Capital One Reports Second Quarter 2014 Net Income of $1.2 billion, or $2.04 per share - WTRF 7 News Sports Weather - Wheeling Steubenville

Capital One Reports Second Quarter 2014 Net Income of $1.2 billion, or $2.04 per share

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SOURCE Capital One Financial Corporation

MCLEAN, Va., July 17, 2014 /PRNewswire/ -- Capital One Financial Corporation (NYSE: COF) today announced net income for the second quarter of 2014 of $1.2 billion, or $2.04 per diluted common share, compared to the first quarter of 2014 with net income of $1.2 billion, or $1.96 per diluted common share, and the second quarter of 2013 with net income of $1.1 billion, or $1.85 per diluted common share. 

"Capital One posted another quarter of solid growth and profitability, including the return of year-over-year growth in our Domestic Card business, and we continued to return capital to our shareholders as we began to execute our announced $2.5 billion share repurchase program," said Richard D. Fairbank, Chairman and Chief Executive Officer.  "We remain focused on sustaining high returns as we invest to drive future growth and be a leader in digital banking."

All comparisons below are for the second quarter of 2014 compared with the first quarter of 2014 unless otherwise noted.  

Second Quarter 2014 Income Highlights:

  • Total net revenue increased 2 percent to $5.5 billion.
  • Total non-interest expense increased 2 percent to $3.0 billion.
  • Pre-provision earnings increased 2 percent to $2.5 billion.
  • Provision for credit losses decreased 4 percent to $704 million.

Second Quarter 2014 Balance Sheet Highlights:

  • Common equity Tier 1 capital ratio under Basel III Standardized Approach of 12.7 percent at June 30, 2014.
  • Net interest margin of 6.55 percent, down 7 basis points.
  • Period-end loans held for investment in the quarter increased $5.6 billion, or 3 percent, to $198.5 billion.
    • Domestic Card period-end loans increased $2.9 billion, or 4 percent, to $71.2 billion.
    • Commercial Banking period-end loans increased $2.1 billion, or 5 percent, to $48.3 billion.
    • Consumer Banking:
      • Auto period-end loans increased $1.7 billion, or 5 percent, to $34.8 billion.
      • Home loans period-end loans decreased $1.4 billion, or 4 percent, to $32.6 billion, driven by run-off of acquired portfolios.

 

  • Average loans held for investment in the quarter increased $1.3 billion, or less than 1 percent, to $195.0 billion.
    • Domestic Card average loans decreased $434 million, or 1 percent, to $69.4 billion.
    • Commercial Banking average loans increased $1.6 billion, or 3 percent, to $47.0 billion.
    • Consumer Banking:
      • Auto average loans increased $1.6 billion, or 5 percent, to $34.0 billion.
      • Home loans average loans decreased by $1.3 billion, or 4 percent, to $33.3 billion, driven by run-off of acquired portfolios.

 

  • Period-end total deposits decreased $2.4 billion, or 1 percent, to $205.9 billion, while average deposits increased $473 million, or less than 1 percent, to $206.3 billion.
  • Interest-bearing deposit rate remained flat at 0.60 percent.

Earnings Conference Call Webcast Information 

The company will hold an earnings conference call on July 17, 2014, 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). Choose "About Us", then 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 July 31, 2014 at 5:00 PM.

Forward Looking Statements

Certain statements in this release are forward-looking statements, which involve a number of risks and uncertainties. Capital One cautions readers that any forward-looking information is not a guarantee of future performance and that actual results could differ materially from those contained in the forward-looking information due to a number of factors, including those listed from time to time in reports that Capital One files with the Securities and Exchange Commission, including, but not limited to, the Annual Report on Form 10-K for the year ended December 31, 2013.

About Capital One 

Capital One Financial Corporation (www.capitalone.com) is a financial holding company whose subsidiaries, which include Capital One, N.A., and Capital One Bank (USA), N. A., had $205.9 billion in deposits and $298.3 billion in total assets as of June 30, 2014. 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 approximately 900 branch locations primarily in New York, New Jersey, Texas, Louisiana, Maryland, Virginia 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.

 




Exhibit 99.2



Capital One Financial Corporation

Financial Supplement

Second Quarter 2014(1)(2)(3)

Table of Contents





















Page


Capital One Financial Corporation Consolidated Results








     Table 1:


Financial Summary-Consolidated



1





     Table 2:


Selected Metrics-Consolidated



2





     Table 3:


Consolidated Statements of Income



3





     Table 4:


Consolidated Balance Sheets



4





     Table 5:


Notes to Financial & Selected Metrics and Consolidated Financial Statements (Tables 1 - 4)



5





     Table 6:


Average Balances, Net Interest Income and Net Interest Margin



6





     Table 7:


Loan Information and Performance Statistics



7



Business Segments Detail





     Table 8:


Financial Summary-Business Segments



8





     Table 9:


Financial & Statistical Summary-Credit Card Business



9





     Table 10:


Financial & Statistical Summary-Consumer Banking Business



10





     Table 11:


Financial & Statistical Summary-Commercial Banking Business



11





     Table 12:


Financial & Statistical Summary-Other and Total



12





     Table 13:


Notes to Loan and Business Segments Disclosures (Tables 7 - 12)



13



Other





     Table 14:


Reconciliation of Non-GAAP Measures and Calculation of Regulatory Capital Measures



14













(1)

The information contained in this Financial Supplement is preliminary and based on data available at the time of the earnings presentation, and investors should refer to our Quarterly Report on Form 10-Q for the period ended June 30, 2014 once it is filed with the Securities and Exchange Commission.

(2)

References to ING Direct refers to business and assets acquired and liabilities assumed in the February 17, 2012 acquisition. References to the 2012 U.S. card acquisition refer to the May 1, 2012 transaction in which we acquired substantially all of HSBC's credit card and private-label credit card business in the United States.

(3)

We adopted ASU 2014-01 "Accounting for Investments in Qualified Affordable Housing Projects" as of January 1, 2014. Prior period results and related metrics have been recast to conform to this presentation.

 

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 1: Financial Summary-Consolidated(1)











































































2014 Q2 vs.




2014



2014



2013



2013



2013



2014



2013


(Dollars in millions, except per share data and as noted) (unaudited)


Q2



Q1



Q4



Q3



Q2



Q1



Q2


Earnings





























Net interest income


$

4,315



$

4,350



$

4,423



$

4,560



$

4,553




(1)%




(5)%


Non-interest income(2)



1,153




1,020




1,121




1,091




1,085




13




6































Total net revenue(3)



5,468




5,370




5,544




5,651




5,638




2




(3)































Provision for credit losses



704




735




957




849




762




(4)




(8)


Non-interest expense:





























     Marketing



335




325




427




299




330




3




2


     Amortization of intangibles



136




143




166




161




167




(5)




(19)


     Acquisition-related(4)



18




23




60




37




50




(22)




(64)


     Operating expenses



2,490




2,441




2,582




2,612




2,471




2




1































Total non-interest expense



2,979




2,932




3,235




3,109




3,018




2




(1)































Income from continuing operations before income taxes



1,785




1,703




1,352




1,693




1,858




5




(4)


Income tax provision



581




579




477




575




631




-




(8)































Income from continuing operations, net of tax



1,204




1,124




875




1,118




1,227




7




(2)


Income (loss) from discontinued operations, net of tax(2)



(10)




30




(23)




(13)




(119)




**




92































Net income



1,194




1,154




852




1,105




1,108




3




8


Dividends and undistributed earnings allocated to participating securities(5)



(4)




(5)




(4)




(5)




(4)




(20)




-


Preferred stock dividends(5)



(13)




(13)




(13)




(13)




(13)




-




-































Net income available to common stockholders


$

1,177



$

1,136



$

835



$

1,087



$

1,091




4




8































Common Share Statistics





























Basic earnings per common share:(5)





























     Net income from continuing operations


$

2.09



$

1.94



$

1.50



$

1.89



$

2.08




8




-


     Income (loss) from discontinued operations



(0.02)




0.05




(0.04)




(0.02)




(0.20)




**




(90)































     Net income per basic common share


$

2.07



$

1.99



$

1.46



$

1.87



$

1.88




4




10































Diluted earnings per common share:(5)





























     Net income from continuing operations


$

2.06



$

1.91



$

1.46



$

1.86



$

2.05




8




-


     Income (loss) from discontinued operations



(0.02)




0.05




(0.03)




(0.02)




(0.20)




**




(90)































     Net income per diluted common share


$

2.04



$

1.96



$

1.43



$

1.84



$

1.85




4




10































Weighted average common shares outstanding (in millions) for:





























     Basic common shares



567.5




571.0




573.4




582.3




581.5




(1)




(2)


     Diluted common shares



577.6




580.3




582.6




591.1




588.8




-




(2)


Common shares outstanding (period end, in millions)



561.8




572.9




572.7




582.0




584.9




(2)




(4)


Dividends per common share


$

0.30



$

0.30



$

0.30



$

0.30



$

0.30




-




-


Tangible book value per common share (period end)(6)



47.90




45.88




43.64




43.01




41.41




4




16


Balance Sheet (Period End)





























Loans held for investment(7)


$

198,528



$

192,941



$

197,199



$

191,814



$

191,512




3




4


Interest-earning assets



266,720




259,422




265,170




259,152




265,693




3




-


Total assets



298,317




290,500




296,933




289,866




296,524




3




1


Interest-bearing deposits



180,970




184,214




181,880




184,553




187,768




(2)




(4)


Total deposits



205,890




208,324




204,523




206,834




209,865




(1)




(2)


Borrowings



39,114




30,118




40,654




31,845




36,231




30




8


Common equity



42,477




41,948




40,779




40,792




40,094




1




6


Total stockholders' equity



43,815




42,801




41,632




41,645




40,947




2




7


Balance Sheet (Quarterly Average Balances)





























Loans held for investment(7)


$

194,996



$

193,722



$

192,813



$

191,135



$

190,562




1




2


Interest-earning assets



263,570




262,659




262,957




264,796




266,544




-




(1)


Total assets



294,744




294,275




294,040




294,919




297,748




-




(1)


Interest-bearing deposits



182,053




184,183




184,206




186,752




189,311




(1)




(4)


Total deposits



206,315




205,842




205,706




208,340




210,650




-




(2)


Borrowings



35,658




35,978




36,463




36,355




36,915




(1)




(3)


Common equity



42,797




42,006




41,502




40,332




40,637




2




5


Total stockholders' equity



43,767




42,859




42,355




41,185




41,490




2




5


































1


























 

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 2: Selected Metrics-Consolidated(1)






































































2014 Q2 vs.




2014



2014



2013



2013



2013



2014



2013


(Dollars in millions) (unaudited)


Q2



Q1



Q4



Q3



Q2



Q1



Q2


Performance Metrics





























Net interest income growth (quarter over quarter)



(1)

%



(2)

%



(3)

%



0

%



0

%



**




**


Non-interest income growth (quarter over quarter)



13




(9)




3




1




11




**




**


Total net revenue growth (quarter over quarter)



2




(3)




(2)




0




2




**




**


Total net revenue margin(8)



8.30




8.18




8.43




8.54




8.46




12

 bps 



(16)

bps 

Net interest margin(9)



6.55




6.62




6.73




6.89




6.83




(7)




(28)


Return on average assets



1.63




1.53




1.19




1.52




1.65




10




(2)


Return on average tangible assets(10)



1.73




1.61




1.26




1.60




1.74




12




(1)


Return on average common equity(11)



11.09




10.53




8.27




10.91




11.91




56




(82)


Return on average tangible common equity(12)



17.47




16.83




13.38




17.96




19.62




64




(215)


Non-interest expense as a % of average loans held for investment



6.11




6.05




6.71




6.51




6.33




6




(22)


Efficiency ratio(13)



54.48




54.60




58.35




55.02




53.53




(12)




95


Effective income tax rate for continuing operations



32.5




34.0




35.3




34.0




34.0




(150)




(150)


Employees (in thousands), period end(14)



44.6




44.9




45.4




43.5




43.3




(1)

%



3

%

Credit Quality Metrics(7)





























Allowance for loan and lease losses


$

3,998



$

4,098



$

4,315



$

4,333



$

4,407




(2)




(9)


Allowance as a % of loans held for investment



2.01

%



2.12

%



2.19

%



2.26

%



2.30

%



(11)

bps 



(29)

bps 

Allowance as a % of loans held for investment (excluding acquired loans)



2.30




2.45




2.54




2.66




2.74




(15)




(44)


Net charge-offs


$

812



$

931



$

969



$

917



$

969




(13)

%



(16)

%

Net charge-off rate(15)



1.67

%



1.92

%



2.01

%



1.92

%



2.03

%



(25)

bps 



(36)

bps 

Net charge-off rate (excluding acquired loans)(15)



1.93




2.24




2.37




2.29




2.46




(31)




(53)


30+ day performing delinquency rate



2.24




2.22




2.63




2.54




2.35




2




(11)


30+ day performing delinquency rate (excluding acquired loans)



2.58




2.59




3.08




3.01




2.83




(1)




(25)


30+ day delinquency rate



2.53




2.51




2.96




2.88




2.71




2




(18)


30+ day delinquency rate (excluding acquired loans)



2.91




2.93




3.46




3.41




3.26




(2)




(35)


Capital Ratios(16)





























Common equity Tier 1 capital ratio



12.7

%



13.0

%



n/a   




n/a   




n/a   




(30)

bps 



n/a   


Tier 1 common ratio



n/a   




n/a   




12.2

%



12.7

%



12.0

%



n/a   




n/a   


Tier 1 risk-based capital ratio



13.3

%



13.4

%



12.6




13.1




12.4




(10)

bps 



90

bps 

Total risk-based capital ratio



15.4




15.4




14.7




15.2




14.6




-




80


Tier 1 leverage ratio



10.7




10.4




10.1




10.0




9.7




30




100


Tangible common equity ("TCE") ratio(17)



9.5




9.6




8.9




9.1




8.6




(10)




90


































2


























 

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 3: Consolidated Statements of Income(1)




































































Three Months Ended



Q2 2014 vs.



Six Months
Ended



2014


(Dollars in millions, except per share data and as noted)
(unaudited)


2014



2014



2013



2014



2013



2014



2013



vs.




Q2



Q1



Q2



Q1



Q2



Q2



Q2



2013


Interest income:

































     Loans, including loans held for sale


$

4,279



$

4,307



$

4,596




(1)

%



(7)

%


$

8,586



$

9,245




(7)

%

     Investment securities



409




416




391




(2)




5




825




765




8


     Other



24




30




23




(20)




4




54




51




6



































Total interest income



4,712




4,753




5,010




(1)




(6)




9,465




10,061




(6)



































Interest expense:

































     Deposits



272




276




318




(1)




(14)




548




644




(15)


     Securitized debt obligations



39




38




45




3




(13)




77




101




(24)


     Senior and subordinated notes



78




77




82




1




(5)




155




164




(5)


     Other borrowings



8




12




12




(33)




(33)




20




29




(31)



































Total interest expense



397




403




457




(1)




(13)




800




938




(15)



































Net interest income



4,315




4,350




4,553




(1)




(5)




8,665




9,123




(5)


     Provision for credit losses



704




735




762




(4)




(8)




1,439




1,647




(13)



































Net interest income after provision for credit losses



3,611




3,615




3,791




-




(5)




7,226




7,476




(3)



































Non-interest income:(2)

































     Service charges and other customer-related fees



460




474




534




(3)




(14)




934




1,084




(14)


     Interchange fees, net



535




440




486




22




10




975




931




5


     Net other-than-temporary impairment recognized in earnings



(1)




(5)




(4)




(80)




(75)




(6)




(29)




(79)


     Other



159




111




69




43




130




270




80




238



































Total non-interest income



1,153




1,020




1,085




13




6




2,173




2,066




5



































Non-interest expense:

































     Salaries and associate benefits



1,125




1,161




1,118




(3)




1




2,286




2,213




3


     Occupancy and equipment



447




405




371




10




20




852




728




17


     Marketing



335




325




330




3




2




660




647




2


     Professional services



296




287




340




3




(13)




583




662




(12)


     Communications and data processing



203




196




236




4




(14)




399




452




(12)


     Amortization of intangibles



136




143




167




(5)




(19)




279




344




(19)


     Other



437




415




456




5




(4)




852




963




(12)



































Total non-interest expense



2,979




2,932




3,018




2




(1)




5,911




6,009




(2)



































Income from continuing operations before income taxes



1,785




1,703




1,858




5




(4)




3,488




3,533




(1)


Income tax provision



581




579




631




-




(8)




1,160




1,172




(1)



































Income from continuing operations, net of tax



1,204




1,124




1,227




7




(2)




2,328




2,361




(1)


Income (loss) from discontinued operations, net of tax(2)



(10)




30




(119)




**




(92)




20




(197)




**



































Net income



1,194




1,154




1,108




3




8




2,348




2,164




9


Dividends and undistributed earnings allocated to participating securities(5)



(4)




(5)




(4)




(20)




-




(9)




(9)




-


Preferred stock dividends(5)



(13)




(13)




(13)




-




-




(26)




(26)




-



































Net income available to common stockholders


$

1,177



$

1,136



$

1,091




4




8



$

2,313



$

2,129




9












































Basic earnings per common share:(5)

































Net income from continuing operations


$

2.09



$

1.94



$

2.08




8




-



$

4.03



$

4.00




1


Income (loss) from discontinued operations



(0.02)




0.05




(0.20)




**




(90)




0.03




(0.34)




**



































Net income per basic common share


$

2.07



$

1.99



$

1.88




4




10



$

4.06



$

3.66




11












































Diluted earnings per common share:(5)

































Net income from continuing operations


$

2.06



$

1.91



$

2.05




8




-



$

3.97



$

3.96




-


Income (loss) from discontinued operations



(0.02)




0.05




(0.20)




**




(90)




0.03




(0.34)




**



































Net income per diluted common share


$

2.04



$

1.96



$

1.85




4




10



$

4.00



$

3.62




10



































Weighted average common shares outstanding (in millions):

































Basic common shares



567.5




571.0




581.5




(1)




(2)




569.2




581.0




(2)


Diluted common shares



577.6




580.3




588.8




-




(2)




578.9




587.9




(2)


Dividends paid per common share


$

0.30



$

0.30



$

0.30




-




-



$

0.60



$

0.35




71






































3






























 

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 4: Consolidated Balance Sheets(1)

















































June 30, 2014 vs.


(Dollars in millions) (unaudited)


June 30,
2014



December 31,
2013



June 30,
2013



December 31,
2013



June 30,
2013


Assets:





















Cash and cash equivalents:





















     Cash and due from banks


$

3,598



$

2,821



$

2,176




28

%



65

%

     Interest-bearing deposits with banks



2,954




3,131




2,279




(6)




30


     Federal funds sold and securities
          purchased under agreements to resell



180




339




198




(47)




(9)























Total cash and cash equivalents



6,732




6,291




4,653




7




45


Restricted cash for securitization investors



361




874




377




(59)




(4)


Securities available for sale, at fair value



41,113




41,800




62,602




(2)




(34)


Securities held to maturity, at carrying value



20,688




19,132




-




8




**


Loans held for investment:





















     Unsecuritized loans held for investment



161,224




157,651




151,231




2




7


     Restricted loans for securitization investors



37,304




39,548




40,281




(6)




(7)























Total loans held for investment



198,528




197,199




191,512




1




4


     Allowance for loan and lease losses



(3,998)




(4,315)




(4,407)




(7)




(9)























Net loans held for investment



194,530




192,884




187,105




1




4


Loans held for sale, at lower of cost or fair value



709




218




6,248




225




(89)


Premises and equipment, net



3,764




3,839




3,766




(2)




-


Interest receivable



1,473




1,418




1,454




4




1


Goodwill



13,977




13,978




13,900




-




1


Other assets



14,970




16,499




16,419




(9)




(9)























Total assets


$

298,317



$

296,933



$

296,524




-




1























Liabilities:





















Interest payable


$

309



$

307



$

324




1




(5)


Customer deposits:





















     Non-interest bearing deposits



24,920




22,643




22,097




10




13


     Interest-bearing deposits



180,970




181,880




187,768




(1)




(4)























Total customer deposits



205,890




204,523




209,865




1




(2)


Securitized debt obligations



10,010




10,289




10,831




(3)




(8)


Other debt:





















     Federal funds purchased and securities loaned or sold under 
          agreements to repurchase



2,030




915




1,766




122




15


     Senior and subordinated notes



16,628




13,134




12,406




27




34


     Other borrowings



10,446




16,316




11,228




(36)




(7)























Total other debt



29,104




30,365




25,400




(4)




15


Other liabilities



9,189




9,817




9,157




(6)




-























Total liabilities



254,502




255,301




255,577




-




-























Stockholders' equity:





















Preferred stock



0




0




0




-




-


Common stock



6




6




6




-




-


Additional paid-in capital, net



27,210




26,526




26,339




3




3


Retained earnings



22,270




20,292




18,710




10




19


Accumulated other comprehensive income ("AOCI")



(371)




(872)




(792)




(57)




(53)


Treasury stock, at cost



(5,300)




(4,320)




(3,316)




23




60























Total stockholders' equity



43,815




41,632




40,947




5




7























Total liabilities and stockholders' equity


$

298,317



$

296,933



$

296,524




-




1


























4


















 

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 5: Notes to Financial & Selected Metrics and Consolidated Financial Statements (Tables 1 - 4)



**

Not meaningful.

(1)

Certain prior period amounts have been recast to conform to the current period presentation.

(2)

We recorded the following related to the mortgage representation and warranty reserve: a benefit of $18 million in Q2 2014 (which includes a provision of $11 million before taxes in discontinued operations and a benefit of $29 million before taxes in continuing operations), a benefit of $33 million in Q1 2014 (which includes a benefit of $47 million before taxes in discontinued operations and a provision of $14 million before taxes in continuing operations), a provision of $33 million in Q4 2013, a benefit of $4 million in Q3 2013, and a provision of $183 million in Q2 2013. Historically, the majority of the provision for representation and warranty losses is generally included net of tax in discontinued operations, with the remaining amount included pre-tax in non-interest income. The mortgage representation and warranty reserve was $1.0 billion as of June 30 2014, and $1.2 billion as of both December 31, 2013 and June 30, 2013.

(3)

Total net revenue was reduced by $153 million in Q2 2014, $163 million in Q1 2014, $185 million in Q4 2013, $154 million in Q3 2013 and $192 million in Q2 2013 for the estimated uncollectible amount of billed finance charges and fees.

(4)

Acquisition-related costs include transaction costs, legal and other professional or consulting fees, restructuring costs, and integration expense.

(5)

Dividends and undistributed earnings allocated to participating securities, earnings per share, and preferred stock dividends are computed independently for each period. Accordingly, the sum of each quarter may not agree to the year-to-date total.

(6)

Tangible book value per common share is a non-GAAP measure calculated based on tangible common equity divided by common shares outstanding. See "Table 14: Reconciliation of Non-GAAP Measures and Calculation of Regulatory Capital Measures" for additional information.

(7)

Loans held for investment includes acquired loans accounted for based on cash flows expected to be collected. We use the term "acquired loans" to refer to a limited portion of the credit card loans acquired in the 2012 U.S. card acquisition and the substantial majority of loans acquired in the ING Direct and Chevy Chase Bank acquisitions, which were recorded at fair value at acquisition and subsequently accounted for based on estimated cash flows expected to be collected over the life of the loans (under the accounting standard formerly known as "SOP 03-3"). The table below presents amounts related to acquired loans accounted for under SOP 03-3:

 

(Dollars in millions) (unaudited)


2014
Q2



2014
Q1



2013
Q4



2013
Q3



2013
Q2

Acquired loans accounted for under SOP 03-3:




















Period-end unpaid principal balance


$

27,117



$

28,549



$

29,761



$

31,377



$

33,620

Period-end loans held for investment



26,019




27,390




28,550




30,080




32,275

Average loans held for investment



26,491




27,760




29,055




30,713




33,144

 

(8)

Calculated based on annualized total net revenue for the period divided by average interest-earning assets for the period.

(9)

Calculated based on annualized net interest income for the period divided by average interest-earning assets for the period.

(10)

Calculated based on annualized income from continuing operations, net of tax, for the period divided by average tangible assets for the period. See "Table 14: Reconciliation of Non-GAAP Measures and Calculation of Regulatory Capital Measures" for additional information.

(11)

Calculated based on the annualized sum of (i) income from continuing operations, net of tax; (ii) less dividends and undistributed earnings allocated to participating securities; (iii) less preferred stock dividends, for the period, divided by average common equity for the period. Our calculation of return on average common equity may not be comparable to similarly titled measures reported by other companies.

(12)

Calculated based on the annualized sum of (i) income from continuing operations, net of tax; (ii) less dividends and undistributed earnings allocated to participating securities; (iii) less preferred stock dividends, for the period, divided by average tangible common equity for the period. Our calculation of return on average tangible common equity may not be comparable to similarly titled measures reported by other companies. See "Table 14: Reconciliation of Non-GAAP Measures and Calculation of Regulatory Capital Measures" for additional information.

(13)

Calculated based on non-interest expense for the period divided by total net revenue for the period.

(14)

Effective Q2 2014, we changed our presentation from total full-time equivalent employees to total employees. All prior periods have been recast to conform to the current presentation. During this change, we determined that we had previously understated the total number of full-time equivalent employees by approximately 7%.

(15)

Calculated based on annualized net charge-offs for the period divided by average loans held for investment for the period.

(16)

Beginning on January 1, 2014, we calculate our regulatory capital under Basel III Standardized Approach subject to transition provisions. We calculated regulatory capital measures for periods prior to the first quarter of 2014 under Basel I. Ratios as of the end of Q2 2014 are preliminary and therefore subject to change. See "Table 14: Reconciliation of Non-GAAP Measures and Calculation of Regulatory Capital Measures" for information on the calculation of each of these ratios.

(17)

TCE ratio is a non-GAAP measure calculated based on TCE divided by tangible assets. See "Table 14: Reconciliation of Non-GAAP Measures and Calculation of Regulatory Capital Measures" for additional information.


5

 

CAPITAL ONE FINANCIAL CORPORATION (COF)

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





































































2014 Q2



2014 Q1



2013 Q2


(Dollars in millions) (unaudited)


Average
Balance



Interest
Income/
Expense
(1)



Yield/
Rate
(1)



Average
Balance



Interest
Income/
Expense
(1)



Yield/
Rate
(1)



Average
Balance



Interest
Income/
Expense
(1)



Yield/
Rate
(1)


Interest-earning assets:





































Loans, including loans held for sale


$

195,322



$

4,279




8.76

%


$

194,020



$

4,307




8.88

%


$

196,874



$

4,596




9.34

%

Investment securities



62,518




409




2.62




62,124




416




2.68




63,907




391




2.45


Cash equivalents and other



5,730




24




1.68




6,515




30




1.84




5,763




23




1.60







































Total interest-earning assets


$

263,570



$

4,712




7.15



$

262,659



$

4,753




7.24



$

266,544



$

5,010




7.52







































Interest-bearing liabilities:





































Interest-bearing deposits


$

182,053



$

272




0.60



$

184,183



$

276




0.60



$

189,311



$

318




0.67


Securitized debt obligations



10,731




39




1.45




10,418




38




1.46




10,942




45




1.65


Senior and subordinated notes



16,004




78




1.95




14,162




77




2.17




12,692




82




2.58


Other borrowings



8,923




8




0.36




11,398




12




0.42




13,281




12




0.36







































Total interest-bearing liabilities


$

217,711



$

397




0.73



$

220,161



$

403




0.73



$

226,226



$

457




0.81







































Net interest income/spread






$

4,315




6.42







$

4,350




6.51







$

4,553




6.71







































Impact of non-interest bearing funding











0.13












0.11












0.12







































Net interest margin











6.55

%











6.62

%











6.83

%






































 




























Six Months Ended June 30,




2014



2013


(Dollars in millions) (unaudited)


Average
Balance



Interest
Income/
Expense
(1)



Yield/
Rate
(1)



Average
Balance



Interest
Income/
Expense
(1)



Yield/
Rate
(1)


Interest-earning assets:

























Loans, including loans held for sale


$

194,674



$

8,586




8.82

%


$

198,648



$

9,245




9.31

%

Investment securities



62,322




825




2.65




63,930




765




2.39


Cash equivalents and other



6,123




54




1.76




6,430




51




1.59



























Total interest-earning assets


$

263,119



$

9,465




7.19



$

269,008



$

10,061




7.48



























Interest-bearing liabilities:

























Interest-bearing deposits


$

182,431



$

548




0.60



$

189,958



$

644




0.68


Securitized debt obligations



10,576




77




1.46




11,348




101




1.78


Senior and subordinated notes



15,088




155




2.05




12,340




164




2.66


Other borrowings



10,153




20




0.39




15,544




29




0.37



























Total interest-bearing liabilities


$

218,248



$

800




0.73



$

229,190



$

938




0.82



























Net interest income/spread






$

8,665




6.46







$

9,123




6.66



























Impact of non-interest bearing funding











0.13












0.12



























Net interest margin











6.59

%











6.78

%


























(1) Interest income and interest expense and the calculation of average yields on interest-earning assets and average rates on interest-bearing liabilities include the impact of hedge accounting.


6

 

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 7: Loan Information and Performance Statistics(1)







































































2014 Q2 vs.


(Dollars in millions) (unaudited)


2014
Q2



2014
Q1



2013
Q4



2013
Q3



2013
Q2



2014
Q1



2013
Q2


Period-end Loans Held For Investment





























Credit card:





























Domestic credit card


$

71,165



$

68,275



$

73,255



$

69,936



$

70,490




4

%



1

%

International credit card



7,853




7,575




8,050




8,031




7,820




4




-































Total credit card



79,018




75,850




81,305




77,967




78,310




4




1































Consumer banking:





























Auto



34,792




33,080




31,857




30,803




29,369




5




18


Home loan



32,644




34,035




35,282




36,817




39,163




(4)




(17)


Retail banking



3,626




3,612




3,623




3,665




3,686




-




(2)































Total consumer banking



71,062




70,727




70,762




71,285




72,218




-




(2)































Commercial banking:





























Commercial and multifamily real estate



22,040




21,256




20,750




19,523




18,570




4




19


Commercial and industrial



25,402




24,064




23,309




21,848




21,170




6




20































Total commercial lending



47,442




45,320




44,059




41,371




39,740




5




19


Small-ticket commercial real estate



879




910




952




1,028




1,065




(3)




(17)































Total commercial banking



48,321




46,230




45,011




42,399




40,805




5




18































Other loans



127




134




121




163




179




(5)




(29)































Total loans held for investment


$

198,528



$

192,941



$

197,199



$

191,814



$

191,512




3




4































Average Loans Held For Investment





























Credit card:





























Domestic credit card


$

69,376



$

69,810



$

70,368



$

69,947



$

69,966




(1)




(1)


International credit card



7,621




7,692




7,899




7,782




7,980




(1)




(4)































Total credit card



76,997




77,502




78,267




77,729




77,946




(1)




(1)































Consumer banking:





























Auto



33,972




32,387




31,424




30,157




28,677




5




18


Home loan



33,299




34,646




35,974




37,852




40,532




(4)




(18)


Retail banking



3,613




3,630




3,635




3,655




3,721




-




(3)































Total consumer banking



70,884




70,663




71,033




71,664




72,930




-




(3)































Commercial banking:





























Commercial and multifamily real estate



21,484




20,962




19,928




19,047




18,084




2




19


Commercial and industrial



24,611




23,541




22,445




21,491




20,332




5




21































Total commercial lending



46,095




44,503




42,373




40,538




38,416




4




20


Small-ticket commercial real estate



896




932




986




1,038




1,096




(4)




(18)































Total commercial banking



46,991




45,435




43,359




41,576




39,512




3




19































Other loans



124




122




154




166




174




2




(29)































Total average loans held for investment


$

194,996



$

193,722



$

192,813



$

191,135



$

190,562




1




2































Net Charge-off Rates





























Credit card:





























Domestic credit card



3.52

%



4.01

%



3.89

%



3.67

%



4.28

%



(49)

bps 



(76)

bps 

International credit card



3.93




4.17




4.74




4.71




5.08




(24)




(115)


Total credit card



3.56




4.02




3.98




3.78




4.36




(46)




(80)


Consumer banking:





























Auto



1.31




1.66




2.30




2.01




1.28




(35)




3


Home loan



0.05




0.06




0.03




0.06




0.03




(1)




2


Retail banking



0.70




0.95




1.09




1.38




1.50




(25)




(80)


Total consumer banking



0.69




0.84




1.09




0.95




0.60




(15)




9


Commercial banking:





























Commercial and multifamily real estate



0.00




0.01




(0.11)




(0.11)




0.04




(1)




(4)


Commercial and industrial



0.04




0.03




0.04




0.18




0.03




1




1


Total commercial lending



0.02




0.02




(0.03)




0.04




0.03




-




(1)


Small-ticket commercial real estate



0.61




0.67




(0.81)




1.26




0.45




(6)




16


Total commercial banking



0.03




0.04




(0.05)




0.07




0.04




(1)




(1)


Other loans



2.18




(0.68)




4.68




12.17




13.10




**




**


Total charge-off



1.67




1.92




2.01




1.92




2.03




(25)




(36)


































7


























 















































2014 Q2 vs.


(Dollars in millions) (unaudited)


2014
Q2



2014
Q1



2013
Q4



2013
Q3



2013
Q2



2014
Q1



2013
Q2


30+ Day Performing Delinquency Rates





























Credit card:





























Domestic credit card



2.83

%



3.02

%



3.43

%



3.46

%



3.05

%



(19)

bps 



(22)

bps 

International credit card



3.40




3.59




3.71




3.86




3.84




(19)




(44)


Total credit card



2.89




3.08




3.46




3.51




3.13




(19)




(24)


Consumer banking:





























Auto



5.77




5.29




6.85




6.29




6.03




48




(26)


Home loan



0.13




0.12




0.16




0.14




0.12




1




1


Retail banking



0.48




0.74




0.69




0.68




0.68




(26)




(20)


Total consumer banking



2.91




2.57




3.20




2.82




2.55




34




36


Nonperforming Assets Rates(2)





























Credit card:





























International credit card



1.03




1.07




1.10




1.16




1.20




(4)




(17)


Total credit card



0.10




0.11




0.11




0.12




0.12




(1)




(2)


Consumer banking:





























Auto(3)



0.88




0.81




1.11




0.92




0.81




7




7


Home loan



1.16




1.17




1.14




1.08




1.08




(1)




8


Retail banking



0.79




1.15




1.13




1.10




1.11




(36)




(32)


Total consumer banking



1.01




1.00




1.12




1.01




0.97




1




4


Commercial banking:





























Commercial and multifamily real estate



0.32




0.31




0.29




0.40




0.56




1




(24)


Commercial and industrial



0.45




0.40




0.44




0.65




0.65




5




(20)


Total commercial lending



0.39




0.35




0.37




0.53




0.61




4




(22)


Small-ticket commercial real estate



1.40




0.73




0.43




1.49




1.11




67




29


Total commercial banking



0.41




0.36




0.37




0.56




0.62




5




(21)


Total nonperforming assets



0.55




0.54




0.58




0.60




0.58




1




(3)
































8




























 

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 8: Financial Summary-Business Segments(1)








Three Months Ended June 30, 2014


(Dollars in millions) (unaudited)


Total



Credit Card



Consumer
Banking



Commercial
Banking



Other


Earnings:





















Net interest income (expense)


$

4,315



$

2,461



$

1,431



$

436



$

(13)


Non-interest income



1,153




839




170




109




35























Total net revenue(4)



5,468




3,300




1,601




545




22


Provision for credit losses



704




549




143




12




-


Non-interest expense



2,979




1,719




938




267




55























Income (loss) from continuing operations before taxes



1,785




1,032




520




266




(33)


Income tax provision (benefit)



581




364




186




95




(64)























Income from continuing operations, net of tax


$

1,204



$

668



$

334



$

171



$

31



























Three Months Ended March 31, 2014


(Dollars in millions) (unaudited)


Total



Credit
Card



Consumer
Banking



Commercial
Banking



Other


Earnings:





















Net interest income (expense)


$

4,350



$

2,525



$

1,433



$

421



$

(29)


Non-interest income (expense)



1,020




785




150




87




(2)























Total net revenue (loss)(4)



5,370




3,310




1,583




508




(31)


Provision (benefit) for credit losses



735




558




140




40




(3)


Non-interest expense



2,932




1,726




930




255




21























Income (loss) from continuing operations before taxes



1,703




1,026




513




213




(49)


Income tax provision (benefit)



579




358




183




76




(38)























Income (loss) from continuing operations, net of tax


$

1,124



$

668



$

330



$

137



$

(11)



























Three Months Ended June 30, 2013


(Dollars in millions) (unaudited)


Total



Credit
Card



Consumer
Banking



Commercial
Banking



Other


Earnings:





















Net interest income (expense)


$

4,553



$

2,804



$

1,478



$

402



$

(131)


Non-interest income (expense)



1,085




832




189




93




(29)























Total net revenue (loss)(4)



5,638




3,636




1,667




495




(160)


Provision (benefit) for credit losses



762




713




67




(14)




(4)


Non-interest expense



3,018




1,819




910




228




61























Income (loss) from continuing operations before taxes



1,858




1,104




690




281




(217)


Income tax provision (benefit)



631




385




246




100




(100)























Income (loss) from continuing operations, net of tax


$

1,227



$

719



$

444



$

181



$

(117)

























9



















 

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 9: Financial & Statistical Summary-Credit Card Business(1)




































































2014 Q2 vs.


(Dollars in millions) (unaudited)


2014
Q2



2014
Q1



2013
Q4



2013
Q3



2013
Q2



2014
Q1



2013
Q2


Credit Card





























Earnings:





























Net interest income


$

2,461



$

2,525



$

2,576



$

2,757



$

2,804




(3)%




(12)%


Non-interest income



839




785




833




834




832




7




1































Total net revenue



3,300




3,310




3,409




3,591




3,636




-




(9)


Provision for credit losses



549




558




751




617




713




(2)




(23)


Non-interest expense



1,719




1,726




1,868




1,904




1,819




-




(5)































Income from continuing operations before taxes



1,032




1,026




790




1,070




1,104




1




(7)


Income tax provision



364




358




274




376




385




2




(5)































Income from continuing operations, net of tax


$

668



$

668



$

516



$

694



$

719




-




(7)































Selected performance metrics:





























Period-end loans held for investment


$

79,018



$

75,850



$

81,305



$

77,967



$

78,310




4




1


Average loans held for investment



76,997




77,502




78,267




77,729




77,946




(1)




(1)


Average yield on loans held for investment(5)



14.22

%



14.43

%



14.64

%



15.72

%



15.94

%



(21)

bps 



(172)

bps 

Total net revenue margin(6)



17.14




17.08




17.43




18.48




18.66




6




(152)


Net charge-off rate



3.56




4.02




3.98




3.78




4.36




(46)




(80)


30+ day performing delinquency rate



2.89




3.08




3.46




3.51




3.13




(19)




(24)


30+ day delinquency rate



2.97




3.16




3.54




3.60




3.22




(19)




(25)


Nonperforming loan rate



0.10




0.11




0.11




0.12




0.12




(1)




(2)


Card loan premium amortization and other intangible accretion(7)


$

31



$

37



$

39



$

45



$

57




(16)

%



(46)

%

PCCR intangible amortization



94




98




102




106




110




(4)




(15)


Purchase volume(8)



56,358




47,434




54,245




50,943




50,788




19




11


Domestic Card





























Earnings:





























Net interest income


$

2,193



$

2,255



$

2,303



$

2,492



$

2,536




(3)




(14)


Non-interest income



768




702




747




749




737




9




4































Total net revenue



2,961




2,957




3,050




3,241




3,273




-




(10)


Provision for credit losses



504




486




679




529




647




4




(22)


Non-interest expense



1,513




1,545




1,664




1,713




1,635




(2)




(7)































Income from continuing operations before taxes



944




926




707




999




991




2




(5)


Income tax provision



337




331




252




355




353




2




(5)































Income from continuing operations, net of tax


$

607



$

595



$

455



$

644



$

638




2




(5)































Selected performance metrics:





























Period-end loans held for investment


$

71,165



$

68,275



$

73,255



$

69,936



$

70,490




4




1


Average loans held for investment



69,376




69,810




70,368




69,947




69,966




(1)




(1)


Average yield on loans held for investment(5)



13.95

%



14.19

%



14.44

%



15.65

%



15.91

%



(24)

bps 



(196)

bps 

Total net revenue margin(6)



17.07




16.94




17.34




18.53




18.71




13




(164)


Net charge-off rate



3.52




4.01




3.89




3.67




4.28




(49)




(76)


30+ day performing delinquency rate



2.83




3.02




3.43




3.46




3.05




(19)




(22)


30+ day delinquency rate



2.83




3.02




3.43




3.46




3.05




(19)




(22)


Purchase volume(8)


$

52,653



$

44,139



$

50,377



$

47,420



$

47,273




19

%



11

%

International Card





























Earnings:





























Net interest income


$

268



$

270



$

273



$

265



$

268




(1)




-


Non-interest income



71




83




86




85




95




(14)




(25)































Total net revenue



339




353




359




350




363




(4)




(7)


Provision for credit losses



45




72




72




88




66




(38)




(32)


Non-interest expense



206




181




204




191




184




14




12































Income from continuing operations before taxes



88




100




83




71




113




(12)




(22)


Income tax provision



27




27




22




21




32




-




(16)































Income from continuing operations, net of tax


$

61



$

73



$

61



$

50



$

81




(16)




(25)




































10
























 















































2014 Q2 vs.


(Dollars in millions) (unaudited)


2014
Q2



2014
Q1



2013
Q4



2013
Q3



2013
Q2



2014
Q1



2013
Q2


Selected performance metrics:





























Period-end loans held for investment


$

7,853



$

7,575



$

8,050



$

8,031



$

7,820




4

%



-

%

Average loans held for investment



7,621




7,692




7,899




7,782




7,980




(1)




(4)


Average yield on loans held for investment



16.74

%



16.64

%



16.48

%



16.35

%



16.19

%



10

bps 



55

bps 

Total net revenue margin



17.76




18.38




18.20




17.99




18.20




(62)




(44)


Net charge-off rate



3.93




4.17




4.74




4.71




5.08




(24)




(115)


30+ day performing delinquency rate



3.40




3.59




3.71




3.86




3.84




(19)




(44)


30+ day delinquency rate



4.20




4.41




4.56




4.78




4.79




(21)




(59)


Nonperforming loan rate



1.03




1.07




1.10




1.16




1.20




(4)




(17)


Purchase volume(8)


$

3,705



$

3,295



$

3,868



$

3,523



$

3,515




12

%



5

%

































11


























  

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 10: Financial & Statistical Summary-Consumer Banking Business(1)



































































2014 Q2 vs.


(Dollars in millions) (unaudited)


2014
Q2



2014
Q1



2013
Q4



2013
Q3



2013
Q2



2014
Q1



2013
Q2


Consumer Banking





























Earnings:





























Net interest income


$

1,431



$

1,433



$

1,468



$

1,481



$

1,478




-

%



(3)

%

Non-interest income



170




150




195




184




189




13




(10)































Total net revenue



1,601




1,583




1,663




1,665




1,667




1




(4)


Provision for credit losses



143




140




212




202




67




2




113


Non-interest expense



938




930




1,018




927




910




1




3































Income from continuing operations before taxes



520




513




433




536




690




1




(25)


Income tax provision



186




183




154




191




246




2




(24)































Income from continuing operations, net of tax


$

334



$

330



$

279



$

345



$

444




1




(25)































Selected performance metrics:





























Period-end loans held for investment


$

71,062



$

70,727



$

70,762



$

71,285



$

72,218




-




(2)


Average loans held for investment



70,884




70,663




71,033




71,664




72,930




-




(3)


Average yield on loans held for investment



6.22

%



6.18

%



6.30

%



6.21

%



5.99

%



4

bps 



23

bps 

Auto loan originations


$

5,376



$

4,727



$

4,322



$

4,752



$

4,525




14

%



19

%

Period-end deposits



169,153




171,529




167,652




168,437




169,789




(1)




-


Average deposits



169,694




168,676




167,870




169,082




170,733




1




(1)


Average deposit interest rate



0.57

%



0.57

%



0.60

%



0.63

%



0.64

%



-

bps 



(7)

bps 

Core deposit intangible amortization


$

28



$

30



$

32



$

34



$

35




(7)

%



(20)

%

Net charge-off rate



0.69

%



0.84

%



1.09

%



0.95

%



0.60

%



(15)

bps 



9

bps 

30+ day performing delinquency rate



2.91




2.57




3.20




2.82




2.55




34




36


30+ day delinquency rate



3.49




3.14




3.89




3.46




3.15




35




34


Nonperforming loan rate



0.75




0.74




0.86




0.79




0.78




1




(3)


Nonperforming asset rate(2)



1.01




1.00




1.12




1.01




0.97




1




4


Period-end loans serviced for others


$

6,944



$

6,868



$

7,665



$

14,043



$

14,313




1

%



(51)

%


































12

























  

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 11: Financial & Statistical Summary-Commercial Banking Business(1)



































































2014 Q2 vs.


(Dollars in millions) (unaudited)


2014
Q2



2014
Q1



2013
Q4



2013
Q3



2013
Q2



2014
Q1



2013
Q2


Commercial Banking





























Earnings:





























Net interest income


$

436



$

421



$

447



$

424



$

402




4

%



8

%

Non-interest income



109




87




131




87




93




25




17































Total net revenue(4)(9)



545




508




578




511




495




7




10


Provision (benefit) for credit losses



12




40




(6)




31




(14)




(70)




**


Non-interest expense



267




255




281




228




228




5




17































Income from continuing operations before taxes



266




213




303




252




281




25




(5)


Income tax provision



95




76




108




90




100




25




(5)































Income from continuing operations, net of tax


$

171



$

137



$

195



$

162



$

181




25




(6)































Selected performance metrics:





























Period-end loans held for investment


$

48,321



$

46,230



$

45,011



$

42,399



$

40,805




5




18


Average loans held for investment



46,991




45,435




43,359




41,576




39,512




3




19


Average yield on loans held for investment(9)



3.50

%



3.47

%



3.92

%



3.87

%



3.84

%



3

bps 



(34)

bps 

Period-end deposits


$

31,440



$

31,485



$

30,567



$

30,592



$

30,869




-

%



2

%

Average deposits



31,238




31,627




31,033




30,685




30,746




(1)




2


Average deposit interest rate



0.24

%



0.25

%



0.25

%



0.27

%



0.26

%



(1)

bps 



(2)

bps 

Core deposit intangible amortization


$

5



$

6



$

6



$

6



$

8




(17)

%



(38)

%

Net charge-off rate



0.03

%



0.04

%



(0.05)

%



0.07

%



0.04

%



(1)

bps 



(1)

bps 

Nonperforming loan rate



0.38




0.33




0.33




0.47




0.60




5




(22)


Nonperforming asset rate(2)



0.41




0.36




0.37




0.56




0.62




5




(21)


Risk category:(10)





























Noncriticized


$

46,689



$

44,904



$

43,593



$

40,940



$

39,168




4

%



19

%

Criticized performing



1,234




952




1,007




968




1,087




30




14


Criticized nonperforming



181




150




149




201




244




21




(26)































Total risk-rated loans



48,104




46,006




44,749




42,109




40,499




5




19


Acquired commercial loans



217




224




262




290




306




(3)




(29)































Total commercial loans


$

48,321



$

46,230



$

45,011



$

42,399



$

40,805




5




18































% of period-end commercial loans held for investment:





























Noncriticized



96.6

%



97.1

%



96.9

%



96.5

%



96.0

%



(50)

bps 



60

bps 

Criticized performing



2.6




2.1




2.2




2.3




2.7




50




(10)


Criticized nonperforming



0.4




0.3




0.3




0.5




0.6




10




(20)































Total risk-rated loans



99.6




99.5




99.4




99.3




99.3




10




30


Acquired commercial loans



0.4




0.5




0.6




0.7




0.7




(10)




(30)































Total commercial loans



100.0

%



100.0

%



100.0

%



100.0

%



100.0

%



-




-


































13


























  

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 12: Financial & Statistical Summary-Other and Total(1)




































































2014 Q2 vs.


(Dollars in millions) (unaudited)


2014
Q2



2014
Q1



2013
Q4



2013
Q3



2013
Q2



2014
Q1



2013
Q2


Other





























Earnings:





























Net interest expense


$

(13)



$

(29)



$

(68)



$

(102)



$

(131)




(55)

%



(90)

%

Non-interest income



35




(2)




(38)




(14)




(29)




**




**































Total net revenue (loss)(4)



22




(31)




(106)




(116)




(160)




**




**


Provision (benefit) for credit losses



-




(3)




-




(1)




(4)




**




**


Non-interest expense



55




21




68




50




61




162




(10)































Loss from continuing operations before taxes



(33)




(49)




(174)




(165)




(217)




(33)




(85)


Income tax benefit



(64)




(38)




(59)




(82)




(100)




68




(36)































Income (loss) from continuing operations, net of tax


$

31



$

(11)



$

(115)



$

(83)



$

(117)




**




**































Selected performance metrics:





























Period-end loans held for investment


$

127



$

134



$

121



$

163



$

179




(5)




(29)


Average loans held for investment



124




122




154




166




174




2




(29)


Period-end deposits



5,297




5,310




6,304




7,805




9,207




-




(42)


Average deposits



5,383




5,539




6,803




8,573




9,171




(3)




(41)


Total





























Earnings:





























Net interest income


$

4,315



$

4,350



$

4,423



$

4,560



$

4,553




(1)




(5)


Non-interest income



1,153




1,020




1,121




1,091




1,085




13




6































Total net revenue



5,468




5,370




5,544




5,651




5,638




2




(3)


Provision for credit losses



704




735




957




849




762




(4)




(8)


Non-interest expense



2,979




2,932




3,235




3,109




3,018




2




(1)































Income from continuing operations before taxes



1,785




1,703




1,352




1,693




1,858




5




(4)


Income tax provision



581




579




477




575




631




-