SEC Filing | Capital One Financial Corp.

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cof-20210427

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

____________________________________

FORM 8-K

____________________________________

CURRENT REPORT

Pursuant to Section 13 or 15(d) of

The Securities Exchange Act of 1934

April 27, 2021

Date of Report (Date of earliest event reported)

____________________________________

CAPITAL ONE FINANCIAL CORPORATION

(Exact name of registrant as specified in its charter)

____________________________________


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

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

(Not applicable)

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

____________________________________

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

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

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

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

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

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


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

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

Emerging growth company ☐

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

Item 2.02 Results of Operations and Financial Condition.

On April 27, 2021, Capital One Financial Corporation (the “Company”) issued a press release announcing its financial results for the first quarter ended March 31, 2021. Copies of the Company’s press release and financial supplement are attached and furnished herewith as Exhibits 99.1 and 99.2 to this Form 8-K and are incorporated herein by reference.

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

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.


Exhibit No.						Description
99.1						Press Release, dated April 27 , 2021 - First Quarter 2021
99.2						Financial Supplement - First Quarter 2021
104						The cover page from this Current Report on Form 8-K, formatted in Inline XBRL

Earnings Conference Call Webcast Information.

The Company will hold an earnings conference call on April 27, 2021 at 5:00 PM Eastern Time. The conference call will be accessible through live webcast. Interested investors and other individuals can access the webcast via the Company’s home page (www.capitalone.com). Under “About,” choose “Investors” to access the Investor Center and view and/or download the earnings press release, the financial supplement, including a reconciliation of non-GAAP financial measures, and the earnings release presentation. A replay of the webcast will be archived on the Company’s website through May 11, 2021 at 5:00 PM Eastern Time.

SIGNATURE

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

CAPITAL ONE FINANCIAL CORPORATION

Date: April 27, 2021

By:

/s/ TIMOTHY P. GOLDEN

Timothy P. Golden

Controller and Principal Accounting Officer

Document

Exhibit 99.1

News Release

https://cdn.kscope.io/1e1b841196878b8cdd2cee9d27646702-earningsslidesvfinal1b581.jpg


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

FOR IMMEDIATE RELEASE: April 27, 2021

Capital One Reports First Quarter 2021 Net Income of $3.3 billion,
or $7.03 per share

First Quarter 2021 Net Income of $7.03 per share

McLean, Va. (April 27, 2021) – Capital One Financial Corporation (NYSE: COF) today announced net income for the first quarter of 2021 of $3.3 billion, or $7.03 per diluted common share, compared with net income of $2.6 billion, or $5.35 per diluted common share in the fourth quarter of 2020, and with a net loss of $1.3 billion, or $3.10 per diluted common share in the first quarter of 2020.

“Strikingly strong credit drove another quarter of record earnings per share, and our investments to transform our technology and how we work are paying off,” said Richard D. Fairbank, Founder, Chairman and Chief Executive Officer. “Our modern technology is powering our response to the pandemic, and putting us in a strong position for opportunities that emerge as sweeping digital change transforms banking.”

The quarter included the following notable item:

(Dollars in millions, except per share data)

Pre-Tax
Impact

Diluted EPS
Impact

Equity investment loss

(75)

(0.12)

All comparisons below are for the first quarter of 2021 compared with the fourth quarter of 2020 unless otherwise noted.

First Quarter 2021 Income Statement Summary:

•Total net revenue decreased 3 percent to $7.1 billion.

•Total non-interest expense decreased 7 percent to $3.7 billion:

◦11 percent decrease in marketing.

◦6 percent decrease in operating expenses.

Capital One First Quarter 2021 Earnings

Page 2

•Pre-provision earnings increased 1 percent to $3.4 billion(1).

•Provision for credit losses decreased $1.1 billion to $(823) million:

◦Net charge-offs of $740 million.

◦$1.6 billion loan reserve release.

•Net interest margin of 5.99 percent, an decrease of 6 basis points.

•Efficiency ratio of 52.58 percent.

•Operating efficiency ratio of 45.54 percent.

First Quarter 2021 Balance Sheet Summary:

•Common equity Tier 1 capital ratio under Basel III Standardized Approach of 14.6 percent at March 31, 2021.

•Period-end loans held for investment in the quarter decreased $8.5 billion, or 3 percent, to $243.1 billion.

◦Credit Card period-end loans decreased $7.8 billion, or 7 percent, to $99.1 billion.

•Domestic Card period-end loans decreased $7.4 billion, or 8 percent, to $91.1 billion.

◦Consumer Banking period-end loans increased $1.3 billion, or 2 percent, to $70.2 billion.

•Auto period-end loans increased $1.3 billion, or 2 percent, to $67.1 billion.

◦Commercial Banking period-end loans decreased $2.0 billion, or 3 percent, to $73.8 billion.

•Average loans held for investment in the quarter decreased $3.8 billion, or 2 percent, to $243.9 billion.

◦Credit Card average loans decreased $3.0 billion, or 3 percent, to $100.5 billion.

•Domestic Card average loans decreased $2.9 billion, or 3 percent, to $92.6 billion.

◦Consumer Banking average loans increased $426 million, or 1 percent, to $69.2 billion.

•Auto average loans increased $595 million, or 1 percent, to $66.2 billion.

◦Commercial Banking average loans decreased $1.2 billion, or 2 percent, to $74.2 billion.

•Period-end total deposits increased $4.9 billion, or 2 percent, to $310.3 billion, while average deposits increased $543 million, or less than 1 percent, to $305.1 billion.

•Interest-bearing deposits rate paid decreased 12 basis points to 0.39 percent.

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

Capital One First Quarter 2021 Earnings

Page 3

Earnings Conference Call Webcast Information

The company will hold an earnings conference call on April 27, 2021 at 5:00 PM Eastern Time. The conference call will be accessible through live webcast. Interested investors and other individuals can access the webcast via the company’s home page (www.capitalone.com). Under “About,” choose “Investors” to access the Investor Center and view and/or download the earnings press release, the financial supplement, including a reconciliation of non-GAAP financial measures, and the earnings release presentation. The replay of the webcast will be archived on the company’s website through May 11, 2021 at 5:00 PM Eastern Time.

Forward-Looking Statements

Certain statements in this release may constitute forward-looking statements, which involve a number of risks and uncertainties. Capital One cautions readers that any forward-looking information is not a guarantee of future performance and that actual results could differ materially from those contained in the forward-looking information due to a number of factors, including those listed from time to time in reports that Capital One files with the Securities and Exchange Commission, including, but not limited to, the Annual Report on Form 10-K for the year ended December 31, 2020.

About Capital One

Capital One Financial Corporation (www.capitalone.com) is a financial holding company whose subsidiaries, which include Capital One, N.A., and Capital One Bank (USA), N.A., had $310.3 billion in deposits and $425.2 billion in total assets as of March 31, 2021. Headquartered in McLean, Virginia, Capital One offers a broad spectrum of financial products and services to consumers, small businesses and commercial clients through a variety of channels. Capital One, N.A. has branches located primarily in New York, Louisiana, Texas, Maryland, Virginia, New Jersey and the District of Columbia. A Fortune 500 company, Capital One trades on the New York Stock Exchange under the symbol “COF” and is included in the S&P 100 index.

###

Document

Exhibit 99.2

Capital One Financial Corporation

Financial Supplement(1)(2)

First Quarter 2021

Table of Contents


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

__________

(1)The information contained in this Financial Supplement is preliminary and based on data available at the time of the earnings presentation. Investors should refer to our Quarterly Report on Form 10-Q for the period ended March 31, 2021 once it is filed with the Securities and Exchange Commission.

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

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 1: Financial Summary—Consolidated


											2021 Q1 vs.
(Dollars in millions, except per share data and as noted)	2021		2020		2020		2020		2020		2020		2020
	Q1		Q4		Q3		Q2		Q1		Q4		Q1
Income Statement
Net interest income	$	5,822	$	5,873	$	5,555	$	5,460	$	6,025	(1)	%	(3)	%
Non-interest income	1,291		1,464		1,826		1,096		1,224		(12)		5
Total net revenue(1)	7,113		7,337		7,381		6,556		7,249		(3)		(2)
Provision (benefit) for credit losses	(823)		264		331		4,246		5,423		**		**
Non-interest expense:
Marketing	501		563		283		273		491		(11)		2
Operating expense	3,239		3,446		3,265		3,497		3,238		(6)		—
Total non-interest expense	3,740		4,009		3,548		3,770		3,729		(7)		—
Income (loss) from continuing operations before income taxes	4,196		3,064		3,502		(1,460)		(1,903)		37		**
Income tax provision (benefit)	869		496		1,096		(543)		(563)		75		**
Income (loss) from continuing operations, net of tax	3,327		2,568		2,406		(917)		(1,340)		30		**
Loss from discontinued operations, net of tax	(2)		(2)		—		(1)		—		—		**
Net income (loss)	3,325		2,566		2,406		(918)		(1,340)		30		**
Dividends and undistributed earnings allocated to participating securities(2)	(28)		(19)		(20)		(1)		(3)		47		**
Preferred stock dividends	(61)		(68)		(67)		(90)		(55)		(10)		11
Issuance cost for redeemed preferred stock(3)	—		(17)		—		—		(22)		**		**
Net income (loss) available to common stockholders	$	3,236	$	2,462	$	2,319	$	(1,009)	$	(1,420)	31		**
Common Share Statistics
Basic earnings per common share:(2)
Net income (loss) from continuing operations	$	7.06	$	5.36	$	5.07	$	(2.21)	$	(3.10)	32	%	**

Net income (loss) per basic common share	$	7.06	$	5.36	$	5.07	$	(2.21)	$	(3.10)	32		**
Diluted earnings per common share:(2)
Net income (loss) from continuing operations	$	7.03	$	5.35	$	5.06	$	(2.21)	$	(3.10)	31		**

Net income (loss) per diluted common share	$	7.03	$	5.35	$	5.06	$	(2.21)	$	(3.10)	31		**
Weighted-average common shares outstanding (in millions):
Basic	458.6		459.1		457.8		456.7		457.6		—		—
Diluted	460.1		460.2		458.5		456.7		457.6		—		1	%
Common shares outstanding (period-end, in millions)	456.8		459.0		457.4		456.3		455.3		—		—
Dividends declared and paid per common share	$	0.40	$	0.10	$	0.10	$	0.40	$	0.40	**		—
Tangible book value per common share (period-end)(4)	90.96		88.34		83.67		78.82		80.68		3		13


											2021 Q1 vs.
(Dollars in millions)	2021		2020		2020		2020		2020		2020		2020
	Q1		Q4		Q3		Q2		Q1		Q4		Q1
Balance Sheet (Period-End)
Loans held for investment	$	243,131	$	251,624	$	248,223	$	251,512	$	262,990	(3)	%	(8)	%
Interest-earning assets	392,485		388,917		390,040		389,829		364,472		1		8
Total assets	425,175		421,602		421,883		421,296		396,878		1		7
Interest-bearing deposits	276,325		274,300		276,092		275,183		245,142		1		13
Total deposits	310,328		305,442		305,725		304,238		269,689		2		15
Borrowings	38,450		40,539		42,795		44,900		55,681		(5)		(31)
Common equity	56,341		55,356		53,093		50,835		51,620		2		9
Total stockholders’ equity	61,188		60,204		58,424		56,045		56,830		2		8
Balance Sheet (Average Balances)
Loans held for investment	$	243,937	$	247,689	$	249,511	$	253,358	$	262,889	(2)	%	(7)	%
Interest-earning assets	388,572		388,252		391,451		378,145		355,347		—		9
Total assets	421,808		420,011		422,854		411,075		390,380		—		8
Interest-bearing deposits	273,358		274,142		276,339		261,256		241,115		—		13
Total deposits	305,056		304,513		305,516		288,344		264,653		—		15
Borrowings	39,911		40,662		44,161		49,827		51,795		(2)		(23)
Common equity	55,775		54,220		51,995		52,413		53,186		3		5
Total stockholders’ equity	60,623		59,389		57,223		57,623		58,568		2		4

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 2: Selected Metrics—Consolidated


																2021 Q1 vs.
(Dollars in millions, except as noted)	2021			2020			2020			2020			2020			2020		2020
	Q1			Q4			Q3			Q2			Q1			Q4		Q1
Performance Metrics
Net interest income growth (period over period)	(1)		%	6		%	2		%	(9)		%	(1)		%	**		**
Non-interest income growth (period over period)	(12)			(20)			67			(10)			(10)			**		**
Total net revenue growth (period over period)	(3)			(1)			13			(10)			(2)			**		**
Total net revenue margin(5)	7.32			7.56			7.54			6.93			8.16			(24)	bps	(84)	bps
Net interest margin(6)	5.99			6.05			5.68			5.78			6.78			(6)		(79)
Return on average assets	3.16			2.45			2.28			(0.89)			(1.37)			71		**
Return on average tangible assets(7)	3.27			2.54			2.36			(0.93)			(1.43)			73		**
Return on average common equity(8)	23.22			18.18			17.84			(7.69)			(10.68)			5%		**
Return on average tangible common equity(9)	31.61			25.02			24.98			(10.74)			(14.85)			7		**
Non-interest expense as a percentage of average loans held for investment	6.13			6.47			5.69			5.95			5.67			(34)	bps	46	bps
Efficiency ratio(10)	52.58			54.64			48.07			57.50			51.44			(206)		114
Operating efficiency ratio(11)	45.54			46.97			44.24			53.34			44.67			(143)		87
Effective income tax rate for continuing operations	20.7			16.2			31.3			37.2			29.6			5%		(9)%
Employees (period-end, in thousands)	51.7			52.0			52.5			53.1			52.1			(1)		(1)
Credit Quality Metrics
Allowance for credit losses	$	14,017		$	15,564		$	16,129		$	16,832		$	14,073		(10)%		—
Allowance coverage ratio	5.77		%	6.19		%	6.50		%	6.69		%	5.35		%	(42)	bps	42	bps
Net charge-offs	$	740		$	856		$	1,073		$	1,505		$	1,791		(14)%		(59)%
Net charge-off rate(12)	1.21		%	1.38		%	1.72		%	2.38		%	2.72		%	(17)	bps	(151)	bps
30+ day performing delinquency rate(13)	1.82			2.41			1.97			2.09			2.95			(59)		(113)
30+ day delinquency rate(13)	1.98			2.61			2.22			2.30			3.16			(63)		(118)
Capital Ratios(14)
Common equity Tier 1 capital	14.6		%	13.7		%	13.0		%	12.4		%	12.0		%	90	bps	260	bps
Tier 1 capital	16.2			15.3			14.8			14.2			13.7			90		250
Total capital	18.6			17.7			17.3			16.7			16.1			90		250
Tier 1 leverage	11.7			11.2			10.6			10.3			11.0			50		70
Tangible common equity (“TCE”)(15)	10.1			10.0			9.4			8.8			9.6			10		50

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 3: Consolidated Statements of Income


											2021 Q1 vs.
	2021		2020		2020		2020		2020		2020		2020
(Dollars in millions, except per share data and as noted)	Q1		Q4		Q3		Q2		Q1		Q4		Q1
Interest income:
Loans, including loans held for sale	$	5,854	$	5,954	$	5,758	$	5,820	$	6,542	(2)	%	(11)	%
Investment securities	391		422		443		482		530		(7)		(26)
Other	16		15		14		16		37		7		(57)
Total interest income	6,261		6,391		6,215		6,318		7,109		(2)		(12)
Interest expense:
Deposits	269		347		476		611		731		(22)		(63)
Securitized debt obligations	32		34		43		56		99		(6)		(68)
Senior and subordinated notes	129		128		132		180		239		1		(46)
Other borrowings	9		9		9		11		15		—		(40)
Total interest expense	439		518		660		858		1,084		(15)		(60)
Net interest income	5,822		5,873		5,555		5,460		6,025		(1)		(3)
Provision (benefit) for credit losses	(823)		264		331		4,246		5,423		**		**
Net interest income after provision for credit losses	6,645		5,609		5,224		1,214		602		18		**
Non-interest income:
Interchange fees, net	817		818		775		672		752		—		9
Service charges and other customer-related fees	352		338		320		258		327		4		8
Net securities gains	4		—		25		—		—		**		**
Other	118		308		706		166		145		(62)		(19)
Total non-interest income	1,291		1,464		1,826		1,096		1,224		(12)		5
Non-interest expense:
Salaries and associate benefits	1,847		1,755		1,719		1,704		1,627		5		14
Occupancy and equipment	472		572		506		523		517		(17)		(9)
Marketing	501		563		283		273		491		(11)		2
Professional services	292		394		327		304		287		(26)		2
Communications and data processing	302		295		310		308		302		2		—
Amortization of intangibles	6		8		14		16		22		(25)		(73)
Other	320		422		389		642		483		(24)		(34)
Total non-interest expense	3,740		4,009		3,548		3,770		3,729		(7)		—
Income (loss) from continuing operations before income taxes	4,196		3,064		3,502		(1,460)		(1,903)		37		**
Income tax provision (benefit)	869		496		1,096		(543)		(563)		75		**
Income (loss) from continuing operations, net of tax	3,327		2,568		2,406		(917)		(1,340)		30		**
Loss from discontinued operations, net of tax	(2)		(2)		—		(1)		—		—		**
Net income (loss)	3,325		2,566		2,406		(918)		(1,340)		30		**
Dividends and undistributed earnings allocated to participating securities(2)	(28)		(19)		(20)		(1)		(3)		47		**
Preferred stock dividends	(61)		(68)		(67)		(90)		(55)		(10)		11
Issuance cost for redeemed preferred stock(3)	—		(17)		—		—		(22)		**		**
Net income (loss) available to common stockholders	$	3,236	$	2,462	$	2,319	$	(1,009)	$	(1,420)	31		**


											2021 Q1 vs.
	2021		2020		2020		2020		2020		2020		2020
(Dollars in millions, except per share data and as noted)	Q1		Q4		Q3		Q2		Q1		Q4		Q1
Basic earnings per common share:(2)
Net income (loss) from continuing operations	$	7.06	$	5.36	$	5.07	$	(2.21)	$	(3.10)	32	%	**

Net income (loss) per basic common share	$	7.06	$	5.36	$	5.07	$	(2.21)	$	(3.10)	32		**
Diluted earnings per common share:(2)
Net income (loss) from continuing operations	$	7.03	$	5.35	$	5.06	$	(2.21)	$	(3.10)	31		**

Net income (loss) per diluted common share	$	7.03	$	5.35	$	5.06	$	(2.21)	$	(3.10)	31		**
Weighted-average common shares outstanding (in millions):
Basic common shares	458.6		459.1		457.8		456.7		457.6		—		—
Diluted common shares	460.1		460.2		458.5		456.7		457.6		—		1	%

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 4: Consolidated Balance Sheets


											2021 Q1 vs.
	2021		2020		2020		2020		2020		2020		2020
(Dollars in millions)	Q1		Q4		Q3		Q2		Q1		Q4		Q1
Assets:
Cash and cash equivalents:
Cash and due from banks	$	4,670	$	4,708	$	4,267	$	4,583	$	4,545	(1)	%	3	%
Interest-bearing deposits and other short-term investments	45,825		35,801		39,839		51,235		20,391		28		125

Total cash and cash equivalents	50,495		40,509		44,106		55,818		24,936		25		102
Restricted cash for securitization investors	1,779		262		895		740		364		**		**


Securities available for sale	99,165		100,445		99,853		87,859		81,423		(1)		22


Loans held for investment:
Unsecuritized loans held for investment	219,182		225,698		217,878		222,310		231,318		(3)		(5)
Loans held in consolidated trusts	23,949		25,926		30,345		29,202		31,672		(8)		(24)
Total loans held for investment	243,131		251,624		248,223		251,512		262,990		(3)		(8)
Allowance for credit losses	(14,017)		(15,564)		(16,129)		(16,832)		(14,073)		(10)		—
Net loans held for investment	229,114		236,060		232,094		234,680		248,917		(3)		(8)
Loans held for sale	2,896		2,710		3,433		711		1,056		7		174
Premises and equipment, net	4,277		4,287		4,333		4,324		4,336		—		(1)
Interest receivable	1,380		1,471		1,551		1,574		1,687		(6)		(18)
Goodwill	14,654		14,653		14,648		14,645		14,645		—		—
Other assets	21,415		21,205		20,970		20,945		19,514		1		10
Total assets	$	425,175	$	421,602	$	421,883	$	421,296	$	396,878	1		7


											2021 Q1 vs.
	2021		2020		2020		2020		2020		2020		2020
(Dollars in millions)	Q1		Q4		Q3		Q2		Q1		Q4		Q1
Liabilities:
Interest payable	$	288	$	352	$	332	$	380	$	359	(18)	%	(20)	%
Deposits:
Non-interest-bearing deposits	34,003		31,142		29,633		29,055		24,547		9		39
Interest-bearing deposits	276,325		274,300		276,092		275,183		245,142		1		13
Total deposits	310,328		305,442		305,725		304,238		269,689		2		15
Securitized debt obligations	12,071		12,414		13,566		15,761		17,141		(3)		(30)
Other debt:
Federal funds purchased and securities loaned or sold under agreements to repurchase	842		668		702		573		399		26		111
Senior and subordinated notes	25,467		27,382		28,448		28,481		32,049		(7)		(21)
Other borrowings	70		75		79		85		6,092		(7)		(99)
Total other debt	26,379		28,125		29,229		29,139		38,540		(6)		(32)
Other liabilities	14,921		15,065		14,607		15,733		14,319		(1)		4
Total liabilities	363,987		361,398		363,459		365,251		340,048		1		7

Stockholders’ equity:
Preferred stock	0		0		0		0		0		—		—
Common stock	7		7		7		7		7		—		—
Additional paid-in capital, net	33,671		33,480		33,793		33,556		33,450		1		1
Retained earnings	43,167		40,088		37,653		35,361		36,552		8		18
Accumulated other comprehensive income	1,783		3,494		3,833		3,981		3,679		(49)		(52)
Treasury stock, at cost	(17,440)		(16,865)		(16,862)		(16,860)		(16,858)		3		3
Total stockholders’ equity	61,188		60,204		58,424		56,045		56,830		2		8
Total liabilities and stockholders’ equity	$	425,175	$	421,602	$	421,883	$	421,296	$	396,878	1		7

CAPITAL ONE FINANCIAL CORPORATION (COF)

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

(1)Total net revenue was reduced by $180 million in Q1 2021, $177 million in Q4 2020, $235 million in Q3 2020, $318 million in Q2 2020 and $389 million in Q1 2020 for credit card finance charges and fees charged-off as uncollectible.

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

(3)On December 1, 2020, we redeemed all outstanding shares of our fixed rate 6.20% non-cumulative perpetual preferred stock Series F, which reduced our net income available to common shareholders by $17 million in Q4 2020. On March 2, 2020, we redeemed all outstanding shares of our fixed rate 6.00% non-cumulative perpetual preferred stock Series B, which increased our net loss available to common shareholders by $22 million in Q1 2020.

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

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

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

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

(8)Return on average common equity is calculated based on net income (loss) available to common stockholders less income (loss) from discontinued operations, net of tax, for the period, divided by average common equity. Our calculation of return on average common equity may not be comparable to similarly-titled measures reported by other companies.

(9)Return on average tangible common equity (“ROTCE”) is a non-GAAP measure calculated based on net income (loss) available to common stockholders less income (loss) from discontinued operations, net of tax, for the period, divided by average tangible common equity (“TCE”). Our calculation of return on average TCE may not be comparable to similarly-titled measures reported by other companies. See “Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures” for additional information on non-GAAP measures.

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

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

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

(13)Metrics include the impact of COVID-19 customer assistance programs where applicable.

(14)Capital ratios as of the end of Q1 2021 are preliminary and therefore subject to change. See “Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures” for information on the calculation of each of these ratios.

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

** Not meaningful.

CAPITAL ONE FINANCIAL CORPORATION (COF)

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


	2021 Q1						2020 Q4						2020 Q1
(Dollars in millions, except as noted)	Average Balance		Interest Income/ Expense		Yield/Rate		Average Balance		Interest Income/ Expense		Yield/Rate		Average Balance		Interest Income/ Expense		Yield/Rate
Interest-earning assets:
Loans, including loans held for sale	$	246,675	$	5,854	9.49	%	$	251,135	$	5,954	9.48	%	$	263,631	$	6,542	9.93	%
Investment securities	98,296		391		1.59		97,640		422		1.73		78,212		530		2.71
Cash equivalents and other	43,601		16		0.15		39,477		15		0.15		13,504		37		1.10
Total interest-earning assets	$	388,572	$	6,261	6.45		$	388,252	$	6,391	6.58		$	355,347	$	7,109	8.00
Interest-bearing liabilities:
Interest-bearing deposits	$	273,358	$	269	0.39		$	274,143	$	347	0.51		$	241,115	$	731	1.21
Securitized debt obligations	12,240		32		1.05		12,651		34		1.08		18,054		99		2.20
Senior and subordinated notes	26,968		129		1.91		27,386		128		1.87		31,342		239		3.04
Other borrowings and liabilities	2,210		9		1.62		2,095		9		1.75		3,779		15		1.62
Total interest-bearing liabilities	$	314,776	$	439	0.56		$	316,275	$	518	0.65		$	294,290	$	1,084	1.47
Net interest income/spread			$	5,822	5.89				$	5,873	5.93				$	6,025	6.53
Impact of non-interest-bearing funding					0.10						0.12						0.25
Net interest margin					5.99	%					6.05	%					6.78	%

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 7: Loan Information and Performance Statistics


											2021 Q1 vs.
	2021		2020		2020		2020		2020		2020		2020
(Dollars in millions, except as noted)	Q1		Q4		Q3		Q2		Q1		Q4		Q1
Loans Held for Investment (Period-End)
Credit card:
Domestic credit card(1)	$	91,099	$	98,504	$	95,541	$	99,390	$	109,549	(8)	%	(17)	%
International card businesses	8,028		8,452		8,100		7,920		8,248		(5)		(3)
Total credit card	99,127		106,956		103,641		107,310		117,797		(7)		(16)
Consumer banking:
Auto	67,059		65,762		65,394		63,319		61,364		2		9

Retail banking	3,143		3,126		3,294		3,393		2,669		1		18
Total consumer banking	70,202		68,888		68,688		66,712		64,033		2		10
Commercial banking:
Commercial and multifamily real estate	30,008		30,681		31,197		30,953		32,373		(2)		(7)
Commercial and industrial	43,794		45,099		44,697		46,537		48,787		(3)		(10)


Total commercial banking	73,802		75,780		75,894		77,490		81,160		(3)		(9)

Total loans held for investment	$	243,131	$	251,624	$	248,223	$	251,512	$	262,990	(3)		(8)
Loans Held for Investment (Average)
Credit card:
Domestic credit card	$	92,594	$	95,453	$	97,306	$	100,996	$	113,711	(3)	%	(19)	%
International card businesses	7,940		8,108		8,061		7,752		9,065		(2)		(12)
Total credit card	100,534		103,561		105,367		108,748		122,776		(3)		(18)
Consumer banking:
Auto	66,185		65,590		64,476		61,798		61,005		1		8

Retail banking	3,049		3,218		3,346		3,053		2,666		(5)		14
Total consumer banking	69,234		68,808		67,822		64,851		63,671		1		9
Commercial banking:
Commercial and multifamily real estate	29,856		30,825		30,918		31,723		31,081		(3)		(4)
Commercial and industrial	44,313		44,495		45,404		48,036		45,361		—		(2)


Total commercial banking	74,169		75,320		76,322		79,759		76,442		(2)		(3)

Total average loans held for investment	$	243,937	$	247,689	$	249,511	$	253,358	$	262,889	(2)		(7)


											2021 Q1 vs.
	2021		2020		2020		2020		2020		2020		2020
	Q1		Q4		Q3		Q2		Q1		Q4		Q1
Net Charge-Off Rates
Credit card:
Domestic credit card	2.54	%	2.69	%	3.64	%	4.53	%	4.68	%	(15)	bps	(214)	bps
International card businesses	2.30		1.86		2.89		3.47		4.65		44		(235)
Total credit card	2.52		2.63		3.58		4.46		4.68		(11)		(216)
Consumer banking:
Auto	0.47		0.47		0.23		1.16		1.51		—		(104)
Retail banking	1.68		1.88		1.38		1.78		2.37		(20)		(69)
Total consumer banking	0.52		0.53		0.28		1.19		1.54		(1)		(102)
Commercial banking:
Commercial and multifamily real estate	0.06		0.02		0.41		0.09		—		4		6
Commercial and industrial	0.11		0.74		0.45		0.78		0.96		(63)		(85)
Total commercial banking	0.09		0.45		0.43		0.51		0.57		(36)		(48)
Total net charge-offs	1.21		1.38		1.72		2.38		2.72		(17)		(151)
30+ Day Performing Delinquency Rates(2)
Credit card:
Domestic credit card	2.24	%	2.42	%	2.21	%	2.74	%	3.69	%	(18)	bps	(145)	bps
International card businesses	2.51		2.61		2.15		2.71		3.66		(10)		(115)
Total credit card	2.26		2.44		2.20		2.74		3.69		(18)		(143)
Consumer banking:
Auto	3.12		4.78		3.76		3.28		5.29		(166)		(217)

Retail banking	1.02		1.32		0.83		0.89		1.27		(30)		(25)
Total consumer banking	3.03		4.62		3.62		3.16		5.12		(159)		(209)
Nonperforming Loans and Nonperforming Assets Rates(3)(4)
Credit card:
International card businesses	0.17	%	0.24	%	0.25	%	0.29	%	0.29	%	(7)	bps	(12)	bps
Total credit card	0.01		0.02		0.02		0.02		0.02		(1)		(1)
Consumer banking:
Auto	0.29		0.45		0.36		0.41		0.62		(16)		(33)

Retail banking	1.16		0.96		0.77		0.70		0.88		20		28
Total consumer banking	0.33		0.47		0.38		0.43		0.63		(14)		(30)
Commercial banking:
Commercial and multifamily real estate	0.78		0.65		0.58		0.54		0.22		13		56
Commercial and industrial	1.02		1.00		1.31		1.06		0.87		2		15


Total commercial banking	0.92		0.86		1.01		0.85		0.61		6		31
Total nonperforming loans	0.38		0.40		0.42		0.38		0.35		(2)		3
Total nonperforming assets	0.40		0.41		0.44		0.39		0.37		(1)		3

CAPITAL ONE FINANCIAL CORPORATION (COF)

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



	Three Months Ended March 31, 2021
	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, 2020	$	10,650	$	541	$	11,191	$	2,615	$	100	$	2,715	$	1,658	$	15,564
Charge-offs	(904)		(89)		(993)		(324)		(18)		(342)		(19)		(1,354)
Recoveries	317		43		360		246		5		251		3		614
Net charge-offs	(587)		(46)		(633)		(78)		(13)		(91)		(16)		(740)
Provision (benefit) for credit losses	(491)		(1)		(492)		(132)		6		(126)		(195)		(813)
Allowance build (release) for credit losses	(1,078)		(47)		(1,125)		(210)		(7)		(217)		(211)		(1,553)
Other changes(5)	—		6		6		—		—		—		—		6
Balance as of March 31, 2021	9,572		500		10,072		2,405		93		2,498		1,447		14,017
Reserve for unfunded lending commitments:
Balance as of December 31, 2020	—		—		—		—		—		—		195		195
Provision (benefit) for losses on unfunded lending commitments	—		—		—		—		—		—		(8)		(8)

Balance as of March 31, 2021	—		—		—		—		—		—		187		187
Combined allowance and reserve as of March 31, 2021	$	9,572	$	500	$	10,072	$	2,405	$	93	$	2,498	$	1,634	$	14,204

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 9: Financial Summary—Business Segment Results


	Three Months Ended March 31, 2021
(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking(6)		Other(6)		Total
Net interest income (loss)	$	3,372	$	2,030	$	520	$	(100)	$	5,822
Non-interest income (loss)	1,029		141		240		(119)		1,291
Total net revenue (loss)	4,401		2,171		760		(219)		7,113
Provision (benefit) for credit losses	(492)		(126)		(203)		(2)		(823)
Non-interest expense	2,135		1,117		419		69		3,740
Income (loss) from continuing operations before income taxes	2,758		1,180		544		(286)		4,196
Income tax provision (benefit)	653		278		128		(190)		869
Income (loss) from continuing operations, net of tax	$	2,105	$	902	$	416	$	(96)	$	3,327

	Three Months Ended December 31, 2020
(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking(6)		Other(6)		Total
Net interest income (loss)	$	3,413	$	2,012	$	522	$	(74)	$	5,873
Non-interest income	1,054		136		268		6		1,464
Total net revenue (loss)	4,467		2,148		790		(68)		7,337
Provision (benefit) for credit losses	231		60		(28)		1		264
Non-interest expense	2,311		1,121		445		132		4,009
Income (loss) from continuing operations before income taxes	1,925		967		373		(201)		3,064
Income tax provision (benefit)	454		230		88		(276)		496
Income from continuing operations, net of tax	$	1,471	$	737	$	285	$	75	$	2,568

	Three Months Ended March 31, 2020
(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking(6)		Other(6)		Total
Net interest income	$	3,702	$	1,657	$	491	$	175	$	6,025
Non-interest income (loss)	911		126		238		(51)		1,224
Total net revenue	4,613		1,783		729		124		7,249
Provision for credit losses	3,702		860		856		5		5,423
Non-interest expense	2,208		991		412		118		3,729
Income (loss) from continuing operations before income taxes	(1,297)		(68)		(539)		1		(1,903)
Income tax benefit	(306)		(16)		(128)		(113)		(563)
Income (loss) from continuing operations, net of tax	$	(991)	$	(52)	$	(411)	$	114	$	(1,340)

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 10: Financial & Statistical Summary—Credit Card Business


																2021 Q1 vs.
	2021			2020			2020			2020			2020			2020		2020
(Dollars in millions, except as noted)	Q1			Q4			Q3			Q2			Q1			Q4		Q1
Credit Card
Earnings:
Net interest income	$	3,372		$	3,413		$	3,292		$	3,369		$	3,702		(1)%		(9)%
Non-interest income	1,029			1,054			1,013			845			911			(2)		13
Total net revenue	4,401			4,467			4,305			4,214			4,613			(1)		(5)
Provision (benefit) for credit losses	(492)			231			450			2,944			3,702			**		**
Non-interest expense	2,135			2,311			2,003			1,969			2,208			(8)		(3)
Income (loss) from continuing operations before income taxes	2,758			1,925			1,852			(699)			(1,297)			43		**
Income tax provision (benefit)	653			454			438			(166)			(306)			44		**
Income (loss) from continuing operations, net of tax	$	2,105		$	1,471		$	1,414		$	(533)		$	(991)		43		**
Selected performance metrics:
Period-end loans held for investment(1)	$	99,127		$	106,956		$	103,641		$	107,310		$	117,797		(7)		(16)
Average loans held for investment	100,534			103,561			105,367			108,748			122,776			(3)		(18)
Average yield on loans outstanding(7)	14.49		%	14.24		%	13.83		%	13.72		%	14.46		%	25	bps	3	bps
Total net revenue margin(8)	17.17			16.92			16.34			15.50			15.03			25		214
Net charge-off rate	2.52			2.63			3.58			4.46			4.68			(11)		(216)
30+ day performing delinquency rate	2.26			2.44			2.20			2.74			3.69			(18)		(143)
30+ day delinquency rate	2.27			2.45			2.21			2.75			3.70			(18)		(143)
Nonperforming loan rate(3)	0.01			0.02			0.02			0.02			0.02			(1)		(1)
Purchase volume(9)	$	108,333		$	117,141		$	107,102		$	90,149		$	99,920		(8)%		8%


																2021 Q1 vs.
	2021			2020			2020			2020			2020			2020		2020
(Dollars in millions, except as noted)	Q1			Q4			Q3			Q2			Q1			Q4		Q1
Domestic Card
Earnings:
Net interest income	$	3,095		$	3,129		$	2,995		$	3,094		$	3,381		(1)%		(8)%
Non-interest income	959			994			952			795			842			(4)		14
Total net revenue	4,054			4,123			3,947			3,889			4,223			(2)		(4)
Provision (benefit) for credit losses	(491)			231			378			2,906			3,464			**		**
Non-interest expense	1,923			2,063			1,802			1,776			1,984			(7)		(3)
Income (loss) from continuing operations before income taxes	2,622			1,829			1,767			(793)			(1,225)			43		**
Income tax provision (benefit)	619			433			419			(188)			(290)			43		**
Income (loss) from continuing operations, net of tax	$	2,003		$	1,396		$	1,348		$	(605)		$	(935)		43		**
Selected performance metrics:
Period-end loans held for investment(1)	$	91,099		$	98,504		$	95,541		$	99,390		$	109,549		(8)		(17)
Average loans held for investment	92,594			95,453			97,306			100,996			113,711			(3)		(19)
Average yield on loans outstanding(7)	14.34		%	14.07		%	13.57		%	13.52		%	14.30		%	27	bps	4	bps
Total net revenue margin(8)	17.15			16.91			16.22			15.40			14.86			24		229
Net charge-off rate	2.54			2.69			3.64			4.53			4.68			(15)		(214)
30+ day performing delinquency rate	2.24			2.42			2.21			2.74			3.69			(18)		(145)
Purchase volume(9)	$	99,960		$	107,572		$	98,107		$	82,860		$	92,248		(7)%		8%
Refreshed FICO scores:(10)
Greater than 660	70		%	69		%	69		%	67		%	65		%	1		5
660 or below	30			31			31			33			35			(1)		(5)
Total	100		%	100		%	100		%	100		%	100		%

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 11: Financial & Statistical Summary—Consumer Banking Business


																2021 Q1 vs.
	2021			2020			2020			2020			2020			2020		2020
(Dollars in millions, except as noted)	Q1			Q4			Q3			Q2			Q1			Q4		Q1
Consumer Banking
Earnings:
Net interest income	$	2,030		$	2,012		$	1,904		$	1,665		$	1,657		1%		23%
Non-interest income	141			136			107			97			126			4		12
Total net revenue	2,171			2,148			2,011			1,762			1,783			1		22
Provision (benefit) for credit losses	(126)			60			(43)			876			860			**		**
Non-interest expense	1,117			1,121			1,011			1,036			991			—		13
Income (loss) from continuing operations before income taxes	1,180			967			1,043			(150)			(68)			22		**
Income tax provision (benefit)	278			230			247			(36)			(16)			21		**
Income (loss) from continuing operations, net of tax	$	902		$	737		$	796		$	(114)		$	(52)		22		**
Selected performance metrics:
Period-end loans held for investment	$	70,202		$	68,888		$	68,688		$	66,712		$	64,033		2		10
Average loans held for investment	69,234			68,808			67,822			64,851			63,671			1		9
Average yield on loans held for investment(7)	8.16		%	8.28		%	8.36		%	8.41		%	8.46		%	(12)	bps	(30)	bps
Auto loan originations	$	8,833		$	7,371		$	8,979		$	8,292		$	7,640		20%		16%
Period-end deposits	254,001			249,815			249,684			246,804			217,607			2		17
Average deposits	249,499			249,419			248,418			232,293			215,071			—		16
Average deposits interest rate	0.36		%	0.47		%	0.66		%	0.89		%	1.06		%	(11)	bps	(70)	bps
Net charge-off rate	0.52			0.53			0.28			1.19			1.54			(1)		(102)
30+ day performing delinquency rate	3.03			4.62			3.62			3.16			5.12			(159)		(209)
30+ day delinquency rate	3.25			5.00			3.90			3.48			5.65			(175)		(240)
Nonperforming loan rate(3)	0.33			0.47			0.38			0.43			0.63			(14)		(30)
Nonperforming asset rate(4)	0.39			0.54			0.43			0.46			0.71			(15)		(32)
Auto—At origination FICO scores:(11)
Greater than 660	47		%	46		%	46		%	46		%	47		%	1%		—
621 - 660	20			20			20			20			20			—		—
620 or below	33			34			34			34			33			(1)		—
Total	100		%	100		%	100		%	100		%	100		%

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 12: Financial & Statistical Summary—Commercial Banking Business


																2021 Q1 vs.
	2021			2020			2020			2020			2020			2020		2020
(Dollars in millions, except as noted)	Q1			Q4			Q3			Q2			Q1			Q4		Q1
Commercial Banking
Earnings:
Net interest income	$	520		$	522		$	517		$	518		$	491		—		6%
Non-interest income	240			268			237			180			238			(10)%		1
Total net revenue(6)	760			790			754			698			729			(4)		4
Provision (benefit) for credit losses	(203)			(28)			(74)			427			856			**		**
Non-interest expense	419			445			424			425			412			(6)		2
Income (loss) from continuing operations before income taxes	544			373			404			(154)			(539)			46		**
Income tax provision (benefit)	128			88			95			(36)			(128)			45		**
Income (loss) from continuing operations, net of tax	$	416		$	285		$	309		$	(118)		$	(411)		46		**
Selected performance metrics:
Period-end loans held for investment	$	73,802		$	75,780		$	75,894		$	77,490		$	81,160		(3)		(9)
Average loans held for investment	74,169			75,320			76,322			79,759			76,442			(2)		(3)
Average yield on loans held for investment(6)(7)	2.76		%	2.83		%	2.82		%	3.00		%	3.88		%	(7)	bps	(112)	bps
Period-end deposits	$	41,552		$	39,590		$	36,783		$	35,669		$	32,822		5%		27%
Average deposits	40,107			38,676			36,278			34,635			32,238			4		24
Average deposits interest rate	0.18		%	0.23		%	0.25		%	0.30		%	0.89		%	(5)	bps	(71)	bps
Net charge-off rate	0.09			0.45			0.43			0.51			0.57			(36)		(48)
Nonperforming loan rate(3)	0.92			0.86			1.01			0.85			0.61			6		31
Nonperforming asset rate(4)	0.92			0.86			1.01			0.85			0.61			6		31
Risk category:(12)
Noncriticized	$	66,299		$	67,964		$	68,533		$	70,881		$	77,714		(2)%		(15)%
Criticized performing	6,821			7,166			6,593			5,949			2,952			(5)		131
Criticized nonperforming	682			650			768			660			494			5		38
Total commercial banking loans	$	73,802		$	75,780		$	75,894		$	77,490		$	81,160		(3)		(9)
Risk category as a percentage of period-end loans held for investment:(12)
Noncriticized	89.9		%	89.6		%	90.3		%	91.4		%	95.8		%	30	bps	(590)	bps
Criticized performing	9.2			9.5			8.7			7.7			3.6			(30)		560
Criticized nonperforming	0.9			0.9			1.0			0.9			0.6			—		30

Total commercial banking loans	100.0		%	100.0		%	100.0		%	100.0		%	100.0		%

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 13: Financial & Statistical Summary—Other and Total


											2021 Q1 vs.
	2021		2020		2020		2020		2020		2020		2020
(Dollars in millions)	Q1		Q4		Q3		Q2		Q1		Q4		Q1
Other
Earnings:
Net interest income (loss)	$	(100)	$	(74)	$	(158)	$	(92)	$	175	35%		**
Non-interest income (loss)	(119)		6		469		(26)		(51)		**		133%
Total net revenue (loss)(6)	(219)		(68)		311		(118)		124		**		**
Provision (benefit) for credit losses	(2)		1		(2)		(1)		5		**		**
Non-interest expense(13)	69		132		110		340		118		(48)		(42)
Income (loss) from continuing operations before income taxes	(286)		(201)		203		(457)		1		42		**
Income tax provision (benefit)	(190)		(276)		316		(305)		(113)		(31)		68
Income (loss) from continuing operations, net of tax	$	(96)	$	75	$	(113)	$	(152)	$	114	**		**
Selected performance metrics:


Period-end deposits	$	14,775	$	16,037	$	19,258	$	21,765	$	19,260	(8)		(23)
Average deposits	15,450		16,418		20,820		21,416		17,344		(6)		(11)
Total
Earnings:
Net interest income	$	5,822	$	5,873	$	5,555	$	5,460	$	6,025	(1)	%	(3)	%
Non-interest income	1,291		1,464		1,826		1,096		1,224		(12)		5
Total net revenue	7,113		7,337		7,381		6,556		7,249		(3)		(2)
Provision (benefit) for credit losses	(823)		264		331		4,246		5,423		**		**
Non-interest expense	3,740		4,009		3,548		3,770		3,729		(7)		—
Income (loss) from continuing operations before income taxes	4,196		3,064		3,502		(1,460)		(1,903)		37		**
Income tax provision (benefit)	869		496		1,096		(543)		(563)		75		**
Income (loss) from continuing operations, net of tax	$	3,327	$	2,568	$	2,406	$	(917)	$	(1,340)	30		**
Selected performance metrics:
Period-end loans held for investment	$	243,131	$	251,624	$	248,223	$	251,512	$	262,990	(3)		(8)
Average loans held for investment	243,937		247,689		249,511		253,358		262,889		(2)		(7)
Period-end deposits	310,328		305,442		305,725		304,238		269,689		2		15
Average deposits	305,056		304,513		305,516		288,344		264,653		—		15

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 14: Notes to Loan, Allowance and Business Segment Disclosures (Tables 7—13)

(1)We reclassified $2.1 billion in partnership loans to held for sale as of September 30, 2020.

(2)Metrics include the impact of COVID-19 customer assistance programs where applicable.

(3)Nonperforming loan rates are calculated based on nonperforming loans for each category divided by period-end total loans held for investment for each respective category.

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

(5)Represents foreign currency translation adjustments.

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

(7)Average yield is calculated based on annualized interest income for the period divided by average loans during the period. Annualized interest income does not include any allocations, such as funds transfer pricing.

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

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

(10)Percentages represent period-end loans held for investment in each credit score category. Domestic card credit scores generally represent FICO scores. These scores are obtained from one of the major credit bureaus at origination and are refreshed monthly thereafter. We approximate non-FICO credit scores to comparable FICO scores for consistency purposes. Balances for which no credit score is available or the credit score is invalid are included in the 660 or below category.

(11)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.

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

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

** Not meaningful.

CAPITAL ONE FINANCIAL CORPORATION (COF)

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


	Basel III Standardized Approach
(Dollars in millions, except as noted)	March 31, 2021			December 31, 2020			September 30, 2020			June 30, 2020			March 31, 2020
Regulatory Capital Metrics
Common equity excluding AOCI	$	57,606		$	55,299		$	52,839		$	50,614		$	51,018
Adjustments:
AOCI, net of tax(2)	(13)			(29)			(122)			(145)			(170)
Goodwill, net of related deferred tax liabilities	(14,444)			(14,448)			(14,448)			(14,449)			(14,453)
Intangible assets, net of related deferred tax liabilities	(81)			(86)			(95)			(135)			(151)
Other	(17)			—			—			—			—
Common equity Tier 1 capital	$	43,051		$	40,736		$	38,174		$	35,885		$	36,244
Tier 1 capital	$	47,898		$	45,583		$	43,505		$	41,094		$	41,453
Total capital(3)	54,779			52,788			50,955			48,508			48,775
Risk-weighted assets	295,187			297,903			293,852			290,222			302,871
Adjusted average assets(4)	408,596			406,762			409,602			398,062			377,360
Capital Ratios
Common equity Tier 1 capital(5)	14.6		%	13.7		%	13.0		%	12.4		%	12.0		%
Tier 1 capital(6)	16.2			15.3			14.8			14.2			13.7
Total capital(7)	18.6			17.7			17.3			16.7			16.1
Tier 1 leverage(4)	11.7			11.2			10.6			10.3			11.0
Tangible common equity (“TCE”)(8)	10.1			10.0			9.4			8.8			9.6

Reconciliation of Non-GAAP Measures

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


	2021			2020			2020
(Dollars in millions, except per share data and as noted)	Q1			Q4			Q1
Adjusted diluted EPS:
Net income (loss) available to common stockholders (GAAP)	$	3,236		$	2,462		$	(1,420)
Legal reserve activity, including insurance recoveries	—			(37)			45

Cybersecurity Incident expenses, net of insurance	—			6			4



Adjusted net income (loss) available to common stockholders before income tax impacts (non-GAAP)	3,236			2,431			(1,371)
Income tax impacts	—			5			(12)

Adjusted net income (loss) available to common stockholders (non-GAAP)	$	3,236		$	2,436		$	(1,383)

Diluted weighted-average common shares outstanding (in millions) (GAAP)	460.1			460.2			457.6

Diluted EPS (GAAP)	$	7.03		$	5.35		$	(3.10)
Impact of adjustments noted above	—			(0.06)			0.08
Adjusted diluted EPS (non-GAAP)	$	7.03		$	5.29		$	(3.02)

Adjusted efficiency ratio:
Non-interest expense (GAAP)	$	3,740		$	4,009		$	3,729
Legal reserve activity, including insurance recoveries	—			37			(45)
Cybersecurity Incident expenses, net of insurance	—			(6)			(4)



Adjusted non-interest expense (non-GAAP)	$	3,740		$	4,040		$	3,680

Total net revenue (GAAP)	$	7,113		$	7,337		$	7,249




Efficiency ratio (GAAP)	52.58		%	54.64		%	51.44		%
Impact of adjustments noted above	—			42 bps			(67) bps
Adjusted efficiency ratio (non-GAAP)	52.58		%	55.06		%	50.77		%

Adjusted operating efficiency ratio:
Operating expense (GAAP)	$	3,239		$	3,446		$	3,238
Legal reserve activity, including insurance recoveries	—			37			(45)
Cybersecurity Incident expenses, net of insurance	—			(6)			(4)



Adjusted operating expense (non-GAAP)	$	3,239		$	3,477		$	3,189

Total net revenue (GAAP)	$	7,113		$	7,337		$	7,249

Operating efficiency ratio (GAAP)	45.54		%	46.97		%	44.67		%
Impact of adjustments noted above	—			42 bps			(68) bps
Adjusted operating efficiency ratio (non-GAAP)	45.54		%	47.39		%	43.99		%

Reconciliation of Non-GAAP Measures

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


	2021		2020		2020		2020		2020
(Dollars in millions)	Q1		Q4		Q3		Q2		Q1
Tangible Common Equity (Period-End)
Stockholders’ equity	$	61,188	$	60,204	$	58,424	$	56,045	$	56,830
Goodwill and intangible assets(9)	(14,789)		(14,809)		(14,825)		(14,869)		(14,888)
Noncumulative perpetual preferred stock	(4,847)		(4,847)		(5,330)		(5,209)		(5,209)
Tangible common equity	$	41,552	$	40,548	$	38,269	$	35,967	$	36,733
Tangible Common Equity (Average)
Stockholders’ equity	$	60,623	$	59,389	$	57,223	$	57,623	$	58,568
Goodwill and intangible assets(9)	(14,807)		(14,824)		(14,867)		(14,880)		(14,930)
Noncumulative perpetual preferred stock	(4,847)		(5,168)		(5,228)		(5,209)		(5,382)
Tangible common equity	$	40,969	$	39,397	$	37,128	$	37,534	$	38,256
Tangible Assets (Period-End)
Total assets	$	425,175	$	421,602	$	421,883	$	421,296	$	396,878
Goodwill and intangible assets(9)	(14,789)		(14,809)		(14,825)		(14,869)		(14,888)
Tangible assets	$	410,386	$	406,793	$	407,058	$	406,427	$	381,990
Tangible Assets (Average)
Total assets	$	421,808	$	420,011	$	422,854	$	411,075	$	390,380
Goodwill and intangible assets(9)	(14,807)		(14,824)		(14,867)		(14,880)		(14,930)
Tangible assets	$	407,001	$	405,187	$	407,987	$	396,195	$	375,450

__________

(1)Regulatory capital metrics and capital ratios as of March 31, 2021 are preliminary and therefore subject to change.

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

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

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

(5)Common equity Tier 1 capital ratio is a regulatory capital measure calculated based on common equity Tier 1 capital divided by risk-weighted assets.

(6)Tier 1 capital ratio is a regulatory capital measure calculated based on Tier 1 capital divided by risk-weighted assets.

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

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

(9)Includes impact of related deferred taxes.