $15.9 billion, or 6 percent, to $296.4 billion.

◦Credit Card period-end loans increased $6.9 billion, or 6 percent, to $120.9 billion.

•Domestic Card period-end loans increased $7.0 billion, or 6 percent, to $115.0 billion.

◦Consumer Banking period-end loans increased $1.2 billion, or 1 percent, to $81.5 billion.

•Auto period-end loans increased $1.3 billion, or 2 percent, to $79.9 billion.

◦Commercial Banking period-end loans increased $7.8 billion, or 9 percent, to $94.0 billion.

•Average loans held for investment in the quarter increased $10.8 billion, or 4 percent, to $286.1 billion.

◦Credit Card average loans increased $4.4 billion, or 4 percent, to $115.8 billion.

•Domestic Card average loans increased $4.4 billion, or 4 percent, to $110.0 billion.

◦Consumer Banking average loans increased $2.3 billion, or 3 percent, to $81.0 billion.

•Auto average loans increased $2.4 billion, or 3 percent, to $79.3 billion.

◦Commercial Banking average loans increased $4.1 billion, or 5 percent, to $89.3 billion.

•Period-end total deposits decreased $5.5 billion, or 2 percent, to $307.9 billion, while average deposits decreased $3.6 billion, or 1 percent, to $306.0 billion.

•Interest-bearing deposits rate paid increased 12 basis points to 0.44 percent.

Capital One Second Quarter 2022 Earnings

Page 3

Earnings Conference Call Webcast Information

The company will hold an earnings conference call on July 21, 2022 at 5:00 PM Eastern Time. The conference call will be accessible through live webcast. Interested investors and other individuals can access the webcast via the company’s home page (www.capitalone.com). Under “About,” choose “Investors” to access the Investor Center and view and/or download the earnings press release, the financial supplement, including a reconciliation of non-GAAP financial measures, and the earnings release presentation. The replay of the webcast will be archived on the company’s website through August 4, 2022 at 5:00 PM Eastern Time.

Forward-Looking Statements

Certain statements in this release may constitute forward-looking statements, which involve a number of risks and uncertainties. Capital One cautions readers that any forward-looking information is not a guarantee of future performance and that actual results could differ materially from those contained in the forward-looking information due to a number of factors, including those listed from time to time in reports that Capital One files with the Securities and Exchange Commission, including, but not limited to, the Annual Report on Form 10-K for the year ended December 31, 2021.

About Capital One

Capital One Financial Corporation (www.capitalone.com) is a financial holding company whose subsidiaries, which include Capital One, N.A., and Capital One Bank (USA), N.A., had $307.9 billion in deposits and $440.3 billion in total assets as of June 30, 2022. Headquartered in McLean, Virginia, Capital One offers a broad spectrum of financial products and services to consumers, small businesses and commercial clients through a variety of channels. Capital One, N.A. has branches located primarily in New York, Louisiana, Texas, Maryland, Virginia, New Jersey and the District of Columbia. A Fortune 500 company, Capital One trades on the New York Stock Exchange under the symbol “COF” and is included in the S&P 100 index.

###

Exhibit 99.2

Capital One Financial Corporation

Financial Supplement(1)(2)

Second Quarter 2022

Table of Contents


Capital One Financial Corporation Consolidated Results			Page
	Table 1:	Financial Summary—Consolidated	1
	Table 2:	Selected Metrics—Consolidated	3
	Table 3:	Consolidated Statements of Income	4
	Table 4:	Consolidated Balance Sheets	6
	Table 5:	Notes to Financial Summary, Selected Metrics and Consolidated Financial Statements (Tables 1—4)	8
	Table 6:	Average Balances, Net Interest Income and Net Interest Margin	9
	Table 7:	Loan Information and Performance Statistics	10
	Table 8:	Allowance for Credit Losses and Reserve for Unfunded Lending Commitments Activity	12
Business Segment Results
	Table 9:	Financial Summary—Business Segment Results	13
	Table 10:	Financial & Statistical Summary—Credit Card Business	14
	Table 11:	Financial & Statistical Summary—Consumer Banking Business	16
	Table 12:	Financial & Statistical Summary—Commercial Banking Business	17
	Table 13:	Financial & Statistical Summary—Other and Total	18
Other
	Table 14:	Notes to Net Interest Margin, Loan, Allowance and Business Segment Disclosures (Tables 6—13)	19
	Table 15:	Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures	20

__________

(1)The information contained in this Financial Supplement is preliminary and based on data available at the time of the earnings presentation. Investors should refer to our Quarterly Report on Form 10-Q for the period ended June 30, 2022 once it is filed with the Securities and Exchange Commission.

(2)This Financial Supplement includes non-GAAP measures. We believe these non-GAAP measures are useful to investors and users of our financial information as they provide an alternate measurement of our performance and assist in assessing our capital adequacy and the level of return generated. These non-GAAP measures should not be viewed as a substitute for reported results determined in accordance with generally accepted accounting principles in the U.S. (“GAAP”), nor are they necessarily comparable to non-GAAP measures that may be presented by other companies.

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 1: Financial Summary—Consolidated


											2022 Q2 vs.				Six Months Ended June 30,
(Dollars in millions, except per share data and as noted)	2022		2022		2021		2021		2021		2022		2021						2022 vs.
	Q2		Q1		Q4		Q3		Q2		Q1		Q2		2022		2021		2021
Income Statement
Net interest income	$	6,517	$	6,397	$	6,450	$	6,156	$	5,743	2	%	13	%	$	12,914	$	11,565	12	%
Non-interest income	1,715		1,776		1,668		1,674		1,631		(3)		5		3,491		2,922		19
Total net revenue(1)	8,232		8,173		8,118		7,830		7,374		1		12		16,405		14,487		13
Provision (benefit) for credit losses	1,085		677		381		(342)		(1,160)		60		**		1,762		(1,983)		**
Non-interest expense:
Marketing	1,003		918		999		751		620		9		62		1,921		1,121		71
Operating expense	3,580		3,633		3,679		3,435		3,346		(1)		7		7,213		6,585		10
Total non-interest expense	4,583		4,551		4,678		4,186		3,966		1		16		9,134		7,706		19
Income from continuing operations before income taxes	2,564		2,945		3,059		3,986		4,568		(13)		(44)		5,509		8,764		(37)
Income tax provision	533		542		633		882		1,031		(2)		(48)		1,075		1,900		(43)
Income from continuing operations, net of tax	2,031		2,403		2,426		3,104		3,537		(15)		(43)		4,434		6,864		(35)
Loss from discontinued operations, net of tax	—		—		(1)		—		(1)		—		**		—		(3)		**
Net income	2,031		2,403		2,425		3,104		3,536		(15)		(43)		4,434		6,861		(35)
Dividends and undistributed earnings allocated to participating securities(2)	(25)		(28)		(21)		(26)		(30)		(11)		(17)		(53)		(58)		(9)
Preferred stock dividends	(57)		(57)		(74)		(79)		(60)		—		(5)		(114)		(121)		(6)
Issuance cost for redeemed preferred stock(3)	—		—		(34)		(12)		—		—		—		—		—		—
Net income available to common stockholders	$	1,949	$	2,318	$	2,296	$	2,987	$	3,446	(16)		(43)		$	4,267	$	6,682	(36)
Common Share Statistics
Basic earnings per common share:(2)
Net income from continuing operations	$	4.98	$	5.65	$	5.43	$	6.81	$	7.65	(12)	%	(35)	%	$	10.65	$	14.70	(28)	%

Net income per basic common share	$	4.98	$	5.65	$	5.43	$	6.81	$	7.65	(12)		(35)		$	10.65	$	14.70	(28)
Diluted earnings per common share:(2)
Net income from continuing operations	$	4.96	$	5.62	$	5.41	$	6.78	$	7.62	(12)	%	(35)	%	$	10.61	$	14.65	(28)	%

Net income per diluted common share	$	4.96	$	5.62	$	5.41	$	6.78	$	7.62	(12)		(35)		$	10.61	$	14.65	(28)
Weighted-average common shares outstanding (in millions):
Basic	391.2		410.4		422.5		438.8		450.6		(5)	%	(13)	%	400.8		454.6		(12)	%
Diluted	392.6		412.2		424.3		440.5		452.3		(5)		(13)		402.3		456.2		(12)
Common shares outstanding (period-end, in millions)	383.8		399.0		413.9		430.4		446.1		(4)		(14)		383.8		446.1		(14)
Dividends declared and paid per common share	$	0.60	$	0.60	$	0.60	$	1.20	$	0.40	—		50		$	1.20	$	0.80	50
Tangible book value per common share (period-end)(4)	87.84		91.77		99.74		99.60		97.20		(4)		(10)		87.84		97.20		(10)


											2022 Q2 vs.				Six Months Ended June 30,
(Dollars in millions)	2022		2022		2021		2021		2021		2022		2021						2022 vs.
	Q2		Q1		Q4		Q3		Q2		Q1		Q2		2022		2021		2021
Balance Sheet (Period-End)
Loans held for investment	$	296,384	$	280,466	$	277,340	$	261,390	$	249,597	6	%	19	%	$	296,384	$	249,597	19	%
Interest-earning assets	406,565		398,241		397,341		387,208		387,295		2		5		406,565		387,295		5
Total assets	440,288		434,195		432,381		425,377		423,420		1		4		440,288		423,420		4
Interest-bearing deposits	270,881		275,648		272,937		269,134		271,314		(2)		—		270,881		271,314		—
Total deposits	307,885		313,429		310,980		305,938		306,308		(2)		1		307,885		306,308		1
Borrowings	58,938		45,358		43,086		37,501		36,343		30		62		58,938		36,343		62
Common equity	48,564		51,499		56,184		57,632		58,136		(6)		(16)		48,564		58,136		(16)
Total stockholders’ equity	53,410		56,345		61,029		63,544		64,624		(5)		(17)		53,410		64,624		(17)
Balance Sheet (Average Balances)
Loans held for investment	$	286,110	$	275,342	$	267,159	$	253,101	$	246,463	4	%	16	%	$	280,756	$	245,207	14	%
Interest-earning assets	398,934		394,082		390,868		387,766		390,129		1		2		396,521		389,355		2
Total assets	435,327		430,372		427,845		424,506		424,099		1		3		432,806		422,959		2
Interest-bearing deposits	268,104		271,823		269,951		269,278		273,476		(1)		(2)		269,953		273,417		(1)
Total deposits	305,954		309,597		307,272		305,035		308,217		(1)		(1)		307,765		306,645		—
Borrowings	53,208		42,277		39,943		37,464		37,054		26		44		47,773		38,475		24
Common equity	49,319		54,591		56,946		58,230		56,885		(10)		(13)		51,940		56,333		(8)
Total stockholders’ equity	54,165		59,437		62,498		64,682		62,376		(9)		(13)		56,786		61,504		(8)

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 2: Selected Metrics—Consolidated


																2022 Q2 vs.				Six Months Ended June 30,
(Dollars in millions, except as noted)	2022			2022			2021			2021			2021			2022		2021								2022 vs.
	Q2			Q1			Q4			Q3			Q2			Q1		Q2		2022			2021			2021
Performance Metrics
Net interest income growth (period over period)	2		%	(1)		%	5		%	7		%	(1)		%	**		**		12		%	1		%	**
Non-interest income growth (period over period)	(3)			6			—			3			26			**		**		19			26			**
Total net revenue growth (period over period)	1			1			4			6			4			**		**		13			5			**
Total net revenue margin(5)	8.25			8.30			8.31			8.08			7.56			(5)	bps	69	bps	8.27			7.44			83	bps
Net interest margin(6)	6.54			6.49			6.60			6.35			5.89			5		65		6.51			5.94			57
Return on average assets	1.87			2.23			2.27			2.92			3.34			(36)		(147)		2.05			3.25			(120)
Return on average tangible assets(7)	1.93			2.31			2.35			3.03			3.46			(38)		(153)		2.12			3.36			(124)
Return on average common equity(8)	15.81			16.98			16.13			20.52			24.24			(117)		(8)%		16.43			23.73			(7)%
Return on average tangible common equity(9)	22.63			23.36			21.82			27.50			32.75			(73)		(10)		23.03			32.19			(9)
Non-interest expense as a percentage of average loans held for investment	6.41			6.61			7.00			6.62			6.44			(20)		(3)	bps	6.51			6.29			22	bps
Efficiency ratio(10)	55.67			55.68			57.63			53.46			53.78			(1)		189		55.68			53.19			249
Operating efficiency ratio(11)	43.49			44.45			45.32			43.87			45.38			(96)		(189)		43.97			45.45			(148)
Effective income tax rate for continuing operations	20.8			18.4			20.7			22.1			22.6			240		(180)		19.5			21.7			(220)
Employees (period-end, in thousands)	53.6			51.5			50.8			50.8			52.0			4%		3%		53.6			52.0			3%
Credit Quality Metrics
Allowance for credit losses	$	11,491		$	11,308		$	11,430		$	11,573		$	12,346		2%		(7)%		$	11,491		$	12,346		(7)%
Allowance coverage ratio	3.88		%	4.03		%	4.12		%	4.43		%	4.95		%	(15)	bps	(107)	bps	3.88		%	4.95		%	(107)	bps
Net charge-offs	$	845		$	767		$	527		$	426		$	541		10%		56%		$	1,612		$	1,281		26%
Net charge-off rate(12)	1.18		%	1.11		%	0.79		%	0.67		%	0.88		%	7	bps	30	bps	1.15		%	1.04		%	11	bps
30+ day performing delinquency rate	2.36			2.08			2.25			1.97			1.75			28		61		2.36			1.75			61
30+ day delinquency rate	2.54			2.21			2.41			2.13			1.89			33		65		2.54			1.89			65
Capital Ratios(13)
Common equity Tier 1 capital	12.1		%	12.7		%	13.1		%	13.8		%	14.5		%	(60)	bps	(240)	bps	12.1		%	14.5		%	(240)	bps
Tier 1 capital	13.5			14.1			14.5			15.7			16.6			(60)		(310)		13.5			16.6			(310)
Total capital	15.7			16.4			16.9			18.2			18.8			(70)		(310)		15.7			18.8			(310)
Tier 1 leverage	11.1			11.3			11.6			12.2			12.4			(20)		(130)		11.1			12.4			(130)
Tangible common equity (“TCE”)(14)	7.9			8.7			9.9			10.4			10.6			(80)		(270)		7.9			10.6			(270)

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 3: Consolidated Statements of Income


											2022 Q2 vs.				Six Months Ended June 30,
(Dollars in millions, except as noted)	2022		2022		2021		2021		2021		2022		2021						2022 vs.
	Q2		Q1		Q4		Q3		Q2		Q1		Q2		2022		2021		2021
Interest income:
Loans, including loans held for sale	$	6,605	$	6,367	$	6,451	$	6,205	$	5,753	4	%	15	%	$	12,972	$	11,607	12	%
Investment securities	435		402		368		317		370		8		18		837		761		10
Other	55		15		12		16		16		**		**		70		32		119
Total interest income	7,095		6,784		6,831		6,538		6,139		5		16		13,879		12,400		12
Interest expense:
Deposits	293		218		222		228		237		34		24		511		506		1
Securitized debt obligations	65		29		30		29		28		124		132		94		60		57
Senior and subordinated notes	194		131		121		116		122		48		59		325		251		29
Other borrowings	26		9		8		9		9		189		189		35		18		94
Total interest expense	578		387		381		382		396		49		46		965		835		16
Net interest income	6,517		6,397		6,450		6,156		5,743		2		13		12,914		11,565		12
Provision (benefit) for credit losses	1,085		677		381		(342)		(1,160)		60		**		1,762		(1,983)		**
Net interest income after provision for credit losses	5,432		5,720		6,069		6,498		6,903		(5)		(21)		11,152		13,548		(18)
Non-interest income:
Interchange fees, net	1,201		1,033		1,005		1,022		1,016		16		18		2,234		1,833		22
Service charges and other customer-related fees	415		400		435		407		384		4		8		815		736		11

Other	99		343		228		245		231		(71)		(57)		442		353		25
Total non-interest income	1,715		1,776		1,668		1,674		1,631		(3)		5		3,491		2,922		19
Non-interest expense:
Salaries and associate benefits	1,946		2,026		1,941		1,852		1,781		(4)		9		3,972		3,628		9
Occupancy and equipment	481		513		527		481		523		(6)		(8)		994		995		—
Marketing	1,003		918		999		751		620		9		62		1,921		1,121		71
Professional services	458		397		449		358		341		15		34		855		633		35
Communications and data processing	339		339		326		319		315		—		8		678		617		10
Amortization of intangibles	14		14		13		5		5		—		180		28		11		155
Other	342		344		423		420		381		(1)		(10)		686		701		(2)
Total non-interest expense	4,583		4,551		4,678		4,186		3,966		1		16		9,134		7,706		19
Income from continuing operations before income taxes	2,564		2,945		3,059		3,986		4,568		(13)		(44)		5,509		8,764		(37)
Income tax provision	533		542		633		882		1,031		(2)		(48)		1,075		1,900		(43)
Income from continuing operations, net of tax	2,031		2,403		2,426		3,104		3,537		(15)		(43)		4,434		6,864		(35)
Loss from discontinued operations, net of tax	—		—		(1)		—		(1)		—		**		—		(3)		**
Net income	2,031		2,403		2,425		3,104		3,536		(15)		(43)		4,434		6,861		(35)
Dividends and undistributed earnings allocated to participating securities(2)	(25)		(28)		(21)		(26)		(30)		(11)		(17)		(53)		(58)		(9)
Preferred stock dividends	(57)		(57)		(74)		(79)		(60)		—		(5)		(114)		(121)		(6)
Issuance cost for redeemed preferred stock(3)	—		—		(34)		(12)		—		—		—		—		—		—
Net income available to common stockholders	$	1,949	$	2,318	$	2,296	$	2,987	$	3,446	(16)		(43)		$	4,267	$	6,682	(36)



											2022 Q2 vs.				Six Months Ended June 30,
	2022		2022		2021		2021		2021		2022		2021						2022 vs.
	Q2		Q1		Q4		Q3		Q2		Q1		Q2		2022		2021		2021
Basic earnings per common share:(2)
Net income from continuing operations	$	4.98	$	5.65	$	5.43	$	6.81	$	7.65	(12)	%	(35)	%	$	10.65	$	14.70	(28)	%

Net income per basic common share	$	4.98	$	5.65	$	5.43	$	6.81	$	7.65	(12)		(35)		$	10.65	$	14.70	(28)
Diluted earnings per common share:(2)
Net income from continuing operations	$	4.96	$	5.62	$	5.41	$	6.78	$	7.62	(12)		(35)		$	10.61	$	14.65	(28)

Net income per diluted common share	$	4.96	$	5.62	$	5.41	$	6.78	$	7.62	(12)		(35)		$	10.61	$	14.65	(28)
Weighted-average common shares outstanding (in millions):
Basic common shares	391.2		410.4		422.5		438.8		450.6		(5)		(13)		400.8		454.6		(12)
Diluted common shares	392.6		412.2		424.3		440.5		452.3		(5)		(13)		402.3		456.2		(12)

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 4: Consolidated Balance Sheets


											2022 Q2 vs.
	2022		2022		2021		2021		2021		2022		2021
(Dollars in millions)	Q2		Q1		Q4		Q3		Q2		Q1		Q2
Assets:
Cash and cash equivalents:
Cash and due from banks	$	4,825	$	5,107	$	4,164	$	5,444	$	5,312	(6)	%	(9)	%
Interest-bearing deposits and other short-term investments	16,728		21,697		17,582		21,180		29,534		(23)		(43)
Total cash and cash equivalents	21,553		26,804		21,746		26,624		34,846		(20)		(38)
Restricted cash for securitization investors	697		281		308		234		242		148		188
Securities available for sale	83,022		89,076		95,261		98,149		101,766		(7)		(18)
Loans held for investment:
Unsecuritized loans held for investment	271,339		257,505		252,468		238,475		226,130		5		20
Loans held in consolidated trusts	25,045		22,961		24,872		22,915		23,467		9		7
Total loans held for investment	296,384		280,466		277,340		261,390		249,597		6		19
Allowance for credit losses	(11,491)		(11,308)		(11,430)		(11,573)		(12,346)		2		(7)
Net loans held for investment	284,893		269,158		265,910		249,817		237,251		6		20
Loans held for sale	875		1,155		5,888		6,300		6,522		(24)		(87)
Premises and equipment, net	4,238		4,238		4,210		4,204		4,227		—		—
Interest receivable	1,611		1,479		1,460		1,418		1,372		9		17
Goodwill	14,778		14,784		14,782		14,652		14,654		—		1
Other assets	28,621		27,220		22,816		23,979		22,540		5		27
Total assets	$	440,288	$	434,195	$	432,381	$	425,377	$	423,420	1		4


											2022 Q2 vs.
	2022		2022		2021		2021		2021		2022		2021
(Dollars in millions)	Q2		Q1		Q4		Q3		Q2		Q1		Q2
Liabilities:
Interest payable	$	333	$	261	$	281	$	241	$	301	28	%	11	%
Deposits:
Non-interest-bearing deposits	37,004		37,781		38,043		36,804		34,994		(2)		6
Interest-bearing deposits	270,881		275,648		272,937		269,134		271,314		(2)		—
Total deposits	307,885		313,429		310,980		305,938		306,308		(2)		1
Securitized debt obligations	17,466		13,740		14,994		12,635		10,561		27		65
Other debt:
Federal funds purchased and securities loaned or sold under agreements to repurchase	440		594		820		825		845		(26)		(48)
Senior and subordinated notes	30,489		26,976		27,219		23,983		24,878		13		23
Other borrowings	10,543		4,048		53		58		59		160		**
Total other debt	41,472		31,618		28,092		24,866		25,782		31		61
Other liabilities	19,722		18,802		17,005		18,153		15,844		5		24
Total liabilities	386,878		377,850		371,352		361,833		358,796		2		8

Stockholders’ equity:
Preferred stock	0		0		0		0		0		—		—
Common stock	7		7		7		7		7		—		—
Additional paid-in capital, net	34,425		34,286		34,112		35,051		35,472		—		(3)
Retained earnings	54,836		53,099		51,006		48,944		46,461		3		18
Accumulated other comprehensive income (loss)	(6,916)		(4,093)		374		1,360		1,792		69		**
Treasury stock, at cost	(28,942)		(26,954)		(24,470)		(21,818)		(19,108)		7		51
Total stockholders’ equity	53,410		56,345		61,029		63,544		64,624		(5)		(17)
Total liabilities and stockholders’ equity	$	440,288	$	434,195	$	432,381	$	425,377	$	423,420	1		4

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 5: Notes to Financial Summary, Selected Metrics and Consolidated Financial Statements (Tables 1—4)

(1)Total net revenue was reduced by $211 million in Q2 2022, $192 million in Q1 2022, $151 million in Q4 2021, $123 million in Q3 2021 and $175 million in Q2 2021 for credit card finance charges and fees charged-off as uncollectible.

(2)Dividends and undistributed earnings allocated to participating securities and earnings per share are computed independently for each period. Accordingly, the sum of each quarterly amount may not agree to the year-to-date total. We also provide adjusted diluted earnings per share, which is a non-GAAP measure. See “Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures” for additional information on our non-GAAP measures.

(3)On September 1, 2021, we redeemed all outstanding shares of our fixed-to-floating rate non-cumulative perpetual preferred stock Series E, which reduced our net income available to common shareholders by $12 million in Q3 2021. On December 1, 2021, we redeemed all outstanding shares of our fixed rate 5.20% non-cumulative perpetual preferred stock Series G and our fixed rate 6.00% non-cumulative perpetual preferred stock Series H, which together reduced our net income available to common shareholders by $34 million in Q4 2021.

(4)Tangible book value per common share is a non-GAAP measure calculated based on TCE divided by common shares outstanding. See “Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures” for additional information on non-GAAP measures.

(5)Total net revenue margin is calculated based on annualized total net revenue for the period divided by average interest-earning assets for the period.

(6)Net interest margin is calculated based on annualized net interest income for the period divided by average interest-earning assets for the period.

(7)Return on average tangible assets is a non-GAAP measure calculated based on annualized income (loss) from continuing operations, net of tax, for the period divided by average tangible assets for the period. See “Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures” for additional information on non-GAAP measures.

(8)Return on average common equity is calculated based on annualized net income (loss) available to common stockholders less annualized income (loss) from discontinued operations, net of tax, 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.

(9)Return on average tangible common equity is a non-GAAP measure calculated based on annualized net income (loss) available to common stockholders less annualized income (loss) from discontinued operations, net of tax, 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 “Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures” for additional information on non-GAAP measures.

(10)Efficiency ratio is calculated based on total non-interest expense for the period divided by total net revenue for the period. We also provide an adjusted efficiency ratio, which is a non-GAAP measure. See “Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures” for additional information on our non-GAAP measures.

(11)Operating efficiency ratio is calculated based on operating expense for the period divided by total net revenue for the period. We also provide an adjusted operating efficiency ratio, which is a non-GAAP measure. See “Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures” for additional information on our non-GAAP measures.

(12)Net charge-off rate is calculated based on annualized net charge-offs for the period divided by average loans held for investment for the period.

(13)Capital ratios as of the end of Q2 2022 are preliminary and therefore subject to change. See “Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures” for information on the calculation of each of these ratios.

(14)TCE ratio is a non-GAAP measure calculated based on TCE divided by tangible assets. See “Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures” for additional information on non-GAAP measures.

** Not meaningful.

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 6: Average Balances, Net Interest Income and Net Interest Margin


	2022 Q2						2022 Q1						2021 Q2
(Dollars in millions, except as noted)	Average Balance		Interest Income/ Expense		Yield/Rate(1)		Average Balance		Interest Income/ Expense		Yield/Rate		Average Balance		Interest Income/ Expense		Yield/Rate
Interest-earning assets:
Loans, including loans held for sale	$	287,134	$	6,605	9.20	%	$	279,022	$	6,367	9.13	%	$	249,280	$	5,753	9.23	%
Investment securities	92,062		435		1.89		94,700		402		1.70		100,071		370		1.48
Cash equivalents and other	19,738		55		1.10		20,360		15		0.29		40,778		16		0.16
Total interest-earning assets	$	398,934	$	7,095	7.11		$	394,082	$	6,784	6.89		$	390,129	$	6,139	6.29
Interest-bearing liabilities:
Interest-bearing deposits	$	268,104	$	293	0.44		$	271,823	$	218	0.32		$	273,476	$	237	0.35
Securitized debt obligations	15,041		65		1.73		13,740		29		0.84		10,890		28		1.03
Senior and subordinated notes	28,919		194		2.68		26,481		131		1.98		25,487		122		1.92
Other borrowings and liabilities	10,922		26		0.98		3,633		9		1.00		2,198		9		1.67
Total interest-bearing liabilities	$	322,986	$	578	0.72		$	315,677	$	387	0.49		$	312,051	$	396	0.50
Net interest income/spread			$	6,517	6.40				$	6,397	6.40				$	5,743	5.79
Impact of non-interest-bearing funding					0.14						0.09						0.10
Net interest margin					6.54	%					6.49	%					5.89	%



	Six Months Ended June 30,
	2022						2021
(Dollars in millions, except as noted)	Average Balance		Interest Income/ Expense		Yield/Rate(1)		Average Balance		Interest Income/ Expense		Yield/Rate
Interest-earning assets:
Loans, including loans held for sale	$	283,100	$	12,972	9.16	%	$	247,984	$	11,607	9.36	%
Investment securities	93,374		837		1.79		99,189		761		1.53
Cash equivalents and other	20,047		70		0.69		42,182		32		0.15
Total interest-earning assets	$	396,521	$	13,879	7.00		$	389,355	$	12,400	6.37
Interest-bearing liabilities:
Interest-bearing deposits	$	269,953	$	511	0.38		$	273,417	$	506	0.37
Securitized debt obligations	14,394		94		1.31		11,561		60		1.04
Senior and subordinated notes	27,707		325		2.34		26,223		251		1.92
Other borrowings and liabilities	7,298		35		0.98		2,205		18		1.65
Total interest-bearing liabilities	$	319,352	$	965	0.60		$	313,406	$	835	0.53
Net interest income/spread			$	12,914	6.40				$	11,565	5.84
Impact of non-interest-bearing funding					0.11						0.10
Net interest margin					6.51	%					5.94	%

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 7: Loan Information and Performance Statistics


											2022 Q2 vs.				Six Months Ended June 30,
	2022		2022		2021		2021		2021		2022		2021		2022		2021		2022 vs. 2021
(Dollars in millions, except as noted)	Q2		Q1		Q4		Q3		Q2		Q1		Q2
Loans Held for Investment (Period-End)
Credit card:
Domestic credit card	$	115,004	$	107,987	$	108,723	$	99,258	$	95,309	6	%	21	%	$	115,004	$	95,309	21	%
International card businesses	5,876		5,975		6,049		5,772		5,708		(2)		3		5,876		5,708		3
Total credit card	120,880		113,962		114,772		105,030		101,017		6		20		120,880		101,017		20
Consumer banking:
Auto	79,926		78,604		75,779		74,716		71,713		2		11		79,926		71,713		11
Retail banking	1,605		1,726		1,867		2,396		3,046		(7)		(47)		1,605		3,046		(47)
Total consumer banking	81,531		80,330		77,646		77,112		74,759		1		9		81,531		74,759		9
Commercial banking:
Commercial and multifamily real estate	37,845		34,354		35,262		33,096		29,616		10		28		37,845		29,616		28
Commercial and industrial	56,128		51,820		49,660		46,152		44,205		8		27		56,128		44,205		27
Total commercial banking	93,973		86,174		84,922		79,248		73,821		9		27		93,973		73,821		27

Total loans held for investment	$	296,384	$	280,466	$	277,340	$	261,390	$	249,597	6		19		$	296,384	$	249,597	19
Loans Held for Investment (Average)
Credit card:
Domestic credit card	$	109,962	$	105,536	$	102,717	$	96,309	$	91,535	4	%	20	%	$	107,761	$	92,062	17	%
International card businesses	5,873		5,944		5,871		5,737		8,139		(1)		(28)		5,909		8,040		(27)
Total credit card	115,835		111,480		108,588		102,046		99,674		4		16		113,670		100,102		14
Consumer banking:
Auto	79,313		76,892		75,284		73,296		69,543		3		14		78,109		67,873		15
Retail banking	1,668		1,797		2,160		2,700		3,162		(7)		(47)		1,732		3,106		(44)
Total consumer banking	80,981		78,689		77,444		75,996		72,705		3		11		79,841		70,979		12
Commercial banking:
Commercial and multifamily real estate	35,754		34,671		33,591		30,314		30,124		3		19		35,215		29,991		17
Commercial and industrial	53,540		50,502		47,536		44,745		43,960		6		22		52,030		44,135		18
Total commercial banking	89,294		85,173		81,127		75,059		74,084		5		21		87,245		74,126		18
Total average loans held for investment	$	286,110	$	275,342	$	267,159	$	253,101	$	246,463	4		16		$	280,756	$	245,207	14


											2022 Q2 vs.				Six Months Ended June 30,
	2022		2022		2021		2021		2021		2022		2021		2022		2021		2022 vs. 2021
	Q2		Q1		Q4		Q3		Q2		Q1		Q2
Net Charge-Off (Recovery) Rates
Credit card:
Domestic credit card	2.26	%	2.12	%	1.49	%	1.36	%	2.28	%	14	bps	(2)	bps	2.19	%	2.41	%	(22)	bps
International card businesses	3.82		3.20		0.14		2.72		2.41		62		141		3.51		2.36		115
Total credit card	2.34		2.18		1.42		1.43		2.29		16		5		2.26		2.41		(15)
Consumer banking:
Auto	0.61		0.66		0.58		0.18		(0.12)		(5)		73		0.63		0.17		46
Retail banking	3.62		4.31		6.69		2.45		1.41		(69)		221		3.98		1.54		244
Total consumer banking	0.67		0.75		0.75		0.27		(0.06)		(8)		73		0.71		0.23		48
Commercial banking:
Commercial and multifamily real estate	(0.08)		—		—		0.01		0.04		(8)		(12)		(0.04)		0.05		(9)
Commercial and industrial	0.29		0.11		(0.03)		0.07		(0.21)		18		50		0.20		(0.05)		25
Total commercial banking	0.14		0.06		(0.02)		0.05		(0.11)		8		25		0.10		(0.01)		11
Total net charge-offs	1.18		1.11		0.79		0.67		0.88		7		30		1.15		1.04		11
30+ Day Performing Delinquency Rates
Credit card:
Domestic credit card	2.35	%	2.32	%	2.22	%	1.93	%	1.68	%	3	bps	67	bps	2.35	%	1.68	%	67	bps
International card businesses	3.67		3.58		3.42		3.27		2.89		9		78		3.67		2.89		78
Total credit card	2.42		2.38		2.28		2.00		1.75		4		67		2.42		1.75		67
Consumer banking:
Auto	4.47		3.85		4.32		3.65		3.26		62		121		4.47		3.26		121
Retail banking	0.67		0.74		1.92		1.15		0.79		(7)		(12)		0.67		0.79		(12)
Total consumer banking	4.39		3.78		4.26		3.58		3.16		61		123		4.39		3.16		123
Nonperforming Loans and Nonperforming Assets Rates(2)(3)
Credit card:
International card businesses	0.13	%	0.14	%	0.16	%	0.16	%	0.20	%	(1)	bps	(7)	bps	0.13	%	0.20	%	(7)	bps
Total credit card	0.01		0.01		0.01		0.01		0.01		—		—		0.01		0.01		—
Consumer banking:
Auto	0.50		0.41		0.45		0.36		0.29		9		21		0.50		0.29		21
Retail banking	2.61		2.63		2.51		2.20		1.75		(2)		86		2.61		1.75		86
Total consumer banking	0.54		0.46		0.50		0.42		0.35		8		19		0.54		0.35		19
Commercial banking:
Commercial and multifamily real estate	0.78		0.98		1.09		0.87		1.02		(20)		(24)		0.78		1.02		(24)
Commercial and industrial	0.64		0.69		0.64		0.68		1.03		(5)		(39)		0.64		1.03		(39)
Total commercial banking	0.70		0.81		0.82		0.76		1.03		(11)		(33)		0.70		1.03		(33)
Total nonperforming loans	0.37		0.38		0.40		0.35		0.41		(1)		(4)		0.37		0.41		(4)
Total nonperforming assets	0.39		0.40		0.41		0.37		0.43		(1)		(4)		0.39		0.43		(4)

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 8: Allowance for Credit Losses and Reserve for Unfunded Lending Commitments Activity



	Three Months Ended June 30, 2022
	Credit Card						Consumer Banking
(Dollars in millions)	Domestic Card		International Card Businesses		Total Credit Card		Auto		Retail Banking		Total Consumer Banking		Commercial Banking		Total
Allowance for credit losses:
Balance as of March 31, 2022	$	7,968	$	312	$	8,280	$	1,852	$	50	$	1,902	$	1,126	$	11,308
Charge-offs	(920)		(89)		(1,009)		(311)		(20)		(331)		(43)		(1,383)
Recoveries	298		33		331		190		5		195		12		538
Net charge-offs	(622)		(56)		(678)		(121)		(15)		(136)		(31)		(845)
Provision for credit losses	494		87		581		268		13		281		183		1,045
Allowance build (release) for credit losses	(128)		31		(97)		147		(2)		145		152		200
Other changes(4)	—		(17)		(17)		—		—		—		—		(17)
Balance as of June 30, 2022	7,840		326		8,166		1,999		48		2,047		1,278		11,491
Reserve for unfunded lending commitments:
Balance as of March 31, 2022	—		—		—		—		—		—		200		200
Provision for losses on unfunded lending commitments	—		—		—		—		—		—		39		39

Balance as of June 30, 2022	—		—		—		—		—		—		239		239
Combined allowance and reserve as of June 30, 2022	$	7,840	$	326	$	8,166	$	1,999	$	48	$	2,047	$	1,517	$	11,730



	Six Months Ended June 30, 2022
	Credit Card						Consumer Banking
(Dollars in millions)	Domestic Card		International Card Businesses		Total Credit Card		Auto		Retail Banking		Total Consumer Banking		Commercial Banking		Total
Allowance for credit losses:
Balance as of December 31, 2021	$	7,968	$	377	$	8,345	$	1,852	$	66	$	1,918	$	1,167	$	11,430
Charge-offs	(1,787)		(177)		(1,964)		(637)		(43)		(680)		(60)		(2,704)
Recoveries	606		73		679		389		9		398		15		1,092
Net charge-offs	(1,181)		(104)		(1,285)		(248)		(34)		(282)		(45)		(1,612)
Provision for credit losses	1,053		73		1,126		395		16		411		156		1,693
Allowance build (release) for credit losses	(128)		(31)		(159)		147		(18)		129		111		81
Other changes(4)	—		(20)		(20)		—		—		—		—		(20)
Balance as of June 30, 2022	7,840		326		8,166		1,999		48		2,047		1,278		11,491
Reserve for unfunded lending commitments:
Balance as of December 31, 2021	—		—		—		—		—		—		165		165


Provision for losses on unfunded lending commitments	—		—		—		—		—		—		74		74

Balance as of June 30, 2022	—		—		—		—		—		—		239		239
Combined allowance and reserve as of June 30, 2022	$	7,840	$	326	$	8,166	$	1,999	$	48	$	2,047	$	1,517	$	11,730

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 9: Financial Summary—Business Segment Results


	Three Months Ended June 30, 2022										Six Months Ended June 30, 2022
(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking(5)		Other(5)		Total		Credit Card		Consumer Banking		Commercial Banking(5)		Other(5)		Total
Net interest income (loss)	$	3,899	$	2,147	$	635	$	(164)	$	6,517	$	7,738	$	4,260	$	1,242	$	(326)	$	12,914
Non-interest income (loss)	1,410		96		272		(63)		1,715		2,868		201		549		(127)		3,491
Total net revenue (loss)	5,309		2,243		907		(227)		8,232		10,606		4,461		1,791		(453)		16,405
Provision (benefit) for credit losses	581		281		222		1		1,085		1,126		411		230		(5)		1,762
Non-interest expense	2,771		1,286		485		41		4,583		5,554		2,522		973		85		9,134
Income (loss) from continuing operations before income taxes	1,957		676		200		(269)		2,564		3,926		1,528		588		(533)		5,509
Income tax provision (benefit)	466		160		48		(141)		533		935		362		140		(362)		1,075
Income (loss) from continuing operations, net of tax	$	1,491	$	516	$	152	$	(128)	$	2,031	$	2,991	$	1,166	$	448	$	(171)	$	4,434

	Three Months Ended March 31, 2022
(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking(5)		Other(5)		Total
Net interest income (loss)	$	3,839	$	2,113	$	607	$	(162)	$	6,397
Non-interest income (loss)	1,458		105		277		(64)		1,776
Total net revenue (loss)	5,297		2,218		884		(226)		8,173
Provision (benefit) for credit losses	545		130		8		(6)		677
Non-interest expense	2,783		1,236		488		44		4,551
Income (loss) from continuing operations before income taxes	1,969		852		388		(264)		2,945
Income tax provision (benefit)	469		202		92		(221)		542
Income (loss) from continuing operations, net of tax	$	1,500	$	650	$	296	$	(43)	$	2,403

	Three Months Ended June 30, 2021										Six Months Ended June 30, 2021
(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking(5)		Other(5)		Total		Credit Card		Consumer Banking		Commercial Banking(5)		Other(5)		Total
Net interest income (loss)	$	3,217	$	2,101	$	460	$	(35)	$	5,743	$	6,589	$	4,131	$	980	$	(135)	$	11,565
Non-interest income (loss)	1,253		144		257		(23)		1,631		2,282		285		497		(142)		2,922
Total net revenue (loss)	4,470		2,245		717		(58)		7,374		8,871		4,416		1,477		(277)		14,487
Provision (benefit) for credit losses	(635)		(306)		(219)		—		(1,160)		(1,127)		(432)		(422)		(2)		(1,983)
Non-interest expense	2,263		1,123		417		163		3,966		4,398		2,240		836		232		7,706
Income (loss) from continuing operations before income taxes	2,842		1,428		519		(221)		4,568		5,600		2,608		1,063		(507)		8,764
Income tax provision (benefit)	672		337		123		(101)		1,031		1,325		615		251		(291)		1,900
Income (loss) from continuing operations, net of tax	$	2,170	$	1,091	$	396	$	(120)	$	3,537	$	4,275	$	1,993	$	812	$	(216)	$	6,864

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 10: Financial & Statistical Summary—Credit Card Business


																2022 Q2 vs.				Six Months Ended June 30,
	2022			2022			2021			2021			2021			2022		2021								2022 vs.
(Dollars in millions, except as noted)	Q2			Q1			Q4			Q3			Q2			Q1		Q2		2022			2021			2021
Credit Card
Earnings:
Net interest income	$	3,899		$	3,839		$	3,865		$	3,620		$	3,217		2%		21%		$	7,738		$	6,589		17%
Non-interest income	1,410			1,458			1,261			1,263			1,253			(3)		13		2,868			2,282			26
Total net revenue	5,309			5,297			5,126			4,883			4,470			—		19		10,606			8,871			20
Provision (benefit) for credit losses	581			545			423			(198)			(635)			7		**		1,126			(1,127)			**
Non-interest expense	2,771			2,783			2,799			2,424			2,263			—		22		5,554			4,398			26
Income from continuing operations before income taxes	1,957			1,969			1,904			2,657			2,842			(1)		(31)		3,926			5,600			(30)
Income tax provision	466			469			451			627			672			(1)		(31)		935			1,325			(29)
Income from continuing operations, net of tax	$	1,491		$	1,500		$	1,453		$	2,030		$	2,170		(1)		(31)		$	2,991		$	4,275		(30)
Selected performance metrics:
Period-end loans held for investment	$	120,880		$	113,962		$	114,772		$	105,030		$	101,017		6		20		$	120,880		$	101,017		20
Average loans held for investment	115,835			111,480			108,588			102,046			99,674			4		16		113,670			100,102			14
Average yield on loans outstanding(1)	15.24		%	14.97		%	14.94		%	14.88		%	14.04		%	27	bps	120	bps	15.11		%	14.26		%	85	bps
Total net revenue margin(6)	18.33			18.56			18.11			18.33			17.59			(23)		74		18.44			17.38			106
Net charge-off rate	2.34			2.18			1.42			1.43			2.29			16		5		2.26			2.41			(15)
30+ day performing delinquency rate	2.42			2.38			2.28			2.00			1.75			4		67		2.42			1.75			67
30+ day delinquency rate	2.42			2.39			2.29			2.00			1.75			3		67		2.42			1.75			67
Nonperforming loan rate(2)	0.01			0.01			0.01			0.01			0.01			—		—		0.01			0.01			—
Purchase volume(7)	$	148,491		$	133,662		$	149,982		$	136,614		$	132,676		11%		12%		$	282,153		$	241,009		17%


																2022 Q2 vs.				Six Months Ended June 30,
	2022			2022			2021			2021			2021			2022		2021								2022 vs.
(Dollars in millions, except as noted)	Q2			Q1			Q4			Q3			Q2			Q1		Q2		2022			2021			2021
Domestic Card
Earnings:
Net interest income	$	3,651		$	3,620		$	3,558		$	3,319		$	2,944		1%		24%		$	7,271		$	6,039		20%
Non-interest income	1,340			1,248			1,190			1,200			1,183			7		13		2,588			2,142			21
Total net revenue	4,991			4,868			4,748			4,519			4,127			3		21		9,859			8,181			21
Provision (benefit) for credit losses	494			559			384			(200)			(561)			(12)		**		1,053			(1,052)			**
Non-interest expense	2,594			2,564			2,564			2,191			2,034			1		28		5,158			3,957			30
Income from continuing operations before income taxes	1,903			1,745			1,800			2,528			2,654			9		(28)		3,648			5,276			(31)
Income tax provision	450			414			424			597			626			9		(28)		864			1,245			(31)
Income from continuing operations, net of tax	$	1,453		$	1,331		$	1,376		$	1,931		$	2,028		9		(28)		$	2,784		$	4,031		(31)
Selected performance metrics:
Period-end loans held for investment	$	115,004		$	107,987		$	108,723		$	99,258		$	95,309		6		21		$	115,004		$	95,309		21
Average loans held for investment	109,962			105,536			102,717			96,309			91,535			4		20		107,761			92,062			17
Average yield on loans outstanding(1)	15.03		%	14.82		%	14.86		%	14.80		%	13.91		%	21	bps	112	bps	14.92		%	14.13		%	79	bps
Total net revenue margin(6)	18.16			18.28			18.14			18.40			17.66			(12)		50		18.21			17.40			81
Net charge-off rate	2.26			2.12			1.49			1.36			2.28			14		(2)		2.19			2.41			(22)
30+ day performing delinquency rate	2.35			2.32			2.22			1.93			1.68			3		67		2.35			1.68			67
Purchase volume(7)	$	144,668		$	126,284		$	138,825		$	126,057		$	122,456		15%		18%		$	270,952		$	222,416		22%
Refreshed FICO scores:(8)
Greater than 660	70		%	70		%	71		%	71		%	72		%	—		(2)		70		%	72		%	(2)
660 or below	30			30			29			29			28			—		2		30			28			2
Total	100		%	100		%	100		%	100		%	100		%					100		%	100		%

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 11: Financial & Statistical Summary—Consumer Banking Business


																2022 Q2 vs.				Six Months Ended June 30,
	2022			2022			2021			2021			2021			2022		2021								2022 vs.
(Dollars in millions, except as noted)	Q2			Q1			Q4			Q3			Q2			Q1		Q2		2022			2021			2021
Consumer Banking
Earnings:
Net interest income	$	2,147		$	2,113		$	2,158		$	2,159		$	2,101		2%		2%		$	4,260		$	4,131		3%
Non-interest income	96			105			142			127			144			(9)		(33)		201			285			(29)
Total net revenue	2,243			2,218			2,300			2,286			2,245			1		—		4,461			4,416			1
Provision (benefit) for credit losses	281			130			2			(91)			(306)			116		**		411			(432)			**
Non-interest expense	1,286			1,236			1,285			1,186			1,123			4		15		2,522			2,240			13
Income from continuing operations before income taxes	676			852			1,013			1,191			1,428			(21)		(53)		1,528			2,608			(41)
Income tax provision	160			202			239			282			337			(21)		(53)		362			615			(41)
Income from continuing operations, net of tax	$	516		$	650		$	774		$	909		$	1,091		(21)		(53)		$	1,166		$	1,993		(41)
Selected performance metrics:
Period-end loans held for investment	$	81,531		$	80,330		$	77,646		$	77,112		$	74,759		1		9		$	81,531		$	74,759		9
Average loans held for investment	80,981			78,689			77,444			75,996			72,705			3		11		79,841			70,979			12
Average yield on loans held for investment(1)	7.08		%	7.17		%	7.55		%	7.78		%	7.99		%	(9)	bps	(91)	bps	7.13		%	8.07		%	(94)	bps
Auto loan originations	$	10,328		$	11,713		$	9,721		$	11,570		$	12,959		(12)%		(20)%		$	22,041		$	21,792		1%
Period-end deposits	255,904			258,359			256,407			252,387			251,155			(1)		2		255,904			251,155			2
Average deposits	254,336			255,265			253,372			251,307			252,488			—		1		254,798			251,002			2
Average deposits interest rate	0.38		%	0.29		%	0.30		%	0.30		%	0.31		%	9	bps	7	bps	0.33		%	0.33		%	—
Net charge-off (recovery) rate	0.67			0.75			0.75			0.27			(0.06)			(8)		73		0.71			0.23			48	bps
30+ day performing delinquency rate	4.39			3.78			4.26			3.58			3.16			61		123		4.39			3.16			123
30+ day delinquency rate	4.81			4.13			4.66			3.88			3.40			68		141		4.81			3.40			141
Nonperforming loan rate(2)	0.54			0.46			0.50			0.42			0.35			8		19		0.54			0.35			19
Nonperforming asset rate(3)	0.60			0.52			0.56			0.47			0.40			8		20		0.60			0.40			20
Auto—At origination FICO scores:(9)
Greater than 660	52		%	51		%	50		%	49		%	48		%	1%		4%		52		%	48		%	4%
621 - 660	20			20			20			20			20			—		—		20			20			—
620 or below	28			29			30			31			32			(1)		(4)		28			32			(4)
Total	100		%	100		%	100		%	100		%	100		%					100		%	100		%

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 12: Financial & Statistical Summary—Commercial Banking Business


																2022 Q2 vs.				Six Months Ended June 30,
	2022			2022			2021			2021			2021			2022		2021								2022 vs.
(Dollars in millions, except as noted)	Q2			Q1			Q4			Q3			Q2			Q1		Q2		2022			2021			2021
Commercial Banking
Earnings:
Net interest income	$	635		$	607		$	595		$	578		$	460		5%		38%		$	1,242		$	980		27%
Non-interest income	272			277			345			306			257			(2)		6		549			497			10
Total net revenue(5)	907			884			940			884			717			3		26		1,791			1,477			21
Provision (benefit) for credit losses	222			8			(44)			(53)			(219)			**		**		230			(422)			**
Non-interest expense	485			488			520			459			417			(1)		16		973			836			16
Income from continuing operations before income taxes	200			388			464			478			519			(48)		(61)		588			1,063			(45)
Income tax provision	48			92			109			113			123			(48)		(61)		140			251			(44)
Income from continuing operations, net of tax	$	152		$	296		$	355		$	365		$	396		(49)		(62)		$	448		$	812		(45)
Selected performance metrics:
Period-end loans held for investment	$	93,973		$	86,174		$	84,922		$	79,248		$	73,821		9		27		$	93,973		$	73,821		27
Average loans held for investment	89,294			85,173			81,127			75,059			74,084			5		21		87,245			74,126			18
Average yield on loans held for investment(1)(5)	3.18		%	2.66		%	2.71		%	2.77		%	2.72		%	52	bps	46	bps	2.92		%	2.74		%	18	bps
Period-end deposits	$	38,844		$	45,232		$	44,809		$	43,347		$	42,973		(14)%		(10)%		$	38,844		$	42,973		(10)%
Average deposits	40,536			45,008			44,206			42,729			42,311			(10)		(4)		42,760			41,215			4
Average deposits interest rate	0.19		%	0.12		%	0.12		%	0.15		%	0.14		%	70	bps	5	bps	0.15		%	0.16		%	(1)	bps
Net charge-off (recovery) rate	0.14			0.06			(0.02)			0.05			(0.11)			8		25		0.10			(0.01)			11
Nonperforming loan rate(2)	0.70			0.81			0.82			0.76			1.03			(11)		(33)		0.70			1.03			(33)
Nonperforming asset rate(3)	0.70			0.81			0.82			0.76			1.03			(11)		(33)		0.70			1.03			(33)
Risk category:(10)
Noncriticized	$	88,349		$	80,586		$	79,014		$	73,218		$	67,481		10%		31%		$	88,349		$	67,481		31%
Criticized performing	4,969			4,893			5,209			5,429			5,581			2		(11)		4,969			5,581			(11)
Criticized nonperforming	655			695			699			601			759			(6)		(14)		655			759			(14)
Total commercial banking loans	$	93,973		$	86,174		$	84,922		$	79,248		$	73,821		9		27		$	93,973		$	73,821		27
Risk category as a percentage of period-end loans held for investment:(10)
Noncriticized	94.01		%	93.51		%	93.05		%	92.39		%	91.41		%	50	bps	260	bps	94.01		%	91.41		%	260	bps
Criticized performing	5.29			5.68			6.13			6.85			7.56			(39)		(227)		5.29			7.56			(227)
Criticized nonperforming	0.70			0.81			0.82			0.76			1.03			(11)		(33)		0.70			1.03			(33)
Total commercial banking loans	100.00		%	100.00		%	100.00		%	100.00		%	100.00		%					100.00		%	100.00		%

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 13: Financial & Statistical Summary—Other and Total


											2022 Q2 vs.				Six Months Ended June 30,
	2022		2022		2021		2021		2021		2022		2021						2022 vs.
(Dollars in millions)	Q2		Q1		Q4		Q3		Q2		Q1		Q2		2022		2021		2021
Other
Earnings:
Net interest loss	$	(164)	$	(162)	$	(168)	$	(201)	$	(35)	1	%	**		$	(326)	$	(135)	141	%
Non-interest loss	(63)		(64)		(80)		(22)		(23)		(2)		174	%	(127)		(142)		(11)
Total net loss(5)	(227)		(226)		(248)		(223)		(58)		—		**		(453)		(277)		64
Provision (benefit) for credit losses	1		(6)		—		—		—		**		**		(5)		(2)		150
Non-interest expense(11)	41		44		74		117		163		(7)		(75)		85		232		(63)
Loss from continuing operations before income taxes	(269)		(264)		(322)		(340)		(221)		2		22		(533)		(507)		5
Income tax benefit	(141)		(221)		(166)		(140)		(101)		(36)		40		(362)		(291)		24
Loss from continuing operations, net of tax	$	(128)	$	(43)	$	(156)	$	(200)	$	(120)	198		7		$	(171)	$	(216)	(21)
Selected performance metrics:
Period-end deposits	$	13,137	$	9,838	$	9,764	$	10,204	$	12,180	34		8		$	13,137	$	12,180	8
Average deposits	11,082		9,324		9,694		10,999		13,418		19		(17)		10,207		14,428		(29)
Total
Earnings:
Net interest income	$	6,517	$	6,397	$	6,450	$	6,156	$	5,743	2	%	13	%	$	12,914	$	11,565	12	%
Non-interest income	1,715		1,776		1,668		1,674		1,631		(3)		5		3,491		2,922		19
Total net revenue	8,232		8,173		8,118		7,830		7,374		1		12		16,405		14,487		13
Provision (benefit) for credit losses	1,085		677		381		(342)		(1,160)		60		**		1,762		(1,983)		**
Non-interest expense	4,583		4,551		4,678		4,186		3,966		1		16		9,134		7,706		19
Income from continuing operations before income taxes	2,564		2,945		3,059		3,986		4,568		(13)		(44)		5,509		8,764		(37)
Income tax provision	533		542		633		882		1,031		(2)		(48)		1,075		1,900		(43)
Income from continuing operations, net of tax	$	2,031	$	2,403	$	2,426	$	3,104	$	3,537	(15)		(43)		$	4,434	$	6,864	(35)
Selected performance metrics:
Period-end loans held for investment	$	296,384	$	280,466	$	277,340	$	261,390	$	249,597	6		19		$	296,384	$	249,597	19
Average loans held for investment	286,110		275,342		267,159		253,101		246,463		4		16		280,756		245,207		14
Period-end deposits	307,885		313,429		310,980		305,938		306,308		(2)		1		307,885		306,308		1
Average deposits	305,954		309,597		307,272		305,035		308,217		(1)		(1)		307,765		306,645		—

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 14: Notes to Net Interest Margin, Loan, Allowance and Business Segment Disclosures (Tables 6—13)

(1)Average yield is calculated based on annualized interest income for the period divided by average loans during the period. Annualized interest income does not include any allocations, such as funds transfer pricing. Average yield is calculated using whole dollar values for average balances and interest income/expense. Accordingly, total interest earning assets less total interest bearing liabilities may not total net interest income/spread.

(2)Nonperforming loan rates are calculated based on nonperforming loans for each category divided by period-end total loans held for investment for each respective category. For Commercial Banking, loans categorized as nonperforming are considered criticized nonperforming.

(3)Nonperforming assets consist of nonperforming loans, repossessed assets and other foreclosed assets. The total nonperforming asset rate is calculated based on total nonperforming assets divided by the combined period-end total loans held for investment, repossessed assets and other foreclosed assets.

(4)Primarily represents foreign currency translation adjustments.

(5)Some of our commercial investments generate tax-exempt income, tax credits or other tax benefits. Accordingly, we present our Commercial Banking revenue and yields on a taxable-equivalent basis, calculated using the federal statutory tax rate of 21% and state taxes where applicable, with offsetting reductions to the Other category.

(6)Total net revenue margin is calculated based on total net revenue for the period divided by average loans outstanding during the period.

(7)Purchase volume consists of purchase transactions, net of returns, for the period, and excludes cash advance and balance transfer transactions.

(8)Percentages represent period-end loans held for investment in each credit score category. Domestic Card 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.

(9)Percentages represent period-end loans held for investment in each credit score category. Auto credit scores generally represent average FICO scores obtained from three credit bureaus at the time of application and are not refreshed thereafter. Balances for which no credit score is available or the credit score is invalid are included in the 620 or below category.

(10)Criticized exposures correspond to the “Special Mention,” “Substandard” and “Doubtful” asset categories defined by bank regulatory authorities.

(11)Includes charges incurred as a result of restructuring activities.

** Not meaningful.

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures(1)


	Basel III Standardized Approach
(Dollars in millions, except as noted)	June 30, 2022			March 31, 2022			December 31, 2021			September 30, 2021			June 30, 2021
Regulatory Capital Metrics
Common equity excluding AOCI	$	57,278		$	57,390		$	58,206		$	58,705		$	58,969
Adjustments:
AOCI, net of tax(2)	(72)			(20)			(23)			(33)			(5)
Goodwill, net of related deferred tax liabilities	(14,548)			(14,559)			(14,562)			(14,435)			(14,440)
Intangible assets, net of related deferred tax liabilities	(80)			(94)			(108)			(84)			(76)
Other	(15)			(16)			(12)			(15)			(16)
Common equity Tier 1 capital	$	42,563		$	42,701		$	43,501		$	44,138		$	44,432
Tier 1 capital	$	47,408		$	47,547		$	48,346		$	50,049		$	50,920
Total capital(3)	55,104			55,059			56,089			57,851			57,932
Risk-weighted assets	352,064			336,739			332,673			318,729			307,334
Adjusted average assets(4)	427,446			418,957			415,141			411,216			411,032
Capital Ratios
Common equity Tier 1 capital(5)	12.1		%	12.7		%	13.1		%	13.8		%	14.5		%
Tier 1 capital(6)	13.5			14.1			14.5			15.7			16.6
Total capital(7)	15.7			16.4			16.9			18.2			18.8
Tier 1 leverage(4)	11.1			11.3			11.6			12.2			12.4
Tangible common equity (“TCE”)(8)	7.9			8.7			9.9			10.4			10.6

Reconciliation of Non-GAAP Measures

The following non-GAAP measures consist of our adjusted results that we believe help investors and users of our financial information understand the effect of adjusting items on our selected reported results. These adjusted results provide alternate measurements of our operating performance, both for the current period and trends across multiple periods. The following tables present reconciliations of these non-GAAP measures to the applicable amounts measured in accordance with GAAP.


	2022		2022		2021		2021			2021			Six Months Ended June 30,
(Dollars in millions, except per share data and as noted)	Q2		Q1		Q4		Q3			Q2			2022		2021
Adjusted diluted earnings per share (“EPS”):
Net income available to common stockholders (GAAP)	$	1,949	$	2,318	$	2,296	$	2,987		$	3,446		$	4,267	$	6,682
Legal reserve activity, including insurance recoveries	—		—		—		45			55			—		55


Adjusted net income available to common stockholders before income tax impacts (non-GAAP)	1,949		2,318		2,296		3,032			3,501			4,267		6,737
Income tax impacts	—		—		—		(11)			(13)			—		(13)

Adjusted net income available to common stockholders (non-GAAP)	$	1,949	$	2,318	$	2,296	$	3,021		$	3,488		$	4,267	$	6,724

Diluted weighted-average common shares outstanding (in millions) (GAAP)	392.6		412.2		424.3		440.5			452.3			402.3		456.2

Diluted EPS (GAAP)	$	4.96	$	5.62	$	5.41	$	6.78		$	7.62		$	10.61	$	14.65
Impact of adjustments noted above	—		—		—		0.08			0.09			—		0.09
Adjusted diluted EPS (non-GAAP)	$	4.96	$	5.62	$	5.41	$	6.86		$	7.71		$	10.61	$	14.74

Adjusted efficiency ratio:
Non-interest expense (GAAP)	$	4,583	$	4,551	$	4,678	$	4,186		$	3,966		$	9,134	$	7,706
Legal reserve activity, including insurance recoveries	—		—		—		(45)			(55)			—		(55)

Adjusted non-interest expense (non-GAAP)	$	4,583	$	4,551	$	4,678	$	4,141		$	3,911		$	9,134	$	7,651

Total net revenue (GAAP)	$	8,232	$	8,173	$	8,118	$	7,830		$	7,374		$	16,405	$	14,487




Efficiency ratio (GAAP)	55.67%		55.68%		57.63%		53.46%			53.78%			55.68%		53.19%
Impact of adjustments noted above	—		—		—		(57)		bps	(74)		bps	—		(38)		bps
Adjusted efficiency ratio (non-GAAP)	55.67%		55.68%		57.63%		52.89%			53.04%			55.68%		52.81%

Adjusted operating efficiency ratio:
Operating expense (GAAP)	$	3,580	$	3,633	$	3,679	$	3,435		$	3,346		$	7,213	$	6,585
Legal reserve activity, including insurance recoveries	—		—		—		(45)			(55)			—		(55)

Adjusted operating expense (non-GAAP)	$	3,580	$	3,633	$	3,679	$	3,390		$	3,291		$	7,213	$	6,530

Total net revenue (GAAP)	$	8,232	$	8,173	$	8,118	$	7,830		$	7,374		$	16,405	$	14,487



Operating efficiency ratio (GAAP)	43.49%		44.45%		45.32%		43.87%			45.38%			43.97%		45.45%
Impact of adjustments noted above	—		—		—		(57)		bps	(75)		bps	—		(38)		bps
Adjusted operating efficiency ratio (non-GAAP)	43.49%		44.45%		45.32%		43.30%			44.63%			43.97%		45.07%

Reconciliation of Non-GAAP Measures

The following non-GAAP measures consist of TCE, tangible assets and metrics computed using these amounts, which include tangible book value per common share, return on average tangible assets, return on average TCE and TCE ratio. We consider these metrics to be key financial performance measures that management uses in assessing capital adequacy and the level of returns generated. While our non-GAAP measures are widely used by investors, analysts and bank regulatory agencies to assess the capital position of financial services companies, they may not be comparable to similarly-titled measures reported by other companies. The following tables present reconciliations of these non-GAAP measures to the applicable amounts measured in accordance with GAAP.


	2022		2022		2021		2021		2021
(Dollars in millions)	Q2		Q1		Q4		Q3		Q2
Tangible Common Equity (Period-End)
Stockholders’ equity	$	53,410	$	56,345	$	61,029	$	63,544	$	64,624
Goodwill and intangible assets(9)	(14,850)		(14,883)		(14,907)		(14,766)		(14,774)
Noncumulative perpetual preferred stock	(4,845)		(4,845)		(4,845)		(5,912)		(6,488)
Tangible common equity	$	33,715	$	36,617	$	41,277	$	42,866	$	43,362
Tangible Common Equity (Average)
Stockholders’ equity	$	54,165	$	59,437	$	62,498	$	64,682	$	62,376
Goodwill and intangible assets(9)	(14,875)		(14,904)		(14,847)		(14,777)		(14,788)
Noncumulative perpetual preferred stock	(4,845)		(4,845)		(5,552)		(6,452)		(5,491)
Tangible common equity	$	34,445	$	39,688	$	42,099	$	43,453	$	42,097
Tangible Assets (Period-End)
Total assets	$	440,288	$	434,195	$	432,381	$	425,377	$	423,420
Goodwill and intangible assets(9)	(14,850)		(14,883)		(14,907)		(14,766)		(14,774)
Tangible assets	$	425,438	$	419,312	$	417,474	$	410,611	$	408,646
Tangible Assets (Average)
Total assets	$	435,327	$	430,372	$	427,845	$	424,506	$	424,099
Goodwill and intangible assets(9)	(14,875)		(14,904)		(14,847)		(14,777)		(14,788)
Tangible assets	$	420,452	$	415,468	$	412,998	$	409,729	$	409,311

__________

(1)Regulatory capital metrics and capital ratios as of June 30, 2022 are preliminary and therefore subject to change.

(2)Excludes certain components of AOCI as permitted under the Tailoring Rules.

(3)Total capital equals the sum of Tier 1 capital and Tier 2 capital.

(4)Adjusted average assets for the purpose of calculating our Tier 1 leverage ratio represents total average assets adjusted for amounts that are deducted from Tier 1 capital, predominately goodwill and intangible assets. Tier 1 leverage ratio is a regulatory capital measure calculated based on Tier 1 capital divided by adjusted average 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 capital ratio is a regulatory capital measure calculated based on Tier 1 capital divided by risk-weighted assets.

(7)Total capital ratio is a regulatory capital measure calculated based on total capital divided by risk-weighted assets.

(8)TCE ratio is a non-GAAP measure calculated based on TCE divided by tangible assets.

(9)Includes impact of related deferred taxes.