☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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) |
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 F | COF PRF | New York Stock Exchange | ||||||
Depositary Shares, Each Representing a 1/40th Interest in a Share of Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series G | COF PRG | New York Stock Exchange | ||||||
Depositary Shares, Each Representing a 1/40th Interest in a Share of Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series H | COF PRH | 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 | ||||||
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 | ||||||
0.800% Senior Notes Due 2024 | COF24 | New York Stock Exchange | ||||||
1.650% Senior Notes Due 2029 | COF29 | New York Stock Exchange |
Large accelerated filer | ☒ | Accelerated filer | ☐ | |||||||||||||||||
Non-accelerated filer | ☐ | Smaller reporting company | ☐ | |||||||||||||||||
Emerging growth company | ☐ |
Page | ||||||||
1 | Capital One Financial Corporation (COF) |
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Supplemental Table: | ||
2 | Capital One Financial Corporation (COF) |
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3 | Capital One Financial Corporation (COF) |
INTRODUCTION |
•Credit Card: Consists of our domestic consumer and small business card lending, and international card businesses in Canada and the United Kingdom (“U.K.”). |
4 | Capital One Financial Corporation (COF) |
•Commercial Banking: Consists of our lending, deposit gathering, capital markets and treasury management services to commercial real estate and commercial and industrial customers. Our commercial and industrial customers typically include companies with annual revenues between $20 million and $2 billion. |
5 | Capital One Financial Corporation (COF) |
6 | Capital One Financial Corporation (COF) |
7 | Capital One Financial Corporation (COF) |
SELECTED FINANCIAL DATA |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||
(Dollars in millions, except per share data and as noted) | 2019 | 2018 | Change | 2019 | 2018 | Change | ||||||||||||||||
Income statement | ||||||||||||||||||||||
Net interest income | $ | 5,737 | $ | 5,786 | (1 | )% | $ | 17,274 | $ | 17,055 | 1 | % | ||||||||||
Non-interest income | 1,222 | 1,176 | 4 | 3,892 | 4,008 | (3 | ) | |||||||||||||||
Total net revenue | 6,959 | 6,962 | — | 21,166 | 21,063 | — | ||||||||||||||||
Provision for credit losses | 1,383 | 1,268 | 9 | 4,418 | 4,218 | 5 | ||||||||||||||||
Non-interest expense: | ||||||||||||||||||||||
Marketing | 501 | 504 | (1 | ) | 1,564 | 1,343 | 16 | |||||||||||||||
Operating expense | 3,371 | 3,269 | 3 | 9,758 | 9,427 | 4 | ||||||||||||||||
Total non-interest expense | 3,872 | 3,773 | 3 | 11,322 | 10,770 | 5 | ||||||||||||||||
Income from continuing operations before income taxes | 1,704 | 1,921 | (11 | ) | 5,426 | 6,075 | (11 | ) | ||||||||||||||
Income tax provision | 375 | 420 | (11 | ) | 1,071 | 1,314 | (18 | ) | ||||||||||||||
Income from continuing operations, net of tax | 1,329 | 1,501 | (11 | ) | 4,355 | 4,761 | (9 | ) | ||||||||||||||
Income (loss) from discontinued operations, net of tax | 4 | 1 | ** | 15 | (7 | ) | ** | |||||||||||||||
Net income | 1,333 | 1,502 | (11 | ) | 4,370 | 4,754 | (8 | ) | ||||||||||||||
Dividends and undistributed earnings allocated to participating securities | (10 | ) | (9 | ) | 11 | (34 | ) | (32 | ) | 6 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions, except per share data and as noted) | 2020 | 2019 | Change | 2020 | 2019 | Change | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income statement | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest income | $ | 5,555 | $ | 5,737 | (3) | % | $ | 17,040 | $ | 17,274 | (1) | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Non-interest income | 1,826 | 1,222 | 49 | 4,146 | 3,892 | 7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total net revenue | 7,381 | 6,959 | 6 | 21,186 | 21,166 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Provision for credit losses | 331 | 1,383 | (76) | 10,000 | 4,418 | 126 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-interest expense: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Marketing | 283 | 501 | (44) | 1,047 | 1,564 | (33) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating expense | 3,265 | 3,371 | (3) | 10,000 | 9,758 | 2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total non-interest expense | 3,548 | 3,872 | (8) | 11,047 | 11,322 | (2) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income from continuing operations before income taxes | 3,502 | 1,704 | 106 | 139 | 5,426 | (97) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income tax provision (benefit) | 1,096 | 375 | 192 | (10) | 1,071 | ** | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income from continuing operations, net of tax | 2,406 | 1,329 | 81 | 149 | 4,355 | (97) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income (loss) from discontinued operations, net of tax | — | 4 | ** | (1) | 15 | ** | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | 2,406 | 1,333 | 80 | 148 | 4,370 | (97) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends and undistributed earnings allocated to participating securities | (20) | (10) | 100 | (5) | (34) | (85) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred stock dividends | (67) | (53) | 26 | (212) | (185) | 15 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance cost for redeemed preferred stock | — | — | — | (22) | — | ** | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) available to common stockholders | $ | 2,319 | $ | 1,270 | 83 | $ | (91) | $ | 4,151 | ** | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Common share statistics | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basic earnings per common share: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) from continuing operations | $ | 5.07 | $ | 2.70 | 88 | % | $ | (0.20) | $ | 8.80 | ** | |||||||||||||||||||||||||||||||||||||||||||||||||||
Income from discontinued operations | — | 0.01 | ** | — | 0.03 | ** | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) per basic common share | $ | 5.07 | $ | 2.71 | 87 | $ | (0.20) | $ | 8.83 | ** | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Diluted earnings per common share: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) from continuing operations | $ | 5.06 | $ | 2.68 | 89 | % | $ | (0.20) | $ | 8.76 | ** | |||||||||||||||||||||||||||||||||||||||||||||||||||
Income from discontinued operations | — | 0.01 | ** | — | 0.03 | ** | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) per diluted common share | $ | 5.06 | $ | 2.69 | 88 | $ | (0.20) | $ | 8.79 | ** | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Weighted-average common shares outstanding (in millions): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basic | 457.8 | 469.5 | (2) | % | 457.4 | 469.9 | (3) | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Diluted | 458.5 | 471.8 | (3) | 457.4 | 472.1 | (3) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common shares outstanding (period-end, in millions) | 457.4 | 465.7 | (2) | 457.4 | 465.7 | (2) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared and paid per common share | $ | 0.10 | $ | 0.40 | (75) | $ | 0.90 | $ | 1.20 | (25) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Tangible book value per common share (period-end)(1) | 83.67 | 80.46 | 4 | 83.67 | 80.46 | 4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance sheet (average balances) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans held for investment | $ | 249,511 | $ | 246,147 | 1 | % | $ | 255,232 | $ | 243,602 | 5 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Interest-earning assets | 391,451 | 340,949 | 15 | 375,041 | 338,936 | 11 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total assets | 422,854 | 374,905 | 13 | 408,233 | 372,148 | 10 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest-bearing deposits | 276,339 | 232,063 | 19 | 259,631 | 230,045 | 13 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total deposits | 305,516 | 255,082 | 20 | 286,242 | 253,389 | 13 |
Capital One Financial Corporation (COF) |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions, except per share data and as noted) | 2020 | 2019 | Change | 2020 | 2019 | Change | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Borrowings | $ | 44,161 | $ | 49,413 | (11) | % | $ | 48,577 | $ | 50,804 | (4) | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Common equity | 51,995 | 52,566 | (1) | 52,529 | 50,393 | 4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total stockholders’ equity | 57,223 | 57,245 | — | 57,802 | 54,861 | 5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Selected performance metrics | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchase volume | $ | 107,102 | $ | 108,034 | (1) | % | $ | 297,171 | $ | 308,134 | (4) | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total net revenue margin(2) | 7.54 | % | 8.16 | % | (62) | bps | 7.53 | % | 8.33 | % | (80) | bps | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest margin | 5.68 | 6.73 | (105) | 6.06 | 6.80 | (74) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Return on average assets(3) | 2.28 | 1.42 | 86 | 0.05 | 1.56 | (151) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Return on average tangible assets(4) | 2.36 | 1.48 | 88 | 0.05 | 1.63 | (158) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Return on average common equity(5) | 17.84 | 9.63 | 8 | % | (0.23) | 10.94 | ** | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Return on average tangible common equity(6) | 24.98 | 13.45 | 12 | (0.32) | 15.54 | ** | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity-to-assets ratio(7) | 13.53 | 15.27 | (174) | bps | 14.16 | 14.74 | (58) | bps | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-interest expense as a percentage of average loans held for investment | 5.69 | 6.29 | (60) | 5.77 | 6.20 | (43) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Efficiency ratio(8) | 48.07 | 55.64 | (8) | % | 52.14 | 53.49 | (135) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating efficiency ratio(9) | 44.24 | 48.44 | (4) | 47.20 | 46.10 | 110 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Effective income tax rate from continuing operations | 31.3 | 22.0 | 9 | (7.2) | 19.7 | (27) | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net charge-offs | $ | 1,073 | $ | 1,462 | (27) | $ | 4,369 | $ | 4,569 | (4) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Net charge-off rate | 1.72 | % | 2.38 | % | (66) | bps | 2.28 | % | 2.50 | % | (22) | bps |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||
(Dollars in millions, except per share data and as noted) | 2019 | 2018 | Change | 2019 | 2018 | Change | ||||||||||||||||
Preferred stock dividends | (53 | ) | (53 | ) | — | (185 | ) | (185 | ) | — | ||||||||||||
Net income available to common stockholders | $ | 1,270 | $ | 1,440 | (12 | ) | $ | 4,151 | $ | 4,537 | (9 | ) | ||||||||||
Common share statistics | ||||||||||||||||||||||
Basic earnings per common share: | ||||||||||||||||||||||
Net income from continuing operations | $ | 2.70 | $ | 3.01 | (10 | )% | $ | 8.80 | $ | 9.40 | (6 | )% | ||||||||||
Income (loss) from discontinued operations | 0.01 | — | ** | 0.03 | (0.01 | ) | ** | |||||||||||||||
Net income per basic common share | $ | 2.71 | $ | 3.01 | (10 | ) | $ | 8.83 | $ | 9.39 | (6 | ) | ||||||||||
Diluted earnings per common share: | ||||||||||||||||||||||
Net income from continuing operations | $ | 2.68 | $ | 2.99 | (10 | )% | $ | 8.76 | $ | 9.33 | (6 | )% | ||||||||||
Income (loss) from discontinued operations | 0.01 | — | ** | 0.03 | (0.01 | ) | ** | |||||||||||||||
Net income per diluted common share | $ | 2.69 | $ | 2.99 | (10 | ) | $ | 8.79 | $ | 9.32 | (6 | ) | ||||||||||
Weighted-average common shares outstanding (in millions): | ||||||||||||||||||||||
Basic | 469.5 | 477.8 | (2 | )% | 469.9 | 483.2 | (3 | )% | ||||||||||||||
Diluted | 471.8 | 480.9 | (2 | ) | 472.1 | 486.7 | (3 | ) | ||||||||||||||
Common shares outstanding (period-end, in millions) | 465.7 | 473.7 | (2 | ) | 465.7 | 473.7 | (2 | ) | ||||||||||||||
Dividends declared and paid per common share | $ | 0.40 | $ | 0.40 | — | $ | 1.20 | $ | 1.20 | — | ||||||||||||
Tangible book value per common share (period-end)(1) | 80.46 | 66.15 | 22 | 80.46 | 66.15 | 22 | ||||||||||||||||
Balance sheet (average balances) | ||||||||||||||||||||||
Loans held for investment | $ | 246,147 | $ | 236,766 | 4 | % | $ | 243,602 | $ | 242,369 | 1 | % | ||||||||||
Interest-earning assets | 340,949 | 330,272 | 3 | 338,936 | 331,318 | 2 | ||||||||||||||||
Total assets | 374,905 | 360,937 | 4 | 372,148 | 362,293 | 3 | ||||||||||||||||
Interest-bearing deposits | 232,063 | 221,431 | 5 | 230,045 | 221,400 | 4 | ||||||||||||||||
Total deposits | 255,082 | 246,720 | 3 | 253,389 | 246,932 | 3 | ||||||||||||||||
Borrowings | 49,413 | 51,684 | (4 | ) | 50,804 | 52,858 | (4 | ) | ||||||||||||||
Common equity | 52,566 | 46,407 | 13 | 50,393 | 45,521 | 11 | ||||||||||||||||
Total stockholders’ equity | 57,245 | 50,768 | 13 | 54,861 | 49,882 | 10 | ||||||||||||||||
Selected performance metrics | ||||||||||||||||||||||
Purchase volume(2) | $ | 108,034 | $ | 97,469 | 11 | % | $ | 308,134 | $ | 281,406 | 9 | % | ||||||||||
Total net revenue margin(3) | 8.16 | % | 8.43 | % | (27 | )bps | 8.33 | % | 8.48 | % | (15 | )bps | ||||||||||
Net interest margin(4) | 6.73 | 7.01 | (28 | ) | 6.80 | 6.86 | (6 | ) | ||||||||||||||
Return on average assets | 1.42 | 1.66 | (24 | ) | 1.56 | 1.75 | (19 | ) | ||||||||||||||
Return on average tangible assets(5) | 1.48 | 1.74 | (26 | ) | 1.63 | 1.83 | (20 | ) | ||||||||||||||
Return on average common equity(6) | 9.63 | 12.40 | (277 | ) | 10.94 | 13.31 | (237 | ) | ||||||||||||||
Return on average tangible common equity (“TCE”)(7) | 13.45 | 18.32 | (487 | ) | 15.54 | 19.88 | (434 | ) | ||||||||||||||
Equity-to-assets ratio(8) | 15.27 | 14.07 | 120 | 14.74 | 13.77 | 97 | ||||||||||||||||
Non-interest expense as a percentage of average loans held for investment | 6.29 | 6.37 | (8 | ) | 6.20 | 5.92 | 28 | |||||||||||||||
Efficiency ratio(9) | 55.64 | 54.19 | 145 | 53.49 | 51.13 | 236 | ||||||||||||||||
Operating efficiency ratio(10) | 48.44 | 46.95 | 149 | 46.10 | 44.76 | 134 | ||||||||||||||||
Effective income tax rate from continuing operations | 22.0 | 21.9 | 10 | 19.7 | 21.6 | (190 | ) | |||||||||||||||
Net charge-offs | $ | 1,462 | $ | 1,425 | 3 | % | $ | 4,569 | $ | 4,502 | 1 | % | ||||||||||
Net charge-off rate(11) | 2.38 | % | 2.41 | % | (3 | )bps | 2.50 | % | 2.48 | % | 2 | bps |
(Dollars in millions, except as noted) | September 30, 2019 | December 31, 2018 | Change | (Dollars in millions, except as noted) | September 30, 2020 | December 31, 2019 | Change | ||||||||||||||||||||||||||||||||||||||||||||||||
Balance sheet (period-end) | Balance sheet (period-end) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans held for investment | $ | 249,355 | $ | 245,899 | 1 | % | Loans held for investment | $ | 248,223 | $ | 265,809 | (7) | % | ||||||||||||||||||||||||||||||||||||||||||
Interest-earning assets | 344,643 | 341,293 | 1 | Interest-earning assets | 390,040 | 355,202 | 10 | ||||||||||||||||||||||||||||||||||||||||||||||||
Total assets | 378,810 | 372,538 | 2 | Total assets | 421,883 | 390,365 | 8 | ||||||||||||||||||||||||||||||||||||||||||||||||
Interest-bearing deposits | 234,084 | 226,281 | 3 | Interest-bearing deposits | 276,092 | 239,209 | 15 | ||||||||||||||||||||||||||||||||||||||||||||||||
Total deposits | 257,148 | 249,764 | 3 | Total deposits | 305,725 | 262,697 | 16 | ||||||||||||||||||||||||||||||||||||||||||||||||
Borrowings | 50,149 | 58,905 | (15 | ) | Borrowings | 42,795 | 55,697 | (23) | |||||||||||||||||||||||||||||||||||||||||||||||
Common equity | 52,412 | 47,307 | 11 | Common equity | 53,093 | 53,157 | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Total stockholders’ equity | 58,235 | 51,668 | 13 | Total stockholders’ equity | 58,424 | 58,011 | 1 | ||||||||||||||||||||||||||||||||||||||||||||||||
Credit quality metrics | Credit quality metrics | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for loan and lease losses | $ | 7,037 | $ | 7,220 | (3 | )% | |||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for credit losses | Allowance for credit losses | $ | 16,129 | $ | 7,208 | 124 | % | ||||||||||||||||||||||||||||||||||||||||||||||||
Allowance as a percentage of loans held for investment (“allowance coverage ratio”) | 2.82 | % | 2.94 | % | (12 | )bps | Allowance as a percentage of loans held for investment (“allowance coverage ratio”) | 6.50 | % | 2.71 | % | 379 | bps | ||||||||||||||||||||||||||||||||||||||||||
30+ day performing delinquency rate | 3.28 | 3.62 | (34 | ) | 30+ day performing delinquency rate | 1.97 | 3.51 | (154) | |||||||||||||||||||||||||||||||||||||||||||||||
30+ day delinquency rate | 3.51 | 3.84 | (33 | ) | 30+ day delinquency rate | 2.22 | 3.74 | (152) | |||||||||||||||||||||||||||||||||||||||||||||||
Capital ratios | Capital ratios | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common equity Tier 1 capital(12) | 12.5 | % | 11.2 | % | 130 | bps | |||||||||||||||||||||||||||||||||||||||||||||||||
Tier 1 capital(12) | 14.4 | 12.7 | 170 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total capital(12) | 16.8 | 15.1 | 170 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Tier 1 leverage(12) | 11.9 | 10.7 | 120 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Tangible common equity(13) | 10.3 | 9.1 | 120 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplementary leverage(12) | 10.1 | 9.0 | 110 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Common equity Tier 1 capital(10) | Common equity Tier 1 capital(10) | 13.0 | % | 12.2 | % | 80 | bps | ||||||||||||||||||||||||||||||||||||||||||||||||
Tier 1 capital(10) | Tier 1 capital(10) | 14.8 | 13.7 | 110 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Total capital(10) | Total capital(10) | 17.3 | 16.1 | 120 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Tier 1 leverage(10) | Tier 1 leverage(10) | 10.6 | 11.7 | (110) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Tangible common equity(11) | Tangible common equity(11) | 9.4 | 10.2 | (80) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Supplementary leverage(10) | Supplementary leverage(10) | 10.2 | 9.9 | 30 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Other | Other | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employees (period end, in thousands) | 52.1 | 47.6 | 9 | % | Employees (period end, in thousands) | 52.5 | 51.9 | 1 | % |
Capital One Financial Corporation (COF) |
10 | Capital One Financial Corporation (COF) |
EXECUTIVE SUMMARY AND BUSINESS OUTLOOK |
•Earnings: Our net income increased $1.1 billion to $2.4 billion in the third quarter of 2020 primarily driven by: ◦lower provision for credit losses driven by an allowance release due to lower loan balances in Domestic Card and Commercial Banking, including a $327 million release for credit card loans moved to held-for-sale; and ◦higher non-interest income due to a gain of $470 million on our equity investment in Snowflake Inc., which recently completed its initial public offering. Our net income decreased $4.2 billion to $148 million in the first nine months of 2020 primarily driven |
Capital One Financial Corporation (COF) |
12 | Capital One Financial Corporation (COF) |
CONSOLIDATED RESULTS OF OPERATIONS |
Capital One Financial Corporation (COF) |
Three Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||
2020 | 2019 | |||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Average Balance | Interest Income/ Expense | Average Yield/ Rate | Average Balance | Interest Income/ Expense | Average Yield/ Rate | ||||||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||||||||||||||||||
Loans:(1) | ||||||||||||||||||||||||||||||||||||||
Credit card | $ | 105,390 | $ | 3,644 | 13.83 | % | $ | 112,484 | $ | 4,369 | 15.54 | % | ||||||||||||||||||||||||||
Consumer banking | 67,822 | 1,417 | 8.36 | 61,271 | 1,297 | 8.47 | ||||||||||||||||||||||||||||||||
Commercial banking(2) | 77,313 | 544 | 2.82 | 73,664 | 820 | 4.45 | ||||||||||||||||||||||||||||||||
Other(3) | — | 153 | ** | — | (57) | ** | ||||||||||||||||||||||||||||||||
Total loans, including loans held for sale | 250,525 | 5,758 | 9.19 | 247,419 | 6,429 | 10.39 | ||||||||||||||||||||||||||||||||
Investment securities | 91,777 | 443 | 1.93 | 80,762 | 583 | 2.88 | ||||||||||||||||||||||||||||||||
Cash equivalents and other interest-earning assets | 49,149 | 14 | 0.11 | 12,768 | 63 | 2.00 | ||||||||||||||||||||||||||||||||
Total interest-earning assets | 391,451 | 6,215 | 6.35 | 340,949 | 7,075 | 8.30 | ||||||||||||||||||||||||||||||||
Cash and due from banks | 4,697 | 4,376 | ||||||||||||||||||||||||||||||||||||
Allowance for credit losses | (16,839) | (7,125) | ||||||||||||||||||||||||||||||||||||
Premises and equipment, net | 4,319 | 4,279 | ||||||||||||||||||||||||||||||||||||
Other assets | 39,226 | 32,426 | ||||||||||||||||||||||||||||||||||||
Total assets | $ | 422,854 | $ | 374,905 | ||||||||||||||||||||||||||||||||||
Liabilities and stockholders’ equity: | ||||||||||||||||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||||||||||||||||
Interest-bearing deposits | $ | 276,339 | $ | 476 | 0.69 | % | $ | 232,063 | $ | 901 | 1.55 | % | ||||||||||||||||||||||||||
Securitized debt obligations | 15,032 | 43 | 1.14 | 16,750 | 123 | 2.94 | ||||||||||||||||||||||||||||||||
Senior and subordinated notes | 28,497 | 132 | 1.86 | 31,220 | 299 | 3.84 | ||||||||||||||||||||||||||||||||
Other borrowings and liabilities | 2,119 | 9 | 1.77 | 2,698 | 15 | 2.14 | ||||||||||||||||||||||||||||||||
Total interest-bearing liabilities | 321,987 | 660 | 0.82 | 282,731 | 1,338 | 1.89 | ||||||||||||||||||||||||||||||||
Non-interest-bearing deposits | 29,177 | 23,019 | ||||||||||||||||||||||||||||||||||||
Other liabilities | 14,467 | 11,910 | ||||||||||||||||||||||||||||||||||||
Total liabilities | 365,631 | 317,660 | ||||||||||||||||||||||||||||||||||||
Stockholders’ equity | 57,223 | 57,245 | ||||||||||||||||||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 422,854 | $ | 374,905 | ||||||||||||||||||||||||||||||||||
Net interest income/spread | $ | 5,555 | 5.53 | $ | 5,737 | 6.41 | ||||||||||||||||||||||||||||||||
Impact of non-interest-bearing funding | 0.15 | 0.32 | ||||||||||||||||||||||||||||||||||||
Net interest margin | 5.68 | % | 6.73 | % |
Three Months Ended September 30, | ||||||||||||||||||||||
2019 | 2018 | |||||||||||||||||||||
(Dollars in millions) | Average Balance | Interest Income/ Expense | Average Yield/ Rate | Average Balance | Interest Income/ Expense | Average Yield/ Rate | ||||||||||||||||
Assets: | ||||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||
Loans:(1) | ||||||||||||||||||||||
Credit card | $ | 112,484 | $ | 4,369 | 15.54 | % | $ | 109,510 | $ | 4,324 | 15.79 | % | ||||||||||
Consumer banking | 61,271 | 1,297 | 8.47 | 59,633 | 1,191 | 7.99 | ||||||||||||||||
Commercial banking(2) | 73,664 | 820 | 4.45 | 68,913 | 782 | 4.54 | ||||||||||||||||
Other(3) | — | (57 | ) | ** | 94 | (50 | ) | ** | ||||||||||||||
Total loans, including loans held for sale | 247,419 | 6,429 | 10.39 | 238,150 | 6,247 | 10.49 | ||||||||||||||||
Investment securities | 80,762 | 583 | 2.88 | 83,894 | 593 | 2.83 | ||||||||||||||||
Cash equivalents and other interest-earning assets | 12,768 | 63 | 2.00 | 8,228 | 55 | 2.66 | ||||||||||||||||
Total interest-earning assets | 340,949 | 7,075 | 8.30 | 330,272 | 6,895 | 8.35 | ||||||||||||||||
Cash and due from banks | 4,376 | 3,898 | ||||||||||||||||||||
Allowance for loan and lease losses | (7,125 | ) | (7,366 | ) | ||||||||||||||||||
Premises and equipment, net | 4,279 | 4,157 | ||||||||||||||||||||
Other assets | 32,426 | 29,976 | ||||||||||||||||||||
Total assets | $ | 374,905 | $ | 360,937 | ||||||||||||||||||
Liabilities and stockholders’ equity: | ||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||
Interest-bearing deposits | $ | 232,063 | $ | 901 | 1.55 | % | $ | 221,431 | $ | 681 | 1.23 | % | ||||||||||
Securitized debt obligations | 16,750 | 123 | 2.94 | 18,917 | 127 | 2.68 | ||||||||||||||||
Senior and subordinated notes | 31,220 | 299 | 3.84 | 31,660 | 288 | 3.63 | ||||||||||||||||
Other borrowings and liabilities | 2,698 | 15 | 2.14 | 3,084 | 13 | 1.67 | ||||||||||||||||
Total interest-bearing liabilities | 282,731 | 1,338 | 1.89 | 275,092 | 1,109 | 1.62 | ||||||||||||||||
Non-interest-bearing deposits | 23,019 | 25,289 | ||||||||||||||||||||
Other liabilities | 11,910 | 9,788 | ||||||||||||||||||||
Total liabilities | 317,660 | 310,169 | ||||||||||||||||||||
Stockholders’ equity | 57,245 | 50,768 | ||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 374,905 | $ | 360,937 | ||||||||||||||||||
Net interest income/spread | $ | 5,737 | 6.41 | $ | 5,786 | 6.73 | ||||||||||||||||
Impact of non-interest-bearing funding | 0.32 | 0.28 | ||||||||||||||||||||
Net interest margin | 6.73 | % | 7.01 | % |
Capital One Financial Corporation (COF) |
Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Average Balance | Interest Income/ Expense | Average Yield/ Rate | Average Balance | Interest Income/ Expense | Average Yield/ Rate | ||||||||||||||||||||||||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans:(1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Credit card | $ | 112,305 | $ | 11,812 | 14.02 | % | $ | 111,584 | $ | 13,103 | 15.66 | % | ||||||||||||||||||||||||||||||||||||||||||||
Consumer banking | 65,457 | 4,128 | 8.41 | 60,072 | 3,751 | 8.33 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial banking(2) | 78,403 | 1,898 | 3.23 | 73,066 | 2,517 | 4.59 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Other(3) | — | 282 | ** | 21 | (191) | ** | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total loans, including loans held for sale | 256,165 | 18,120 | 9.43 | 244,743 | 19,180 | 10.45 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Investment securities | 83,724 | 1,455 | 2.32 | 82,264 | 1,867 | 3.03 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Cash equivalents and other interest-earning assets | 35,152 | 67 | 0.25 | 11,929 | 196 | 2.19 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total interest-earning assets | 375,041 | 19,642 | 6.98 | 338,936 | 21,243 | 8.36 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and due from banks | 4,913 | 4,281 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for credit losses | (13,796) | (7,221) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Premises and equipment, net | 4,332 | 4,275 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other assets | 37,743 | 31,877 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 408,233 | $ | 372,148 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Liabilities and stockholders’ equity: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest-bearing deposits | $ | 259,631 | $ | 1,818 | 0.93 | % | $ | 230,045 | $ | 2,588 | 1.50 | % | ||||||||||||||||||||||||||||||||||||||||||||
Securitized debt obligations | 16,500 | 198 | 1.60 | 17,912 | 405 | 3.02 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Senior and subordinated notes | 30,371 | 551 | 2.42 | 30,897 | 923 | 3.98 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Other borrowings and liabilities | 3,147 | 35 | 1.50 | 3,228 | 53 | 2.19 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total interest-bearing liabilities | 309,649 | 2,602 | 1.12 | 282,082 | 3,969 | 1.88 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Non-interest-bearing deposits | 26,611 | 23,344 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other liabilities | 14,171 | 11,861 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities | 350,431 | 317,287 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders’ equity | 57,802 | 54,861 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 408,233 | $ | 372,148 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest income/spread | $ | 17,040 | 5.86 | $ | 17,274 | 6.48 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Impact of non-interest-bearing funding | 0.20 | 0.32 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest margin | 6.06 | % | 6.80 | % |
Nine Months Ended September 30, | ||||||||||||||||||||||
2019 | 2018 | |||||||||||||||||||||
(Dollars in millions) | Average Balance | Interest Income/ Expense | Average Yield/ Rate | Average Balance | Interest Income/ Expense | Average Yield/ Rate | ||||||||||||||||
Assets: | ||||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||
Loans:(1) | ||||||||||||||||||||||
Credit card | $ | 111,584 | $ | 13,103 | 15.66 | % | $ | 108,968 | $ | 12,559 | 15.37 | % | ||||||||||
Consumer banking | 60,072 | 3,751 | 8.33 | 67,086 | 3,695 | 7.34 | ||||||||||||||||
Commercial banking(2) | 73,066 | 2,517 | 4.59 | 67,373 | 2,209 | 4.37 | ||||||||||||||||
Other(3) | 21 | (191 | ) | ** | 226 | (93 | ) | ** | ||||||||||||||
Total loans, including loans held for sale | 244,743 | 19,180 | 10.45 | 243,653 | 18,370 | 10.05 | ||||||||||||||||
Investment securities | 82,264 | 1,867 | 3.03 | 77,819 | 1,584 | 2.71 | ||||||||||||||||
Cash equivalents and other interest-earning assets | 11,929 | 196 | 2.19 | 9,846 | 174 | 2.36 | ||||||||||||||||
Total interest-earning assets | 338,936 | 21,243 | 8.36 | 331,318 | 20,128 | 8.10 | ||||||||||||||||
Cash and due from banks | 4,281 | 3,768 | ||||||||||||||||||||
Allowance for loan and lease losses | (7,221 | ) | (7,468 | ) | ||||||||||||||||||
Premises and equipment, net | 4,275 | 4,147 | ||||||||||||||||||||
Other assets | 31,877 | 30,528 | ||||||||||||||||||||
Total assets | $ | 372,148 | $ | 362,293 | ||||||||||||||||||
Liabilities and stockholders’ equity: | ||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||
Interest-bearing deposits | $ | 230,045 | $ | 2,588 | 1.50 | % | $ | 221,400 | $ | 1,842 | 1.11 | % | ||||||||||
Securitized debt obligations | 17,912 | 405 | 3.02 | 19,251 | 358 | 2.46 | ||||||||||||||||
Senior and subordinated notes | 30,897 | 923 | 3.98 | 31,452 | 828 | 3.51 | ||||||||||||||||
Other borrowings and liabilities | 3,228 | 53 | 2.19 | 4,674 | 45 | 1.28 | ||||||||||||||||
Total interest-bearing liabilities | 282,082 | 3,969 | 1.88 | 276,777 | 3,073 | 1.49 | ||||||||||||||||
Non-interest-bearing deposits | 23,344 | 25,532 | ||||||||||||||||||||
Other liabilities | 11,861 | 10,102 | ||||||||||||||||||||
Total liabilities | 317,287 | 312,411 | ||||||||||||||||||||
Stockholders’ equity | 54,861 | 49,882 | ||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 372,148 | $ | 362,293 | ||||||||||||||||||
Net interest income/spread | $ | 17,274 | 6.48 | $ | 17,055 | 6.61 | ||||||||||||||||
Impact of non-interest-bearing funding | 0.32 | 0.25 | ||||||||||||||||||||
Net interest margin | 6.80 | % | 6.86 | % |
(2)Some of our commercial loans generate tax-exempt income. Accordingly, we present our Commercial Banking interest income and yields on a taxable-equivalent basis, calculated using the federal statutory rate of 21% and state taxes where applicable, with offsetting reductions to the Other category. Taxable-equivalent adjustments included in the interest income and yield computations for our commercial loans totaled approximately $20 million and $61 million in the third quarter and first nine months of 2020, respectively, and $21 million and $62 million in the third quarter and first nine months of 2019, respectively, with corresponding reductions to the Other category. (3)Interest income/expense of Other represents the impact of hedge accounting on our loan portfolios and the offsetting reduction of the taxable-equivalent adjustments of our commercial loans as described above. ** Not meaningful. |
15 | Capital One Financial Corporation (COF) |
Three Months Ended September 30, | Nine Months Ended September 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2019 vs. 2018 | 2019 vs. 2018 | 2020 vs. 2019 | 2020 vs. 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Total Variance | Volume | Rate | Total Variance | Volume | Rate | (Dollars in millions) | Total Variance | Volume | Rate | Total Variance | Volume | Rate | |||||||||||||||||||||||||||||||||||||||||||||||||
Interest income: | Interest income: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans: | Loans: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Credit card | $ | 45 | $ | 116 | $ | (71 | ) | $ | 544 | $ | 305 | $ | 239 | Credit card | $ | (725) | $ | (264) | $ | (461) | $ | (1,291) | $ | 76 | $ | (1,367) | ||||||||||||||||||||||||||||||||||||
Consumer banking | 106 | 33 | 73 | 56 | (386 | ) | 442 | Consumer banking | 120 | 137 | (17) | 377 | 339 | 38 | ||||||||||||||||||||||||||||||||||||||||||||||||
Commercial banking(2) | 38 | 53 | (15 | ) | 308 | 192 | 116 | Commercial banking(2) | (276) | 26 | (302) | (619) | 129 | (748) | ||||||||||||||||||||||||||||||||||||||||||||||||
Other(3) | (7 | ) | (1 | ) | (6 | ) | (98 | ) | 50 | (148 | ) | Other(3) | 210 | — | 210 | 473 | — | 473 | ||||||||||||||||||||||||||||||||||||||||||||
Total loans, including loans held for sale | 182 | 201 | (19 | ) | 810 | 161 | 649 | Total loans, including loans held for sale | (671) | (101) | (570) | (1,060) | 544 | (1,604) | ||||||||||||||||||||||||||||||||||||||||||||||||
Investment securities | (10 | ) | (22 | ) | 12 | 283 | 94 | 189 | Investment securities | (140) | 53 | (193) | (412) | 25 | (437) | |||||||||||||||||||||||||||||||||||||||||||||||
Cash equivalents and other interest-earning assets | 8 | 22 | (14 | ) | 22 | 34 | (12 | ) | Cash equivalents and other interest-earning assets | (49) | 10 | (59) | (129) | 45 | (174) | |||||||||||||||||||||||||||||||||||||||||||||||
Total interest income | 180 | 201 | (21 | ) | 1,115 | 289 | 826 | Total interest income | (860) | (38) | (822) | (1,601) | 614 | (2,215) | ||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense: | Interest expense: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest-bearing deposits | 220 | 34 | 186 | 746 | 74 | 672 | Interest-bearing deposits | (425) | 76 | (501) | (770) | 207 | (977) | |||||||||||||||||||||||||||||||||||||||||||||||||
Securitized debt obligations | (4 | ) | (14 | ) | 10 | 47 | (25 | ) | 72 | Securitized debt obligations | (80) | (11) | (69) | (207) | (30) | (177) | ||||||||||||||||||||||||||||||||||||||||||||||
Senior and subordinated notes | 11 | (4 | ) | 15 | 95 | (15 | ) | 110 | Senior and subordinated notes | (167) | (24) | (143) | (372) | (15) | (357) | |||||||||||||||||||||||||||||||||||||||||||||||
Other borrowings and liabilities | 2 | (2 | ) | 4 | 8 | (14 | ) | 22 | Other borrowings and liabilities | (6) | (3) | (3) | (18) | (1) | (17) | |||||||||||||||||||||||||||||||||||||||||||||||
Total interest expense | 229 | 14 | 215 | 896 | 20 | 876 | Total interest expense | (678) | 38 | (716) | (1,367) | 161 | (1,528) | |||||||||||||||||||||||||||||||||||||||||||||||||
Net interest income | $ | (49 | ) | $ | 187 | $ | (236 | ) | $ | 219 | $ | 269 | $ | (50 | ) | Net interest income | $ | (182) | $ | (76) | $ | (106) | $ | (234) | $ | 453 | $ | (687) |
(2)Some of our commercial loans generate tax-exempt income. Accordingly, we present our Commercial Banking interest income and yields on a taxable-equivalent basis, calculated using the federal statutory rate of 21% and state taxes where applicable, with offsetting reductions to the Other category. (3)Interest income/expense of Other represents the impact of hedge accounting on our loan portfolios and the offsetting reduction of the taxable-equivalent adjustments of our commercial loans as described above. |
Capital One Financial Corporation (COF) |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||
(Dollars in millions) | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||||
Interchange fees, net | $ | 775 | $ | 790 | $ | 2,199 | $ | 2,368 | ||||||||||||||||||||||||
Service charges and other customer-related fees | 320 | 283 | 905 | 988 | ||||||||||||||||||||||||||||
Net securities gains | 25 | 5 | 25 | 44 | ||||||||||||||||||||||||||||
Other non-interest income:(1) | ||||||||||||||||||||||||||||||||
Mortgage banking revenue | 66 | 48 | 172 | 127 | ||||||||||||||||||||||||||||
Treasury and other investment income | 516 | 36 | 572 | 139 | ||||||||||||||||||||||||||||
Other | 124 | 60 | 273 | 226 | ||||||||||||||||||||||||||||
Total other non-interest income | 706 | 144 | 1,017 | 492 | ||||||||||||||||||||||||||||
Total non-interest income | $ | 1,826 | $ | 1,222 | $ | 4,146 | $ | 3,892 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
(Dollars in millions) | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Interchange fees, net | $ | 790 | $ | 714 | $ | 2,368 | $ | 2,080 | ||||||||
Service charges and other customer-related fees | 283 | 410 | 988 | 1,233 | ||||||||||||
Net securities gains (losses) | 5 | (196 | ) | 44 | (189 | ) | ||||||||||
Other non-interest income:(1) | ||||||||||||||||
Mortgage banking revenue | 48 | 151 | 127 | 629 | ||||||||||||
Treasury and other investment income | 36 | 16 | 139 | 62 | ||||||||||||
Other | 60 | 81 | 226 | 193 | ||||||||||||
Total other non-interest income | 144 | 248 | 492 | 884 | ||||||||||||
Total non-interest income | $ | 1,222 | $ | 1,176 | $ | 3,892 | $ | 4,008 |
Capital One Financial Corporation (COF) |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||
(Dollars in millions) | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||||
Salaries and associate benefits(1) | $ | 1,719 | $ | 1,605 | $ | 5,050 | $ | 4,736 | ||||||||||||||||||||||||
Occupancy and equipment | 506 | 519 | 1,546 | 1,533 | ||||||||||||||||||||||||||||
Marketing | 283 | 501 | 1,047 | 1,564 | ||||||||||||||||||||||||||||
Professional services | 327 | 314 | 918 | 919 | ||||||||||||||||||||||||||||
Communications and data processing | 310 | 312 | 920 | 944 | ||||||||||||||||||||||||||||
Amortization of intangibles | 14 | 25 | 52 | 84 | ||||||||||||||||||||||||||||
Other non-interest expense: | ||||||||||||||||||||||||||||||||
Bankcard, regulatory and other fee assessments | 69 | 100 | 210 | 273 | ||||||||||||||||||||||||||||
Collections | 74 | 100 | 255 | 291 | ||||||||||||||||||||||||||||
Fraud losses | 56 | 101 | 206 | 301 | ||||||||||||||||||||||||||||
Other(2) | 190 | 295 | 843 | 677 | ||||||||||||||||||||||||||||
Total other non-interest expense | 389 | 596 | 1,514 | 1,542 | ||||||||||||||||||||||||||||
Total non-interest expense | $ | 3,548 | $ | 3,872 | $ | 11,047 | $ | 11,322 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
(Dollars in millions) | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Salaries and associate benefits(1) | $ | 1,605 | $ | 1,432 | $ | 4,736 | $ | 4,382 | ||||||||
Occupancy and equipment | 519 | 515 | 1,533 | 1,508 | ||||||||||||
Marketing | 501 | 504 | 1,564 | 1,343 | ||||||||||||
Professional services | 314 | 275 | 919 | 719 | ||||||||||||
Communications and data processing | 312 | 311 | 944 | 934 | ||||||||||||
Amortization of intangibles | 25 | 44 | 84 | 131 | ||||||||||||
Other non-interest expense: | ||||||||||||||||
Bankcard, regulatory and other fee assessments | 100 | 147 | 273 | 381 | ||||||||||||
Collections | 100 | 105 | 291 | 317 | ||||||||||||
Fraud losses | 101 | 88 | 301 | 274 | ||||||||||||
Other(2) | 295 | 352 | 677 | 781 | ||||||||||||
Total other non-interest expense | 596 | 692 | 1,542 | 1,753 | ||||||||||||
Total non-interest expense | $ | 3,872 | $ | 3,773 | $ | 11,322 | $ | 10,770 |
18 | Capital One Financial Corporation (COF) |
CONSOLIDATED BALANCE SHEETS ANALYSIS |
September 30, 2020 | December 31, 2019 | |||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Amortized Cost | Fair Value | Amortized Cost | Fair Value | ||||||||||||||||||||||||||||||||||
Investment securities available for sale: | ||||||||||||||||||||||||||||||||||||||
U.S. Treasury securities | $ | 9,331 | $ | 9,345 | $ | 4,122 | $ | 4,124 | ||||||||||||||||||||||||||||||
RMBS: | ||||||||||||||||||||||||||||||||||||||
Agency | 72,948 | 75,366 | 62,003 | 62,839 | ||||||||||||||||||||||||||||||||||
Non-agency | 1,093 | 1,293 | 1,235 | 1,499 | ||||||||||||||||||||||||||||||||||
Total RMBS | 74,041 | 76,659 | 63,238 | 64,338 | ||||||||||||||||||||||||||||||||||
Agency CMBS | 10,953 | 11,435 | 9,303 | 9,426 | ||||||||||||||||||||||||||||||||||
Other securities(1) | 2,410 | 2,414 | 1,321 | 1,325 | ||||||||||||||||||||||||||||||||||
Total investment securities available for sale | $ | 96,735 | $ | 99,853 | $ | 77,984 | $ | 79,213 | ||||||||||||||||||||||||||||||
September 30, 2019 | December 31, 2018 | |||||||||||||||
(Dollars in millions) | Amortized Cost | Fair Value | Amortized Cost | Fair Value | ||||||||||||
Investment securities available for sale: | ||||||||||||||||
U.S. Treasury securities | $ | 4,173 | $ | 4,155 | $ | 6,146 | $ | 6,144 | ||||||||
RMBS: | ||||||||||||||||
Agency | 33,727 | 33,713 | 32,710 | 31,903 | ||||||||||||
Non-agency | 1,313 | 1,612 | 1,440 | 1,742 | ||||||||||||
Total RMBS | 35,040 | 35,325 | 34,150 | 33,645 | ||||||||||||
Agency CMBS | 5,368 | 5,396 | 4,806 | 4,739 | ||||||||||||
Other securities(1) | 1,291 | 1,292 | 1,626 | 1,622 | ||||||||||||
Total investment securities available for sale | $ | 45,872 | $ | 46,168 | $ | 46,728 | $ | 46,150 | ||||||||
(Dollars in millions) | Carrying Value | Fair Value | Carrying Value | Fair Value | ||||||||||||
Investment securities held to maturity: | ||||||||||||||||
Agency RMBS | $ | 30,109 | $ | 31,289 | $ | 33,061 | $ | 32,977 | ||||||||
Agency CMBS | 3,785 | 3,975 | 3,710 | 3,642 | ||||||||||||
Total investment securities held to maturity | $ | 33,894 | $ | 35,264 | $ | 36,771 | $ | 36,619 |
Capital One Financial Corporation (COF) |
September 30, 2019 | December 31, 2018 | September 30, 2020 | December 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Loans | Allowance | Net Loans | Loans | Allowance | Net Loans | (Dollars in millions) | Loans | Allowance | Net Loans | Loans | Allowance | Net Loans | |||||||||||||||||||||||||||||||||||||||||||||||||
Credit Card | $ | 113,681 | $ | 5,270 | $ | 108,411 | $ | 116,361 | $ | 5,535 | $ | 110,826 | Credit Card | $ | 103,641 | $ | 11,612 | $ | 92,029 | $ | 128,236 | $ | 5,395 | $ | 122,841 | |||||||||||||||||||||||||||||||||||||
Consumer Banking | 62,015 | 1,007 | 61,008 | 59,205 | 1,048 | 58,157 | Consumer Banking | 68,688 | 2,747 | 65,941 | 63,065 | 1,038 | 62,027 | |||||||||||||||||||||||||||||||||||||||||||||||||
Commercial Banking | 73,659 | 760 | 72,899 | 70,333 | 637 | 69,696 | Commercial Banking | 75,894 | 1,770 | 74,124 | 74,508 | 775 | 73,733 | |||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 249,355 | $ | 7,037 | $ | 242,318 | $ | 245,899 | $ | 7,220 | $ | 238,679 | Total | $ | 248,223 | $ | 16,129 | $ | 232,094 | $ | 265,809 | $ | 7,208 | $ | 258,601 |
September 30, 2020 | December 31, 2019 | |||||||||||||||||||||||||
(Dollars in millions) | Amount | % of Total | Amount | % of Total | ||||||||||||||||||||||
Deposits: | ||||||||||||||||||||||||||
Consumer Banking | $ | 249,684 | 71 | % | $ | 213,099 | 67 | % | ||||||||||||||||||
Commercial Banking | 36,783 | 11 | 32,134 | 10 | ||||||||||||||||||||||
Other(1) | 19,258 | 6 | 17,464 | 5 | ||||||||||||||||||||||
Total deposits | 305,725 | 88 | 262,697 | 82 | ||||||||||||||||||||||
Securitized debt obligations | 13,566 | 4 | 17,808 | 6 | ||||||||||||||||||||||
Other debt | 29,229 | 8 | 37,889 | 12 | ||||||||||||||||||||||
Total funding sources | $ | 348,520 | 100 | % | $ | 318,394 | 100 | % |
September 30, 2019 | December 31, 2018 | |||||||||||||
(Dollars in millions) | Amount | % of Total | Amount | % of Total | ||||||||||
Deposits: | ||||||||||||||
Consumer Banking | $ | 206,423 | 67 | % | $ | 198,607 | 64 | % | ||||||
Commercial Banking | 30,923 | 10 | 29,480 | 10 | ||||||||||
Other(1) | 19,802 | 7 | 21,677 | 7 | ||||||||||
Total deposits | 257,148 | 84 | 249,764 | 81 | ||||||||||
Securitized debt obligations | 18,910 | 6 | 18,307 | 6 | ||||||||||
Other debt | 31,239 | 10 | 40,598 | 13 | ||||||||||
Total funding sources | $ | 307,297 | 100 | % | $ | 308,669 | 100 | % |
Includes brokered |
20 | Capital One Financial Corporation (COF) |
OFF-BALANCE SHEET ARRANGEMENTS |
BUSINESS SEGMENT FINANCIAL PERFORMANCE |
21 | Capital One Financial Corporation (COF) |
Three Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Net Revenue(1) | Net Income (Loss)(2) | Total Net Revenue (Loss)(1) | Net Income (Loss)(2) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Amount | % of Total | Amount | % of Total | Amount | % of Total | Amount | % of Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Credit Card | $ | 4,305 | 58 | % | $ | 1,414 | 59 | % | $ | 4,416 | 63 | % | $ | 734 | 55 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer Banking | 2,011 | 27 | 796 | 33 | 1,847 | 27 | 505 | 38 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial Banking(3) | 754 | 10 | 309 | 13 | 707 | 10 | 154 | 12 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other(3) | 311 | 5 | (113) | (5) | (11) | — | (64) | (5) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 7,381 | 100 | % | $ | 2,406 | 100 | % | $ | 6,959 | 100 | % | $ | 1,329 | 100 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Net Revenue(1) | Net Income (Loss)(2) | Total Net Revenue (Loss)(1) | Net Income (Loss)(2) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Amount | % of Total | Amount | % of Total | Amount | % of Total | Amount | % of Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Credit Card | $ | 13,132 | 62 | % | $ | (110) | (74) | % | $ | 13,525 | 64 | % | $ | 2,423 | 56 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer Banking | 5,556 | 26 | 630 | 423 | 5,561 | 26 | 1,516 | 35 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial Banking(3) | 2,181 | 10 | (220) | (148) | 2,097 | 10 | 457 | 10 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other(3) | 317 | 2 | (151) | (101) | (17) | — | (41) | (1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 21,186 | 100 | % | $ | 149 | 100 | % | $ | 21,166 | 100 | % | $ | 4,355 | 100 | % |
Three Months Ended September 30, | ||||||||||||||||||||||||||||
2019 | 2018 | |||||||||||||||||||||||||||
Total Net Revenue(1) | Net Income (Loss)(2) | Total Net Revenue (Loss)(1) | Net Income (Loss)(2) | |||||||||||||||||||||||||
(Dollars in millions) | Amount | % of Total | Amount | % of Total | Amount | % of Total | Amount | % of Total | ||||||||||||||||||||
Credit Card | $ | 4,416 | 63 | % | $ | 734 | 55 | % | $ | 4,489 | 65 | % | $ | 1,040 | 69 | % | ||||||||||||
Consumer Banking | 1,847 | 27 | 505 | 38 | 1,791 | 26 | 482 | 32 | ||||||||||||||||||||
Commercial Banking(3)(4) | 707 | 10 | 154 | 12 | 702 | 10 | 184 | 12 | ||||||||||||||||||||
Other(3)(4) | (11 | ) | — | (64 | ) | (5 | ) | (20 | ) | (1 | ) | (205 | ) | (13 | ) | |||||||||||||
Total | $ | 6,959 | 100 | % | $ | 1,329 | 100 | % | $ | 6,962 | 100 | % | $ | 1,501 | 100 | % |
Nine Months Ended September 30, | ||||||||||||||||||||||||||||
2019 | 2018 | |||||||||||||||||||||||||||
Total Net Revenue(1) | Net Income (Loss)(2) | Total Net Revenue(1) | Net Income(2) | |||||||||||||||||||||||||
(Dollars in millions) | Amount | % of Total | Amount | % of Total | Amount | % of Total | Amount | % of Total | ||||||||||||||||||||
Credit Card | $ | 13,525 | 64 | % | $ | 2,423 | 56 | % | $ | 13,184 | 63 | % | $ | 2,670 | 56 | % | ||||||||||||
Consumer Banking | 5,561 | 26 | 1,516 | 35 | 5,364 | 26 | 1,447 | 30 | ||||||||||||||||||||
Commercial Banking(3)(4) | 2,097 | 10 | 457 | 10 | 2,121 | 10 | 634 | 13 | ||||||||||||||||||||
Other(3)(4) | (17 | ) | — | (41 | ) | (1 | ) | 394 | 1 | 10 | 1 | |||||||||||||||||
Total | $ | 21,166 | 100 | % | $ | 4,355 | 100 | % | $ | 21,063 | 100 | % | $ | 4,761 | 100 | % |
Capital One Financial Corporation (COF) |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||
(Dollars in millions, except as noted) | 2020 | 2019 | Change | 2020 | 2019 | Change | ||||||||||||||||||||||||||||||||
Selected income statement data: | ||||||||||||||||||||||||||||||||||||||
Net interest income | $ | 3,292 | $ | 3,546 | (7) | % | $ | 10,363 | $ | 10,667 | (3) | % | ||||||||||||||||||||||||||
Non-interest income | 1,013 | 870 | 16 | 2,769 | 2,858 | (3) | ||||||||||||||||||||||||||||||||
Total net revenue(1) | 4,305 | 4,416 | (3) | 13,132 | 13,525 | (3) | ||||||||||||||||||||||||||||||||
Provision for credit losses | 450 | 1,087 | (59) | 7,096 | 3,571 | 99 | ||||||||||||||||||||||||||||||||
Non-interest expense | 2,003 | 2,360 | (15) | 6,180 | 6,784 | (9) | ||||||||||||||||||||||||||||||||
Income (loss) from continuing operations before income taxes | 1,852 | 969 | 91 | (144) | 3,170 | ** | ||||||||||||||||||||||||||||||||
Income tax provision (benefit) | 438 | 235 | 86 | (34) | 747 | ** | ||||||||||||||||||||||||||||||||
Income (loss) from continuing operations, net of tax | $ | 1,414 | $ | 734 | 93 | $ | (110) | $ | 2,423 | ** | ||||||||||||||||||||||||||||
Selected performance metrics: | ||||||||||||||||||||||||||||||||||||||
Average loans held for investment(2) | $ | 105,367 | $ | 112,371 | (6) | $ | 112,272 | $ | 111,545 | 1 | ||||||||||||||||||||||||||||
Average yield on loans held for investment(3) | 13.83 | % | 15.55 | % | (172) | bps | 14.03 | % | 15.66 | % | (163) | bps | ||||||||||||||||||||||||||
Total net revenue margin(4) | 16.34 | 15.72 | 62 | 15.59 | 16.17 | (58) | ||||||||||||||||||||||||||||||||
Net charge-offs | $ | 943 | $ | 1,151 | (18) | % | $ | 3,590 | $ | 3,835 | (6) | % | ||||||||||||||||||||||||||
Net charge-off rate | 3.58 | % | 4.09 | % | (51) | bps | 4.26 | % | 4.58 | % | (32) | bps | ||||||||||||||||||||||||||
Purchase volume | $ | 107,102 | $ | 108,034 | (1) | % | $ | 297,171 | $ | 308,134 | (4) | % | ||||||||||||||||||||||||||
(Dollars in millions, except as noted) | September 30, 2020 | December 31, 2019 | Change | |||||||||||||||||||||||||||||||||||
Selected period-end data: | ||||||||||||||||||||||||||||||||||||||
Loans held for investment(2)(5) | $ | 103,641 | $ | 128,236 | (19) | % | ||||||||||||||||||||||||||||||||
30+ day performing delinquency rate | 2.20 | % | 3.89 | % | (169) | bps | ||||||||||||||||||||||||||||||||
30+ day delinquency rate | 2.21 | 3.91 | (170) | |||||||||||||||||||||||||||||||||||
Nonperforming loan rate(6) | 0.02 | 0.02 | — | |||||||||||||||||||||||||||||||||||
Allowance for credit losses(2) | $ | 11,612 | $ | 5,395 | 115 | % | ||||||||||||||||||||||||||||||||
Allowance coverage ratio | 11.20 | % | 4.21 | % | 699 | bps |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||
(Dollars in millions, except as noted) | 2019 | 2018 | Change | 2019 | 2018 | Change | ||||||||||||||||
Selected income statement data: | ||||||||||||||||||||||
Net interest income | $ | 3,546 | $ | 3,596 | (1 | )% | $ | 10,667 | $ | 10,550 | 1 | % | ||||||||||
Non-interest income | 870 | 893 | (3 | ) | 2,858 | 2,634 | 9 | |||||||||||||||
Total net revenue(1) | 4,416 | 4,489 | (2 | ) | 13,525 | 13,184 | 3 | |||||||||||||||
Provision for credit losses | 1,087 | 1,031 | 5 | 3,571 | 3,658 | (2 | ) | |||||||||||||||
Non-interest expense | 2,360 | 2,103 | 12 | 6,784 | 6,046 | 12 | ||||||||||||||||
Income from continuing operations before income taxes | 969 | 1,355 | (28 | ) | 3,170 | 3,480 | (9 | ) | ||||||||||||||
Income tax provision | 235 | 315 | (25 | ) | 747 | 810 | (8 | ) | ||||||||||||||
Income from continuing operations, net of tax | $ | 734 | $ | 1,040 | (29 | ) | $ | 2,423 | $ | 2,670 | (9 | ) | ||||||||||
Selected performance metrics: | ||||||||||||||||||||||
Average loans held for investment(2) | $ | 112,371 | $ | 109,510 | 3 | $ | 111,545 | $ | 108,968 | 2 | ||||||||||||
Average yield on loans held for investment(3) | 15.55 | % | 15.79 | % | (24 | )bps | 15.66 | % | 15.37 | % | 29 | bps | ||||||||||
Total net revenue margin(4) | 15.72 | 16.40 | (68 | ) | 16.17 | 16.13 | 4 | |||||||||||||||
Net charge-offs | $ | 1,151 | $ | 1,137 | 1 | % | $ | 3,835 | $ | 3,774 | 2 | % | ||||||||||
Net charge-off rate | 4.09 | % | 4.15 | % | (6 | )bps | 4.58 | % | 4.62 | % | (4 | )bps | ||||||||||
Purchase volume(5) | $ | 108,034 | $ | 97,469 | 11 | % | $ | 308,134 | $ | 281,406 | 9 | % | ||||||||||
(Dollars in millions, except as noted) | September 30, 2019 | December 31, 2018 | Change | |||||||||||||||||||
Selected period-end data: | ||||||||||||||||||||||
Loans held for investment(2) | $ | 113,681 | $ | 116,361 | (2 | )% | ||||||||||||||||
30+ day performing delinquency rate | 3.69 | % | 4.00 | % | (31 | )bps | ||||||||||||||||
30+ day delinquency rate | 3.71 | 4.01 | (30 | ) | ||||||||||||||||||
Nonperforming loan rate(6) | 0.02 | 0.02 | — | |||||||||||||||||||
Allowance for loan and lease losses | $ | 5,270 | $ | 5,535 | (5 | )% | ||||||||||||||||
Allowance coverage ratio | 4.64 | % | 4.76 | % | (12 | )bps |
We recognize |
(6)Within our credit card loan portfolio, only certain loans in our international card businesses are classified as nonperforming. See “MD&A—Nonperforming Loans and Other Nonperforming Assets” for additional information. ** Not meaningful |
•Net Interest Income: Net interest income decreased by $254 million to $3.3 billion in the third quarter of 2020 primarily driven by lower margins and lower average loan balances from customer behavior in response to the COVID-19 pandemic. Net interest income decreased by $304 million to $10.4 billion in the first nine months of 2020 primarily driven by lower margins, partially offset by growth in our domestic credit card loan portfolio, including the acquired Walmart portfolio. •Non-Interest Income: Non-interest income increased by $143 million to $1.0 billion in the third quarter of 2020 primarily driven by higher revenues from card partnership arrangements and a release in our U.K. PPI reserve in the current quarter compared to a build in the prior year quarter. Non-interest income decreased by $89 million to $2.8 billion in the first nine months of 2020 primarily driven by lower net interchange fees from a decline in purchase volume, partially offset by higher revenues from card partnership arrangements. •Provision for Credit Losses: Provision for credit losses decreased by $637 million to $450 million in the third quarter of 2020 primarily driven by an allowance release for partnership loans moved to held-for sale and lower loan balances. Provision for credit losses increased by $3.5 billion to $7.1 billion in the first nine months of 2020 driven by allowance builds in the first and second quarters of 2020 due to expectations of economic worsening as a result of the COVID-19 pandemic. •Non-Interest Expense: Non-interest expense decreased by $357 million to $2.0 billion in the third quarter of 2020 and decreased by $604 million to $6.2 billion in the first nine months of 2020 primarily driven by our decision to decrease marketing spend in the current economic environment. The third quarter of 2020 also benefited from a release in our U.K. PPI reserve compared to a build in the prior year quarter. • |
◦Period-end loans held for investment decreased by $24.6 billion to $103.6 billion as of September 30, 2020 from December 31, 2019 and average loans held for investment decreased by $7.0 billion to $105.4 billion in the third quarter of 2020 compared to the third quarter of 2019 primarily due to a decline in purchase volume and higher payments in response to the COVID-19 pandemic. Period-end loans held for investment also declined due to the transfer of a $2.1 billion partnership loan portfolio to held for sale as of September 30, 2020. ◦Average loans held for investment increased by $727 million to $112.3 billion in the first nine months of 2020 compared to the first nine months of 2019 primarily due to the acquired Walmart portfolio, largely offset by a decline in purchase volume and higher payments in response to the COVID-19 pandemic. •Net Charge-Off and Delinquency Metrics: The net charge-off rate decreased by 51 basis points to 3.58% in the third quarter of 2020 compared to the third quarter of 2019 and decreased by 32 basis points to 4.26% in the first nine months of 2020 compared to the first nine months of 2019 primarily driven by strong credit performance in Domestic Card due to consumer payment behavior, the impact of the government stimulus, and the impact of the acquired Walmart portfolio. The 30+ day delinquency rate decreased by 170 basis points to 2.21% as of September 30, 2020 from December 31, 2019 due to lower delinquency inventories in our domestic credit card loan portfolio primarily driven by consumer payment behavior, the impact of government stimulus, and seasonality. |
Capital One Financial Corporation (COF) |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||
(Dollars in millions, except as noted) | 2020 | 2019 | Change | 2020 | 2019 | Change | ||||||||||||||||||||||||||||||||
Selected income statement data: | ||||||||||||||||||||||||||||||||||||||
Net interest income | $ | 2,995 | $ | 3,299 | (9) | % | $ | 9,470 | $ | 9,792 | (3) | % | ||||||||||||||||||||||||||
Non-interest income | 952 | 878 | 8 | 2,589 | 2,722 | (5) | ||||||||||||||||||||||||||||||||
Total net revenue(1)(2) | 3,947 | 4,177 | (6) | 12,059 | 12,514 | (4) | ||||||||||||||||||||||||||||||||
Provision for credit losses | 378 | 1,010 | (63) | 6,748 | 3,325 | 103 | ||||||||||||||||||||||||||||||||
Non-interest expense | 1,802 | 2,076 | (13) | 5,562 | 6,059 | (8) | ||||||||||||||||||||||||||||||||
Income (loss) from continuing operations before income taxes | 1,767 | 1,091 | 62 | (251) | 3,130 | ** | ||||||||||||||||||||||||||||||||
Income tax provision (benefit) | 419 | 254 | 65 | (59) | 729 | ** | ||||||||||||||||||||||||||||||||
Income (loss) from continuing operations, net of tax | $ | 1,348 | $ | 837 | 61 | $ | (192) | $ | 2,401 | ** | ||||||||||||||||||||||||||||
Selected performance metrics: | ||||||||||||||||||||||||||||||||||||||
Average loans held for investment(3) | $ | 97,306 | $ | 103,426 | (6) | $ | 103,980 | $ | 102,677 | 1 | ||||||||||||||||||||||||||||
Average yield on loans held for investment(4) | 13.57 | % | 15.74 | % | (217) | bps | 13.82 | % | 15.67 | % | (185) | bps | ||||||||||||||||||||||||||
Total net revenue margin(5) | 16.22 | 16.15 | 7 | 15.46 | 16.25 | (79) | ||||||||||||||||||||||||||||||||
Net charge-offs | $ | 885 | $ | 1,065 | (17) | % | $ | 3,359 | $ | 3,599 | (7) | % | ||||||||||||||||||||||||||
Net charge-off rate | 3.64 | % | 4.12 | % | (48) | bps | 4.31 | % | 4.67 | % | (36) | bps | ||||||||||||||||||||||||||
Purchase volume | $ | 98,107 | $ | 99,087 | (1) | % | $ | 273,215 | $ | 282,878 | (3) | % | ||||||||||||||||||||||||||
(Dollars in millions, except as noted) | September 30, 2020 | December 31, 2019 | Change | |||||||||||||||||||||||||||||||||||
Selected period-end data: | ||||||||||||||||||||||||||||||||||||||
Loans held for investment(3)(6) | $ | 95,541 | $ | 118,606 | (19) | % | ||||||||||||||||||||||||||||||||
30+ day performing delinquency rate | 2.21 | % | 3.93 | % | (172) | bps | ||||||||||||||||||||||||||||||||
Allowance for credit losses | $ | 11,062 | $ | 4,997 | 121 | % | ||||||||||||||||||||||||||||||||
Allowance coverage ratio | 11.58 | % | 4.21 | % | 737 | bps | ||||||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||
(Dollars in millions, except as noted) | 2019 | 2018 | Change | 2019 | 2018 | Change | ||||||||||||||||
Selected income statement data: | ||||||||||||||||||||||
Net interest income | $ | 3,299 | $ | 3,280 | 1 | % | $ | 9,792 | $ | 9,617 | 2 | % | ||||||||||
Non-interest income | 878 | 819 | 7 | 2,722 | 2,411 | 13 | ||||||||||||||||
Total net revenue(1) | 4,177 | 4,099 | 2 | 12,514 | 12,028 | 4 | ||||||||||||||||
Provision for credit losses | 1,010 | 950 | 6 | 3,325 | 3,424 | (3 | ) | |||||||||||||||
Non-interest expense | 2,076 | 1,890 | 10 | 6,059 | 5,405 | 12 | ||||||||||||||||
Income from continuing operations before income taxes | 1,091 | 1,259 | (13 | ) | 3,130 | 3,199 | (2 | ) | ||||||||||||||
Income tax provision | 254 | 293 | (13 | ) | 729 | 745 | (2 | ) | ||||||||||||||
Income from continuing operations, net of tax | $ | 837 | $ | 966 | (13 | ) | $ | 2,401 | $ | 2,454 | (2 | ) | ||||||||||
Selected performance metrics: | ||||||||||||||||||||||
Average loans held for investment(2) | $ | 103,426 | $ | 100,566 | 3 | $ | 102,677 | $ | 99,970 | 3 | ||||||||||||
Average yield on loans held for investment(3) | 15.74 | % | 15.73 | % | 1 | bps | 15.67 | % | 15.29 | % | 38 | bps | ||||||||||
Total net revenue margin(4) | 16.15 | 16.30 | (15 | ) | 16.25 | 16.04 | 21 | |||||||||||||||
Net charge-offs | $ | 1,065 | $ | 1,094 | (3 | )% | $ | 3,599 | $ | 3,581 | 1 | % | ||||||||||
Net charge-off rate | 4.12 | % | 4.35 | % | (23 | )bps | 4.67 | % | 4.78 | % | (11 | )bps | ||||||||||
Purchase volume(5) | $ | 99,087 | $ | 89,205 | 11 | % | $ | 282,878 | $ | 257,340 | 10 | % | ||||||||||
(Dollars in millions, except as noted) | September 30, 2019 | December 31, 2018 | Change | |||||||||||||||||||
Selected period-end data: | ||||||||||||||||||||||
Loans held for investment(2) | $ | 104,664 | $ | 107,350 | (3 | )% | ||||||||||||||||
30+ day delinquency rate | 3.71 | % | 4.04 | % | (33 | )bps | ||||||||||||||||
Allowance for loan and lease losses | $ | 4,870 | $ | 5,144 | (5 | ) | ||||||||||||||||
Allowance coverage ratio | 4.65 | % | 4.79 | % | (14 | )bps |
Capital One Financial Corporation (COF) |
26 | Capital One Financial Corporation (COF) |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||
(Dollars in millions, except as noted) | 2019 | 2018 | Change | 2019 | 2018 | Change | ||||||||||||||||
Selected income statement data: | ||||||||||||||||||||||
Net interest income | $ | 1,682 | $ | 1,636 | 3 | % | $ | 5,070 | $ | 4,860 | 4 | % | ||||||||||
Non-interest income | 165 | 155 | 6 | 491 | 504 | (3 | ) | |||||||||||||||
Total net revenue | 1,847 | 1,791 | 3 | 5,561 | 5,364 | 4 | ||||||||||||||||
Provision for credit losses | 203 | 184 | 10 | 603 | 535 | 13 | ||||||||||||||||
Non-interest expense | 985 | 979 | 1 | 2,981 | 2,942 | 1 | ||||||||||||||||
Income from continuing operations before income taxes | 659 | 628 | 5 | 1,977 | 1,887 | 5 | ||||||||||||||||
Income tax provision | 154 | 146 | 5 | 461 | 440 | 5 | ||||||||||||||||
Income from continuing operations, net of tax | $ | 505 | $ | 482 | 5 | $ | 1,516 | $ | 1,447 | 5 | ||||||||||||
Selected performance metrics: | ||||||||||||||||||||||
Average loans held for investment: | ||||||||||||||||||||||
Auto | $ | 58,517 | $ | 56,297 | 4 | $ | 57,282 | $ | 55,320 | 4 | ||||||||||||
Home loan(1) | — | — | ** | — | 8,377 | ** | ||||||||||||||||
Retail banking | 2,752 | 2,923 | (6 | ) | 2,790 | 3,144 | (11 | ) | ||||||||||||||
Total consumer banking | $ | 61,269 | $ | 59,220 | 3 | $ | 60,072 | $ | 66,841 | (10 | ) | |||||||||||
Average yield on loans held for investment(2) | 8.47 | % | 8.03 | % | 44 | bps | 8.33 | % | 7.36 | % | 97 | bps | ||||||||||
Average deposits | $ | 204,933 | $ | 194,687 | 5 | % | $ | 203,404 | $ | 191,942 | 6 | % | ||||||||||
Average deposits interest rate | 1.31 | % | 1.00 | % | 31 | bps | 1.25 | % | 0.89 | % | 36 | bps | ||||||||||
Net charge-offs | $ | 251 | $ | 262 | (4 | )% | $ | 644 | $ | 683 | (6 | )% | ||||||||||
Net charge-off rate | 1.64 | % | 1.77 | % | (13 | )bps | 1.43 | % | 1.36 | % | 7 | bps | ||||||||||
Auto loan originations | $ | 8,175 | $ | 6,643 | 23 | % | $ | 21,723 | $ | 20,345 | 7 | % | ||||||||||
(Dollars in millions, except as noted) | September 30, 2019 | December 31, 2018 | Change | |||||||||||||||||||
Selected period-end data: | ||||||||||||||||||||||
Loans held for investment: | ||||||||||||||||||||||
Auto | $ | 59,278 | $ | 56,341 | 5 | % | ||||||||||||||||
Retail banking | 2,737 | 2,864 | (4 | ) | ||||||||||||||||||
Total consumer banking | $ | 62,015 | $ | 59,205 | 5 | |||||||||||||||||
30+ day performing delinquency rate | 6.23 | % | 6.67 | % | (44 | )bps | ||||||||||||||||
30+ day delinquency rate | 6.86 | 7.36 | (50 | ) | ||||||||||||||||||
Nonperforming loan rate | 0.74 | 0.81 | (7 | ) | ||||||||||||||||||
Nonperforming asset rate(3) | 0.83 | 0.90 | (7 | ) | ||||||||||||||||||
Allowance for loan and lease losses | $ | 1,007 | $ | 1,048 | (4 | )% | ||||||||||||||||
Allowance coverage ratio | 1.62 | % | 1.77 | % | (15 | )bps | ||||||||||||||||
Deposits | $ | 206,423 | $ | 198,607 | 4 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||
(Dollars in millions, except as noted) | 2020 | 2019 | Change | 2020 | 2019 | Change | ||||||||||||||||||||||||||||||||
Selected income statement data: | ||||||||||||||||||||||||||||||||||||||
Net interest income | $ | 1,904 | $ | 1,682 | 13 | % | $ | 5,226 | $ | 5,070 | 3 | % | ||||||||||||||||||||||||||
Non-interest income | 107 | 165 | (35) | 330 | 491 | (33) | ||||||||||||||||||||||||||||||||
Total net revenue | 2,011 | 1,847 | 9 | 5,556 | 5,561 | — | ||||||||||||||||||||||||||||||||
Provision (benefit) for credit losses | (43) | 203 | ** | 1,693 | 603 | 181 | ||||||||||||||||||||||||||||||||
Non-interest expense | 1,011 | 985 | 3 | 3,038 | 2,981 | 2 | ||||||||||||||||||||||||||||||||
Income from continuing operations before income taxes | 1,043 | 659 | 58 | 825 | 1,977 | (58) | ||||||||||||||||||||||||||||||||
Income tax provision | 247 | 154 | 60 | 195 | 461 | (58) | ||||||||||||||||||||||||||||||||
Income from continuing operations, net of tax | $ | 796 | $ | 505 | 58 | $ | 630 | $ | 1,516 | (58) | ||||||||||||||||||||||||||||
Selected performance metrics: | ||||||||||||||||||||||||||||||||||||||
Average loans held for investment: | ||||||||||||||||||||||||||||||||||||||
Auto | $ | 64,476 | $ | 58,517 | 10 | $ | 62,434 | $ | 57,282 | 9 | ||||||||||||||||||||||||||||
Retail banking | 3,346 | 2,752 | 22 | 3,023 | 2,790 | 8 | ||||||||||||||||||||||||||||||||
Total consumer banking | $ | 67,822 | $ | 61,269 | 11 | $ | 65,457 | $ | 60,072 | 9 | ||||||||||||||||||||||||||||
Average yield on loans held for investment(1) | 8.36 | % | 8.47 | % | (11) | bps | 8.41 | % | 8.33 | % | 8 | bps | ||||||||||||||||||||||||||
Average deposits | $ | 248,418 | $ | 204,933 | 21 | % | $ | 231,988 | $ | 203,404 | 14 | % | ||||||||||||||||||||||||||
Average deposits interest rate | 0.66 | % | 1.31 | % | (65) | bps | 0.86 | % | 1.25 | % | (39) | bps | ||||||||||||||||||||||||||
Net charge-offs | $ | 48 | $ | 251 | (81) | % | $ | 486 | $ | 644 | (25) | % | ||||||||||||||||||||||||||
Net charge-off rate | 0.28 | % | 1.64 | % | (136) | bps | 0.99 | % | 1.43 | % | (44) | bps | ||||||||||||||||||||||||||
Auto loan originations | $ | 8,979 | $ | 8,175 | 10 | % | $ | 24,910 | $ | 21,723 | 15 | % | ||||||||||||||||||||||||||
(Dollars in millions, except as noted) | September 30, 2020 | December 31, 2019 | Change | |||||||||||||||||||||||||||||||||||
Selected period-end data: | ||||||||||||||||||||||||||||||||||||||
Loans held for investment: | ||||||||||||||||||||||||||||||||||||||
Auto | $ | 65,394 | $ | 60,362 | 8 | % | ||||||||||||||||||||||||||||||||
Retail banking | 3,294 | 2,703 | 22 | |||||||||||||||||||||||||||||||||||
Total consumer banking | $ | 68,688 | $ | 63,065 | 9 | |||||||||||||||||||||||||||||||||
30+ day performing delinquency rate | 3.62 | % | 6.63 | % | (301) | bps | ||||||||||||||||||||||||||||||||
30+ day delinquency rate | 3.90 | 7.34 | (344) | |||||||||||||||||||||||||||||||||||
Nonperforming loan rate | 0.38 | 0.81 | (43) | |||||||||||||||||||||||||||||||||||
Nonperforming asset rate(2) | 0.43 | 0.91 | (48) | |||||||||||||||||||||||||||||||||||
Allowance for credit losses | $ | 2,747 | $ | 1,038 | 165 | % | ||||||||||||||||||||||||||||||||
Allowance coverage ratio | 4.00 | % | 1.65 | % | 235 | bps | ||||||||||||||||||||||||||||||||
Deposits | $ | 249,684 | $ | 213,099 | 17 | % |
Capital One Financial Corporation (COF) |
•Net Interest Income: Net interest income |
28 | Capital One Financial Corporation (COF) |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||
(Dollars in millions, except as noted) | 2019 | 2018 | Change | 2019 | 2018 | Change | ||||||||||||||||
Selected income statement data: | ||||||||||||||||||||||
Net interest income | $ | 486 | $ | 513 | (5 | )% | $ | 1,489 | $ | 1,536 | (3 | )% | ||||||||||
Non-interest income | 221 | 189 | 17 | 608 | 585 | 4 | ||||||||||||||||
Total net revenue(1)(2) | 707 | 702 | 1 | 2,097 | 2,121 | (1 | ) | |||||||||||||||
Provision for credit losses(3) | 93 | 54 | 72 | 244 | 74 | 230 | ||||||||||||||||
Non-interest expense | 414 | 408 | 1 | 1,258 | 1,220 | 3 | ||||||||||||||||
Income from continuing operations before income taxes | 200 | 240 | (17 | ) | 595 | 827 | (28 | ) | ||||||||||||||
Income tax provision | 46 | 56 | (18 | ) | 138 | 193 | (28 | ) | ||||||||||||||
Income from continuing operations, net of tax | $ | 154 | $ | 184 | (16 | ) | $ | 457 | $ | 634 | (28 | ) | ||||||||||
Selected performance metrics: | ||||||||||||||||||||||
Average loans held for investment: | ||||||||||||||||||||||
Commercial and multifamily real estate | $ | 29,698 | $ | 28,354 | 5 | $ | 29,418 | $ | 27,406 | 7 | ||||||||||||
Commercial and industrial | 42,807 | 39,318 | 9 | 42,474 | 38,754 | 10 | ||||||||||||||||
Total commercial lending | 72,505 | 67,672 | 7 | 71,892 | 66,160 | 9 | ||||||||||||||||
Small-ticket commercial real estate | 2 | 364 | (99 | ) | 93 | 378 | (75 | ) | ||||||||||||||
Total commercial banking | $ | 72,507 | $ | 68,036 | 7 | $ | 71,985 | $ | 66,538 | 8 | ||||||||||||
Average yield on loans held for investment(1)(4) | 4.45 | % | 4.55 | % | (10 | )bps | 4.61 | % | 4.38 | % | 23 | bps | ||||||||||
Average deposits | $ | 30,693 | $ | 31,061 | (1 | )% | $ | 30,957 | $ | 32,679 | (5 | )% | ||||||||||
Average deposits interest rate | 1.25 | % | 0.79 | % | 46 | bps | 1.21 | % | 0.65 | % | 56 | bps | ||||||||||
Net charge-offs | $ | 60 | $ | 27 | 122 | % | $ | 90 | $ | 39 | 131 | % | ||||||||||
Net charge-off rate | 0.33 | % | 0.16 | % | 17 | bps | 0.17 | % | 0.08 | % | 9 | bps | ||||||||||
(Dollars in millions, except as noted) | September 30, 2019 | December 31, 2018 | Change | |||||||||||||||||||
Selected period-end data: | ||||||||||||||||||||||
Loans held for investment: | ||||||||||||||||||||||
Commercial and multifamily real estate | $ | 30,009 | $ | 28,899 | 4 | % | ||||||||||||||||
Commercial and industrial | 43,650 | 41,091 | 6 | |||||||||||||||||||
Total commercial lending | 73,659 | 69,990 | 5 | |||||||||||||||||||
Small-ticket commercial real estate | — | 343 | ** | |||||||||||||||||||
Total commercial banking | $ | 73,659 | $ | 70,333 | 5 | |||||||||||||||||
Nonperforming loan rate | 0.61 | % | 0.44 | % | 17 | bps | ||||||||||||||||
Nonperforming asset rate(5) | 0.61 | 0.45 | 16 | |||||||||||||||||||
Allowance for loan and lease losses(3) | $ | 760 | $ | 637 | 19 | % | ||||||||||||||||
Allowance coverage ratio | 1.03 | % | 0.91 | % | 12 | bps | ||||||||||||||||
Deposits | $ | 30,923 | $ | 29,480 | 5 | % | ||||||||||||||||
Loans serviced for others | 36,903 | 32,588 | 13 |
Capital One Financial Corporation (COF) |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||
(Dollars in millions, except as noted) | 2020 | 2019 | Change | 2020 | 2019 | Change | ||||||||||||||||||||||||||||||||
Selected income statement data: | ||||||||||||||||||||||||||||||||||||||
Net interest income | $ | 517 | $ | 486 | 6 | % | $ | 1,526 | $ | 1,489 | 2 | % | ||||||||||||||||||||||||||
Non-interest income | 237 | 221 | 7 | 655 | 608 | 8 | ||||||||||||||||||||||||||||||||
Total net revenue(1) | 754 | 707 | 7 | 2,181 | 2,097 | 4 | ||||||||||||||||||||||||||||||||
Provision (benefit) for credit losses(2) | (74) | 93 | ** | 1,209 | 244 | ** | ||||||||||||||||||||||||||||||||
Non-interest expense | 424 | 414 | 2 | 1,261 | 1,258 | — | ||||||||||||||||||||||||||||||||
Income (loss) from continuing operations before income taxes | 404 | 200 | 102 | (289) | 595 | ** | ||||||||||||||||||||||||||||||||
Income tax provision (benefit) | 95 | 46 | 107 | (69) | 138 | ** | ||||||||||||||||||||||||||||||||
Income (loss) from continuing operations, net of tax | $ | 309 | $ | 154 | 101 | $ | (220) | $ | 457 | ** | ||||||||||||||||||||||||||||
Selected performance metrics: | ||||||||||||||||||||||||||||||||||||||
Average loans held for investment: | ||||||||||||||||||||||||||||||||||||||
Commercial and multifamily real estate | $ | 30,918 | $ | 29,698 | 4 | $ | 31,239 | $ | 29,418 | 6 | ||||||||||||||||||||||||||||
Commercial and industrial | 45,404 | 42,807 | 6 | 46,264 | 42,474 | 9 | ||||||||||||||||||||||||||||||||
Total commercial lending | 76,322 | 72,505 | 5 | 77,503 | 71,892 | 8 | ||||||||||||||||||||||||||||||||
Small-ticket commercial real estate | — | 2 | ** | — | 93 | ** | ||||||||||||||||||||||||||||||||
Total commercial banking | $ | 76,322 | $ | 72,507 | 5 | $ | 77,503 | $ | 71,985 | 8 | ||||||||||||||||||||||||||||
Average yield on loans held for investment(1)(3) | 2.82 | % | 4.45 | % | (163) | bps | 3.23 | % | 4.61 | % | (138) | bps | ||||||||||||||||||||||||||
Average deposits | $ | 36,278 | $ | 30,693 | 18 | % | $ | 34,391 | $ | 30,957 | 11 | % | ||||||||||||||||||||||||||
Average deposits interest rate | 0.25 | % | 1.25 | % | (100) | bps | 0.47 | % | 1.21 | % | (74) | bps | ||||||||||||||||||||||||||
Net charge-offs | $ | 82 | $ | 60 | 37 | % | $ | 293 | $ | 90 | ** | |||||||||||||||||||||||||||
Net charge-off rate | 0.43 | % | 0.33 | % | 10 | bps | 0.50 | % | 0.17 | % | 33 | bps | ||||||||||||||||||||||||||
(Dollars in millions, except as noted) | September 30, 2020 | December 31, 2019 | Change | |||||||||||||||||||||||||||||||||||
Selected period-end data: | ||||||||||||||||||||||||||||||||||||||
Loans held for investment: | ||||||||||||||||||||||||||||||||||||||
Commercial and multifamily real estate | $ | 31,197 | $ | 30,245 | 3 | % | ||||||||||||||||||||||||||||||||
Commercial and industrial | 44,697 | 44,263 | 1 | |||||||||||||||||||||||||||||||||||
Total commercial banking | $ | 75,894 | $ | 74,508 | 2 | |||||||||||||||||||||||||||||||||
Nonperforming loan rate | 1.01 | % | 0.60 | % | 41 | bps | ||||||||||||||||||||||||||||||||
Nonperforming asset rate(4) | 1.01 | 0.60 | 41 | |||||||||||||||||||||||||||||||||||
Allowance for credit losses(2) | $ | 1,770 | $ | 775 | 128 | % | ||||||||||||||||||||||||||||||||
Allowance coverage ratio | 2.33 | % | 1.04 | % | 129 | bps | ||||||||||||||||||||||||||||||||
Deposits | $ | 36,783 | $ | 32,134 | 14 | % | ||||||||||||||||||||||||||||||||
Loans serviced for others | 41,602 | 38,481 | 8 |
•Net Interest Income: Net interest income increased by $31 million to $517 million in the third quarter of 2020 and increased by $37 million to $1.5 billion in the first nine months of 2020 as higher average loans and deposits were partially offset by slightly lower loan margins. •Non-Interest Income: Non-interest income increased by $16 million to $237 million in the third quarter of 2020 primarily driven by higher revenue from our agency business partially offset by lower activity in our capital markets business and increased by $47 million to $655 million in the first nine months of 2020 primarily driven by higher revenue from our agency and capital markets businesses. •Provision for Credit Losses: Provision for credit losses decreased by $167 million to a benefit of $74 million in the third quarter of 2020 driven by an allowance release primarily due to lower loan balances. Provision for credit losses increased by $965 million to $1.2 billion in the first nine months of 2020 driven by allowance builds in the first and second quarters of 2020 due to expectations of economic worsening as a result of the COVID-19 pandemic as well as credit deterioration in our energy loan portfolio. •Non-Interest Expense: Non-interest expense remained substantially flat at $424 million in the third quarter of 2020 and $1.3 billion in the first nine months of 2020. •Loans Held for Investment: Period-end loans held for investment increased by $1.4 billion to $75.9 billion as of September 30, 2020 from December 31, 2019, and average loans held for investment increased by $3.8 billion to $76.3 billion in the third quarter of 2020 compared to the third quarter of 2019 and increased by $5.5 billion to $77.5 billion in the first nine months of 2020 compared to the first nine months of 2019 driven by growth across our commercial loan portfolio. •Deposits: Period-end deposits increased by $4.6 billion to $36.8 billion as of September 30, 2020 from December 31, 2019 primarily driven by elevated client liquidity. •Net Charge-Off and Nonperforming Metrics: The net charge-off rate increased by 10 basis points to 0.43% in the third quarter of 2020 primarily driven by isolated charge-offs in our real estate portfolio and increased by 33 basis points to 0.50% in the first nine months of 2020 primarily driven by elevated charge-offs in our energy loan portfolio. |
Capital One Financial Corporation (COF) |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||
(Dollars in millions) | 2020 | 2019 | Change | 2020 | 2019 | Change | ||||||||||||||||||||||||||||||||
Selected income statement data: | ||||||||||||||||||||||||||||||||||||||
Net interest income (loss) | $ | (158) | $ | 23 | ** | $ | (75) | $ | 48 | ** | ||||||||||||||||||||||||||||
Non-interest income (loss) | 469 | (34) | ** | 392 | (65) | ** | ||||||||||||||||||||||||||||||||
Total net revenue (loss)(1) | 311 | (11) | ** | 317 | (17) | ** | ||||||||||||||||||||||||||||||||
Provision (benefit) for credit losses | (2) | — | ** | 2 | — | ** | ||||||||||||||||||||||||||||||||
Non-interest expense(2) | 110 | 113 | (3) | % | 568 | 299 | 90 | % | ||||||||||||||||||||||||||||||
Income (loss) from continuing operations before income taxes | 203 | (124) | ** | (253) | (316) | (20) | ||||||||||||||||||||||||||||||||
Income tax provision (benefit) | 316 | (60) | ** | (102) | (275) | (63) | ||||||||||||||||||||||||||||||||
Loss from continuing operations, net of tax | $ | (113) | $ | (64) | 77 | $ | (151) | $ | (41) | ** |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||
(Dollars in millions) | 2019 | 2018 | Change | 2019 | 2018 | Change | ||||||||||||||||
Selected income statement data: | ||||||||||||||||||||||
Net interest income | $ | 23 | $ | 41 | (44 | )% | $ | 48 | $ | 109 | (56 | )% | ||||||||||
Non-interest income (loss) | (34 | ) | (61 | ) | (44 | ) | (65 | ) | 285 | ** | ||||||||||||
Total net revenue (loss)(1)(2) | (11 | ) | (20 | ) | (45 | ) | (17 | ) | 394 | ** | ||||||||||||
Benefit for credit losses | — | (1 | ) | ** | — | (49 | ) | ** | ||||||||||||||
Non-interest expense(3) | 113 | 283 | (60 | ) | 299 | 562 | (47 | ) | ||||||||||||||
Loss from continuing operations before income taxes | (124 | ) | (302 | ) | (59 | ) | (316 | ) | (119 | ) | 166 | |||||||||||
Income tax benefit | (60 | ) | (97 | ) | (38 | ) | (275 | ) | (129 | ) | 113 | |||||||||||
Income (loss) from continuing operations, net of tax | $ | (64 | ) | $ | (205 | ) | (69 | ) | $ | (41 | ) | $ | 10 | ** |
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 |
CRITICAL ACCOUNTING POLICIES AND ESTIMATES |
32 | Capital One Financial Corporation (COF) |
33 | Capital One Financial Corporation (COF) |
ACCOUNTING CHANGES AND DEVELOPMENTS |
Standard | Guidance | Adoption Timing and Financial Statement Impacts | ||||||||||||
Reference Rate Reform ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effect of Reference Rate Reform on Financial Reporting Issued March 2020 | The amendments in this ASU provide optional expedients and exceptions for applying generally accepted accounting principles (GAAP) to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. | This ASU is effective from March 12, 2020 through December 31, 2022 with early adoption as of January 1, 2020 permitted. We are evaluating the expected impact of and our operational readiness for this ASU. | ||||||||||||
Income Tax Accounting Simplification ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes Issued December 2019 | Simplifies various aspects of the guidance on accounting for income taxes. | This ASU is effective January 1, 2021 with early adoption permitted, using the retrospective, modified retrospective and prospective methods of adoption. We are currently evaluating the impact of adopting this standard. | ||||||||||||
34 | Capital One Financial Corporation (COF) |
CAPITAL MANAGEMENT |
September 30, 2019 | December 31, 2018 | |||||||||||||||||
Capital Ratio | Minimum Capital Adequacy | Well- Capitalized | Capital Ratio | Minimum Capital Adequacy | Well- Capitalized | |||||||||||||
Capital One Financial Corp: | ||||||||||||||||||
Common equity Tier 1 capital(3) | 12.5 | % | 4.5 | % | N/A | 11.2 | % | 4.5 | % | N/A | ||||||||
Tier 1 capital(4) | 14.4 | 6.0 | 6.0 | % | 12.7 | 6.0 | 6.0 | % | ||||||||||
Total capital(5) | 16.8 | 8.0 | 10.0 | 15.1 | 8.0 | 10.0 | ||||||||||||
Tier 1 leverage(6) | 11.9 | 4.0 | N/A | 10.7 | 4.0 | N/A | ||||||||||||
Supplementary leverage(7) | 10.1 | 3.0 | N/A | 9.0 | 3.0 | N/A | ||||||||||||
COBNA: | ||||||||||||||||||
Common equity Tier 1 capital(3) | 15.8 | 4.5 | 6.5 | 15.3 | 4.5 | 6.5 | ||||||||||||
Tier 1 capital(4) | 15.8 | 6.0 | 8.0 | 15.3 | 6.0 | 8.0 | ||||||||||||
Total capital(5) | 17.8 | 8.0 | 10.0 | 17.6 | 8.0 | 10.0 | ||||||||||||
Tier 1 leverage(6) | 14.2 | 4.0 | 5.0 | 14.0 | 4.0 | 5.0 | ||||||||||||
Supplementary leverage(7) | 11.5 | 3.0 | N/A | 11.5 | 3.0 | N/A | ||||||||||||
CONA: | ||||||||||||||||||
Common equity Tier 1 capital(3) | 14.0 | 4.5 | 6.5 | 13.0 | 4.5 | 6.5 | ||||||||||||
Tier 1 capital(4) | 14.0 | 6.0 | 8.0 | 13.0 | 6.0 | 8.0 | ||||||||||||
Total capital(5) | 15.2 | 8.0 | 10.0 | 14.2 | 8.0 | 10.0 | ||||||||||||
Tier 1 leverage(6) | 9.4 | 4.0 | 5.0 | 9.1 | 4.0 | 5.0 | ||||||||||||
Supplementary leverage(7) | 8.4 | 3.0 | N/A | 8.0 | 3.0 | N/A |
(Dollars in millions) | September 30, 2019 | December 31, 2018 | ||||||
Regulatory Capital Under Basel III Standardized Approach | ||||||||
Common equity excluding AOCI | $ | 51,959 | $ | 48,570 | ||||
Adjustments: | ||||||||
AOCI(1) | 453 | (1,263 | ) | |||||
Goodwill, net of related deferred tax liabilities | (14,439 | ) | (14,373 | ) | ||||
Intangible assets, net of related deferred tax liabilities | (180 | ) | (254 | ) | ||||
Other | (588 | ) | 391 | |||||
Common equity Tier 1 capital | 37,205 | 33,071 | ||||||
Tier 1 capital instruments | 5,823 | 4,360 | ||||||
Tier 1 capital | 43,028 | 37,431 | ||||||
Tier 2 capital instruments | 3,378 | 3,483 | ||||||
Qualifying allowance for loan and lease losses | 3,768 | 3,731 | ||||||
Tier 2 capital | 7,146 | 7,214 | ||||||
Total capital | $ | 50,174 | $ | 44,645 | ||||
Regulatory Capital Metrics | ||||||||
Risk-weighted assets | $ | 298,130 | $ | 294,950 | ||||
Adjusted average assets | 360,266 | 350,606 | ||||||
Total leverage exposure | 424,648 | 414,701 |
35 | Capital One Financial Corporation (COF) |
Capital One Financial Corporation (COF) |
September 30, 2020 | December 31, 2019 | |||||||||||||||||||||||||||||||||||||
Ratio | Minimum Capital Adequacy | Well- Capitalized | Ratio | Minimum Capital Adequacy | Well- Capitalized | |||||||||||||||||||||||||||||||||
Capital One Financial Corp: | ||||||||||||||||||||||||||||||||||||||
Common equity Tier 1 capital(3) | 13.0 | % | 4.5 | % | N/A | 12.2 | % | 4.5 | % | N/A | ||||||||||||||||||||||||||||
Tier 1 capital(4) | 14.8 | 6.0 | 6.0 | % | 13.7 | 6.0 | 6.0 | % | ||||||||||||||||||||||||||||||
Total capital(5) | 17.3 | 8.0 | 10.0 | 16.1 | 8.0 | 10.0 | ||||||||||||||||||||||||||||||||
Tier 1 leverage(6) | 10.6 | 4.0 | N/A | 11.7 | 4.0 | N/A | ||||||||||||||||||||||||||||||||
Supplementary leverage(7)(8) | 10.2 | 3.0 | N/A | 9.9 | 3.0 | N/A | ||||||||||||||||||||||||||||||||
COBNA: | ||||||||||||||||||||||||||||||||||||||
Common equity Tier 1 capital(3) | 20.3 | 4.5 | 6.5 | 16.1 | 4.5 | 6.5 | ||||||||||||||||||||||||||||||||
Tier 1 capital(4) | 20.3 | 6.0 | 8.0 | 16.1 | 6.0 | 8.0 | ||||||||||||||||||||||||||||||||
Total capital(5) | 22.3 | 8.0 | 10.0 | 18.1 | 8.0 | 10.0 | ||||||||||||||||||||||||||||||||
Tier 1 leverage(6) | 16.2 | 4.0 | 5.0 | 14.8 | 4.0 | 5.0 | ||||||||||||||||||||||||||||||||
Supplementary leverage(7) | 13.0 | 3.0 | N/A | 12.1 | 3.0 | N/A | ||||||||||||||||||||||||||||||||
CONA: | ||||||||||||||||||||||||||||||||||||||
Common equity Tier 1 capital(3) | 12.1 | 4.5 | 6.5 | 13.4 | 4.5 | 6.5 | ||||||||||||||||||||||||||||||||
Tier 1 capital(4) | 12.1 | 6.0 | 8.0 | 13.4 | 6.0 | 8.0 | ||||||||||||||||||||||||||||||||
Total capital(5) | 13.4 | 8.0 | 10.0 | 14.5 | 8.0 | 10.0 | ||||||||||||||||||||||||||||||||
Tier 1 leverage(6) | 7.4 | 4.0 | 5.0 | 9.2 | 4.0 | 5.0 | ||||||||||||||||||||||||||||||||
Supplementary leverage(7) | 6.7 | 3.0 | N/A | 8.2 | 3.0 | N/A |
37 | Capital One Financial Corporation (COF) |
(Dollars in millions) | September 30, 2020 | December 31, 2019 | ||||||||||||
Regulatory Capital Under Basel III Standardized Approach | ||||||||||||||
Common equity excluding AOCI | $ | 52,839 | $ | 52,001 | ||||||||||
Adjustments: | ||||||||||||||
AOCI, net of tax(1) | (122) | 1,156 | ||||||||||||
Goodwill, net of related deferred tax liabilities | (14,448) | (14,465) | ||||||||||||
Intangible assets, net of related deferred tax liabilities | (95) | (170) | ||||||||||||
Other(1) | — | (360) | ||||||||||||
Common equity Tier 1 capital | 38,174 | 38,162 | ||||||||||||
Tier 1 capital instruments | 5,331 | 4,853 | ||||||||||||
Tier 1 capital | 43,505 | 43,015 | ||||||||||||
Tier 2 capital instruments | 3,675 | 3,377 | ||||||||||||
Qualifying allowance for credit losses | 3,775 | 3,956 | ||||||||||||
Tier 2 capital | 7,450 | 7,333 | ||||||||||||
Total capital | $ | 50,955 | $ | 50,348 | ||||||||||
Regulatory Capital Metrics | ||||||||||||||
Risk-weighted assets | $ | 293,852 | $ | 313,155 | ||||||||||
Adjusted average assets | 409,602 | 368,511 | ||||||||||||
Total leverage exposure | 425,729 | 435,976 |
38 | Capital One Financial Corporation (COF) |
39 | Capital One Financial Corporation (COF) |
Series | Description | Issuance Date | Per Annum Dividend Rate | Dividend Frequency | 2020 | |||||||||||||||||||||||||||||||||||||||
Q3 | Q2 | Q1 | ||||||||||||||||||||||||||||||||||||||||||
Series B(1) | 6.000% Non-Cumulative | August 20, 2012 | 6.000% | Quarterly | — | — | $15.00 | |||||||||||||||||||||||||||||||||||||
Series E | Fixed-to-Floating Rate Non-Cumulative | May 14, 2015 | 5.550% through 5/31/2020; 3-mo. LIBOR + 380 bps thereafter | Semi-Annually through 5/31/2020; Quarterly thereafter | $10.61 | $27.75 | — | |||||||||||||||||||||||||||||||||||||
Series F | 6.200% Non-Cumulative | August 24, 2015 | 6.200 | Quarterly | 15.50 | 15.50 | 15.50 | |||||||||||||||||||||||||||||||||||||
Series G | 5.200% Non-Cumulative | July 29, 2016 | 5.200 | Quarterly | 13.00 | 13.00 | 13.00 | |||||||||||||||||||||||||||||||||||||
Series H | 6.000% Non-Cumulative | November 29, 2016 | 6.000 | Quarterly | 15.00 | 15.00 | 15.00 | |||||||||||||||||||||||||||||||||||||
Series I | 5.000% Non-Cumulative | September 11, 2019 | 5.000 | Quarterly | 12.50 | 12.50 | 12.50 | |||||||||||||||||||||||||||||||||||||
Series J | 4.800% Non-Cumulative | January 31, 2020 | 4.800 | Quarterly | 12.00 | 16.13 | — | |||||||||||||||||||||||||||||||||||||
Series K | 4.625% Non-Cumulative | September 17, 2020 | 4.625 | Quarterly | — | — | — |
Series | Description | Issuance Date | Per Annum Dividend Rate | Dividend Frequency | 2019 | |||||||||
Q3 | Q2 | Q1 | ||||||||||||
Series B | 6.00% Non-Cumulative | August 20, 2012 | 6.00% | Quarterly | $15.00 | $15.00 | $15.00 | |||||||
Series C | 6.25% Non-Cumulative | June 12, 2014 | 6.25 | Quarterly | 15.63 | 15.63 | 15.63 | |||||||
Series D | 6.70% Non-Cumulative | October 31, 2014 | 6.70 | Quarterly | 16.75 | 16.75 | 16.75 | |||||||
Series E | Fixed-to-Floating Rate Non-Cumulative | May 14, 2015 | 5.55% through 5/31/2020; 3-mo. LIBOR+ 380 bps thereafter | Semi-Annually through 5/31/2020; Quarterly thereafter | — | 27.75 | — | |||||||
Series F | 6.20% Non-Cumulative | August 24, 2015 | 6.20 | Quarterly | 15.50 | 15.50 | 15.50 | |||||||
Series G | 5.20% Non-Cumulative | July 29, 2016 | 5.20 | Quarterly | 13.00 | 13.00 | 13.00 | |||||||
Series H | 6.00% Non-Cumulative | November 29, 2016 | 6.00 | Quarterly | 15.00 | 15.00 | 15.00 | |||||||
Series I | 5.00% Non-Cumulative | September 11, 2019 | 5.00 | Quarterly | — | — | — |
40 | Capital One Financial Corporation (COF) |
RISK MANAGEMENT |
Governance and Accountability | ||||||||||||||||||||
Strategy and Risk Alignment | ||||||||||||||||||||
Risk Identification | Assessment, Measurement | Monitoring and Testing | Aggregation, Reporting and Escalation | |||||||||||||||||
Capital and Liquidity Management (including Stress Testing) | ||||||||||||||||||||
Risk Data and Enabling Technology | ||||||||||||||||||||
Culture and Talent Management |
41 | Capital One Financial Corporation (COF) |
CREDIT RISK PROFILE | ||
42 | Capital One Financial Corporation (COF) |
September 30, 2020 | December 31, 2019 | ||||||||||||||||||||||||||||
(Dollars in millions) | Loans | % of Total | Loans | % of Total | |||||||||||||||||||||||||
Credit Card: | |||||||||||||||||||||||||||||
Domestic credit card | $ | 95,541 | 38.5 | % | $ | 118,606 | 44.6 | % | |||||||||||||||||||||
International card businesses | 8,100 | 3.3 | 9,630 | 3.6 | |||||||||||||||||||||||||
Total credit card | 103,641 | 41.8 | 128,236 | 48.2 | |||||||||||||||||||||||||
Consumer Banking: | |||||||||||||||||||||||||||||
Auto | 65,394 | 26.3 | 60,362 | 22.7 | |||||||||||||||||||||||||
Retail banking(1) | 3,294 | 1.3 | 2,703 | 1.0 | |||||||||||||||||||||||||
Total consumer banking | 68,688 | 27.6 | 63,065 | 23.7 | |||||||||||||||||||||||||
Commercial Banking:(1) | |||||||||||||||||||||||||||||
Commercial and multifamily real estate | 31,197 | 12.6 | 30,245 | 11.4 | |||||||||||||||||||||||||
Commercial and industrial | 44,697 | 18.0 | 44,263 | 16.7 | |||||||||||||||||||||||||
Total commercial banking | 75,894 | 30.6 | 74,508 | 28.1 | |||||||||||||||||||||||||
Total loans held for investment | $ | 248,223 | 100.0 | % | $ | 265,809 | 100.0 | % |
September 30, 2020 | December 31, 2019 | |||||||||||||||||||||||||
(Dollars in millions) | Amount | % of Total | Amount | % of Total | ||||||||||||||||||||||
Domestic credit card: | ||||||||||||||||||||||||||
California | $ | 9,751 | 9.4 | % | $ | 12,538 | 9.8 | % | ||||||||||||||||||
Texas | 7,807 | 7.5 | 9,353 | 7.3 | ||||||||||||||||||||||
Florida | 6,616 | 6.4 | 8,093 | 6.3 | ||||||||||||||||||||||
New York | 6,172 | 6.0 | 7,941 | 6.2 | ||||||||||||||||||||||
Illinois | 4,075 | 3.9 | 5,195 | 4.1 | ||||||||||||||||||||||
Pennsylvania | 3,997 | 3.9 | 4,979 | 3.9 | ||||||||||||||||||||||
Ohio | 3,491 | 3.4 | 4,388 | 3.4 | ||||||||||||||||||||||
New Jersey | 3,096 | 3.0 | 3,915 | 3.1 | ||||||||||||||||||||||
Michigan | 2,934 | 2.8 | 3,811 | 3.0 | ||||||||||||||||||||||
Other | 47,602 | 45.9 | 58,393 | 45.4 | ||||||||||||||||||||||
Total domestic credit card | 95,541 | 92.2 | 118,606 | 92.5 | ||||||||||||||||||||||
International card businesses: | ||||||||||||||||||||||||||
Canada | 5,498 | 5.3 | 6,493 | 5.1 | ||||||||||||||||||||||
United Kingdom | 2,602 | 2.5 | 3,137 | 2.4 | ||||||||||||||||||||||
Total international card businesses | 8,100 | 7.8 | 9,630 | 7.5 | ||||||||||||||||||||||
Total credit card | $ | 103,641 | 100.0 | % | $ | 128,236 | 100.0 | % |
September 30, 2019 | December 31, 2018 | |||||||||||||
(Dollars in millions) | Loans | % of Total | Loans | % of Total | ||||||||||
Credit Card: | ||||||||||||||
Domestic credit card | $ | 104,664 | 42.0 | % | $ | 107,350 | 43.6 | % | ||||||
International card businesses | 9,017 | 3.6 | 9,011 | 3.7 | ||||||||||
Total credit card | 113,681 | 45.6 | 116,361 | 47.3 | ||||||||||
Consumer Banking: | ||||||||||||||
Auto | 59,278 | 23.8 | 56,341 | 22.9 | ||||||||||
Retail banking | 2,737 | 1.1 | 2,864 | 1.2 | ||||||||||
Total consumer banking | 62,015 | 24.9 | 59,205 | 24.1 | ||||||||||
Commercial Banking: | ||||||||||||||
Commercial and multifamily real estate | 30,009 | 12.0 | 28,899 | 11.8 | ||||||||||
Commercial and industrial | 43,650 | 17.5 | 41,091 | 16.7 | ||||||||||
Total commercial lending | 73,659 | 29.5 | 69,990 | 28.5 | ||||||||||
Small-ticket commercial real estate | — | — | 343 | 0.1 | ||||||||||
Total commercial banking | 73,659 | 29.5 | 70,333 | 28.6 | ||||||||||
Total loans held for investment | $ | 249,355 | 100.0 | % | $ | 245,899 | 100.0 | % |
43 | Capital One Financial Corporation (COF) |
September 30, 2020 | December 31, 2019 | |||||||||||||||||||||||||
(Dollars in millions) | Amount | % of Total | Amount | % of Total | ||||||||||||||||||||||
Auto: | ||||||||||||||||||||||||||
Texas | $ | 8,196 | 11.9 | % | $ | 7,675 | 12.2 | % | ||||||||||||||||||
California | 7,507 | 10.9 | 6,918 | 11.0 | ||||||||||||||||||||||
Florida | 5,474 | 8.0 | 5,013 | 7.9 | ||||||||||||||||||||||
Georgia | 2,976 | 4.3 | 2,757 | 4.4 | ||||||||||||||||||||||
Ohio | 2,791 | 4.1 | 2,652 | 4.2 | ||||||||||||||||||||||
Pennsylvania | 2,549 | 3.7 | 2,334 | 3.7 | ||||||||||||||||||||||
Illinois | 2,415 | 3.5 | 2,239 | 3.6 | ||||||||||||||||||||||
North Carolina | 2,265 | 3.3 | 2,060 | 3.3 | ||||||||||||||||||||||
Other | 31,221 | 45.5 | 28,714 | 45.4 | ||||||||||||||||||||||
Total auto | 65,394 | 95.2 | 60,362 | 95.7 | ||||||||||||||||||||||
Retail banking: | ||||||||||||||||||||||||||
New York | 1,125 | 1.7 | 793 | 1.3 | ||||||||||||||||||||||
Louisiana | 679 | 1.0 | 708 | 1.1 | ||||||||||||||||||||||
Texas | 619 | 0.9 | 595 | 1.0 | ||||||||||||||||||||||
Maryland | 234 | 0.3 | 155 | 0.2 | ||||||||||||||||||||||
New Jersey | 229 | 0.3 | 194 | 0.3 | ||||||||||||||||||||||
Virginia | 189 | 0.3 | 125 | 0.2 | ||||||||||||||||||||||
Other | 219 | 0.3 | 133 | 0.2 | ||||||||||||||||||||||
Total retail banking | 3,294 | 4.8 | 2,703 | 4.3 | ||||||||||||||||||||||
Total consumer banking | $ | 68,688 | 100.0 | % | $ | 63,065 | 100.0 | % |
September 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Commercial and Multifamily Real Estate | % of Total | Commercial and Industrial | % of Total | Total Commercial Banking | % of Total | ||||||||||||||||||||||||||||||||||||||||||||
Geographic concentration:(1) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Northeast | $ | 17,761 | 56.9 | % | $ | 8,540 | 19.1 | % | $ | 26,301 | 34.7 | % | ||||||||||||||||||||||||||||||||||||||
Mid-Atlantic | 3,424 | 11.0 | 6,311 | 14.1 | 9,735 | 12.8 | ||||||||||||||||||||||||||||||||||||||||||||
South | 3,524 | 11.3 | 15,535 | 34.8 | 19,059 | 25.1 | ||||||||||||||||||||||||||||||||||||||||||||
Other | 6,488 | 20.8 | 14,311 | 32.0 | 20,799 | 27.4 | ||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 31,197 | 100.0 | % | $ | 44,697 | 100.0 | % | $ | 75,894 | 100.0 | % |
44 | Capital One Financial Corporation (COF) |
December 31, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Commercial and Multifamily Real Estate | % of Total | Commercial and Industrial | % of Total | Total Commercial Banking | % of Total | ||||||||||||||||||||||||||||||||||||||||||||
Geographic concentration:(1) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Northeast | $ | 17,139 | 56.7 | % | $ | 7,899 | 17.8 | % | $ | 25,038 | 33.6 | % | ||||||||||||||||||||||||||||||||||||||
Mid-Atlantic | 3,024 | 10.0 | 5,927 | 13.4 | 8,951 | 12.0 | ||||||||||||||||||||||||||||||||||||||||||||
South | 4,087 | 13.5 | 16,403 | 37.1 | 20,490 | 27.5 | ||||||||||||||||||||||||||||||||||||||||||||
Other | 5,995 | 19.8 | 14,034 | 31.7 | 20,029 | 26.9 | ||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 30,245 | 100.0 | % | $ | 44,263 | 100.0 | % | $ | 74,508 | 100.0 | % |
(Percentage of portfolio) | September 30, 2020 | December 31, 2019 | ||||||||||||
Real estate | 39 | % | 39 | % | ||||||||||
Finance | 16 | 16 | ||||||||||||
Healthcare | 11 | 12 | ||||||||||||
Business services | 6 | 6 | ||||||||||||
Educational services | 5 | 4 | ||||||||||||
Oil and gas | 4 | 5 | ||||||||||||
Public administration | 4 | 4 | ||||||||||||
Retail trade | 3 | 4 | ||||||||||||
Construction and land | 3 | 2 | ||||||||||||
Other | 9 | 8 | ||||||||||||
Total | 100 | % | 100 | % |
(Percentage of portfolio) | September 30, 2019 | December 31, 2018 | ||||
Real estate | 38 | % | 40 | % | ||
Finance | 16 | 16 | ||||
Healthcare | 12 | 12 | ||||
Business services | 6 | 5 | ||||
Oil and gas | 5 | 5 | ||||
Public administration | 4 | 4 | ||||
Educational services | 4 | 4 | ||||
Retail trade | 3 | 3 | ||||
Construction and land | 3 | 2 | ||||
Other | 9 | 9 | ||||
Total | 100 | % | 100 | % |
45 | Capital One Financial Corporation (COF) |
(Percentage of portfolio) | September 30, 2020 | December 31, 2019 | ||||||||||||||||||
Domestic credit card—Refreshed FICO scores:(1) | ||||||||||||||||||||
Greater than 660 | 69 | % | 67 | % | ||||||||||||||||
660 or below | 31 | 33 | ||||||||||||||||||
Total | 100 | % | 100 | % | ||||||||||||||||
Auto—At origination FICO scores:(2) | ||||||||||||||||||||
Greater than 660 | 46 | % | 48 | % | ||||||||||||||||
621 - 660 | 20 | 20 | ||||||||||||||||||
620 or below | 34 | 32 | ||||||||||||||||||
Total | 100 | % | 100 | % |
(Percentage of portfolio) | September 30, 2019 | December 31, 2018 | ||||
Domestic credit card—Refreshed FICO scores:(1) | ||||||
Greater than 660 | 68 | % | 67 | % | ||
660 or below | 32 | 33 | ||||
Total | 100 | % | 100 | % | ||
Auto—At origination FICO scores:(2) | ||||||
Greater than 660 | 48 | % | 50 | % | ||
621 - 660 | 20 | 19 | ||||
620 or below | 32 | 31 | ||||
Total | 100 | % | 100 | % |
(2)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. We present information in the section below on the credit performance of our loan portfolio, including the key metrics we use in tracking changes in the credit quality of our loan portfolio. See “Note 3—Loans” for additional credit quality information and see “Note 1—Summary of Significant Accounting Policies” for information on our accounting policies for delinquent and nonperforming loans, charge-offs and troubled debt restructurings (“TDRs”) for each of our loan categories. |
Capital One Financial Corporation (COF) |
September 30, 2020 | December 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||
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 | $ | 2,108 | 2.21 | % | $ | 2,108 | 2.21 | % | $ | 4,656 | 3.93 | % | $ | 4,656 | 3.93 | % | ||||||||||||||||||||||||||||||||||
International card businesses | 173 | 2.15 | 185 | 2.29 | 335 | 3.47 | 353 | 3.66 | ||||||||||||||||||||||||||||||||||||||||||
Total credit card | 2,281 | 2.20 | 2,293 | 2.21 | 4,991 | 3.89 | 5,009 | 3.91 | ||||||||||||||||||||||||||||||||||||||||||
Consumer Banking: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Auto | 2,461 | 3.76 | 2,638 | 4.03 | 4,154 | 6.88 | 4,584 | 7.59 | ||||||||||||||||||||||||||||||||||||||||||
Retail banking | 27 | 0.83 | 44 | 1.33 | 28 | 1.02 | 43 | 1.59 | ||||||||||||||||||||||||||||||||||||||||||
Total consumer banking | 2,488 | 3.62 | 2,682 | 3.90 | 4,182 | 6.63 | 4,627 | 7.34 | ||||||||||||||||||||||||||||||||||||||||||
Commercial Banking: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial and multifamily real estate | 32 | 0.10 | 179 | 0.57 | 63 | 0.21 | 67 | 0.22 | ||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | 80 | 0.18 | 359 | 0.80 | 101 | 0.23 | 244 | 0.55 | ||||||||||||||||||||||||||||||||||||||||||
Total commercial banking | 112 | 0.15 | 538 | 0.71 | 164 | 0.22 | 311 | 0.42 | ||||||||||||||||||||||||||||||||||||||||||
Total | $ | 4,881 | 1.97 | $ | 5,513 | 2.22 | $ | 9,337 | 3.51 | $ | 9,947 | 3.74 |
September 30, 2019 | December 31, 2018 | |||||||||||||||||||||||||||
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 | $ | 3,880 | 3.71 | % | $ | 3,880 | 3.71 | % | $ | 4,335 | 4.04 | % | $ | 4,335 | 4.04 | % | ||||||||||||
International card businesses | 318 | 3.52 | 334 | 3.71 | 317 | 3.52 | 333 | 3.70 | ||||||||||||||||||||
Total credit card | 4,198 | 3.69 | 4,214 | 3.71 | 4,652 | 4.00 | 4,668 | 4.01 | ||||||||||||||||||||
Consumer Banking: | ||||||||||||||||||||||||||||
Auto | 3,834 | 6.47 | 4,207 | 7.10 | 3,918 | 6.95 | 4,309 | 7.65 | ||||||||||||||||||||
Retail banking | 27 | 1.01 | 45 | 1.63 | 29 | 1.01 | 51 | 1.77 | ||||||||||||||||||||
Total consumer banking | 3,861 | 6.23 | 4,252 | 6.86 | 3,947 | 6.67 | 4,360 | 7.36 | ||||||||||||||||||||
Commercial Banking: | ||||||||||||||||||||||||||||
Commercial and multifamily real estate | 57 | 0.19 | 58 | 0.19 | 119 | 0.41 | 140 | 0.49 | ||||||||||||||||||||
Commercial and industrial | 71 | 0.16 | 236 | 0.54 | 176 | 0.43 | 279 | 0.68 | ||||||||||||||||||||
Total commercial lending | 128 | 0.17 | 294 | 0.40 | 295 | 0.42 | 419 | 0.60 | ||||||||||||||||||||
Small-ticket commercial real estate | — | — | — | — | 1 | 0.39 | 7 | 1.84 | ||||||||||||||||||||
Total commercial banking | 128 | 0.17 | 294 | 0.40 | 296 | 0.42 | 426 | 0.61 | ||||||||||||||||||||
Total | $ | 8,187 | 3.28 | $ | 8,760 | 3.51 | $ | 8,895 | 3.62 | $ | 9,454 | 3.84 |
September 30, 2019 | December 31, 2018 | September 30, 2020 | December 31, 2019 | |||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Amount | Rate(1) | Amount | Rate(1) | (Dollars in millions) | Amount | Rate(1) | Amount | Rate(1) | |||||||||||||||||||||||||||||||
Delinquency status: | Delinquency status: | |||||||||||||||||||||||||||||||||||||||
30 – 59 days | $ | 4,009 | 1.60 | % | $ | 4,282 | 1.73 | % | 30 – 59 days | $ | 2,675 | 1.07 | % | $ | 4,444 | 1.67 | % | |||||||||||||||||||||||
60 – 89 days | 2,264 | 0.91 | 2,430 | 0.99 | 60 – 89 days | 1,231 | 0.50 | 2,537 | 0.95 | |||||||||||||||||||||||||||||||
> 90 days | 2,487 | 1.00 | 2,742 | 1.12 | > 90 days | 1,607 | 0.65 | 2,966 | 1.12 | |||||||||||||||||||||||||||||||
Total | $ | 8,760 | 3.51 | % | $ | 9,454 | 3.84 | % | Total | $ | 5,513 | 2.22 | % | $ | 9,947 | 3.74 | % | |||||||||||||||||||||||
Geographic region: | Geographic region: | |||||||||||||||||||||||||||||||||||||||
Domestic | $ | 8,426 | 3.38 | % | $ | 9,121 | 3.70 | % | Domestic | $ | 5,328 | 2.15 | % | $ | 9,594 | 3.61 | % | |||||||||||||||||||||||
International | 334 | 0.13 | 333 | 0.14 | International | 185 | 0.07 | 353 | 0.13 | |||||||||||||||||||||||||||||||
Total | $ | 8,760 | 3.51 | % | $ | 9,454 | 3.84 | % | Total | $ | 5,513 | 2.22 | % | $ | 9,947 | 3.74 | % |
Capital One Financial Corporation (COF) |
September 30, 2019 | December 31, 2018 | September 30, 2020 | December 31, 2019 | |||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Amount | Rate(1) | Amount | Rate(1) | (Dollars in millions) | Amount | Rate(1) | Amount | Rate(1) | |||||||||||||||||||||||||||||||
Loan category: | Loan category: | |||||||||||||||||||||||||||||||||||||||
Credit card | $ | 1,992 | 1.75 | % | $ | 2,233 | 1.92 | % | Credit card | $ | 1,083 | 1.04 | % | $ | 2,407 | 1.88 | % | |||||||||||||||||||||||
Commercial banking | 31 | 0.04 | — | — | ||||||||||||||||||||||||||||||||||||
Consumer banking | Consumer banking | 1 | — | — | — | |||||||||||||||||||||||||||||||||||
Total | $ | 2,023 | 0.81 | $ | 2,233 | 0.91 | Total | $ | 1,084 | 0.44 | $ | 2,407 | 0.91 | |||||||||||||||||||||||||||
Geographic region: | Geographic region: | |||||||||||||||||||||||||||||||||||||||
Domestic | $ | 1,904 | 0.79 | % | $ | 2,111 | 0.89 | % | Domestic | $ | 1,021 | 0.42 | % | $ | 2,277 | 0.89 | % | |||||||||||||||||||||||
International | 119 | 1.32 | 122 | 1.35 | International | 63 | 0.78 | 130 | 1.34 | |||||||||||||||||||||||||||||||
Total | $ | 2,023 | 0.81 | $ | 2,233 | 0.91 | Total | $ | 1,084 | 0.44 | $ | 2,407 | 0.91 |
September 30, 2019 | December 31, 2018 | |||||||||||||
(Dollars in millions) | Amount | Rate | Amount | Rate | ||||||||||
Nonperforming loans held for investment:(2) | ||||||||||||||
Credit Card: | ||||||||||||||
International card businesses | $ | 23 | 0.25 | % | $ | 22 | 0.25 | % | ||||||
Total credit card | 23 | 0.02 | 22 | 0.02 | ||||||||||
Consumer Banking: | ||||||||||||||
Auto | 432 | 0.73 | 449 | 0.80 | ||||||||||
Retail banking | 25 | 0.91 | 30 | 1.04 | ||||||||||
Total consumer banking | 457 | 0.74 | 479 | 0.81 | ||||||||||
Commercial Banking: | ||||||||||||||
Commercial and multifamily real estate | 36 | 0.12 | 83 | 0.29 | ||||||||||
Commercial and industrial | 413 | 0.95 | 223 | 0.54 | ||||||||||
Total commercial lending | 449 | 0.61 | 306 | 0.44 | ||||||||||
Small-ticket commercial real estate | — | — | 6 | 1.80 | ||||||||||
Total commercial banking | 449 | 0.61 | 312 | 0.44 | ||||||||||
Total nonperforming loans held for investment(3) | $ | 929 | 0.37 | $ | 813 | 0.33 | ||||||||
Other nonperforming assets(4) | 61 | 0.03 | 59 | 0.02 | ||||||||||
Total nonperforming assets | $ | 990 | 0.40 | $ | 872 | 0.35 |
__________ (1)We recognized interest income for loans classified as nonperforming of $22 million and $37 million in the first nine months of 2020 and 2019, respectively. Interest income foregone related to nonperforming loans was $40 million and $50 million in the first nine months of 2020 and 2019, |
Capital One Financial Corporation (COF) |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Amount | Rate(1) | Amount | Rate(1) | Amount | Rate(1) | Amount | Rate(1) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Credit Card: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Domestic credit card | $ | 885 | 3.64 | % | $ | 1,065 | 4.12 | % | $ | 3,359 | 4.31 | % | $ | 3,599 | 4.67 | % | |||||||||||||||||||||||||||||||||||||||||||
International card businesses | 58 | 2.89 | 86 | 3.78 | 231 | 3.71 | 236 | 3.54 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Total credit card | 943 | 3.58 | 1,151 | 4.09 | 3,590 | 4.26 | 3,835 | 4.58 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer Banking: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Auto | 36 | 0.23 | 234 | 1.60 | 445 | 0.95 | 592 | 1.38 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Retail banking | 12 | 1.38 | 17 | 2.55 | 41 | 1.80 | 52 | 2.51 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Total consumer banking | 48 | 0.28 | 251 | 1.64 | 486 | 0.99 | 644 | 1.43 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial Banking: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial and multifamily real estate | 32 | 0.41 | 1 | 0.02 | 39 | 0.17 | 1 | 0.01 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | 50 | 0.45 | 59 | 0.55 | 254 | 0.73 | 89 | 0.28 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Total commercial banking | 82 | 0.43 | 60 | 0.33 | 293 | 0.50 | 90 | 0.17 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Total net charge-offs | $ | 1,073 | 1.72 | $ | 1,462 | 2.38 | $ | 4,369 | 2.28 | $ | 4,569 | 2.50 | |||||||||||||||||||||||||||||||||||||||||||||||
Average loans held for investment | $ | 249,511 | $ | 246,147 | $ | 255,232 | $ | 243,602 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||||||
(Dollars in millions) | Amount | Rate(1) | Amount | Rate(1) | Amount | Rate(1) | Amount | Rate(1) | ||||||||||||||||||||
Credit Card: | ||||||||||||||||||||||||||||
Domestic credit card | $ | 1,065 | 4.12 | % | $ | 1,094 | 4.35 | % | $ | 3,599 | 4.67 | % | $ | 3,581 | 4.78 | % | ||||||||||||
International card businesses | 86 | 3.78 | 43 | 1.92 | 236 | 3.54 | 193 | 2.85 | ||||||||||||||||||||
Total credit card | 1,151 | 4.09 | 1,137 | 4.15 | 3,835 | 4.58 | 3,774 | 4.62 | ||||||||||||||||||||
Consumer Banking: | ||||||||||||||||||||||||||||
Auto | 234 | 1.60 | 243 | 1.73 | 592 | 1.38 | 633 | 1.53 | ||||||||||||||||||||
Retail banking | 17 | 2.55 | 19 | 2.62 | 52 | 2.51 | 51 | 2.18 | ||||||||||||||||||||
Home loan | — | — | — | — | — | — | (1 | ) | (0.02 | ) | ||||||||||||||||||
Total consumer banking | 251 | 1.64 | 262 | 1.77 | 644 | 1.43 | 683 | 1.36 | ||||||||||||||||||||
Commercial Banking: | ||||||||||||||||||||||||||||
Commercial and multifamily real estate | 1 | 0.02 | 2 | 0.04 | 1 | 0.01 | 2 | 0.01 | ||||||||||||||||||||
Commercial and industrial | 59 | 0.55 | 25 | 0.25 | 89 | 0.28 | 37 | 0.13 | ||||||||||||||||||||
Total commercial banking | 60 | 0.33 | 27 | 0.16 | 90 | 0.17 | 39 | 0.08 | ||||||||||||||||||||
Other loans | — | — | (1 | ) | ** | — | — | 6 | ** | |||||||||||||||||||
Total net charge-offs | $ | 1,462 | 2.38 | $ | 1,425 | 2.41 | $ | 4,569 | 2.50 | $ | 4,502 | 2.48 | ||||||||||||||||
Average loans held for investment | $ | 246,147 | $ | 236,766 | $ | 243,602 | $ | 242,369 |
Net charge-off |
Capital One Financial Corporation (COF) |
50 | Capital One Financial Corporation (COF) |
September 30, 2019 | December 31, 2018 | |||||||||||||
(Dollars in millions) | Amount | % of Total Modifications | Amount | % of Total Modifications | ||||||||||
Credit card | $ | 815 | 51.1 | % | $ | 855 | 53.2 | % | ||||||
Consumer banking: | ||||||||||||||
Auto | 335 | 21.0 | 339 | 21.1 | ||||||||||
Retail banking | 28 | 1.7 | 33 | 2.1 | ||||||||||
Total consumer banking | 363 | 22.7 | 372 | 23.2 | ||||||||||
Commercial banking | 418 | 26.2 | 379 | 23.6 | ||||||||||
Total | $ | 1,596 | 100.0 | % | $ | 1,606 | 100.0 | % | ||||||
Status of TDRs: | ||||||||||||||
Performing | $ | 1,378 | 86.3 | % | $ | 1,433 | 89.2 | % | ||||||
Nonperforming | 218 | 13.7 | 173 | 10.8 | ||||||||||
Total | $ | 1,596 | 100.0 | % | $ | 1,606 | 100.0 | % |
September 30, 2020 | December 31, 2019 | |||||||||||||||||||||||||
(Dollars in millions) | Amount | % of Total Modifications | Amount | % of Total Modifications | ||||||||||||||||||||||
Credit Card: | ||||||||||||||||||||||||||
Domestic credit card | $ | 537 | 26.2 | % | $ | 630 | 38.1 | % | ||||||||||||||||||
International card businesses | 192 | 9.3 | 201 | 12.2 | ||||||||||||||||||||||
Total credit card | 729 | 35.5 | 831 | 50.3 | ||||||||||||||||||||||
Consumer banking: | ||||||||||||||||||||||||||
Auto | 546 | 26.6 | 346 | 20.9 | ||||||||||||||||||||||
Retail banking | 19 | 0.9 | 24 | 1.5 | ||||||||||||||||||||||
Total consumer banking | 565 | 27.5 | 370 | 22.4 | ||||||||||||||||||||||
Commercial banking | 761 | 37.0 | 451 | 27.3 | ||||||||||||||||||||||
Total | $ | 2,055 | 100.0 | % | $ | 1,652 | 100.0 | % | ||||||||||||||||||
Status of TDRs: | ||||||||||||||||||||||||||
Performing | $ | 1,662 | 80.9 | % | $ | 1,347 | 81.5 | % | ||||||||||||||||||
Nonperforming | 393 | 19.1 | 305 | 18.5 | ||||||||||||||||||||||
Total | $ | 2,055 | 100.0 | % | $ | 1,652 | 100.0 | % |
Capital One Financial Corporation (COF) |
Capital One Financial Corporation (COF) |
Three Months Ended September 30, 2019 | ||||||||||||||||||||||||||||||||
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 loan and lease losses: | ||||||||||||||||||||||||||||||||
Balance as of June 30, 2019 | $ | 4,925 | $ | 417 | $ | 5,342 | $ | 997 | $ | 58 | $ | 1,055 | $ | 736 | $ | 7,133 | ||||||||||||||||
Charge-offs | (1,403 | ) | (128 | ) | (1,531 | ) | (468 | ) | (21 | ) | (489 | ) | (66 | ) | (2,086 | ) | ||||||||||||||||
Recoveries(1) | 338 | 42 | 380 | 234 | 4 | 238 | 6 | 624 | ||||||||||||||||||||||||
Net charge-offs | (1,065 | ) | (86 | ) | (1,151 | ) | (234 | ) | (17 | ) | (251 | ) | (60 | ) | (1,462 | ) | ||||||||||||||||
Provision for loan and lease losses | 1,010 | 77 | 1,087 | 189 | 14 | 203 | 84 | 1,374 | ||||||||||||||||||||||||
Allowance build (release) for loan and lease losses | (55 | ) | (9 | ) | (64 | ) | (45 | ) | (3 | ) | (48 | ) | 24 | (88 | ) | |||||||||||||||||
Other changes(2) | — | (8 | ) | (8 | ) | — | — | — | — | (8 | ) | |||||||||||||||||||||
Balance as of September 30, 2019 | 4,870 | 400 | 5,270 | 952 | 55 | 1,007 | 760 | 7,037 | ||||||||||||||||||||||||
Reserve for unfunded lending commitments: | ||||||||||||||||||||||||||||||||
Balance as of June 30, 2019 | — | — | — | — | 4 | 4 | 140 | 144 | ||||||||||||||||||||||||
Provision for losses on unfunded lending commitments | — | — | — | — | — | — | 9 | 9 | ||||||||||||||||||||||||
Balance as of September 30, 2019 | — | — | — | — | 4 | 4 | 149 | 153 | ||||||||||||||||||||||||
Combined allowance and reserve as of September 30, 2019 | $ | 4,870 | $ | 400 | $ | 5,270 | $ | 952 | $ | 59 | $ | 1,011 | $ | 909 | $ | 7,190 |
Nine Months Ended September 30, 2019 | ||||||||||||||||||||||||||||||||
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 loan and lease losses: | ||||||||||||||||||||||||||||||||
Balance as of December 31, 2018 | $ | 5,144 | $ | 391 | $ | 5,535 | $ | 990 | $ | 58 | $ | 1,048 | $ | 637 | $ | 7,220 | ||||||||||||||||
Charge-offs | (4,635 | ) | (389 | ) | (5,024 | ) | (1,318 | ) | (65 | ) | (1,383 | ) | (109 | ) | (6,516 | ) | ||||||||||||||||
Recoveries(1) | 1,036 | 153 | 1,189 | 726 | 13 | 739 | 19 | 1,947 | ||||||||||||||||||||||||
Net charge-offs | (3,599 | ) | (236 | ) | (3,835 | ) | (592 | ) | (52 | ) | (644 | ) | (90 | ) | (4,569 | ) | ||||||||||||||||
Provision for loan and lease losses | 3,325 | 246 | 3,571 | 554 | 49 | 603 | 213 | 4,387 | ||||||||||||||||||||||||
Allowance build (release) for loan and lease losses | (274 | ) | 10 | (264 | ) | (38 | ) | (3 | ) | (41 | ) | 123 | (182 | ) | ||||||||||||||||||
Other changes(2) | — | (1 | ) | (1 | ) | — | — | — | — | (1 | ) | |||||||||||||||||||||
Balance as of September 30, 2019 | 4,870 | 400 | 5,270 | 952 | 55 | 1,007 | 760 | 7,037 | ||||||||||||||||||||||||
Reserve for unfunded lending commitments: | ||||||||||||||||||||||||||||||||
Balance as of December 31, 2018 | — | — | — | — | 4 | 4 | 118 | 122 | ||||||||||||||||||||||||
Provision for losses on unfunded lending commitments | — | — | — | — | — | — | 31 | 31 | ||||||||||||||||||||||||
Balance as of September 30, 2019 | — | — | — | — | 4 | 4 | 149 | 153 | ||||||||||||||||||||||||
Combined allowance and reserve as of September 30, 2019 | $ | 4,870 | $ | 400 | $ | 5,270 | $ | 952 | $ | 59 | $ | 1,011 | $ | 909 | $ | 7,190 |
Three Months Ended September 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 June 30, 2020 | $ | 11,569 | $ | 522 | $ | 12,091 | $ | 2,726 | $ | 112 | $ | 2,838 | $ | 1,903 | $ | 16,832 | ||||||||||||||||||||||||||||||||||||||||
Charge-offs | (1,198) | (98) | (1,296) | (280) | (15) | (295) | (88) | (1,679) | ||||||||||||||||||||||||||||||||||||||||||||||||
Recoveries(1) | 313 | 40 | 353 | 244 | 3 | 247 | 6 | 606 | ||||||||||||||||||||||||||||||||||||||||||||||||
Net charge-offs | (885) | (58) | (943) | (36) | (12) | (48) | (82) | (1,073) | ||||||||||||||||||||||||||||||||||||||||||||||||
Provision (benefit) for credit losses | 378 | 72 | 450 | (43) | — | (43) | (51) | 356 | ||||||||||||||||||||||||||||||||||||||||||||||||
Allowance build (release) for credit losses | (507) | 14 | (493) | (79) | (12) | (91) | (133) | (717) | ||||||||||||||||||||||||||||||||||||||||||||||||
Other changes(2) | — | 14 | 14 | — | — | — | — | 14 | ||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of September 30, 2020 | 11,062 | 550 | 11,612 | 2,647 | 100 | 2,747 | 1,770 | 16,129 | ||||||||||||||||||||||||||||||||||||||||||||||||
Reserve for unfunded lending commitments: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of June 30, 2020 | — | — | — | — | — | — | 218 | 218 | ||||||||||||||||||||||||||||||||||||||||||||||||
Benefit for losses on unfunded lending commitments | — | — | — | — | — | — | (23) | (23) | ||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of September 30, 2020 | — | — | — | — | — | — | 195 | 195 | ||||||||||||||||||||||||||||||||||||||||||||||||
Combined allowance and reserve as of September 30, 2020 | $ | 11,062 | $ | 550 | $ | 11,612 | $ | 2,647 | $ | 100 | $ | 2,747 | $ | 1,965 | $ | 16,324 |
Nine Months Ended September 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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, 2019 | $ | 4,997 | $ | 398 | $ | 5,395 | $ | 984 | $ | 54 | $ | 1,038 | $ | 775 | $ | 7,208 | ||||||||||||||||||||||||||||||||||||||||
Cumulative effects from adoption of the CECL standard | 2,237 | 4 | 2,241 | 477 | 25 | 502 | 102 | 2,845 | ||||||||||||||||||||||||||||||||||||||||||||||||
Finance charge and fee reserve reclassification(3) | 439 | 23 | 462 | — | — | — | — | 462 | ||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of January 1, 2020 | 7,673 | 425 | 8,098 | 1,461 | 79 | 1,540 | 877 | 10,515 | ||||||||||||||||||||||||||||||||||||||||||||||||
Charge-offs | (4,406) | (351) | (4,757) | (1,155) | (52) | (1,207) | (303) | (6,267) | ||||||||||||||||||||||||||||||||||||||||||||||||
Recoveries(1) | 1,047 | 120 | 1,167 | 710 | 11 | 721 | 10 | 1,898 | ||||||||||||||||||||||||||||||||||||||||||||||||
Net charge-offs | (3,359) | (231) | (3,590) | (445) | (41) | (486) | (293) | (4,369) | ||||||||||||||||||||||||||||||||||||||||||||||||
Provision for credit losses | 6,748 | 348 | 7,096 | 1,631 | 62 | 1,693 | 1,186 | 9,975 | ||||||||||||||||||||||||||||||||||||||||||||||||
Allowance build for credit losses | 3,389 | 117 | 3,506 | 1,186 | 21 | 1,207 | 893 | 5,606 | ||||||||||||||||||||||||||||||||||||||||||||||||
Other changes(2) | — | 8 | 8 | — | — | — | — | 8 | ||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of September 30, 2020 | 11,062 | 550 | 11,612 | 2,647 | 100 | 2,747 | 1,770 | 16,129 | ||||||||||||||||||||||||||||||||||||||||||||||||
Reserve for unfunded lending commitments: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2019 | — | — | — | — | 5 | 5 | 130 | 135 | ||||||||||||||||||||||||||||||||||||||||||||||||
Cumulative effects from adoption of the CECL standard | — | — | — | — | (5) | (5) | 42 | 37 | ||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of January 1, 2020 | — | — | — | — | — | — | 172 | 172 | ||||||||||||||||||||||||||||||||||||||||||||||||
Provision for losses on unfunded lending commitments | — | — | — | — | — | — | 23 | 23 | ||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of September 30, 2020 | — | — | — | — | — | — | 195 | 195 | ||||||||||||||||||||||||||||||||||||||||||||||||
Combined allowance and reserve as of September 30, 2020 | $ | 11,062 | $ | 550 | $ | 11,612 | $ | 2,647 | $ | 100 | $ | 2,747 | $ | 1,965 | $ | 16,324 |
Capital One Financial Corporation (COF) |
Three Months Ended September 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 loan and lease losses: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of June 30, 2019 | $ | 4,925 | $ | 417 | $ | 5,342 | $ | 997 | $ | 58 | $ | 1,055 | $ | 736 | $ | 7,133 | ||||||||||||||||||||||||||||||||||||||||
Charge-offs | (1,403) | (128) | (1,531) | (468) | (21) | (489) | (66) | (2,086) | ||||||||||||||||||||||||||||||||||||||||||||||||
Recoveries(1) | 338 | 42 | 380 | 234 | 4 | 238 | 6 | 624 | ||||||||||||||||||||||||||||||||||||||||||||||||
Net charge-offs | (1,065) | (86) | (1,151) | (234) | (17) | (251) | (60) | (1,462) | ||||||||||||||||||||||||||||||||||||||||||||||||
Provision for loan and lease losses | 1,010 | 77 | 1,087 | 189 | 14 | 203 | 84 | 1,374 | ||||||||||||||||||||||||||||||||||||||||||||||||
Allowance build (release) for loan and lease losses | (55) | (9) | (64) | (45) | (3) | (48) | 24 | (88) | ||||||||||||||||||||||||||||||||||||||||||||||||
Other changes(2) | — | (8) | (8) | — | — | — | — | (8) | ||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of September 30, 2019 | 4,870 | 400 | 5,270 | 952 | 55 | 1,007 | 760 | 7,037 | ||||||||||||||||||||||||||||||||||||||||||||||||
Reserve for unfunded lending commitments: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of June 30, 2019 | — | — | — | — | 4 | 4 | 140 | 144 | ||||||||||||||||||||||||||||||||||||||||||||||||
Provision for losses on unfunded lending commitments | — | — | — | — | — | — | 9 | 9 | ||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of September 30, 2019 | — | — | — | — | 4 | 4 | 149 | 153 | ||||||||||||||||||||||||||||||||||||||||||||||||
Combined allowance and reserve as of September 30, 2019 | $ | 4,870 | $ | 400 | $ | 5,270 | $ | 952 | $ | 59 | $ | 1,011 | $ | 909 | $ | 7,190 |
Three Months Ended September 30, 2018 | ||||||||||||||||||||||||||||||||||||
Credit Card | Consumer Banking | |||||||||||||||||||||||||||||||||||
(Dollars in millions) | Domestic Card | International Card Businesses | Total Credit Card | Auto | Retail Banking | Total Consumer Banking | Commercial Banking | Other | Total | |||||||||||||||||||||||||||
Allowance for loan and lease losses: | ||||||||||||||||||||||||||||||||||||
Balance as of June 30, 2018 | $ | 5,260 | $ | 364 | $ | 5,624 | $ | 1,060 | $ | 60 | $ | 1,120 | $ | 624 | — | $ | 7,368 | |||||||||||||||||||
Charge-offs | (1,403 | ) | (125 | ) | (1,528 | ) | (447 | ) | (22 | ) | (469 | ) | (48 | ) | $ | 1 | (2,044 | ) | ||||||||||||||||||
Recoveries(1) | 309 | 82 | 391 | 204 | 3 | 207 | 21 | — | 619 | |||||||||||||||||||||||||||
Net charge-offs | (1,094 | ) | (43 | ) | (1,137 | ) | (243 | ) | (19 | ) | (262 | ) | (27 | ) | 1 | (1,425 | ) | |||||||||||||||||||
Provision (benefit) for loan and lease losses | 950 | 81 | 1,031 | 168 | 17 | 185 | 60 | (1 | ) | 1,275 | ||||||||||||||||||||||||||
Allowance build (release) for loan and lease losses | (144 | ) | 38 | (106 | ) | (75 | ) | (2 | ) | (77 | ) | 33 | — | (150 | ) | |||||||||||||||||||||
Other changes(2) | — | 2 | 2 | — | — | — | (1 | ) | — | 1 | ||||||||||||||||||||||||||
Balance as of September 30, 2018 | 5,116 | 404 | 5,520 | 985 | 58 | 1,043 | 656 | — | 7,219 | |||||||||||||||||||||||||||
Reserve for unfunded lending commitments: | ||||||||||||||||||||||||||||||||||||
Balance as of June 30, 2018 | — | — | — | — | 5 | 5 | 112 | — | 117 | |||||||||||||||||||||||||||
Benefit for losses on unfunded lending commitments | — | — | — | — | (1 | ) | (1 | ) | (6 | ) | — | (7 | ) | |||||||||||||||||||||||
Balance as of September 30, 2018 | — | — | — | — | 4 | 4 | 106 | — | 110 | |||||||||||||||||||||||||||
Combined allowance and reserve as of September 30, 2018 | $ | 5,116 | $ | 404 | $ | 5,520 | $ | 985 | $ | 62 | $ | 1,047 | $ | 762 | $ | — | $ | 7,329 |
Nine Months Ended September 30, 2018 | ||||||||||||||||||||||||||||||||||||||||
Credit Card | Consumer Banking | |||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Domestic Card | International Card Businesses | Total Credit Card | Auto | Home Loan(3) | Retail Banking | Total Consumer Banking | Commercial Banking | Other(3) | Total | ||||||||||||||||||||||||||||||
Allowance for loan and lease losses: | ||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2017 | $ | 5,273 | $ | 375 | $ | 5,648 | $ | 1,119 | $ | 58 | $ | 65 | $ | 1,242 | $ | 611 | $ | 1 | $ | 7,502 | ||||||||||||||||||||
Charge-offs | (4,649 | ) | (383 | ) | (5,032 | ) | (1,250 | ) | — | (64 | ) | (1,314 | ) | (76 | ) | (7 | ) | (6,429 | ) | |||||||||||||||||||||
Recoveries(1) | 1,068 | 190 | 1,258 | 617 | 1 | 13 | 631 | 37 | 1 | 1,927 | ||||||||||||||||||||||||||||||
Net charge-offs | (3,581 | ) | (193 | ) | (3,774 | ) | (633 | ) | 1 | (51 | ) | (683 | ) | (39 | ) | (6 | ) | (4,502 | ) | |||||||||||||||||||||
Provision (benefit) for loan and lease losses | 3,424 | 234 | 3,658 | 499 | (6 | ) | 45 | 538 | 85 | (49 | ) | 4,232 | ||||||||||||||||||||||||||||
Allowance build (release) for loan and lease losses | (157 | ) | 41 | (116 | ) | (134 | ) | (5 | ) | (6 | ) | (145 | ) | 46 | (55 | ) | (270 | ) | ||||||||||||||||||||||
Other changes(2)(3) | — | (12 | ) | (12 | ) | — | (53 | ) | (1 | ) | (54 | ) | (1 | ) | 54 | (13 | ) | |||||||||||||||||||||||
Balance as of September 30, 2018 | 5,116 | 404 | 5,520 | 985 | — | 58 | 1,043 | 656 | — | 7,219 | ||||||||||||||||||||||||||||||
Reserve for unfunded lending commitments: | ||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2017 | — | — | — | — | — | 7 | 7 | 117 | — | 124 | ||||||||||||||||||||||||||||||
Benefit for losses on unfunded lending commitments | — | — | — | — | — | (3 | ) | (3 | ) | (11 | ) | — | (14 | ) | ||||||||||||||||||||||||||
Balance as of September 30, 2018 | — | — | — | — | — | 4 | 4 | 106 | — | 110 | ||||||||||||||||||||||||||||||
Combined allowance and reserve as of September 30, 2018 | $ | 5,116 | $ | 404 | $ | 5,520 | $ | 985 | $ | — | $ | 62 | $ | 1,047 | $ | 762 | $ | — | $ | 7,329 |
Nine Months Ended September 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 loan and lease losses: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2018 | $ | 5,144 | $ | 391 | $ | 5,535 | $ | 990 | $ | 58 | $ | 1,048 | $ | 637 | $ | 7,220 | ||||||||||||||||||||||||||||||||||||||||
Charge-offs | (4,635) | (389) | (5,024) | (1,318) | (65) | (1,383) | (109) | (6,516) | ||||||||||||||||||||||||||||||||||||||||||||||||
Recoveries(1) | 1,036 | 153 | 1,189 | 726 | 13 | 739 | 19 | 1,947 | ||||||||||||||||||||||||||||||||||||||||||||||||
Net charge-offs | (3,599) | (236) | (3,835) | (592) | (52) | (644) | (90) | (4,569) | ||||||||||||||||||||||||||||||||||||||||||||||||
Provision for loan and lease losses | 3,325 | 246 | 3,571 | 554 | 49 | 603 | 213 | 4,387 | ||||||||||||||||||||||||||||||||||||||||||||||||
Allowance build (release) for loan and lease losses | (274) | 10 | (264) | (38) | (3) | (41) | 123 | (182) | ||||||||||||||||||||||||||||||||||||||||||||||||
Other changes(2) | — | (1) | (1) | — | — | — | — | (1) | ||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of September 30, 2019 | 4,870 | 400 | 5,270 | 952 | 55 | 1,007 | 760 | 7,037 | ||||||||||||||||||||||||||||||||||||||||||||||||
Reserve for unfunded lending commitments: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2018 | — | — | — | — | 4 | 4 | 118 | 122 | ||||||||||||||||||||||||||||||||||||||||||||||||
Provision for losses on unfunded lending commitments | — | — | — | — | — | — | 31 | 31 | ||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of September 30, 2019 | — | — | — | — | 4 | 4 | 149 | 153 | ||||||||||||||||||||||||||||||||||||||||||||||||
Combined allowance and reserve as of September 30, 2019 | $ | 4,870 | $ | 400 | $ | 5,270 | $ | 952 | $ | 59 | $ | 1,011 | $ | 909 | $ | 7,190 |
(2)Represents foreign currency translation adjustments. (3)Concurrent with our adoption of the CECL standard in the first quarter of 2020, we reclassified our finance charge and fee reserve to our allowance for credit losses, with a corresponding increase to credit card loans held for investment. |
Capital One Financial Corporation (COF) |
September 30, 2020 | December 31, 2019 | |||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Allowance for Credit Losses | Amount(1) | Allowance Coverage Ratio | Allowance for Loan and Lease Losses | Amount(1) | Allowance Coverage Ratio | ||||||||||||||||||||||||||||||||
Credit Card | $ | 11,612 | $ | 2,293 | 506.38 | % | $ | 5,395 | $ | 5,009 | 107.70 | % | ||||||||||||||||||||||||||
Consumer Banking | 2,747 | 2,682 | 102.41 | 1,038 | 4,627 | 22.42 | ||||||||||||||||||||||||||||||||
Commercial Banking | 1,770 | 768 | 230.55 | 775 | 448 | 173.20 | ||||||||||||||||||||||||||||||||
Total | $ | 16,129 | 248,223 | 6.50 | $ | 7,208 | 265,809 | 2.71 |
September 30, 2019 | December 31, 2018 | |||||||||||||||||||||
(Dollars in millions) | Allowance for loan and lease losses | Amount(1) | Allowance coverage ratio | Allowance for loan and lease losses | Amount(1) | Allowance coverage ratio | ||||||||||||||||
Credit Card | $ | 5,270 | $ | 4,214 | 125.04 | % | $ | 5,535 | $ | 4,668 | 118.56 | % | ||||||||||
Consumer banking | 1,007 | 4,252 | 23.68 | 1,048 | 4,360 | 24.04 | ||||||||||||||||
Commercial banking | 760 | 449 | 169.14 | 637 | 312 | 204.25 | ||||||||||||||||
Total | $ | 7,037 | 249,355 | 2.82 | $ | 7,220 | 245,899 | 2.94 |
LIQUIDITY RISK PROFILE |
(Dollars in millions) | September 30, 2019 | December 31, 2018 | (Dollars in millions) | September 30, 2020 | December 31, 2019 | |||||||||||||||||
Cash and cash equivalents | $ | 17,120 | $ | 13,186 | Cash and cash equivalents | $ | 44,106 | $ | 13,407 | |||||||||||||
Investment securities portfolio: | ||||||||||||||||||||||
Investment securities available for sale, at fair value | 46,168 | 46,150 | Investment securities available for sale, at fair value | 99,853 | 79,213 | |||||||||||||||||
Investment securities held to maturity, at fair value | 35,264 | 36,619 | ||||||||||||||||||||
Total investment securities portfolio | 81,432 | 82,769 | ||||||||||||||||||||
FHLB borrowing capacity secured by loans | 10,619 | 10,003 | FHLB borrowing capacity secured by loans | 10,726 | 10,835 | |||||||||||||||||
Outstanding FHLB advances and letters of credit secured by loans | (229 | ) | (9,726 | ) | Outstanding FHLB advances and letters of credit secured by loans | (131) | (7,210) | |||||||||||||||
Investment securities encumbered for Public Funds and others | (5,377 | ) | (6,631 | ) | Investment securities encumbered for Public Funds and others | (6,123) | (5,688) | |||||||||||||||
Total liquidity reserves | $ | 103,565 | $ | 89,601 | Total liquidity reserves | $ | 148,431 | $ | 90,557 |
55 | Capital One Financial Corporation (COF) |
Capital One Financial Corporation (COF) |
Three Months Ended September 30, | Three Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2019 | 2018 | 2020 | 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Average Balance | Interest Expense | Average Deposits Interest Rate | Average Balance | Interest Expense | Average Deposits Interest Rate | (Dollars in millions) | Average Balance | Interest Expense | Average Deposits Interest Rate | Average Balance | Interest Expense | Average Deposits Interest Rate | |||||||||||||||||||||||||||||||||||||||||||||||
Interest-bearing checking accounts(1) | $ | 33,804 | $ | 75 | 0.87 | % | $ | 37,485 | $ | 61 | 0.64 | % | Interest-bearing checking accounts(1) | $ | 38,115 | $ | 25 | 0.26 | % | $ | 33,804 | $ | 75 | 0.87 | % | |||||||||||||||||||||||||||||||||||
Saving deposits(2) | 154,442 | 540 | 1.39 | 149,484 | 422 | 1.12 | Saving deposits(2) | 196,575 | 287 | 0.58 | 154,442 | 540 | 1.39 | |||||||||||||||||||||||||||||||||||||||||||||||
Time deposits less than $100,000 | 28,174 | 197 | 2.78 | 25,350 | 156 | 2.44 | Time deposits less than $100,000 | 26,626 | 112 | 1.67 | 28,174 | 197 | 2.78 | |||||||||||||||||||||||||||||||||||||||||||||||
Total interest-bearing core deposits | 216,420 | 812 | 1.49 | 212,319 | 639 | 1.19 | Total interest-bearing core deposits | 261,316 | 424 | 0.65 | 216,420 | 812 | 1.49 | |||||||||||||||||||||||||||||||||||||||||||||||
Time deposits of $100,000 or more | 15,643 | 89 | 2.25 | 8,846 | 42 | 1.90 | Time deposits of $100,000 or more | 15,023 | 52 | 1.40 | 15,643 | 89 | 2.25 | |||||||||||||||||||||||||||||||||||||||||||||||
Foreign deposits | — | — | — | 266 | — | 0.45 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total interest-bearing deposits | $ | 232,063 | $ | 901 | 1.55 | $ | 221,431 | $ | 681 | 1.23 | Total interest-bearing deposits | $ | 276,339 | $ | 476 | 0.69 | $ | 232,063 | $ | 901 | 1.55 |
Nine Months Ended September 30, | ||||||||||||||||||||||
2019 | 2018 | |||||||||||||||||||||
(Dollars in millions) | Average Balance | Interest Expense | Average Deposits Interest Rate | Average Balance | Interest Expense | Average Deposits Interest Rate | ||||||||||||||||
Interest-bearing checking accounts(1) | $ | 34,437 | $ | 223 | 0.86 | % | $ | 39,957 | $ | 179 | 0.60 | % | ||||||||||
Saving deposits(2) | 154,168 | 1,565 | 1.36 | 148,957 | 1,135 | 1.02 | ||||||||||||||||
Time deposits less than $100,000 | 26,898 | 555 | 2.76 | 25,416 | 436 | 2.29 | ||||||||||||||||
Total interest-bearing core deposits | 215,503 | 2,343 | 1.45 | 214,330 | 1,750 | 1.09 | ||||||||||||||||
Time deposits of $100,000 or more | 14,542 | 245 | 2.25 | 6,726 | 91 | 1.81 | ||||||||||||||||
Foreign deposits | — | — | — | 344 | 1 | 0.42 | ||||||||||||||||
Total interest-bearing deposits | $ | 230,045 | $ | 2,588 | 1.50 | $ | 221,400 | $ | 1,842 | 1.11 |
__________ |
Capital One Financial Corporation (COF) |
Issuances | Maturities/Redemptions | |||||||||||||||
Three Months Ended September 30, | Three Months Ended September 30, | |||||||||||||||
(Dollars in millions) | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Securitized debt obligations | $ | 4,050 | — | $ | 2,096 | $ | 998 | |||||||||
Senior and subordinated notes | 1,500 | — | 2,844 | 1,500 | ||||||||||||
FHLB advances | — | $ | 750 | — | 251 | |||||||||||
Total | $ | 5,550 | $ | 750 | $ | 4,940 | $ | 2,749 |
Issuances | Maturities/Redemptions | Issuances | Maturities/Redemptions | |||||||||||||||||||||||||||||||||||||||
Nine Months Ended September 30, | Nine Months Ended September 30, | Three Months Ended September 30, | Three Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | 2019 | 2018 | 2019 | 2018 | (Dollars in millions) | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||||||||||
Securitized debt obligations | $ | 6,673 | $ | 1,000 | $ | 6,222 | $ | 2,248 | Securitized debt obligations | $ | — | $ | 4,050 | $ | 2,159 | $ | 2,096 | |||||||||||||||||||||||||
Senior and subordinated notes | 4,161 | 5,250 | 5,344 | 4,100 | Senior and subordinated notes | — | 1,500 | — | 2,844 | |||||||||||||||||||||||||||||||||
FHLB advances | — | 750 | 251 | 8,858 | FHLB advances | — | — | — | — | |||||||||||||||||||||||||||||||||
Total | $ | 10,834 | $ | 7,000 | $ | 11,817 | $ | 15,206 | Total | $ | — | $ | 5,550 | $ | 2,159 | $ | 4,940 |
Issuances | Maturities/Redemptions | |||||||||||||||||||||||||
Nine Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
(Dollars in millions) | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||
Securitized debt obligations | $ | 1,250 | $ | 6,673 | $ | 5,752 | $ | 6,222 | ||||||||||||||||||
Senior and subordinated notes | 4,000 | 4,161 | 7,092 | 5,344 | ||||||||||||||||||||||
FHLB advances | — | — | — | 251 | ||||||||||||||||||||||
Total | $ | 5,250 | $ | 10,834 | $ | 12,844 | $ | 11,817 |
September 30, | December 31, | |||||||||||||||||||||||||||||||||||||
Capital One Financial Corporation | COBNA | CONA | Capital One Financial Corporation | COBNA | CONA | |||||||||||||||||||||||||||||||||
Moody’s | Baa1 | Baa1 | Baa1 | Baa1 | Baa1 | Baa1 | ||||||||||||||||||||||||||||||||
S&P | BBB | BBB+ | BBB+ | BBB | BBB+ | BBB+ | ||||||||||||||||||||||||||||||||
Fitch | A- | A- | A- | A- | A- | A- |
MARKET RISK PROFILE |
58 | Capital One Financial Corporation (COF) |
59 | Capital One Financial Corporation (COF) |
September 30, 2019 | December 31, 2018 | September 30, 2020 | December 31, 2019 | |||||||||||||||||
Estimated impact on projected baseline net interest income: | Estimated impact on projected baseline net interest income: | |||||||||||||||||||
+200 basis points | 0.9 | % | (0.8 | )% | +200 basis points | 7.3 | % | 1.8 | % | |||||||||||
+100 basis points | 0.8 | (0.2 | ) | +100 basis points | 5.3 | 1.3 | ||||||||||||||
+50 basis points | 0.6 | 0.0 | +50 basis points | 2.7 | 1.1 | |||||||||||||||
–50 basis points | (0.9 | ) | (0.3 | ) | –50 basis points | (0.7) | (0.5) | |||||||||||||
–100 basis points | (2.0 | ) | (1.0 | ) | ||||||||||||||||
–150 basis points | N/A | (2.1 | ) | |||||||||||||||||
–200 basis points | N/A | (3.7 | ) | |||||||||||||||||
Estimated impact on economic value of equity: | Estimated impact on economic value of equity: | |||||||||||||||||||
+200 basis points | 0.4 | (7.1 | ) | +200 basis points | 10.8 | (3.6) | ||||||||||||||
+100 basis points | 2.0 | (2.9 | ) | +100 basis points | 10.1 | 0.5 | ||||||||||||||
+50 basis points | 1.7 | (1.2 | ) | +50 basis points | 6.3 | 0.8 | ||||||||||||||
–50 basis points | (3.5 | ) | 0.2 | –50 basis points | (11.6) | (2.4) | ||||||||||||||
–100 basis points | (8.9 | ) | (0.8 | ) | ||||||||||||||||
–150 basis points | N/A | (3.5 | ) | |||||||||||||||||
–200 basis points | N/A | (8.0 | ) |
60 | Capital One Financial Corporation (COF) |
61 | Capital One Financial Corporation (COF) |
SUPERVISION AND REGULATION |
62 | Capital One Financial Corporation (COF) |
FORWARD-LOOKING STATEMENTS |
63 | Capital One Financial Corporation (COF) |
•the potential impact to our business, operations and reputation from, and expenses and uncertainties associated with, the Cybersecurity Incident we announced on July 29, 2019 and associated legal proceedings and other inquiries or investigations, as discussed in “MD&A—Introduction—Cybersecurity Incident” and “Note 13—Commitments, Contingencies, Guarantees and Others”; • |
64 | Capital One Financial Corporation (COF) |
Capital One Financial Corporation (COF) |
SUPPLEMENTAL TABLE |
(Dollars in millions, except as noted) | September 30, 2020 | December 31, 2019 | ||||||||||||||||||||||||||||||
Tangible Common Equity (Period-End): | ||||||||||||||||||||||||||||||||
Stockholders’ equity | $ | 58,424 | $ | 58,011 | ||||||||||||||||||||||||||||
Goodwill and intangible assets(1) | (14,825) | (14,932) | ||||||||||||||||||||||||||||||
Noncumulative perpetual preferred stock | (5,330) | (4,853) | ||||||||||||||||||||||||||||||
Tangible common equity | $ | 38,269 | $ | 38,226 | ||||||||||||||||||||||||||||
Tangible Common Equity (Quarterly Average): | ||||||||||||||||||||||||||||||||
Stockholders’ equity | $ | 57,223 | $ | 58,148 | ||||||||||||||||||||||||||||
Goodwill and intangible assets(1) | (14,867) | (14,967) | ||||||||||||||||||||||||||||||
Noncumulative perpetual preferred stock | (5,228) | (5,506) | ||||||||||||||||||||||||||||||
Tangible common equity | $ | 37,128 | $ | 37,675 | ||||||||||||||||||||||||||||
Tangible Assets (Period-End): | ||||||||||||||||||||||||||||||||
Total assets | $ | 421,883 | $ | 390,365 | ||||||||||||||||||||||||||||
Goodwill and intangible assets(1) | (14,825) | (14,932) | ||||||||||||||||||||||||||||||
Tangible assets | $ | 407,058 | $ | 375,433 | ||||||||||||||||||||||||||||
Tangible Assets (Quarterly Average): | ||||||||||||||||||||||||||||||||
Total assets | $ | 422,854 | $ | 383,162 | ||||||||||||||||||||||||||||
Goodwill and intangible assets(1) | (14,867) | (14,967) | ||||||||||||||||||||||||||||||
Tangible assets | $ | 407,987 | $ | 368,195 | ||||||||||||||||||||||||||||
Non-GAAP Ratio: | ||||||||||||||||||||||||||||||||
Tangible common equity(2) | 9.4 | % | 10.2 | % |
(Dollars in millions, except as noted) | September 30, 2019 | December 31, 2018 | ||||||
Tangible Common Equity (Period-End) | ||||||||
Stockholders’ equity | $ | 58,235 | $ | 51,668 | ||||
Goodwill and intangible assets(1) | (14,940 | ) | (14,941 | ) | ||||
Noncumulative perpetual preferred stock | (5,823 | ) | (4,360 | ) | ||||
Tangible common equity | $ | 37,472 | $ | 32,367 | ||||
Tangible Common Equity (Quarterly Average) | ||||||||
Stockholders’ equity | $ | 57,245 | $ | 51,114 | ||||
Goodwill and intangible assets(1) | (14,908 | ) | (14,953 | ) | ||||
Noncumulative perpetual preferred stock | (4,678 | ) | (4,360 | ) | ||||
Tangible common equity | $ | 37,659 | $ | 31,801 | ||||
Tangible Assets (Period-End) | ||||||||
Total assets | $ | 378,810 | $ | 372,538 | ||||
Goodwill and intangible assets(1) | (14,940 | ) | (14,941 | ) | ||||
Tangible assets | $ | 363,870 | $ | 357,597 | ||||
Tangible Assets (Quarterly Average) | ||||||||
Total assets | $ | 374,905 | $ | 365,243 | ||||
Goodwill and intangible assets(1) | (14,908 | ) | (14,953 | ) | ||||
Tangible assets | $ | 359,997 | $ | 350,290 | ||||
Non-GAAP Ratio | ||||||||
TCE(2) | 10.3 | % | 9.1 | % |
(2)Tangible common equity (“TCE”) ratio is a non-GAAP measure calculated based on TCE divided by tangible assets. |
66 | Capital One Financial Corporation (COF) |
Glossary and Acronyms |
67 | Capital One Financial Corporation (COF) |
68 | Capital One Financial Corporation (COF) |
69 | Capital One Financial Corporation (COF) |
Capital One Financial Corporation (COF) |
Acronyms |
71 | Capital One Financial Corporation (COF) |
Capital One Financial Corporation (COF) |
Page | |||||
Capital One Financial Corporation (COF) |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||
(Dollars in millions, except per share-related data) | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||||
Interest income: | ||||||||||||||||||||||||||||||||
Loans, including loans held for sale | $ | 5,758 | $ | 6,429 | $ | 18,120 | $ | 19,180 | ||||||||||||||||||||||||
Investment securities | 443 | 583 | 1,455 | 1,867 | ||||||||||||||||||||||||||||
Other | 14 | 63 | 67 | 196 | ||||||||||||||||||||||||||||
Total interest income | 6,215 | 7,075 | 19,642 | 21,243 | ||||||||||||||||||||||||||||
Interest expense: | ||||||||||||||||||||||||||||||||
Deposits | 476 | 901 | 1,818 | 2,588 | ||||||||||||||||||||||||||||
Securitized debt obligations | 43 | 123 | 198 | 405 | ||||||||||||||||||||||||||||
Senior and subordinated notes | 132 | 299 | 551 | 923 | ||||||||||||||||||||||||||||
Other borrowings | 9 | 15 | 35 | 53 | ||||||||||||||||||||||||||||
Total interest expense | 660 | 1,338 | 2,602 | 3,969 | ||||||||||||||||||||||||||||
Net interest income | 5,555 | 5,737 | 17,040 | 17,274 | ||||||||||||||||||||||||||||
Provision for credit losses | 331 | 1,383 | 10,000 | 4,418 | ||||||||||||||||||||||||||||
Net interest income after provision for credit losses | 5,224 | 4,354 | 7,040 | 12,856 | ||||||||||||||||||||||||||||
Non-interest income: | ||||||||||||||||||||||||||||||||
Interchange fees, net | 775 | 790 | 2,199 | 2,368 | ||||||||||||||||||||||||||||
Service charges and other customer-related fees | 320 | 283 | 905 | 988 | ||||||||||||||||||||||||||||
Net securities gains | 25 | 5 | 25 | 44 | ||||||||||||||||||||||||||||
Other | 706 | 144 | 1,017 | 492 | ||||||||||||||||||||||||||||
Total non-interest income | 1,826 | 1,222 | 4,146 | 3,892 | ||||||||||||||||||||||||||||
Non-interest expense: | ||||||||||||||||||||||||||||||||
Salaries and associate benefits | 1,719 | 1,605 | 5,050 | 4,736 | ||||||||||||||||||||||||||||
Occupancy and equipment | 506 | 519 | 1,546 | 1,533 | ||||||||||||||||||||||||||||
Marketing | 283 | 501 | 1,047 | 1,564 | ||||||||||||||||||||||||||||
Professional services | 327 | 314 | 918 | 919 | ||||||||||||||||||||||||||||
Communications and data processing | 310 | 312 | 920 | 944 | ||||||||||||||||||||||||||||
Amortization of intangibles | 14 | 25 | 52 | 84 | ||||||||||||||||||||||||||||
Other | 389 | 596 | 1,514 | 1,542 | ||||||||||||||||||||||||||||
Total non-interest expense | 3,548 | 3,872 | 11,047 | 11,322 | ||||||||||||||||||||||||||||
Income from continuing operations before income taxes | 3,502 | 1,704 | 139 | 5,426 | ||||||||||||||||||||||||||||
Income tax provision (benefit) | 1,096 | 375 | (10) | 1,071 | ||||||||||||||||||||||||||||
Income from continuing operations, net of tax | 2,406 | 1,329 | 149 | 4,355 | ||||||||||||||||||||||||||||
Income (loss) from discontinued operations, net of tax | 0 | 4 | (1) | 15 | ||||||||||||||||||||||||||||
Net income | 2,406 | 1,333 | 148 | 4,370 | ||||||||||||||||||||||||||||
Dividends and undistributed earnings allocated to participating securities | (20) | (10) | (5) | (34) | ||||||||||||||||||||||||||||
Preferred stock dividends | (67) | (53) | (212) | (185) | ||||||||||||||||||||||||||||
Issuance cost for redeemed preferred stock | 0 | 0 | (22) | 0 | ||||||||||||||||||||||||||||
Net income (loss) available to common stockholders | $ | 2,319 | $ | 1,270 | $ | (91) | $ | 4,151 | ||||||||||||||||||||||||
Basic earnings per common share: | ||||||||||||||||||||||||||||||||
Net income (loss) from continuing operations | $ | 5.07 | $ | 2.70 | $ | (0.20) | $ | 8.80 | ||||||||||||||||||||||||
Income from discontinued operations | 0.00 | 0.01 | 0.00 | 0.03 | ||||||||||||||||||||||||||||
Net income (loss) per basic common share | $ | 5.07 | $ | 2.71 | $ | (0.20) | $ | 8.83 | ||||||||||||||||||||||||
Diluted earnings per common share: | ||||||||||||||||||||||||||||||||
Net income (loss) from continuing operations | $ | 5.06 | $ | 2.68 | $ | (0.20) | $ | 8.76 | ||||||||||||||||||||||||
Income from discontinued operations | 0.00 | 0.01 | 0.00 | 0.03 | ||||||||||||||||||||||||||||
Net income (loss) per diluted common share | $ | 5.06 | $ | 2.69 | $ | (0.20) | $ | 8.79 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
(Dollars in millions, except per share-related data) | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Interest income: | ||||||||||||||||
Loans, including loans held for sale | $ | 6,429 | $ | 6,247 | $ | 19,180 | $ | 18,370 | ||||||||
Investment securities | 583 | 593 | 1,867 | 1,584 | ||||||||||||
Other | 63 | 55 | 196 | 174 | ||||||||||||
Total interest income | 7,075 | 6,895 | 21,243 | 20,128 | ||||||||||||
Interest expense: | ||||||||||||||||
Deposits | 901 | 681 | 2,588 | 1,842 | ||||||||||||
Securitized debt obligations | 123 | 127 | 405 | 358 | ||||||||||||
Senior and subordinated notes | 299 | 288 | 923 | 828 | ||||||||||||
Other borrowings | 15 | 13 | 53 | 45 | ||||||||||||
Total interest expense | 1,338 | 1,109 | 3,969 | 3,073 | ||||||||||||
Net interest income | 5,737 | 5,786 | 17,274 | 17,055 | ||||||||||||
Provision for credit losses | 1,383 | 1,268 | 4,418 | 4,218 | ||||||||||||
Net interest income after provision for credit losses | 4,354 | 4,518 | 12,856 | 12,837 | ||||||||||||
Non-interest income: | ||||||||||||||||
Interchange fees, net | 790 | 714 | 2,368 | 2,080 | ||||||||||||
Service charges and other customer-related fees | 283 | 410 | 988 | 1,233 | ||||||||||||
Net securities gains (losses) | 5 | (196 | ) | 44 | (189 | ) | ||||||||||
Other | 144 | 248 | 492 | 884 | ||||||||||||
Total non-interest income | 1,222 | 1,176 | 3,892 | 4,008 | ||||||||||||
Non-interest expense: | ||||||||||||||||
Salaries and associate benefits | 1,605 | 1,432 | 4,736 | 4,382 | ||||||||||||
Occupancy and equipment | 519 | 515 | 1,533 | 1,508 | ||||||||||||
Marketing | 501 | 504 | 1,564 | 1,343 | ||||||||||||
Professional services | 314 | 275 | 919 | 719 | ||||||||||||
Communications and data processing | 312 | 311 | 944 | 934 | ||||||||||||
Amortization of intangibles | 25 | 44 | 84 | 131 | ||||||||||||
Other | 596 | 692 | 1,542 | 1,753 | ||||||||||||
Total non-interest expense | 3,872 | 3,773 | 11,322 | 10,770 | ||||||||||||
Income from continuing operations before income taxes | 1,704 | 1,921 | 5,426 | 6,075 | ||||||||||||
Income tax provision | 375 | 420 | 1,071 | 1,314 | ||||||||||||
Income from continuing operations, net of tax | 1,329 | 1,501 | 4,355 | 4,761 | ||||||||||||
Income (loss) from discontinued operations, net of tax | 4 | 1 | 15 | (7 | ) | |||||||||||
Net income | 1,333 | 1,502 | 4,370 | 4,754 | ||||||||||||
Dividends and undistributed earnings allocated to participating securities | (10 | ) | (9 | ) | (34 | ) | (32 | ) | ||||||||
Preferred stock dividends | (53 | ) | (53 | ) | (185 | ) | (185 | ) | ||||||||
Net income available to common stockholders | $ | 1,270 | $ | 1,440 | $ | 4,151 | $ | 4,537 | ||||||||
Basic earnings per common share: | ||||||||||||||||
Net income from continuing operations | $ | 2.70 | $ | 3.01 | $ | 8.80 | $ | 9.40 | ||||||||
Income (loss) from discontinued operations | 0.01 | 0.00 | 0.03 | (0.01 | ) | |||||||||||
Net income per basic common share | $ | 2.71 | $ | 3.01 | $ | 8.83 | $ | 9.39 | ||||||||
Diluted earnings per common share: | ||||||||||||||||
Net income from continuing operations | $ | 2.68 | $ | 2.99 | $ | 8.76 | $ | 9.33 | ||||||||
Income (loss) from discontinued operations | 0.01 | 0.00 | 0.03 | (0.01 | ) | |||||||||||
Net income per diluted common share | $ | 2.69 | $ | 2.99 | $ | 8.79 | $ | 9.32 |
See Notes to Consolidated Financial Statements. | ||||||||
Capital One Financial Corporation (COF) |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||
(Dollars in millions) | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||||
Net income | $ | 2,406 | $ | 1,333 | $ | 148 | $ | 4,370 | ||||||||||||||||||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||||||||||||||||||||||
Net unrealized gains on securities available for sale | 1 | 100 | 1,447 | 664 | ||||||||||||||||||||||||||||
Net unrealized gains (losses) on hedging relationships | (175) | 189 | 1,256 | 1,003 | ||||||||||||||||||||||||||||
Foreign currency translation adjustments | 28 | (12) | (16) | 33 | ||||||||||||||||||||||||||||
Net changes in securities held to maturity | 0 | 8 | 0 | 20 | ||||||||||||||||||||||||||||
Other | (2) | (2) | (2) | (4) | ||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | (148) | 283 | 2,685 | 1,716 | ||||||||||||||||||||||||||||
Comprehensive income | $ | 2,258 | $ | 1,616 | $ | 2,833 | $ | 6,086 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
(Dollars in millions) | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Net income | $ | 1,333 | $ | 1,502 | $ | 4,370 | $ | 4,754 | ||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||||||
Net unrealized gains (losses) on securities available for sale | 100 | (23 | ) | 664 | (673 | ) | ||||||||||
Net changes in securities held to maturity | 8 | 8 | 20 | 441 | ||||||||||||
Net unrealized gains (losses) on hedging relationships | 189 | (81 | ) | 1,003 | (512 | ) | ||||||||||
Foreign currency translation adjustments | (12 | ) | 13 | 33 | (4 | ) | ||||||||||
Other | (2 | ) | (1 | ) | (4 | ) | (2 | ) | ||||||||
Other comprehensive income (loss), net of tax | 283 | (84 | ) | 1,716 | (750 | ) | ||||||||||
Comprehensive income | $ | 1,616 | $ | 1,418 | $ | 6,086 | $ | 4,004 |
See Notes to Consolidated Financial Statements. | ||||||||
Capital One Financial Corporation (COF) |
(Dollars in millions, except per share-related data) | September 30, 2020 | December 31, 2019 | ||||||||||||
Assets: | ||||||||||||||
Cash and cash equivalents: | ||||||||||||||
Cash and due from banks | $ | 4,267 | $ | 4,129 | ||||||||||
Interest-bearing deposits and other short-term investments | 39,839 | 9,278 | ||||||||||||
Total cash and cash equivalents | 44,106 | 13,407 | ||||||||||||
Restricted cash for securitization investors | 895 | 342 | ||||||||||||
Securities available for sale (amortized cost of $96.7 billion and allowance for credit losses of $3 million as of September 30, 2020) | 99,853 | 79,213 | ||||||||||||
Loans held for investment: | ||||||||||||||
Unsecuritized loans held for investment | 217,878 | 231,992 | ||||||||||||
Loans held in consolidated trusts | 30,345 | 33,817 | ||||||||||||
Total loans held for investment | 248,223 | 265,809 | ||||||||||||
Allowance for credit losses | (16,129) | (7,208) | ||||||||||||
Net loans held for investment | 232,094 | 258,601 | ||||||||||||
Loans held for sale ($1.3 billion and $251 million carried at fair value at September 30, 2020 and December 31, 2019, respectively) | 3,433 | 400 | ||||||||||||
Premises and equipment, net | 4,333 | 4,378 | ||||||||||||
Interest receivable | 1,551 | 1,758 | ||||||||||||
Goodwill | 14,648 | 14,653 | ||||||||||||
Other assets | 20,970 | 17,613 | ||||||||||||
Total assets | $ | 421,883 | $ | 390,365 | ||||||||||
Liabilities: | ||||||||||||||
Interest payable | $ | 332 | $ | 439 | ||||||||||
Deposits: | ||||||||||||||
Non-interest-bearing deposits | 29,633 | 23,488 | ||||||||||||
Interest-bearing deposits | 276,092 | 239,209 | ||||||||||||
Total deposits | 305,725 | 262,697 | ||||||||||||
Securitized debt obligations | 13,566 | 17,808 | ||||||||||||
Other debt: | ||||||||||||||
Federal funds purchased and securities loaned or sold under agreements to repurchase | 702 | 314 | ||||||||||||
Senior and subordinated notes | 28,448 | 30,472 | ||||||||||||
Other borrowings | 79 | 7,103 | ||||||||||||
Total other debt | 29,229 | 37,889 | ||||||||||||
Other liabilities | 14,607 | 13,521 | ||||||||||||
Total liabilities | 363,459 | 332,354 | ||||||||||||
Commitments, contingencies and guarantees (see Note 13) | ||||||||||||||
Stockholders’ equity: | ||||||||||||||
Preferred stock (par value $0.01 per share; 50,000,000 shares authorized; 5,475,000 and 4,975,000 shares issued and outstanding as of September 30, 2020 and December 31, 2019, respectively) | 0 | 0 | ||||||||||||
Common stock (par value $0.01 per share; 1,000,000,000 shares authorized; 678,318,329 and 672,969,391 shares issued as of September 30, 2020 and December 31, 2019, respectively; 457,397,091 and 456,562,399 shares outstanding as of September 30, 2020 and December 31, 2019, respectively) | 7 | 7 | ||||||||||||
Additional paid-in capital, net | 33,793 | 32,980 | ||||||||||||
Retained earnings | 37,653 | 40,340 | ||||||||||||
Accumulated other comprehensive income | 3,833 | 1,156 | ||||||||||||
Treasury stock, at cost (par value $0.01 per share; 220,921,238 and 216,406,992 shares as of September 30, 2020 and December 31, 2019, respectively) | (16,862) | (16,472) | ||||||||||||
Total stockholders’ equity | 58,424 | 58,011 | ||||||||||||
Total liabilities and stockholders’ equity | $ | 421,883 | $ | 390,365 |
(Dollars in millions, except per share-related data) | September 30, 2019 | December 31, 2018 | ||||||
Assets: | ||||||||
Cash and cash equivalents: | ||||||||
Cash and due from banks | $ | 4,452 | $ | 4,768 | ||||
Interest-bearing deposits and other short-term investments | 12,668 | 8,418 | ||||||
Total cash and cash equivalents | 17,120 | 13,186 | ||||||
Restricted cash for securitization investors | 417 | 303 | ||||||
Investment securities: | ||||||||
Securities available for sale | 46,168 | 46,150 | ||||||
Securities held to maturity | 33,894 | 36,771 | ||||||
Total investment securities | 80,062 | 82,921 | ||||||
Loans held for investment: | ||||||||
Unsecuritized loans held for investment | 215,892 | 211,702 | ||||||
Loans held in consolidated trusts | 33,463 | 34,197 | ||||||
Total loans held for investment | 249,355 | 245,899 | ||||||
Allowance for loan and lease losses | (7,037 | ) | (7,220 | ) | ||||
Net loans held for investment | 242,318 | 238,679 | ||||||
Loans held for sale, at lower of cost or fair value | 1,245 | 1,192 | ||||||
Premises and equipment, net | 4,311 | 4,191 | ||||||
Interest receivable | 1,627 | 1,614 | ||||||
Goodwill | 14,624 | 14,544 | ||||||
Other assets | 17,086 | 15,908 | ||||||
Total assets | $ | 378,810 | $ | 372,538 | ||||
Liabilities: | ||||||||
Interest payable | $ | 370 | $ | 458 | ||||
Deposits: | ||||||||
Non-interest-bearing deposits | 23,064 | 23,483 | ||||||
Interest-bearing deposits | 234,084 | 226,281 | ||||||
Total deposits | 257,148 | 249,764 | ||||||
Securitized debt obligations | 18,910 | 18,307 | ||||||
Other debt: | ||||||||
Federal funds purchased and securities loaned or sold under agreements to repurchase | 464 | 352 | ||||||
Senior and subordinated notes | 30,682 | 30,826 | ||||||
Other borrowings | 93 | 9,420 | ||||||
Total other debt | 31,239 | 40,598 | ||||||
Other liabilities | 12,908 | 11,743 | ||||||
Total liabilities | 320,575 | 320,870 | ||||||
Commitments, contingencies and guarantees (see Note 14) | ||||||||
Stockholders’ equity: | ||||||||
Preferred stock (par value $.01 per share; 50,000,000 shares authorized; 5,975,000 and 4,475,000 shares issued and outstanding as of September 30, 2019 and December 31, 2018, respectively) | 0 | 0 | ||||||
Common stock (par value $.01 per share; 1,000,000,000 shares authorized; 672,084,002 and 667,969,069 shares issued as of September 30, 2019 and December 31, 2018, respectively, 465,720,986 and 467,717,306 shares outstanding as of September 30, 2019 and December 31, 2018, respectively) | 7 | 7 | ||||||
Additional paid-in capital, net | 33,826 | 32,040 | ||||||
Retained earnings | 39,476 | 35,875 | ||||||
Accumulated other comprehensive income (loss) | 453 | (1,263 | ) | |||||
Treasury stock, at cost (par value $.01 per share; 206,363,016 and 200,251,763 shares as of September 30, 2019 and December 31, 2018, respectively) | (15,527 | ) | (14,991 | ) | ||||
Total stockholders’ equity | 58,235 | 51,668 | ||||||
Total liabilities and stockholders’ equity | $ | 378,810 | $ | 372,538 |
See Notes to Consolidated Financial Statements. | ||||||||
Capital One Financial Corporation (COF) |
(Dollars in millions) | 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, 2019 | 4,975,000 | $ | 0 | 672,969,391 | $ | 7 | $ | 32,980 | $ | 40,340 | $ | 1,156 | $ | (16,472) | $ | 58,011 | ||||||||||||||||||||||||||||||||||||||||
Cumulative effects from adoption of the CECL standard | (2,184) | (8) | (2,192) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income (loss) | (1,340) | 2,531 | 1,191 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends—common stock(1) | 23,213 | 0 | 2 | (187) | (185) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends—preferred stock | (55) | (55) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchases of treasury stock | (386) | (386) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuances of common stock and restricted stock, net of forfeitures | 2,618,628 | 0 | 63 | 63 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Exercises of stock options | 559,333 | 0 | 20 | 20 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuances of preferred stock | 1,250,000 | 0 | 1,209 | 1,209 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Redemptions of preferred stock | (875,000) | 0 | (853) | (22) | (875) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Compensation expense for restricted stock units and stock options | 29 | 29 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of March 31, 2020 | 5,350,000 | $ | 0 | 676,170,565 | $ | 7 | $ | 33,450 | $ | 36,552 | $ | 3,679 | $ | (16,858) | $ | 56,830 | ||||||||||||||||||||||||||||||||||||||||
Comprehensive income (loss) | (918) | 302 | (616) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends—common stock(1) | 6,521 | 0 | 0 | (183) | (183) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends—preferred stock | (90) | (90) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchases of treasury stock | (2) | (2) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuances of common stock and restricted stock, net of forfeitures | 1,041,311 | 0 | 58 | 58 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Exercises of stock options | 8,410 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensation expense for restricted stock units and stock options | 48 | 48 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of June 30, 2020 | 5,350,000 | $ | 0 | 677,226,807 | $ | 7 | $ | 33,556 | $ | 35,361 | $ | 3,981 | $ | (16,860) | $ | 56,045 | ||||||||||||||||||||||||||||||||||||||||
Comprehensive income (loss) | 2,406 | (148) | 2,258 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends—common stock(1) | 1,608 | 0 | 0 | (47) | (47) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends—preferred stock | (67) | (67) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchases of treasury stock | (2) | (2) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuances of common stock and restricted stock, net of forfeitures | 1,073,323 | 0 | 63 | 63 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Exercises of stock options | 16,591 | 0 | 1 | 1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuances of preferred stock | 125,000 | 0 | 121 | 121 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensation expense for restricted stock units and stock options | 52 | 52 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of September 30, 2020 | 5,475,000 | $ | 0 | 678,318,329 | $ | 7 | $ | 33,793 | $ | 37,653 | $ | 3,833 | $ | (16,862) | $ | 58,424 |
(Dollars in millions) | 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, 2018 | 4,475,000 | $ | 0 | 667,969,069 | $ | 7 | $ | 32,040 | $ | 35,875 | $ | (1,263 | ) | $ | (14,991 | ) | $ | 51,668 | ||||||||||||||||
Cumulative effects from adoption of new lease standard | (11 | ) | (11 | ) | ||||||||||||||||||||||||||||||
Comprehensive income | 1,412 | 603 | 2,015 | |||||||||||||||||||||||||||||||
Dividends—common stock(1) | 32,700 | 0 | 3 | (194 | ) | (191 | ) | |||||||||||||||||||||||||||
Dividends—preferred stock | (52 | ) | (52 | ) | ||||||||||||||||||||||||||||||
Purchases of treasury stock | (65 | ) | (65 | ) | ||||||||||||||||||||||||||||||
Issuances of common stock and restricted stock, net of forfeitures | 2,641,635 | 0 | 52 | 52 | ||||||||||||||||||||||||||||||
Exercises of stock options | 5,000 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||
Compensation expense for restricted stock units and stock options | 65 | 65 | ||||||||||||||||||||||||||||||||
Balance as of March 31, 2019 | 4,475,000 | $ | 0 | 670,648,404 | $ | 7 | $ | 32,160 | $ | 37,030 | $ | (660 | ) | $ | (15,056 | ) | $ | 53,481 | ||||||||||||||||
Comprehensive income | 1,625 | 830 | 2,455 | |||||||||||||||||||||||||||||||
Dividends—common stock(1) | 8,680 | 0 | 1 | (189 | ) | (188 | ) | |||||||||||||||||||||||||||
Dividends—preferred stock | (80 | ) | (80 | ) | ||||||||||||||||||||||||||||||
Purchases of treasury stock | (2 | ) | (2 | ) | ||||||||||||||||||||||||||||||
Issuances of common stock and restricted stock, net of forfeitures | 745,017 | 0 | 46 | 46 | ||||||||||||||||||||||||||||||
Exercises of stock options | 4,000 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||
Compensation expense for restricted stock units and stock options | 55 | 55 | ||||||||||||||||||||||||||||||||
Balance as of June 30, 2019 | 4,475,000 | $ | 0 | 671,406,101 | $ | 7 | $ | 32,262 | $ | 38,386 | $ | 170 | $ | (15,058 | ) | $ | 55,767 | |||||||||||||||||
Comprehensive income | 1,333 | 283 | 1,616 | |||||||||||||||||||||||||||||||
Dividends—common stock(1) | 4,646 | 0 | 0 | (190 | ) | (190 | ) | |||||||||||||||||||||||||||
Dividends—preferred stock | (53 | ) | (53 | ) | ||||||||||||||||||||||||||||||
Purchases of treasury stock | (469 | ) | (469 | ) | ||||||||||||||||||||||||||||||
Issuances of common stock and restricted stock, net of forfeitures | 673,255 | 0 | 55 | 55 | ||||||||||||||||||||||||||||||
Exercises of stock options | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||
Issuances of preferred stock | 1,500,000 | 0 | 1,463 | 1,463 | ||||||||||||||||||||||||||||||
Compensation expense for restricted stock units and stock options | 46 | 46 | ||||||||||||||||||||||||||||||||
Balance as of September 30, 2019 | 5,975,000 | $ | 0 | 672,084,002 | $ | 7 | $ | 33,826 | $ | 39,476 | $ | 453 | $ | (15,527 | ) | $ | 58,235 |
(Dollars in millions) | 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, 2017 | 4,475,000 | $ | 0 | 661,724,927 | $ | 7 | $ | 31,656 | $ | 30,700 | $ | (926 | ) | $ | (12,707 | ) | $ | 48,730 | ||||||||||||||||
Cumulative effects from adoption of new accounting standards | 201 | (201 | ) | 0 | ||||||||||||||||||||||||||||||
Comprehensive income (loss) | 1,346 | (472 | ) | 874 | ||||||||||||||||||||||||||||||
Dividends—common stock(1) | 22,467 | 0 | 2 | (199 | ) | (197 | ) | |||||||||||||||||||||||||||
Dividends—preferred stock | (52 | ) | (52 | ) | ||||||||||||||||||||||||||||||
Purchases of treasury stock | (273 | ) | (273 | ) | ||||||||||||||||||||||||||||||
Issuances of common stock and restricted stock, net of forfeitures | 2,452,786 | 0 | 49 | 49 | ||||||||||||||||||||||||||||||
Exercises of stock options and warrants | 675,871 | 0 | 14 | 14 | ||||||||||||||||||||||||||||||
Compensation expense for restricted stock awards, restricted stock units and stock options | 58 | 58 | ||||||||||||||||||||||||||||||||
Balance as of March 31, 2018 | 4,475,000 | $ | 0 | 664,876,051 | $ | 7 | $ | 31,779 | $ | 31,996 | $ | (1,599 | ) | $ | (12,980 | ) | $ | 49,203 | ||||||||||||||||
Comprehensive income (loss) | 1,906 | (194 | ) | 1,712 | ||||||||||||||||||||||||||||||
Dividends—common stock(1) | 4,371 | 0 | 0 | (196 | ) | (196 | ) | |||||||||||||||||||||||||||
Dividends—preferred stock | (80 | ) | (80 | ) | ||||||||||||||||||||||||||||||
Purchases of treasury stock | (802 | ) | (802 | ) | ||||||||||||||||||||||||||||||
Issuances of common stock and restricted stock, net of forfeitures | 571,514 | 0 | 41 | 41 | ||||||||||||||||||||||||||||||
Exercises of stock options and warrants | 403,835 | 0 | 6 | 6 | ||||||||||||||||||||||||||||||
Compensation expense for restricted stock awards, restricted stock units and stock options | 42 | 42 | ||||||||||||||||||||||||||||||||
Balance as of June 30, 2018 | 4,475,000 | $ | 0 | 665,855,771 | $ | 7 | $ | 31,868 | $ | 33,626 | $ | (1,793 | ) | $ | (13,782 | ) | $ | 49,926 | ||||||||||||||||
Comprehensive income (loss) | 1,502 | (84 | ) | 1,418 | ||||||||||||||||||||||||||||||
Dividends—common stock(1) | 4,196 | 0 | 1 | (192 | ) | (191 | ) | |||||||||||||||||||||||||||
Dividends—preferred stock | (53 | ) | (53 | ) | ||||||||||||||||||||||||||||||
Purchases of treasury stock | (571 | ) | (571 | ) | ||||||||||||||||||||||||||||||
Issuances of common stock and restricted stock, net of forfeitures | 544,466 | 0 | 47 | 47 | ||||||||||||||||||||||||||||||
Exercises of stock options and warrants | 504,262 | 0 | 18 | 18 | ||||||||||||||||||||||||||||||
Compensation expense for restricted stock awards, restricted stock units and stock options | 44 | 44 | ||||||||||||||||||||||||||||||||
Balance as of September 30, 2018 | 4,475,000 | $ | 0 | 666,908,695 | $ | 7 | $ | 31,978 | $ | 34,883 | $ | (1,877 | ) | $ | (14,353 | ) | $ | 50,638 |
Capital One Financial Corporation (COF) |
(Dollars in millions) | 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, 2018 | 4,475,000 | $ | 0 | 667,969,069 | $ | 7 | $ | 32,040 | $ | 35,875 | $ | (1,263) | $ | (14,991) | $ | 51,668 | ||||||||||||||||||||||||||||||||||||||||
Cumulative effects from adoption of new lease standard | (11) | (11) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income | 1,412 | 603 | 2,015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends—common stock(1) | 32,700 | 0 | 3 | (194) | (191) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends—preferred stock | (52) | (52) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchases of treasury stock | (65) | (65) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuances of common stock and restricted stock, net of forfeitures | 2,641,635 | 0 | 52 | 52 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Exercises of stock options | 5,000 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensation expense for restricted stock units and stock options | 65 | 65 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of March 31, 2019 | 4,475,000 | $ | 0 | 670,648,404 | $ | 7 | $ | 32,160 | $ | 37,030 | $ | (660) | $ | (15,056) | $ | 53,481 | ||||||||||||||||||||||||||||||||||||||||
Comprehensive income | 1,625 | 830 | 2,455 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends—common stock(1) | 8,680 | 0 | 1 | (189) | (188) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends—preferred stock | (80) | (80) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchases of treasury stock | (2) | (2) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuances of common stock and restricted stock, net of forfeitures | 745,017 | 0 | 46 | 46 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Exercises of stock options | 4,000 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensation expense for restricted stock units and stock options | 55 | 55 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of June 30, 2019 | 4,475,000 | $ | 0 | 671,406,101 | $ | 7 | $ | 32,262 | $ | 38,386 | $ | 170 | $ | (15,058) | $ | 55,767 | ||||||||||||||||||||||||||||||||||||||||
Comprehensive income | 1,333 | 283 | 1,616 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends—common stock(1) | 4,646 | 0 | 0 | (190) | (190) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends—preferred stock | (53) | (53) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchases of treasury stock | (469) | (469) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuances of common stock and restricted stock, net of forfeitures | 673,255 | 0 | 55 | 55 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Exercises of stock options | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuances of preferred stock | 1,500,000 | 0 | 1,463 | 1,463 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensation expense for restricted stock units and stock options | 46 | 46 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of September 30, 2019 | 5,975,000 | $ | 0 | 672,084,002 | $ | 7 | $ | 33,826 | $ | 39,476 | $ | 453 | $ | (15,527) | $ | 58,235 |
See Notes to Consolidated Financial Statements. | ||||||||
Capital One Financial Corporation (COF) |
Nine Months Ended September 30, | ||||||||||||||||||||
(Dollars in millions) | 2020 | 2019 | ||||||||||||||||||
Operating activities: | ||||||||||||||||||||
Income from continuing operations, net of tax | $ | 149 | $ | 4,355 | ||||||||||||||||
Income (loss) from discontinued operations, net of tax | (1) | 15 | ||||||||||||||||||
Net income | 148 | 4,370 | ||||||||||||||||||
Adjustments to reconcile net income (loss) to net cash from operating activities: | ||||||||||||||||||||
Provision for credit losses | 10,000 | 4,418 | ||||||||||||||||||
Depreciation and amortization, net | 2,701 | 2,434 | ||||||||||||||||||
Deferred tax benefit | (1,420) | (72) | ||||||||||||||||||
Net securities gains | (25) | (44) | ||||||||||||||||||
Gain on sales of loans | (15) | (53) | ||||||||||||||||||
Stock-based compensation expense | 128 | 175 | ||||||||||||||||||
Other (including unrealized gains from equity investments) | (477) | 0 | ||||||||||||||||||
Loans held for sale: | ||||||||||||||||||||
Originations and purchases | (6,739) | (8,064) | ||||||||||||||||||
Proceeds from sales and paydowns | 5,833 | 8,126 | ||||||||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||||||
Changes in interest receivable | 207 | (13) | ||||||||||||||||||
Changes in other assets | 1,052 | 1,852 | ||||||||||||||||||
Changes in interest payable | (107) | (88) | ||||||||||||||||||
Changes in other liabilities | 785 | (522) | ||||||||||||||||||
Net change from discontinued operations | 1 | 0 | ||||||||||||||||||
Net cash from operating activities | 12,072 | 12,519 | ||||||||||||||||||
Investing activities: | ||||||||||||||||||||
Securities available for sale: | ||||||||||||||||||||
Purchases | (35,189) | (8,919) | ||||||||||||||||||
Proceeds from paydowns and maturities | 15,593 | 6,099 | ||||||||||||||||||
Proceeds from sales | 812 | 4,226 | ||||||||||||||||||
Securities held to maturity: | ||||||||||||||||||||
Purchases | 0 | (396) | ||||||||||||||||||
Proceeds from paydowns and maturities | 0 | 3,209 | ||||||||||||||||||
Loans: | ||||||||||||||||||||
Net changes in loans held for investment | 9,083 | (10,555) | ||||||||||||||||||
Principal recoveries of loans previously charged off | 1,898 | 1,947 | ||||||||||||||||||
Net purchases of premises and equipment | (543) | (631) | ||||||||||||||||||
Net cash from acquisition activities | (7) | (85) | ||||||||||||||||||
Net cash from other investing activities | (564) | (781) | ||||||||||||||||||
Net cash from investing activities | (8,917) | (5,886) | ||||||||||||||||||
Nine Months Ended September 30, | ||||||||
(Dollars in millions) | 2019 | 2018 | ||||||
Operating activities: | ||||||||
Income from continuing operations, net of tax | $ | 4,355 | $ | 4,761 | ||||
Income (loss) from discontinued operations, net of tax | 15 | (7 | ) | |||||
Net income | 4,370 | 4,754 | ||||||
Adjustments to reconcile net income to net cash from operating activities: | ||||||||
Provision for credit losses | 4,418 | 4,218 | ||||||
Depreciation and amortization, net | 2,434 | 1,721 | ||||||
Deferred tax provision (benefit) | (72 | ) | 149 | |||||
Net securities losses (gains) | (44 | ) | 189 | |||||
Gain on sales of loans | (53 | ) | (539 | ) | ||||
Stock-based compensation expense | 175 | 153 | ||||||
Other | 0 | (51 | ) | |||||
Loans held for sale: | ||||||||
Originations and purchases | (8,064 | ) | (6,285 | ) | ||||
Proceeds from sales and paydowns | 8,126 | 5,707 | ||||||
Changes in operating assets and liabilities: | ||||||||
Changes in interest receivable | (13 | ) | 18 | |||||
Changes in other assets | 1,852 | (118 | ) | |||||
Changes in interest payable | (88 | ) | (22 | ) | ||||
Changes in other liabilities | (522 | ) | (856 | ) | ||||
Net cash from operating activities | 12,519 | 9,038 | ||||||
Investing activities: | ||||||||
Securities available for sale: | ||||||||
Purchases | (8,919 | ) | (11,136 | ) | ||||
Proceeds from paydowns and maturities | 6,099 | 5,839 | ||||||
Proceeds from sales | 4,226 | 3,512 | ||||||
Securities held to maturity: | ||||||||
Purchases | (396 | ) | (16,373 | ) | ||||
Proceeds from paydowns and maturities | 3,209 | 1,839 | ||||||
Loans: | ||||||||
Net changes in loans held for investment | (10,555 | ) | 9,646 | |||||
Principal recoveries of loans previously charged off | 1,947 | 1,927 | ||||||
Net purchases of premises and equipment | (631 | ) | (669 | ) | ||||
Net cash from acquisition activities | (85 | ) | 0 | |||||
Net cash from other investing activities | (781 | ) | (456 | ) | ||||
Net cash from investing activities | (5,886 | ) | (5,871 | ) | ||||
Nine Months Ended September 30, | ||||||||
(Dollars in millions) | 2019 | 2018 | ||||||
Financing activities: | ||||||||
Deposits and borrowings: | ||||||||
Changes in deposits | $ | 7,072 | $ | 3,667 | ||||
Issuance of securitized debt obligations | 6,656 | 997 | ||||||
Maturities and paydowns of securitized debt obligations | (6,222 | ) | (2,248 | ) | ||||
Issuance of senior and subordinated notes and long-term FHLB advances | 4,142 | 5,977 | ||||||
Maturities and paydowns of senior and subordinated notes and long-term FHLB advances | (5,595 | ) | (12,958 | ) | ||||
Changes in other borrowings | (8,964 | ) | 914 | |||||
Common stock: | ||||||||
Net proceeds from issuances | 153 | 137 | ||||||
Dividends paid | (569 | ) | (584 | ) | ||||
Preferred stock: | ||||||||
Net proceeds from issuances | 1,463 | 0 | ||||||
Dividends paid | (185 | ) | (185 | ) | ||||
Purchases of treasury stock | (536 | ) | (1,646 | ) | ||||
Proceeds from share-based payment activities | 0 | 38 | ||||||
Net cash from financing activities | (2,585 | ) | (5,891 | ) | ||||
Changes in cash, cash equivalents and restricted cash for securitization investors | 4,048 | (2,724 | ) | |||||
Cash, cash equivalents and restricted cash for securitization investors, beginning of the period | 13,489 | 14,352 | ||||||
Cash, cash equivalents and restricted cash for securitization investors, end of the period | $ | 17,537 | $ | 11,628 | ||||
Supplemental cash flow information: | ||||||||
Non-cash items: | ||||||||
Net transfers from loans held for investment to loans held for sale | $ | 1,494 | $ | 779 | ||||
Interest paid | 3,689 | 2,881 | ||||||
Income tax paid | 364 | 375 |
See Notes to Consolidated Financial Statements. | ||||||||
Capital One Financial Corporation (COF) |
Nine Months Ended September 30, | ||||||||||||||||||||
(Dollars in millions) | 2020 | 2019 | ||||||||||||||||||
Financing activities: | ||||||||||||||||||||
Deposits and borrowings: | ||||||||||||||||||||
Changes in deposits | $ | 42,763 | $ | 7,072 | ||||||||||||||||
Issuance of securitized debt obligations | 1,248 | 6,656 | ||||||||||||||||||
Maturities and paydowns of securitized debt obligations | (5,752) | (6,222) | ||||||||||||||||||
Issuance of senior and subordinated notes and long-term FHLB advances | 3,987 | 4,142 | ||||||||||||||||||
Maturities and paydowns of senior and subordinated notes and long-term FHLB advances | (7,156) | (5,595) | ||||||||||||||||||
Changes in other borrowings | (6,636) | (8,964) | ||||||||||||||||||
Common stock: | ||||||||||||||||||||
Net proceeds from issuances | 184 | 153 | ||||||||||||||||||
Dividends paid | (415) | (569) | ||||||||||||||||||
Preferred stock: | ||||||||||||||||||||
Net proceeds from issuances | 1,330 | 1,463 | ||||||||||||||||||
Dividends paid | (212) | (185) | ||||||||||||||||||
Redemptions | (875) | 0 | ||||||||||||||||||
Purchases of treasury stock | (390) | (536) | ||||||||||||||||||
Proceeds from share-based payment activities | 21 | 0 | ||||||||||||||||||
Net cash from financing activities | 28,097 | (2,585) | ||||||||||||||||||
Changes in cash, cash equivalents and restricted cash for securitization investors | 31,252 | 4,048 | ||||||||||||||||||
Cash, cash equivalents and restricted cash for securitization investors, beginning of the period | 13,749 | 13,489 | ||||||||||||||||||
Cash, cash equivalents and restricted cash for securitization investors, end of the period | $ | 45,001 | $ | 17,537 | ||||||||||||||||
Supplemental cash flow information: | ||||||||||||||||||||
Non-cash items: | ||||||||||||||||||||
Net transfers from (to) loans held for investment to (from) loans held for sale | $ | 2,173 | $ | 1,494 | ||||||||||||||||
Interest paid | 2,944 | 3,689 | ||||||||||||||||||
Income tax paid | 625 | 364 |
See Notes to Consolidated Financial Statements. | ||||||||
80 | Capital One Financial Corporation (COF) |
NOTE 1—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
Capital One Financial Corporation (COF) |
82 | Capital One Financial Corporation (COF) |
83 | Capital One Financial Corporation (COF) |
84 | Capital One Financial Corporation (COF) |
85 | Capital One Financial Corporation (COF) |
86 | Capital One Financial Corporation (COF) |
87 | Capital One Financial Corporation (COF) |
88 | Capital One Financial Corporation (COF) |
Standard | Guidance | Adoption Timing and Financial | ||||||||||||
Issued | We adopted this guidance in the first quarter of Our adoption of this standard did not have a material impact on our consolidated financial statements. | |||||||||||||
ASU No. Issued | Historical guidance for goodwill impairment testing prescribed that the company must compare each reporting unit’s carrying value to Under the new guidance, an impairment of a reporting unit’s goodwill is determined based on | We adopted this guidance in the first quarter of Our adoption of this standard did not have a material impact on our consolidated financial statements. | ||||||||||||
Current Expected Credit Loss (“CECL”) ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments Issued June 2016 | Requires use of the current expected credit loss model that is based on expected losses (net of expected recoveries), rather than incurred losses, to determine our allowance for credit losses on financial assets measured at amortized cost, certain net investments in leases and certain off-balance sheet arrangements. Replaces current accounting for purchased credit-impaired (“PCI”) and impaired loans. Amends the other-than-temporary impairment model for available for sale debt securities. The new guidance requires that credit losses be recorded through an allowance approach, rather than through permanent write-downs for credit losses and subsequent accretion of positive changes through interest income over time. | We adopted this guidance in the first quarter of 2020, using the modified retrospective method of Upon adoption, we recorded an increase to our reserves for credit losses of $2.9 billion, an increase to our deferred tax assets of $694 million, and a Additionally, we made a prospective change to present our finance charge and |
89 | Capital One Financial Corporation (COF) |
NOTE 2— |
(Dollars in millions) | September 30, 2019 | |||
Right-of-use assets | $ | 1,448 | ||
Lease liabilities | 1,745 | |||
Weighted-average remaining lease term | 9.0 years | |||
Weighted-average discount rate | 3.3 | % |
(Dollars in millions) | Three Months Ended September 30, 2019 | Nine Months Ended September 30, 2019 | ||||||
Operating lease cost | $ | 85 | $ | 232 | ||||
Variable lease cost | 10 | 30 | ||||||
Total lease cost | 95 | 262 | ||||||
Sublease income | (7 | ) | (19 | ) | ||||
Net lease cost | $ | 88 | $ | 243 | ||||
Cash paid for amounts included in the measurement of lease liabilities | $ | 84 | $ | 246 | ||||
Right-of-use assets obtained in exchange for lease liabilities | 21 | 47 | ||||||
Right-of-use assets recognized upon adoption of new lease standard | 0 | 1,601 |
(Dollars in millions) | September 30, 2019 | |||
2019 | $ | 75 | ||
2020 | 300 | |||
2021 | 269 | |||
2022 | 246 | |||
2023 | 217 | |||
Thereafter | 946 | |||
Total undiscounted lease payments | 2,053 | |||
Less: Imputed interest | (308 | ) | ||
Total lease liabilities | $ | 1,745 |
September 30, 2019 | September 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | (Dollars in millions) | Amortized Cost | Allowance for Credit Losses | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||||||||||||||||||||||||||||
Investment securities available for sale: | Investment securities available for sale: | |||||||||||||||||||||||||||||||||||||||||||||||
U.S. Treasury securities | $ | 4,173 | $ | 3 | $ | (21 | ) | $ | 4,155 | U.S. Treasury securities | $ | 9,331 | $ | 0 | $ | 14 | $ | 0 | $ | 9,345 | ||||||||||||||||||||||||||||
RMBS: | RMBS: | |||||||||||||||||||||||||||||||||||||||||||||||
Agency | 33,727 | 239 | (253 | ) | 33,713 | Agency | 72,948 | 0 | 2,506 | (88) | 75,366 | |||||||||||||||||||||||||||||||||||||
Non-agency | 1,313 | 300 | (1 | ) | 1,612 | Non-agency | 1,093 | (3) | 204 | (1) | 1,293 | |||||||||||||||||||||||||||||||||||||
Total RMBS | 35,040 | 539 | (254 | ) | 35,325 | Total RMBS | 74,041 | (3) | 2,710 | (89) | 76,659 | |||||||||||||||||||||||||||||||||||||
Agency CMBS | 5,368 | 48 | (20 | ) | 5,396 | Agency CMBS | 10,953 | 0 | 490 | (8) | 11,435 | |||||||||||||||||||||||||||||||||||||
Other securities(1) | 1,291 | 2 | (1 | ) | 1,292 | Other securities(1) | 2,410 | 0 | 4 | 0 | 2,414 | |||||||||||||||||||||||||||||||||||||
Total investment securities available for sale | $ | 45,872 | $ | 592 | $ | (296 | ) | $ | 46,168 | Total investment securities available for sale | $ | 96,735 | $ | (3) | $ | 3,218 | $ | (97) | $ | 99,853 |
December 31, 2019 | ||||||||||||||||||||||||||
(Dollars in millions) | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||||||||||||
Investment securities available for sale: | ||||||||||||||||||||||||||
U.S. Treasury securities | $ | 4,122 | $ | 6 | $ | (4) | $ | 4,124 | ||||||||||||||||||
RMBS: | ||||||||||||||||||||||||||
Agency | 62,003 | 1,120 | (284) | 62,839 | ||||||||||||||||||||||
Non-agency | 1,235 | 266 | (2) | 1,499 | ||||||||||||||||||||||
Total RMBS | 63,238 | 1,386 | (286) | 64,338 | ||||||||||||||||||||||
Agency CMBS | 9,303 | 165 | (42) | 9,426 | ||||||||||||||||||||||
Other securities(1) | 1,321 | 4 | 0 | 1,325 | ||||||||||||||||||||||
Total investment securities available for sale | $ | 77,984 | $ | 1,561 | $ | (332) | $ | 79,213 |
December 31, 2018 | ||||||||||||||||
(Dollars in millions) | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||
Investment securities available for sale: | ||||||||||||||||
U.S. Treasury securities | $ | 6,146 | $ | 15 | $ | (17 | ) | $ | 6,144 | |||||||
RMBS: | ||||||||||||||||
Agency | 32,710 | 62 | (869 | ) | 31,903 | |||||||||||
Non-agency | 1,440 | 304 | (2 | ) | 1,742 | |||||||||||
Total RMBS | 34,150 | 366 | (871 | ) | 33,645 | |||||||||||
Agency CMBS | 4,806 | 11 | (78 | ) | 4,739 | |||||||||||
Other securities(1) | 1,626 | 2 | (6 | ) | 1,622 | |||||||||||
Total investment securities available for sale | $ | 46,728 | $ | 394 | $ | (972 | ) | $ | 46,150 |
Capital One Financial Corporation (COF) |
September 30, 2019 | ||||||||||||||||||||||||
(Dollars in millions) | Amortized Cost | Unrealized Losses Recorded in AOCI | Carrying Value | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||||||||
Agency RMBS | $ | 30,322 | $ | (213 | ) | $ | 30,109 | $ | 1,194 | $ | (14 | ) | $ | 31,289 | ||||||||||
Agency CMBS | 3,797 | (12 | ) | 3,785 | 191 | (1 | ) | 3,975 | ||||||||||||||||
Total investment securities held to maturity | $ | 34,119 | $ | (225 | ) | $ | 33,894 | $ | 1,385 | $ | (15 | ) | $ | 35,264 |
December 31, 2018 | ||||||||||||||||||||||||
(Dollars in millions) | Amortized Cost | Unrealized Losses Recorded in AOCI | Carrying Value | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||||||||
Agency RMBS | $ | 33,299 | $ | (238 | ) | $ | 33,061 | $ | 293 | $ | (377 | ) | $ | 32,977 | ||||||||||
Agency CMBS | 3,723 | (13 | ) | 3,710 | 21 | (89 | ) | 3,642 | ||||||||||||||||
Total investment securities held to maturity | $ | 37,022 | $ | (251 | ) | $ | 36,771 | $ | 314 | $ | (466 | ) | $ | 36,619 |
September 30, 2019 | September 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less than 12 Months | 12 Months or Longer | Total | 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 | (Dollars in millions) | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | |||||||||||||||||||||||||||||||||||||||||||||||||
Investment securities available for sale: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment securities available for sale without an allowance for credit losses: | Investment securities available for sale without an allowance for credit losses: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Treasury securities | $ | 3,603 | $ | (21 | ) | $ | 0 | $ | 0 | $ | 3,603 | $ | (21 | ) | U.S. Treasury securities | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | |||||||||||||||||||||||||||||||||||
RMBS: | RMBS: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Agency | 5,205 | (21 | ) | 11,155 | (232 | ) | 16,360 | (253 | ) | Agency | 6,681 | (51) | 1,866 | (37) | 8,547 | (88) | ||||||||||||||||||||||||||||||||||||||||||||||
Non-agency | 28 | (1 | ) | 3 | 0 | 31 | (1 | ) | Non-agency | 14 | 0 | 0 | 0 | 14 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||
Total RMBS | 5,233 | (22 | ) | 11,158 | (232 | ) | 16,391 | (254 | ) | Total RMBS | 6,695 | (51) | 1,866 | (37) | 8,561 | (88) | ||||||||||||||||||||||||||||||||||||||||||||||
Agency CMBS | 1,162 | (5 | ) | 1,528 | (15 | ) | 2,690 | (20 | ) | Agency CMBS | 916 | (4) | 257 | (4) | 1,173 | (8) | ||||||||||||||||||||||||||||||||||||||||||||||
Other securities | 463 | (1 | ) | 176 | 0 | 639 | (1 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total investment securities available for sale in a gross unrealized loss position | $ | 10,461 | $ | (49 | ) | $ | 12,862 | $ | (247 | ) | $ | 23,323 | $ | (296 | ) | |||||||||||||||||||||||||||||||||||||||||||||||
Other securities(1) | Other securities(1) | 442 | 0 | 3 | 0 | 445 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total investment securities available for sale in a gross unrealized loss position without an allowance for credit losses(2) | Total investment securities available for sale in a gross unrealized loss position without an allowance for credit losses(2) | $ | 8,053 | $ | (55) | $ | 2,126 | $ | (41) | $ | 10,179 | $ | (96) |
December 31, 2019 | ||||||||||||||||||||||||||||||||||||||
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 | $ | 2,647 | $ | (4) | $ | 0 | $ | 0 | $ | 2,647 | $ | (4) | ||||||||||||||||||||||||||
RMBS: | ||||||||||||||||||||||||||||||||||||||
Agency | 10,494 | (92) | 10,567 | (192) | 21,061 | (284) | ||||||||||||||||||||||||||||||||
Non-agency | 35 | (1) | 16 | (1) | 51 | (2) | ||||||||||||||||||||||||||||||||
Total RMBS | 10,529 | (93) | 10,583 | (193) | 21,112 | (286) | ||||||||||||||||||||||||||||||||
Agency CMBS | 2,580 | (23) | 1,563 | (19) | 4,143 | (42) | ||||||||||||||||||||||||||||||||
Other securities(1) | 126 | 0 | 106 | 0 | 232 | 0 | ||||||||||||||||||||||||||||||||
Total investment securities available for sale in a gross unrealized loss position | $ | 15,882 | $ | (120) | $ | 12,252 | $ | (212) | $ | 28,134 | $ | (332) |
Capital One Financial Corporation (COF) |
December 31, 2018 | ||||||||||||||||||||||||
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 | $ | 2,543 | $ | (3 | ) | $ | 1,076 | $ | (14 | ) | $ | 3,619 | $ | (17 | ) | |||||||||
RMBS: | ||||||||||||||||||||||||
Agency | 7,863 | (260 | ) | 18,118 | (609 | ) | 25,981 | (869 | ) | |||||||||||||||
Non-agency | 89 | (2 | ) | 10 | 0 | 99 | (2 | ) | ||||||||||||||||
Total RMBS | 7,952 | (262 | ) | 18,128 | (609 | ) | 26,080 | (871 | ) | |||||||||||||||
Agency CMBS | 2,004 | (31 | ) | 1,540 | (47 | ) | 3,544 | (78 | ) | |||||||||||||||
Other securities | 244 | (1 | ) | 678 | (5 | ) | 922 | (6 | ) | |||||||||||||||
Total investment securities available for sale in a gross unrealized loss position | $ | 12,743 | $ | (297 | ) | $ | 21,422 | $ | (675 | ) | $ | 34,165 | $ | (972 | ) |
September 30, 2019 | ||||||||||||||||||||
(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 | $ | 0 | $ | 1,483 | $ | 2,672 | $ | 0 | $ | 4,155 | ||||||||||
RMBS(1): | ||||||||||||||||||||
Agency | 1 | 28 | 731 | 32,953 | 33,713 | |||||||||||||||
Non-agency | 0 | 0 | 0 | 1,612 | 1,612 | |||||||||||||||
Total RMBS | 1 | 28 | 731 | 34,565 | 35,325 | |||||||||||||||
Agency CMBS(1) | 11 | 1,833 | 2,298 | 1,254 | 5,396 | |||||||||||||||
Other securities | 459 | 533 | 300 | 0 | 1,292 | |||||||||||||||
Total securities available for sale | $ | 471 | $ | 3,877 | $ | 6,001 | $ | 35,819 | $ | 46,168 | ||||||||||
Amortized cost of securities available for sale | $ | 471 | $ | 3,877 | $ | 5,992 | $ | 35,532 | $ | 45,872 | ||||||||||
Weighted-average yield for securities available for sale | 1.51 | % | 2.45 | % | 2.65 | % | 3.09 | % | 2.96 | % | ||||||||||
Carrying value of securities held to maturity: | ||||||||||||||||||||
Agency RMBS(1) | $ | 0 | $ | 0 | $ | 85 | $ | 30,024 | $ | 30,109 | ||||||||||
Agency CMBS(1) | 0 | 59 | 829 | 2,897 | 3,785 | |||||||||||||||
Total securities held to maturity | $ | 0 | $ | 59 | $ | 914 | $ | 32,921 | $ | 33,894 | ||||||||||
Fair value of securities held to maturity | $ | 0 | $ | 62 | $ | 974 | $ | 34,228 | $ | 35,264 | ||||||||||
Weighted-average yield for securities held to maturity | N/A | 3.65 | % | 3.12 | % | 3.24 | % | 3.24 | % |
September 30, 2020 | ||||||||||||||||||||||||||||||||
(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 | $ | 101 | $ | 9,244 | $ | 0 | $ | 0 | $ | 9,345 | ||||||||||||||||||||||
RMBS(1): | ||||||||||||||||||||||||||||||||
Agency | 0 | 73 | 1,073 | 74,220 | 75,366 | |||||||||||||||||||||||||||
Non-agency | 0 | 0 | 0 | 1,293 | 1,293 | |||||||||||||||||||||||||||
Total RMBS | 0 | 73 | 1,073 | 75,513 | 76,659 | |||||||||||||||||||||||||||
Agency CMBS(1) | 52 | 2,766 | 5,242 | 3,375 | 11,435 | |||||||||||||||||||||||||||
Other securities | 251 | 1,882 | 281 | 0 | 2,414 | |||||||||||||||||||||||||||
Total securities available for sale | $ | 404 | $ | 13,965 | $ | 6,596 | $ | 78,888 | $ | 99,853 | ||||||||||||||||||||||
Amortized cost of securities available for sale | $ | 402 | $ | 13,901 | $ | 6,334 | $ | 76,098 | $ | 96,735 | ||||||||||||||||||||||
Weighted-average yield for securities available for sale | 1.44 | % | 0.82 | % | 1.93 | % | 2.37 | % | 2.11 | % | ||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
(Dollars in millions) | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Realized gains (losses): | ||||||||||||||||
Gross realized gains | $ | 5 | $ | 4 | $ | 44 | $ | 12 | ||||||||
Gross realized losses | 0 | 0 | 0 | (1 | ) | |||||||||||
Net realized gains (losses) | 5 | 4 | 44 | 11 | ||||||||||||
OTTI recognized in earnings: | ||||||||||||||||
Intent-to-sell OTTI | 0 | (200 | ) | 0 | (200 | ) | ||||||||||
Total OTTI recognized in earnings | 0 | (200 | ) | 0 | (200 | ) | ||||||||||
Net securities gains (losses) | $ | 5 | $ | (196 | ) | $ | 44 | $ | (189 | ) | ||||||
Total proceeds from sales | $ | 243 | $ | 2,454 | $ | 4,226 | $ | 3,512 |
(Dollars in millions) | September 30, 2019 | December 31, 2018 | ||||||
Outstanding balance | $ | 1,586 | $ | 1,784 | ||||
Carrying value | 1,435 | 1,537 |
92 | Capital One Financial Corporation (COF) |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
(Dollars in millions) | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Accretable yield, beginning of period | $ | 591 | $ | 768 | $ | 698 | $ | 826 | ||||||||
Accretion recognized in earnings | (41 | ) | (37 | ) | (128 | ) | (115 | ) | ||||||||
Reduction due to payoffs, disposals, transfers and other | (1 | ) | 0 | (4 | ) | (3 | ) | |||||||||
Net reclassifications (to) from nonaccretable difference | (16 | ) | 42 | (33 | ) | 65 | ||||||||||
Accretable yield, end of period | $ | 533 | $ | 773 | $ | 533 | $ | 773 |
September 30, 2019 | ||||||||||||||||||||||||||||
(Dollars in millions) | Current | 30-59 Days | 60-89 Days | > 90 Days | Total Delinquent Loans | PCI Loans | Total Loans | |||||||||||||||||||||
Credit Card: | ||||||||||||||||||||||||||||
Domestic credit card | $ | 100,784 | $ | 1,175 | $ | 832 | $ | 1,873 | $ | 3,880 | $ | 0 | $ | 104,664 | ||||||||||||||
International card businesses | 8,683 | 128 | 81 | 125 | 334 | 0 | 9,017 | |||||||||||||||||||||
Total credit card | 109,467 | 1,303 | 913 | 1,998 | 4,214 | 0 | 113,681 | |||||||||||||||||||||
Consumer Banking: | ||||||||||||||||||||||||||||
Auto | 55,071 | 2,607 | 1,258 | 342 | 4,207 | 0 | 59,278 | |||||||||||||||||||||
Retail banking | 2,690 | 24 | 7 | 14 | 45 | 2 | 2,737 | |||||||||||||||||||||
Total consumer banking | 57,761 | 2,631 | 1,265 | 356 | 4,252 | 2 | 62,015 | |||||||||||||||||||||
Commercial Banking: | ||||||||||||||||||||||||||||
Commercial and multifamily real estate | 29,930 | 18 | 7 | 33 | 58 | 21 | 30,009 | |||||||||||||||||||||
Commercial and industrial | 43,404 | 57 | 79 | 100 | 236 | 10 | 43,650 | |||||||||||||||||||||
Total commercial banking | 73,334 | 75 | 86 | 133 | 294 | 31 | 73,659 | |||||||||||||||||||||
Total loans(1) | $ | 240,562 | $ | 4,009 | $ | 2,264 | $ | 2,487 | $ | 8,760 | $ | 33 | $ | 249,355 | ||||||||||||||
% of Total loans | 96.5 | % | 1.6 | % | 0.9 | % | 1.0 | % | 3.5 | % | 0.0 | % | 100.0 | % |
September 30, 2020 | ||||||||||||||||||||||||||||||||||||||
Delinquent Loans | ||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Current | 30-59 Days | 60-89 Days | > 90 Days | Total Delinquent Loans | Total Loans | ||||||||||||||||||||||||||||||||
Credit Card: | ||||||||||||||||||||||||||||||||||||||
Domestic credit card | $ | 93,433 | $ | 661 | $ | 427 | $ | 1,020 | $ | 2,108 | $ | 95,541 | ||||||||||||||||||||||||||
International card businesses | 7,915 | 77 | 41 | 67 | 185 | 8,100 | ||||||||||||||||||||||||||||||||
Total credit card | 101,348 | 738 | 468 | 1,087 | 2,293 | 103,641 | ||||||||||||||||||||||||||||||||
Consumer Banking: | ||||||||||||||||||||||||||||||||||||||
Auto | 62,756 | 1,810 | 669 | 159 | 2,638 | 65,394 | ||||||||||||||||||||||||||||||||
Retail banking | 3,250 | 23 | 6 | 15 | 44 | 3,294 | ||||||||||||||||||||||||||||||||
Total consumer banking | 66,006 | 1,833 | 675 | 174 | 2,682 | 68,688 | ||||||||||||||||||||||||||||||||
Commercial Banking: | ||||||||||||||||||||||||||||||||||||||
Commercial and multifamily real estate | 31,018 | 29 | 4 | 146 | 179 | 31,197 | ||||||||||||||||||||||||||||||||
Commercial and industrial | 44,338 | 75 | 84 | 200 | 359 | 44,697 | ||||||||||||||||||||||||||||||||
Total commercial banking | 75,356 | 104 | 88 | 346 | 538 | 75,894 | ||||||||||||||||||||||||||||||||
Total loans(1) | $ | 242,710 | $ | 2,675 | $ | 1,231 | $ | 1,607 | $ | 5,513 | $ | 248,223 | ||||||||||||||||||||||||||
% of Total loans | 97.8 | % | 1.1 | % | 0.5 | % | 0.6 | % | 2.2 | % | 100.0 | % |
Capital One Financial Corporation (COF) |
December 31, 2019 | ||||||||||||||||||||||||||||||||||||||||||||
Delinquent Loans | ||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Current | 30-59 Days | 60-89 Days | > 90 Days | Total Delinquent Loans | PCI Loans | Total Loans | |||||||||||||||||||||||||||||||||||||
Credit Card: | ||||||||||||||||||||||||||||||||||||||||||||
Domestic credit card | $ | 113,857 | $ | 1,341 | $ | 1,038 | $ | 2,277 | $ | 4,656 | $ | 93 | $ | 118,606 | ||||||||||||||||||||||||||||||
International card businesses | 9,277 | 133 | 84 | 136 | 353 | 0 | 9,630 | |||||||||||||||||||||||||||||||||||||
Total credit card | 123,134 | 1,474 | 1,122 | 2,413 | 5,009 | 93 | 128,236 | |||||||||||||||||||||||||||||||||||||
Consumer Banking: | ||||||||||||||||||||||||||||||||||||||||||||
Auto | 55,778 | 2,828 | 1,361 | 395 | 4,584 | 0 | 60,362 | |||||||||||||||||||||||||||||||||||||
Retail banking | 2,658 | 24 | 8 | 11 | 43 | 2 | 2,703 | |||||||||||||||||||||||||||||||||||||
Total consumer banking | 58,436 | 2,852 | 1,369 | 406 | 4,627 | 2 | 63,065 | |||||||||||||||||||||||||||||||||||||
Commercial Banking: | ||||||||||||||||||||||||||||||||||||||||||||
Commercial and multifamily real estate | 30,157 | 43 | 20 | 4 | 67 | 21 | 30,245 | |||||||||||||||||||||||||||||||||||||
Commercial and industrial | 44,009 | 75 | 26 | 143 | 244 | 10 | 44,263 | |||||||||||||||||||||||||||||||||||||
Total commercial banking | 74,166 | 118 | 46 | 147 | 311 | 31 | 74,508 | |||||||||||||||||||||||||||||||||||||
Total loans(1) | $ | 255,736 | $ | 4,444 | $ | 2,537 | $ | 2,966 | $ | 9,947 | $ | 126 | $ | 265,809 | ||||||||||||||||||||||||||||||
% of Total loans | 96.2 | % | 1.6 | % | 1.0 | % | 1.1 | % | 3.7 | % | 0.1 | % | 100.0 | % |
December 31, 2018 | ||||||||||||||||||||||||||||
(Dollars in millions) | Current | 30-59 Days | 60-89 Days | > 90 Days | Total Delinquent Loans | PCI Loans | Total Loans | |||||||||||||||||||||
Credit Card: | ||||||||||||||||||||||||||||
Domestic credit card | $ | 103,014 | $ | 1,270 | $ | 954 | $ | 2,111 | $ | 4,335 | $ | 1 | $ | 107,350 | ||||||||||||||
International card businesses | 8,678 | 127 | 78 | 128 | 333 | 0 | 9,011 | |||||||||||||||||||||
Total credit card | 111,692 | 1,397 | 1,032 | 2,239 | 4,668 | 1 | 116,361 | |||||||||||||||||||||
Consumer Banking: | ||||||||||||||||||||||||||||
Auto | 52,032 | 2,624 | 1,326 | 359 | 4,309 | 0 | 56,341 | |||||||||||||||||||||
Retail banking | 2,809 | 23 | 8 | 20 | 51 | 4 | 2,864 | |||||||||||||||||||||
Total consumer banking | 54,841 | 2,647 | 1,334 | 379 | 4,360 | 4 | 59,205 | |||||||||||||||||||||
Commercial Banking: | ||||||||||||||||||||||||||||
Commercial and multifamily real estate | 28,737 | 101 | 20 | 19 | 140 | 22 | 28,899 | |||||||||||||||||||||
Commercial and industrial | 40,704 | 135 | 43 | 101 | 279 | 108 | 41,091 | |||||||||||||||||||||
Total commercial lending | 69,441 | 236 | 63 | 120 | 419 | 130 | 69,990 | |||||||||||||||||||||
Small-ticket commercial real estate | 336 | 2 | 1 | 4 | 7 | 0 | 343 | |||||||||||||||||||||
Total commercial banking | 69,777 | 238 | 64 | 124 | 426 | 130 | 70,333 | |||||||||||||||||||||
Total loans(1) | $ | 236,310 | $ | 4,282 | $ | 2,430 | $ | 2,742 | $ | 9,454 | $ | 135 | $ | 245,899 | ||||||||||||||
% of Total loans | 96.1 | % | 1.7 | % | 1.0 | % | 1.1 | % | 3.8 | % | 0.1 | % | 100.0 | % |
September 30, 2019 | December 31, 2018 | |||||||||||||||
(Dollars in millions) | > 90 Days and Accruing | Nonperforming Loans | > 90 Days and Accruing | Nonperforming Loans | ||||||||||||
Credit Card: | ||||||||||||||||
Domestic credit card | $ | 1,873 | N/A | $ | 2,111 | N/A | ||||||||||
International card businesses | 119 | $ | 23 | 122 | $ | 22 | ||||||||||
Total credit card | 1,992 | 23 | 2,233 | 22 | ||||||||||||
Consumer Banking: | ||||||||||||||||
Auto | 0 | 432 | 0 | 449 | ||||||||||||
Retail banking | 0 | 25 | 0 | 30 | ||||||||||||
Total consumer banking | 0 | 457 | 0 | 479 |
September 30, 2020 | December 31, 2019 | |||||||||||||||||||||||||||||||
(Dollars in millions) | > 90 Days and Accruing | Nonperforming Loans(1) | Nonperforming Loans Without an Allowance | > 90 Days and Accruing | Nonperforming Loans | |||||||||||||||||||||||||||
Credit Card: | ||||||||||||||||||||||||||||||||
Domestic credit card | $ | 1,020 | N/A | $ | 0 | $ | 2,277 | N/A | ||||||||||||||||||||||||
International card businesses | 63 | $ | 21 | 0 | 130 | $ | 25 | |||||||||||||||||||||||||
Total credit card | 1,083 | 21 | 0 | 2,407 | 25 | |||||||||||||||||||||||||||
Consumer Banking: | ||||||||||||||||||||||||||||||||
Auto | 0 | 235 | 0 | 0 | 487 | |||||||||||||||||||||||||||
Retail banking | 1 | 25 | 0 | 0 | 23 | |||||||||||||||||||||||||||
Total consumer banking | 1 | 260 | 0 | 0 | 510 | |||||||||||||||||||||||||||
Commercial Banking: | ||||||||||||||||||||||||||||||||
Commercial and multifamily real estate | 0 | 182 | 180 | 0 | 38 | |||||||||||||||||||||||||||
Commercial and industrial | 0 | 586 | 243 | 0 | 410 | |||||||||||||||||||||||||||
Total commercial banking | 0 | 768 | 423 | 0 | 448 | |||||||||||||||||||||||||||
Total | $ | 1,084 | $ | 1,049 | $ | 423 | $ | 2,407 | $ | 983 | ||||||||||||||||||||||
% of Total loans held for investment | 0.4 | % | 0.4 | % | 0.2 | % | 0.9 | % | 0.4 | % |
Capital One Financial Corporation (COF) |
September 30, 2019 | December 31, 2018 | |||||||||||||||
(Dollars in millions) | > 90 Days and Accruing | Nonperforming Loans | > 90 Days and Accruing | Nonperforming Loans | ||||||||||||
Commercial Banking: | ||||||||||||||||
Commercial and multifamily real estate | $ | 31 | $ | 36 | $ | 0 | $ | 83 | ||||||||
Commercial and industrial | 0 | 413 | 0 | 223 | ||||||||||||
Total commercial lending | 31 | 449 | 0 | 306 | ||||||||||||
Small-ticket commercial real estate | 0 | 0 | 0 | 6 | ||||||||||||
Total commercial banking | 31 | 449 | 0 | 312 | ||||||||||||
Total | $ | 2,023 | $ | 929 | $ | 2,233 | $ | 813 | ||||||||
% of Total loans held for investment | 0.8 | % | 0.4 | % | 0.9 | % | 0.3 | % |
September 30, 2019 | December 31, 2018 | |||||||||||||
(Dollars in millions) | Amount | % of Total | Amount | % of Total | ||||||||||
Domestic credit card: | ||||||||||||||
California | $ | 11,297 | 9.9 | % | $ | 11,591 | 10.0 | % | ||||||
Texas | 8,078 | 7.1 | 8,173 | 7.0 | ||||||||||
New York | 7,224 | 6.4 | 7,400 | 6.4 | ||||||||||
Florida | 7,009 | 6.2 | 7,086 | 6.1 | ||||||||||
Illinois | 4,574 | 4.0 | 4,761 | 4.1 | ||||||||||
Pennsylvania | 4,382 | 3.9 | 4,575 | 3.9 | ||||||||||
Ohio | 3,818 | 3.4 | 3,967 | 3.4 | ||||||||||
New Jersey | 3,541 | 3.1 | 3,641 | 3.1 | ||||||||||
Michigan | 3,415 | 3.0 | 3,544 | 3.0 | ||||||||||
Other | 51,326 | 45.1 | 52,612 | 45.3 | ||||||||||
Total domestic credit card | 104,664 | 92.1 | 107,350 | 92.3 | ||||||||||
International card businesses: | ||||||||||||||
Canada | 6,155 | 5.4 | 6,023 | 5.1 | ||||||||||
United Kingdom | 2,862 | 2.5 | 2,988 | 2.6 | ||||||||||
Total international card businesses | 9,017 | 7.9 | 9,011 | 7.7 | ||||||||||
Total credit card | $ | 113,681 | 100.0 | % | $ | 116,361 | 100.0 | % |
September 30, 2020 | ||||||||||||||||||||||||||
(Dollars in millions) | Revolving Loans | Revolving Loans Converted to Term | Total | |||||||||||||||||||||||
Credit Card: | ||||||||||||||||||||||||||
Domestic credit card: | ||||||||||||||||||||||||||
Current | $ | 92,904 | $ | 529 | $ | 93,433 | ||||||||||||||||||||
30-59 days | 641 | 20 | 661 | |||||||||||||||||||||||
60-89 days | 414 | 13 | 427 | |||||||||||||||||||||||
Greater than 90 days | 1,004 | 16 | 1,020 | |||||||||||||||||||||||
Total domestic credit card | 94,963 | 578 | 95,541 | |||||||||||||||||||||||
International card businesses: | ||||||||||||||||||||||||||
Current | 7,845 | 70 | 7,915 | |||||||||||||||||||||||
30-59 days | 67 | 10 | 77 | |||||||||||||||||||||||
60-89 days | 33 | 8 | 41 | |||||||||||||||||||||||
Greater than 90 days | 59 | 8 | 67 | |||||||||||||||||||||||
Total international card businesses | 8,004 | 96 | 8,100 | |||||||||||||||||||||||
Total credit card | $ | 102,967 | $ | 674 | $ | 103,641 |
Capital One Financial Corporation (COF) |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||||||
(Dollars in millions) | Amount | Rate(1) | Amount | Rate(1) | Amount | Rate(1) | Amount | Rate(1) | ||||||||||||||||||||
Net charge-offs:(1) | ||||||||||||||||||||||||||||
Domestic credit card | $ | 1,065 | 4.12 | % | $ | 1,094 | 4.35 | % | $ | 3,599 | 4.67 | % | $ | 3,581 | 4.78 | % | ||||||||||||
International card businesses | 86 | 3.78 | 43 | 1.92 | 236 | 3.54 | 193 | 2.85 | ||||||||||||||||||||
Total credit card | $ | 1,151 | 4.09 | $ | 1,137 | 4.15 | $ | 3,835 | 4.58 | $ | 3,774 | 4.62 |
September 30, 2019 | December 31, 2018 | |||||||||||||
(Dollars in millions) | Amount | % of Total | Amount | % of Total | ||||||||||
Auto: | ||||||||||||||
Texas | $ | 7,541 | 12.2 | % | $ | 7,264 | 12.3 | % | ||||||
California | 6,786 | 10.9 | 6,352 | 10.7 | ||||||||||
Florida | 4,891 | 7.9 | 4,623 | 7.8 | ||||||||||
Georgia | 2,712 | 4.4 | 2,665 | 4.5 | ||||||||||
Ohio | 2,633 | 4.2 | 2,502 | 4.2 | ||||||||||
Pennsylvania | 2,286 | 3.7 | 2,167 | 3.7 | ||||||||||
Illinois | 2,210 | 3.6 | 2,171 | 3.7 | ||||||||||
Louisiana | 2,104 | 3.4 | 2,174 | 3.7 | ||||||||||
Other | 28,115 | 45.3 | 26,423 | 44.6 | ||||||||||
Total auto | 59,278 | 95.6 | 56,341 | 95.2 | ||||||||||
Retail banking: | ||||||||||||||
New York | 799 | 1.3 | 837 | 1.4 | ||||||||||
Louisiana | 729 | 1.2 | 772 | 1.3 | ||||||||||
Texas | 604 | 0.9 | 647 | 1.1 | ||||||||||
New Jersey | 194 | 0.3 | 201 | 0.3 | ||||||||||
Maryland | 158 | 0.3 | 161 | 0.3 | ||||||||||
Virginia | 126 | 0.2 | 137 | 0.2 | ||||||||||
Other | 127 | 0.2 | 109 | 0.2 | ||||||||||
Total retail banking | 2,737 | 4.4 | 2,864 | 4.8 | ||||||||||
Total consumer banking | $ | 62,015 | 100.0 | % | $ | 59,205 | 100.0 | % |
September 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Term Loans by Vintage Year | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | 2020 | 2019 | 2018 | 2017 | 2016 | Prior | Total Term Loans | Revolving Loans | Revolving Loans Converted to Term | Total | December 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Auto—At origination FICO scores:(1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Greater than 660 | $ | 10,562 | $ | 9,021 | $ | 5,353 | $ | 3,338 | $ | 1,496 | $ | 333 | $ | 30,103 | $ | 0 | $ | 0 | $ | 30,103 | $ | 28,773 | ||||||||||||||||||||||||||||||||||||||||||||||
621-660 | 4,666 | 4,027 | 2,264 | 1,361 | 597 | 161 | 13,076 | 0 | 0 | 13,076 | 11,924 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
620 or below | 7,875 | 6,924 | 3,722 | 2,283 | 1,068 | 343 | 22,215 | 0 | 0 | 22,215 | 19,665 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total auto | 23,103 | 19,972 | 11,339 | 6,982 | 3,161 | 837 | 65,394 | 0 | 0 | 65,394 | 60,362 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retail banking—Delinquency status: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Current | 1,081 | 237 | 231 | 231 | 186 | 576 | 2,542 | 699 | 9 | 3,250 | 2,658 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
30-59 days | 0 | 0 | 0 | 2 | 1 | 3 | 6 | 17 | 0 | 23 | 24 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
60-89 days | 0 | 0 | 0 | 0 | 1 | 2 | 3 | 3 | 0 | 6 | 8 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Greater than 90 days | 0 | 0 | 0 | 1 | 1 | 4 | 6 | 8 | 1 | 15 | 11 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total retail banking(2) | 1,081 | 237 | 231 | 234 | 189 | 585 | 2,557 | 727 | 10 | 3,294 | 2,701 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total consumer banking | $ | 24,184 | $ | 20,209 | $ | 11,570 | $ | 7,216 | $ | 3,350 | $ | 1,422 | $ | 67,951 | $ | 727 | $ | 10 | $ | 68,688 | $ | 63,063 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||||||
(Dollars in millions) | Amount | Rate(1) | Amount | Rate(1) | Amount | Rate(1) | Amount | Rate(1) | ||||||||||||||||||||
Net charge-offs (recoveries): | ||||||||||||||||||||||||||||
Auto | $ | 234 | 1.60 | % | $ | 243 | 1.73 | % | $ | 592 | 1.38 | % | $ | 633 | 1.53 | % | ||||||||||||
Retail banking | 17 | 2.55 | 19 | 2.62 | 52 | 2.51 | 51 | 2.18 | ||||||||||||||||||||
Home loan | 0 | 0.00 | 0 | 0.00 | 0 | 0.00 | (1 | ) | (0.02 | ) | ||||||||||||||||||
Total consumer banking | $ | 251 | 1.64 | $ | 262 | 1.77 | $ | 644 | 1.43 | $ | 683 | 1.36 |
September 30, 2019 | December 31, 2018 | |||||||||||||
(Dollars in millions) | Amount | Rate(2) | Amount | Rate(2) | ||||||||||
Nonperforming loans: | ||||||||||||||
Auto | $ | 432 | 0.73 | % | $ | 449 | 0.80 | % | ||||||
Retail banking | 25 | 0.91 | 30 | 1.04 | ||||||||||
Total consumer banking | $ | 457 | 0.74 | $ | 479 | 0.81 |
•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 full 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. |
September 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Term Loans by Vintage Year | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | 2020 | 2019 | 2018 | 2017 | 2016 | Prior | Total Term Loans | Revolving Loans | Revolving Loans Converted to Term | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Internal risk rating:(1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial and multifamily real estate | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncriticized | $ | 3,017 | $ | 5,267 | $ | 3,426 | $ | 1,796 | $ | 1,972 | $ | 5,756 | $ | 21,234 | $ | 7,152 | $ | 0 | $ | 28,386 | ||||||||||||||||||||||||||||||||||||||||||
Criticized performing | 217 | 369 | 438 | 326 | 288 | 935 | 2,573 | 56 | 0 | 2,629 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Criticized nonperforming | 0 | 12 | 30 | 0 | 3 | 137 | 182 | 0 | 0 | 182 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total commercial and multifamily real estate | 3,234 | 5,648 | 3,894 | 2,122 | 2,263 | 6,828 | 23,989 | 7,208 | 0 | 31,197 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncriticized | 7,467 | 8,363 | 4,565 | 2,932 | 1,981 | 3,443 | 28,751 | 11,213 | 183 | 40,147 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Criticized performing | 258 | 732 | 461 | 345 | 91 | 210 | 2,097 | 1,825 | 42 | 3,964 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Criticized nonperforming | 45 | 78 | 52 | 75 | 9 | 3 | 262 | 324 | 0 | 586 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total commercial and industrial | 7,770 | 9,173 | 5,078 | 3,352 | 2,081 | 3,656 | 31,110 | 13,362 | 225 | 44,697 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total commercial banking(2) | $ | 11,004 | $ | 14,821 | $ | 8,972 | $ | 5,474 | $ | 4,344 | $ | 10,484 | $ | 55,099 | $ | 20,570 | $ | 225 | $ | 75,894 |
December 31, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Commercial and Multifamily Real Estate | % of Total | Commercial and Industrial | % of Total | Total Commercial Banking | % of Total | ||||||||||||||||||||||||||||||||||||||||||||
Internal risk rating:(1) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Noncriticized | $ | 29,625 | 97.9 | % | $ | 42,223 | 95.4 | % | $ | 71,848 | 96.5 | % | ||||||||||||||||||||||||||||||||||||||
Criticized performing | 561 | 1.9 | 1,620 | 3.7 | 2,181 | 2.9 | ||||||||||||||||||||||||||||||||||||||||||||
Criticized nonperforming | 38 | 0.1 | 410 | 0.9 | 448 | 0.6 | ||||||||||||||||||||||||||||||||||||||||||||
PCI loans | 21 | 0.1 | 10 | 0.0 | 31 | 0.0 | ||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 30,245 | 100.0 | % | $ | 44,263 | 100.0 | % | $ | 74,508 | 100.0 | % |
Capital One Financial Corporation (COF) |
September 30, 2019 | |||||||||||||||||||||
(Dollars in millions) | Commercial and Multifamily Real Estate | % of Total | Commercial and Industrial | % of Total | Total Commercial Banking | % of Total | |||||||||||||||
Geographic concentration:(1) | |||||||||||||||||||||
Northeast | $ | 16,301 | 54.3 | % | $ | 8,403 | 19.3 | % | $ | 24,704 | 33.5 | % | |||||||||
Mid-Atlantic | 3,080 | 10.3 | 5,572 | 12.8 | 8,652 | 11.7 | |||||||||||||||
South | 4,437 | 14.8 | 15,386 | 35.2 | 19,823 | 26.9 | |||||||||||||||
Other | 6,191 | 20.6 | 14,289 | 32.7 | 20,480 | 27.9 | |||||||||||||||
Total | $ | 30,009 | 100.0 | % | $ | 43,650 | 100.0 | % | $ | 73,659 | 100.0 | % | |||||||||
Internal risk rating:(2) | |||||||||||||||||||||
Noncriticized | $ | 29,272 | 97.5 | % | $ | 41,872 | 96.0 | % | $ | 71,144 | 96.6 | % | |||||||||
Criticized performing | 680 | 2.3 | 1,355 | 3.1 | 2,035 | 2.8 | |||||||||||||||
Criticized nonperforming | 36 | 0.1 | 413 | 0.9 | 449 | 0.6 | |||||||||||||||
PCI loans | 21 | 0.1 | 10 | 0.0 | 31 | 0.0 | |||||||||||||||
Total | $ | 30,009 | 100.0 | % | $ | 43,650 | 100.0 | % | $ | 73,659 | 100.0 | % |
December 31, 2018 | ||||||||||||||||||||||||||||
(Dollars in millions) | Commercial and Multifamily Real Estate | % of Total | Commercial and Industrial | % of Total | Small-Ticket Commercial Real Estate | % of Total | Total Commercial Banking | % of Total | ||||||||||||||||||||
Geographic concentration:(1) | ||||||||||||||||||||||||||||
Northeast | $ | 15,562 | 53.8 | % | $ | 7,573 | 18.4 | % | $ | 213 | 62.1 | % | $ | 23,348 | 33.2 | % | ||||||||||||
Mid-Atlantic | 3,410 | 11.8 | 4,710 | 11.5 | 12 | 3.5 | 8,132 | 11.6 | ||||||||||||||||||||
South | 4,247 | 14.7 | 15,367 | 37.4 | 20 | 5.8 | 19,634 | 27.9 | ||||||||||||||||||||
Other | 5,680 | 19.7 | 13,441 | 32.7 | 98 | 28.6 | 19,219 | 27.3 | ||||||||||||||||||||
Total | $ | 28,899 | 100.0 | % | $ | 41,091 | 100.0 | % | $ | 343 | 100.0 | % | $ | 70,333 | 100.0 | % | ||||||||||||
Internal risk rating:(2) | ||||||||||||||||||||||||||||
Noncriticized | $ | 28,239 | 97.7 | % | $ | 39,468 | 96.1 | % | $ | 336 | 98.0 | % | $ | 68,043 | 96.8 | % | ||||||||||||
Criticized performing | 555 | 1.9 | 1,292 | 3.1 | 1 | 0.3 | 1,848 | 2.6 | ||||||||||||||||||||
Criticized nonperforming | 83 | 0.3 | 223 | 0.5 | 6 | 1.7 | 312 | 0.4 | ||||||||||||||||||||
PCI loans | 22 | 0.1 | 108 | 0.3 | 0 | 0.0 | 130 | 0.2 | ||||||||||||||||||||
Total | $ | 28,899 | 100.0 | % | $ | 41,091 | 100.0 | % | $ | 343 | 100.0 | % | $ | 70,333 | 100.0 | % |
September 30, 2019 | ||||||||||||||||||||||||
(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 | $ | 625 | $ | 0 | $ | 625 | $ | 115 | $ | 510 | $ | 615 | ||||||||||||
International card businesses | 190 | 0 | 190 | 82 | 108 | 185 | ||||||||||||||||||
Total credit card(1) | 815 | 0 | 815 | 197 | 618 | 800 | ||||||||||||||||||
Consumer Banking: | ||||||||||||||||||||||||
Auto | 294 | 41 | 335 | 26 | 309 | 445 | ||||||||||||||||||
Retail banking | 45 | 2 | 47 | 6 | 41 | 52 | ||||||||||||||||||
Total consumer banking | 339 | 43 | 382 | 32 | 350 | 497 | ||||||||||||||||||
Commercial Banking: | ||||||||||||||||||||||||
Commercial and multifamily real estate | 36 | 33 | 69 | 1 | 68 | 71 | ||||||||||||||||||
Commercial and industrial | 516 | 141 | 657 | 97 | 560 | 779 | ||||||||||||||||||
Total commercial banking | 552 | 174 | 726 | 98 | 628 | 850 | ||||||||||||||||||
Total | $ | 1,706 | $ | 217 | $ | 1,923 | $ | 327 | $ | 1,596 | $ | 2,147 |
December 31, 2018 | ||||||||||||||||||||||||
(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 | $ | 666 | $ | 0 | $ | 666 | $ | 186 | $ | 480 | $ | 654 | ||||||||||||
International card businesses | 189 | 0 | 189 | 91 | 98 | 183 | ||||||||||||||||||
Total credit card(1) | 855 | 0 | 855 | 277 | 578 | 837 | ||||||||||||||||||
Consumer Banking: | ||||||||||||||||||||||||
Auto(2) | 301 | 38 | 339 | 22 | 317 | 420 | ||||||||||||||||||
Retail banking | 42 | 12 | 54 | 5 | 49 | 60 | ||||||||||||||||||
Total consumer banking | 343 | 50 | 393 | 27 | 366 | 480 | ||||||||||||||||||
Commercial Banking: | ||||||||||||||||||||||||
Commercial and multifamily real estate | 92 | 28 | 120 | 5 | 115 | �� | 121 | |||||||||||||||||
Commercial and industrial | 301 | 169 | 470 | 29 | 441 | 593 | ||||||||||||||||||
Total commercial lending | 393 | 197 | 590 | 34 | 556 | 714 | ||||||||||||||||||
Small-ticket commercial real estate | 0 | 6 | 6 | 0 | 6 | 9 | ||||||||||||||||||
Total commercial banking | 393 | 203 | 596 | 34 | 562 | 723 | ||||||||||||||||||
Total | $ | 1,591 | $ | 253 | $ | 1,844 | $ | 338 | $ | 1,506 | $ | 2,040 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||||||||||
(Dollars in millions) | Average Recorded Investment | Interest Income Recognized | Average Recorded Investment | Interest Income Recognized | Average Recorded Investment | Interest Income Recognized | Average Recorded Investment | Interest Income Recognized | ||||||||||||||||||||||||
Credit Card: | ||||||||||||||||||||||||||||||||
Domestic credit card | $ | 628 | $ | 14 | $ | 659 | $ | 15 | $ | 645 | $ | 43 | $ | 653 | $ | 47 | ||||||||||||||||
International card businesses | 192 | 4 | 186 | 3 | 193 | 11 | 182 | 9 | ||||||||||||||||||||||||
Total credit card(1) | 820 | 18 | 845 | 18 | 838 | 54 | 835 | 56 | ||||||||||||||||||||||||
Consumer Banking: | ||||||||||||||||||||||||||||||||
Auto(2) | 334 | 10 | 366 | 11 | 338 | 29 | 411 | 35 | ||||||||||||||||||||||||
Home loan | 0 | 0 | 0 | 0 | 0 | 0 | 114 | 1 | ||||||||||||||||||||||||
Retail banking | 52 | 0 | 59 | 0 | 53 | 1 | 60 | 1 | ||||||||||||||||||||||||
Total consumer banking | 386 | 10 | 425 | 11 | 391 | 30 | 585 | 37 | ||||||||||||||||||||||||
Commercial Banking: | ||||||||||||||||||||||||||||||||
Commercial and multifamily real estate | 74 | 0 | 67 | 1 | 94 | 1 | 86 | 2 | ||||||||||||||||||||||||
Commercial and industrial | 605 | 3 | 583 | 6 | 562 | 11 | 658 | 16 | ||||||||||||||||||||||||
Total commercial lending | 679 | 3 | 650 | 7 | 656 | 12 | 744 | 18 | ||||||||||||||||||||||||
Small-ticket commercial real estate | 3 | 0 | 5 | 0 | 5 | 0 | 6 | 0 | ||||||||||||||||||||||||
Total commercial banking | 682 | 3 | 655 | 7 | 661 | 12 | 750 | 18 | ||||||||||||||||||||||||
Total | $ | 1,888 | $ | 31 | $ | 1,925 | $ | 36 | $ | 1,890 | $ | 96 | $ | 2,170 | $ | 111 |
Capital One Financial Corporation (COF) |
Total Loans Modified(1) | Three Months Ended September 30, 2019 | Total Loans Modified(1) | Three Months Ended September 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reduced Interest Rate | Term Extension | Balance Reduction | Reduced Interest Rate | Term Extension | Balance Reduction | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | % of TDR Activity(2) | Average Rate Reduction | % of TDR Activity(2) | Average Term Extension (Months) | % of TDR Activity(2) | Gross Balance Reduction | (Dollars in millions) | % of TDR Activity(2) | Average Rate Reduction | % of TDR Activity(2) | Average Term Extension (Months) | % of TDR Activity(2) | Gross Balance Reduction | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Credit Card: | Credit Card: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Domestic credit card | $ | 85 | 100 | % | 16.76 | % | 0 | % | 0 | 0 | % | $ | 0 | Domestic credit card | $ | 50 | 100 | % | 15.53 | % | 0 | % | 0 | 0 | % | $ | 0 | |||||||||||||||||||||||||||||||||||||||
International card businesses | 43 | 100 | 27.08 | 0 | 0 | 0 | 0 | International card businesses | 39 | 100 | 27.89 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Total credit card | 128 | 100 | 20.19 | 0 | 0 | 0 | 0 | Total credit card | 89 | 100 | 20.94 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer Banking: | Consumer Banking: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Auto | 66 | 42 | 3.51 | 89 | 8 | 1 | 1 | Auto | 133 | 3 | 4.83 | 94 | 2 | 0 | 1 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Retail banking | 1 | 9 | 9.30 | 0 | 0 | 0 | 0 | Retail banking | 1 | 85 | 3.24 | 15 | 61 | 0 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Total consumer banking | 67 | 42 | 3.53 | 88 | 8 | 1 | 1 | Total consumer banking | 134 | 4 | 4.75 | 94 | 2 | 0 | 1 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial Banking: | Commercial Banking: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial and multifamily real estate | Commercial and multifamily real estate | 57 | 0 | 0.00 | 100 | 4 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | 51 | 9 | 1.00 | 15 | 14 | 0 | 0 | Commercial and industrial | 201 | 0 | 0.00 | 54 | 32 | 0 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Total commercial banking | 51 | 9 | 1.00 | 15 | 14 | 0 | 0 | Total commercial banking | 258 | 0 | 0.00 | 64 | 23 | 0 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 246 | 65 | 16.70 | 27 | 9 | 0 | $ | 1 | Total | $ | 481 | 19 | 20.08 | 61 | 14 | 0 | $ | 1 |
Total Loans Modified(1) | Nine Months Ended September 30, 2019 | |||||||||||||||||||||
Reduced Interest Rate | Term Extension | Balance Reduction | ||||||||||||||||||||
(Dollars in millions) | % of TDR Activity(2) | Average Rate Reduction | % of TDR Activity(2) | Average Term Extension (Months) | % of TDR Activity(2) | Gross Balance Reduction | ||||||||||||||||
Credit Card: | ||||||||||||||||||||||
Domestic credit card | $ | 257 | 100 | % | 16.58 | % | 0 | % | 0 | 0 | % | $ | 0 | |||||||||
International card businesses | 130 | 100 | 27.25 | 0 | 0 | 0 | 0 | |||||||||||||||
Total credit card | 387 | 100 | 20.18 | 0 | 0 | 0 | 0 | |||||||||||||||
Consumer Banking: | ||||||||||||||||||||||
Auto | 190 | 41 | 3.70 | 90 | 8 | 1 | 1 | |||||||||||||||
Retail banking | 7 | 10 | 10.73 | 54 | 3 | 34 | 0 | |||||||||||||||
Total consumer banking | 197 | 40 | 3.76 | 89 | 7 | 2 | 1 | |||||||||||||||
Commercial Banking: | ||||||||||||||||||||||
Commercial and multifamily real estate | 34 | 100 | 0.00 | 0 | 0 | 0 | 0 | |||||||||||||||
Commercial and industrial | 86 | 5 | 0.60 | 25 | 9 | 0 | 0 | |||||||||||||||
Total commercial lending | 120 | 32 | 0.07 | 18 | 9 | 0 | 0 | |||||||||||||||
Small-ticket commercial real estate | 1 | 0 | 0.00 | 0 | 0 | 0 | 0 | |||||||||||||||
Total commercial banking | 121 | 32 | 0.07 | 18 | 9 | 0 | 0 | |||||||||||||||
Total | $ | 705 | 72 | 16.08 | 28 | 8 | 1 | $ | 1 |
Total Loans Modified(1) | Nine Months Ended September 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||
Reduced Interest Rate | Term Extension | Balance Reduction | ||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | % of TDR Activity(2) | Average Rate Reduction | % of TDR Activity(2) | Average Term Extension (Months) | % of TDR Activity(2) | Gross Balance Reduction | ||||||||||||||||||||||||||||||||||||||
Credit Card: | ||||||||||||||||||||||||||||||||||||||||||||
Domestic credit card | $ | 195 | 100 | % | 15.92 | % | 0 | % | 0 | 0 | % | $ | 0 | |||||||||||||||||||||||||||||||
International card businesses | 118 | 100 | 27.33 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||||||
Total credit card | 313 | 100 | 20.22 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||||||
Consumer Banking: | ||||||||||||||||||||||||||||||||||||||||||||
Auto | 393 | 9 | 3.68 | 95 | 3 | 0 | 1 | |||||||||||||||||||||||||||||||||||||
Retail banking | 5 | 9 | 10.85 | 15 | 8 | 0 | 0 | |||||||||||||||||||||||||||||||||||||
Total consumer banking | 398 | 9 | 3.76 | 94 | 3 | 0 | 1 | |||||||||||||||||||||||||||||||||||||
Commercial Banking: | ||||||||||||||||||||||||||||||||||||||||||||
Commercial and multifamily real estate | 85 | 0 | 0.00 | 100 | 6 | 0 | 0 | |||||||||||||||||||||||||||||||||||||
Commercial and industrial | 389 | 0 | 0.00 | 52 | 21 | 4 | 7 | |||||||||||||||||||||||||||||||||||||
Total commercial banking | 474 | 0 | 0.00 | 61 | 16 | 3 | 7 | |||||||||||||||||||||||||||||||||||||
Total | $ | 1,185 | 29 | 18.49 | 56 | 9 | 1 | $ | 8 |
Capital One Financial Corporation (COF) |
Total Loans Modified(1) | Three Months Ended September 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||
Reduced Interest Rate | Term Extension | Balance Reduction | ||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | % of TDR Activity(2) | Average Rate Reduction | % of TDR Activity(2) | Average Term Extension (Months) | % of TDR Activity(2) | Gross Balance Reduction | ||||||||||||||||||||||||||||||||||||||
Credit Card: | ||||||||||||||||||||||||||||||||||||||||||||
Domestic credit card | $ | 85 | 100 | % | 16.76 | % | 0 | % | 0 | 0 | % | $ | 0 | |||||||||||||||||||||||||||||||
International card businesses | 43 | 100 | 27.08 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||||||
Total credit card | 128 | 100 | 20.19 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||||||
Consumer Banking: | ||||||||||||||||||||||||||||||||||||||||||||
Auto | 66 | 42 | 3.51 | 89 | 8 | 1 | 1 | |||||||||||||||||||||||||||||||||||||
Retail banking | 1 | 9 | 9.30 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||||||
Total consumer banking | 67 | 42 | 3.53 | 88 | 8 | 1 | 1 | |||||||||||||||||||||||||||||||||||||
Commercial Banking: | ||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | 51 | 9 | 1.00 | 15 | 14 | 0 | 0 | |||||||||||||||||||||||||||||||||||||
Total commercial banking | 51 | 9 | 1.00 | 15 | 14 | 0 | 0 | |||||||||||||||||||||||||||||||||||||
Total | $ | 246 | 65 | 16.70 | 27 | 9 | 0 | $ | 1 |
Total Loans Modified(1) | Three Months Ended September 30, 2018 | |||||||||||||||||||||
Reduced Interest Rate | Term Extension | Balance Reduction | ||||||||||||||||||||
(Dollars in millions) | % of TDR Activity(2) | Average Rate Reduction | % of TDR Activity(2) | Average Term Extension (Months) | % of TDR Activity(2) | Gross Balance Reduction | ||||||||||||||||
Credit Card: | ||||||||||||||||||||||
Domestic credit card | $ | 105 | 100 | % | 16.01 | % | 0 | % | 0 | 0 | % | $ | 0 | |||||||||
International card businesses | 46 | 100 | 26.95 | 0 | 0 | 0 | 0 | |||||||||||||||
Total credit card | 151 | 100 | 19.35 | 0 | 0 | 0 | 0 | |||||||||||||||
Consumer Banking: | ||||||||||||||||||||||
Auto(3) | 47 | 51 | 3.88 | 85 | 9 | 1 | 0 | |||||||||||||||
Retail banking | 0 | 100 | 10.45 | 5 | 12 | 0 | 0 | |||||||||||||||
Total consumer banking | 47 | 52 | 3.93 | 85 | 9 | 1 | 0 | |||||||||||||||
Commercial Banking: | ||||||||||||||||||||||
Commercial and multifamily real estate | 22 | 0 | 0.00 | 61 | 3 | 0 | 0 | |||||||||||||||
Commercial and industrial | 50 | 0 | 0.00 | 13 | 8 | 0 | 0 | |||||||||||||||
Total commercial lending | 72 | 0 | 0.00 | 28 | 5 | 0 | 0 | |||||||||||||||
Small-ticket commercial real estate | 1 | 0 | 0.00 | 0 | 0 | 0 | 0 | |||||||||||||||
Total commercial banking | 73 | 0 | 0.00 | 28 | 5 | 0 | 0 | |||||||||||||||
Total | $ | 271 | 65 | 17.26 | 22 | 8 | 0 | $ | 0 |
Total Loans Modified(1) | Nine Months Ended September 30, 2018 | Total Loans Modified(1) | Nine Months Ended September 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reduced Interest Rate | Term Extension | Balance Reduction | Reduced Interest Rate | Term Extension | Balance Reduction | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | % of TDR Activity(2) | Average Rate Reduction | % of TDR Activity(2) | Average Term Extension (Months) | % of TDR Activity(2) | Gross Balance Reduction | (Dollars in millions) | % of TDR Activity(2) | Average Rate Reduction | % of TDR Activity(2) | Average Term Extension (Months) | % of TDR Activity(2) | Gross Balance Reduction | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Credit Card: | Credit Card: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Domestic credit card | $ | 314 | 100 | % | 15.88 | % | 0 | % | 0 | 0 | % | $ | 0 | Domestic credit card | $ | 257 | 100 | % | 16.58 | % | 0 | % | 0 | 0 | % | $ | 0 | |||||||||||||||||||||||||||||||||||||||
International card businesses | 139 | 100 | 26.87 | 0 | 0 | 0 | 0 | International card businesses | 130 | 100 | 27.25 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Total credit card | 453 | 100 | 19.25 | 0 | 0 | 0 | 0 | Total credit card | 387 | 100 | 20.18 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer Banking: | Consumer Banking: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Auto(3) | 153 | 55 | 3.91 | 87 | 8 | 1 | 1 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Home loan | 6 | 28 | 1.78 | 83 | 214 | 0 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Auto | Auto | 190 | 41 | 3.70 | 90 | 8 | 1 | 1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retail banking | 6 | 14 | 11.09 | 48 | 6 | 0 | 0 | Retail banking | 7 | 10 | 10.73 | 54 | 3 | 34 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Total consumer banking | 165 | 53 | 3.94 | 86 | 15 | 1 | 1 | Total consumer banking | 197 | 40 | 3.76 | 89 | 7 | 2 | 1 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial Banking: | Commercial Banking: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial and multifamily real estate | 41 | 0 | 0.00 | 79 | 5 | 0 | 0 | Commercial and multifamily real estate | 34 | 100 | 0.00 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | 147 | 0 | 1.19 | 47 | 14 | 0 | 0 | Commercial and industrial | 86 | 5 | 0.60 | 25 | 9 | 0 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Total commercial lending | 188 | 0 | 1.19 | 54 | 11 | 0 | 0 | Total commercial lending | 120 | 32 | 0.07 | 18 | 9 | 0 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Small-ticket commercial real estate | 3 | 0 | 0.00 | 0 | 0 | 0 | 0 | Small-ticket commercial real estate | 1 | 0 | 0.00 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Total commercial banking | 191 | 0 | 1.19 | 53 | 11 | 0 | 0 | Total commercial banking | 121 | 32 | 0.07 | 18 | 9 | 0 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 809 | 67 | 16.79 | 30 | 14 | 0 | $ | 1 | Total | $ | 705 | 72 | 16.08 | 28 | 8 | 1 | $ | 1 |
(1)Represents the recorded investment of total loans modified in TDRs at the end of the quarter in which they were modified. As not every modification type is included in the table above, the total percentage of TDR activity may not add up to 100%. Some loans may receive more than one type of concession as part of the modification. (2)Due to multiple concessions granted to some troubled borrowers, percentages may total more than 100% for certain loan types. |
Capital One Financial Corporation (COF) |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||||||
(Dollars in millions) | Number of Contracts | Amount | Number of Contracts | Amount | Number of Contracts | Amount | Number of Contracts | Amount | ||||||||||||||||||||
Credit Card: | ||||||||||||||||||||||||||||
Domestic credit card | 10,619 | $ | 22 | 13,983 | $ | 29 | 36,227 | $ | 77 | 44,528 | $ | 93 | ||||||||||||||||
International card businesses | 17,104 | 26 | 15,104 | 25 | 51,995 | 82 | 44,397 | 78 | ||||||||||||||||||||
Total credit card | 27,723 | 48 | 29,087 | 54 | 88,222 | 159 | 88,925 | 171 | ||||||||||||||||||||
Consumer Banking: | ||||||||||||||||||||||||||||
Auto | 1,446 | 18 | 1,907 | 20 | 3,863 | 47 | 5,507 | 62 | ||||||||||||||||||||
Home loan | 0 | 0 | 0 | 0 | 0 | 0 | 3 | 1 | ||||||||||||||||||||
Retail banking | 6 | 0 | 12 | 2 | 18 | 1 | 21 | 2 | ||||||||||||||||||||
Total consumer banking | 1,452 | 18 | 1,919 | 22 | 3,881 | 48 | 5,531 | 65 | ||||||||||||||||||||
Commercial Banking: | ||||||||||||||||||||||||||||
Commercial and multifamily real estate | 0 | 0 | 1 | 3 | 0 | 0 | 1 | 3 | ||||||||||||||||||||
Commercial and industrial | 0 | 0 | 5 | 34 | 0 | 0 | 18 | 79 | ||||||||||||||||||||
Total commercial lending | 0 | 0 | 6 | 37 | 0 | 0 | 19 | 82 | ||||||||||||||||||||
Total commercial banking | 0 | 0 | 6 | 37 | 0 | 0 | 19 | 82 | ||||||||||||||||||||
Total | 29,175 | $ | 66 | 31,012 | $ | 113 | 92,103 | $ | 207 | 94,475 | $ | 318 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Number of Contracts | Amount | Number of Contracts | Amount | Number of Contracts | Amount | Number of Contracts | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Credit Card: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Domestic credit card | 6,554 | $ | 14 | 10,619 | $ | 22 | 27,022 | $ | 57 | 36,227 | $ | 77 | ||||||||||||||||||||||||||||||||||||||||||||||||||
International card businesses | 10,673 | 17 | 17,104 | 26 | 46,038 | 68 | 51,995 | 82 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total credit card | 17,227 | 31 | 27,723 | 48 | 73,060 | 125 | 88,222 | 159 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer Banking: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Auto | 1,307 | 15 | 1,446 | 18 | 3,442 | 42 | 3,863 | 47 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retail banking | 3 | 1 | 6 | 0 | 7 | 1 | 18 | 1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total consumer banking | 1,310 | 16 | 1,452 | 18 | 3,449 | 43 | 3,881 | 48 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial Banking: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | 4 | 16 | 0 | 0 | 11 | 65 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total commercial banking | 4 | 16 | 0 | 0 | 11 | 65 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | 18,541 | $ | 63 | 29,175 | $ | 66 | 76,520 | $ | 233 | 92,103 | $ | 207 |
101 | Capital One Financial Corporation (COF) |
NOTE |
102 | Capital One Financial Corporation (COF) |
Three Months Ended September 30, 2019 | ||||||||||||||||
(Dollars in millions) | Credit Card | Consumer Banking | Commercial Banking | Total | ||||||||||||
Allowance for loan and lease losses: | ||||||||||||||||
Balance as of June 30, 2019 | $ | 5,342 | $ | 1,055 | $ | 736 | $ | 7,133 | ||||||||
Charge-offs | (1,531 | ) | (489 | ) | (66 | ) | (2,086 | ) | ||||||||
Recoveries(1) | 380 | 238 | 6 | 624 | ||||||||||||
Net charge-offs | (1,151 | ) | (251 | ) | (60 | ) | (1,462 | ) | ||||||||
Provision for loan and lease losses | 1,087 | 203 | 84 | 1,374 | ||||||||||||
Allowance build (release) for loan and lease losses | (64 | ) | (48 | ) | 24 | (88 | ) | |||||||||
Other changes(2) | (8 | ) | 0 | 0 | (8 | ) | ||||||||||
Balance as of September 30, 2019 | 5,270 | 1,007 | 760 | 7,037 | ||||||||||||
Reserve for unfunded lending commitments: | ||||||||||||||||
Balance as of June 30, 2019 | 0 | 4 | 140 | 144 | ||||||||||||
Provision for losses on unfunded lending commitments | 0 | 0 | 9 | 9 | ||||||||||||
Balance as of September 30, 2019 | 0 | 4 | 149 | 153 | ||||||||||||
Combined allowance and reserve as of September 30, 2019 | $ | 5,270 | $ | 1,011 | $ | 909 | $ | 7,190 |
Nine Months Ended September 30, 2019 | ||||||||||||||||
(Dollars in millions) | Credit Card | Consumer Banking | Commercial Banking | Total | ||||||||||||
Allowance for loan and lease losses: | ||||||||||||||||
Balance as of December 31, 2018 | $ | 5,535 | $ | 1,048 | $ | 637 | $ | 7,220 | ||||||||
Charge-offs | (5,024 | ) | (1,383 | ) | (109 | ) | (6,516 | ) | ||||||||
Recoveries(1) | 1,189 | 739 | 19 | 1,947 | ||||||||||||
Net charge-offs | (3,835 | ) | (644 | ) | (90 | ) | (4,569 | ) | ||||||||
Provision for loan and lease losses | 3,571 | 603 | 213 | 4,387 | ||||||||||||
Allowance build (release) for loan and lease losses | (264 | ) | (41 | ) | 123 | (182 | ) | |||||||||
Other changes(2) | (1 | ) | 0 | 0 | (1 | ) | ||||||||||
Balance as of September 30, 2019 | 5,270 | 1,007 | 760 | 7,037 | ||||||||||||
Reserve for unfunded lending commitments: | ||||||||||||||||
Balance as of December 31, 2018 | 0 | 4 | 118 | 122 | ||||||||||||
Provision for losses on unfunded lending commitments | 0 | 0 | 31 | 31 | ||||||||||||
Balance as of September 30, 2019 | 0 | 4 | 149 | 153 | ||||||||||||
Combined allowance and reserve as of September 30, 2019 | $ | 5,270 | $ | 1,011 | $ | 909 | $ | 7,190 |
Three Months Ended September 30, 2020 | ||||||||||||||||||||||||||||||||
(Dollars in millions) | Credit Card | Consumer Banking | Commercial Banking | Total | ||||||||||||||||||||||||||||
Allowance for credit losses: | ||||||||||||||||||||||||||||||||
Balance as of June 30, 2020 | $ | 12,091 | $ | 2,838 | $ | 1,903 | $ | 16,832 | ||||||||||||||||||||||||
Charge-offs | (1,296) | (295) | (88) | (1,679) | ||||||||||||||||||||||||||||
Recoveries(1) | 353 | 247 | 6 | 606 | ||||||||||||||||||||||||||||
Net charge-offs | (943) | (48) | (82) | (1,073) | ||||||||||||||||||||||||||||
Provision (benefit) for credit losses | 450 | (43) | (51) | 356 | ||||||||||||||||||||||||||||
Allowance release for credit losses(2) | (493) | (91) | (133) | (717) | ||||||||||||||||||||||||||||
Other changes(3) | 14 | 0 | 0 | 14 | ||||||||||||||||||||||||||||
Balance as of September 30, 2020 | 11,612 | 2,747 | 1,770 | 16,129 | ||||||||||||||||||||||||||||
Reserve for unfunded lending commitments: | ||||||||||||||||||||||||||||||||
Balance as of June 30, 2020 | 0 | 0 | 218 | 218 | ||||||||||||||||||||||||||||
Benefit for losses on unfunded lending commitments | 0 | 0 | (23) | (23) | ||||||||||||||||||||||||||||
Balance as of September 30, 2020 | 0 | 0 | 195 | 195 | ||||||||||||||||||||||||||||
Combined allowance and reserve as of September 30, 2020 | $ | 11,612 | $ | 2,747 | $ | 1,965 | $ | 16,324 |
Nine Months Ended September 30, 2020 | ||||||||||||||||||||||||||||||||
(Dollars in millions) | Credit Card | Consumer Banking | Commercial Banking | Total | ||||||||||||||||||||||||||||
Allowance for credit losses: | ||||||||||||||||||||||||||||||||
Balance as of December 31, 2019 | $ | 5,395 | $ | 1,038 | $ | 775 | $ | 7,208 | ||||||||||||||||||||||||
Cumulative effects from adoption of the CECL standard | 2,241 | 502 | 102 | 2,845 | ||||||||||||||||||||||||||||
Finance charge and fee reserve reclassification(4) | 462 | 0 | 0 | 462 | ||||||||||||||||||||||||||||
Balance as of January 1, 2020 | 8,098 | 1,540 | 877 | 10,515 | ||||||||||||||||||||||||||||
Charge-offs | (4,757) | (1,207) | (303) | (6,267) | ||||||||||||||||||||||||||||
Recoveries(1) | 1,167 | 721 | 10 | 1,898 | ||||||||||||||||||||||||||||
Net charge-offs | (3,590) | (486) | (293) | (4,369) | ||||||||||||||||||||||||||||
Provision for credit losses | 7,096 | 1,693 | 1,186 | 9,975 | ||||||||||||||||||||||||||||
Allowance build for credit losses(2) | 3,506 | 1,207 | 893 | 5,606 | ||||||||||||||||||||||||||||
Other changes(3) | 8 | 0 | 0 | 8 | ||||||||||||||||||||||||||||
Balance as of September 30, 2020 | 11,612 | 2,747 | 1,770 | 16,129 | ||||||||||||||||||||||||||||
Reserve for unfunded lending commitments: | ||||||||||||||||||||||||||||||||
Balance as of December 31, 2019 | 0 | 5 | 130 | 135 | ||||||||||||||||||||||||||||
Cumulative effects from adoption of the CECL standard | 0 | (5) | 42 | 37 | ||||||||||||||||||||||||||||
Balance as of January 1, 2020 | 0 | 0 | 172 | 172 | ||||||||||||||||||||||||||||
Provision for losses on unfunded lending commitments | 0 | 0 | 23 | 23 | ||||||||||||||||||||||||||||
Balance as of September 30, 2020 | 0 | 0 | 195 | 195 | ||||||||||||||||||||||||||||
Combined allowance and reserve as of September 30, 2020 | $ | 11,612 | $ | 2,747 | $ | 1,965 | $ | 16,324 |
Capital One Financial Corporation (COF) |
Three Months Ended September 30, 2019 | ||||||||||||||||||||||||||||||||
(Dollars in millions) | Credit Card | Consumer Banking | Commercial Banking | Total | ||||||||||||||||||||||||||||
Allowance for loan and lease losses: | ||||||||||||||||||||||||||||||||
Balance as of June 30, 2019 | $ | 5,342 | $ | 1,055 | $ | 736 | $ | 7,133 | ||||||||||||||||||||||||
Charge-offs | (1,531) | (489) | (66) | (2,086) | ||||||||||||||||||||||||||||
Recoveries(1) | 380 | 238 | 6 | 624 | ||||||||||||||||||||||||||||
Net charge-offs | (1,151) | (251) | (60) | (1,462) | ||||||||||||||||||||||||||||
Provision for loan and lease losses | 1,087 | 203 | 84 | 1,374 | ||||||||||||||||||||||||||||
Allowance build (release) for loan and lease losses | (64) | (48) | 24 | (88) | ||||||||||||||||||||||||||||
Other changes(3) | (8) | 0 | 0 | (8) | ||||||||||||||||||||||||||||
Balance as of September 30, 2019 | 5,270 | 1,007 | 760 | 7,037 | ||||||||||||||||||||||||||||
Reserve for unfunded lending commitments: | ||||||||||||||||||||||||||||||||
Balance as of June 30, 2019 | 0 | 4 | 140 | 144 | ||||||||||||||||||||||||||||
Provision for losses on unfunded lending commitments | 0 | 0 | 9 | 9 | ||||||||||||||||||||||||||||
Balance as of September 30, 2019 | 0 | 4 | 149 | 153 | ||||||||||||||||||||||||||||
Combined allowance and reserve as of September 30, 2019 | $ | 5,270 | $ | 1,011 | $ | 909 | $ | 7,190 |
Three Months Ended September 30, 2018 | ||||||||||||||||||||
(Dollars in millions) | Credit Card | Consumer Banking | Commercial Banking | Other | Total | |||||||||||||||
Allowance for loan and lease losses: | ||||||||||||||||||||
Balance as of June 30, 2018 | $ | 5,624 | $ | 1,120 | $ | 624 | $ | 0 | $ | 7,368 | ||||||||||
Charge-offs | (1,528 | ) | (469 | ) | (48 | ) | 1 | (2,044 | ) | |||||||||||
Recoveries(1) | 391 | 207 | 21 | 0 | 619 | |||||||||||||||
Net charge-offs | (1,137 | ) | (262 | ) | (27 | ) | 1 | (1,425 | ) | |||||||||||
Provision (benefit) for loan and lease losses | 1,031 | 185 | 60 | (1 | ) | 1,275 | ||||||||||||||
Allowance build (release) for loan and lease losses | (106 | ) | (77 | ) | 33 | 0 | (150 | ) | ||||||||||||
Other changes(2) | 2 | 0 | (1 | ) | 0 | 1 | ||||||||||||||
Balance as of September 30, 2018 | 5,520 | 1,043 | 656 | 0 | 7,219 | |||||||||||||||
Reserve for unfunded lending commitments: | ||||||||||||||||||||
Balance as of June 30, 2018 | 0 | 5 | 112 | 0 | 117 | |||||||||||||||
Benefit for losses on unfunded lending commitments | 0 | (1 | ) | (6 | ) | 0 | (7 | ) | ||||||||||||
Balance as of September 30, 2018 | 0 | 4 | 106 | 0 | 110 | |||||||||||||||
Combined allowance and reserve as of September 30, 2018 | $ | 5,520 | $ | 1,047 | $ | 762 | $ | 0 | $ | 7,329 |
Nine Months Ended September 30, 2018 | ||||||||||||||||||||
(Dollars in millions) | Credit Card | Consumer Banking(3) | Commercial Banking | Other(3) | Total | |||||||||||||||
Allowance for loan and lease losses: | ||||||||||||||||||||
Balance as of December 31, 2017 | $ | 5,648 | $ | 1,242 | $ | 611 | $ | 1 | $ | 7,502 | ||||||||||
Charge-offs | (5,032 | ) | (1,314 | ) | (76 | ) | (7 | ) | (6,429 | ) | ||||||||||
Recoveries(1) | 1,258 | 631 | 37 | 1 | 1,927 | |||||||||||||||
Net charge-offs | (3,774 | ) | (683 | ) | (39 | ) | (6 | ) | (4,502 | ) | ||||||||||
Provision (benefit) for loan and lease losses | 3,658 | 538 | 85 | (49 | ) | 4,232 | ||||||||||||||
Allowance build (release) for loan and lease losses | (116 | ) | (145 | ) | 46 | (55 | ) | (270 | ) | |||||||||||
Other changes(2)(3) | (12 | ) | (54 | ) | (1 | ) | 54 | (13 | ) | |||||||||||
Balance as of September 30, 2018 | 5,520 | 1,043 | 656 | 0 | 7,219 | |||||||||||||||
Reserve for unfunded lending commitments: | ||||||||||||||||||||
Balance as of December 31, 2017 | 0 | 7 | 117 | 0 | 124 | |||||||||||||||
Benefit for losses on unfunded lending commitments | 0 | (3 | ) | (11 | ) | 0 | (14 | ) | ||||||||||||
Balance as of September 30, 2018 | 0 | 4 | 106 | 0 | 110 | |||||||||||||||
Combined allowance and reserve as of September 30, 2018 | $ | 5,520 | $ | 1,047 | $ | 762 | $ | 0 | $ | 7,329 |
Nine Months Ended September 30, 2019 | ||||||||||||||||||||||||||||||||
(Dollars in millions) | Credit Card | Consumer Banking | Commercial Banking | Total | ||||||||||||||||||||||||||||
Allowance for loan and lease losses: | ||||||||||||||||||||||||||||||||
Balance as of December 31, 2018 | $ | 5,535 | $ | 1,048 | $ | 637 | $ | 7,220 | ||||||||||||||||||||||||
Charge-offs | (5,024) | (1,383) | (109) | (6,516) | ||||||||||||||||||||||||||||
Recoveries(1) | 1,189 | 739 | 19 | 1,947 | ||||||||||||||||||||||||||||
Net charge-offs | (3,835) | (644) | (90) | (4,569) | ||||||||||||||||||||||||||||
Provision for loan and lease losses | 3,571 | 603 | 213 | 4,387 | ||||||||||||||||||||||||||||
Allowance build (release) for loan and lease losses | (264) | (41) | 123 | (182) | ||||||||||||||||||||||||||||
Other changes(3) | (1) | 0 | 0 | (1) | ||||||||||||||||||||||||||||
Balance as of September 30, 2019 | 5,270 | 1,007 | 760 | 7,037 | ||||||||||||||||||||||||||||
Reserve for unfunded lending commitments: | ||||||||||||||||||||||||||||||||
Balance as of December 31, 2018 | 0 | 4 | 118 | 122 | ||||||||||||||||||||||||||||
Provision for losses on unfunded lending commitments | 0 | 0 | 31 | 31 | ||||||||||||||||||||||||||||
Balance as of September 30, 2019 | 0 | 4 | 149 | 153 | ||||||||||||||||||||||||||||
Combined allowance and reserve as of September 30, 2019 | $ | 5,270 | $ | 1,011 | $ | 909 | $ | 7,190 |
(2)Includes an allowance release of $327 million for a partnership credit card loan portfolio transferred to held for sale in the third quarter of 2020. (3)Represents foreign currency translation adjustments. (4)Concurrent with our adoption of the CECL standard in the first quarter of 2020, we reclassified our finance charge and fee reserve to our allowance for credit losses, with a corresponding increase to credit card loans held for investment. |
Capital One Financial Corporation (COF) |
September 30, 2019 | ||||||||||||||||
(Dollars in millions) | Credit Card | Consumer Banking | Commercial Banking | Total | ||||||||||||
Allowance for loan and lease losses: | ||||||||||||||||
Collectively evaluated | $ | 5,073 | $ | 975 | $ | 662 | $ | 6,710 | ||||||||
Asset-specific | 197 | 32 | 98 | 327 | ||||||||||||
Total allowance for loan and lease losses | $ | 5,270 | $ | 1,007 | $ | 760 | $ | 7,037 | ||||||||
Loans held for investment: | ||||||||||||||||
Collectively evaluated | $ | 112,866 | $ | 61,631 | $ | 72,902 | $ | 247,399 | ||||||||
Asset-specific | 815 | 382 | 726 | 1,923 | ||||||||||||
PCI loans | 0 | 2 | 31 | 33 | ||||||||||||
Total loans held for investment | $ | 113,681 | $ | 62,015 | $ | 73,659 | $ | 249,355 | ||||||||
Allowance coverage ratio(1) | 4.64 | % | 1.62 | % | 1.03 | % | 2.82 | % |
December 31, 2018 | ||||||||||||||||
(Dollars in millions) | Credit Card | Consumer Banking | Commercial Banking | Total | ||||||||||||
Allowance for loan and lease losses: | ||||||||||||||||
Collectively evaluated | $ | 5,258 | $ | 1,021 | $ | 603 | $ | 6,882 | ||||||||
Asset-specific | 277 | 27 | 34 | 338 | ||||||||||||
Total allowance for loan and lease losses | $ | 5,535 | $ | 1,048 | $ | 637 | $ | 7,220 | ||||||||
Loans held for investment: | ||||||||||||||||
Collectively evaluated | $ | 115,505 | $ | 58,808 | $ | 69,607 | $ | 243,920 | ||||||||
Asset-specific | 855 | 393 | 596 | 1,844 | ||||||||||||
PCI loans | 1 | 4 | 130 | 135 | ||||||||||||
Total loans held for investment | $ | 116,361 | $ | 59,205 | $ | 70,333 | $ | 245,899 | ||||||||
Allowance coverage ratio(1) | 4.76 | % | 1.77 | % | 0.91 | % | 2.94 | % |
Three Months Ended September 30, | Three Months Ended September 30, | |||||||||||||||||||||||||||
(Dollars in millions) | 2019 | 2018 | (Dollars in millions) | 2020 | 2019 | |||||||||||||||||||||||
Estimated reimbursements from partners, beginning of period | $ | 414 | $ | 392 | Estimated reimbursements from partners, beginning of period | $ | 2,433 | $ | 414 | |||||||||||||||||||
Amounts due from partners which reduced net charge-offs | (100 | ) | (97 | ) | Amounts due from partners which reduced net charge-offs | (212) | (100) | |||||||||||||||||||||
Amounts estimated to be charged to partners which reduced provision for credit losses | 86 | 81 | Amounts estimated to be charged to partners which reduced provision for credit losses | 121 | 86 | |||||||||||||||||||||||
Estimated reimbursements from partners, end of period | $ | 400 | $ | 376 | Estimated reimbursements from partners, end of period | $ | 2,342 | $ | 400 |
Nine Months Ended September 30, | ||||||||
(Dollars in millions) | 2019 | 2018 | ||||||
Estimated reimbursements from partners, beginning of period | $ | 379 | $ | 380 | ||||
Amounts due from partners which reduced net charge-offs | (313 | ) | (286 | ) | ||||
Amounts estimated to be charged to partners which reduced provision for credit losses | 334 | 282 | ||||||
Estimated reimbursements from partners, end of period | $ | 400 | $ | 376 |
Nine Months Ended September 30, | ||||||||||||||||||||
(Dollars in millions) | 2020 | 2019 | ||||||||||||||||||
Estimated reimbursements from partners, beginning of period(1) | $ | 2,166 | $ | 379 | ||||||||||||||||
Amounts due from partners which reduced net charge-offs | (807) | (313) | ||||||||||||||||||
Amounts estimated to be charged to partners which reduced provision for credit losses | 983 | 334 | ||||||||||||||||||
Estimated reimbursements from partners, end of period | $ | 2,342 | $ | 400 |
105 | Capital One Financial Corporation (COF) |
NOTE |
September 30, 2019 | ||||||||||||||||||||
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) | $ | 30,521 | $ | 16,896 | $ | 0 | $ | 0 | $ | 0 | ||||||||||
Auto loan securitizations | 2,570 | 2,275 | 0 | 0 | 0 | |||||||||||||||
Home loan securitizations | 0 | 0 | 66 | 0 | 367 | |||||||||||||||
Total securitization-related VIEs | 33,091 | 19,171 | 66 | 0 | 367 | |||||||||||||||
Other VIEs:(2) | ||||||||||||||||||||
Affordable housing entities | 236 | 1 | 4,439 | 1,206 | 4,439 | |||||||||||||||
Entities that provide capital to low-income and rural communities | 1,817 | 69 | 0 | 0 | 0 | |||||||||||||||
Other | 0 | 0 | 512 | 0 | 512 | |||||||||||||||
Total other VIEs | 2,053 | 70 | 4,951 | 1,206 | 4,951 | |||||||||||||||
Total VIEs | $ | 35,144 | $ | 19,241 | $ | 5,017 | $ | 1,206 | $ | 5,318 |
September 30, 2020 | ||||||||||||||||||||||||||||||||
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) | $ | 26,586 | $ | 11,218 | $ | 0 | $ | 0 | $ | 0 | ||||||||||||||||||||||
Auto loan securitizations | 2,671 | 2,344 | 0 | 0 | 0 | |||||||||||||||||||||||||||
Home loan securitizations | 0 | 0 | 56 | 0 | 313 | |||||||||||||||||||||||||||
Total securitization-related VIEs | 29,257 | 13,562 | 56 | 0 | 313 | |||||||||||||||||||||||||||
Other VIEs:(2) | ||||||||||||||||||||||||||||||||
Affordable housing entities | 243 | 18 | 4,582 | 1,281 | 4,582 | |||||||||||||||||||||||||||
Entities that provide capital to low-income and rural communities | 2,014 | 69 | 0 | 0 | 0 | |||||||||||||||||||||||||||
Other | 0 | 0 | 466 | 0 | 466 | |||||||||||||||||||||||||||
Total other VIEs | 2,257 | 87 | 5,048 | 1,281 | 5,048 | |||||||||||||||||||||||||||
Total VIEs | $ | 31,514 | $ | 13,649 | $ | 5,104 | $ | 1,281 | $ | 5,361 |
Capital One Financial Corporation (COF) |
December 31, 2019 | ||||||||||||||||||||||||||||||||
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) | $ | 31,112 | $ | 16,113 | $ | 0 | $ | 0 | $ | 0 | ||||||||||||||||||||||
Auto loan securitizations | 2,282 | 2,012 | 0 | 0 | 0 | |||||||||||||||||||||||||||
Home loan securitizations | 0 | 0 | 66 | 0 | 352 | |||||||||||||||||||||||||||
Total securitization-related VIEs | 33,394 | 18,125 | 66 | 0 | 352 | |||||||||||||||||||||||||||
Other VIEs:(2) | ||||||||||||||||||||||||||||||||
Affordable housing entities | 236 | 7 | 4,559 | 1,289 | 4,559 | |||||||||||||||||||||||||||
Entities that provide capital to low-income and rural communities | 1,889 | 69 | 0 | 0 | 0 | |||||||||||||||||||||||||||
Other | 0 | 0 | 502 | 0 | 502 | |||||||||||||||||||||||||||
Total other VIEs | 2,125 | 76 | 5,061 | 1,289 | 5,061 | |||||||||||||||||||||||||||
Total VIEs | $ | 35,519 | $ | 18,201 | $ | 5,127 | $ | 1,289 | $ | 5,413 |
December 31, 2018 | ||||||||||||||||||||
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) | $ | 33,574 | $ | 18,885 | $ | 0 | $ | 0 | $ | 0 | ||||||||||
Home loan securitizations | 0 | 0 | 211 | 74 | 554 | |||||||||||||||
Total securitization-related VIEs | 33,574 | 18,885 | 211 | 74 | 554 | |||||||||||||||
Other VIEs:(2) | ||||||||||||||||||||
Affordable housing entities | 243 | 17 | 4,238 | 1,303 | 4,238 | |||||||||||||||
Entities that provide capital to low-income and rural communities | 1,739 | 117 | 0 | 0 | 0 | |||||||||||||||
Other | 0 | 0 | 353 | 0 | 353 | |||||||||||||||
Total other VIEs | 1,982 | 134 | 4,591 | 1,303 | 4,591 | |||||||||||||||
Total VIEs | $ | 35,556 | $ | 19,019 | $ | 4,802 | $ | 1,377 | $ | 5,145 |
(2)In certain investment structures, we consolidate a VIE which in turn holds as its primary asset an investment in an unconsolidated VIE. In these instances, we disclose the carrying amount of assets and liabilities on our consolidated balance sheets as unconsolidated VIEs to avoid duplicating our exposure, as the unconsolidated VIEs are generally the operating entities generating the exposure. The carrying amount of assets and liabilities included in the unconsolidated VIE columns above related to these investment structures were $2.3 billion of assets and $631 million of liabilities as of September 30, 2020, and $2.3 billion of assets and $741 million of liabilities as of December 31, 2019. |
Capital One Financial Corporation (COF) |
(Dollars in millions) | Credit Card | Auto | Mortgages | (Dollars in millions) | Credit Card | Auto | Mortgages | |||||||||||||||||||||||||
September 30, 2019: | ||||||||||||||||||||||||||||||||
September 30, 2020: | September 30, 2020: | |||||||||||||||||||||||||||||||
Securities held by third-party investors | $ | 16,637 | $ | 2,273 | $ | 1,017 | Securities held by third-party investors | $ | 11,224 | $ | 2,342 | $ | 832 | |||||||||||||||||||
Receivables in the trust | 31,039 | 2,424 | 1,034 | Receivables in the trust | 27,797 | 2,548 | 838 | |||||||||||||||||||||||||
Cash balance of spread or reserve accounts | 0 | 7 | 17 | Cash balance of spread or reserve accounts | 0 | 10 | 15 | |||||||||||||||||||||||||
Retained interests | Yes | Yes | Yes | Retained interests | Yes | Yes | Yes | |||||||||||||||||||||||||
Servicing retained | Yes | Yes | No | Servicing retained | Yes | Yes | No | |||||||||||||||||||||||||
December 31, 2018: | ||||||||||||||||||||||||||||||||
December 31, 2019: | December 31, 2019: | |||||||||||||||||||||||||||||||
Securities held by third-party investors | $ | 18,307 | N/A | $ | 1,276 | Securities held by third-party investors | $ | 15,798 | $ | 2,010 | $ | 962 | ||||||||||||||||||||
Receivables in the trust | 34,197 | N/A | 1,305 | Receivables in the trust | 31,625 | 2,192 | 978 | |||||||||||||||||||||||||
Cash balance of spread or reserve accounts | 0 | N/A | 116 | Cash balance of spread or reserve accounts | 0 | 7 | 17 | |||||||||||||||||||||||||
Retained interests | Yes | N/A | Yes | Retained interests | Yes | Yes | Yes | |||||||||||||||||||||||||
Servicing retained | Yes | N/A | Yes(1) | Servicing retained | Yes | Yes | No |
108 | Capital One Financial Corporation (COF) |
109 | Capital One Financial Corporation (COF) |
NOTE |
September 30, 2020 | ||||||||||||||||||||||||||
(Dollars in millions) | Carrying Amount of Assets | Accumulated Amortization | Net Carrying Amount | |||||||||||||||||||||||
Goodwill | $ | 14,648 | N/A | $ | 14,648 | |||||||||||||||||||||
Intangible assets: | ||||||||||||||||||||||||||
Purchased credit card relationship (“PCCR”) intangibles | 157 | $ | (145) | 12 | ||||||||||||||||||||||
Other(1) | 249 | (162) | 87 | |||||||||||||||||||||||
Total intangible assets | 406 | (307) | 99 | |||||||||||||||||||||||
Total goodwill and intangible assets | $ | 15,054 | $ | (307) | $ | 14,747 | ||||||||||||||||||||
Commercial MSRs(2) | $ | 503 | $ | (177) | $ | 326 | ||||||||||||||||||||
December 31, 2019 | ||||||||||||||||||||||||||
(Dollars in millions) | Carrying Amount of Assets | Accumulated Amortization | Net Carrying Amount | |||||||||||||||||||||||
Goodwill | $ | 14,653 | N/A | $ | 14,653 | |||||||||||||||||||||
Intangible assets: | ||||||||||||||||||||||||||
PCCR intangibles | 1,932 | $ | (1,864) | 68 | ||||||||||||||||||||||
Other(1) | 246 | (140) | 106 | |||||||||||||||||||||||
Total intangible assets | 2,178 | (2,004) | 174 | |||||||||||||||||||||||
Total goodwill and intangible assets | $ | 16,831 | $ | (2,004) | $ | 14,827 | ||||||||||||||||||||
Commercial MSRs(2) | $ | 555 | $ | (255) | $ | 300 |
September 30, 2019 | ||||||||||||
(Dollars in millions) | Carrying Amount of Assets | Accumulated Amortization | Net Carrying Amount | |||||||||
Goodwill | $ | 14,624 | N/A | $ | 14,624 | |||||||
Intangible assets: | ||||||||||||
Purchased credit card relationship (“PCCR”) intangibles | 1,932 | $ | (1,844 | ) | 88 | |||||||
Other(1) | 225 | (132 | ) | 93 | ||||||||
Total intangible assets | 2,157 | (1,976 | ) | 181 | ||||||||
Total goodwill and intangible assets | $ | 16,781 | $ | (1,976 | ) | $ | 14,805 | |||||
Commercial MSRs(2) | $ | 528 | $ | (237 | ) | $ | 291 | |||||
December 31, 2018 | ||||||||||||
(Dollars in millions) | Carrying Amount of Assets | Accumulated Amortization | Net Carrying Amount | |||||||||
Goodwill | $ | 14,544 | N/A | $ | 14,544 | |||||||
Intangible assets: | ||||||||||||
PCCR intangibles | 2,102 | $ | (1,952 | ) | 150 | |||||||
Core deposit intangibles | 1,149 | (1,148 | ) | 1 | ||||||||
Other(1) | 271 | (168 | ) | 103 | ||||||||
Total intangible assets | 3,522 | (3,268 | ) | 254 | ||||||||
Total goodwill and intangible assets | $ | 18,066 | $ | (3,268 | ) | $ | 14,798 | |||||
Commercial MSRs(2) | $ | 459 | $ | (185 | ) | $ | 274 |
(2)Commercial MSRs are accounted for under the amortization method on our consolidated balance sheets. |
(Dollars in millions) | Credit Card | Consumer Banking | Commercial Banking | Total | ||||||||||||||||||||||
Balance as of December 31, 2019 | $ | 5,088 | $ | 4,645 | $ | 4,920 | $ | 14,653 | ||||||||||||||||||
Other adjustments(1) | (5) | 0 | 0 | (5) | ||||||||||||||||||||||
Balance as of September 30, 2020 | $ | 5,083 | $ | 4,645 | $ | 4,920 | $ | 14,648 |
(Dollars in millions) | Credit Card | Consumer Banking | Commercial Banking | Total | ||||||||||||
Balance as of December 31, 2018 | $ | 5,060 | $ | 4,600 | $ | 4,884 | $ | 14,544 | ||||||||
Acquisitions | 2 | 45 | 36 | 83 | ||||||||||||
Reductions in goodwill related to divestitures | 0 | (1 | ) | 0 | (1 | ) | ||||||||||
Other adjustments(1) | (2 | ) | 0 | 0 | (2 | ) | ||||||||||
Balance as of September 30, 2019 | $ | 5,060 | $ | 4,644 | $ | 4,920 | $ | 14,624 |
110 | Capital One Financial Corporation (COF) |
NOTE |
(Dollars in millions) | September 30, 2019 | December 31, 2018 | (Dollars in millions) | September 30, 2020 | December 31, 2019 | |||||||||||||||||
Deposits: | Deposits: | |||||||||||||||||||||
Non-interest-bearing deposits | $ | 23,064 | $ | 23,483 | Non-interest-bearing deposits | $ | 29,633 | $ | 23,488 | |||||||||||||
Interest-bearing deposits(1) | 234,084 | 226,281 | Interest-bearing deposits(1) | 276,092 | 239,209 | |||||||||||||||||
Total deposits | $ | 257,148 | $ | 249,764 | Total deposits | $ | 305,725 | $ | 262,697 | |||||||||||||
Short-term borrowings: | Short-term borrowings: | |||||||||||||||||||||
Federal funds purchased and securities loaned or sold under agreements to repurchase | $ | 464 | $ | 352 | Federal funds purchased and securities loaned or sold under agreements to repurchase | $ | 702 | $ | 314 | |||||||||||||
FHLB advances | 0 | 9,050 | FHLB advances | 0 | 7,000 | |||||||||||||||||
Total short-term borrowings | $ | 464 | $ | 9,402 | Total short-term borrowings | $ | 702 | $ | 7,314 |
September 30, 2020 | December 31, 2019 | |||||||||||||||||||||||||||||||
(Dollars in millions) | Maturity Dates | Stated Interest Rates | Weighted-Average Interest Rate | Carrying Value | Carrying Value | |||||||||||||||||||||||||||
Long-term debt: | ||||||||||||||||||||||||||||||||
Securitized debt obligations | 2020-2026 | 0.50% - 3.01% | 1.90 | % | $ | 13,566 | $ | 17,808 | ||||||||||||||||||||||||
Senior and subordinated notes: | ||||||||||||||||||||||||||||||||
Fixed unsecured senior debt(2) | 2020-2029 | 0.80 - 4.75 | 3.19 | 21,685 | 23,302 | |||||||||||||||||||||||||||
Floating unsecured senior debt | 2020-2023 | 0.70 - 1.42 | 1.03 | 2,008 | 2,695 | |||||||||||||||||||||||||||
Total unsecured senior debt | 3.01 | 23,693 | 25,997 | |||||||||||||||||||||||||||||
Fixed unsecured subordinated debt | 2023-2026 | 3.38 - 4.20 | 3.78 | 4,755 | 4,475 | |||||||||||||||||||||||||||
Total senior and subordinated notes | 28,448 | 30,472 | ||||||||||||||||||||||||||||||
Other long-term borrowings: | ||||||||||||||||||||||||||||||||
Finance lease liabilities | 2020-2031 | 1.63 - 9.91 | 3.77 | 79 | 103 | |||||||||||||||||||||||||||
Total other long-term borrowings | 79 | 103 | ||||||||||||||||||||||||||||||
Total long-term debt | $ | 42,093 | $ | 48,383 | ||||||||||||||||||||||||||||
Total short-term borrowings and long-term debt | $ | 42,795 | $ | 55,697 |
September 30, 2019 | December 31, 2018 | ||||||||||||||||
(Dollars in millions) | Maturity Dates | Stated Interest Rates | Weighted- Average Interest Rate | Carrying Value | Carrying Value | ||||||||||||
Long-term debt: | |||||||||||||||||
Securitized debt obligations | 2019-2026 | 1.66% - 3.01% | 2.25 | % | $ | 18,910 | $ | 18,307 | |||||||||
Senior and subordinated notes: | |||||||||||||||||
Fixed unsecured senior debt(2) | 2020-2028 | 0.80 - 4.75 | 3.08 | 23,457 | 23,290 | ||||||||||||
Floating unsecured senior debt | 2020-2023 | 2.59 - 3.42 | 2.99 | 2,695 | 2,993 | ||||||||||||
Total unsecured senior debt | 3.07 | 26,152 | 26,283 | ||||||||||||||
Fixed unsecured subordinated debt | 2023-2026 | 3.38 - 4.20 | 3.78 | 4,530 | 4,543 | ||||||||||||
Total senior and subordinated notes | 30,682 | 30,826 | |||||||||||||||
Other long-term borrowings: | |||||||||||||||||
FHLB advances | — | — | — | 0 | 251 | ||||||||||||
Other borrowings | 2019-2035 | 2.24 - 12.86 | 4.20 | 93 | 119 | ||||||||||||
Total other long-term borrowings | 93 | 370 | |||||||||||||||
Total long-term debt | $ | 49,685 | $ | 49,503 | |||||||||||||
Total short-term borrowings and long-term debt | $ | 50,149 | $ | 58,905 |
(2)Includes $1.5 billion and $1.4 billion of EUR-denominated unsecured notes as of September 30, 2020andDecember 31, 2019, respectively. |
111 | Capital One Financial Corporation (COF) |
NOTE |
•Fair Value Hedges: We designate derivatives as fair value hedges when they are used 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 presented in the same line item in our consolidated statements of income as the earnings effect of the hedged items. Our fair value hedges primarily consist of interest rate swaps that are intended to modify our exposure to interest rate risk on various fixed-rate financial assets and liabilities. •Cash Flow Hedges: We designate derivatives as cash flow hedges when they are used 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. Those amounts are reclassified into earnings in the same period during which the forecasted transactions impact earnings and presented in the same line item in our consolidated statements of income as the earnings effect of the hedged items. Our cash flow hedges use interest rate swaps and floors that are intended to hedge the variability in interest receipts or interest payments on some of our variable-rate financial assets or liabilities. We also enter into foreign currency forward contracts to hedge our exposure to variability in cash flows related to intercompany borrowings denominated in foreign currencies. •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. We execute net investment hedges using foreign currency forward contracts to hedge the translation exposure of the net investment in our foreign operations under the forward method. • |
Free-Standing Derivatives: Our free-standing derivatives primarily consist of our customer accommodation derivatives and other economic hedges. The customer accommodation derivatives and the related offsetting contracts are mainly interest rate, commodity and foreign currency contracts. The other free-standing derivatives are primarily used to economically hedge the risk of changes in the fair value of our commercial mortgage loan origination and purchase commitments as well as other interests held. Changes in the fair value of free-standing derivatives are recorded in earnings as a component of other non-interest income. |
Capital One Financial Corporation (COF) |
•CCPs: We clear eligible OTC derivatives with CCPs as part of our regulatory requirements. Futures commission merchants (“FCMs”) serve as •Bilateral Counterparties: We enter into legally enforceable master netting agreements and collateral agreements, where possible, with bilateral derivative counterparties to mitigate the risk of default. We review our collateral positions on a daily basis and exchange collateral with our counterparties in accordance with these agreements. These bilateral agreements typically provide the right to offset exposure with the same counterparty and require the party in a net liability position to post collateral. Agreements with certain bilateral counterparties require both parties to maintain collateral in the event the fair values of derivative instruments exceed established exposure thresholds. Certain of these bilateral agreements include provisions requiring that our debt maintain a credit rating of investment grade or above by each of the major credit rating agencies. In the event of a downgrade of our debt credit rating below investment grade, some of our counterparties would have the right to terminate their derivative contract and close out existing positions. |
Capital One Financial Corporation (COF) |
September 30, 2020 | December 31, 2019 | |||||||||||||||||||||||||||||||||||||
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 | $ | 49,703 | $ | 4 | $ | 17 | $ | 57,587 | $ | 11 | $ | 55 | ||||||||||||||||||||||||||
Cash flow hedges | 82,650 | 847 | 9 | 96,900 | 321 | 29 | ||||||||||||||||||||||||||||||||
Total interest rate contracts | 132,353 | 851 | 26 | 154,487 | 332 | 84 | ||||||||||||||||||||||||||||||||
Foreign exchange contracts: | ||||||||||||||||||||||||||||||||||||||
Fair value hedges | 1,465 | 90 | 0 | 1,402 | 0 | 6 | ||||||||||||||||||||||||||||||||
Cash flow hedges | 4,495 | 13 | 99 | 6,103 | 0 | 113 | ||||||||||||||||||||||||||||||||
Net investment hedges | 2,817 | 3 | 76 | 2,829 | 0 | 102 | ||||||||||||||||||||||||||||||||
Total foreign exchange contracts | 8,777 | 106 | 175 | 10,334 | 0 | 221 | ||||||||||||||||||||||||||||||||
Total derivatives designated as accounting hedges | 141,130 | 957 | 201 | 164,821 | 332 | 305 | ||||||||||||||||||||||||||||||||
Derivatives not designated as accounting hedges: | ||||||||||||||||||||||||||||||||||||||
Customer accommodation: | ||||||||||||||||||||||||||||||||||||||
Interest rate contracts | 68,343 | 1,623 | 198 | 62,268 | 552 | 117 | ||||||||||||||||||||||||||||||||
Commodity contracts | 17,388 | 1,379 | 1,219 | 15,492 | 758 | 694 | ||||||||||||||||||||||||||||||||
Foreign exchange and other contracts | 3,677 | 47 | 50 | 4,674 | 39 | 42 | ||||||||||||||||||||||||||||||||
Total customer accommodation | 89,408 | 3,049 | 1,467 | 82,434 | 1,349 | 853 | ||||||||||||||||||||||||||||||||
Other interest rate exposures(2) | 7,300 | 90 | 66 | 6,729 | 48 | 30 | ||||||||||||||||||||||||||||||||
Other contracts | 2,667 | 5 | 5 | 1,562 | 0 | 9 | ||||||||||||||||||||||||||||||||
Total derivatives not designated as accounting hedges | 99,375 | 3,144 | 1,538 | 90,725 | 1,397 | 892 | ||||||||||||||||||||||||||||||||
Total derivatives | $ | 240,505 | $ | 4,101 | $ | 1,739 | $ | 255,546 | $ | 1,729 | $ | 1,197 | ||||||||||||||||||||||||||
Less: netting adjustment(3) | (1,622) | (708) | (633) | (523) | ||||||||||||||||||||||||||||||||||
Total derivative assets/liabilities | $ | 2,479 | $ | 1,031 | $ | 1,096 | $ | 674 |
September 30, 2019 | December 31, 2018 | |||||||||||||||||||||||
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 | $ | 59,208 | $ | 9 | $ | 34 | $ | 53,413 | $ | 64 | $ | 28 | ||||||||||||
Cash flow hedges | 90,451 | 433 | 10 | 81,200 | 83 | 70 | ||||||||||||||||||
Total interest rate contracts | 149,659 | 442 | 44 | 134,613 | 147 | 98 | ||||||||||||||||||
Foreign exchange contracts: | ||||||||||||||||||||||||
Fair value hedges | 1,362 | 2 | 20 | 0 | 0 | 0 | ||||||||||||||||||
Cash flow hedges | 5,583 | 31 | 36 | 5,745 | 184 | 2 | ||||||||||||||||||
Net investment hedges | 2,640 | 78 | 0 | 2,607 | 178 | 0 | ||||||||||||||||||
Total foreign exchange contracts | 9,585 | 111 | 56 | 8,352 | 362 | 2 | ||||||||||||||||||
Total derivatives designated as accounting hedges | 159,244 | 553 | 100 | 142,965 | 509 | 100 | ||||||||||||||||||
Derivatives not designated as accounting hedges: | ||||||||||||||||||||||||
Customer accommodation: | ||||||||||||||||||||||||
Interest rate contracts | 57,080 | 677 | 119 | 49,386 | 190 | 256 | ||||||||||||||||||
Commodity contracts | 14,330 | 988 | 941 | 10,673 | 797 | 786 | ||||||||||||||||||
Foreign exchange and other contracts | 2,720 | 37 | 30 | 1,418 | 12 | 11 | ||||||||||||||||||
Total customer accommodation | 74,130 | 1,702 | 1,090 | 61,477 | 999 | 1,053 | ||||||||||||||||||
Other interest rate exposures(2) | 6,843 | 55 | 55 | 6,427 | 29 | 36 | ||||||||||||||||||
Other contracts | 3,552 | 67 | 20 | 1,636 | 2 | 12 | ||||||||||||||||||
Total derivatives not designated as accounting hedges | 84,525 | 1,824 | 1,165 | 69,540 | 1,030 | 1,101 | ||||||||||||||||||
Total derivatives | $ | 243,769 | $ | 2,377 | $ | 1,265 | $ | 212,505 | $ | 1,539 | $ | 1,201 | ||||||||||||
Less: netting adjustment(3) | (1,173 | ) | (378 | ) | (1,079 | ) | (287 | ) | ||||||||||||||||
Total derivative assets/liabilities | $ | 1,204 | $ | 887 | $ | 460 | $ | 914 |
(2)Other interest rate exposures include commercial mortgage-related derivatives and interest rate swaps. (3)Represents balance sheet netting of derivative assets and liabilities, and related payables and receivables for cash collateral held or placed with the same counterparty. |
Capital One Financial Corporation (COF) |
September 30, 2020 | December 31, 2019 | |||||||||||||||||||||||||||||||||||||
Carrying Amount Assets/(Liabilities) | Cumulative Amount of Basis Adjustments Included in the Carrying Amount | Carrying Amount Assets/(Liabilities) | Cumulative Amount of Basis Adjustments Included in the Carrying Amount | |||||||||||||||||||||||||||||||||||
(Dollars in millions) | Total Assets/(Liabilities) | Discontinued-Hedging Relationships | Total Assets/(Liabilities) | Discontinued-Hedging Relationships | ||||||||||||||||||||||||||||||||||
Line item on our consolidated balance sheets in which the hedged item is included: | ||||||||||||||||||||||||||||||||||||||
Investment securities available for sale(1)(2) | $ | 9,831 | $ | 629 | $ | 206 | $ | 10,825 | $ | 300 | $ | 52 | ||||||||||||||||||||||||||
Interest-bearing deposits | (12,865) | (257) | 0 | (14,310) | (12) | 0 | ||||||||||||||||||||||||||||||||
Securitized debt obligations | (8,473) | (208) | 34 | (9,403) | 44 | 64 | ||||||||||||||||||||||||||||||||
Senior and subordinated notes | (21,989) | (1,425) | (700) | (27,777) | (458) | 324 |
September 30, 2019 | December 31, 2018 | |||||||||||||||||||||||
Carrying Amount Assets/(Liabilities) | Cumulative Amount of Basis Adjustments Included in the Carrying Amount | Carrying Amount Assets/(Liabilities) | Cumulative Amount of Basis Adjustments Included in the Carrying Amount | |||||||||||||||||||||
(Dollars in millions) | Total Assets/(Liabilities) | Discontinued-Hedging Relationships | Total Assets/(Liabilities) | Discontinued-Hedging Relationships | ||||||||||||||||||||
Line item on our consolidated balance sheets in which the hedged item is included: | ||||||||||||||||||||||||
Investment securities available for sale(1)(2) | $ | 12,864 | $ | 399 | $ | 24 | $ | 14,067 | $ | (6 | ) | $ | (2 | ) | ||||||||||
Interest-bearing deposits | (15,292 | ) | (42 | ) | 0 | (13,101 | ) | 247 | 0 | |||||||||||||||
Securitized debt obligations | (10,249 | ) | 3 | 78 | (5,887 | ) | 168 | 143 | ||||||||||||||||
Senior and subordinated notes | (27,201 | ) | (774 | ) | 294 | (23,572 | ) | 315 | 392 |
(2)Carrying value represents amortized cost. |
115 | 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 September 30, 2019 | ||||||||||||||||||||||||
Derivative assets(1) | $ | 2,377 | $ | (333 | ) | $ | (840 | ) | $ | 1,204 | $ | 0 | $ | 1,204 | ||||||||||
As of December 31, 2018 | ||||||||||||||||||||||||
Derivative assets(1) | 1,539 | (205 | ) | (874 | ) | 460 | 0 | 460 |
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 September 30, 2019 | ||||||||||||||||||||||||
Derivative liabilities(1) | $ | 1,265 | $ | (333 | ) | $ | (45 | ) | $ | 887 | $ | 0 | $ | 887 | ||||||||||
Repurchase agreements(2) | 363 | 0 | 0 | 363 | (363 | ) | 0 | |||||||||||||||||
As of December 31, 2018 | ||||||||||||||||||||||||
Derivative liabilities(1) | 1,201 | (205 | ) | (82 | ) | 914 | 0 | 914 | ||||||||||||||||
Repurchase agreements(2) | 352 | 0 | 0 | 352 | (352 | ) | 0 |
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 September 30, 2020 | ||||||||||||||||||||||||||||||||||||||
Derivative assets(1) | $ | 4,101 | $ | (535) | $ | (1,087) | $ | 2,479 | $ | 0 | $ | 2,479 | ||||||||||||||||||||||||||
As of December 31, 2019 | ||||||||||||||||||||||||||||||||||||||
Derivative assets(1) | 1,729 | (347) | (286) | 1,096 | 0 | 1,096 |
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 September 30, 2020 | ||||||||||||||||||||||||||||||||||||||
Derivative liabilities(1) | $ | 1,739 | $ | (535) | $ | (173) | $ | 1,031 | $ | 0 | $ | 1,031 | ||||||||||||||||||||||||||
Repurchase agreements(2) | 702 | 0 | 0 | 702 | (702) | 0 | ||||||||||||||||||||||||||||||||
As of December 31, 2019 | ||||||||||||||||||||||||||||||||||||||
Derivative liabilities(1) | 1,197 | (347) | (176) | 674 | 0 | 674 | ||||||||||||||||||||||||||||||||
Repurchase agreements(2) | 314 | 0 | 0 | 314 | (314) | 0 |
Three Months Ended September 30, 2019 | ||||||||||||||||||||||||||||
Net Interest Income | Non-Interest Income | |||||||||||||||||||||||||||
(Dollars in millions) | Investment Securities | Loans, Including Loans Held for Sale | Other | Interest-bearing Deposits | Securitized Debt Obligations | Senior and Subordinated Notes | Other | |||||||||||||||||||||
Total amounts presented in our consolidated statements of income | $ | 583 | $ | 6,429 | $ | 63 | $ | (901 | ) | $ | (123 | ) | $ | (299 | ) | $ | 144 | |||||||||||
Fair value hedging relationships: | ||||||||||||||||||||||||||||
Interest rate and foreign exchange contracts: | ||||||||||||||||||||||||||||
Interest recognized on derivatives | $ | (3 | ) | $ | 0 | $ | 0 | $ | (26 | ) | $ | (5 | ) | $ | (3 | ) | $ | 0 | ||||||||||
Gains (losses) recognized on derivatives | (80 | ) | 0 | 0 | 46 | (10 | ) | 216 | (60 | ) | ||||||||||||||||||
Gains (losses) recognized on hedged items(1) | 81 | 0 | 0 | (46 | ) | (6 | ) | (261 | ) | 58 | ||||||||||||||||||
Excluded component of fair value hedges(2) | 0 | 0 | 0 | 0 | 0 | (1 | ) | 0 | ||||||||||||||||||||
Net expense recognized on fair value hedges | $ | (2 | ) | $ | 0 | $ | 0 | $ | (26 | ) | $ | (21 | ) | $ | (49 | ) | $ | (2 | ) | |||||||||
Cash flow hedging relationships:(3) | ||||||||||||||||||||||||||||
Interest rate contracts: | ||||||||||||||||||||||||||||
Realized losses reclassified from AOCI into net income | $ | (1 | ) | $ | (43 | ) | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | ||||||||||||
Foreign exchange contracts: | ||||||||||||||||||||||||||||
Realized gains reclassified from AOCI into net income(4) | 0 | 0 | 12 | 0 | 0 | 0 | 1 | |||||||||||||||||||||
Net income (expense) recognized on cash flow hedges | $ | (1 | ) | $ | (43 | ) | $ | 12 | $ | 0 | $ | 0 | $ | 0 | $ | 1 |
Three Months Ended September 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||
Net Interest Income | Non-Interest Income | |||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Investment Securities | Loans, Including Loans Held for Sale | Other | Interest-bearing Deposits | Securitized Debt Obligations | Senior and Subordinated Notes | Other | |||||||||||||||||||||||||||||||||||||
Total amounts presented in our consolidated statements of income | $ | 443 | $ | 5,758 | $ | 14 | $ | (476) | $ | (43) | $ | (132) | $ | 706 | ||||||||||||||||||||||||||||||
Fair value hedging relationships: | ||||||||||||||||||||||||||||||||||||||||||||
Interest rate and foreign exchange contracts: | ||||||||||||||||||||||||||||||||||||||||||||
Interest recognized on derivatives | $ | (23) | $ | 0 | $ | 0 | $ | 44 | $ | 40 | $ | 56 | $ | 0 | ||||||||||||||||||||||||||||||
Gains (losses) recognized on derivatives | 24 | 0 | 0 | (47) | (48) | (72) | 61 | |||||||||||||||||||||||||||||||||||||
Gains (losses) recognized on hedged items(1) | (31) | 0 | 0 | 48 | 41 | 111 | (61) | |||||||||||||||||||||||||||||||||||||
Excluded component of fair value hedges(2) | 0 | 0 | 0 | 0 | 0 | (1) | 0 | |||||||||||||||||||||||||||||||||||||
Net expense recognized on fair value hedges | $ | (30) | $ | 0 | $ | 0 | $ | 45 | $ | 33 | $ | 94 | $ | 0 | ||||||||||||||||||||||||||||||
Cash flow hedging relationships:(3) | ||||||||||||||||||||||||||||||||||||||||||||
Interest rate contracts: | ||||||||||||||||||||||||||||||||||||||||||||
Realized losses reclassified from AOCI into net income | $ | 8 | $ | 171 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | ||||||||||||||||||||||||||||||
Foreign exchange contracts: | ||||||||||||||||||||||||||||||||||||||||||||
Realized gains reclassified from AOCI into net income(4) | 0 | 0 | 1 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||||||
Net income (expense) recognized on cash flow hedges | $ | 8 | $ | 171 | $ | 1 | $ | 0 | $ | 0 | $ | 0 | $ | 0 |
Capital One Financial Corporation (COF) |
Nine Months Ended September 30, 2019 | ||||||||||||||||||||||||||||
Net Interest Income | Non-Interest Income | |||||||||||||||||||||||||||
(Dollars in millions) | Investment Securities | Loans, Including Loans Held for Sale | Other | Interest-bearing Deposits | Securitized Debt Obligations | Senior and Subordinated Notes | Other | |||||||||||||||||||||
Total amounts presented in our consolidated statements of income | $ | 1,867 | $ | 19,180 | $ | 196 | $ | (2,588 | ) | $ | (405 | ) | $ | (923 | ) | $ | 492 | |||||||||||
Fair value hedging relationships: | ||||||||||||||||||||||||||||
Interest rate and foreign exchange contracts: | ||||||||||||||||||||||||||||
Interest recognized on derivatives | $ | (2 | ) | $ | 0 | $ | 0 | $ | (95 | ) | $ | (17 | ) | $ | (24 | ) | $ | 0 | ||||||||||
Gains (losses) recognized on derivatives | (366 | ) | 0 | 0 | 295 | 102 | 968 | (49 | ) | |||||||||||||||||||
Gains (losses) recognized on hedged items(1) | 365 | 0 | 0 | (289 | ) | (165 | ) | (1,092 | ) | 48 | ||||||||||||||||||
Excluded component of fair value hedges(2) | 0 | 0 | 0 | 0 | 0 | (1 | ) | 0 | ||||||||||||||||||||
Net expense recognized on fair value hedges | $ | (3 | ) | $ | 0 | $ | 0 | $ | (89 | ) | $ | (80 | ) | $ | (149 | ) | $ | (1 | ) | |||||||||
Cash flow hedging relationships:(3) | ||||||||||||||||||||||||||||
Interest rate contracts: | ||||||||||||||||||||||||||||
Realized losses reclassified from AOCI into net income | $ | (8 | ) | $ | (158 | ) | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | ||||||||||||
Foreign exchange contracts: | ||||||||||||||||||||||||||||
Realized gains reclassified from AOCI into net income(4) | 0 | 0 | 37 | 0 | 0 | 0 | 0 | |||||||||||||||||||||
Net income (expense) recognized on cash flow hedges | $ | (8 | ) | $ | (158 | ) | $ | 37 | $ | 0 | $ | 0 | $ | 0 | $ | 0 |
Nine Months Ended September 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||
Net Interest Income | Non-Interest Income | |||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Investment Securities | Loans, Including Loans Held for Sale | Other | Interest-bearing Deposits | Securitized Debt Obligations | Senior and Subordinated Notes | Other | |||||||||||||||||||||||||||||||||||||
Total amounts presented in our consolidated statements of income | $ | 1,455 | $ | 18,120 | $ | 67 | $ | (1,818) | $ | (198) | $ | (551) | $ | 1,017 | ||||||||||||||||||||||||||||||
Fair value hedging relationships: | ||||||||||||||||||||||||||||||||||||||||||||
Interest rate and foreign exchange contracts: | ||||||||||||||||||||||||||||||||||||||||||||
Interest recognized on derivatives | $ | (51) | $ | 0 | $ | 0 | $ | 69 | $ | 92 | $ | 166 | $ | 0 | ||||||||||||||||||||||||||||||
Gains (losses) recognized on derivatives | (340) | 0 | 0 | 249 | 221 | 1,057 | 64 | |||||||||||||||||||||||||||||||||||||
Gains (losses) recognized on hedged items(1) | 329 | 0 | 0 | (248) | (251) | (1,048) | (64) | |||||||||||||||||||||||||||||||||||||
Excluded component of fair value hedges(2) | 0 | 0 | 0 | 0 | 0 | (2) | 0 | |||||||||||||||||||||||||||||||||||||
Net income (expense) recognized on fair value hedges | $ | (62) | $ | 0 | $ | 0 | $ | 70 | $ | 62 | $ | 173 | $ | 0 | ||||||||||||||||||||||||||||||
Cash flow hedging relationships:(3) | ||||||||||||||||||||||||||||||||||||||||||||
Interest rate contracts: | ||||||||||||||||||||||||||||||||||||||||||||
Realized gains reclassified from AOCI into net income | $ | 17 | $ | 330 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | ||||||||||||||||||||||||||||||
Foreign exchange contracts: | ||||||||||||||||||||||||||||||||||||||||||||
Realized gains reclassified from AOCI into net income(4) | 0 | 0 | 10 | 0 | 0 | 0 | (2) | |||||||||||||||||||||||||||||||||||||
Net income recognized on cash flow hedges | $ | 17 | $ | 330 | $ | 10 | $ | 0 | $ | 0 | $ | 0 | $ | (2) |
Capital One Financial Corporation (COF) |
Three Months Ended September 30, 2018 | ||||||||||||||||||||||||||||
Net Interest Income | Non-Interest Income | |||||||||||||||||||||||||||
(Dollars in millions) | Investment Securities | Loans, Including Loans Held for Sale | Other | Interest-bearing Deposits | Securitized Debt Obligations | Senior and Subordinated Notes | Other | |||||||||||||||||||||
Total amounts presented in our consolidated statements of income | $ | 593 | $ | 6,247 | $ | 55 | $ | (681 | ) | $ | (127 | ) | $ | (288 | ) | $ | 248 | |||||||||||
Fair value hedging relationships: | ||||||||||||||||||||||||||||
Interest rate contracts: | ||||||||||||||||||||||||||||
Interest recognized on derivatives | $ | (5 | ) | $ | 0 | $ | 0 | $ | (25 | ) | $ | (21 | ) | $ | (8 | ) | $ | 0 | ||||||||||
Gains (losses) recognized on derivatives | 77 | 0 | 0 | (14 | ) | (4 | ) | (148 | ) | 0 | ||||||||||||||||||
Gains (losses) recognized on hedged items(1) | (79 | ) | 0 | 0 | 16 | 5 | 136 | 0 | ||||||||||||||||||||
Net expense recognized on fair value hedges | $ | (7 | ) | $ | 0 | $ | 0 | $ | (23 | ) | $ | (20 | ) | $ | (20 | ) | $ | 0 | ||||||||||
Cash flow hedging relationships:(3) | ||||||||||||||||||||||||||||
Interest rate contracts: | ||||||||||||||||||||||||||||
Realized losses reclassified from AOCI into net income | $ | (5 | ) | $ | (31 | ) | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | ||||||||||||
Foreign exchange contracts: | ||||||||||||||||||||||||||||
Realized gains reclassified from AOCI into net income(4) | 0 | 0 | 14 | 0 | 0 | 0 | 0 | |||||||||||||||||||||
Net income (expense) recognized on cash flow hedges | $ | (5 | ) | $ | (31 | ) | $ | 14 | $ | 0 | $ | 0 | $ | 0 | $ | 0 |
Three Months Ended September 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||
Net Interest Income | Non-Interest Income | |||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Investment Securities | Loans, Including Loans Held for Sale | Other | Interest-bearing Deposits | Securitized Debt Obligations | Senior and Subordinated Notes | Other | |||||||||||||||||||||||||||||||||||||
Total amounts presented in our consolidated statements of income | $ | 583 | $ | 6,429 | $ | 63 | $ | (901) | $ | (123) | $ | (299) | $ | 144 | ||||||||||||||||||||||||||||||
Fair value hedging relationships: | ||||||||||||||||||||||||||||||||||||||||||||
Interest rate and foreign exchange contracts: | ||||||||||||||||||||||||||||||||||||||||||||
Interest recognized on derivatives | $ | (3) | $ | 0 | $ | 0 | $ | (26) | $ | (5) | $ | (3) | $ | 0 | ||||||||||||||||||||||||||||||
Gains (losses) recognized on derivatives | (80) | 0 | 0 | 46 | (10) | 216 | (60) | |||||||||||||||||||||||||||||||||||||
Gains (losses) recognized on hedged items(1) | 81 | 0 | 0 | (46) | (6) | (261) | 58 | |||||||||||||||||||||||||||||||||||||
Excluded component of fair value hedges(2) | 0 | 0 | 0 | 0 | 0 | (1) | 0 | |||||||||||||||||||||||||||||||||||||
Net expense recognized on fair value hedges | $ | (2) | $ | 0 | $ | 0 | $ | (26) | $ | (21) | $ | (49) | $ | (2) | ||||||||||||||||||||||||||||||
Cash flow hedging relationships:(3) | ||||||||||||||||||||||||||||||||||||||||||||
Interest rate contracts: | ||||||||||||||||||||||||||||||||||||||||||||
Realized losses reclassified from AOCI into net income | $ | (1) | $ | (43) | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | ||||||||||||||||||||||||||||||
Foreign exchange contracts: | ||||||||||||||||||||||||||||||||||||||||||||
Realized gains reclassified from AOCI into net income(4) | 0 | 0 | 12 | 0 | 0 | 0 | 1 | |||||||||||||||||||||||||||||||||||||
Net income (expense) recognized on cash flow hedges | $ | (1) | $ | (43) | $ | 12 | $ | 0 | $ | 0 | $ | 0 | $ | 1 |
Capital One Financial Corporation (COF) |
Nine Months Ended September 30, 2018 | Nine Months Ended September 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Interest Income | Non-Interest Income | Net Interest Income | Non-Interest Income | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Investment Securities | Loans, Including Loans Held for Sale | Other | Interest-bearing Deposits | Securitized Debt Obligations | Senior and Subordinated Notes | Other | (Dollars in millions) | Investment Securities | Loans, Including Loans Held for Sale | Other | Interest-bearing Deposits | Securitized Debt Obligations | Senior and Subordinated Notes | Other | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total amounts presented in our consolidated statements of income | $ | 1,584 | $ | 18,370 | $ | 174 | $ | (1,842 | ) | $ | (358 | ) | $ | (828 | ) | $ | 884 | Total amounts presented in our consolidated statements of income | $ | 1,867 | $ | 19,180 | $ | 196 | $ | (2,588) | $ | (405) | $ | (923) | $ | 492 | ||||||||||||||||||||||||||||||||||||||||
Fair value hedging relationships: | Fair value hedging relationships: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate contracts: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate and foreign exchange contracts: | Interest rate and foreign exchange contracts: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest recognized on derivatives | $ | (22 | ) | $ | 0 | $ | 0 | $ | (48 | ) | $ | (44 | ) | $ | 6 | $ | 0 | Interest recognized on derivatives | $ | (2) | $ | 0 | $ | 0 | $ | (95) | $ | (17) | $ | (24) | $ | 0 | ||||||||||||||||||||||||||||||||||||||||
Gains (losses) recognized on derivatives | 260 | 0 | 0 | (211 | ) | (122 | ) | (659 | ) | 0 | Gains (losses) recognized on derivatives | (366) | 0 | 0 | 295 | 102 | 968 | (49) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gains (losses) recognized on hedged items(1) | (259 | ) | 0 | 0 | 203 | 118 | 610 | 0 | Gains (losses) recognized on hedged items(1) | 365 | 0 | 0 | (289) | (165) | (1,092) | 48 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Excluded component of fair value hedges(2) | Excluded component of fair value hedges(2) | 0 | 0 | 0 | 0 | 0 | (1) | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net expense recognized on fair value hedges | $ | (21 | ) | $ | 0 | $ | 0 | $ | (56 | ) | $ | (48 | ) | $ | (43 | ) | $ | 0 | Net expense recognized on fair value hedges | $ | (3) | $ | 0 | $ | 0 | $ | (89) | $ | (80) | $ | (149) | $ | (1) | |||||||||||||||||||||||||||||||||||||||
Cash flow hedging relationships:(3) | Cash flow hedging relationships:(3) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate contracts: | Interest rate contracts: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Realized losses reclassified from AOCI into net income | $ | (9 | ) | $ | (40 | ) | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | Realized losses reclassified from AOCI into net income | $ | (8) | $ | (158) | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | |||||||||||||||||||||||||||||||||||||||||
Foreign exchange contracts: | Foreign exchange contracts: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Realized gains (losses) reclassified from AOCI into net income(4) | 0 | 0 | 33 | 0 | 0 | 0 | (1 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Realized gains reclassified from AOCI into net income(4) | Realized gains reclassified from AOCI into net income(4) | 0 | 0 | 37 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (expense) recognized on cash flow hedges | $ | (9 | ) | $ | (40 | ) | $ | 33 | $ | 0 | $ | 0 | $ | 0 | $ | (1 | ) | Net income (expense) recognized on cash flow hedges | $ | (8) | $ | (158) | $ | 37 | $ | 0 | $ | 0 | $ | 0 | $ | 0 |
(1)Includes amortization income of $19 million and expense of $34 million for the three and nine months ended September 30, 2020, respectively, and amortization expense of $60 million and $177 million for the three and nine months ended September 30, 2019, respectively, related to basis adjustments on discontinued hedges. (2)Changes in fair values of cross-currency swaps attributable to changes in cross-currency basis spreads are excluded from the assessment of hedge effectiveness and recorded in other comprehensive income. The initial value of the excluded component is recognized in earnings over the life of the swap under the amortization approach. (3)See “Note 9—Stockholders’ Equity” for the effects of cash flow and net investment hedges on AOCI and amounts reclassified to net income, net of tax. (4)We recognized a loss of $73 millionand a gain of $20 million for the three and nine months ended September 30, 2020, respectively, and a gain of $71 million and a loss of $224 million for the three and nine months ended September 30, 2019, respectively, on foreign exchange contracts reclassified from AOCI. These amounts were largely offset by the foreign currency transaction gains (losses) on our foreign currency denominated intercompany funding included other non-interest income. |
Capital One Financial Corporation (COF) |
Three Months Ended September 30, | Nine Months Ended September 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | 2019 | 2018 | 2019 | 2018 | (Dollars in millions) | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||||||||||||||||
Gains (losses) recognized in other non-interest income: | Gains (losses) recognized in other non-interest income: | |||||||||||||||||||||||||||||||||||||||||||||||
Customer accommodation: | Customer accommodation: | |||||||||||||||||||||||||||||||||||||||||||||||
Interest rate contracts | $ | 18 | $ | 4 | $ | 28 | $ | 18 | Interest rate contracts | $ | (5) | $ | 18 | $ | 7 | $ | 28 | |||||||||||||||||||||||||||||||
Commodity contracts | 8 | 0 | 17 | 8 | Commodity contracts | 7 | 8 | 23 | 17 | |||||||||||||||||||||||||||||||||||||||
Foreign exchange and other contracts | 3 | 1 | 10 | 5 | Foreign exchange and other contracts | 1 | 3 | 5 | 10 | |||||||||||||||||||||||||||||||||||||||
Total customer accommodation | 29 | 5 | 55 | 31 | Total customer accommodation | 3 | 29 | 35 | 55 | |||||||||||||||||||||||||||||||||||||||
Other interest rate exposures | (1 | ) | 11 | (15 | ) | 32 | Other interest rate exposures | 17 | (1) | 1 | (15) | |||||||||||||||||||||||||||||||||||||
Other contracts | (7 | ) | (2 | ) | (9 | ) | (22 | ) | Other contracts | 0 | (7) | 0 | (9) | |||||||||||||||||||||||||||||||||||
Total | $ | 21 | $ | 14 | $ | 31 | $ | 41 | Total | $ | 20 | $ | 21 | $ | 36 | $ | 31 |
121 | Capital One Financial Corporation (COF) |
NOTE |
Redeemable by Issuer Beginning | Per Annum Dividend Rate | Dividend Frequency | Liquidation Preference per Share | Carrying Value (in millions) | |||||||||||||||||||||
Series | Description | Issuance Date | Total Shares Outstanding | September 30, 2019 | December 31, 2018 | ||||||||||||||||||||
Series B | 6.00% Non-Cumulative | August 20, 2012 | September 1, 2017 | 6.00% | Quarterly | $ | 1,000 | 875,000 | $ | 853 | $ | 853 | |||||||||||||
Series C | 6.25% Non-Cumulative | June 12, 2014 | September 1, 2019 | 6.25 | Quarterly | 1,000 | 500,000 | 484 | 484 | ||||||||||||||||
Series D | 6.70% Non-Cumulative | October 31, 2014 | December 1, 2019 | 6.70 | Quarterly | 1,000 | 500,000 | 485 | 485 | ||||||||||||||||
Series E | Fixed-to-Floating Rate Non-Cumulative | May 14, 2015 | June 1, 2020 | 5.55% through 5/31/2020; 3-mo. LIBOR+ 380 bps thereafter | Semi-Annually through 5/31/2020; Quarterly thereafter | 1,000 | 1,000,000 | 988 | 988 | ||||||||||||||||
Series F | 6.20% Non-Cumulative | August 24, 2015 | December 1, 2020 | 6.20 | Quarterly | 1,000 | 500,000 | 484 | 484 | ||||||||||||||||
Series G | 5.20% Non-Cumulative | July 29, 2016 | December 1, 2021 | 5.20 | Quarterly | 1,000 | 600,000 | 583 | 583 | ||||||||||||||||
Series H | 6.00% Non-Cumulative | November 29, 2016 | December 1, 2021 | 6.00 | Quarterly | 1,000 | 500,000 | 483 | 483 | ||||||||||||||||
Series I | 5.00% Non-Cumulative | September 11, 2019 | December 1, 2024 | 5.00 | Quarterly | 1,000 | 1,500,000 | 1,463 | 0 | ||||||||||||||||
Total | $ | 5,823 | $ | 4,360 |
__________ (1)Except for Series E, ownership is held in the form of depositary shares, each representing a 1/40th interest in a share of fixed-rate non-cumulative perpetual preferred stock. (2)On March 2, 2020, we redeemed all outstanding shares of our preferred stock Series B. |
Three Months Ended September 30, 2019 | ||||||||||||||||||||||||
(Dollars in millions) | Securities Available for Sale | Securities Held to Maturity | Hedging Relationships(1) | Foreign Currency Translation Adjustments(2) | Other | Total | ||||||||||||||||||
AOCI as of June 30, 2019 | $ | 125 | $ | (178 | ) | $ | 396 | $ | (132 | ) | $ | (41 | ) | $ | 170 | |||||||||
Other comprehensive income (loss) before reclassifications | 103 | 0 | 218 | (12 | ) | 0 | 309 | |||||||||||||||||
Amounts reclassified from AOCI into earnings | (3 | ) | 8 | (29 | ) | 0 | (2 | ) | (26 | ) | ||||||||||||||
Other comprehensive income (loss), net of tax | 100 | 8 | 189 | (12 | ) | (2 | ) | 283 | ||||||||||||||||
AOCI as of September 30, 2019 | $ | 225 | $ | (170 | ) | $ | 585 | $ | (144 | ) | $ | (43 | ) | $ | 453 |
Nine Months Ended September 30, 2019 | ||||||||||||||||||||||||
(Dollars in millions) | Securities Available for Sale | Securities Held to Maturity | Hedging Relationships(1) | Foreign Currency Translation Adjustments(2) | Other | Total | ||||||||||||||||||
AOCI as of December 31, 2018 | $ | (439 | ) | $ | (190 | ) | $ | (418 | ) | $ | (177 | ) | $ | (39 | ) | $ | (1,263 | ) | ||||||
Other comprehensive income (loss) before reclassifications | 697 | 0 | 735 | 33 | (1 | ) | 1,464 | |||||||||||||||||
Amounts reclassified from AOCI into earnings | (33 | ) | 20 | 268 | 0 | (3 | ) | 252 | ||||||||||||||||
Other comprehensive income (loss), net of tax | 664 | 20 | 1,003 | 33 | (4 | ) | 1,716 | |||||||||||||||||
AOCI as of September 30, 2019 | $ | 225 | $ | (170 | ) | $ | 585 | $ | (144 | ) | $ | (43 | ) | $ | 453 |
Three Months Ended September 30, 2018 | ||||||||||||||||||||||||
(Dollars in millions) | Securities Available for Sale | Securities Held to Maturity | Cash Flow Hedges | Foreign Currency Translation Adjustments(2) | Other | Total | ||||||||||||||||||
AOCI as of June 30, 2018 | $ | (630 | ) | $ | (204 | ) | $ | (775 | ) | $ | (155 | ) | $ | (29 | ) | $ | (1,793 | ) | ||||||
Other comprehensive income (loss) before reclassifications | (172 | ) | 0 | (206 | ) | 13 | (1 | ) | (366 | ) | ||||||||||||||
Amounts reclassified from AOCI into earnings | 149 | 8 | 125 | 0 | 0 | 282 | ||||||||||||||||||
Other comprehensive income (loss), net of tax | (23 | ) | 8 | (81 | ) | 13 | (1 | ) | (84 | ) | ||||||||||||||
AOCI as of September 30, 2018 | $ | (653 | ) | $ | (196 | ) | $ | (856 | ) | $ | (142 | ) | $ | (30 | ) | $ | (1,877 | ) |
Nine Months Ended September 30, 2018 | ||||||||||||||||||||||||
(Dollars in millions) | Securities Available for Sale | Securities Held to Maturity | Cash Flow Hedges | Foreign Currency Translation Adjustments(2) | Other | Total | ||||||||||||||||||
AOCI as of December 31, 2017 | $ | 17 | $ | (524 | ) | $ | (281 | ) | $ | (138 | ) | $ | 0 | $ | (926 | ) | ||||||||
Cumulative effects from adoption of new accounting standards | 3 | (113 | ) | (63 | ) | 0 | (28 | ) | (201 | ) | ||||||||||||||
Transfer of securities held to maturity to available for sale(3) | (325 | ) | 407 | 0 | 0 | 0 | 82 | |||||||||||||||||
Other comprehensive loss before reclassifications | (491 | ) | 0 | (498 | ) | (4 | ) | 0 | (993 | ) | ||||||||||||||
Amounts reclassified from AOCI into earnings | 143 | 34 | (14 | ) | 0 | (2 | ) | 161 | ||||||||||||||||
Other comprehensive income (loss), net of tax | (673 | ) | 441 | (512 | ) | (4 | ) | (2 | ) | (750 | ) | |||||||||||||
AOCI as of September 30, 2018 | $ | (653 | ) | $ | (196 | ) | $ | (856 | ) | $ | (142 | ) | $ | (30 | ) | $ | (1,877 | ) |
Capital One Financial Corporation (COF) |
Three Months Ended September 30, 2020 | ||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Securities Available for Sale | Hedging Relationships(1) | Foreign Currency Translation Adjustments(2) | Other | Total | |||||||||||||||||||||||||||||||||
AOCI as of June 30, 2020 | $ | 2,373 | $ | 1,785 | $ | (151) | $ | (26) | $ | 3,981 | ||||||||||||||||||||||||||||
Other comprehensive income (loss) before reclassifications | 20 | (95) | 28 | 0 | (47) | |||||||||||||||||||||||||||||||||
Amounts reclassified from AOCI into earnings | (19) | (80) | 0 | (2) | (101) | |||||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | 1 | (175) | 28 | (2) | (148) | |||||||||||||||||||||||||||||||||
AOCI as of September 30, 2020 | $ | 2,374 | $ | 1,610 | $ | (123) | $ | (28) | $ | 3,833 |
Nine Months Ended September 30, 2020 | ||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Securities Available for Sale | Hedging Relationships(1) | Foreign Currency Translation Adjustments(2) | Other | Total | |||||||||||||||||||||||||||||||||
AOCI as of December 31, 2019 | $ | 935 | $ | 354 | $ | (107) | $ | (26) | $ | 1,156 | ||||||||||||||||||||||||||||
Cumulative effects from the adoption of the CECL standard | (8) | 0 | 0 | 0 | (8) | |||||||||||||||||||||||||||||||||
Other comprehensive income (loss) before reclassifications | 1,466 | 1,540 | (16) | 0 | 2,990 | |||||||||||||||||||||||||||||||||
Amounts reclassified from AOCI into earnings | (19) | (284) | 0 | (2) | (305) | |||||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | 1,447 | 1,256 | (16) | (2) | 2,685 | |||||||||||||||||||||||||||||||||
AOCI as of September 30, 2020 | $ | 2,374 | $ | 1,610 | $ | (123) | $ | (28) | $ | 3,833 |
Three Months Ended September 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Securities Available for Sale | Hedging Relationships(1) | Foreign Currency Translation Adjustments(2) | Securities Held to Maturity | Other | Total | ||||||||||||||||||||||||||||||||||||||
AOCI as of June 30, 2019 | $ | 125 | $ | 396 | $ | (132) | $ | (178) | $ | (41) | $ | 170 | ||||||||||||||||||||||||||||||||
Other comprehensive income (loss) before reclassifications | 103 | 218 | (12) | 0 | 0 | 309 | ||||||||||||||||||||||||||||||||||||||
Amounts reclassified from AOCI into earnings | (3) | (29) | 0 | 8 | (2) | (26) | ||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | 100 | 189 | (12) | 8 | (2) | 283 | ||||||||||||||||||||||||||||||||||||||
AOCI as of September 30, 2019 | $ | 225 | $ | 585 | $ | (144) | $ | (170) | $ | (43) | $ | 453 |
Nine Months Ended September 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Securities Available for Sale | Hedging Relationships(1) | Foreign Currency Translation Adjustments(2) | Securities Held to Maturity | Other | Total | ||||||||||||||||||||||||||||||||||||||
AOCI as of December 31, 2018 | $ | (439) | $ | (418) | $ | (177) | $ | (190) | $ | (39) | $ | (1,263) | ||||||||||||||||||||||||||||||||
Other comprehensive income (loss) before reclassifications | 697 | 735 | 33 | 0 | (1) | 1,464 | ||||||||||||||||||||||||||||||||||||||
Amounts reclassified from AOCI into earnings | (33) | 268 | 0 | 20 | (3) | 252 | ||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | 664 | 1,003 | 33 | 20 | (4) | 1,716 | ||||||||||||||||||||||||||||||||||||||
AOCI as of September 30, 2019 | $ | 225 | $ | 585 | $ | (144) | $ | (170) | $ | (43) | $ | 453 |
123 |
(Dollars in millions) | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||
AOCI Components | Affected Income Statement Line Item | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||||||||||
Securities available for sale: | ||||||||||||||||||||||||||||||||||||||
Non-interest income | $ | 25 | $ | 5 | $ | 25 | $ | 44 | ||||||||||||||||||||||||||||||
Income tax provision (benefit) | 6 | 2 | 6 | 11 | ||||||||||||||||||||||||||||||||||
Net income | 19 | 3 | 19 | 33 | ||||||||||||||||||||||||||||||||||
Hedging relationships: | ||||||||||||||||||||||||||||||||||||||
Interest rate contracts: | Interest income | 179 | (44) | 347 | (166) | |||||||||||||||||||||||||||||||||
Foreign exchange contracts: | Interest income | 1 | 12 | 10 | 37 | |||||||||||||||||||||||||||||||||
Interest expense | (1) | (1) | (3) | (1) | ||||||||||||||||||||||||||||||||||
Non-interest income | (73) | 71 | 20 | (224) | ||||||||||||||||||||||||||||||||||
Income from continuing operations before income taxes | 106 | 38 | 374 | (354) | ||||||||||||||||||||||||||||||||||
Income tax provision (benefit) | 26 | 9 | 90 | (86) | ||||||||||||||||||||||||||||||||||
Net income | 80 | 29 | 284 | (268) | ||||||||||||||||||||||||||||||||||
Securities held to maturity:(1) | ||||||||||||||||||||||||||||||||||||||
Interest income | 0 | (10) | 0 | (26) | ||||||||||||||||||||||||||||||||||
Income tax provision (benefit) | 0 | (2) | 0 | (6) | ||||||||||||||||||||||||||||||||||
Net income | 0 | (8) | 0 | (20) | ||||||||||||||||||||||||||||||||||
Other: | ||||||||||||||||||||||||||||||||||||||
Non-interest income and non-interest expense | 2 | 3 | 2 | 4 | ||||||||||||||||||||||||||||||||||
Income tax provision (benefit) | 0 | 1 | 0 | 1 | ||||||||||||||||||||||||||||||||||
Net income | 2 | 2 | 2 | 3 | ||||||||||||||||||||||||||||||||||
Total reclassifications | $ | 101 | $ | 26 | $ | 305 | $ | (252) |
(Dollars in millions) | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
AOCI Components | Affected Income Statement Line Item | 2019 | 2018 | 2019 | 2018 | |||||||||||||
Securities available for sale: | ||||||||||||||||||
Non-interest income | $ | 5 | $ | (196 | ) | $ | 44 | $ | (188 | ) | ||||||||
Income tax provision | 2 | (47 | ) | 11 | (45 | ) | ||||||||||||
Net income | 3 | (149 | ) | 33 | (143 | ) | ||||||||||||
Securities held to maturity:(1) | ||||||||||||||||||
Interest income | (10 | ) | (10 | ) | (26 | ) | (44 | ) | ||||||||||
Income tax provision | (2 | ) | (2 | ) | (6 | ) | (10 | ) | ||||||||||
Net income | (8 | ) | (8 | ) | (20 | ) | (34 | ) | ||||||||||
Hedging relationships: | ||||||||||||||||||
Interest rate contracts: | Interest income | (44 | ) | (36 | ) | (166 | ) | (49 | ) | |||||||||
Foreign exchange contracts: | Interest income | 12 | 13 | 37 | 33 | |||||||||||||
Interest expense | (1 | ) | 0 | (1 | ) | 0 | ||||||||||||
Non-interest income | 71 | (142 | ) | (224 | ) | 34 | ||||||||||||
Income from continuing operations before income taxes | 38 | (165 | ) | (354 | ) | 18 | ||||||||||||
Income tax provision | 9 | (40 | ) | (86 | ) | 4 | ||||||||||||
Net income | 29 | (125 | ) | (268 | ) | 14 | ||||||||||||
Other: | ||||||||||||||||||
Non-interest income and non-interest expense | 3 | 1 | 4 | 3 | ||||||||||||||
Income tax provision | 1 | 1 | 1 | 1 | ||||||||||||||
Net income | 2 | 0 | 3 | 2 | ||||||||||||||
Total reclassifications | $ | 26 | $ | (282 | ) | $ | (252 | ) | $ | (161 | ) |
Capital One Financial Corporation (COF) |
Three Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
(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 | $ | 1 | $ | 0 | $ | 1 | $ | 132 | $ | 32 | $ | 100 | ||||||||||||||||||||||||||||||||||||||||||||
Net unrealized gains (losses) on hedging relationships | (231) | (56) | (175) | 249 | 60 | 189 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments(1) | 4 | (24) | 28 | 9 | 21 | (12) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net changes in securities held to maturity | 0 | 0 | 0 | 10 | 2 | 8 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Other | (2) | 0 | (2) | (2) | 0 | (2) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | $ | (228) | $ | (80) | $ | (148) | $ | 398 | $ | 115 | $ | 283 |
Three Months Ended September 30, | ||||||||||||||||||||||||
2019 | 2018 | |||||||||||||||||||||||
(Dollars in millions) | Before Tax | Provision (Benefit) | After Tax | Before Tax | Provision (Benefit) | After Tax | ||||||||||||||||||
Other comprehensive income (loss): | ||||||||||||||||||||||||
Net unrealized gains (losses) on securities available for sale | $ | 132 | $ | 32 | $ | 100 | $ | (31 | ) | $ | (8 | ) | $ | (23 | ) | |||||||||
Net changes in securities held to maturity | 10 | 2 | 8 | 10 | 2 | 8 | ||||||||||||||||||
Net unrealized gains (losses) on hedging relationships | 249 | 60 | 189 | (107 | ) | (26 | ) | (81 | ) | |||||||||||||||
Foreign currency translation adjustments(1) | 9 | 21 | (12 | ) | 22 | 9 | 13 | |||||||||||||||||
Other | (2 | ) | 0 | (2 | ) | (1 | ) | 0 | (1 | ) | ||||||||||||||
Other comprehensive income (loss) | $ | 398 | $ | 115 | $ | 283 | $ | (107 | ) | $ | (23 | ) | $ | (84 | ) |
Nine Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2019 | 2018 | 2020 | 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Before Tax | Provision (Benefit) | After Tax | Before Tax | Provision (Benefit) | After Tax | (Dollars in millions) | Before Tax | Provision (Benefit) | After Tax | Before Tax | Provision (Benefit) | After Tax | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net unrealized gains (losses) on securities available for sale | $ | 874 | $ | 210 | $ | 664 | $ | (888 | ) | $ | (215 | ) | $ | (673 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income: | Other comprehensive income: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net unrealized gains on securities available for sale | Net unrealized gains on securities available for sale | $ | 1,903 | $ | 456 | $ | 1,447 | $ | 874 | $ | 210 | $ | 664 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net unrealized gains on hedging relationships | Net unrealized gains on hedging relationships | 1,653 | 397 | 1,256 | 1,322 | 319 | 1,003 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments(1) | Foreign currency translation adjustments(1) | 3 | 19 | (16) | 61 | 28 | 33 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net changes in securities held to maturity | 26 | 6 | 20 | 579 | 138 | 441 | Net changes in securities held to maturity | 0 | 0 | 0 | 26 | 6 | 20 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net unrealized gains (losses) on hedging relationships | 1,322 | 319 | 1,003 | (674 | ) | (162 | ) | (512 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments(1) | 61 | 28 | 33 | 25 | 29 | (4 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | (5 | ) | (1 | ) | (4 | ) | (3 | ) | (1 | ) | (2 | ) | Other | (2) | 0 | (2) | (5) | (1) | (4) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | $ | 2,278 | $ | 562 | $ | 1,716 | $ | (961 | ) | $ | (211 | ) | $ | (750 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | Other comprehensive income | $ | 3,557 | $ | 872 | $ | 2,685 | $ | 2,278 | $ | 562 | $ | 1,716 |
(1)Includes the impact of hedging instruments designated as net investment hedges. |
125 | Capital One Financial Corporation (COF) |
NOTE |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
(Dollars and shares in millions, except per share data) | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Income from continuing operations, net of tax | $ | 1,329 | $ | 1,501 | $ | 4,355 | $ | 4,761 | ||||||||
Income (loss) from discontinued operations, net of tax | 4 | 1 | 15 | (7 | ) | |||||||||||
Net income | 1,333 | 1,502 | 4,370 | 4,754 | ||||||||||||
Dividends and undistributed earnings allocated to participating securities | (10 | ) | (9 | ) | (34 | ) | (32 | ) | ||||||||
Preferred stock dividends | (53 | ) | (53 | ) | (185 | ) | (185 | ) | ||||||||
Net income available to common stockholders | $ | 1,270 | $ | 1,440 | $ | 4,151 | $ | 4,537 | ||||||||
Total weighted-average basic shares outstanding | 469.5 | 477.8 | 469.9 | 483.2 | ||||||||||||
Effect of dilutive securities: | ||||||||||||||||
Stock options | 1.3 | 1.5 | 1.2 | 1.8 | ||||||||||||
Other contingently issuable shares | 1.0 | 1.1 | 1.0 | 1.1 | ||||||||||||
Warrants(1) | 0.0 | 0.5 | 0.0 | 0.6 | ||||||||||||
Total effect of dilutive securities | 2.3 | 3.1 | 2.2 | 3.5 | ||||||||||||
Total weighted-average diluted shares outstanding | 471.8 | 480.9 | 472.1 | 486.7 | ||||||||||||
Basic earnings per common share: | ||||||||||||||||
Net income from continuing operations | $ | 2.70 | $ | 3.01 | $ | 8.80 | $ | 9.40 | ||||||||
Income (loss) from discontinued operations | 0.01 | 0.00 | 0.03 | (0.01 | ) | |||||||||||
Net income per basic common share | $ | 2.71 | $ | 3.01 | $ | 8.83 | $ | 9.39 | ||||||||
Diluted earnings per common share:(2) | ||||||||||||||||
Net income from continuing operations | $ | 2.68 | $ | 2.99 | $ | 8.76 | $ | 9.33 | ||||||||
Income (loss) from discontinued operations | 0.01 | 0.00 | 0.03 | (0.01 | ) | |||||||||||
Net income per diluted common share | $ | 2.69 | $ | 2.99 | $ | 8.79 | $ | 9.32 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||
(Dollars and shares in millions, except per share data) | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||||
Income from continuing operations, net of tax | $ | 2,406 | $ | 1,329 | $ | 149 | $ | 4,355 | ||||||||||||||||||||||||
Income (loss) from discontinued operations, net of tax | 0 | 4 | (1) | 15 | ||||||||||||||||||||||||||||
Net income | 2,406 | 1,333 | 148 | 4,370 | ||||||||||||||||||||||||||||
Dividends and undistributed earnings allocated to participating securities | (20) | (10) | (5) | (34) | ||||||||||||||||||||||||||||
Preferred stock dividends | (67) | (53) | (212) | (185) | ||||||||||||||||||||||||||||
Issuance cost for redeemed preferred stock | 0 | 0 | (22) | 0 | ||||||||||||||||||||||||||||
Net income (loss) available to common stockholders | $ | 2,319 | $ | 1,270 | $ | (91) | $ | 4,151 | ||||||||||||||||||||||||
Total weighted-average basic common shares outstanding | 457.8 | 469.5 | 457.4 | 469.9 | ||||||||||||||||||||||||||||
Effect of dilutive securities:(1) | ||||||||||||||||||||||||||||||||
Stock options | 0.4 | 1.3 | 0.0 | 1.2 | ||||||||||||||||||||||||||||
Other contingently issuable shares | 0.3 | 1.0 | 0.0 | 1.0 | ||||||||||||||||||||||||||||
Total effect of dilutive securities | 0.7 | 2.3 | 0.0 | 2.2 | ||||||||||||||||||||||||||||
Total weighted-average diluted common shares outstanding | 458.5 | 471.8 | 457.4 | 472.1 | ||||||||||||||||||||||||||||
Basic earnings per common share: | ||||||||||||||||||||||||||||||||
Net income (loss) from continuing operations | $ | 5.07 | $ | 2.70 | $ | (0.20) | $ | 8.80 | ||||||||||||||||||||||||
Income from discontinued operations | 0.00 | 0.01 | 0.00 | 0.03 | ||||||||||||||||||||||||||||
Net income (loss) per basic common share | $ | 5.07 | $ | 2.71 | $ | (0.20) | $ | 8.83 | ||||||||||||||||||||||||
Diluted earnings per common share:(1) | ||||||||||||||||||||||||||||||||
Net income (loss) from continuing operations | $ | 5.06 | $ | 2.68 | $ | (0.20) | $ | 8.76 | ||||||||||||||||||||||||
Income from discontinued operations | 0.00 | 0.01 | 0.00 | 0.03 | ||||||||||||||||||||||||||||
Net income (loss) per diluted common share | $ | 5.06 | $ | 2.69 | $ | (0.20) | $ | 8.79 |
126 | Capital One Financial Corporation (COF) |
NOTE |
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 Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for 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. |
September 30, 2019 | ||||||||||||||||||||
Fair Value Measurements Using | Netting Adjustments(1) | |||||||||||||||||||
(Dollars in millions) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||
Assets: | ||||||||||||||||||||
Securities available for sale: | ||||||||||||||||||||
U.S. Treasury securities | $ | 4,155 | $ | 0 | $ | 0 | — | $ | 4,155 | |||||||||||
RMBS | 0 | 34,873 | 452 | — | 35,325 | |||||||||||||||
CMBS | 0 | 5,388 | 8 | — | 5,396 | |||||||||||||||
Other securities | 189 | 1,103 | 0 | — | 1,292 | |||||||||||||||
Total securities available for sale | 4,344 | 41,364 | 460 | — | 46,168 | |||||||||||||||
Other assets: | ||||||||||||||||||||
Derivative assets(2) | 25 | 2,270 | 82 | $ | (1,173 | ) | 1,204 | |||||||||||||
Other(3) | 321 | 0 | 107 | — | 428 | |||||||||||||||
Total assets | $ | 4,690 | $ | 43,634 | $ | 649 | $ | (1,173 | ) | $ | 47,800 | |||||||||
Liabilities: | ||||||||||||||||||||
Other liabilities: | ||||||||||||||||||||
Derivative liabilities(2) | $ | 18 | $ | 1,171 | $ | 76 | $ | (378 | ) | $ | 887 | |||||||||
Total liabilities | $ | 18 | $ | 1,171 | $ | 76 | $ | (378 | ) | $ | 887 |
December 31, 2018 | ||||||||||||||||||||
Fair Value Measurements Using | Netting Adjustments(1) | |||||||||||||||||||
(Dollars in millions) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||
Assets: | ||||||||||||||||||||
Securities available for sale: | ||||||||||||||||||||
U.S. Treasury securities | $ | 6,144 | $ | 0 | $ | 0 | — | $ | 6,144 | |||||||||||
RMBS | 0 | 33,212 | 433 | — | 33,645 | |||||||||||||||
CMBS | 0 | 4,729 | 10 | — | 4,739 | |||||||||||||||
Other securities | 219 | 1,403 | 0 | — | 1,622 | |||||||||||||||
Total securities available for sale | 6,363 | 39,344 | 443 | — | 46,150 | |||||||||||||||
Other assets: | ||||||||||||||||||||
Derivative assets(2) | 0 | 1,501 | 38 | $ | (1,079 | ) | 460 | |||||||||||||
Other(3) | 265 | 0 | 158 | — | 423 | |||||||||||||||
Total assets | $ | 6,628 | $ | 40,845 | $ | 639 | $ | (1,079 | ) | $ | 47,033 | |||||||||
Liabilities: | ||||||||||||||||||||
Other liabilities: | ||||||||||||||||||||
Derivative liabilities(2) | $ | 0 | $ | 1,153 | $ | 48 | $ | (287 | ) | $ | 914 | |||||||||
Total liabilities | $ | 0 | $ | 1,153 | $ | 48 | $ | (287 | ) | $ | 914 |
September 30, 2020 | ||||||||||||||||||||||||||||||||
Fair Value Measurements Using | Netting Adjustments(1) | |||||||||||||||||||||||||||||||
(Dollars in millions) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||
Securities available for sale: | ||||||||||||||||||||||||||||||||
U.S. Treasury securities | $ | 9,345 | $ | 0 | $ | 0 | — | $ | 9,345 | |||||||||||||||||||||||
RMBS | 0 | 76,185 | 474 | — | 76,659 | |||||||||||||||||||||||||||
CMBS | 0 | 11,063 | 372 | — | 11,435 | |||||||||||||||||||||||||||
Other securities | 180 | 2,234 | 0 | — | 2,414 | |||||||||||||||||||||||||||
Total securities available for sale | 9,525 | 89,482 | 846 | — | 99,853 | |||||||||||||||||||||||||||
Loans held for sale | 0 | 1,255 | 0 | — | 1,255 | |||||||||||||||||||||||||||
Other assets: | ||||||||||||||||||||||||||||||||
Derivative assets(2) | 255 | 3,693 | 153 | $ | (1,622) | 2,479 | ||||||||||||||||||||||||||
Other(3) | 371 | 493 | 56 | — | 920 | |||||||||||||||||||||||||||
Total assets | $ | 10,151 | $ | 94,923 | $ | 1,055 | $ | (1,622) | $ | 104,507 | ||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||
Other liabilities: | ||||||||||||||||||||||||||||||||
Derivative liabilities(2) | $ | 236 | $ | 1,394 | $ | 109 | $ | (708) | $ | 1,031 | ||||||||||||||||||||||
Total liabilities | $ | 236 | $ | 1,394 | $ | 109 | $ | (708) | $ | 1,031 |
Capital One Financial Corporation (COF) |
December 31, 2019 | ||||||||||||||||||||||||||||||||
Fair Value Measurements Using | Netting Adjustments(1) | |||||||||||||||||||||||||||||||
(Dollars in millions) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||
Securities available for sale: | ||||||||||||||||||||||||||||||||
U.S. Treasury securities | $ | 4,124 | $ | 0 | $ | 0 | — | $ | 4,124 | |||||||||||||||||||||||
RMBS | 0 | 63,909 | 429 | — | 64,338 | |||||||||||||||||||||||||||
CMBS | 0 | 9,413 | 13 | — | 9,426 | |||||||||||||||||||||||||||
Other securities | 231 | 1,094 | 0 | — | 1,325 | |||||||||||||||||||||||||||
Total securities available for sale | 4,355 | 74,416 | 442 | — | 79,213 | |||||||||||||||||||||||||||
Loans held for sale | 0 | 251 | 0 | — | 251 | |||||||||||||||||||||||||||
Other assets: | ||||||||||||||||||||||||||||||||
Derivative assets(2) | 84 | 1,568 | 77 | $ | (633) | 1,096 | ||||||||||||||||||||||||||
Other(3) | 344 | 0 | 66 | — | 410 | |||||||||||||||||||||||||||
Total assets | $ | 4,783 | $ | 76,235 | $ | 585 | $ | (633) | $ | 80,970 | ||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||
Other liabilities: | ||||||||||||||||||||||||||||||||
Derivative liabilities(2) | $ | 17 | $ | 1,129 | $ | 51 | $ | (523) | $ | 674 | ||||||||||||||||||||||
Total liabilities | $ | 17 | $ | 1,129 | $ | 51 | $ | (523) | $ | 674 |
__________ (1)Represents balance sheet netting of derivative assets and liabilities, and related payables and receivables for cash collateral held or placed with the same counterparty. See “Note 8—Derivative Instruments and Hedging Activities” for additional information. (2)Does not reflect $40 million and $12 million recognized as a net valuation allowance on derivative assets and liabilities for non-performance risk as of September 30, 2020 and December 31, 2019, respectively. Non-performance risk is included in derivative assets and liabilities, which are part of other assets and other liabilities on the consolidated balance sheets, and is offset through non-interest income in the consolidated statements of income. (3)As of September 30, 2020 and December 31, 2019, other includes retained interests in securitizations of $56 million and $66 million, deferred compensation plan assets of $370 million and $343 million, and equity securities of $494 million (including unrealized gains of $470 million) and $1 million, respectively. |
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended September 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||
Total Gains (Losses) (Realized/Unrealized) | Net Unrealized Gains (Losses) Included in Net Income Related to Assets and Liabilities Still Held as of September 30, 2019(1) | |||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Balance, July 1, 2019 | Included in Net Income(1) | Included in OCI | Purchases | Sales | Issuances | Settlements | Transfers Into Level 3 | Transfers Out of Level 3 | Balance, September 30, 2019 | ||||||||||||||||||||||||||||||||||
Securities available for sale:(2) | ||||||||||||||||||||||||||||||||||||||||||||
RMBS | $ | 515 | $ | 10 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | (18 | ) | $ | 59 | $ | (114 | ) | $ | 452 | $ | 9 | ||||||||||||||||||||
CMBS | 9 | 0 | 0 | 0 | 0 | 0 | (1 | ) | 0 | 0 | 8 | 0 | ||||||||||||||||||||||||||||||||
Total securities available for sale | 524 | 10 | 0 | 0 | 0 | 0 | (19 | ) | 59 | (114 | ) | 460 | 9 | |||||||||||||||||||||||||||||||
Other assets: | ||||||||||||||||||||||||||||||||||||||||||||
Retained interest in securitizations | 177 | (1 | ) | 0 | 0 | 0 | 0 | (69 | ) | 0 | 0 | 107 | (1 | ) | ||||||||||||||||||||||||||||||
Net derivative assets (liabilities)(3) | 6 | (1 | ) | 0 | 0 | 0 | (8 | ) | 12 | 0 | (3 | ) | 6 | 1 |
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||||||||||||||||||||||||||
Nine Months Ended September 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||
Total Gains (Losses) (Realized/Unrealized) | Net Unrealized Gains (Losses) Included in Net Income Related to Assets and Liabilities Still Held as of September 30, 2019(1) | |||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Balance, January 1, 2019 | Included in Net Income(1) | Included in OCI | Purchases | Sales | Issuances | Settlements | Transfers Into Level 3 | Transfers Out of Level 3 | Balance, September 30, 2019 | ||||||||||||||||||||||||||||||||||
Securities available for sale:(2) | ||||||||||||||||||||||||||||||||||||||||||||
RMBS | $ | 433 | $ | 27 | $ | 13 | $ | 0 | $ | 0 | $ | 0 | $ | (43 | ) | $ | 173 | $ | (151 | ) | $ | 452 | $ | 26 | ||||||||||||||||||||
CMBS | 10 | 0 | 0 | 0 | 0 | 0 | (2 | ) | 0 | 0 | 8 | 0 | ||||||||||||||||||||||||||||||||
Total securities available for sale | 443 | 27 | 13 | 0 | 0 | 0 | (45 | ) | 173 | (151 | ) | 460 | 26 | |||||||||||||||||||||||||||||||
Other assets: | ||||||||||||||||||||||||||||||||||||||||||||
Retained interest in securitizations | 158 | 18 | 0 | 0 | 0 | 0 | (69 | ) | 0 | 0 | 107 | 8 | ||||||||||||||||||||||||||||||||
Net derivative assets (liabilities)(3) | (10 | ) | 4 | 0 | 0 | 0 | (21 | ) | 39 | 0 | (6 | ) | 6 | 6 |
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended September 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Gains (Losses) (Realized/Unrealized) | Net Unrealized Gains (Losses) Included in Net Income Related to Assets and Liabilities Still Held as of September 30, 2020(1) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Balance, July 1, 2020 | Included in Net Income(1) | Included in OCI | Purchases | Sales | Issuances | Settlements | Transfers Into Level 3 | Transfers Out of Level 3 | Balance, September 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Securities available for sale:(2) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RMBS | $ | 474 | $ | 10 | $ | 3 | $ | 0 | $ | 0 | $ | 0 | $ | (22) | $ | 56 | $ | (47) | $ | 474 | $ | 10 | ||||||||||||||||||||||||||||||||||||||||||||||
CMBS | 282 | (1) | 1 | 0 | 0 | 0 | (8) | 98 | 0 | 372 | (1) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total securities available for sale | 756 | 9 | 4 | 0 | 0 | 0 | (30) | 154 | (47) | 846 | 9 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other assets: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retained interests in securitizations | 56 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 56 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net derivative assets (liabilities)(3) | 34 | 8 | 0 | 0 | 0 | 13 | (2) | 0 | (9) | 44 | 0 |
Capital One Financial Corporation (COF) |
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nine Months Ended September 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Gains (Losses) (Realized/Unrealized) | Net Unrealized Gains (Losses) Included in Net Income Related to Assets and Liabilities Still Held as of September 30, 2020(1) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Balance, January 1, 2020 | Included in Net Income(1) | Included in OCI | Purchases | Sales | Issuances | Settlements | Transfers Into Level 3 | Transfers Out of Level 3 | Balance, September 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Securities available for sale:(2)(4) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RMBS | $ | 433 | $ | 19 | $ | (21) | $ | 0 | $ | 0 | $ | 0 | $ | (55) | $ | 196 | $ | (98) | $ | 474 | $ | 20 | ||||||||||||||||||||||||||||||||||||||||||||||
CMBS | 13 | (1) | 0 | 0 | 0 | 0 | (11) | 371 | 0 | 372 | (4) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total securities available for sale | 446 | 18 | (21) | 0 | 0 | 0 | (66) | 567 | (98) | 846 | 16 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other assets: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retained interests in securitizations | 66 | (10) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 56 | (10) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net derivative assets (liabilities)(3) | 26 | 20 | 0 | 0 | 0 | 39 | (30) | 0 | (11) | 44 | 18 |
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended September 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||
Total Gains (Losses) (Realized/Unrealized) | Net Unrealized Gains (Losses) Included in Net Income Related to Assets and Liabilities Still Held as of September 30, 2018(1) | |||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Balance, July 1, 2018 | Included in Net Income(1) | Included in OCI | Purchases | Sales | Issuances | Settlements | Transfers Into Level 3 | Transfers Out of Level 3 | Balance, September 30, 2018 | ||||||||||||||||||||||||||||||||||
Securities available for sale: | ||||||||||||||||||||||||||||||||||||||||||||
RMBS | $ | 442 | $ | 7 | $ | 2 | $ | 0 | $ | 0 | $ | 0 | $ | (16 | ) | $ | 130 | $ | (46 | ) | $ | 519 | $ | 8 | ||||||||||||||||||||
CMBS | 11 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 11 | 0 | |||||||||||||||||||||||||||||||||
Other securities | 5 | 0 | 0 | 0 | 0 | 0 | (5 | ) | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||
Total securities available for sale | 458 | 7 | 2 | 0 | 0 | 0 | (21 | ) | 130 | (46 | ) | 530 | 8 | |||||||||||||||||||||||||||||||
Other assets: | ||||||||||||||||||||||||||||||||||||||||||||
Retained interests in securitizations | 164 | (2 | ) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 162 | (2 | ) | |||||||||||||||||||||||||||||||
Net derivative assets (liabilities)(3) | (5 | ) | (2 | ) | 0 | 0 | 0 | 18 | 2 | 0 | 0 | 13 | (2 | ) |
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nine Months Ended September 30, 2018 | Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Gains (Losses) (Realized/Unrealized) | Net Unrealized Gains (Losses) Included in Net Income Related to Assets and Liabilities Still Held as of September 30, 2018(1) | Three Months Ended September 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Gains (Losses) (Realized/Unrealized) | Net Unrealized Gains (Losses) Included in Net Income Related to Assets and Liabilities Still Held as of September 30, 2019(1) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Balance, January 1, 2018 | Included in Net Income(1) | Included in OCI | Purchases | Sales | Issuances | Settlements | Transfers Into Level 3 | Transfers Out of Level 3 | Balance, September 30, 2018 | (Dollars in millions) | Balance, July 1, 2019 | Included in Net Income(1) | Included in OCI | Purchases | Sales | Issuances | Settlements | Transfers Into Level 3 | Transfers Out of Level 3 | Balance, September 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Securities available for sale: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Securities available for sale:(2) | Securities available for sale:(2) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RMBS | $ | 614 | $ | 25 | $ | 9 | $ | 0 | $ | 0 | $ | 0 | $ | (58 | ) | $ | 195 | $ | (266 | ) | $ | 519 | $ | 25 | RMBS | $ | 515 | $ | 10 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | (18) | $ | 59 | $ | (114) | $ | 452 | $ | 9 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CMBS | 14 | 0 | 0 | 0 | 0 | 0 | (3 | ) | 0 | 0 | 11 | 0 | CMBS | 9 | 0 | 0 | 0 | 0 | 0 | (1) | 0 | 0 | 8 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other securities | 5 | 0 | 0 | 0 | 0 | 0 | (5 | ) | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total securities available for sale | 633 | 25 | 9 | 0 | 0 | 0 | (66 | ) | 195 | (266 | ) | 530 | 25 | Total securities available for sale | 524 | 10 | 0 | 0 | 0 | 0 | (19) | 59 | (114) | 460 | 9 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other assets: | Other assets: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer MSRs | 92 | 3 | 0 | 0 | (97 | ) | 2 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retained interests in securitizations | 172 | (10 | ) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 162 | (10 | ) | Retained interests in securitizations | 177 | (1) | 0 | 0 | 0 | 0 | (69) | 0 | 0 | 107 | (1) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net derivative assets (liabilities)(3) | 13 | (26 | ) | 0 | 0 | 0 | 25 | 0 | 0 | 1 | 13 | (26 | ) | Net derivative assets (liabilities)(3) | 6 | (1) | 0 | 0 | 0 | (8) | 12 | 0 | (3) | 6 | 1 |
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nine Months Ended September 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Gains (Losses) (Realized/Unrealized) | Net Unrealized Gains (Losses) Included in Net Income Related to Assets and Liabilities Still Held as of September 30, 2019(1) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Balance, January 1, 2019 | Included in Net Income(1) | Included in OCI | Purchases | Sales | Issuances | Settlements | Transfers Into Level 3 | Transfers Out of Level 3 | Balance, September 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Securities available for sale:(2) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RMBS | $ | 433 | $ | 27 | $ | 13 | $ | 0 | $ | 0 | $ | 0 | $ | (43) | $ | 173 | $ | (151) | $ | 452 | $ | 26 | ||||||||||||||||||||||||||||||||||||||||||||||
CMBS | 10 | 0 | 0 | 0 | 0 | 0 | (2) | 0 | 0 | 8 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total securities available for sale | 443 | 27 | 13 | 0 | 0 | 0 | (45) | 173 | (151) | 460 | 26 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other assets: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retained interests in securitizations | 158 | 18 | 0 | 0 | 0 | 0 | (69) | 0 | 0 | 107 | 8 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net derivative assets (liabilities)(3) | (10) | 4 | 0 | 0 | 0 | (21) | 39 | 0 | (6) | 6 | 6 |
Capital One Financial Corporation (COF) |
130 | Capital One Financial Corporation (COF) |
Quantitative Information about Level 3 Fair Value Measurements | ||||||||||||
(Dollars in millions) | Fair Value at September 30, 2019 | Significant Valuation Techniques | Significant Unobservable Inputs | Range | Weighted Average(1) | |||||||
Securities available for sale: | ||||||||||||
RMBS | $ | 452 | Discounted cash flows (vendor pricing) | Yield Voluntary prepayment rate Default rate Loss severity | 1-15% 0-23% 0-7% 0-85% | 4% 6% 3% 68% | ||||||
CMBS | 8 | Discounted cash flows (vendor pricing) | Yield | 2% | 2% | |||||||
Other assets: | ||||||||||||
Retained interests in securitization(2) | 107 | Discounted cash flows | Life of receivables (months) Voluntary prepayment rate Discount rate Default rate Loss severity | 2-62 5-14% 3-12% 3-4% 63-95% | N/A | |||||||
Net derivative assets (liabilities) | 6 | Discounted cash flows | Swap rates | 1-2% | 2% |
Quantitative Information about Level 3 Fair Value Measurements | Quantitative Information about Level 3 Fair Value Measurements | |||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Fair Value at December 31, 2018 | Significant Valuation Techniques | Significant Unobservable Inputs | Range | Weighted Average(1) | (Dollars in millions) | Fair Value at September 30, 2020 | Significant Valuation Techniques | Significant Unobservable Inputs | Range | Weighted Average(1) | |||||||||||||||||||||||||||||||||
Securities available for sale: | Securities available for sale: | |||||||||||||||||||||||||||||||||||||||||||
RMBS | $ | 433 | Discounted cash flows (vendor pricing) | Yield Voluntary prepayment rate Default rate Loss severity | 3-11% 0-17% 0-7% 0-75% | 5% 5% 3% 65% | RMBS | $ | 474 | Discounted cash flows (vendor pricing) | Yield Voluntary prepayment rate Default rate Loss severity | 1-12% 5-15% 1-11% 30-100% | 3% 9% 2% 68% | |||||||||||||||||||||||||||||||
CMBS | 10 | Discounted cash flows (vendor pricing) | Yield | 3% | 3% | CMBS | 372 | Discounted cash flows (vendor pricing) | Yield | 1-3% | 1% | |||||||||||||||||||||||||||||||||
Other assets: | Other assets: | |||||||||||||||||||||||||||||||||||||||||||
Retained interests in securitization(2) | 158 | Discounted cash flows | Life of receivables (months) Voluntary prepayment rate Discount rate Default rate Loss severity | 3-56 3-14% 4-6% 2-4% 50-104% | N/A | |||||||||||||||||||||||||||||||||||||||
Retained interests in securitizations(2) | Retained interests in securitizations(2) | 56 | Discounted cash flows | Life of receivables (months) Voluntary prepayment rate Discount rate Default rate Loss severity | 36-52 3-13% 2-12% 3% 64-70% | N/A | ||||||||||||||||||||||||||||||||||||||
Net derivative assets (liabilities) | (10 | ) | Discounted cash flows | Swap rates | 3% | 3% | Net derivative assets (liabilities) | 44 | Discounted cash flows | Swap rates | 1% | 1% |
Quantitative Information about Level 3 Fair Value Measurements | ||||||||||||||||||||||||||||||||
(Dollars in millions) | Fair Value at December 31, 2019 | Significant Valuation Techniques | Significant Unobservable Inputs | Range | Weighted Average(1) | |||||||||||||||||||||||||||
Securities available for sale: | ||||||||||||||||||||||||||||||||
RMBS | $ | 429 | Discounted cash flows (vendor pricing) | Yield Voluntary prepayment rate Default rate Loss severity | 2-18% 0-18% 1-6% 30-95% | 5% 10% 2% 67% | ||||||||||||||||||||||||||
CMBS | 13 | Discounted cash flows (vendor pricing) | Yield | 2-3% | 2% | |||||||||||||||||||||||||||
Other assets: | ||||||||||||||||||||||||||||||||
Retained interests in securitizations(2) | 66 | Discounted cash flows | Life of receivables (months) Voluntary prepayment rate Discount rate Default rate Loss severity | 35-51 4-14% 3-10% 2-3% 74-88% | N/A | |||||||||||||||||||||||||||
Net derivative assets (liabilities) | 26 | Discounted cash flows | Swap rates | 2% | 2% |
(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. |
Capital One Financial Corporation (COF) |
September 30, 2019 | ||||||||||||
Estimated Fair Value Hierarchy | Total | |||||||||||
(Dollars in millions) | Level 2 | Level 3 | ||||||||||
Loans held for investment | $ | 0 | $ | 317 | $ | 317 | ||||||
Loans held for sale | 2 | 0 | 2 | |||||||||
Other assets(1) | 0 | 78 | 78 | |||||||||
Total | $ | 2 | $ | 395 | $ | 397 |
December 31, 2018 | September 30, 2020 | |||||||||||||||||||||||||||||||
Estimated Fair Value Hierarchy | Total | Estimated Fair Value Hierarchy | Total | |||||||||||||||||||||||||||||
(Dollars in millions) | Level 2 | Level 3 | (Dollars in millions) | Level 2 | Level 3 | |||||||||||||||||||||||||||
Loans held for investment | $ | 0 | $ | 129 | $ | 129 | Loans held for investment | $ | 0 | $ | 294 | $ | 294 | |||||||||||||||||||
Loans held for sale | 38 | 0 | 38 | |||||||||||||||||||||||||||||
Other assets(1) | 0 | 100 | 100 | Other assets(1) | 0 | 55 | 55 | |||||||||||||||||||||||||
Total | $ | 38 | $ | 229 | $ | 267 | Total | $ | 0 | $ | 349 | $ | 349 |
December 31, 2019 | ||||||||||||||||||||
Estimated Fair Value Hierarchy | Total | |||||||||||||||||||
(Dollars in millions) | Level 2 | Level 3 | ||||||||||||||||||
Loans held for investment | $ | 0 | $ | 294 | $ | 294 | ||||||||||||||
Other assets(1) | 0 | 103 | 103 | |||||||||||||||||
Total | $ | 0 | $ | 397 | $ | 397 |
Total Gains (Losses) | ||||||||||||||
Nine Months Ended September 30, | ||||||||||||||
(Dollars in millions) | 2020 | 2019 | ||||||||||||
Loans held for investment | $ | 187 | $ | (189) | ||||||||||
Loans held for sale | 0 | (1) | ||||||||||||
Other assets(1) | (42) | (60) | ||||||||||||
Total | $ | 145 | $ | (250) |
Total Gains (Losses) | ||||||||
Nine Months Ended September 30, | ||||||||
(Dollars in millions) | 2019 | 2018 | ||||||
Loans held for investment | $ | (189 | ) | $ | (99 | ) | ||
Loans held for sale | (1 | ) | (5 | ) | ||||
Other assets(1) | (60 | ) | (57 | ) | ||||
Total | $ | (250 | ) | $ | (161 | ) |
Capital One Financial Corporation (COF) |
September 30, 2019 | ||||||||||||||||||||
Carrying Value | Estimated Fair Value | Estimated Fair Value Hierarchy | ||||||||||||||||||
(Dollars in millions) | Level 1 | Level 2 | Level 3 | |||||||||||||||||
Financial assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 17,120 | $ | 17,120 | $ | 4,452 | $ | 12,668 | $ | 0 | ||||||||||
Restricted cash for securitization investors | 417 | 417 | 417 | 0 | 0 | |||||||||||||||
Securities held to maturity | 33,894 | 35,264 | 0 | 35,258 | 6 | |||||||||||||||
Net loans held for investment | 242,318 | 243,125 | 0 | 0 | 243,125 | |||||||||||||||
Loans held for sale | 1,245 | 1,261 | 0 | 1,261 | 0 | |||||||||||||||
Interest receivable | 1,627 | 1,627 | 0 | 1,627 | 0 | |||||||||||||||
Other investments(1) | 1,341 | 1,341 | 0 | 1,341 | 0 | |||||||||||||||
Financial liabilities: | ||||||||||||||||||||
Deposits with defined maturities | 45,241 | 45,490 | 0 | 45,490 | 0 | |||||||||||||||
Securitized debt obligations | 18,910 | 19,043 | 0 | 19,043 | 0 | |||||||||||||||
Senior and subordinated notes | 30,682 | 31,078 | 0 | 31,078 | 0 | |||||||||||||||
Federal funds purchased and securities loaned or sold under agreements to repurchase | 464 | 464 | 0 | 464 | 0 | |||||||||||||||
Interest payable | 370 | 370 | 0 | 370 | 0 |
December 31, 2018 | September 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Carrying Value | Estimated Fair Value | Estimated Fair Value Hierarchy | Carrying Value | Estimated Fair Value | Estimated Fair Value Hierarchy | |||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Level 1 | Level 2 | Level 3 | (Dollars in millions) | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||||||||||||||||||||
Financial assets: | Financial assets: | |||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 13,186 | $ | 13,186 | $ | 4,768 | $ | 8,418 | $ | 0 | Cash and cash equivalents | $ | 44,106 | $ | 44,106 | $ | 4,267 | $ | 39,839 | $ | 0 | |||||||||||||||||||||||||||||||
Restricted cash for securitization investors | 303 | 303 | 303 | 0 | 0 | Restricted cash for securitization investors | 895 | 895 | 895 | 0 | 0 | |||||||||||||||||||||||||||||||||||||||||
Securities held to maturity | 36,771 | 36,619 | 0 | 36,513 | 106 | |||||||||||||||||||||||||||||||||||||||||||||||
Net loans held for investment | 238,679 | 241,556 | 0 | 0 | 241,556 | Net loans held for investment | 232,094 | 239,525 | 0 | 0 | 239,525 | |||||||||||||||||||||||||||||||||||||||||
Loans held for sale | 1,192 | 1,218 | 0 | 1,218 | 0 | Loans held for sale | 2,178 | 2,277 | 0 | 2,277 | 0 | |||||||||||||||||||||||||||||||||||||||||
Interest receivable | 1,614 | 1,614 | 0 | 1,614 | 0 | Interest receivable | 1,551 | 1,551 | 0 | 1,551 | 0 | |||||||||||||||||||||||||||||||||||||||||
Other investments(1) | 1,725 | 1,725 | 0 | 1,725 | 0 | Other investments(1) | 1,341 | 1,341 | 0 | 1,341 | 0 | |||||||||||||||||||||||||||||||||||||||||
Financial liabilities: | Financial liabilities: | |||||||||||||||||||||||||||||||||||||||||||||||||||
Deposits with defined maturities | 38,471 | 38,279 | 0 | 38,279 | 0 | Deposits with defined maturities | 38,973 | 39,414 | 0 | 39,414 | 0 | |||||||||||||||||||||||||||||||||||||||||
Securitized debt obligations | 18,307 | 18,359 | 0 | 18,359 | 0 | Securitized debt obligations | 13,566 | 13,770 | 0 | 13,770 | 0 | |||||||||||||||||||||||||||||||||||||||||
Senior and subordinated notes | 30,826 | 30,635 | 0 | 30,635 | 0 | Senior and subordinated notes | 28,448 | 28,928 | 0 | 28,928 | 0 | |||||||||||||||||||||||||||||||||||||||||
Federal funds purchased and securities loaned or sold under agreements to repurchase | 352 | 352 | 0 | 352 | 0 | Federal funds purchased and securities loaned or sold under agreements to repurchase | 702 | 702 | 0 | 702 | 0 | |||||||||||||||||||||||||||||||||||||||||
Other borrowings(2) | 9,354 | 9,354 | 0 | 9,354 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||
Interest payable | 458 | 458 | 0 | 458 | 0 | Interest payable | 332 | 332 | 0 | 332 | 0 |
December 31, 2019 | ||||||||||||||||||||||||||||||||
Carrying Value | Estimated Fair Value | Estimated Fair Value Hierarchy | ||||||||||||||||||||||||||||||
(Dollars in millions) | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||||
Financial assets: | ||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 13,407 | $ | 13,407 | $ | 4,129 | $ | 9,278 | $ | 0 | ||||||||||||||||||||||
Restricted cash for securitization investors | 342 | 342 | 342 | 0 | 0 | |||||||||||||||||||||||||||
Net loans held for investment | 258,601 | 258,696 | 0 | 0 | 258,696 | |||||||||||||||||||||||||||
Loans held for sale | 149 | 149 | 0 | 149 | 0 | |||||||||||||||||||||||||||
Interest receivable | 1,758 | 1,758 | 0 | 1,758 | 0 | |||||||||||||||||||||||||||
Other investments(1) | 1,638 | 1,638 | 0 | 1,638 | 0 | |||||||||||||||||||||||||||
Financial liabilities: | ||||||||||||||||||||||||||||||||
Deposits with defined maturities | 44,958 | 45,225 | 0 | 45,225 | 0 | |||||||||||||||||||||||||||
Securitized debt obligations | 17,808 | 17,941 | 0 | 17,941 | 0 | |||||||||||||||||||||||||||
Senior and subordinated notes | 30,472 | 31,233 | 0 | 31,233 | 0 | |||||||||||||||||||||||||||
Federal funds purchased and securities loaned or sold under agreements to repurchase | 314 | 314 | 0 | 314 | 0 | |||||||||||||||||||||||||||
Other borrowings(2) | 7,000 | 7,001 | 0 | 7,001 | 0 | |||||||||||||||||||||||||||
Interest payable | 439 | 439 | 0 | 439 | 0 |
(2)Other borrowings excludes finance lease liabilities. |
133 | Capital One Financial Corporation (COF) |
NOTE |
Three Months Ended September 30, 2019 | ||||||||||||||||||||
(Dollars in millions) | Credit Card | Consumer Banking | Commercial Banking(1)(2) | Other(1)(2) | Consolidated Total | |||||||||||||||
Net interest income | $ | 3,546 | $ | 1,682 | $ | 486 | $ | 23 | $ | 5,737 | ||||||||||
Non-interest income (loss) | 870 | 165 | 221 | (34 | ) | 1,222 | ||||||||||||||
Total net revenue (loss) | 4,416 | 1,847 | 707 | (11 | ) | 6,959 | ||||||||||||||
Provision for credit losses | 1,087 | 203 | 93 | 0 | 1,383 | |||||||||||||||
Non-interest expense | 2,360 | 985 | 414 | 113 | 3,872 | |||||||||||||||
Income (loss) from continuing operations before income taxes | 969 | 659 | 200 | (124 | ) | 1,704 | ||||||||||||||
Income tax provision (benefit) | 235 | 154 | 46 | (60 | ) | 375 | ||||||||||||||
Income (loss) from continuing operations, net of tax | $ | 734 | $ | 505 | $ | 154 | $ | (64 | ) | $ | 1,329 | |||||||||
Loans held for investment | $ | 113,681 | $ | 62,015 | $ | 73,659 | $ | 0 | $ | 249,355 | ||||||||||
Deposits | 0 | 206,423 | 30,923 | 19,802 | 257,148 |
Nine Months Ended September 30, 2019 | ||||||||||||||||||||
(Dollars in millions) | Credit Card | Consumer Banking | Commercial Banking(1)(2) | Other(1)(2) | Consolidated Total | |||||||||||||||
Net interest income | $ | 10,667 | $ | 5,070 | $ | 1,489 | $ | 48 | $ | 17,274 | ||||||||||
Non-interest income (loss) | 2,858 | 491 | 608 | (65 | ) | 3,892 | ||||||||||||||
Total net revenue (loss) | 13,525 | 5,561 | 2,097 | (17 | ) | 21,166 | ||||||||||||||
Provision for credit losses | 3,571 | 603 | 244 | 0 | 4,418 | |||||||||||||||
Non-interest expense | 6,784 | 2,981 | 1,258 | 299 | 11,322 | |||||||||||||||
Income (loss) from continuing operations before income taxes | 3,170 | 1,977 | 595 | (316 | ) | 5,426 | ||||||||||||||
Income tax provision (benefit) | 747 | 461 | 138 | (275 | ) | 1,071 | ||||||||||||||
Income (loss) from continuing operations, net of tax | $ | 2,423 | $ | 1,516 | $ | 457 | $ | (41 | ) | $ | 4,355 | |||||||||
Loans held for investment | $ | 113,681 | $ | 62,015 | $ | 73,659 | $ | 0 | $ | 249,355 | ||||||||||
Deposits | 0 | 206,423 | 30,923 | 19,802 | 257,148 |
Three Months Ended September 30, 2018 | ||||||||||||||||||||
(Dollars in millions) | Credit Card | Consumer Banking | Commercial Banking(1)(2) | Other(1)(2) | Consolidated Total | |||||||||||||||
Net interest income | $ | 3,596 | $ | 1,636 | $ | 513 | $ | 41 | $ | 5,786 | ||||||||||
Non-interest income (loss) | 893 | 155 | 189 | (61 | ) | 1,176 | ||||||||||||||
Total net revenue (loss) | 4,489 | 1,791 | 702 | (20 | ) | 6,962 | ||||||||||||||
Provision (benefit) for credit losses | 1,031 | 184 | 54 | (1 | ) | 1,268 | ||||||||||||||
Non-interest expense | 2,103 | 979 | 408 | 283 | 3,773 | |||||||||||||||
Income (loss) from continuing operations before income taxes | 1,355 | 628 | 240 | (302 | ) | 1,921 | ||||||||||||||
Income tax provision (benefit) | 315 | 146 | 56 | (97 | ) | 420 | ||||||||||||||
Income (loss) from continuing operations, net of tax | $ | 1,040 | $ | 482 | $ | 184 | $ | (205 | ) | $ | 1,501 | |||||||||
Loans held for investment | $ | 110,685 | $ | 59,329 | $ | 68,747 | $ | 0 | $ | 238,761 | ||||||||||
Deposits | 0 | 196,635 | 30,474 | 20,086 | 247,195 |
Nine Months Ended September 30, 2018 | ||||||||||||||||||||
(Dollars in millions) | Credit Card | Consumer Banking | Commercial Banking(1)(2) | Other(1)(2) | Consolidated Total | |||||||||||||||
Net interest income | $ | 10,550 | $ | 4,860 | $ | 1,536 | $ | 109 | $ | 17,055 | ||||||||||
Non-interest income | 2,634 | 504 | 585 | 285 | 4,008 | |||||||||||||||
Total net revenue | 13,184 | 5,364 | 2,121 | 394 | 21,063 | |||||||||||||||
Provision (benefit) for credit losses | 3,658 | 535 | 74 | (49 | ) | 4,218 | ||||||||||||||
Non-interest expense | 6,046 | 2,942 | 1,220 | 562 | 10,770 | |||||||||||||||
Income (loss) from continuing operations before income taxes | 3,480 | 1,887 | 827 | (119 | ) | 6,075 | ||||||||||||||
Income tax provision (benefit) | 810 | 440 | 193 | (129 | ) | 1,314 | ||||||||||||||
Income from continuing operations, net of tax | $ | 2,670 | $ | 1,447 | $ | 634 | $ | 10 | $ | 4,761 | ||||||||||
Loans held for investment | $ | 110,685 | $ | 59,329 | $ | 68,747 | $ | 0 | $ | 238,761 | ||||||||||
Deposits | 0 | 196,635 | 30,474 | 20,086 | 247,195 |
134 | Capital One Financial Corporation (COF) |
Three Months Ended September 30, 2020 | ||||||||||||||||||||||||||||||||
(Dollars in millions) | Credit Card | Consumer Banking | Commercial Banking(1) | Other(1) | Consolidated Total | |||||||||||||||||||||||||||
Net interest income (loss) | $ | 3,292 | $ | 1,904 | $ | 517 | $ | (158) | $ | 5,555 | ||||||||||||||||||||||
Non-interest income | 1,013 | 107 | 237 | 469 | 1,826 | |||||||||||||||||||||||||||
Total net revenue(2) | 4,305 | 2,011 | 754 | 311 | 7,381 | |||||||||||||||||||||||||||
Provision (benefit) for credit losses | 450 | (43) | (74) | (2) | 331 | |||||||||||||||||||||||||||
Non-interest expense | 2,003 | 1,011 | 424 | 110 | 3,548 | |||||||||||||||||||||||||||
Income from continuing operations before income taxes | 1,852 | 1,043 | 404 | 203 | 3,502 | |||||||||||||||||||||||||||
Income tax provision | 438 | 247 | 95 | 316 | 1,096 | |||||||||||||||||||||||||||
Income (loss) from continuing operations, net of tax | $ | 1,414 | $ | 796 | $ | 309 | $ | (113) | $ | 2,406 | ||||||||||||||||||||||
Loans held for investment | $ | 103,641 | $ | 68,688 | $ | 75,894 | $ | 0 | $ | 248,223 | ||||||||||||||||||||||
Deposits | 0 | 249,684 | 36,783 | 19,258 | 305,725 |
Nine Months Ended September 30, 2020 | ||||||||||||||||||||||||||||||||
(Dollars in millions) | Credit Card | Consumer Banking | Commercial Banking(1) | Other(1) | Consolidated Total | |||||||||||||||||||||||||||
Net interest income (loss) | $ | 10,363 | $ | 5,226 | $ | 1,526 | $ | (75) | $ | 17,040 | ||||||||||||||||||||||
Non-interest income | 2,769 | 330 | 655 | 392 | 4,146 | |||||||||||||||||||||||||||
Total net revenue(2) | 13,132 | 5,556 | 2,181 | 317 | 21,186 | |||||||||||||||||||||||||||
Provision for credit losses | 7,096 | 1,693 | 1,209 | 2 | 10,000 | |||||||||||||||||||||||||||
Non-interest expense | 6,180 | 3,038 | 1,261 | 568 | 11,047 | |||||||||||||||||||||||||||
Income (loss) from continuing operations before income taxes | (144) | 825 | (289) | (253) | 139 | |||||||||||||||||||||||||||
Income tax provision (benefit) | (34) | 195 | (69) | (102) | (10) | |||||||||||||||||||||||||||
Income (loss) from continuing operations, net of tax | $ | (110) | $ | 630 | $ | (220) | $ | (151) | $ | 149 | ||||||||||||||||||||||
Loans held for investment | $ | 103,641 | $ | 68,688 | $ | 75,894 | $ | 0 | $ | 248,223 | ||||||||||||||||||||||
Deposits | 0 | 249,684 | 36,783 | 19,258 | 305,725 |
Three Months Ended September 30, 2019 | ||||||||||||||||||||||||||||||||
(Dollars in millions) | Credit Card | Consumer Banking | Commercial Banking(1) | Other(1) | Consolidated Total | |||||||||||||||||||||||||||
Net interest income | $ | 3,546 | $ | 1,682 | $ | 486 | $ | 23 | $ | 5,737 | ||||||||||||||||||||||
Non-interest income (loss) | 870 | 165 | 221 | (34) | 1,222 | |||||||||||||||||||||||||||
Total net revenue (loss) | 4,416 | 1,847 | 707 | (11) | 6,959 | |||||||||||||||||||||||||||
Provision for credit losses | 1,087 | 203 | 93 | 0 | 1,383 | |||||||||||||||||||||||||||
Non-interest expense | 2,360 | 985 | 414 | 113 | 3,872 | |||||||||||||||||||||||||||
Income (loss) from continuing operations before income taxes | 969 | 659 | 200 | (124) | 1,704 | |||||||||||||||||||||||||||
Income tax provision (benefit) | 235 | 154 | 46 | (60) | 375 | |||||||||||||||||||||||||||
Income (loss) from continuing operations, net of tax | $ | 734 | $ | 505 | $ | 154 | $ | (64) | $ | 1,329 | ||||||||||||||||||||||
Loans held for investment | $ | 113,681 | $ | 62,015 | $ | 73,659 | $ | 0 | $ | 249,355 | ||||||||||||||||||||||
Deposits | 0 | 206,423 | 30,923 | 19,802 | 257,148 |
135 | Capital One Financial Corporation (COF) |
Nine Months Ended September 30, 2019 | ||||||||||||||||||||||||||||||||
(Dollars in millions) | Credit Card | Consumer Banking | Commercial Banking(1) | Other(1) | Consolidated Total | |||||||||||||||||||||||||||
Net interest income | $ | 10,667 | $ | 5,070 | $ | 1,489 | $ | 48 | $ | 17,274 | ||||||||||||||||||||||
Non-interest income (loss) | 2,858 | 491 | 608 | (65) | 3,892 | |||||||||||||||||||||||||||
Total net revenue (loss) | 13,525 | 5,561 | 2,097 | (17) | 21,166 | |||||||||||||||||||||||||||
Provision for credit losses | 3,571 | 603 | 244 | 0 | 4,418 | |||||||||||||||||||||||||||
Non-interest expense | 6,784 | 2,981 | 1,258 | 299 | 11,322 | |||||||||||||||||||||||||||
Income (loss) from continuing operations before income taxes | 3,170 | 1,977 | 595 | (316) | 5,426 | |||||||||||||||||||||||||||
Income tax provision (benefit) | 747 | 461 | 138 | (275) | 1,071 | |||||||||||||||||||||||||||
Income (loss) from continuing operations, net of tax | $ | 2,423 | $ | 1,516 | $ | 457 | $ | (41) | $ | 4,355 | ||||||||||||||||||||||
Loans held for investment | $ | 113,681 | $ | 62,015 | $ | 73,659 | $ | 0 | $ | 249,355 | ||||||||||||||||||||||
Deposits | 0 | 206,423 | 30,923 | 19,802 | 257,148 |
Three Months Ended September 30, 2019 | ||||||||||||||||||||
(Dollars in millions) | Credit Card | Consumer Banking | Commercial Banking(1) | Other(1) | Consolidated Total | |||||||||||||||
Contract revenue: | ||||||||||||||||||||
Interchange fees, net(2) | $ | 722 | $ | 54 | $ | 15 | $ | (1 | ) | $ | 790 | |||||||||
Service charges and other customer-related fees | 0 | 76 | 35 | (1 | ) | 110 | ||||||||||||||
Other | 15 | 26 | 1 | 0 | 42 | |||||||||||||||
Total contract revenue | 737 | 156 | 51 | (2 | ) | 942 | ||||||||||||||
Revenue from other sources | 133 | 9 | 170 | (32 | ) | 280 | ||||||||||||||
Total non-interest income | $ | 870 | $ | 165 | $ | 221 | $ | (34 | ) | $ | 1,222 |
Three Months Ended September 30, 2020 | ||||||||||||||||||||||||||||||||
(Dollars in millions) | Credit Card | Consumer Banking | Commercial Banking(1) | Other(1) | Consolidated Total | |||||||||||||||||||||||||||
Contract revenue: | ||||||||||||||||||||||||||||||||
Interchange fees, net(2) | $ | 703 | $ | 54 | $ | 17 | $ | 1 | $ | 775 | ||||||||||||||||||||||
Service charges and other customer-related fees | 0 | 42 | 50 | 0 | 92 | |||||||||||||||||||||||||||
Other | 109 | 5 | 1 | 0 | 115 | |||||||||||||||||||||||||||
Total contract revenue | 812 | 101 | 68 | 1 | 982 | |||||||||||||||||||||||||||
Revenue from other sources | 201 | 6 | 169 | 468 | 844 | |||||||||||||||||||||||||||
Total non-interest income | $ | 1,013 | $ | 107 | $ | 237 | $ | 469 | $ | 1,826 |
Capital One Financial Corporation (COF) |
Nine Months Ended September 30, 2020 | ||||||||||||||||||||||||||||||||
(Dollars in millions) | Credit Card | Consumer Banking | Commercial Banking(1) | Other(1) | Consolidated Total | |||||||||||||||||||||||||||
Contract revenue: | ||||||||||||||||||||||||||||||||
Interchange fees, net(2) | $ | 2,003 | $ | 152 | $ | 45 | $ | (1) | $ | 2,199 | ||||||||||||||||||||||
Service charges and other customer-related fees | 0 | 137 | 124 | (1) | 260 | |||||||||||||||||||||||||||
Other | 236 | 27 | 2 | 0 | 265 | |||||||||||||||||||||||||||
Total contract revenue | 2,239 | 316 | 171 | (2) | 2,724 | |||||||||||||||||||||||||||
Revenue from other sources | 530 | 14 | 484 | 394 | 1,422 | |||||||||||||||||||||||||||
Total non-interest income | $ | 2,769 | $ | 330 | $ | 655 | $ | 392 | $ | 4,146 |
Nine Months Ended September 30, 2019 | Three Months Ended September 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Credit Card | Consumer Banking | Commercial Banking(1) | Other(1) | Consolidated Total | (Dollars in millions) | Credit Card | Consumer Banking | Commercial Banking(1) | Other(1) | Consolidated Total | |||||||||||||||||||||||||||||||||||||||||
Contract revenue: | Contract revenue: | |||||||||||||||||||||||||||||||||||||||||||||||||||
Interchange fees, net(2) | $ | 2,181 | $ | 152 | $ | 39 | $ | (4 | ) | $ | 2,368 | Interchange fees, net(2) | $ | 722 | $ | 54 | $ | 15 | $ | (1) | $ | 790 | ||||||||||||||||||||||||||||||
Service charges and other customer-related fees | 0 | 225 | 88 | (1 | ) | 312 | Service charges and other customer-related fees | 0 | 76 | 35 | (1) | 110 | ||||||||||||||||||||||||||||||||||||||||
Other | 47 | 76 | 2 | 0 | 125 | Other | 15 | 26 | 1 | 0 | 42 | |||||||||||||||||||||||||||||||||||||||||
Total contract revenue | 2,228 | 453 | 129 | (5 | ) | 2,805 | Total contract revenue | 737 | 156 | 51 | (2) | 942 | ||||||||||||||||||||||||||||||||||||||||
Revenue from other sources | 630 | 38 | 479 | (60 | ) | 1,087 | Revenue from other sources | 133 | 9 | 170 | (32) | 280 | ||||||||||||||||||||||||||||||||||||||||
Total non-interest income | $ | 2,858 | $ | 491 | $ | 608 | $ | (65 | ) | $ | 3,892 | Total non-interest income | $ | 870 | $ | 165 | $ | 221 | $ | (34) | $ | 1,222 |
Three Months Ended September 30, 2018 | Nine Months Ended September 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Credit Card | Consumer Banking | Commercial Banking(1) | Other(1) | Consolidated Total | (Dollars in millions) | Credit Card | Consumer Banking | Commercial Banking(1) | Other(1) | Consolidated Total | |||||||||||||||||||||||||||||||||||||||||
Contract revenue: | Contract revenue: | |||||||||||||||||||||||||||||||||||||||||||||||||||
Interchange fees, net(2) | $ | 661 | $ | 46 | $ | 8 | $ | (1 | ) | $ | 714 | Interchange fees, net(2) | $ | 2,181 | $ | 152 | $ | 39 | $ | (4) | $ | 2,368 | ||||||||||||||||||||||||||||||
Service charges and other customer-related fees | 0 | 90 | 33 | 0 | 123 | Service charges and other customer-related fees | 0 | 225 | 88 | (1) | 312 | |||||||||||||||||||||||||||||||||||||||||
Other | (6 | ) | 27 | 0 | 0 | 21 | Other | 47 | 76 | 2 | 0 | 125 | ||||||||||||||||||||||||||||||||||||||||
Total contract revenue | 655 | 163 | 41 | (1 | ) | 858 | Total contract revenue | 2,228 | 453 | 129 | (5) | 2,805 | ||||||||||||||||||||||||||||||||||||||||
Revenue from other sources | 238 | (8 | ) | 148 | (60 | ) | 318 | Revenue from other sources | 630 | 38 | 479 | (60) | 1,087 | |||||||||||||||||||||||||||||||||||||||
Total non-interest income | $ | 893 | $ | 155 | $ | 189 | $ | (61 | ) | $ | 1,176 | Total non-interest income | $ | 2,858 | $ | 491 | $ | 608 | $ | (65) | $ | 3,892 |
Nine Months Ended September 30, 2018 | ||||||||||||||||||||
(Dollars in millions) | Credit Card | Consumer Banking | Commercial Banking(1) | Other(1) | Consolidated Total | |||||||||||||||
Contract revenue: | ||||||||||||||||||||
Interchange fees, net(2) | $ | 1,924 | $ | 135 | $ | 23 | $ | (2 | ) | $ | 2,080 | |||||||||
Service charges and other customer-related fees | 0 | 283 | 99 | (1 | ) | 381 | ||||||||||||||
Other | (2 | ) | 84 | 1 | 0 | 83 | ||||||||||||||
Total contract revenue | 1,922 | 502 | 123 | (3 | ) | 2,544 | ||||||||||||||
Revenue from other sources | 712 | 2 | 462 | 288 | 1,464 | |||||||||||||||
Total non-interest income | $ | 2,634 | $ | 504 | $ | 585 | $ | 285 | $ | 4,008 |
(2)Interchange fees are presented net of customer reward expenses. |
137 | Capital One Financial Corporation (COF) |
NOTE |
Contractual Amount | Carrying Value | |||||||||||||||||||||||||
(Dollars in millions) | September 30, 2020 | December 31, 2019 | September 30, 2020 | December 31, 2019 | ||||||||||||||||||||||
Credit card lines | $ | 350,356 | $ | 363,446 | N/A | N/A | ||||||||||||||||||||
Other loan commitments(1) | 34,574 | 36,454 | $ | 142 | $ | 110 | ||||||||||||||||||||
Standby letters of credit and commercial letters of credit(2) | 1,335 | 1,574 | 34 | 27 | ||||||||||||||||||||||
Total unfunded lending commitments | $ | 386,265 | $ | 401,474 | $ | 176 | $ | 137 |
Contractual Amount | Carrying Value | |||||||||||||||
(Dollars in millions) | September 30, 2019 | December 31, 2018 | September 30, 2019 | December 31, 2018 | ||||||||||||
Credit card lines | $ | 349,896 | $ | 346,186 | N/A | N/A | ||||||||||
Other loan commitments(1) | 35,351 | 34,449 | $ | 122 | $ | 95 | ||||||||||
Standby letters of credit and commercial letters of credit(2) | 1,658 | 1,792 | 33 | 29 | ||||||||||||
Total unfunded lending commitments | $ | 386,905 | $ | 382,427 | $ | 155 | $ | 124 |
(2)These financial guarantees have expiration dates ranging from 2020 to 2023 as of September 30, 2020. |
138 | Capital One Financial Corporation (COF) |
139 | Capital One Financial Corporation (COF) |
140 | Capital One Financial Corporation (COF) |
Capital One Financial Corporation (COF) |
Capital One Financial Corporation (COF) |
Total Number of Shares Withheld(1) | Average Price per Share | |||||||||||||||||||||||||
July | 4,765 | $ | 60.70 | |||||||||||||||||||||||
August | 25,152 | 63.80 | ||||||||||||||||||||||||
September | — | — | ||||||||||||||||||||||||
Total | 29,917 | 63.31 |
Total Number of Shares Purchased(1) | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans | Maximum Amount That May Yet be Purchased Under the Plan or Program (in millions) | |||||||||||
July | 4,765 | $ | 92.04 | — | $ | 2,200 | ||||||||
August | 3,146,932 | 87.07 | 3,127,200 | 1,928 | ||||||||||
September | 2,138,259 | 90.79 | 2,138,259 | 1,734 | ||||||||||
Total | 5,289,956 | 88.58 | 5,265,459 |
Capital One Financial Corporation (COF) |
Exhibit No. | Description | |||||||
3.1 | ||||||||
3.2 | ||||||||
4.1.1 | ||||||||
4.1.2 | ||||||||
4.1.3 | ||||||||
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. | |||||||
31.1* | ||||||||
31.2* | ||||||||
32.1** | ||||||||
32.2** | ||||||||
101.INS | XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | |||||||
101.SCH* | Inline XBRL Taxonomy Extension Schema Document. | |||||||
101.CAL* | Inline XBRL Taxonomy Extension Calculation Linkbase Document. | |||||||
101.DEF* | Inline XBRL Taxonomy Extension Definition Linkbase Document. | |||||||
101.LAB* | Inline XBRL Taxonomy Extension Label Linkbase Document. | |||||||
101.PRE* | Inline XBRL Taxonomy Extension Presentation Linkbase Document. | |||||||
The cover page of Capital One Financial Corporation’s Quarterly Report on Form 10-Q for the quarter ended September 30, |
* | Indicates a document being filed with this Form 10-Q. |
** | Indicates a document being furnished with this Form 10-Q. Information in this Form 10-Q furnished herewith 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. Such exhibit shall not be deemed incorporated by reference into any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934. |
Capital One Financial Corporation (COF) |
CAPITAL ONE FINANCIAL CORPORATION | |||||||||||||||||
Date: November 2, 2020 | By: | ||||||||||||||||
/s/ R. SCOTT BLACKLEY | |||||||||||||||||
R. Scott Blackley | |||||||||||||||||
Chief Financial Officer |
Capital One Financial Corporation (COF) |