UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of
The Securities Exchange Act of 1934
October 15, 2009
Date of Report (Date of earliest event reported)
CAPITAL ONE FINANCIAL CORPORATION
(Exact name of registrant as specified in its chapter)
| Delaware | 1-13300 | 54-1719854 | ||
| (State or other jurisdiction of incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
| 1680 Capital One Drive, McLean, Virginia |
22102 | |
| (Address of principal executive offices) | (Zip Code) |
Registrant’s telephone number, including area code: (703) 720-1000
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| ¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| ¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
| Item 7.01 | Regulation FD Disclosure. |
The Company hereby furnishes the information in Exhibit 99.1 hereto, Historical segment data — for the quarters ended September 30, 2008, December 31, 2008, March 31, 2009 and June 30, 2009, for comparative purposes, reflecting the segment realignment executed in the third quarter of 2009.
Note: Information in this report (including the exhibit) furnished pursuant to Item 7.01 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. This report will not be deemed an admission as to the materiality of any information in the report that is required to be disclosed solely by Regulation FD. Furthermore, the information provided in Exhibit 99.1 shall not be deemed to be incorporated by reference into the filings of the Company under the Securities Act of 1933.
| Item 9.01 | Financial Statements and Exhibits. |
(c) Exhibits
| Exhibit |
Description | |
| 99.1 | Historical segment data — for the quarters ended September 30, 2008, December 31, 2008, March 31, 2009 and June 30, 2009 | |
2
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Company has duly caused this Current Report on Form 8-K to be signed on its behalf by the undersigned hereunto duly authorized.
| CAPITAL ONE FINANCIAL CORPORATION | ||||||
| Dated: October 15, 2009 | By: | /s/ GARY L. PERLIN | ||||
| Gary L. Perlin Chief Financial Officer | ||||||
3
EXHIBIT INDEX
| 99.1 | Historical segment data — for the quarters ended September 30, 2008, December 31, 2008, March 31, 2009 and June 30, 2009 |
4
Exhibit 99.1
Capital One Financial Corporation
Historical segment data
For the quarters ended September 30, 2008, December 31, 2008, March 31, 2009 and June 30, 2009
Segments
During the third quarter of 2009, the Company realigned its business segment reporting structure to better reflect the manner in which the performance of the Company’s operations are evaluated. The Company now reports the results of its business through three operating segments: Credit Card, Commercial Banking, and Consumer Banking. The Company’s new business segment reporting structure:
| • | Provides relevant operating metrics for each segment; |
| • | Maintains visibility of the performance of our credit card businesses; |
| • | Maintains transparency of significant credit results across the Company’s lending businesses; |
| • | Enhances visibility of the performance of our commercial banking business and our consumer banking business which includes our mortgage portfolio; |
| • | Provides investors with greater comparability to peer bank reporting; and |
| • | Integrates the acquired assets, liabilities, and income statement items from Chevy Chase Bank, F.S.B., into the business segments (had previously been held in “Other” category). |
Segment and certain sub-segment results have been recasted for all periods presented. The three segments consist of the following:
| • | Credit Card includes the Company’s domestic consumer and small business card lending, domestic national small business lending, national closed end installment lending and the international card lending businesses in Canada and the United Kingdom. |
| • | Commercial Banking includes the Company’s lending, deposit gathering and treasury management services to commercial real estate and middle market customers. The Commercial segment also includes the financial results of a national portfolio of small ticket commercial real estate loans that are in run-off mode. |
| • | Consumer Banking includes the Company’s branch based lending and deposit gathering activities for small business customers as well as its branch-based consumer deposit gathering and lending activities, national deposit gathering, consumer mortgage lending and servicing activities and national automobile lending. |
The Company’s three segments are considered reportable segments based on quantitative thresholds applied to the managed loan portfolio for reportable segments and are disclosed separately. The segment reorganization includes the allocation of Chevy Chase Bank to the appropriate segments. Chevy Chase Bank’s operations are included in the Commercial Banking and Consumer Banking segments for the second quarter 2009. Chevy Chase Bank’s operations for the first quarter of 2009 remain in the Other category. Chevy Chase Bank’s operations are impacted by the Company’s analysis of the fair values and purchase price allocation of Chevy Chase Bank’s assets and liabilities. As of June 30, 2009, the Company had not finalized the analysis. Changes to the purchase price allocation could result in the Company recasting results of Chevy Chase Bank’s operations. The Other category includes the Company’s liquidity portfolio and various non-lending activities. The Other category also includes the results of GreenPoint’s consumer mortgage held for investment portfolio, the GreenPoint home equity line of credit portfolio, the net impact of transfer pricing, certain unallocated expenses, gains/losses related to the securitization of assets, and restructuring charges related to the Company’s cost initiative announced in the second quarter of 2007.
The Company maintains its books and records on a legal entity basis for the preparation of financial statements in conformity with GAAP. The following tables presents information prepared from the Company’s internal management information system, which is maintained on a line of business level through allocations from the consolidated financial results.
1
The following tables present certain information regarding our continuing operations by segment:
Credit Card
| (Dollars in thousands) |
Q2 2009 | Q1 2009 | Q4 2008 | Q3 2008 | ||||||||||||
| Earnings (Managed Basis) (1) |
||||||||||||||||
| Net interest income |
$ | 1,797,303 | $ | 1,691,688 | $ | 1,816,484 | $ | 1,862,034 | ||||||||
| Non-interest income |
897,440 | 985,481 | 1,138,220 | 1,181,015 | ||||||||||||
| Total revenue |
2,694,743 | 2,677,169 | 2,954,704 | 3,043,049 | ||||||||||||
| Provision for loan and lease losses |
1,520,292 | 1,682,786 | 2,164,529 | 1,434,435 | ||||||||||||
| Non-interest expense |
909,572 | 988,652 | 1,075,446 | 1,059,641 | ||||||||||||
| Income (loss) before taxes |
264,879 | 5,731 | (285,271 | ) | 548,973 | |||||||||||
| Income taxes (benefit) |
92,251 | 2,402 | (98,053 | ) | 192,461 | |||||||||||
| Net income (loss) |
$ | 172,628 | $ | 3,329 | $ | (187,218 | ) | $ | 356,512 | |||||||
| Selected Metrics (Managed Basis) (1) |
||||||||||||||||
| Period end loans held for investment |
$ | 73,398,569 | $ | 75,085,127 | $ | 79,665,223 | $ | 79,616,456 | ||||||||
| Average loans held for investment |
$ | 74,190,428 | $ | 77,570,383 | $ | 79,084,262 | $ | 79,285,212 | ||||||||
| Loans held for investment yield |
12.31 | % | 11.51 | % | 12.56 | % | 13.20 | % | ||||||||
| Revenue margin for domestic cards |
14.46 | % | 13.81 | % | 15.09 | % | 15.42 | % | ||||||||
| Revenue margin for international cards |
15.06 | % | 13.77 | % | 13.87 | % | 14.91 | % | ||||||||
| Net charge off rate |
9.24 | % | 8.27 | % | 6.93 | % | 6.10 | % | ||||||||
| 30+day delinquency rate |
4.99 | % | 5.20 | % | 4.86 | % | 4.34 | % | ||||||||
| Purchase volume (3) |
$ | 25,746,799 | $ | 23,473,560 | $ | 27,564,750 | $ | 29,394,045 | ||||||||
| Domestic Card sub-segment | ||||||||||||||||
| (Dollars in thousands) |
Q2 2009 | Q1 2009 | Q4 2008 | Q3 2008 | ||||||||||||
| Earnings (Managed Basis) (1) |
||||||||||||||||
| Net interest income |
$ | 1,586,686 | $ | 1,504,695 | $ | 1,608,705 | $ | 1,616,038 | ||||||||
| Non-interest income |
794,440 | 883,891 | 1,018,689 | 1,027,918 | ||||||||||||
| Total revenue |
2,381,126 | 2,388,586 | 2,627,394 | 2,643,956 | ||||||||||||
| Provision for loan and lease losses |
1,336,736 | 1,521,997 | 2,000,928 | 1,240,580 | ||||||||||||
| Non-interest expense |
787,624 | 865,460 | 897,687 | 873,866 | ||||||||||||
| Income (loss) before taxes |
256,766 | 1,129 | (271,221 | ) | 529,510 | |||||||||||
| Income taxes (benefit) |
89,868 | 396 | (94,928 | ) | 185,328 | |||||||||||
| Net income (loss) |
$ | 166,898 | $ | 733 | $ | (176,293 | ) | $ | 344,182 | |||||||
| International Card sub-segment | ||||||||||||||||
| (Dollars in thousands) |
Q2 2009 | Q1 2009 | Q4 2008 | Q3 2008 | ||||||||||||
| Earnings (Managed Basis) (1) |
||||||||||||||||
| Net interest income |
$ | 210,617 | $ | 186,993 | $ | 207,779 | $ | 245,996 | ||||||||
| Non-interest income |
103,000 | 101,590 | 119,531 | 153,097 | ||||||||||||
| Total revenue |
313,617 | 288,583 | 327,310 | 399,093 | ||||||||||||
| Provision for loan and lease losses |
183,556 | 160,789 | 163,601 | 193,855 | ||||||||||||
| Non-interest expense |
121,948 | 123,192 | 177,759 | 185,775 | ||||||||||||
| Income (loss) before taxes |
8,113 | 4,602 | (14,050 | ) | 19,463 | |||||||||||
| Income taxes (benefit) |
2,383 | 2,006 | (3,125 | ) | 7,133 | |||||||||||
| Net income (loss) |
$ | 5,730 | $ | 2,596 | $ | (10,925 | ) | $ | 12,330 | |||||||
2
Commercial Banking
| (Dollars in thousands) |
Q2 2009 | Q1 2009 | Q4 2008 | Q3 2008 | ||||||||||||
| Earnings (Managed Basis) (1) |
||||||||||||||||
| Net interest income |
$ | 274,927 | $ | 245,459 | $ | 248,913 | $ | 238,641 | ||||||||
| Non-interest income |
49,043 | 41,214 | 42,803 | 35,608 | ||||||||||||
| Total revenue |
323,970 | 286,673 | 291,716 | 274,249 | ||||||||||||
| Provision for loan and lease losses |
122,497 | 117,304 | 133,154 | 41,706 | ||||||||||||
| Non-interest expense |
155,591 | 141,805 | 121,420 | 121,558 | ||||||||||||
| Income before taxes |
45,882 | 27,564 | 37,142 | 110,985 | ||||||||||||
| Income taxes |
16,059 | 9,647 | 13,000 | 38,845 | ||||||||||||
| Net income |
$ | 29,823 | $ | 17,917 | $ | 24,142 | $ | 72,140 | ||||||||
| Selected Metrics (Managed Basis) (1) |
||||||||||||||||
| Period end loans held for investment |
$ | 30,317,187 | $ | 29,431,097 | $ | 29,541,314 | $ | 29,095,313 | ||||||||
| Average loans held for investment |
$ | 30,496,917 | $ | 29,545,277 | $ | 29,416,025 | $ | 28,607,969 | ||||||||
| Loans held for investment yield |
4.97 | % | 4.92 | % | 5.72 | % | 5.82 | % | ||||||||
| Period end deposits |
$ | 16,897,441 | $ | 15,691,679 | $ | 16,483,361 | $ | 16,764,330 | ||||||||
| Average deposits |
$ | 17,020,998 | $ | 16,045,943 | $ | 15,103,199 | $ | 17,152,610 | ||||||||
| Deposit interest expense rate |
0.77 | % | 0.92 | % | 1.42 | % | 1.75 | % | ||||||||
| Core deposit intangible amortization |
$ | 9,975 | $ | 9,092 | $ | 9,353 | $ | 9,614 | ||||||||
| Net charge off rate(5) |
0.89 | % | 0.56 | % | 0.82 | % | 0.16 | % | ||||||||
| Non-performing loans as a percentage of loans held for investment |
2.32 | % | 1.85 | % | 1.31 | % | 1.00 | % | ||||||||
Consumer Banking
| (Dollars in thousands) |
Q2 2009 | Q1 2009 | Q4 2008 | Q3 2008 | ||||||||||||
| Earnings (Managed Basis) (1) |
||||||||||||||||
| Net interest income |
$ | 839,304 | $ | 723,654 | $ | 759,716 | $ | 754,439 | ||||||||
| Non-interest income |
225,627 | 163,257 | 159,831 | 194,741 | ||||||||||||
| Total revenue |
1,064,931 | 886,911 | 919,547 | 949,180 | ||||||||||||
| Provision for loan and lease losses |
202,055 | 268,233 | 518,572 | 283,424 | ||||||||||||
| Goodwill impairment (4) |
— | — | 810,876 | — | ||||||||||||
| Non-interest expense |
724,760 | 579,724 | 629,257 | 614,740 | ||||||||||||
| Income (loss) before taxes |
138,116 | 38,954 | (1,039,158 | ) | 51,016 | |||||||||||
| Income taxes (benefit) |
48,340 | 13,634 | (86,457 | ) | 17,856 | |||||||||||
| Net income (loss) |
$ | 89,776 | $ | 25,320 | $ | (952,701 | ) | $ | 33,160 | |||||||
| Selected Metrics (Managed Basis) (1) |
||||||||||||||||
| Period end loans held for investment |
$ | 42,183,575 | $ | 35,942,632 | $ | 37,196,562 | $ | 38,077,606 | ||||||||
| Average loans held for investment |
$ | 43,043,640 | $ | 36,543,097 | $ | 37,534,915 | $ | 38,824,045 | ||||||||
| Loans held for investment yield |
8.52 | % | 9.09 | % | 9.22 | % | 9.19 | % | ||||||||
| Auto loans originations |
$ | 1,341,583 | $ | 1,463,402 | $ | 1,476,136 | $ | 1,444,291 | ||||||||
| Period end deposits |
$ | 73,882,639 | $ | 63,422,760 | $ | 61,763,503 | $ | 57,492,140 | ||||||||
| Average deposits |
$ | 74,320,889 | $ | 62,730,379 | $ | 60,747,850 | $ | 57,034,702 | ||||||||
| Deposit interest expense rate |
1.76 | % | 2.04 | % | 2.45 | % | 2.39 | % | ||||||||
| Core deposit intangible amortization |
$ | 47,447 | $ | 35,593 | $ | 36,615 | $ | 37,637 | ||||||||
| Net charge off rate(5) |
2.21 | % | 3.30 | % | 3.75 | % | 3.35 | % | ||||||||
| Non-performing loans as a percentage of loans held for investment |
1.07 | % | 0.98 | % | 0.93 | % | 0.81 | % | ||||||||
| 30+ day delinquency rate(5) |
4.69 | % | 5.01 | % | 6.31 | % | 5.81 | % | ||||||||
| Period end loans serviced for others |
$ | 31,491,554 | $ | 22,270,797 | $ | 22,926,037 | $ | 25,384,945 | ||||||||
3
Other
| (Dollars in thousands) |
Q2 2009 | Q1 2009 (7) | Q4 2008 | Q3 2008 | ||||||||||||
| Earnings (Managed Basis) (1) |
||||||||||||||||
| Net interest income |
$ | 47,659 | $ | 82,952 | $ | (57,233 | ) | $ | 34,216 | |||||||
| Non-interest income |
16,905 | (203,800 | ) | (157,674 | ) | (85,805 | ) | |||||||||
| Total revenue |
64,564 | (120,848 | ) | (214,907 | ) | (51,589 | ) | |||||||||
| Provision for loan and lease losses |
59,129 | 63,634 | 63,043 | 45,705 | ||||||||||||
| Restructuring expenses |
43,374 | 17,627 | 52,839 | 15,306 | ||||||||||||
| Non-interest expense |
88,459 | 17,284 | 68,105 | (1,039 | ) | |||||||||||
| Income (loss) before taxes |
(126,398 | ) | (219,393 | ) | (398,894 | ) | (111,561 | ) | ||||||||
| Income taxes (benefit) |
(64,372 | ) | (85,906 | ) | (118,346 | ) | (35,538 | ) | ||||||||
| Net income (loss) |
$ | (62,026 | ) | $ | (133,487 | ) | $ | (280,548 | ) | $ | (76,023 | ) | ||||
| Selected Metrics (Managed Basis) (1) |
||||||||||||||||
| Period end loans held for investment |
$ | 351,393 | $ | 9,876,138 | $ | 533,655 | $ | 556,371 | ||||||||
| Average loans held for investment |
$ | 878,147 | $ | 3,832,180 | $ | 550,950 | $ | 530,172 | ||||||||
| Period end deposits |
$ | 25,944,110 | $ | 42,004,459 | $ | 30,373,925 | $ | 24,656,504 | ||||||||
| Average deposits |
$ | 28,268,755 | $ | 33,361,282 | $ | 28,242,075 | $ | 21,140,718 | ||||||||
| Total | ||||||||||||||||
| (Dollars in thousands) |
Q2 2009 | Q1 2009 | Q4 2008 | Q3 2008 | ||||||||||||
| Earnings (Managed Basis) (1) |
||||||||||||||||
| Net interest income |
$ | 2,959,193 | $ | 2,743,753 | $ | 2,767,880 | $ | 2,889,330 | ||||||||
| Non-interest income |
1,189,015 | 986,152 | 1,183,180 | 1,325,559 | ||||||||||||
| Total revenue |
4,148,208 | 3,729,905 | 3,951,060 | 4,214,889 | ||||||||||||
| Provision for loan and lease losses |
1,903,973 | 2,131,957 | 2,879,298 | 1,805,270 | ||||||||||||
| Restructuring expenses |
43,374 | 17,627 | 52,839 | 15,306 | ||||||||||||
| Goodwill impairment (4) |
— | — | 810,876 | — | ||||||||||||
| Non-interest expense |
1,878,382 | 1,727,465 | 1,894,228 | 1,794,900 | ||||||||||||
| Income (loss) before taxes |
322,479 | (147,144 | ) | (1,686,181 | ) | 599,413 | ||||||||||
| Income taxes (benefit) |
92,278 | (60,223 | ) | (289,856 | ) | 213,624 | ||||||||||
| Net income (loss) |
$ | 230,201 | $ | (86,921 | ) | $ | (1,396,325 | ) | $ | 385,789 | ||||||
| Selected Metrics (Managed Basis) (1) |
||||||||||||||||
| Period end loans held for investment |
$ | 146,250,724 | $ | 150,334,994 | $ | 146,936,754 | $ | 147,345,746 | ||||||||
| Average loans held for investment |
$ | 148,609,132 | $ | 147,490,937 | $ | 146,586,152 | $ | 147,247,398 | ||||||||
| Period end deposits |
$ | 116,724,190 | $ | 121,118,898 | $ | 108,620,789 | $ | 98,912,974 | ||||||||
| Average deposits |
$ | 119,610,642 | $ | 112,137,604 | $ | 104,093,124 | $ | 95,328,030 | ||||||||
4
Loan Disclosures
Period end loans held for investment (managed basis) (1)
| (In Millions) |
Q2 2009 | Q1 2009 (7) | Q4 2008 | Q3 2008 | ||||||||
| Domestic credit card |
$ | 64,760,128 | $ | 67,015,166 | $ | 70,944,581 | $ | 69,361,743 | ||||
| International credit card |
8,638,441 | 8,069,961 | 8,720,642 | 10,254,713 | ||||||||
| Total Credit Card |
$ | 73,398,569 | $ | 75,085,127 | $ | 79,665,223 | $ | 79,616,456 | ||||
| Commercial and multi-family real estate |
$ | 14,153,752 | $ | 13,522,154 | $ | 13,303,081 | $ | 12,997,111 | ||||
| Middle market |
10,190,701 | 9,850,735 | 10,081,823 | 9,768,420 | ||||||||
| Specialty lending |
3,469,699 | 3,489,813 | 3,547,287 | 3,634,212 | ||||||||
| Total Commercial Lending |
27,814,152 | 26,862,702 | 26,932,191 | 26,399,743 | ||||||||
| Small ticket commercial real estate |
2,503,035 | 2,568,395 | 2,609,123 | 2,695,570 | ||||||||
| Total Commercial Banking |
$ | 30,317,187 | $ | 29,431,097 | $ | 29,541,314 | $ | 29,095,313 | ||||
| Automobiles |
$ | 19,916,167 | $ | 20,795,291 | $ | 21,494,436 | $ | 22,318,970 | ||||
| Mortgages |
16,674,368 | 9,648,271 | 10,098,430 | 10,355,853 | ||||||||
| Retail banking |
5,593,040 | 5,499,070 | 5,603,696 | 5,402,783 | ||||||||
| Total Consumer Banking |
$ | 42,183,575 | $ | 35,942,632 | $ | 37,196,562 | $ | 38,077,606 | ||||
| Other loans |
$ | 351,393 | $ | 9,876,138 | $ | 533,655 | $ | 556,371 | ||||
| Total |
$ | 146,250,724 | $ | 150,334,994 | $ | 146,936,754 | $ | 147,345,746 | ||||
| Average loans held for investment (managed basis) (1) | ||||||||||||
| (In Millions) |
Q2 2009 | Q1 2009 (7) | Q4 2008 | Q3 2008 | ||||||||
| Domestic credit card |
$ | 65,862,569 | $ | 69,187,704 | $ | 69,643,290 | $ | 68,581,983 | ||||
| International credit card |
8,327,859 | 8,382,679 | 9,440,972 | 10,703,229 | ||||||||
| Total Credit Card |
$ | 74,190,428 | $ | 77,570,383 | $ | 79,084,262 | $ | 79,285,212 | ||||
| Commercial and multi-family real estate |
$ | 14,056,005 | $ | 13,437,351 | $ | 13,082,096 | $ | 12,937,927 | ||||
| Middle market |
10,426,572 | 10,003,213 | 10,093,083 | 9,303,068 | ||||||||
| Specialty lending |
3,472,258 | 3,504,544 | 3,584,963 | 3,657,406 | ||||||||
| Total Commercial Lending |
27,954,835 | 26,945,108 | 26,760,142 | 25,898,401 | ||||||||
| Small ticket commercial real estate |
2,542,082 | 2,600,169 | 2,655,883 | 2,709,568 | ||||||||
| Total Commercial Banking |
$ | 30,496,917 | $ | 29,545,277 | $ | 29,416,025 | $ | 28,607,969 | ||||
| Automobiles |
$ | 20,303,296 | $ | 21,123,000 | $ | 21,967,154 | $ | 22,870,070 | ||||
| Mortgages |
17,013,312 | 9,897,086 | 10,201,024 | 10,562,385 | ||||||||
| Retail banking |
5,727,032 | 5,523,011 | 5,366,737 | 5,391,590 | ||||||||
| Total Consumer Banking |
$ | 43,043,640 | $ | 36,543,097 | $ | 37,534,915 | $ | 38,824,045 | ||||
| Other loans |
$ | 878,147 | $ | 3,832,180 | $ | 550,950 | $ | 530,172 | ||||
| Total |
$ | 148,609,132 | $ | 147,490,937 | $ | 146,586,152 | $ | 147,247,398 | ||||
5
Net charge-offs (managed basis) (1)
| Q2 2009 | Q1 2009(7) | Q4 2008 | Q3 2008 | |||||||||
| Domestic credit card |
9.23 | % | 8.39 | % | 7.08 | % | 6.13 | % | ||||
| International credit card |
9.32 | % | 7.30 | % | 5.84 | % | 5.90 | % | ||||
| Total Credit Card |
9.24 | % | 8.27 | % | 6.93 | % | 6.10 | % | ||||
| Commercial and multi-family real estate(5) |
0.92 | % | 0.63 | % | 1.16 | % | 0.14 | % | ||||
| Middle market(5) |
0.58 | % | 0.07 | % | 0.47 | % | 0.15 | % | ||||
| Specialty lending |
0.99 | % | 0.86 | % | 0.47 | % | 0.27 | % | ||||
| Total Commercial Lending(5) |
0.80 | % | 0.45 | % | 0.81 | % | 0.16 | % | ||||
| Small ticket commercial real estate |
1.86 | % | 1.74 | % | 0.90 | % | 0.10 | % | ||||
| Total Commercial Banking(5) |
0.89 | % | 0.56 | % | 0.82 | % | 0.16 | % | ||||
| Automobiles |
3.65 | % | 4.88 | % | 5.67 | % | 4.99 | % | ||||
| Mortgages(5) |
0.42 | % | 0.45 | % | 0.46 | % | 0.43 | % | ||||
| Retail banking(5) |
2.41 | % | 2.37 | % | 2.15 | % | 2.08 | % | ||||
| Total Consumer Banking(5) |
2.21 | % | 3.30 | % | 3.75 | % | 3.35 | % | ||||
| Other loans |
37.00 | % | 4.24 | % | 21.65 | % | 18.98 | % | ||||
| Total |
5.62 | % | 5.40 | % | 4.98 | % | 4.30 | % | ||||
| 30+ day delinquency rate (managed basis) (1) |
||||||||||||
| Q2 2009 | Q1 2009 | Q4 2008 | Q3 2008 | |||||||||
| Domestic credit card |
4.77 | % | 5.08 | % | 4.78 | % | 4.20 | % | ||||
| International credit card |
6.69 | % | 6.25 | % | 5.51 | % | 5.24 | % | ||||
| Total Credit Card |
4.99 | % | 5.20 | % | 4.86 | % | 4.34 | % | ||||
| Automobiles(8) |
8.89 | % | 7.48 | % | 9.90 | % | 9.31 | % | ||||
| Mortgages(5) |
0.97 | % | 1.91 | % | 1.57 | % | 0.82 | % | ||||
| Retail banking(5) |
0.88 | % | 1.16 | % | 1.06 | % | 0.89 | % | ||||
| Total Consumer Banking(5) |
4.69 | % | 5.01 | % | 6.31 | % | 5.81 | % | ||||
| Non performing asset rates (managed basis) (1,2,6) |
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| Q2 2009 | Q1 2009 | Q4 2008 | Q3 2008 | |||||||||
| Commercial and multi-family real estate |
2.16 | % | 2.00 | % | 1.21 | % | 1.07 | % | ||||
| Middle market |
1.16 | % | 0.57 | % | 0.43 | % | 0.26 | % | ||||
| Specialty lending |
1.96 | % | 1.16 | % | 1.05 | % | 0.38 | % | ||||
| Total Commercial Lending |
1.77 | % | 1.37 | % | 0.89 | % | 0.67 | % | ||||
| Small ticket commercial real estate |
10.08 | % | 8.00 | % | 6.67 | % | 4.49 | % | ||||
| Total Commercial Banking |
2.46 | % | 1.95 | % | 1.41 | % | 1.03 | % | ||||
| Automobiles(8) |
0.78 | % | 0.69 | % | 1.06 | % | 0.99 | % | ||||
| Mortgages |
1.50 | % | 1.89 | % | 1.28 | % | 1.16 | % | ||||
| Retail banking |
1.80 | % | 1.68 | % | 1.51 | % | 0.97 | % | ||||
| Total Consumer Banking |
1.20 | % | 1.16 | % | 1.19 | % | 1.03 | % | ||||
Notes
| (1) | The information in this report reflects the adjustment to add back the effect of securitization transactions qualifying as sales under generally accepted accounting principles. |
| (2) | Non performing assets is comprised of non performing loans and foreclosed assets. The non performing asset rate equals non performing assets divided by the sum of loans held for investment and foreclosed assets. |
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| (3) | Includes all purchase transactions net of returns and excludes cash advance transactions. |
| (4) | In the fourth quarter of 2008 the Company recorded impairment of goodwill in its automobile business of $810.9 million. |
| (5) | Net charge-off rates and delinquency rates (30+ days) include the Chevy Chase Bank, FSB acquired loan portfolio. Excluding the Chevy Chase Bank acquired average loan portfolio of $8,931.9 million, the net charge-off rates in the second quarter 2009 would have been: Mortgage 0.77%; Retail Banking 2.56%; Middle Market 0.61%; Commercial and Multi-Family Real Estate 0.95%. The total Consumer and Commercial Banking segment net charge-off rates would have been 2.72% and 0.92%, respectively. Excluding the Chevy Chase Bank acquired period end loan portfolio of $8,552.9 million, the delinquency rates in the second quarter 2009 would have been: Mortgage 1.74%; Retail Banking 0.92%. The total Consumer Banking segment delinquency rate would have been 5.74%. These are the only segment and product classifications materially impacted by the acquired loan portfolio. For these loan and lease categories the dollar amounts of the net charge-offs and delinquency rates (30+ days) were unchanged. |
| (6) | The Company’s policy is not to classify credit card loans as nonperforming loans. Credit card loans continue to accrue finance charges and fees until charged off. The amounts are net of finance charges and fees considered uncollectible and are suppressed and are not recognized in income. |
| (7) | The impact and balances from the Chevy Chase Bank acquisition are included in the Other category for the first quarter of 2009. |
| (8) | Includes non accrual consumer auto loans 90+ days past due. |
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