Exhibit 99.1
CAPITAL ONE FINANCIAL CORPORATION (COF)
FINANCIAL & STATISTICAL SUMMARY REPORTED BASIS
| | | | | | | | | | | | | | | | | | | | |
(in millions, except per share data and as noted) | | 2006 Q4 | | | 2006 Q3(11) | | | 2006 Q2 | | | 2006 Q1 | | | 2005 Q4 | |
Earnings (Reported Basis) | | | | | | | | | | | | | | | | | | | | |
Net Interest Income | | $ | 1,401.2 | | | $ | 1,294.5 | | | $ | 1,197.1 | | | $ | 1,206.9 | | | $ | 1,037.0 | |
Non-Interest Income | | | 1,667.2 | (2) | | | 1,761.4 | (2) | | | 1,709.9 | (2) | | | 1,858.3 | | | | 1,665.5 | (1) |
| | | | | | | | | | | | | | | | | | | | |
Total Revenue(4) | | | 3,068.4 | | | | 3,055.9 | | | | 2,907.0 | | | | 3,065.2 | (3) | | | 2,702.5 | |
Provision for Loan Losses | | | 513.2 | | | | 430.6 | | | | 362.4 | | | | 170.3 | (3) | | | 565.7 | |
Marketing Expenses | | | 395.7 | | | | 368.5 | | | | 356.7 | | | | 323.8 | | | | 447.4 | |
Operating Expenses | | | 1,590.5 | | | | 1,358.1 | | | | 1,324.2 | | | | 1,249.7 | | | | 1,241.7 | (5) |
| | | | | | | | | | | | | | | | | | | | |
Income Before Taxes | | | 569.0 | | | | 898.7 | | | | 863.7 | | | | 1,321.4 | | | | 447.7 | |
Tax Rate(6) | | | 31.3 | % | | | 34.6 | % | | | 36.0 | % | | | 33.2 | % | | | 37.3 | % |
Net Income | | $ | 390.7 | | | $ | 587.8 | | | $ | 552.6 | | | $ | 883.3 | | | $ | 280.3 | |
| | | | | | | | | | | | | | | | | | | | |
Common Share Statistics | | | | | | | | | | | | | | | | | | | | |
Basic EPS | | $ | 1.16 | | | $ | 1.95 | | | $ | 1.84 | | | $ | 2.95 | | | $ | 1.01 | |
Diluted EPS | | $ | 1.14 | | | $ | 1.89 | | | $ | 1.78 | | | $ | 2.86 | | | $ | 0.97 | |
Dividends Per Share | | $ | 0.03 | | | $ | 0.03 | | | $ | 0.03 | | | $ | 0.03 | | | $ | 0.03 | |
Book Value Per Share (period end) | | $ | 61.56 | | | $ | 54.79 | | | $ | 52.31 | | | $ | 50.06 | | | $ | 46.97 | |
Stock Price Per Share (period end) | | $ | 76.82 | | | $ | 78.66 | | | $ | 85.45 | | | $ | 80.52 | | | $ | 86.40 | |
Total Market Capitalization (period end) | | $ | 31,488.5 | | | $ | 23,944.1 | | | $ | 25,968.3 | | | $ | 24,397.6 | | | $ | 25,989.1 | |
Shares Outstanding (period end) | | | 409.9 | | | | 304.4 | | | | 303.9 | | | | 303.0 | | | | 300.8 | |
Shares Used to Compute Basic EPS | | | 336.5 | | | | 301.6 | | | | 300.8 | | | | 299.3 | | | | 278.8 | |
Shares Used to Compute Diluted EPS | | | 343.8 | | | | 310.4 | | | | 310.0 | | | | 309.1 | | | | 287.7 | |
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Reported Balance Sheet Statistics (period avg.) | | | | | | | | | | | | | | | | | | | | |
Average Loans Held for Investment | | $ | 74,738 | | | $ | 62,429 | | | $ | 58,833 | | | $ | 58,142 | | | $ | 48,701 | |
Average Earning Assets(7) | | $ | 99,416 | | | $ | 81,311 | | | $ | 79,266 | | | $ | 78,332 | | | $ | 66,780 | |
Average Assets | | $ | 113,890 | | | $ | 92,295 | | | $ | 89,644 | | | $ | 88,895 | | | $ | 74,443 | |
Average Interest Bearing Deposits | | $ | 53,735 | | | $ | 42,984 | | | $ | 42,797 | | | $ | 43,357 | | | $ | 34,738 | |
Average Non-Interest Bearing Deposits | | $ | 6,647 | | | $ | 4,212 | | | $ | 4,412 | | | $ | 4,514 | | | $ | 2,356 | |
Average Equity | | $ | 18,311 | | | $ | 16,310 | | | $ | 15,581 | | | $ | 14,612 | | | $ | 12,528 | |
Return on Average Assets (ROA) | | | 1.37 | % | | | 2.55 | % | | | 2.47 | % | | | 3.97 | % | | | 1.51 | % |
Return on Average Equity (ROE) | | | 8.53 | % | | | 14.42 | % | | | 14.19 | % | | | 24.18 | % | | | 8.95 | % |
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Reported Balance Sheet Statistics (period end) | | | | | | | | | | | | | | | | | | | | |
Loans Held for Investment | | $ | 96,512 | | | $ | 63,612 | | | $ | 60,603 | | | $ | 58,119 | | | $ | 59,848 | |
Total Assets | | $ | 149,996 | | | $ | 94,907 | | | $ | 89,530 | | | $ | 89,273 | | | $ | 88,701 | |
Held for Investment Loan Growth Q Over Q | | $ | 32,900 | | | $ | 3,009 | | | $ | 2,484 | | | $ | (1,729 | ) | | $ | 20,996 | |
% Held for Investment Loan Growth Y Over Y | | | 61 | % | | | 64 | % | | | 57 | % | | | 53 | % | | | 57 | % |
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Revenue & Expense Statistics (Reported) | | | | | | | | | | | | | | | | | | | | |
Net Interest Income Growth (annualized) | | | 33 | % | | | 33 | % | | | (3 | )% | | | 66 | % | | | 56 | % |
Non Interest Income Growth (annualized) | | | (21 | )% | | | 12 | % | | | (32 | )% | | | 46 | % | | | 18 | % |
Revenue Growth (annualized) | | | 2 | % | | | 20 | % | | | (21 | )% | | | 54 | % | | | 32 | % |
Net Interest Margin | | | 5.64 | % | | | 6.37 | % | | | 6.04 | % | | | 6.16 | % | | | 6.21 | % |
Revenue Margin | | | 12.35 | % | | | 15.03 | % | | | 14.67 | % | | | 15.65 | % | | | 16.19 | % |
Risk Adjusted Margin(10) | | | 10.56 | % | | | 13.22 | % | | | 13.18 | % | | | 14.12 | % | | | 13.49 | % |
Operating Expense as a % of Revenues | | | 51.83 | % | | | 44.44 | % | | | 45.55 | % | | | 40.77 | % | | | 45.95 | % |
Operating Expense as a % of Avg Loans (annualized) | | | 8.51 | % | | | 8.70 | % | | | 9.00 | % | | | 8.60 | % | | | 10.20 | % |
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Asset Quality Statistics (Reported) | | | | | | | | | | | | | | | | | | | | |
Allowance | | $ | 2,180 | | | $ | 1,840 | | | $ | 1,765 | | | $ | 1,675 | | | $ | 1,790 | |
30+ Day Delinquencies | | $ | 2,648 | | | $ | 2,060 | | | $ | 1,772 | | | $ | 1,559 | | | $ | 1,879 | |
Net Charge-Offs | | $ | 443 | | | $ | 369 | | | $ | 296 | | | $ | 301 | | | $ | 451 | |
Allowance as a % of Reported Loans | | | 2.26 | % | | | 2.89 | % | | | 2.91 | % | | | 2.88 | % | | | 2.99 | % |
Delinquency Rate (30+ days) | | | 2.74 | % | | | 3.24 | % | | | 2.92 | % | | | 2.68 | % | | | 3.14 | % |
Net Charge-Off Rate | | | 2.37 | % | | | 2.36 | % | | | 2.01 | % | | | 2.07 | % | | | 3.70 | % |
CAPITAL ONE FINANCIAL CORPORATION (COF)
FINANCIAL & STATISTICAL SUMMARY MANAGED BASIS (*)
| | | | | | | | | | | | | | | | | | | | |
(in millions) | | 2006 Q4 | | | 2006 Q3(11) | | | 2006 Q2 | | | 2006 Q1 | | | 2005 Q4 | |
Earnings (Managed Basis) | | | | | | | | | | | | | | | | | | | | |
Net Interest Income | | $ | 2,347.3 | | | $ | 2,217.8 | | | $ | 2,140.8 | | | $ | 2,235.0 | | | $ | 2,075.2 | |
Non-Interest Income | | | 1,206.0 | (2) | | | 1,275.4 | (2) | | | 1,199.4 | (2) | | | 1,222.2 | | | | 1,243.4 | (1) |
| | | | | | | | | | | | | | | | | | | | |
Total Revenue(4) | | | 3,553.3 | | | | 3,493.2 | | | | 3,340.2 | | | | 3,457.2 | (3) | | | 3,318.6 | |
Provision for Loan Losses | | | 998.1 | | | | 867.9 | | | | 795.6 | | | | 562.3 | (3) | | | 1,181.8 | |
Marketing Expenses | | | 395.7 | | | | 368.5 | | | | 356.7 | | | | 323.8 | | | | 447.4 | |
Operating Expenses | | | 1,590.5 | | | | 1,358.1 | | | | 1,324.2 | | | | 1,249.7 | | | | 1,241.7 | (5) |
| | | | | | | | | | | | | | | | | | | | |
Income Before Taxes | | | 569.0 | | | | 898.7 | | | | 863.7 | | | | 1,321.4 | | | | 447.7 | |
Tax Rate(6) | | | 31.3 | % | | | 34.6 | % | | | 36.0 | % | | | 33.2 | % | | | 37.3 | % |
Net Income | | $ | 390.7 | | | $ | 587.8 | | | $ | 552.6 | | | $ | 883.3 | | | $ | 280.3 | |
| | | | | |
Managed Balance Sheet Statistics (period avg.) | | | | | | | | | | | | | | | | | | | | |
Average Loans Held for Investment | | $ | 123,902 | | | $ | 110,512 | | | $ | 106,090 | | | $ | 104,610 | | | $ | 94,241 | |
Average Earning Assets(7) | | $ | 146,680 | | | $ | 127,616 | | | $ | 124,307 | | | $ | 122,587 | | | $ | 110,253 | |
Average Assets | | $ | 162,396 | | | $ | 139,833 | | | $ | 136,351 | | | $ | 134,797 | | | $ | 119,406 | |
Return on Average Assets (ROA) | | | 0.96 | % | | | 1.68 | % | | | 1.62 | % | | | 2.62 | % | | | 0.94 | % |
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Managed Balance Sheet Statistics (period end) | | | | | | | | | | | | | | | | | | | | |
Loans Held for Investment | | $ | 146,151 | | | $ | 112,239 | | | $ | 108,433 | | | $ | 103,907 | | | $ | 105,527 | |
Total Assets | | $ | 198,902 | | | $ | 142,977 | | | $ | 136,819 | | | $ | 134,530 | | | $ | 133,786 | |
Held for Investment Loan Growth Q Over Q | | $ | 33,912 | | | $ | 3,806 | | | $ | 4,526 | | | $ | (1,620 | ) | | $ | 20,759 | |
% Held for Investment Loan Growth Y over Y | | | 38 | % | | | 32 | % | | | 31 | % | | | 27 | % | | | 32 | % |
Tangible Assets(8) | | $ | 184,007 | | | $ | 138,673 | | | $ | 132,527 | | | $ | 130,211 | | | $ | 129,484 | |
Tangible Capital(9) | | $ | 11,964 | | | $ | 13,514 | | | $ | 12,094 | | | $ | 11,016 | | | $ | 9,994 | |
Tangible Capital to Tangible Assets Ratio | | | 6.50 | % | | | 9.75 | % | | | 9.13 | % | | | 8.46 | % | | | 7.72 | % |
% Off-Balance Sheet Securitizations | | | 34 | % | | | 43 | % | | | 44 | % | | | 44 | % | | | 43 | % |
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Revenue & Expense Statistics (Managed) | | | | | | | | | | | | | | | | | | | | |
Net Interest Income Growth (annualized) | | | 23 | % | | | 14 | % | | | (17 | )% | | | 31 | % | | | 30 | % |
Non Interest Income Growth (annualized) | | | (22 | )% | | | 25 | % | | | (7 | )% | | | (7 | )% | | | 52 | % |
Revenue Growth (annualized) | | | 7 | % | | | 18 | % | | | (14 | )% | | | 17 | % | | | 38 | % |
Net Interest Margin | | | 6.40 | % | | | 6.95 | % | | | 6.89 | % | | | 7.29 | % | | | 7.53 | % |
Revenue Margin | | | 9.69 | % | | | 10.95 | % | | | 10.75 | % | | | 11.28 | % | | | 12.04 | % |
Risk Adjusted Margin(10) | | | 7.16 | % | | | 8.42 | % | | | 8.40 | % | | | 9.02 | % | | | 8.17 | % |
Operating Expense as a % of Revenues | | | 44.76 | % | | | 38.88 | % | | | 39.64 | % | | | 36.15 | % | | | 37.42 | % |
Operating Expense as a % of Avg Loans (annualized) | | | 5.13 | % | | | 4.92 | % | | | 4.99 | % | | | 4.78 | % | | | 5.27 | % |
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Asset Quality Statistics (Managed) | | | | | | | | | | | | | | | | | | | | |
30+ Day Delinquencies | | $ | 4,414 | | | $ | 3,693 | | | $ | 3,306 | | | $ | 3,039 | | | $ | 3,424 | |
Net Charge-Offs | | $ | 927 | | | $ | 806 | | | $ | 729 | | | $ | 693 | | | $ | 1,067 | |
Delinquency Rate (30+ days) | | | 3.02 | % | | | 3.29 | % | | | 3.05 | % | | | 2.92 | % | | | 3.24 | % |
Net Charge-Off Rate | | | 2.99 | % | | | 2.92 | % | | | 2.75 | % | | | 2.65 | % | | | 4.53 | % |
| (*) | The information in this statistical summary reflects the adjustment to add back the effect of securitization transactions qualifying as sales under generally accepted accounting principles. See accompanying schedule - “Reconciliation to GAAP Financial Measures”. |
CAPITAL ONE FINANCIAL CORPORATION (COF)
FINANCIAL & STATISTICAL SUMMARY NOTES
| (1) | Includes a $34 million gain from the sale of previously purchased charged-off loan portfolios. |
| (2) | Includes a $20.5 million gain in Q2 2006 as a result of the MasterCard, Inc. initial public offering and losses of $20.8 million in Q2 2006, $9.4 million in Q3 2006 and $19.9 million in Q4 2006 related to the derivative entered into in April 2006 to mitigate certain exposures we faced as a result of our acquisition of North Fork. |
| (3) | Includes the impact of the sale of charged-off loans resulting in an increase of $76.8 million on reported basis and $66.4 million on managed basis, respectively, to various revenue line items, the majority of which was recorded to other non-interest income and a reduction of $7 million on reported basis and $17.4 million on managed basis, respectively, to the provision for loan losses through an increase in recoveries for the sale of charged-off loans originated by the Company. |
| (4) | In accordance with the Company’s finance charge and fee revenue recognition policy, the amounts billed to customers but not recognized as revenue were as follows: Q4 2006 - $248.3, Q3 2006 - $226.3, Q2 2006 - $215.0, Q1 2006 - $170.9 and Q4 2005 - $227.9. |
| (5) | Includes a $28.2 million impairment charge related to our insurance business in Global Financial Services and a $20.6 million prepayment penalty for the refinancing of the McLean Headquarters facility. |
| (6) | Includes resolution of IRS tax issues resulting in reduction of tax expense as follows: Q4 2006 - $28.8 million, Q3 2006 - $18.7 million, Q2 - $10.7 million and Q1 - $34.9 million. |
| (7) | Prior quarter data has been updated to include Average Mortgage Loans Held for Sale. |
| (8) | Includes managed assets less intangible assets. |
| (9) | Includes stockholders’ equity and preferred interests less intangible assets. Tangible Capital on a reported and managed basis is the same. |
| (10) | Risk adjusted margin is total revenue less net charge-offs as a percentage of average earning assets. |
| (11) | Subsequent to the Company’s Form 8-K filing dated October 18, 2006, two balances on the Balance Sheet have been adjusted. Interest-bearing deposits at other banks and Non-interest bearing deposits have been revised, as well as the related metrics impacted by the decrease in earning assets. This adjustment, reflected in the Form 10-Q, increased reported and managed return on assets, net interest margin, revenue margin and net interest spread. |
CAPITAL ONE FINANCIAL CORPORATION (COF)
IMPACT OF NORTH FORK BANCORPORATION (NFB) ACQUISITION
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| | | Q4 2006 | | | 2006 | |
(in millions, except per share data and as
noted) | | COF | | | NFB (1) | | | Adjustments (2) | | | COF w/out
NFB | | | COF | | | NFB (1) | | | Adjustments (2) | | | COF w/out
NFB | |
Earnings (Reported Basis) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Revenue | | $ | 3,068.4 | | | $ | 160.1 | | | $ | (61.0 | ) | | $ | 2,969.3 | | | $ | 12,096.4 | | | $ | 160.1 | | | $ | (104.4 | ) | | $ | 12,040.7 | |
Provision for Loan Losses | | | 513.2 | | | | 3.5 | | | | — | | | | 509.7 | | | | 1,476.4 | | | | 3.5 | | | | — | | | $ | 1,472.9 | |
Total Non-interest Expense | | | 1,986.2 | | | | 98.9 | | | | 3.9 | | | | 1,883.4 | | | | 6,967.2 | | | | 98.9 | | | | 4.9 | | | $ | 6,863.4 | |
Net Income | | $ | 390.7 | | | $ | 37.5 | | | $ | (42.8 | ) | | $ | 396.0 | | | $ | 2,414.5 | | | $ | 37.5 | | | $ | (72.2 | ) | | $ | 2,449.2 | |
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Common Share Statistics | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Diluted EPS | | $ | 1.14 | | | | | | | | | | | $ | 1.28 | | | $ | 7.62 | | | | | | | | | | | $ | 7.94 | |
Shares Used to Compute Diluted EPS | | | 343.8 | | | | | | | | | | | | 309.7 | | | | 317.0 | | | | | | | | | | | | 308.4 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Reported Balance Sheet Statistics (period end) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Liquidity Portfolio(3) | | $ | 27,967 | | | $ | 13,554 | | | $ | 14 | | | $ | 14,399 | | | $ | 27,967 | | | $ | 13,554 | | | $ | 14 | | | $ | 14,399 | |
Loans Held for Investment | | $ | 96,512 | | | $ | 31,741 | | | | | | | $ | 64,771 | | | $ | 96,512 | | | $ | 31,741 | | | | | | | $ | 64,771 | |
Less: Allowance for loan losses | | $ | (2,180 | ) | | $ | (222 | ) | | | | | | $ | (1,958 | ) | | $ | (2,180 | ) | | $ | (222 | ) | | | | | | $ | (1,958 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net Loans Held for Investment | | $ | 94,332 | | | $ | 31,519 | | | | | | | $ | 62,813 | | | $ | 94,332 | | | $ | 31,519 | | | | | | | $ | 62,813 | |
Goodwill | | $ | 13,635 | | | $ | 9,714 | | | | | | | $ | 3,921 | | | $ | 13,635 | | | $ | 9,714 | | | | | | | $ | 3,921 | |
Core deposit intangible | | $ | 1,318 | | | $ | 938 | | | | | | | $ | 380 | | | $ | 1,318 | | | $ | 938 | | | | | | | $ | 380 | |
Total Assets | | $ | 149,996 | | | $ | 58,744 | | | $ | 347 | | | $ | 90,905 | | | $ | 149,996 | | | $ | 58,744 | | | $ | 347 | | | $ | 90,905 | |
Deposits(4) | | $ | 85,771 | | | $ | 38,544 | | | | | | | $ | 47,227 | | | $ | 85,771 | | | $ | 38,544 | | | | | | | $ | 47,227 | |
Debt(5) | | $ | 33,982 | | | $ | 4,878 | | | $ | 5,528 | | | $ | 23,576 | | | $ | 33,982 | | | $ | 4,878 | | | $ | 5,528 | | | $ | 23,576 | |
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Return on Average Assets (ROA) (period avg.) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
ROA (Reported) | | | 1.37 | % | | | | | | | | | | | 1.69 | % | | | 2.51 | % | | | | | | | | | | | 2.69 | % |
ROA (Managed) | | | 0.96 | % | | | | | | | | | | | 1.11 | % | | | 1.69 | % | | | | | | | | | | | 1.77 | % |
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Managed Balance Sheet Statistics (period end) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Loans Held for Investment | | $ | 146,151 | | | $ | 31,741 | | | | | | | $ | 114,410 | | | $ | 146,151 | | | $ | 31,741 | | | | | | | $ | 114,410 | |
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Revenue & Expense Statistics | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Revenue Margin (Reported) | | | 12.35 | % | | | | | | | | | | | 14.16 | % | | | 14.31 | % | | | | | | | | | | | 14.94 | % |
Revenue Margin (Managed) | | | 9.69 | % | | | | | | | | | | | 10.54 | % | | | 10.63 | % | | | | | | | | | | | 10.91 | % |
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Asset Quality Statistics | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Delinquency Rate (30+ days) (Reported) | | | 2.74 | % | | | | | | | | | | | 3.77 | % | | | 2.74 | % | | | | | | | | | | | 3.77 | % |
Delinquency Rate (30+ days) (Managed) | | | 3.02 | % | | | | | | | | | | | 3.68 | % | | | 3.02 | % | | | | | | | | | | | 3.68 | % |
Net Charge-Off Rate (Reported) | | | 2.37 | % | | | | | | | | | | | 2.72 | % | | | 2.21 | % | | | | | | | | | | | 2.30 | % |
Net Charge-Off Rate (Managed) | | | 2.99 | % | | | | | | | | | | | 3.25 | % | | | 2.84 | % | | | | | | | | | | | 2.90 | % |
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| (1) | Includes the stand alone assets and liabilities of North Fork as of December 31, 2006, and the stand alone income and expenses of North Fork for the period December 1, 2006 through December 31,2006. These results include the impact of core deposit amortization and exclude the gain on sale of mortgage loans that were marked to market as a result of the acquisition. |
| (2) | Income statement adjustments include interest expense on debt issued partially offset by income on the related liquidity portfolio, swaption expense, and North Fork integration charges. Balance sheet adjustments include assets and liabilities held by the parent of North Fork at acquisition and additional debt incurred to finance the acquisition. |
| (3) | Includes federal funds sold and resale agreements, interest-bearing deposits at other banks, securities available for sale and mortgage loans held for sale. |
| (4) | Includes non-interest bearing and interest-bearing deposits. |
| (5) | Includes senior and subordinated notes and other borrowings. |
CAPITAL ONE FINANCIAL CORPORATION (COF)
SEGMENT FINANCIAL & STATISTICAL SUMMARY - MANAGED BASIS(1)
| | | | | | | | | | | | | | | | | | | | |
(in thousands) | | 2006 Q4 | | | 2006 Q3 | | | 2006 Q2 | | | 2006 Q1 | | | 2005 Q4 | |
Segment Statistics | | | | | | | | | | | | | | | | | | | | |
US Card: | | | | | | | | | | | | | | | | | | | | |
Interest Income | | $ | 1,795,345 | | | $ | 1,734,459 | | | $ | 1,628,144 | | | $ | 1,714,559 | | | $ | 1,665,450 | |
Interest Expense | | | 600,821 | | | | 554,708 | | | | 507,722 | | | | 493,458 | | | | 481,656 | |
| | | | | | | | | | | | | | | | | | | | |
Net interest income | | $ | 1,194,524 | | | $ | 1,179,751 | | | $ | 1,120,422 | | | $ | 1,221,101 | | | $ | 1,183,794 | |
Non-interest income | | | 795,881 | | | | 881,304 | | | | 803,083 | | | | 775,413 | | | | 844,286 | |
Provision for loan losses | | | 554,698 | | | | 451,782 | | | | 413,701 | | | | 224,438 | | | | 767,103 | |
Non-interest expenses | | | 916,963 | | | | 899,062 | | | | 860,874 | | | | 844,729 | | | | 892,521 | |
Income tax provision (benefit) | | | 181,561 | | | | 248,574 | | | | 227,125 | | | | 324,573 | | | | 131,415 | |
| | | | | | | | | | | | | | | | | | | | |
Net income (loss) | | $ | 337,183 | | | $ | 461,637 | | | $ | 421,805 | | | $ | 602,774 | | | $ | 237,041 | |
| | | | | | | | | | | | | | | | | | | | |
Loans Held for Investment | | $ | 53,623,680 | | | $ | 51,127,654 | | | $ | 48,736,483 | | | $ | 47,142,650 | | | $ | 49,463,522 | |
Average loans Held for Investment | | $ | 51,686,135 | | | $ | 50,131,562 | | | $ | 47,856,045 | | | $ | 48,217,926 | | | $ | 46,857,527 | |
Loan Yield | | | 13.89 | % | | | 13.84 | % | | | 13.61 | % | | | 14.22 | % | | | 14.22 | % |
Net charge-off rate | | | 3.82 | % | | | 3.39 | % | | | 3.29 | % | | | 2.93 | % | | | 5.70 | % |
Delinquency Rate (30+ days) | | | 3.74 | % | | | 3.53 | % | | | 3.30 | % | | | 3.31 | % | | | 3.44 | % |
Core Deposits(5) | | | — | | | | 131,772 | | | | 131,772 | | | | 138,722 | | | | N/A | |
Total Deposits | | | — | | | | 131,772 | | | | 131,772 | | | | 138,722 | | | | N/A | |
Purchase Volume(2) | | $ | 22,782,451 | | | $ | 21,450,024 | | | $ | 20,878,732 | | | $ | 18,015,669 | | | $ | 21,209,357 | |
Number of Accounts (000s) | | | 37,630 | | | | 37,483 | | | | 37,199 | | | | 37,258 | | | | 37,645 | |
| | | | | |
Auto Finance: | | | | | | | | | | | | | | | | | | | | |
Interest Income | | $ | 610,381 | | | $ | 591,711 | | | $ | 563,734 | | | $ | 536,657 | | | $ | 465,124 | |
Interest Expense | | | 242,311 | | | | 227,053 | | | | 207,497 | | | | 187,827 | | | | 151,100 | |
| | | | | | | | | | | | | | | | | | | | |
Net interest income | | $ | 368,070 | | | $ | 364,658 | | | $ | 356,237 | | | $ | 348,830 | | | $ | 314,024 | |
Non-interest income | | | (2,970 | ) | | | 4,846 | | | | 13,839 | | | | 391 | | | | (1,358 | ) |
Provision for loan losses | | | 151,171 | | | | 161,145 | | | | 74,714 | | | | 107,805 | | | | 161,651 | |
Non-interest expenses | | | 162,022 | | | | 154,014 | | | | 149,115 | | | | 134,655 | | | | 138,412 | |
Income tax provision (benefit) | | | 18,167 | | | | 19,021 | | | | 51,186 | | | | 37,366 | | | | 4,512 | |
| | | | | | | | | | | | | | | | | | | | |
Net income (loss) | | $ | 33,740 | | | $ | 35,324 | | | $ | 95,061 | | | $ | 69,395 | | | $ | 8,091 | |
| | | | | | | | | | | | | | | | | | | | |
Loans Held for Investment | | $ | 21,751,827 | | | $ | 21,158,797 | | | $ | 20,558,455 | | | $ | 19,848,190 | | | $ | 16,372,019 | |
Average loans Held for Investment | | $ | 21,498,205 | | | $ | 20,812,533 | | | $ | 20,187,631 | | | $ | 19,440,128 | | | $ | 16,095,793 | |
Loan Yield | | | 11.36 | % | | | 11.37 | % | | | 11.17 | % | | | 11.04 | % | | | 11.56 | % |
Net charge-off rate | | | 2.85 | % | | | 2.34 | % | | | 1.54 | % | | | 2.35 | % | | | 3.32 | % |
Delinquency Rate (30+ days) | | | 6.35 | % | | | 5.18 | % | | | 4.55 | % | | | 3.57 | % | | | 5.71 | % |
Core Deposits(5) | | | 6,061 | | | | 5,818 | | | | 7,200 | | | | 9,586 | | | | N/A | |
Total Deposits | | | 6,061 | | | | 5,818 | | | | 7,200 | | | | 9,586 | | | | N/A | |
Auto Loan Originations(3) | | $ | 3,078,877 | | | $ | 3,158,481 | | | $ | 3,107,409 | | | $ | 2,940,540 | | | $ | 2,563,372 | |
Number of Accounts (000s) | | | 1,589 | | | | 1,558 | | | | 1,525 | | | | 1,480 | | | | 1,438 | |
| | | | | |
Global Financial Services: | | | | | | | | | | | | | | | | | | | | |
Interest Income | | $ | 793,400 | | | $ | 768,262 | | | $ | 725,256 | | | $ | 692,246 | | | $ | 681,624 | |
Interest Expense | | | 319,974 | | | | 307,518 | | | | 279,804 | | | | 253,997 | | | | 249,289 | |
| | | | | | | | | | | | | | | | | | | | |
Net interest income | | $ | 473,426 | | | $ | 460,744 | | | $ | 445,452 | | | $ | 438,249 | | | $ | 432,335 | |
Non-interest income | | | 295,216 | | | | 311,439 | | | | 297,080 | | | | 283,352 | | | | 250,349 | |
Provision for loan losses | | | 304,968 | | | | 249,448 | | | | 296,614 | | | | 217,365 | | | | 263,664 | |
Non-interest expenses | | | 455,538 | | | | 358,806 | | | | 365,149 | | | | 330,172 | | | | 410,670 | |
Income tax provision (benefit) | | | 6,040 | | | | 56,771 | | | | 29,614 | | | | 60,520 | | | | 1,299 | |
| | | | | | | | | | | | | | | | | | | | |
Net income (loss) | | $ | 2,096 | | | $ | 107,158 | | | $ | 51,155 | | | $ | 113,544 | | | $ | 7,051 | |
| | | | | | | | | | | | | | | | | | | | |
Loans Held for Investment | | $ | 26,983,673 | | | $ | 26,623,519 | | | $ | 25,935,716 | | | $ | 23,732,515 | | | $ | 23,386,490 | |
Average loans Held for Investment | | $ | 26,697,140 | | | $ | 26,364,992 | | | $ | 24,910,879 | | | $ | 23,668,326 | | | $ | 23,129,203 | |
Loan Yield (4) | | | 11.80 | % | | | 11.58 | % | | | 11.58 | % | | | 11.64 | % | | | 11.74 | % |
Net charge-off rate | | | 3.89 | % | | | 3.70 | % | | | 3.90 | % | | | 3.63 | % | | | 4.33 | % |
Delinquency Rate (30+ days) | | | 2.97 | % | | | 2.86 | % | | | 2.82 | % | | | 2.90 | % | | | 2.83 | % |
Core Deposits(5) | | | — | | | | 12 | | | | 12 | | | | 13 | | | | N/A | |
Total Deposits | | | 2,377,841 | | | | 2,324,351 | | | | 2,295,707 | | | | 2,269,358 | | | | N/A | |
Number of Accounts (000s) | | | 10,155 | | | | 10,135 | | | | 10,130 | | | | 10,013 | | | | 9,928 | |
| (1) | The information in this statistical summary reflects the adjustment to add back the effect of securitization transactions qualifying as sales under generally accepted accounting principles. See accompanying schedule - “Reconciliation to GAAP Financial Measures”. |
| (2) | Includes all purchase transactions net of returns and excludes cash advance transactions. |
| (3) | Includes all organic auto loan originations and excludes auto loans added through acquisitions. |
| (4) | Excludes “GFS - Home Loans Originations” and “GFS - Settlement Services” from Other Interest Income. |
| (5) | Includes domestic non-interest bearing deposits, NOW accounts, money market deposit accounts, savings accounts, certificates of deposit of less than $100,000 and other consumer time deposits. |
CAPITAL ONE FINANCIAL CORPORATION (COF)
SEGMENT FINANCIAL & STATISTICAL SUMMARY - MANAGED BASIS(1) CONTINUED
| | | | | | | | | | | | | | | | | | | | |
(in thousands) | | 2006 Q4 | | | 2006 Q3 | | | 2006 Q2 | | | 2006 Q1 | | | 2005 Q4 | |
Segment Statistics | | | | | | | | | | | | | | | | | | | | |
Banking: | | | | | | | | | | | | | | | | | | | | |
Interest Income | | $ | 721,102 | | | $ | 719,207 | | | $ | 682,679 | | | $ | 650,985 | | | | | |
Interest Expense | | | 476,523 | | | | 461,009 | | | | 433,451 | | | | 406,061 | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Net interest income | | $ | 244,579 | | | $ | 258,198 | | | $ | 249,228 | | | $ | 244,924 | | | | | |
Non-interest income | | | 112,021 | | | | 115,526 | | | | 114,039 | | | | 104,485 | | | | | |
Provision for loan losses | | | (21,549 | ) | | | 5,495 | | | | 6,632 | | | | 9,821 | | | | | |
Non-interest expenses | | | 307,810 | | | | 297,080 | | | | 289,996 | | | | 272,987 | | | | | |
Income tax provision (benefit) | | | 24,619 | | | | 24,902 | | | | 23,324 | | | | 23,310 | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Net income (loss) | | $ | 45,720 | | | $ | 46,247 | | | $ | 43,315 | | | $ | 43,291 | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Loans Held for Investment | | $ | 12,145,533 | | | $ | 13,326,088 | | | $ | 13,189,112 | | | $ | 13,169,792 | | | | | |
Average loans Held for Investment | | $ | 13,330,876 | | | $ | 13,171,414 | | | $ | 13,115,534 | | | $ | 13,283,515 | | | | | |
Loan Yield | | | 7.98 | % | | | 8.02 | % | | | 7.63 | % | | | 7.38 | % | | | | |
Net charge-off rate | | | 0.40 | % | | | 0.48 | % | | | 0.45 | % | | | 0.38 | % | | | | |
Delinquency Rate (30+ days) | | | 0.31 | % | | | 0.36 | % | | | 0.38 | % | | | 0.75 | % | | | | |
Core Deposits(2) | | | 27,071,324 | | | | 26,997,345 | | | | 27,857,265 | | | | 27,996,290 | | | | | |
Total Deposits | | | 35,334,610 | | | | 35,163,849 | | | | 35,281,970 | | | | 35,396,221 | | | | | |
Number of Active ATMs | | | 661 | | | | 623 | | | | 586 | | | | 542 | | | | | |
Number of locations(3) | | | 358 | | | | 342 | | | | 325 | | | | 317 | | | | | |
| | | | | |
Other:(4) | | | | | | | | | | | | | | | | | | | | |
Net interest income | | $ | 66,657 | | | $ | (45,529 | ) | | $ | (30,510 | ) | | $ | (18,134 | ) | | $ | 145,043 | |
Non-interest income | | | 5,906 | | | | (37,706 | ) | | | (28,709 | ) | | | 58,553 | | | | 150,153 | |
Provision for loan losses | | | 8,840 | | | | 27 | | | | 3,950 | | | | 2,877 | | | | (10,631 | ) |
Non-interest expenses | | | 143,855 | | | | 17,667 | | | | 15,763 | | | | (9,064 | ) | | | 247,583 | |
Income tax provision (benefit) | | | (52,121 | ) | | | (38,402 | ) | | | (20,183 | ) | | | (7,729 | ) | | | 30,109 | |
| | | | | | | | | | | | | | | | | | | | |
Net income (loss) | | $ | (28,011 | ) | | $ | (62,527 | ) | | $ | (58,749 | ) | | $ | 54,335 | | | $ | 28,135 | |
| | | | | | | | | | | | | | | | | | | | |
Loans Held for Investment | | $ | 31,646,555 | | | $ | 2,488 | | | $ | 13,673 | | | $ | 13,629 | | | $ | 16,305,460 | |
Core Deposits(2) | | | 42,819,710 | | | | 7,301,435 | | | | 5,889,261 | | | | 5,990,673 | | | | N/A | |
Total Deposits | | | 48,052,380 | | | | 9,987,360 | | | | 9,470,164 | | | | 9,985,600 | | | | N/A | |
| | | | | |
Total: | | | | | | | | | | | | | | | | | | | | |
Interest Income | | $ | 3,931,054 | | | $ | 3,595,874 | | | $ | 3,414,411 | | | $ | 3,436,829 | | | $ | 3,175,960 | |
Interest Expense | | $ | 1,583,798 | | | | 1,378,052 | | | | 1,273,582 | | | | 1,201,859 | | | | 1,100,764 | |
| | | | | | | | | | | | | | | | | | | | |
Net interest income | | $ | 2,347,256 | | | $ | 2,217,822 | | | $ | 2,140,829 | | | $ | 2,234,970 | | | $ | 2,075,196 | |
Non-interest income | | | 1,206,054 | | | | 1,275,409 | | | | 1,199,332 | | | | 1,222,194 | | | | 1,243,430 | |
Provision for loan losses | | | 998,128 | | | | 867,897 | | | | 795,611 | | | | 562,306 | | | | 1,181,787 | |
Non-interest expenses | | | 1,986,188 | | | | 1,726,629 | | | | 1,680,897 | | | | 1,573,479 | | | | 1,689,186 | |
Income tax provision (benefit) | | | 178,266 | | | | 310,866 | | | | 311,066 | | | | 438,040 | | | | 167,335 | |
| | | | | | | | | | | | | | | | | | | | |
Net income (loss) | | $ | 390,728 | | | $ | 587,839 | | | $ | 552,587 | | | $ | 883,339 | | | $ | 280,318 | |
| | | | | | | | | | | | | | | | | | | | |
Loans Held for Investment | | $ | 146,151,268 | | | $ | 112,238,546 | | | $ | 108,433,439 | | | $ | 103,906,776 | | | $ | 105,527,491 | |
Core Deposits(2) | | | 69,897,095 | | | | 34,436,382 | | | | 33,885,510 | | | | 34,135,284 | | | | N/A | |
Total Deposits | | | 85,770,892 | | | | 47,613,150 | | | | 47,186,813 | | | | 47,779,465 | | | | N/A | |
| (1) | The information in this statistical summary reflects the adjustment to add back the effect of securitization transactions qualifying as sales under generally accepted accounting principles. See accompanying schedule - “Reconciliation to GAAP Financial Measures”. |
| (2) | Includes domestic non-interest bearing deposits, NOW accounts, money market deposit accounts, savings accounts, certificates of deposit of less than $100,000 and other consumer time deposits. |
| (3) | Q4: Number of locations includes 344 branches and 14 other customer centers and excludes 7 branches that remain closed due to hurricane damage. Q3: Number of locations includes 329 branches and 13 other customer centers and excludes 7 branches that remain closed due to hurricane damage. Q2: Number of locations includes 312 branches and 13 other customer centers and excludes 16 branches that remain closed due to hurricane damage. Q1: Number of locations includes 303 branches and 14 other customer centers and excludes 18 branches that remain closed due to hurricane damage. |
| (4) | Q4 2005 includes the acquisition of Hibernia and Q4 2006 includes the acquisition of North Fork. |
CAPITAL ONE FINANCIAL CORPORATION
Reconciliation to GAAP Financial Measures
For the Three Months Ended December 31, 2006
(dollars in thousands)(unaudited)
The Company’s consolidated financial statements prepared in accordance with generally accepted accounting principles (“GAAP”) are referred to as its “reported” financial statements. Loans included in securitization transactions which qualified as sales under GAAP have been removed from the Company’s “reported” balance sheet. However, servicing fees, finance charges, and other fees, net of charge-offs, and interest paid to investors of securitizations are recognized as servicing and securitizations income on the “reported” income statement.
The Company’s “managed” consolidated financial statements reflect adjustments made related to effects of securitization transactions qualifying as sales under GAAP. The Company generates earnings from its “managed” loan portfolio which includes both the on-balance sheet loans and off-balance sheet loans. The Company’s “managed” income statement takes the components of the servicing and securitizations income generated from the securitized portfolio and distributes the revenue and expense to appropriate income statement line items from which it originated. For this reason the Company believes the “managed” consolidated financial statements and related managed metrics to be useful to stakeholders.
| | | | | | | | | | |
| | | Total Reported | | Adjustments(1) | | | Total Managed(2) |
Income Statement Measures | | | | | | | | | | |
Net interest income | | $ | 1,401,156 | | $ | 946,100 | | | $ | 2,347,256 |
Non-interest income | | $ | 1,667,183 | | $ | (461,129 | ) | | $ | 1,206,054 |
Total revenue | | $ | 3,068,339 | | $ | 484,971 | | | $ | 3,553,310 |
Provision for loan losses | | $ | 513,157 | | $ | 484,971 | | | $ | 998,128 |
Net charge-offs | | $ | 442,521 | | $ | 484,971 | | | $ | 927,492 |
| | | |
Balance Sheet Measures | | | | | | | | | | |
Loans Held for Investment | | $ | 96,512,139 | | $ | 49,639,129 | | | $ | 146,151,268 |
Total assets | | $ | 149,995,737 | | $ | 48,905,780 | | | $ | 198,901,517 |
Average loans Held for Investment | | $ | 74,737,753 | | $ | 49,164,207 | | | $ | 123,901,960 |
Average earning assets | | $ | 99,415,904 | | $ | 47,264,449 | | | $ | 146,680,353 |
Average total assets | | $ | 113,889,864 | | $ | 48,506,384 | | | $ | 162,396,248 |
Delinquencies | | $ | 2,648,403 | | $ | 1,765,642 | | | $ | 4,414,045 |
| (1) | Income statement adjustments reclassify the net of finance charges of $1,422.4 million, past-due fees of $216.1 million, and interest expense of $692.4 million; and net charge-offs of $485.0 million from Non-interest income to Net interest income and Provision for loan losses, respectively. |
| (2) | The managed loan portfolio does not include auto loans which have been sold in whole loan sale transactions where the Company has retained servicing rights. |
CAPITAL ONE FINANCIAL CORPORATION
Consolidated Balance Sheets
(in thousands)(unaudited)
| | | | | | | | | | | | |
| | | As of
December 31
2006 | | | As of
September 30
2006 | | | As of
December 31
2005 | |
Assets: | | | | | | | | | | | | |
Cash and due from banks | | $ | 2,817,519 | | | $ | 1,461,132 | | | $ | 2,022,175 | |
Federal funds sold and resale agreements | | | 1,099,156 | | | | 3,340,809 | | | | 1,305,537 | |
Interest-bearing deposits at other banks | | | 743,821 | | | | 797,708 | | | | 743,555 | |
| | | | | | | | | | | | |
Cash and cash equivalents | | | 4,660,496 | | | | 5,599,649 | | | | 4,071,267 | |
Securities available for sale | | | 15,688,770 | | | | 13,960,709 | | | | 14,350,249 | |
Mortgage loans held for sale | | | 10,435,295 | | | | 311,169 | | | | 197,444 | |
Loans held for investment | | | 96,512,139 | | | | 63,612,169 | | | | 59,847,681 | |
Less: Allowance for loan losses | | | (2,180,000 | ) | | | (1,840,000 | ) | | | (1,790,000 | ) |
| | | | | | | | | | | | |
Net loans | | | 94,332,139 | | | | 61,772,169 | | | | 58,057,681 | |
Accounts receivable from securitizations | | | 4,589,235 | | | | 5,617,113 | | | | 4,904,547 | |
Premises and equipment, net | | | 2,203,280 | | | | 1,532,006 | | | | 1,191,406 | |
Interest receivable | | | 816,426 | | | | 529,104 | | | | 563,542 | |
Goodwill | | | 13,635,435 | | | | 3,964,177 | | | | 3,906,399 | |
Other | | | 3,634,661 | | | | 1,620,650 | | | | 1,458,876 | |
| | | | | | | | | | | | |
Total assets | | $ | 149,995,737 | | | $ | 94,906,746 | | | $ | 88,701,411 | |
| | | | | | | | | | | | |
Liabilities: | | | | | | | | | | | | |
Non-interest-bearing deposits | | $ | 11,648,070 | | | $ | 4,145,173 | | | $ | 4,841,171 | |
Interest-bearing deposits | | | 74,122,822 | | | | 43,467,977 | | | | 43,092,096 | |
Senior and subordinated notes | | | 9,725,470 | | | | 8,701,794 | | | | 6,743,979 | |
Other borrowings | | | 24,257,007 | | | | 17,619,817 | | | | 15,534,161 | |
Interest payable | | | 574,763 | | | | 387,000 | | | | 371,681 | |
Other | | | 4,432,399 | | | | 3,908,008 | | | | 3,989,409 | |
| | | | | | | | | | | | |
Total liabilities | | | 124,760,531 | | | | 78,229,769 | | | | 74,572,497 | |
Stockholders’ Equity: | | | | | | | | | | | | |
Common stock | | | 4,122 | | | | 3,065 | | | | 3,028 | |
Paid-in capital, net | | | 15,333,137 | | | | 7,237,785 | | | | 6,848,544 | |
Retained earnings and cumulative other comprehensive income | | | 10,026,364 | | | | 9,551,504 | | | | 7,384,144 | |
Less: Treasury stock, at cost | | | (128,417 | ) | | | (115,377 | ) | | | (106,802 | ) |
| | | | | | | | | | | | |
Total stockholders’ equity | | | 25,235,206 | | | | 16,676,977 | | | | 14,128,914 | |
| | | | | | | | | | | | |
Total liabilities and stockholders’ equity | | $ | 149,995,737 | | | $ | 94,906,746 | | | $ | 88,701,411 | |
| | | | | | | | | | | | |
CAPITAL ONE FINANCIAL CORPORATION
Consolidated Statements of Income
(in thousands, except per share data)(unaudited)
| | | | | | | | | | | | | | | |
| | | Three Months Ended | | Year Ended |
| | | December 31
2006 | | September 30
2006(1) | | December 31
2005(1) | | December 31
2006 | | December 31
2005(1) |
Interest Income: | | | | | | | | | | | | | | | |
Loans held for investment, including past-due fees | | $ | 2,002,111 | | $ | 1,814,803 | | $ | 1,408,545 | | $ | 7,046,473 | | $ | 5,010,839 |
Securities available for sale | | | 186,480 | | | 160,198 | | | 119,189 | | | 679,582 | | | 388,576 |
Mortgage loans held for sale | | | 55,896 | | | 6,354 | | | 8,799 | | | 71,063 | | | 8,799 |
Other | | | 108,932 | | | 83,716 | | | 97,565 | | | 397,111 | | | 318,667 |
| | | | | | | | | | | | | | | |
Total interest income | | | 2,353,419 | | | 2,065,071 | | | 1,634,098 | | | 8,194,229 | | | 5,726,881 |
Interest Expense: | | | | | | | | | | | | | | | |
Deposits | | | 552,385 | | | 442,571 | | | 344,063 | | | 1,814,797 | | | 1,173,137 |
Senior and subordinated notes | | | 136,282 | | | 96,300 | | | 103,836 | | | 411,643 | | | 421,218 |
Other borrowings | | | 263,596 | | | 231,685 | | | 149,200 | | | 868,159 | | | 452,284 |
| | | | | | | | | | | | | | | |
Total interest expense | | | 952,263 | | | 770,556 | | | 597,099 | | | 3,094,599 | | | 2,046,639 |
| | | | | | | | | | | | | | | |
Net interest income | | | 1,401,156 | | | 1,294,515 | | | 1,036,999 | | | 5,099,630 | | | 3,680,242 |
Provision for loan losses | | | 513,157 | | | 430,566 | | | 565,674 | | | 1,476,438 | | | 1,491,072 |
| | | | | | | | | | | | | | | |
Net interest income after provision for loan losses | | | 887,999 | | | 863,949 | | | 471,325 | | | 3,623,192 | | | 2,189,170 |
Non-Interest Income: | | | | | | | | | | | | | | | |
Servicing and securitizations | | | 959,436 | | | 1,071,091 | | | 1,021,415 | | | 4,209,637 | | | 3,945,183 |
Service charges and other customer-related fees | | | 462,086 | | | 459,125 | | | 376,223 | | | 1,770,340 | | | 1,493,690 |
Mortgage banking operations | | | 54,232 | | | 45,775 | | | 118,255 | | | 173,320 | | | 142,894 |
Interchange | | | 147,571 | | | 150,474 | | | 133,234 | | | 549,074 | | | 514,196 |
Other | | | 43,858 | | | 34,920 | | | 16,387 | | | 294,361 | | | 262,142 |
| | | | | | | | | | | | | | | |
Total non-interest income | | | 1,667,183 | | | 1,761,385 | | | 1,665,514 | | | 6,996,732 | | | 6,358,105 |
| | | | | |
Non-Interest Expense: | | | | | | | | | | | | | | | |
Salaries and associate benefits | | | 632,355 | | | 554,504 | | | 459,788 | | | 2,239,468 | | | 1,749,738 |
Marketing | | | 395,671 | | | 368,498 | | | 447,437 | | | 1,444,635 | | | 1,379,938 |
Communications and data processing | | | 188,481 | | | 183,020 | | | 154,936 | | | 713,439 | | | 580,992 |
Supplies and equipment | | | 137,843 | | | 111,625 | | | 98,761 | | | 460,680 | | | 355,734 |
Occupancy | | | 66,425 | | | 49,710 | | | 54,554 | | | 218,265 | | | 152,090 |
Other | | | 565,413 | | | 459,272 | | | 473,710 | | | 1,890,706 | | | 1,499,781 |
| | | | | | | | | | | | | | | |
Total non-interest expense | | | 1,986,188 | | | 1,726,629 | | | 1,689,186 | | | 6,967,193 | | | 5,718,273 |
| | | | | | | | | | | | | | | |
Income before income taxes | | | 568,994 | | | 898,705 | | | 447,653 | | | 3,652,731 | | | 2,829,002 |
Income taxes | | | 178,266 | | | 310,866 | | | 167,335 | | | 1,238,238 | | | 1,019,855 |
| | | | | | | | | | | | | | | |
Net income | | $ | 390,728 | | $ | 587,839 | | $ | 280,318 | | $ | 2,414,493 | | $ | 1,809,147 |
| | | | | | | | | | | | | | | |
Basic earnings per share | | $ | 1.16 | | $ | 1.95 | | $ | 1.01 | | $ | 7.80 | | $ | 6.98 |
| | | | | | | | | | | | | | | |
Diluted earnings per share | | $ | 1.14 | | $ | 1.89 | | $ | 0.97 | | $ | 7.62 | | $ | 6.73 |
| | | | | | | | | | | | | | | |
Dividends paid per share | | $ | 0.03 | | $ | 0.03 | | $ | 0.03 | | $ | 0.11 | | $ | 0.11 |
| | | | | | | | | | | | | | | |
| (1) | Certain prior period amounts have been reclassified to conform to the current period presentation. |
CAPITAL ONE FINANCIAL CORPORATION
Statements of Average Balances, Income and Expense, Yields and Rates
(dollars in thousands)(unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Quarter Ended 12/31/06 | | | Quarter Ended 9/30/06 (1) | | | Quarter Ended 12/31/05(1) | |
Reported | | Average
Balance | | Income/
Expense | | Yield/
Rate | | | Average
Balance | | Income/
Expense | | Yield/
Rate | | | Average
Balance | | Income/
Expense | | Yield/
Rate | |
Earning assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mortgage loans held for sale | | $ | 3,480,664 | | $ | 55,896 | | 6.42 | % | | $ | 294,574 | | $ | 6,354 | | 8.63 | % | | $ | 156,376 | | $ | 8,799 | | 22.51 | % |
Loans held for investment | | | 74,737,753 | | | 2,002,111 | | 10.72 | % | | | 62,428,789 | | | 1,814,803 | | 11.63 | % | | | 48,700,689 | | | 1,408,545 | | 11.57 | % |
Securities available for sale | | | 15,248,950 | | | 186,480 | | 4.89 | % | | | 14,587,307 | | | 160,198 | | 4.39 | % | | | 11,683,013 | | | 119,189 | | 4.08 | % |
Other | | | 5,948,537 | | | 108,932 | | 7.32 | % | | | 4,000,827 | | | 83,716 | | 8.37 | % | | | 6,240,217 | | | 97,565 | | 6.25 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total earning assets | | $ | 99,415,904 | | $ | 2,353,419 | | 9.47 | % | | $ | 81,311,497 | | $ | 2,065,071 | | 10.16 | % | | $ | 66,780,295 | | $ | 1,634,098 | | 9.79 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest-bearing liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest-bearing deposits | | | | | | | | | | | | | | | | | | | | | | | | | | | |
NOW accounts | | | 2,094,623 | | $ | 14,546 | | 2.78 | % | | $ | 619,460 | | $ | 4,816 | | 3.11 | % | | $ | 253,473 | | $ | 1,293 | | 2.04 | % |
Money market deposit accounts | | | 15,762,255 | | | 149,831 | | 3.80 | % | | | 11,237,206 | | | 103,073 | | 3.67 | % | | | 6,871,855 | | | 51,037 | | 2.97 | % |
Savings accounts | | | 5,425,790 | | | 31,386 | | 2.31 | % | | | 3,911,765 | | | 28,604 | | 2.92 | % | | | 1,621,793 | | | 9,079 | | 2.24 | % |
Other Consumer Time Deposits | | | 16,656,731 | | | 190,489 | | 4.57 | % | | | 14,325,784 | | | 153,881 | | 4.30 | % | | | 12,973,630 | | | 135,914 | | 4.19 | % |
Public Fund CD’s of $100,000 or more | | | 1,281,768 | | | 16,636 | | 5.19 | % | | | 1,022,465 | | | 13,046 | | 5.10 | % | | | 494,702 | | | 4,823 | | 3.90 | % |
CD’s of $100,000 or more | | | 8,682,658 | | | 101,535 | | 4.68 | % | | | 8,302,487 | | | 95,229 | | 4.59 | % | | | 9,595,516 | | | 106,145 | | 4.42 | % |
Foreign time deposits | | | 3,831,401 | | | 47,962 | | 5.01 | % | | | 3,564,708 | | | 43,922 | | 4.93 | % | | | 2,926,965 | | | 35,772 | | 4.89 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Interest-bearing deposits | | $ | 53,735,226 | | $ | 552,385 | | 4.11 | % | | $ | 42,983,875 | | $ | 442,571 | | 4.12 | % | | $ | 34,737,934 | | $ | 344,063 | | 3.96 | % |
Senior and subordinated notes | | | 9,034,696 | | | 136,282 | | 6.03 | % | | | 6,544,768 | | | 96,300 | | 5.89 | % | | | 6,707,285 | | | 103,836 | | 6.19 | % |
Other borrowings | | | 20,555,748 | | | 263,596 | | 5.13 | % | | | 18,010,737 | | | 231,685 | | 5.15 | % | | | 13,703,303 | | | 149,200 | | 4.36 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total interest-bearing liabilities | | $ | 83,325,670 | | $ | 952,263 | | 4.57 | % | | $ | 67,539,380 | | $ | 770,556 | | 4.56 | % | | $ | 55,148,522 | | $ | 597,099 | | 4.33 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net interest spread | | | | | | | | 4.90 | % | | | | | | | | 5.64 | % | | | | | | | | 5.46 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest income to average earning assets | | | | | | | | 9.47 | % | | | | | | | | 10.16 | % | | | | | | | | 9.79 | % |
Interest expense to average earning assets | | | | | | | | 3.83 | % | | | | | | | | 3.79 | % | | | | | | | | 3.58 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net interest margin | | | | | | | | 5.64 | % | | | | | | | | 6.37 | % | | | | | | | | 6.21 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (1) | Prior quarter data has been updated to reclass for Mortgage Loans Held for Sale. |
CAPITAL ONE FINANCIAL CORPORATION
Statements of Average Balances, Income and Expense, Yields and Rates
(dollars in thousands)(unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Quarter Ended 12/31/06 | | | Quarter Ended 9/30/06(2) | | | Quarter Ended 12/31/05(2) | |
Managed (1) | | Average
Balance | | Income/
Expense | | Yield/
Rate | | | Average
Balance | | Income/
Expense | | Yield/
Rate | | | Average
Balance | | Income/
Expense | | Yield/
Rate | |
Earning assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mortgage loans held for sale | | $ | 3,480,664 | | $ | 55,896 | | 6.42 | % | | $ | 294,574 | | $ | 6,354 | | 8.63 | % | | $ | 156,376 | | $ | 8,799 | | 22.51 | % |
Loans held for investment | | | 123,901,960 | | | 3,640,588 | | 11.75 | % | | | 110,512,266 | | | 3,401,130 | | 12.31 | % | | | 94,241,240 | | | 3,001,361 | | 12.74 | % |
Securities available for sale | | | 15,248,950 | | | 186,480 | | 4.89 | % | | | 14,587,307 | | | 160,198 | | 4.39 | % | | | 11,683,013 | | | 119,189 | | 4.08 | % |
Other | | | 4,048,779 | | | 48,089 | | 4.75 | % | | | 2,221,427 | | | 28,192 | | 5.08 | % | | | 4,171,939 | | | 46,611 | | 4.47 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total earning assets | | $ | 146,680,353 | | $ | 3,931,053 | | 10.72 | % | | $ | 127,615,574 | | $ | 3,595,874 | | 11.27 | % | | $ | 110,252,568 | | $ | 3,175,960 | | 11.52 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest-bearing liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest-bearing deposits | | | | | | | | | | | | | | | | | | | | | | | | | | | |
NOW accounts | | $ | 2,094,623 | | $ | 14,546 | | 2.78 | % | | $ | 619,460 | | $ | 4,816 | | 3.11 | % | | $ | 253,473 | | $ | 1,293 | | 2.04 | % |
Money market deposit accounts | | | 15,762,255 | | | 149,831 | | 3.80 | % | | | 11,237,206 | | | 103,073 | | 3.67 | % | | | 6,871,855 | | | 51,037 | | 2.97 | % |
Savings accounts | | | 5,425,790 | | | 31,386 | | 2.31 | % | | | 3,911,765 | | | 28,604 | | 2.92 | % | | | 1,621,793 | | | 9,079 | | 2.24 | % |
Other Consumer Time Deposits | | | 16,656,731 | | | 190,489 | | 4.57 | % | | | 14,325,784 | | | 153,881 | | 4.30 | % | | | 12,973,630 | | | 135,914 | | 4.19 | % |
Public Fund CD’s of $100,000 or more | | | 1,281,768 | | | 16,636 | | 5.19 | % | | | 1,022,465 | | | 13,046 | | 5.10 | % | | | 494,702 | | | 4,823 | | 3.90 | % |
CD’s of $100,000 or more | | | 8,682,658 | | | 101,535 | | 4.68 | % | | | 8,302,487 | | | 95,229 | | 4.59 | % | | | 9,595,516 | | | 106,145 | | 4.42 | % |
Foreign time deposits | | | 3,831,401 | | | 47,962 | | 5.01 | % | | | 3,564,708 | | | 43,922 | | 4.93 | % | | | 2,926,965 | | | 35,772 | | 4.89 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Interest-bearing deposits | | $ | 53,735,226 | | $ | 552,385 | | 4.11 | % | | $ | 42,983,875 | | $ | 442,571 | | 4.12 | % | | $ | 34,737,934 | | $ | 344,063 | | 3.96 | % |
Senior and subordinated notes | | | 9,034,696 | | | 136,282 | | 6.03 | % | | | 6,544,768 | | | 96,300 | | 5.89 | % | | | 6,707,285 | | | 103,836 | | 6.19 | % |
Other borrowings | | | 20,555,748 | | | 263,609 | | 5.13 | % | | | 18,010,737 | | | 231,672 | | 5.15 | % | | | 13,703,303 | | | 149,200 | | 4.36 | % |
Securitization liability | | | 48,603,831 | | | 631,521 | | 5.20 | % | | | 47,648,021 | | | 607,510 | | 5.10 | % | | | 45,085,090 | | | 503,665 | | 4.47 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total interest-bearing liabilities | | $ | 131,929,501 | | $ | 1,583,797 | | 4.80 | % | | $ | 115,187,401 | | $ | 1,378,053 | | 4.79 | % | | $ | 100,233,612 | | $ | 1,100,764 | | 4.39 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net interest spread | | | | | | | | 5.92 | % | | | | | | | | 6.49 | % | | | | | | | | 7.13 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest income to average earning assets | | | | | | | | 10.72 | % | | | | | | | | 11.27 | % | | | | | | | | 11.52 | % |
Interest expense to average earning assets | | | | | | | | 4.32 | % | | | | | | | | 4.32 | % | | | | | | | | 3.99 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net interest margin | | | | | | | | 6.40 | % | | | | | | | | 6.95 | % | | | | | | | | 7.53 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (1) | The information in this table reflects the adjustment to add back the effect of securitized loans. |
| (2) | Prior quarter data has been updated to reclass for Mortgage Loans Held for Sale. |
1680 Capital One Drive, McLean, VA 22102-3491
NEWS RELEASE
FOR IMMEDIATE RELEASE: January 18, 2007
| | | | | | | | |
| Contacts: | | Investor Relations | | Media Relations |
| | Mike Rowen | | | | Tatiana Stead | | Julie Rakes |
| | 703-720-2455 | | | | 703-720-2352 | | 804-284-5800 |
Capital One Reports Earnings per Share Growth of 13 Percent for 2006
Company provides earnings guidance for 2007
McLean, Va. (January 18, 2007) -Capital One Financial Corporation (NYSE: COF) today announced earnings per share (diluted) for 2006 of $7.62. Additionally, the company provided earnings guidance for 2007 of between $7.40 and $7.80 per share (diluted).
Earnings for the fourth quarter of 2006 were $390.7 million, or $1.14 per share (diluted), compared with $280.3 million, or $.97 per share (diluted), for the fourth quarter of 2005, and $587.8 million, or $1.89 per share (diluted), for the third quarter of 2006.
Full year results include a $0.32 per share (diluted) negative impact from the acquisition of North Fork Bancorporation, which was completed on December 1, 2006. Full year results also include a $.07 per share (diluted) negative impact from losses on the sale of securities in the fourth quarter of 2006 as part of the rebalancing of a portion of the company’s investment portfolio.
The company’s 2007 earnings estimates include expectations for a continued challenging interest rate environment and cyclical pressures in the mortgage industry, a return to more normal charge-off levels in its US unsecured national lending businesses, and the repurchase of $2.25 billion of the company’s shares beginning in the second quarter of 2007. Additionally, the 2007 earnings estimates include $430.0 million (after-tax) of financing costs, restructuring charges, and purchase accounting impacts resulting from the acquisition of North Fork. While the company still expects to achieve the target level of $275.0 million (pre-tax) of synergies in connection with the North Fork integration, it expects these synergies will be realized partially in 2007 and more significantly late in 2008 as a result of the challenging interest rate environment and the timeline for conversion to a single deposit platform and brand.
“Despite cyclical pressures in banking and the mortgage industry, the acquisitions of North Fork and Hibernia position us to drive growth, generate capital, and deliver sustainable and attractive shareholder returns well into the future,” said Richard D. Fairbank, Capital One’s Chairman and
-more-
Capital One Reports Fourth Quarter Earnings
Page 2
Chief Executive Officer. “Our focus now is on sure-footed execution as we integrate these proven banking franchises and build the infrastructure to win long-term.”
Managed loans held for investment at December 31, 2006 were $146.2 billion, up $40.6 billion, or 38 percent, from December 31, 2005. Excluding the impact of $31.7 billion of loans acquired through North Fork, managed loans grew 8.4 percent in 2006, in line with expectations. Growth in the fourth quarter of 2006, excluding the impact of North Fork, was $2.2 billion, spread broadly across all of its North American businesses.
The managed charge-off rate for the company decreased to 2.99 percent in the fourth quarter of 2006 from 4.53 percent in the fourth quarter of 2005, but rose from 2.92 percent in the previous quarter. The company increased its allowance for loan losses by $114.1 million in the fourth quarter of 2006, excluding the addition of allowance from the acquisition of North Fork. This increase was driven primarily by the expectation of continued normalization of charge-offs in the company’s US unsecured national lending businesses. The managed delinquency rate (30+ days) decreased to 3.02 percent as of December 31, 2006 driven largely by the addition of North Fork loans to the portfolio. The delinquency rate decreased from 3.24 percent as of the end of December 31, 2005 and decreased from 3.29 percent as of September 30, 2006. Without the addition of the North Fork loans, the charge-off and delinquency rates would have increased in the fourth quarter of 2006 to 3.25 percent and 3.68 percent, respectively.
Fourth quarter marketing expenses decreased $51.7 million to $395.7 million from $447.4 million in the fourth quarter of 2005, but increased $27.2 million from the third quarter of 2006 expense of $368.5 million. Marketing expenses for 2006 were $1.4 billion, up $64.7 million, or five percent, over 2005.
Annualized operating expenses as a percentage of average managed loans decreased to 5.13 percent in the fourth quarter of 2006 from 5.27 percent in the fourth quarter of 2005, but increased from 4.92 percent in the previous quarter driven by the inclusion of North Fork, infrastructure investments, and branch expansion. This quarter’s results also include resolution of certain federal and state tax issues resulting in a $28.8 million reduction of tax expense.
Capital One’s managed revenue margin decreased to 9.69 percent in the fourth quarter of 2006 from 12.04 percent in the fourth quarter of 2005 and decreased from 10.95 percent in the previous quarter driven largely by in the inclusion of North Fork, seasonality, and one time impacts due to the company’s system conversion in the fourth quarter of 2006. Return on
Capital One Reports Fourth Quarter Earnings
Page 3
managed assets for 2006 was 1.69 percent. Excluding the impact of the North Fork acquisition, return on managed assets was 1.77 percent for 2006 as compared to 1.72 percent in 2005.
“Strong underlying business performance enabled Capital One to deliver 13 percent earnings per share growth in 2006 while achieving a number of significant milestones including the successful integration of Hibernia, the acquisition of North Fork, and a significant upgrade of our systems infrastructure,” said Gary L. Perlin, Capital One’s Chief Financial Officer. “We enter 2007 with a more diversified and resilient balance sheet.”
Segment results
The US Card segment’s net income for 2006 was $1.8 billion, up $214.0 million, or 13.3 percent, from $1.6 billion in 2005. US Card reported net income for the fourth quarter of 2006 of $337.2 million, compared with $237.0 million in the fourth quarter of 2005, and $461.6 million in the third quarter of 2006. The business continues to deliver strong profits driven by solid credit and growth in managed loans. Managed loans at December 31, 2006 were $53.6 billion, up $4.2 billion or 8.4 percent, from December 31, 2005, and up $2.5 billion, or 4.9 percent from the prior quarter. The managed charge-off rate decreased to 3.82 percent in the fourth quarter of 2006 from 5.70 percent in the fourth quarter of 2005 but increased from 3.39 percent in the previous quarter due to expected seasonality and normalization of credit.
Results in the Global Financial Services segment continue to reflect strong performance in its North American businesses offset by ongoing challenges in the UK. The segment’s net income for 2006 was $274.0 million, up $88.0 million, or 47.3 percent, from $186.0 million in 2005. Net income in the fourth quarter of 2006 was $2.1 million, compared with $7.1 million in the fourth quarter of 2005, and $107.2 million in the third quarter of 2006. Managed loans at December 31, 2006 were $27.0 billion, up $3.6 billion, or 15.4 percent, from the prior year’s fourth quarter, and up $.4 billion, or 1.4 percent, from the third quarter of 2006. The managed charge-off rate decreased to 3.89 percent in the fourth quarter of 2006 from 4.33 percent in the fourth quarter of 2005 driven largely by strong credit in its North American businesses. The managed charge-off rate increased in the fourth quarter from 3.70 percent in the previous quarter reflecting seasonality.
The Auto Finance segment reported a solid quarter as it continues to gain scale and grow originations by taking advantage of its multi-channel, full credit spectrum strategy. The Auto Finance segment’s net income for 2006 was $233.5 million, up $101.4 million, or 76.8 percent, from $132.1 million in 2005. Net
Capital One Reports Fourth Quarter Earnings
Page 4
income in the fourth quarter of 2006 was $33.7 million, compared with $8.1 million in the fourth quarter of 2005, and $35.3 million in the third quarter of 2006. Managed loans at December 31, 2006 were $21.8 billion, up $5.4 billion, or 32.9 percent, from December 31, 2005, and up $.6 billion, or 2.8 percent from the prior quarter. The managed charge-off rate decreased to 2.85 percent in the fourth quarter of 2006 from 3.32 percent in the fourth quarter of 2005 because of a mix shift towards lower risk borrowers from the acquisition of Hibernia in 2005. The managed charge-off rate increased from 2.34 percent in the previous quarter primarily driven by seasonality.
The Banking segment delivered $45.7 million of net income in the fourth quarter of 2006, down $0.5 million, or 1.1 percent, from the third quarter of 2006. Decreases in revenue and increases in operating expenses where largely off-set by a $26.0 million reduction in provision expense due to favorable credit performance in loans impacted by 2005 Gulf Coast hurricanes. Total deposits at the end of the quarter were $35.3 billion, relatively flat as compared to $35.7 billion at the end of the third quarter of 2006. The company has opened a total of 39 de novo branches since the beginning of 2006. The integration of Hibernia is largely complete, and the company is on track to achieve the expected run-rate synergies of $135.0 million in 2007.
The company generates earnings from its managed loan portfolio, which includes both on-balance sheet loans and securitized (off-balance sheet) loans. For this reason, the company believes managed financial measures to be useful to stakeholders. In compliance with Regulation G of the Securities and Exchange Commission, the company is providing a numerical reconciliation of managed financial measures to comparable measures calculated on a reported basis using generally accepted accounting principles (GAAP). Please see the schedule titled “Reconciliation to GAAP Financial Measures” attached to this release for more information.
Forward looking statements
The company cautions that its current expectations in this release, in the presentation slides available on the company’s website and in its Form 8-K dated January 18, 2007 for 2007 earnings, the interest rate environment, charge-off rates, mortgage market trends, branch growth, integration costs and synergies, and the benefits of the business combination transaction involving Capital One and North Fork, including future financial and operating results, and the company’s plans, objectives, expectations and intentions are forward-looking statements and actual results could differ materially from current expectations due to a number of factors, including: the risk that the company’s acquired businesses will not be integrated successfully and that the cost savings and other synergies from such acquisitions may
Capital One Reports Fourth Quarter Earnings
Page 5
not be fully realized; continued intense competition from numerous providers of products and services which compete with Capital One’s businesses; changes in our aggregate accounts and balances, and the growth rate and composition thereof; the success of the company’s marketing efforts; general economic conditions affecting interest rates and consumer income, spending, and savings which may affect consumer bankruptcies, defaults, charge-offs and deposit activity; and the company’s ability to execute on its strategic and operational plans. A discussion of these and other factors can be found in Capital One’s annual report and other reports filed with the Securities and Exchange Commission, including, but not limited to, Capital One’s report on Form 10-K for the fiscal year ended December 31, 2005.
About Capital One
Headquartered in McLean, Virginia, Capital One Financial Corporation (www.capitalone.com) is a financial holding company, with more than 700 locations in New York, New Jersey, Connecticut, Texas and Louisiana that offer a broad spectrum of financial products and services to consumers, small businesses and commercial clients. Its principal subsidiaries, Capital One Bank, Capital One, F.S.B., Capital One Auto Finance, Inc., Capital One, N.A., and North Fork Bank offer a broad spectrum of financial products and services to consumers, small businesses and commercial clients. Capital One’s subsidiaries collectively had $85.8 billion in deposits and $146.2 billion in managed loans outstanding as of December 31, 2006. Capital One, a Fortune 500 company, trades on the New York Stock Exchange under the symbol “COF” and is included in the S&P 100 index.
###
NOTE: Fourth quarter 2006 financial results, SEC Filings, and fourth quarter earnings conference call slides are accessible on Capital One’s home page (www.capitalone.com). Choose “Investors” on the bottom of the home page to view and download the earnings press release, slides, and other financial information. Additionally, a webcast of today’s 5:00 pm (ET) earnings conference call is accessible through the same link.
