SEC Filing | Capital One Financial Corp.

View:

Download DOC

Download PDF

Download XLS

Download XBRL

cof-20230720

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

____________________________________

FORM 8-K

____________________________________

CURRENT REPORT

Pursuant to Section 13 or 15(d) of

The Securities Exchange Act of 1934

July 20, 2023

Date of Report (Date of earliest event reported)

____________________________________

CAPITAL ONE FINANCIAL CORPORATION

(Exact name of registrant as specified in its charter)

____________________________________


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

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

(Not applicable)

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

____________________________________

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

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

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

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

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

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


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

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

Emerging growth company ☐

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

Item 2.02 Results of Operations and Financial Condition.

On July 20, 2023, Capital One Financial Corporation (the “Company”) issued a press release announcing its financial results for the second quarter ended June 30, 2023. 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 Ju ly 2 0 , 2023 - Second Quarter 2023
99.2						Financial Supplement - Second Quarter 2023
104						The cover page from this Current Report on Form 8-K, formatted in Inline XBRL

Earnings Conference Call Webcast Information.

The Company will hold an earnings conference call on July 20, 2023 at 5:00 PM Eastern Time. The conference call will be accessible through live webcast. Interested investors and other individuals can access the webcast via the Company’s home page (www.capitalone.com). Under “About,” choose “Investors” to access the Investor Center and view and/or download the earnings press release, the financial supplement, including a reconciliation of non-GAAP financial measures, and the earnings release presentation. A replay of the webcast will be archived on the Company’s website through August 3, 2023 at 5:00 PM Eastern Time.

SIGNATURE

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

CAPITAL ONE FINANCIAL CORPORATION

Date: July 20, 2023

By:

/s/ TIMOTHY P. GOLDEN

Timothy P. Golden

Controller and Principal Accounting Officer

Document

Exhibit 99.1

News Release

https://cdn.kscope.io/96e1c6be59cd73137c390403c9486eb3-earningsslidesvfinal1b58aa.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: July 20, 2023

Capital One Reports Second Quarter 2023 Net Income of $1.4 billion,
or $3.52 per share

McLean, Va. (July 20, 2023) – Capital One Financial Corporation (NYSE: COF) today announced net income for the second quarter of 2023 of $1.4 billion, or $3.52 per diluted common share, compared with net income of $960 million, or $2.31 per diluted common share in the first quarter of 2023, and with net income of $2.0 billion, or $4.96 per diluted common share in the second quarter of 2022.

“We continue to lean into attractive opportunities to grow and build our franchise in our domestic card and national retail bank businesses, and our opportunities are enhanced by our technology transformation." said Richard D. Fairbank, Founder, Chairman, and Chief Executive Officer. "Our investments to build and leverage a modern technology infrastructure are expanding our opportunities and driving value creation over the long-term.”

All comparisons below are for the second quarter of 2023 compared with the first quarter of 2023 unless otherwise noted.

Second Quarter 2023 Income Statement Summary:

•Total net revenue increased 1 percent to $9.0 billion.

•Total non-interest expense decreased 3 percent to $4.8 billion:

◦1 percent decrease in marketing.

◦3 percent decrease in operating expenses.

•Pre-provision earnings(1) increased 7 percent to $4.2 billion.

•Provision for credit losses decreased $305 million to $2.5 billion:

◦Net charge-offs of $2.2 billion.

◦$318 million loan reserve build.

•Net interest margin of 6.48 percent, a decrease of 12 basis points.

•Efficiency ratio of 53.20 percent.

•Operating efficiency ratio of 43.36 percent.

(1) Pre-provision earnings is a non-GAAP metric calculated based on total net revenue less non-interest expense for the period. Management believes that this financial metric is useful in assessing the ability of a lending institution to generate income in excess of its provision for credit losses. See our Financial Supplement, filed as Exhibit 99.2 to our Current Report on From 8-K on July 20, 2023 with the Securities and Exchange Commission (the “SEC”), “Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures” for a reconciliation and additional information on non-GAAP measures.

Capital One Second Quarter 2023 Earnings

Page 2

Second Quarter 2023 Balance Sheet Summary:

•Common equity Tier 1 capital ratio under Basel III Standardized Approach of 12.7 percent.

•Period-end loans held for investment in the quarter increased $2.5 billion, or 1 percent, to $311.3 billion.

◦Credit Card period-end loans increased $5.3 billion, or 4 percent, to $142.5 billion.

•Domestic Card period-end loans increased $5.0 billion, or 4 percent, to $136.0 billion.

◦Consumer Banking period-end loans decreased $871 million, or 1 percent, to $77.3 billion.

•Auto period-end loans decreased $811 million, or 1 percent, to $75.8 billion.

◦Commercial Banking period-end loans decreased $2.0 billion, or 2 percent, to $91.6 billion.

•Average loans held for investment in the quarter increased $1.9 billion, or 1 percent, to $309.7 billion.

◦Credit Card average loans increased $4.1 billion, or 3 percent, to $138.8 billion.

•Domestic Card average loans increased $3.9 billion, or 3 percent, to $132.5 billion.

◦Consumer Banking average loans decreased $1.3 billion, or 2 percent, to $77.7 billion.

•Auto average loans decreased $1.2 billion, or 2 percent, to $76.2 billion.

◦Commercial Banking average loans decreased $897 million, or 1 percent, to $93.2 billion.

•Period-end total deposits decreased $6.1 billion, or 2 percent, to $343.7 billion, while average deposits increased $3.6 billion, or 1 percent, to $343.7 billion.

•Interest-bearing deposits rate paid increased 51 basis points to 2.91 percent.

Capital One Second Quarter 2023 Earnings

Page 3

Earnings Conference Call Webcast Information

The company will hold an earnings conference call on July 20, 2023 at 5:00 PM Eastern Time. The conference call will be accessible through live webcast. Interested investors and other individuals can access the webcast via the company’s home page (www.capitalone.com). Under “About,” choose “Investors” to access the Investor Center and view and/or download the earnings press release, the financial supplement, including a reconciliation of non-GAAP financial measures, and the earnings release presentation. The replay of the webcast will be archived on the company’s website through August 3, 2023 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. Forward-looking statements often use words such as “will,” “anticipate,” “target,” “expect,” “think,” “estimate,” “intend,” “plan,” “goal,” “believe,” “forecast,” “outlook” or other words of similar meaning. Any forward-looking statements made by Capital One or on its behalf speak only as of the date they are made or as of the date indicated, and Capital One does not undertake any obligation to update forward-looking statements as a result of new information, future events or otherwise. 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. For additional information on factors that could materially influence forward-looking statements included in this earnings press release, see the risk factors set forth under “Part I—Item 1A. Risk Factors” in the Annual Report on Form 10-K for the year ended December 31, 2022 filed with the SEC and Quarterly Reports on Form 10-Q and Current Reports on Form 8-K filed with the SEC.

About Capital One

Capital One Financial Corporation (www.capitalone.com) is a financial holding company which, along with its subsidiaries, had $343.7 billion in deposits and $467.8 billion in total assets as of June 30, 2023. 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)

Second Quarter 2023

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	14
	Table 10:	Financial & Statistical Summary—Credit Card Business	15
	Table 11:	Financial & Statistical Summary—Consumer Banking Business	17
	Table 12:	Financial & Statistical Summary—Commercial Banking Business	18
	Table 13:	Financial & Statistical Summary—Other and Total	19
Other
	Table 14:	Notes to Net Interest Margin, Loan, Allowance and Business Segment Disclosures (Tables 6—13)	20
	Table 15:	Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures	21

__________

(1)The information contained in this Financial Supplement is preliminary and based on data available at the time of the earnings presentation. Investors should refer to our Quarterly Report on Form 10-Q for the period ended June 30, 2023 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. See “Table 15 - Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures” for a reconciliation of any non-GAAP financial measures.

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 1: Financial Summary—Consolidated


											2023 Q2 vs.				Six Months Ended June 30,
(Dollars in millions, except per share data and as noted)	2023		2023		2022		2022		2022		2023		2022						2023 vs.
	Q2		Q1		Q4		Q3		Q2		Q1		Q2		2023		2022		2022
Income Statement
Net interest income	$	7,113	$	7,186	$	7,197	$	7,003	$	6,517	(1)	%	9	%	$	14,299	$	12,914	11	%
Non-interest income	1,899		1,717		1,843		1,802		1,715		11		11		3,616		3,491		4
Total net revenue(1)	9,012		8,903		9,040		8,805		8,232		1		9		17,915		16,405		9
Provision for credit losses	2,490		2,795		2,416		1,669		1,085		(11)		129		5,285		1,762		200
Non-interest expense:
Marketing	886		897		1,118		978		1,003		(1)		(12)		1,783		1,921		(7)
Operating expense	3,908		4,048		3,962		3,971		3,580		(3)		9		7,956		7,213		10
Total non-interest expense	4,794		4,945		5,080		4,949		4,583		(3)		5		9,739		9,134		7
Income from continuing operations before income taxes	1,728		1,163		1,544		2,187		2,564		49		(33)		2,891		5,509		(48)
Income tax provision	297		203		312		493		533		46		(44)		500		1,075		(53)


Net income	1,431		960		1,232		1,694		2,031		49		(30)		2,391		4,434		(46)
Dividends and undistributed earnings allocated to participating securities(2)	(23)		(16)		(14)		(21)		(25)		44		(8)		(39)		(53)		(26)
Preferred stock dividends	(57)		(57)		(57)		(57)		(57)		—		—		(114)		(114)		—

Net income available to common stockholders	$	1,351	$	887	$	1,161	$	1,616	$	1,949	52		(31)		$	2,238	$	4,267	(48)
Common Share Statistics
Basic earnings per common share:(2)


Net income per basic common share	$	3.53	$	2.32	$	3.03	$	4.21	$	4.98	52	%	(29)	%	$	5.85	$	10.65	(45)	%
Diluted earnings per common share:(2)


Net income per diluted common share	$	3.52	$	2.31	$	3.03	$	4.20	$	4.96	52	%	(29)	%	$	5.83	$	10.61	(45)	%
Weighted-average common shares outstanding (in millions):
Basic	382.8		382.6		382.6		383.4		391.2		—		(2)	%	382.7		400.8		(5)	%
Diluted	383.7		383.8		383.7		384.6		392.6		—		(2)		383.8		402.3		(5)
Common shares outstanding (period-end, in millions)	381.4		382.0		381.3		382.0		383.8		—		(1)		381.4		383.8		(1)
Dividends declared and paid per common share	$	0.60	$	0.60	$	0.60	$	0.60	$	0.60	—		—		$	1.20	$	1.20	—
Tangible book value per common share (period-end)(3)	90.07		90.86		86.11		81.38		87.84		(1)	%	3		90.07		87.84		3


											2023 Q2 vs.				Six Months Ended June 30,
(Dollars in millions)	2023		2023		2022		2022		2022		2023		2022						2023 vs.
	Q2		Q1		Q4		Q3		Q2		Q1		Q2		2023		2022		2022
Balance Sheet (Period-End)
Loans held for investment	$	311,323	$	308,836	$	312,331	$	303,943	$	296,384	1	%	5	%	$	311,323	$	296,384	5	%
Interest-earning assets	441,250		445,166		427,248		415,262		406,565		(1)		9		441,250		406,565		9
Total assets	467,800		471,660		455,249		444,232		440,288		(1)		6		467,800		440,288		6
Interest-bearing deposits	314,393		318,641		300,789		282,802		270,881		(1)		16		314,393		270,881		16
Total deposits	343,705		349,827		332,992		317,193		307,885		(2)		12		343,705		307,885		12
Borrowings	50,258		48,777		48,715		54,607		58,938		3		(15)		50,258		58,938		(15)
Common equity	49,713		49,807		47,737		46,015		48,564		—		2		49,713		48,564		2
Total stockholders’ equity	54,559		54,653		52,582		50,861		53,410		—		2		54,559		53,410		2
Balance Sheet (Average Balances)
Loans held for investment	$	309,655	$	307,756	$	306,881	$	300,186	$	286,110	1	%	8	%	$	308,711	$	280,756	10	%
Interest-earning assets	439,139		435,199		421,051		412,171		398,934		1		10		437,180		396,521		10
Total assets	466,652		462,324		449,659		447,088		435,327		1		7		464,459		432,806		7
Interest-bearing deposits	313,207		308,788		292,793		275,900		268,104		1		17		311,010		269,953		15
Total deposits	343,678		340,123		326,558		311,928		305,954		1		12		341,910		307,765		11
Borrowings	48,468		48,016		49,747		58,628		53,208		1		(9)		48,243		47,773		1
Common equity	50,511		49,927		47,594		49,696		49,319		1		2		50,221		51,940		(3)
Total stockholders’ equity	55,357		54,773		52,439		54,541		54,165		1		2		55,066		56,786		(3)

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 2: Selected Metrics—Consolidated


																2023 Q2 vs.				Six Months Ended June 30,
(Dollars in millions, except as noted)	2023			2023			2022			2022			2022			2023		2022								2023 vs.
	Q2			Q1			Q4			Q3			Q2			Q1		Q2		2023			2022			2022
Performance Metrics
Net interest income growth (period over period)	(1)		%	—			3		%	7		%	2		%	**		**		11		%	12		%	**
Non-interest income growth (period over period)	11			(7)		%	2			5			(3)			**		**		4			19			**
Total net revenue growth (period over period)	1			(2)			3			7			1			**		**		9			13			**
Total net revenue margin(4)	8.21			8.18			8.59			8.55			8.25			3	bps	(4)	bps	8.20			8.27			(7)	bps
Net interest margin(5)	6.48			6.60			6.84			6.80			6.54			(12)		(6)		6.54			6.51			3
Return on average assets	1.23			0.83			1.10			1.52			1.87			40		(64)		1.03			2.05			(102)
Return on average tangible assets(6)	1.27			0.86			1.13			1.57			1.93			41		(66)		1.06			2.12			(106)
Return on average common equity(7)	10.70			7.11			9.76			13.01			15.81			359		(511)		8.91			16.43			(752)
Return on average tangible common equity(8)	15.30			10.15			14.22			18.59			22.63			515		(733)		12.74			23.03			(1,029)

Efficiency ratio(9)	53.20			55.54			56.19			56.21			55.67			(234)		(247)		54.36			55.68			(132)
Operating efficiency ratio(10)	43.36			45.47			43.83			45.10			43.49			(211)		(13)		44.41			43.97			44
Effective income tax rate for continuing operations	17.2			17.5			20.2			22.5			20.8			(30)		(360)		17.3			19.5			(220)
Employees (period-end, in thousands)	55.6			56.1			56.0			55.1			53.6			(1)%		4%		55.6			53.6			4%
Credit Quality Metrics
Allowance for credit losses	$	14,646		$	14,318		$	13,240		$	12,209		$	11,491		2%		27%		$	14,646		$	11,491		27%
Allowance coverage ratio	4.70		%	4.64		%	4.24		%	4.02		%	3.88		%	6	bps	82	bps	4.70		%	3.88		%	82	bps
Net charge-offs	$	2,185		$	1,697		$	1,430		$	931		$	845		29%		159%		$	3,882		$	1,612		141%
Net charge-off rate(11)	2.82		%	2.21		%	1.86		%	1.24		%	1.18		%	61	bps	164	bps	2.52		%	1.15		%	137	bps
30+ day performing delinquency rate	3.08			2.88			2.96			2.58			2.36			20		72		3.08			2.36			72
30+ day delinquency rate	3.36			3.09			3.21			2.78			2.54			27		82		3.36			2.54			82
Capital Ratios(12)
Common equity Tier 1 capital	12.7		%	12.5		%	12.5		%	12.2		%	12.1		%	20	bps	60	bps	12.7		%	12.1		%	60	bps
Tier 1 capital	14.0			13.9			13.9			13.6			13.5			10		50		14.0			13.5			50
Total capital	16.0			15.9			15.8			15.7			15.7			10		30		16.0			15.7			30
Tier 1 leverage	11.0			10.9			11.1			11.0			11.1			10		(10)		11.0			11.1			(10)
Tangible common equity (“TCE”)(13)	7.6			7.6			7.5			7.2			7.9			—		(30)		7.6			7.9			(30)

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 3: Consolidated Statements of Income


											2023 Q2 vs.				Six Months Ended June 30,
(Dollars in millions, except as noted)	2023		2023		2022		2022		2022		2023		2022						2023 vs.
	Q2		Q1		Q4		Q3		Q2		Q1		Q2		2023		2022		2022
Interest income:
Loans, including loans held for sale	$	9,057	$	8,723	$	8,360	$	7,578	$	6,605	4	%	37	%	$	17,780	$	12,972	37	%
Investment securities	639		615		548		499		435		4		47		1,254		837		50
Other	470		416		250		123		55		13		**		886		70		**
Total interest income	10,166		9,754		9,158		8,200		7,095		4		43		19,920		13,879		44
Interest expense:
Deposits	2,277		1,856		1,335		689		293		23		**		4,133		511		**
Securitized debt obligations	236		211		170		120		65		12		**		447		94		**
Senior and subordinated notes	528		489		430		319		194		8		172		1,017		325		**
Other borrowings	12		12		26		69		26		—		(54)		24		35		(31)
Total interest expense	3,053		2,568		1,961		1,197		578		19		**		5,621		965		**
Net interest income	7,113		7,186		7,197		7,003		6,517		(1)		9		14,299		12,914		11
Provision for credit losses	2,490		2,795		2,416		1,669		1,085		(11)		129		5,285		1,762		200
Net interest income after provision for credit losses	4,623		4,391		4,781		5,334		5,432		5		(15)		9,014		11,152		(19)
Non-interest income:
Interchange fees, net	1,213		1,139		1,177		1,195		1,201		6		1		2,352		2,234		5
Service charges and other customer-related fees	411		379		395		415		415		8		(1)		790		815		(3)

Other	275		199		271		192		99		38		178		474		442		7
Total non-interest income	1,899		1,717		1,843		1,802		1,715		11		11		3,616		3,491		4
Non-interest expense:
Salaries and associate benefits	2,317		2,427		2,266		2,187		1,946		(5)		19		4,744		3,972		19
Occupancy and equipment	506		508		554		502		481		—		5		1,014		994		2
Marketing	886		897		1,118		978		1,003		(1)		(12)		1,783		1,921		(7)
Professional services	290		324		481		471		458		(10)		(37)		614		855		(28)
Communications and data processing	344		350		352		349		339		(2)		1		694		678		2
Amortization of intangibles	22		14		25		17		14		57		57		36		28		29
Other	429		425		284		445		342		1		25		854		686		24
Total non-interest expense	4,794		4,945		5,080		4,949		4,583		(3)		5		9,739		9,134		7
Income from continuing operations before income taxes	1,728		1,163		1,544		2,187		2,564		49		(33)		2,891		5,509		(48)
Income tax provision	297		203		312		493		533		46		(44)		500		1,075		(53)


Net income	1,431		960		1,232		1,694		2,031		49		(30)		2,391		4,434		(46)
Dividends and undistributed earnings allocated to participating securities(2)	(23)		(16)		(14)		(21)		(25)		44		(8)		(39)		(53)		(26)
Preferred stock dividends	(57)		(57)		(57)		(57)		(57)		—		—		(114)		(114)		—

Net income available to common stockholders	$	1,351	$	887	$	1,161	$	1,616	$	1,949	52		(31)		$	2,238	$	4,267	(48)


											2023 Q2 vs.				Six Months Ended June 30,
	2023		2023		2022		2022		2022		2023		2022						2023 vs.
	Q2		Q1		Q4		Q3		Q2		Q1		Q2		2023		2022		2022
Basic earnings per common share:(2)


Net income per basic common share	$	3.53	$	2.32	$	3.03	$	4.21	$	4.98	52	%	(29)	%	$	5.85	$	10.65	(45)	%
Diluted earnings per common share:(2)


Net income per diluted common share	$	3.52	$	2.31	$	3.03	$	4.20	$	4.96	52	%	(29)	%	$	5.83	$	10.61	(45)	%
Weighted-average common shares outstanding (in millions):
Basic common shares	382.8		382.6		382.6		383.4		391.2		—		(2)		382.7		400.8		(5)
Diluted common shares	383.7		383.8		383.7		384.6		392.6		—		(2)		383.8		402.3		(5)

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 4: Consolidated Balance Sheets


											2023 Q2 vs.
	2023		2023		2022		2022		2022		2023		2022
(Dollars in millions)	Q2		Q1		Q4		Q3		Q2		Q1		Q2
Assets:
Cash and cash equivalents:
Cash and due from banks	$	3,360	$	3,347	$	5,193	$	3,716	$	4,825	—		(30)	%
Interest-bearing deposits and other short-term investments	38,236		43,166		25,663		21,176		16,728		(11)	%	129
Total cash and cash equivalents	41,596		46,513		30,856		24,892		21,553		(11)		93
Restricted cash for securitization investors	452		460		400		399		697		(2)		(35)
Securities available for sale	78,412		81,925		76,919		75,303		83,022		(4)		(6)
Loans held for investment:
Unsecuritized loans held for investment	280,933		280,093		283,282		277,576		271,339		—		4
Loans held in consolidated trusts	30,390		28,743		29,049		26,367		25,045		6		21
Total loans held for investment	311,323		308,836		312,331		303,943		296,384		1		5
Allowance for credit losses	(14,646)		(14,318)		(13,240)		(12,209)		(11,491)		2		27
Net loans held for investment	296,677		294,518		299,091		291,734		284,893		1		4
Loans held for sale	1,211		363		203		1,729		875		**		38
Premises and equipment, net	4,359		4,365		4,351		4,265		4,238		—		3
Interest receivable	2,297		2,250		2,104		1,853		1,611		2		43
Goodwill	15,060		14,779		14,777		14,771		14,778		2		2
Other assets	27,736		26,487		26,548		29,286		28,621		5		(3)
Total assets	$	467,800	$	471,660	$	455,249	$	444,232	$	440,288	(1)		6


											2023 Q2 vs.
	2023		2023		2022		2022		2022		2023		2022
(Dollars in millions)	Q2		Q1		Q4		Q3		Q2		Q1		Q2
Liabilities:
Interest payable	$	637	$	621	$	527	$	433	$	333	3	%	91	%
Deposits:
Non-interest-bearing deposits	29,312		31,186		32,203		34,391		37,004		(6)		(21)
Interest-bearing deposits	314,393		318,641		300,789		282,802		270,881		(1)		16
Total deposits	343,705		349,827		332,992		317,193		307,885		(2)		12
Securitized debt obligations	17,861		17,813		16,973		15,926		17,466		—		2
Other debt:
Federal funds purchased and securities loaned or sold under agreements to repurchase	649		542		883		528		440		20		48
Senior and subordinated notes	31,627		30,398		30,826		30,615		30,489		4		4
Other borrowings	121		24		33		7,538		10,543		**		(99)
Total other debt	32,397		30,964		31,742		38,681		41,472		5		(22)
Other liabilities	18,641		17,782		20,433		21,138		19,722		5		(5)
Total liabilities	413,241		417,007		402,667		393,371		386,878		(1)		7

Stockholders’ equity:
Preferred stock	0		0		0		0		0		—		—
Common stock	7		7		7		7		7		—		—
Additional paid-in capital, net	35,163		34,952		34,725		34,579		34,425		1		2
Retained earnings	59,028		57,898		57,184		56,240		54,836		2		8
Accumulated other comprehensive loss	(9,818)		(8,540)		(9,916)		(10,704)		(6,916)		15		42
Treasury stock, at cost	(29,821)		(29,664)		(29,418)		(29,261)		(28,942)		1		3
Total stockholders’ equity	54,559		54,653		52,582		50,861		53,410		—		2
Total liabilities and stockholders’ equity	$	467,800	$	471,660	$	455,249	$	444,232	$	440,288	(1)		6

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 $443 million in Q2 2023, $405 million in Q1 2023, $321 million in Q4 2022, $222 million in Q3 2022 and $211 million in Q2 2022 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)Tangible book value per common share is a non-GAAP measure calculated based on TCE divided by common shares outstanding. See “Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures” for additional information on non-GAAP measures.

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

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

(6)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.

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

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

(9)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.

(10)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.

(11)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.

(12)Capital ratios as of the end of Q2 2023 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.

(13)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


	2023 Q2						2023 Q1						2022 Q2
(Dollars in millions, except as noted)	Average Balance		Interest Income/ Expense		Yield/Rate(1)		Average Balance		Interest Income/ Expense		Yield/Rate(1)		Average Balance		Interest Income/ Expense		Yield/Rate(1)
Interest-earning assets:
Loans, including loans held for sale	$	310,335	$	9,057	11.67	%	$	308,115	$	8,723	11.32	%	$	287,134	$	6,605	9.20	%
Investment securities	89,994		639		2.84		89,960		615		2.73		92,062		435		1.89
Cash equivalents and other	38,810		470		4.84		37,124		416		4.49		19,738		55		1.10
Total interest-earning assets	$	439,139	$	10,166	9.26		$	435,199	$	9,754	8.96		$	398,934	$	7,095	7.11
Interest-bearing liabilities:
Interest-bearing deposits	$	313,207	$	2,277	2.91		$	308,788	$	1,856	2.40		$	268,104	$	293	0.44
Securitized debt obligations	17,771		236		5.31		17,251		211		4.90		15,041		65		1.73
Senior and subordinated notes	30,161		528		7.00		30,136		489		6.49		28,919		194		2.68
Other borrowings and liabilities	2,419		12		1.95		2,335		12		2.08		10,922		26		0.98
Total interest-bearing liabilities	$	363,558	$	3,053	3.36		$	358,510	$	2,568	2.87		$	322,986	$	578	0.72
Net interest income/spread			$	7,113	5.90				$	7,186	6.10				$	6,517	6.40
Impact of non-interest-bearing funding					0.58						0.50						0.14
Net interest margin					6.48	%					6.60	%					6.54	%



	Six Months Ended June 30,
	2023						2022
(Dollars in millions, except as noted)	Average Balance		Interest Income/ Expense		Yield/Rate(1)		Average Balance		Interest Income/ Expense		Yield/Rate(1)
Interest-earning assets:
Loans, including loans held for sale	$	309,231	$	17,780	11.50	%	$	283,100	$	12,972	9.16	%
Investment securities	89,977		1,254		2.79		93,374		837		1.79
Cash equivalents and other	37,972		886		4.67		20,047		70		0.69
Total interest-earning assets	$	437,180	$	19,920	9.11		$	396,521	$	13,879	7.00
Interest-bearing liabilities:
Interest-bearing deposits	$	311,010	$	4,133	2.66		$	269,953	$	511	0.38
Securitized debt obligations	17,512		447		5.10		14,394		94		1.31
Senior and subordinated notes	30,149		1,017		6.75		27,707		325		2.34
Other borrowings and liabilities	2,377		24		2.01		7,298		35		0.98
Total interest-bearing liabilities	$	361,048	$	5,621	3.11		$	319,352	$	965	0.60
Net interest income/spread			$	14,299	6.00				$	12,914	6.40
Impact of non-interest-bearing funding					0.54						0.11
Net interest margin					6.54	%					6.51	%

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 7: Loan Information and Performance Statistics


											2023 Q2 vs.				Six Months Ended June 30,
	2023		2023		2022		2022		2022		2023		2022		2023		2022		2023 vs. 2022
(Dollars in millions, except as noted)	Q2		Q1		Q4		Q3		Q2		Q1		Q2
Loans Held for Investment (Period-End)
Credit card:
Domestic credit card	$	135,975	$	130,980	$	131,581	$	121,279	$	115,004	4	%	18	%	$	135,975	$	115,004	18	%
International card businesses	6,516		6,162		6,149		5,634		5,876		6		11		6,516		5,876		11
Total credit card	142,491		137,142		137,730		126,913		120,880		4		18		142,491		120,880		18
Consumer banking:
Auto	75,841		76,652		78,373		79,580		79,926		(1)		(5)		75,841		79,926		(5)
Retail banking	1,439		1,499		1,552		1,619		1,605		(4)		(10)		1,439		1,605		(10)
Total consumer banking	77,280		78,151		79,925		81,199		81,531		(1)		(5)		77,280		81,531		(5)
Commercial banking:
Commercial and multifamily real estate	36,041		37,132		37,453		38,225		37,845		(3)		(5)		36,041		37,845		(5)
Commercial and industrial	55,511		56,411		57,223		57,606		56,128		(2)		(1)		55,511		56,128		(1)
Total commercial banking	91,552		93,543		94,676		95,831		93,973		(2)		(3)		91,552		93,973		(3)

Total loans held for investment	$	311,323	$	308,836	$	312,331	$	303,943	$	296,384	1		5		$	311,323	$	296,384	5
Loans Held for Investment (Average)
Credit card:
Domestic credit card	$	132,505	$	128,562	$	124,816	$	117,467	$	109,962	3	%	21	%	$	130,544	$	107,761	21	%
International card businesses	6,257		6,108		5,836		5,890		5,873		2		7		6,183		5,909		5
Total credit card	138,762		134,670		130,652		123,357		115,835		3		20		136,727		113,670		20
Consumer banking:
Auto	76,233		77,465		79,108		79,741		79,313		(2)		(4)		76,846		78,109		(2)
Retail banking	1,465		1,529		1,592		1,598		1,668		(4)		(12)		1,497		1,732		(14)
Total consumer banking	77,698		78,994		80,700		81,339		80,981		(2)		(4)		78,343		79,841		(2)
Commercial banking:
Commercial and multifamily real estate	37,068		37,373		37,848		38,230		35,754		(1)		4		37,220		35,215		6
Commercial and industrial	56,127		56,719		57,681		57,260		53,540		(1)		5		56,421		52,030		8
Total commercial banking	93,195		94,092		95,529		95,490		89,294		(1)		4		93,641		87,245		7
Total average loans held for investment	$	309,655	$	307,756	$	306,881	$	300,186	$	286,110	1		8		$	308,711	$	280,756	10


											2023 Q2 vs.				Six Months Ended June 30,
	2023		2023		2022		2022		2022		2023		2022		2023		2022		2023 vs. 2022
	Q2		Q1		Q4		Q3		Q2		Q1		Q2
Net Charge-Off (Recovery) Rates
Credit card:
Domestic credit card(2)	4.38	%	4.04	%	3.22	%	2.20	%	2.26	%	34	bps	212	bps	4.21	%	2.19	%	202	bps
International card businesses	4.98		4.54		4.29		3.30		3.82		44		116		4.77		3.51		126
Total credit card	4.41		4.06		3.27		2.25		2.34		35		207		4.24		2.26		198
Consumer banking:
Auto	1.40		1.53		1.66		1.05		0.61		(13)		79		1.46		0.63		83
Retail banking	3.25		2.97		5.15		3.89		3.62		28		(37)		3.10		3.98		(88)
Total consumer banking	1.43		1.56		1.73		1.10		0.67		(13)		76		1.50		0.71		79
Commercial banking:
Commercial and multifamily real estate	3.91		0.19		0.05		0.03		(0.08)		372		399		2.04		(0.04)		208
Commercial and industrial	0.11		0.03		0.06		0.06		0.29		8		(18)		0.07		0.20		(13)
Total commercial banking	1.62		0.09		0.06		0.05		0.14		153		148		0.85		0.10		75
Total net charge-offs	2.82		2.21		1.86		1.24		1.18		61		164		2.52		1.15		137
30+ Day Performing Delinquency Rates
Credit card:
Domestic credit card	3.74	%	3.66	%	3.43	%	2.97	%	2.35	%	8	bps	139	bps	3.74	%	2.35	%	139	bps
International card businesses	4.24		4.20		4.03		3.90		3.67		4		57		4.24		3.67		57
Total credit card	3.77		3.68		3.46		3.01		2.42		9		135		3.77		2.42		135
Consumer banking:
Auto	5.38		5.00		5.62		4.85		4.47		38		91		5.38		4.47		91
Retail banking	1.19		0.56		1.02		0.84		0.67		63		52		1.19		0.67		52
Total consumer banking	5.30		4.92		5.53		4.77		4.39		38		91		5.30		4.39		91
Nonperforming Loans and Nonperforming Assets Rates(3)(4)
Credit card:
International card businesses	0.16	%	0.12	%	0.14	%	0.14	%	0.13	%	4	bps	3	bps	0.16	%	0.13	%	3	bps
Total credit card	0.01		0.01		0.01		0.01		0.01		—		—		0.01		0.01		—
Consumer banking:
Auto	0.77		0.67		0.76		0.60		0.50		10		27		0.77		0.50		27
Retail banking	2.99		2.94		2.49		2.62		2.61		5		38		2.99		2.61		38
Total consumer banking	0.82		0.72		0.79		0.64		0.54		10		28		0.82		0.54		28
Commercial banking:
Commercial and multifamily real estate	1.15		0.90		0.72		0.64		0.78		25		37		1.15		0.78		37
Commercial and industrial	0.71		0.72		0.75		0.53		0.64		(1)		7		0.71		0.64		7
Total commercial banking	0.89		0.79		0.74		0.57		0.70		10		19		0.89		0.70		19
Total nonperforming loans	0.47		0.42		0.43		0.35		0.37		5		10		0.47		0.37		10
Total nonperforming assets	0.48		0.44		0.45		0.37		0.39		4		9		0.48		0.39		9

CAPITAL ONE FINANCIAL CORPORATION (COF)

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



	Three Months Ended June 30, 2023
	Credit Card						Consumer Banking
(Dollars in millions)	Domestic Card		International Card Businesses		Total Credit Card		Auto		Retail Banking		Total Consumer Banking		Commercial Banking		Total
Allowance for credit losses:
Balance as of March 31, 2023	$	10,032	$	378	$	10,410	$	2,165	$	40	$	2,205	$	1,703	$	14,318
Charge-offs	(1,758)		(110)		(1,868)		(508)		(18)		(526)		(378)		(2,772)
Recoveries	307		33		340		241		6		247		—		587
Net charge-offs	(1,451)		(77)		(1,528)		(267)		(12)		(279)		(378)		(2,185)
Provision for credit losses	1,995		89		2,084		252		7		259		160		2,503
Allowance build (release) for credit losses	544		12		556		(15)		(5)		(20)		(218)		318
Other changes(5)	—		10		10		—		—		—		—		10
Balance as of June 30, 2023	10,576		400		10,976		2,150		35		2,185		1,485		14,646
Reserve for unfunded lending commitments:
Balance as of March 31, 2023	—		—		—		—		—		—		211		211
Provision (benefit) for losses on unfunded lending commitments	—		—		—		—		—		—		(14)		(14)

Balance as of June 30, 2023	—		—		—		—		—		—		197		197
Combined allowance and reserve as of June 30, 2023	$	10,576	$	400	$	10,976	$	2,150	$	35	$	2,185	$	1,682	$	14,843



	Six Months Ended June 30, 2023
	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, 2022	$	9,165	$	380	$	9,545	$	2,187	$	50	$	2,237	$	1,458	$	13,240
Cumulative effects of accounting standards adoption(6)	(40)		(23)		(63)		—		—		—		—		(63)
Balance as of January 1, 2023	9,125		357		9,482		2,187		50		2,237		1,458		13,177
Charge-offs	(3,345)		(211)		(3,556)		(1,023)		(34)		(1,057)		(402)		(5,015)
Recoveries	595		64		659		460		11		471		3		1,133
Net charge-offs	(2,750)		(147)		(2,897)		(563)		(23)		(586)		(399)		(3,882)
Provision for credit losses	4,169		176		4,345		526		8		534		426		5,305
Allowance build (release) for credit losses	1,419		29		1,448		(37)		(15)		(52)		27		1,423
Other changes(5)	32		14		46		—		—		—		—		46
Balance as of June 30, 2023	10,576		400		10,976		2,150		35		2,185		1,485		14,646
Reserve for unfunded lending commitments:
Balance as of December 31, 2022	—		—		—		—		—		—		218		218


Provision (benefit) for losses on unfunded lending commitments	—		—		—		—		—		—		(21)		(21)

Balance as of June 30, 2023	—		—		—		—		—		—		197		197
Combined allowance and reserve as of June 30, 2023	$	10,576	$	400	$	10,976	$	2,150	$	35	$	2,185	$	1,682	$	14,843

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 9: Financial Summary—Business Segment Results


	Three Months Ended June 30, 2023										Six Months Ended June 30, 2023
(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking(7)		Other(7)		Total		Credit Card		Consumer Banking		Commercial Banking(7)		Other(7)		Total
Net interest income (loss)	$	4,727	$	2,269	$	632	$	(515)	$	7,113	$	9,384	$	4,629	$	1,280	$	(994)	$	14,299
Non-interest income (loss)	1,499		149		257		(6)		1,899		2,862		284		469		1		3,616
Total net revenue (loss)	6,226		2,418		889		(521)		9,012		12,246		4,913		1,749		(993)		17,915
Provision for credit losses	2,084		259		146		1		2,490		4,345		534		405		1		5,285
Non-interest expense	3,020		1,231		482		61		4,794		6,058		2,514		1,012		155		9,739
Income (loss) from continuing operations before income taxes	1,122		928		261		(583)		1,728		1,843		1,865		332		(1,149)		2,891
Income tax provision (benefit)	265		219		61		(248)		297		437		440		78		(455)		500
Income (loss) from continuing operations, net of tax	$	857	$	709	$	200	$	(335)	$	1,431	$	1,406	$	1,425	$	254	$	(694)	$	2,391

	Three Months Ended March 31, 2023
(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking(7)		Other(7)		Total
Net interest income (loss)	$	4,657	$	2,360	$	648	$	(479)	$	7,186
Non-interest income	1,363		135		212		7		1,717
Total net revenue (loss)	6,020		2,495		860		(472)		8,903
Provision (benefit) for credit losses	2,261		275		259		—		2,795
Non-interest expense	3,038		1,283		530		94		4,945
Income (loss) from continuing operations before income taxes	721		937		71		(566)		1,163
Income tax provision (benefit)	172		221		17		(207)		203
Income (loss) from continuing operations, net of tax	$	549	$	716	$	54	$	(359)	$	960

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

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 10: Financial & Statistical Summary—Credit Card Business


																2023 Q2 vs.				Six Months Ended June 30,
	2023			2023			2022			2022			2022			2023		2022								2023 vs.
(Dollars in millions, except as noted)	Q2			Q1			Q4			Q3			Q2			Q1		Q2		2023			2022			2022
Credit Card
Earnings:
Net interest income	$	4,727		$	4,657		$	4,533		$	4,313		$	3,899		2%		21%		$	9,384		$	7,738		21%
Non-interest income	1,499			1,363			1,449			1,454			1,410			10		6		2,862			2,868			—
Total net revenue	6,226			6,020			5,982			5,767			5,309			3		17		12,246			10,606			15
Provision for credit losses	2,084			2,261			1,878			1,261			581			(8)		**		4,345			1,126			**
Non-interest expense	3,020			3,038			3,069			3,004			2,771			(1)		9		6,058			5,554			9
Income from continuing operations before income taxes	1,122			721			1,035			1,502			1,957			56		(43)		1,843			3,926			(53)
Income tax provision	265			172			245			356			466			54		(43)		437			935			(53)
Income from continuing operations, net of tax	$	857		$	549		$	790		$	1,146		$	1,491		56		(43)		$	1,406		$	2,991		(53)
Selected performance metrics:
Period-end loans held for investment	$	142,491		$	137,142		$	137,730		$	126,913		$	120,880		4		18		$	142,491		$	120,880		18
Average loans held for investment	138,762			134,670			130,652			123,357			115,835			3		20		136,727			113,670			20
Average yield on loans outstanding(1)	18.17		%	17.98		%	17.69		%	16.74		%	15.24		%	19	bps	293	bps	18.07		%	15.11		%	296	bps
Total net revenue margin(8)	17.95			17.88			18.32			18.70			18.33			7		(38)		17.91			18.44			(53)
Net charge-off rate	4.41			4.06			3.27			2.25			2.34			35		207		4.24			2.26			198
30+ day performing delinquency rate	3.77			3.68			3.46			3.01			2.42			9		135		3.77			2.42			135
30+ day delinquency rate	3.77			3.69			3.46			3.02			2.42			8		135		3.77			2.42			135
Nonperforming loan rate(3)	0.01			0.01			0.01			0.01			0.01			—		—		0.01			0.01			—
Purchase volume(9)	$	157,937		$	141,658		$	155,633		$	149,497		$	148,491		11%		6%		$	299,595		$	282,153		6%


																2023 Q2 vs.				Six Months Ended June 30,
	2023			2023			2022			2022			2022			2023		2022								2023 vs.
(Dollars in millions, except as noted)	Q2			Q1			Q4			Q3			Q2			Q1		Q2		2023			2022			2022
Domestic Card
Earnings:
Net interest income	$	4,453		$	4,390		$	4,280		$	4,065		$	3,651		1%		22%		$	8,843		$	7,271		22%
Non-interest income	1,431			1,298			1,392			1,383			1,340			10		7		2,729			2,588			5
Total net revenue	5,884			5,688			5,672			5,448			4,991			3		18		11,572			9,859			17
Provision for credit losses	1,995			2,174			1,800			1,167			494			(8)		**		4,169			1,053			**
Non-interest expense	2,805			2,847			2,866			2,803			2,594			(1)		8		5,652			5,158			10
Income from continuing operations before income taxes	1,084			667			1,006			1,478			1,903			63		(43)		1,751			3,648			(52)
Income tax provision	256			157			238			351			450			63		(43)		413			864			(52)
Income from continuing operations, net of tax	$	828		$	510		$	768		$	1,127		$	1,453		62		(43)		$	1,338		$	2,784		(52)
Selected performance metrics:
Period-end loans held for investment	$	135,975		$	130,980		$	131,581		$	121,279		$	115,004		4		18		$	135,975		$	115,004		18
Average loans held for investment	132,505			128,562			124,816			117,467			109,962			3		21		130,544			107,761			21
Average yield on loans outstanding(1)	18.07		%	17.88		%	17.58		%	16.61		%	15.03		%	19	bps	304	bps	17.98		%	14.92		%	306	bps
Total net revenue margin(8)	17.76			17.70			18.18			18.55			18.16			6		(40)		17.73			18.21			(48)
Net charge-off rate(2)	4.38			4.04			3.22			2.20			2.26			34		212		4.21			2.19			202
30+ day performing delinquency rate	3.74			3.66			3.43			2.97			2.35			8		139		3.74			2.35			139
Purchase volume(9)	$	154,184		$	138,310		$	151,995		$	145,805		$	144,668		11%		7%		$	292,494		$	270,952		8%
Refreshed FICO scores:(10)
Greater than 660	69		%	68		%	69		%	70		%	70		%	1		(1)		69		%	70		%	(1)
660 or below	31			32			31			30			30			(1)		1		31			30			1
Total	100		%	100		%	100		%	100		%	100		%					100		%	100		%

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 11: Financial & Statistical Summary—Consumer Banking Business


																2023 Q2 vs.				Six Months Ended June 30,
	2023			2023			2022			2022			2022			2023		2022								2023 vs.
(Dollars in millions, except as noted)	Q2			Q1			Q4			Q3			Q2			Q1		Q2		2023			2022			2022
Consumer Banking
Earnings:
Net interest income	$	2,269		$	2,360		$	2,394		$	2,311		$	2,147		(4)%		6%		$	4,629		$	4,260		9%
Non-interest income	149			135			139			129			96			10		55		284			201			41
Total net revenue	2,418			2,495			2,533			2,440			2,243			(3)		8		4,913			4,461			10
Provision for credit losses	259			275			477			285			281			(6)		(8)		534			411			30
Non-interest expense	1,231			1,283			1,450			1,340			1,286			(4)		(4)		2,514			2,522			—
Income from continuing operations before income taxes	928			937			606			815			676			(1)		37		1,865			1,528			22
Income tax provision	219			221			144			193			160			(1)		37		440			362			22
Income from continuing operations, net of tax	$	709		$	716		$	462		$	622		$	516		(1)		37		$	1,425		$	1,166		22
Selected performance metrics:
Period-end loans held for investment	$	77,280		$	78,151		$	79,925		$	81,199		$	81,531		(1)		(5)		$	77,280		$	81,531		(5)
Average loans held for investment	77,698			78,994			80,700			81,339			80,981			(2)		(4)		78,343			79,841			(2)
Average yield on loans held for investment(1)	7.65		%	7.40		%	7.31		%	7.20		%	7.08		%	25	bps	57	bps	7.52		%	7.13		%	39	bps
Auto loan originations	$	7,160		$	6,211		$	6,635		$	8,289		$	10,328		15%		(31)%		$	13,371		$	22,041		(39)%
Period-end deposits	286,174			291,163			270,592			256,661			255,904			(2)		12		286,174			255,904			12
Average deposits	285,647			278,772			262,844			255,843			254,336			2		12		282,229			254,798			11
Average deposits interest rate	2.46		%	1.96		%	1.42		%	0.79		%	0.38		%	50	bps	208	bps	2.21		%	0.33		%	188	bps
Net charge-off rate	1.43			1.56			1.73			1.10			0.67			(13)		76		1.50			0.71			79
30+ day performing delinquency rate	5.30			4.92			5.53			4.77			4.39			38		91		5.30			4.39			91
30+ day delinquency rate	5.95			5.46			6.18			5.28			4.81			49		114		5.95			4.81			114
Nonperforming loan rate(3)	0.82			0.72			0.79			0.64			0.54			10		28		0.82			0.54			28
Nonperforming asset rate(4)	0.88			0.78			0.87			0.71			0.60			10		28		0.88			0.60			28
Auto—At origination FICO scores:(11)
Greater than 660	52		%	52		%	53		%	52		%	52		%	—		—		52		%	52		%	—
621 - 660	20			20			20			20			20			—		—		20			20			—
620 or below	28			28			27			28			28			—		—		28			28			—
Total	100		%	100		%	100		%	100		%	100		%					100		%	100		%

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 12: Financial & Statistical Summary—Commercial Banking Business


																2023 Q2 vs.				Six Months Ended June 30,
	2023			2023			2022			2022			2022			2023		2022								2023 vs.
(Dollars in millions, except as noted)	Q2			Q1			Q4			Q3			Q2			Q1		Q2		2023			2022			2022
Commercial Banking
Earnings:
Net interest income(12)	$	632		$	648		$	520		$	699		$	635		(2)%		—		$	1,280		$	1,242		3%
Non-interest income	257			212			261			319			272			21		(6)%		469			549			(15)
Total net revenue(7)	889			860			781			1,018			907			3		(2)		1,749			1,791			(2)
Provision for credit losses	146			259			62			123			222			(44)		(34)		405			230			76
Non-interest expense	482			530			555			542			485			(9)		(1)		1,012			973			4
Income from continuing operations before income taxes	261			71			164			353			200			**		31		332			588			(44)
Income tax provision	61			17			39			83			48			**		27		78			140			(44)
Income from continuing operations, net of tax	$	200		$	54		$	125		$	270		$	152		**		32		$	254		$	448		(43)
Selected performance metrics:
Period-end loans held for investment(13)	$	91,552		$	93,543		$	94,676		$	95,831		$	93,973		(2)		(3)		$	91,552		$	93,973		(3)
Average loans held for investment	93,195			94,092			95,529			95,490			89,294			(1)		4		93,641			87,245			7
Average yield on loans held for investment(1)(7)	6.75		%	6.31		%	5.63		%	4.40		%	3.18		%	44	bps	357	bps	6.53		%	2.92		%	361	bps
Period-end deposits	$	36,793		$	38,380		$	40,808		$	41,058		$	38,844		(4)%		(5)%		$	36,793		$	38,844		(5)%
Average deposits	37,960			39,941			42,779			39,799			40,536			(5)		(6)		38,945			42,760			(9)
Average deposits interest rate	2.68		%	2.34		%	1.80		%	0.83		%	0.19		%	34	bps	249	bps	2.51		%	0.15		%	236	bps
Net charge-off rate	1.62			0.09			0.06			0.05			0.14			153		148		0.85			0.10			75
Nonperforming loan rate(3)	0.89			0.79			0.74			0.57			0.70			10		19		0.89			0.70			19
Nonperforming asset rate(4)	0.89			0.79			0.74			0.57			0.70			10		19		0.89			0.70			19
Risk category:(14)
Noncriticized	$	84,583		$	85,964		$	87,620		$	89,559		$	88,349		(2)%		(4)%		$	84,583		$	88,349		(4)%
Criticized performing	6,158			6,839			6,355			5,722			4,969			(10)		24		6,158			4,969			24
Criticized nonperforming	811			740			701			550			655			10		24		811			655			24
Total commercial banking loans held for investment	$	91,552		$	93,543		$	94,676		$	95,831		$	93,973		(2)		(3)		$	91,552		$	93,973		(3)
Risk category as a percentage of period-end loans held for investment:(14)
Noncriticized	92.38		%	91.90		%	92.55		%	93.46		%	94.01		%	48	bps	(163)	bps	92.38		%	94.01		%	(163)	bps
Criticized performing	6.73			7.31			6.71			5.97			5.29			(58)		144		6.73			5.29			144
Criticized nonperforming	0.89			0.79			0.74			0.57			0.70			10		19		0.89			0.70			19
Total commercial banking loans	100.00		%	100.00		%	100.00		%	100.00		%	100.00		%					100.00		%	100.00		%

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 13: Financial & Statistical Summary—Other and Total


											2023 Q2 vs.		Six Months Ended June 30,
	2023		2023		2022		2022		2022		2023	2022					2023 vs.
(Dollars in millions)	Q2		Q1		Q4		Q3		Q2		Q1	Q2	2023		2022		2022
Other
Earnings:
Net interest loss(12)	$	(515)	$	(479)	$	(250)	$	(320)	$	(164)	8%	**	$	(994)	$	(326)	**
Non-interest income (loss)	(6)		7		(6)		(100)		(63)		**	(90)%	1		(127)		**
Total net loss(7)	(521)		(472)		(256)		(420)		(227)		10	130	(993)		(453)		119%
Provision (benefit) for credit losses	1		—		(1)		—		1		**	—	1		(5)		**
Non-interest expense(15)	61		94		6		63		41		(35)	49	155		85		82
Loss from continuing operations before income taxes	(583)		(566)		(261)		(483)		(269)		3	117	(1,149)		(533)		116
Income tax benefit	(248)		(207)		(116)		(139)		(141)		20	76	(455)		(362)		26
Loss from continuing operations, net of tax	$	(335)	$	(359)	$	(145)	$	(344)	$	(128)	(7)	162	$	(694)	$	(171)	**
Selected performance metrics:
Period-end deposits	$	20,738	$	20,284	$	21,592	$	19,474	$	13,137	2	58	$	20,738	$	13,137	58
Average deposits	20,071		21,410		20,935		16,286		11,082		(6)	81	20,736		10,207		103
Total
Earnings:
Net interest income	$	7,113	$	7,186	$	7,197	$	7,003	$	6,517	(1)%	9%	$	14,299	$	12,914	11%
Non-interest income	1,899		1,717		1,843		1,802		1,715		11	11	3,616		3,491		4
Total net revenue	9,012		8,903		9,040		8,805		8,232		1	9	17,915		16,405		9
Provision for credit losses	2,490		2,795		2,416		1,669		1,085		(11)	129	5,285		1,762		200
Non-interest expense	4,794		4,945		5,080		4,949		4,583		(3)	5	9,739		9,134		7
Income from continuing operations before income taxes	1,728		1,163		1,544		2,187		2,564		49	(33)	2,891		5,509		(48)
Income tax provision	297		203		312		493		533		46	(44)	500		1,075		(53)
Income from continuing operations, net of tax	$	1,431	$	960	$	1,232	$	1,694	$	2,031	49	(30)	$	2,391	$	4,434	(46)
Selected performance metrics:
Period-end loans held for investment	$	311,323	$	308,836	$	312,331	$	303,943	$	296,384	1	5	$	311,323	$	296,384	5
Average loans held for investment	309,655		307,756		306,881		300,186		286,110		1	8	308,711		280,756		10
Period-end deposits	343,705		349,827		332,992		317,193		307,885		(2)	12	343,705		307,885		12
Average deposits	343,678		340,123		326,558		311,928		305,954		1	12	341,910		307,765		11

CAPITAL ONE FINANCIAL CORPORATION (COF)

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

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

(2)In August 2022, in addition to our normal recovery activity, we sold a pool of charged-off loans that resulted in elevated debt sale recovery activity of approximately $33 million, which decreased the Domestic Credit Card net charge-off rate for the third quarter of 2022 by approximately 11 basis points. Excluding the impact, the Domestic Credit Card net charge-off rate would have been 2.31% for the third quarter of 2022.

(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. For Commercial Banking, loans categorized as nonperforming are considered criticized nonperforming.

(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)Primarily represents the initial allowance for purchased credit-deteriorated loans and foreign currency translation adjustments. The initial allowance of purchased credit-deteriorated loans was $0 million and $32 million for the three and six months ended June 30, 2023, respectively.

(6)Impact from the adoption of ASU 2022-02, Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures as of January 1, 2023.

(7)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.

(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)In the fourth quarter of 2022, an internal funds transfer pricing impact of $176 million decreased net interest income in the Commercial Banking business and increased the Other category, and was therefore neutral to Capital One Financial Corporation.

(13)We reclassified $888 million in commercial office real estate loans from loans held for investment to loans held for sale as of June 30, 2023.

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

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

** Not meaningful.

CAPITAL ONE FINANCIAL CORPORATION (COF)

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


	Basel III Standardized Approach
(Dollars in millions, except as noted)	June 30, 2023		March 31, 2023		December 31, 2022		September 30, 2022		June 30, 2022
Regulatory Capital Metrics
Common equity excluding AOCI	$	60,729	$	59,546	$	59,450	$	58,516	$	57,278
Adjustments:
AOCI, net of tax(2)	31		(3)		(17)		(120)		(72)
Goodwill, net of related deferred tax liabilities	(14,813)		(14,538)		(14,540)		(14,537)		(14,548)
Other Intangible and deferred tax assets, net of deferred tax liabilities	(358)		(371)		(162)		(194)		(95)
Common equity Tier 1 capital	$	45,589	$	44,634	$	44,731	$	43,665	$	42,563
Tier 1 capital	$	50,434	$	49,479	$	49,576	$	48,510	$	47,408
Total capital(3)	57,607		56,611		56,714		55,938		55,100
Risk-weighted assets	359,612		356,079		357,920		356,801		351,746
Adjusted average assets(4)	459,732		455,477		444,704		439,479		427,446
Capital Ratios
Common equity Tier 1 capital(5)	12.7%		12.5%		12.5%		12.2%		12.1%
Tier 1 capital(6)	14.0		13.9		13.9		13.6		13.5
Total capital(7)	16.0		15.9		15.8		15.7		15.7
Tier 1 leverage(4)	11.0		10.9		11.1		11.0		11.1
TCE(8)	7.6		7.6		7.5		7.2		7.9

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, however, they may not be comparable to similarly-titled measures reported by other companies. 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.


	2023		2023		2022		2022		2022		Six Months Ended June 30,
(Dollars in millions, except per share data and as noted)	Q2		Q1		Q4		Q3		Q2		2023		2022
Adjusted diluted earnings per share (“EPS”):
Net income available to common stockholders (GAAP)	$	1,351	$	887	$	1,161	$	1,616	$	1,949	$	2,238	$	4,267
Insurance recoveries and legal reserve activity	—		—		(177)		—		—		—		—
Restructuring charges	—		—		72		—		—		—		—

Adjusted net income available to common stockholders before income tax impacts (non-GAAP)	1,351		887		1,056		1,616		1,949		2,238		4,267
Income tax impacts	—		—		25		—		—		—		—

Adjusted net income available to common stockholders (non-GAAP)	$	1,351	$	887	$	1,081	$	1,616	$	1,949	$	2,238	$	4,267

Diluted weighted-average common shares outstanding (in millions) (GAAP)	383.7		383.8		383.7		384.6		392.6		383.8		402.3

Diluted EPS (GAAP)	$	3.52	$	2.31	$	3.03	$	4.20	$	4.96	$	5.83	$	10.61
Impact of adjustments noted above	—		—		(0.21)		—		—		—		—
Adjusted diluted EPS (non-GAAP)	$	3.52	$	2.31	$	2.82	$	4.20	$	4.96	$	5.83	$	10.61

Adjusted efficiency ratio:
Non-interest expense (GAAP)	$	4,794	$	4,945	$	5,080	$	4,949	$	4,583	$	9,739	$	9,134
Insurance recoveries and legal reserve activity	—		—		177		—		—		—		—
Restructuring charges	—		—		(72)		—		—		—		—
Adjusted non-interest expense (non-GAAP)	$	4,794	$	4,945	$	5,185	$	4,949	$	4,583	$	9,739	$	9,134

Total net revenue (GAAP)	$	9,012	$	8,903	$	9,040	$	8,805	$	8,232	$	17,915	$	16,405




Efficiency ratio (GAAP)	53.20%		55.54%		56.19%		56.21%		55.67%		54.36%		55.68%
Impact of adjustments noted above	—		—		117bps		—		—		—		—
Adjusted efficiency ratio (non-GAAP)	53.20%		55.54%		57.36%		56.21%		55.67%		54.36%		55.68%

Adjusted operating efficiency ratio:
Operating expense (GAAP)	$	3,908	$	4,048	$	3,962	$	3,971	$	3,580	$	7,956	$	7,213
Insurance recoveries and legal reserve activity	—		—		177		—		—		—		—
Restructuring charges	—		—		(72)		—		—		—		—
Adjusted operating expense (non-GAAP)	$	3,908	$	4,048	$	4,067	$	3,971	$	3,580	$	7,956	$	7,213


	2023			2023		2022		2022		2022		Six Months Ended June 30,
(Dollars in millions, except per share data and as noted)	Q2			Q1		Q4		Q3		Q2		2023		2022
Total net revenue (GAAP)	$	9,012		$	8,903	$	9,040	$	8,805	$	8,232	$	17,915	$	16,405




Operating efficiency ratio (GAAP)	43.36%			45.47%		43.83%		45.10%		43.49%		44.41%		43.97%
Impact of adjustments noted above	—			—		116bps		—		—		—		—
Adjusted operating efficiency ratio (non-GAAP)	43.36		%	45.47%		44.99%		45.10%		43.49%		44.41%		43.97%

Reconciliation of Non-GAAP Measures

The following summarizes our non-GAAP measures. While these non-GAAP measures are widely used by investors, analysts and bank regulatory agencies to assess the operating performance and capital position of financial services companies, they may not be comparable to similarly-titled measures reported by other companies. The following table presents reconciliations of these non-GAAP measures to the applicable amounts measured in accordance with GAAP.


	2023			2023			2022			2022			2022
(Dollars in millions)	Q2			Q1			Q4			Q3			Q2
Pre- Provision Earnings
Total net revenue	$	9,012		$	8,903		$	9,040		$	8,805		$	8,232
Non-interest expense	(4,794)			(4,945)			(5,080)			(4,949)			(4,583)
Pre-provision earnings(9)	$	4,218		$	3,958		$	3,960		$	3,856		$	3,649
Tangible Common Equity (Period-End)
Stockholders’ equity	$	54,559		$	54,653		$	52,582		$	50,861		$	53,410
Goodwill and other intangible assets(10)	(15,356)			(15,098)			(14,902)			(14,932)			(14,850)
Noncumulative perpetual preferred stock	(4,845)			(4,845)			(4,845)			(4,845)			(4,845)
Tangible common equity(11)	$	34,358		$	34,710		$	32,835		$	31,084		$	33,715
Tangible Common Equity (Average)
Stockholders’ equity	$	55,357		$	54,773		$	52,439		$	54,541		$	54,165
Goodwill and other intangible assets(10)	(15,187)			(14,984)			(14,926)			(14,916)			(14,875)
Noncumulative perpetual preferred stock	(4,845)			(4,845)			(4,845)			(4,845)			(4,845)
Tangible common equity(11)	$	35,325		$	34,944		$	32,668		$	34,780		$	34,445
Return on Tangible Common Equity (Average)
Net income available to common stockholders	$	1,351		$	887		$	1,161		$	1,616		$	1,949
Tangible common equity (Average)	35,325			34,944			32,668			34,780			34,445
Return on tangible common equity(11)(12)	15.30		%	10.15		%	14.22		%	18.59		%	22.63		%
Tangible Assets (Period-End)
Total assets	$	467,800		$	471,660		$	455,249		$	444,232		$	440,288
Goodwill and other intangible assets(10)	(15,356)			(15,098)			(14,902)			(14,932)			(14,850)
Tangible assets(11)	$	452,444		$	456,562		$	440,347		$	429,300		$	425,438


	2023			2023		2022		2022		2022
(Dollars in millions)	Q2			Q1		Q4		Q3		Q2






















Tangible Assets (Average)
Total assets	$	466,652		$	462,324	$	449,659	$	447,088	$	435,327
Goodwill and other intangible assets(10)	(15,187)			(14,984)		(14,926)		(14,916)		(14,875)
Tangible assets(11)	$	451,465		$	447,340	$	434,733	$	432,172	$	420,452
Return on Tangible Assets (Average)
Net income	$	1,431		$	960	$	1,232	$	1,694	$	2,031
Tangible Assets (Average)	451,465			447,340		434,733		432,172		420,452
Return on tangible assets(11)(13)	1.27		%	0.86%		1.13%		1.57%		1.93%
TCE Ratio
Tangible common equity (Period-end)	$	34,358		$	34,710	$	32,835	$	31,084	$	33,715
Tangible Assets (Period-end)	452,444			456,562		440,347		429,300		425,438
TCE Ratio(11)	7.6%			7.6%		7.5%		7.2%		7.9%
Tangible Book Value per Share
Tangible common equity (Period-end)	$	34,358		$	34,710	$	32,835	$	31,084	$	33,715
Outstanding Common Shares	381.4			382.0		381.3		382.0		383.8
Tangible book value per common share(11)	$	90.07		$	90.86	$	86.11	$	81.38	$	87.84

__________

(1)Regulatory capital metrics and capital ratios as of June 30, 2023 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)Management believes that this financial metric is useful in assessing the ability of a lending institution to generate income in excess of its provision for credit losses.

(10)Includes impact of related deferred taxes.

(11)Management believes that this financial metric is useful in assessing capital adequacy and the level of returns generated.

(12)Return on average tangible common equity is a non-GAAP measure calculated based on annualized net income (loss) available to common stockholders less annualized income (loss) from discontinued operations, net of tax, for the period, divided by average TCE.

(13)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.