Capital One Reports First Quarter 2016 Net Income of $1.0 billion, or $1.84 per share

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Apr 26, 2016, 04:05 ET

MCLEAN, Va., April 26, 2016 /PRNewswire/ -- Capital One Financial Corporation (NYSE: COF) today announced net income for the first quarter of 2016 of $1.0 billion, or $1.84 per diluted common share, compared to the fourth quarter of 2015 with net income of $920 million, or $1.58 per diluted common share, and the first quarter of 2015 with net income of $1.2 billion, or $2.00 per diluted common share.

"First quarter 2016 was another quarter of strong growth in our Domestic Card business, both in loan balances and purchase volumes, which drove strong growth in revenue," said Richard D. Fairbank, Chair and Chief Executive Officer. "We continue to be in a strong position to deliver attractive shareholder returns, driven by growth and sustainable returns at the higher end of banks, as well as significant capital distribution, subject to regulatory approval."

All comparisons below are for the first quarter of 2016 compared with the fourth quarter of 2015 unless otherwise noted.

First Quarter 2016 Income Statement Summary:

Total net revenue remained flat at $6.2 billion.
Total non-interest expense decreased 7 percent to $3.2 billion.
- 24 percent decrease in marketing.
- 4 percent decrease in operating expenses.
Pre-provision earnings increased 10 percent to $3.0 billion.
Provision for credit losses increased 11 percent to $1.5 billion
- Net charge-offs of $1.2 billion.
- $286 million allowance build.
Net interest margin of 6.75 percent, down 4 basis points.
Efficiency ratio of 51.82 percent.

First Quarter 2016 Balance Sheet Summary:

Common equity Tier 1 capital ratio under Basel III Standardized Approach of 11.1 percent at March 31, 2016.
Period-end loans held for investment in the quarter decreased $2.2 billion, or 1 percent, to $227.6 billion.
- Domestic Card period-end loans decreased $3.4 billion, or 4 percent, to $84.6 billion.
- Consumer Banking period-end loans increased $219 million, or less than 1 percent, to $70.6 billion.
  - Auto period-end loans increased $1.2 billion, or 3 percent, to $42.7 billion.
  - Home loans period-end loans decreased $884 million, or 4 percent, to $24.3 billion, driven by run-off of acquired portfolios.
- Commercial Banking period-end loans increased $975 million, or 2 percent, to $64.2 billion.
Average loans held for investment in the quarter increased $6.7 billion, or 3 percent, to $226.7 billion.
- Domestic Card average loans increased $1.4 billion, or 2 percent, to $85.1 billion.
- Consumer Banking average loans decreased $408 million, or 1 percent, to $70.3 billion:
  - Auto average loans increased $629 million, or 2 percent, to $42.0 billion.
  - Home loans average loans decreased $995 million, or 4 percent, to $24.8 billion, driven by planned run-off of acquired portfolios.
- Commercial Banking average loans increased $6.0 billion, or 10 percent, to $63.4 billion, including the acquired HFS loans.
Period-end total deposits increased $4.1 billion, or 2 percent, to $221.8 billion, while average deposits increased $3.3 billion, or 2 percent, to $219.2 billion.
Interest-bearing deposits rate paid remained flat at 0.58 percent.

Earnings Conference Call Webcast Information

The company will hold an earnings conference call on April 26, 2016 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 May 10, 2016 at 5:00 PM Eastern Time.

Forward-Looking Statements

Certain statements in this release may constitute forward-looking statements, which involve a number of risks and uncertainties. Capital One cautions readers that any forward-looking information is not a guarantee of future performance and that actual results could differ materially from those contained in the forward-looking information due to a number of factors, including those listed from time to time in reports that Capital One files with the Securities and Exchange Commission, including, but not limited to, the Annual Report on Form 10-K for the year ended December 31, 2015.

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 $221.8 billion in deposits and $330.3 billion in total assets as of March 31, 2016. Headquartered in McLean, Virginia, Capital One offers a broad spectrum of financial products and services to consumers, small businesses and commercial clients through a variety of channels. Capital One, N.A. has branches located primarily in New York, 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
First Quarter 2016⁽¹⁾
Table of Contents

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

⁽¹⁾	The information contained in this Financial Supplement is preliminary and based on data available at the time of the earnings presentation. Investors should refer to our Quarterly Report on Form 10-Q for the period ended March 31, 2016 once it is filed with the Securities and Exchange Commission.

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 1: Financial Summary—Consolidated
											2016 Q1 vs,
(Dollars in millions, except per share data and as noted) (unaudited)	2016		2015		2015		2015		2015		2015	2015
	Q1		Q4		Q3		Q2		Q1		Q4	Q1
Income Statement
Net interest income	$	5,056	$	4,961	$	4,760	$	4,537	$	4,576	2%	10%
Non-interest income	1,164		1,233		1,140		1,135		1,071		(6)	9
Total net revenue⁽¹⁾	6,220		6,194		5,900		5,672		5,647		—	10
Provision for credit losses	1,527		1,380		1,092		1,129		935		11	63
Non-interest expense:
Marketing	428		564		418		387		375		(24)	14
Amortization of intangibles	101		103		106		111		110		(2)	(8)
Operating expenses	2,694		2,813		2,636		2,809		2,564		(4)	5
Total non-interest expense	3,223		3,480		3,160		3,307		3,049		(7)	6
Income from continuing operations before income taxes	1,470		1,334		1,648		1,236		1,663		10	(12)
Income tax provision	452		426		530		384		529		6	(15)
Income from continuing operations, net of tax	1,018		908		1,118		852		1,134		12	(10)
Income (loss) from discontinued operations, net of tax⁽²⁾	(5)		12		(4)		11		19		**	**
Net income	1,013		920		1,114		863		1,153		10	(12)
Dividends and undistributed earnings allocated to participating securities⁽³⁾	(6)		(4)		(6)		(4)		(6)		50	—
Preferred stock dividends⁽³⁾	(37)		(68)		(29)		(29)		(32)		(46)	16
Net income available to common stockholders	$	970	$	848	$	1,079	$	830	$	1,115	14	(13)
Common Share Statistics
Basic earnings per common share:⁽³⁾
Net income from continuing operations	$	1.86	$	1.58	$	2.01	$	1.50	$	2.00	18%	(7)%
Income (loss) from discontinued operations	(0.01)		0.02		(0.01)		0.02		0.03		**	**
Net income per basic common share	$	1.85	$	1.60	$	2.00	$	1.52	$	2.03	16	(9)
Diluted earnings per common share:⁽³⁾
Net income from continuing operations	$	1.85	$	1.56	$	1.99	$	1.48	$	1.97	19	(6)
Income (loss) from discontinued operations	(0.01)		0.02		(0.01)		0.02		0.03		**	**
Net income per diluted common share⁽⁴⁾	$	1.84	$	1.58	$	1.98	$	1.50	$	2.00	16	(8)
Weighted-average common shares outstanding (in millions):
Basic	523.5		530.8		540.6		545.6		550.2		(1)	(5)
Diluted	528.0		536.3		546.3		552.0		557.2		(2)	(5)
Common shares outstanding (period end, in millions)	514.5		527.3		534.9		542.5		548.0		(2)	(6)
Dividends paid per common share	$	0.40	$	0.40	$	0.40	$	0.40	$	0.30	—	33
Tangible book value per common share (period end)⁽⁵⁾	55.94		53.65		54.66		52.74		52.19		4	7

											2016 Q1 vs.
(Dollars in millions) (unaudited)	2016		2015		2015		2015		2015		2015	2015
(Dollars in millions) (unaudited)	Q1		Q4		Q3		Q2		Q1		Q4	Q1
Balance Sheet (Period End)
Loans held for investment⁽⁶⁾	$	227,613	$	229,851	$	213,329	$	209,705	$	203,978	(1)%	12%
Interest-earning assets	298,348		302,007		283,073		280,137		275,837		(1)	8
Total assets	330,346		334,048		313,700		310,510		306,224		(1)	8
Interest-bearing deposits	196,597		191,874		187,848		183,657		185,208		2	6
Total deposits	221,779		217,721		212,903		208,780		210,440		2	5
Borrowings	50,497		59,115		42,778		45,766		41,029		(15)	23
Common equity	44,411		43,990		44,391		43,849		43,908		1	1
Total stockholders' equity	47,707		47,284		47,685		46,659		45,730		1	4
Balance Sheet (Average Balances)
Loans held for investment⁽⁶⁾	$	226,736	$	220,052	$	211,227	$	206,337	$	205,194	3%	10%
Interest-earning assets	299,456		292,054		283,082		276,585		278,427		3	8
Total assets	331,919		323,354		313,822		307,206		309,401		3	7
Interest-bearing deposits	194,125		189,885		185,800		183,946		182,998		2	6
Total deposits	219,180		215,899		210,974		209,143		207,851		2	5
Borrowings	53,761		48,850		45,070		41,650		46,082		10	17
Common equity	45,782		45,418		45,407		44,878		44,575		1	3
Total stockholders' equity	49,078		48,712		48,456		47,255		46,397		1	6

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 2: Selected Metrics—Consolidated
											2016 Q1 vs.
(Dollars in millions except as noted) (unaudited)	2016		2015		2015		2015		2015		2015	2015
(Dollars in millions except as noted) (unaudited)	Q1		Q4		Q3		Q2		Q1		Q4	Q1
Performance Metrics
Net interest income growth (period over period)	2%		4%		5%		(1)%		(2)%		**	**
Non-interest income growth (period over period)	(6)		8		—		6		(7)		**	**
Total net revenue growth (period over period)	—		5		4		—		(3)		**	**
Total net revenue margin⁽⁷⁾	8.31		8.48		8.34		8.20		8.11		(17) bps	20 bps
Net interest margin⁽⁸⁾	6.75		6.79		6.73		6.56		6.57		(4)	18
Return on average assets	1.23		1.12		1.43		1.11		1.47		11	(24)
Return on average tangible assets⁽⁹⁾	1.29		1.18		1.50		1.17		1.54		11	(25)
Return on average common equity⁽¹⁰⁾	8.52		7.36		9.54		7.30		9.84		116	(132)
Return on average tangible common equity⁽¹¹⁾	12.94		11.11		14.33		11.06		15.00		183	(206)
Non-interest expense as a percentage of average loans held for investment	5.69		6.33		5.98		6.41		5.94		(64)	(25)
Efficiency ratio⁽¹²⁾	51.82		56.18		53.56		58.30		53.99		(436)	(217)
Effective income tax rate for continuing operations	30.7		31.9		32.2		31.1		31.8		(120)	(110)
Employees (in thousands), period end	45.8		45.4		46.9		47.5		47.0		1%	(3)%
Credit Quality Metrics⁽⁶⁾
Allowance for loan and lease losses	$	5,416	$	5,130	$	4,847	$	4,676	$	4,405	6%	23%
Allowance as a percentage of loans held for investment	2.38%		2.23%		2.27%		2.23%		2.16%		15 bps	22 bps
Net charge-offs	$	1,178	$	1,078	$	890	$	846	$	881	9%	34%
Net charge-off rate⁽¹³⁾	2.08%		1.96%		1.69%		1.64%		1.72%		12 bps	36 bps
30+ day performing delinquency rate	2.33		2.69		2.63		2.33		2.32		(36)	1
30+ day delinquency rate	2.64		3.00		2.95		2.65		2.58		(36)	6
Capital Ratios⁽¹⁴⁾
Common equity Tier 1 capital ratio	11.1%		11.1%		12.1%		12.1%		12.5%		—	(140) bps
Tier 1 capital ratio	12.4		12.4		13.4		13.3		13.2		—	(80)
Total capital ratio	14.6		14.6		15.1		15.1		15.1		—	(50)
Tier 1 leverage ratio	10.2		10.6		11.1		11.1		10.7		(40) bps	(50)
Tangible common equity ("TCE") ratio⁽¹⁵⁾	9.1		8.9		9.8		9.7		9.8		20	(70)

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 3: Consolidated Statements of Income

	Three Months Ended						2016 Q1 vs.
	2016		2015		2015		2015	2015
(Dollars in millions, except per share data and as noted) (unaudited)	Q1		Q4		Q1		Q4	Q1
Interest income:
Loans, including loans held for sale	$	5,085	$	4,961	$	4,540	2%	12%
Investment securities	415		401		406		3	2
Other	17		22		28		(23)	(39)
Total interest income	5,517		5,384		4,974		2	11
Interest expense:
Deposits	283		277		271		2	4
Securitized debt obligations	48		43		33		12	45
Senior and subordinated notes	106		89		79		19	34
Other borrowings	24		14		15		71	60
Total interest expense	461		423		398		9	16
Net interest income	5,056		4,961		4,576		2	10
Provision for credit losses	1,527		1,380		935		11	63
Net interest income after provision for credit losses	3,529		3,581		3,641		(1)	(3)
Non-interest income:
Service charges and other customer-related fees	404		426		437		(5)	(8)
Interchange fees, net	596		617		496		(3)	20
Net other-than-temporary impairment recognized in earnings	(8)		(3)		(15)		167	(47)
Other	172		193		153		(11)	12
Total non-interest income	1,164		1,233		1,071		(6)	9
Non-interest expense:
Salaries and associate benefits	1,270		1,215		1,211		5	5
Occupancy and equipment	458		511		435		(10)	5
Marketing	428		564		375		(24)	14
Professional services	278		349		296		(20)	(6)
Communications and data processing	243		247		202		(2)	20
Amortization of intangibles	101		103		110		(2)	(8)
Other	445		491		420		(9)	6
Total non-interest expense	3,223		3,480		3,049		(7)	6
Income from continuing operations before income taxes	1,470		1,334		1,663		10	(12)
Income tax provision	452		426		529		6	(15)
Income from continuing operations, net of tax	1,018		908		1,134		12	(10)
Income (loss) from discontinued operations, net of tax⁽²⁾	(5)		12		19		**	**
Net income	1,013		920		1,153		10	(12)
Dividends and undistributed earnings allocated to participating securities⁽³⁾	(6)		(4)		(6)		50	—
Preferred stock dividends⁽³⁾	(37)		(68)		(32)		(46)	16
Net income available to common stockholders	$	970	$	848	$	1,115	14	(13)

	Three Months Ended						2016 Q1 vs.
	2016		2015		2015		2015	2015
(Dollars in millions, except per share data and as noted) (unaudited)	Q1		Q4		Q1		Q4	Q1
Basic earnings per common share:⁽³⁾
Net income from continuing operations	$	1.86	$	1.58	$	2.00	18%	(7)%
Income (loss) from discontinued operations	(0.01)		0.02		0.03		**	**
Net income per basic common share	$	1.85	$	1.60	$	2.03	16	(9)
Diluted earnings per common share:⁽³⁾
Net income from continuing operations	$	1.85	$	1.56	$	1.97	19	(6)
Income (loss) from discontinued operations	(0.01)		0.02		0.03		**	**
Net income per diluted common share⁽⁴⁾	$	1.84	$	1.58	$	2.00	16	(8)
Weighted-average common shares outstanding (in millions):
Basic common shares	523.5		530.8		550.2		(1)	(5)
Diluted common shares	528.0		536.3		557.2		(2)	(5)
Dividends paid per common share	$	0.40	$	0.40	$	0.30	—	33

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 4: Consolidated Balance Sheets
							March 31, 2016 vs.
(Dollars in millions) (unaudited)	March 31, 2016		December 31, 2015		March 31, 2015		December 31, 2015	March 31, 2015
Assets:
Cash and cash equivalents:
Cash and due from banks	$	3,241	$	3,407	$	2,853	(5)%	14%
Interest-bearing deposits with banks	1,909		4,577		6,038		(58)	(68)
Federal funds sold and securities purchased under agreements to resell	85		39		0		118	**
Total cash and cash equivalents	5,235		8,023		8,891		(35)	(41)
Restricted cash for securitization investors	960		1,017		234		(6)	**
Securities available for sale, at fair value	40,092		39,061		39,321		3	2
Securities held to maturity, at carrying value	25,080		24,619		23,241		2	8
Loans held for investment:⁽⁶⁾
Unsecuritized loans held for investment	195,705		196,068		170,040		—	15
Loans held in consolidated trusts	31,908		33,783		33,938		(6)	(6)
Total loans held for investment	227,613		229,851		203,978		(1)	12
Allowance for loan and lease losses	(5,416)		(5,130)		(4,405)		6	23
Net loans held for investment	222,197		224,721		199,573		(1)	11
Loans held for sale, at lower of cost or fair value	1,251		904		1,331		38	(6)
Premises and equipment, net	3,542		3,584		3,684		(1)	(4)
Interest receivable	1,221		1,189		1,078		3	13
Goodwill	14,492		14,480		13,978		—	4
Other assets	16,276		16,450		14,893		(1)	9
Total assets	$	330,346	$	334,048	$	306,224	(1)	8

							March 31, 2016 vs.
(Dollars in millions) (unaudited)	March 31, 2016		December 31, 2015		March 31, 2015		December 31, 2015	March 31, 2015
Liabilities:
Interest payable	$	217	$	299	$	195	(27)%	11%
Deposits:
Non-interest bearing deposits	25,182		25,847		25,232		(3)	—
Interest-bearing deposits	196,597		191,874		185,208		2	6
Total deposits	221,779		217,721		210,440		2	5
Securitized debt obligations	14,913		16,166		12,717		(8)	17
Other debt:
Federal funds purchased and securities loaned or sold under agreements to repurchase	917		981		933		(7)	(2)
Senior and subordinated notes	21,736		21,837		20,559		—	6
Other borrowings	12,931		20,131		6,820		(36)	90
Total other debt	35,584		42,949		28,312		(17)	26
Other liabilities	10,146		9,629		8,830		5	15
Total liabilities	282,639		286,764		260,494		(1)	9

Stockholders' equity:
Preferred stock	0		0		0		—	—
Common stock	7		6		6		17	17
Additional paid-in capital, net	29,709		29,655		27,939		—	6
Retained earnings	27,808		27,045		24,925		3	12
Accumulated other comprehensive loss	(41)		(616)		(212)		(93)	(81)
Treasury stock, at cost	(9,776)		(8,806)		(6,928)		11	41
Total stockholders' equity	47,707		47,284		45,730		1	4
Total liabilities and stockholders' equity	$	330,346	$	334,048	$	306,224	(1)	8

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 5: Notes to Financial Summary, Selected Metrics and Consolidated Financial Statements (Tables 1—4)

^**Not meaningful.

⁽¹⁾Total net revenue was reduced by $228 million in Q1 2016, $222 million in Q4 2015, $195 million in Q3 2015, $168 million in Q2 2015 and $147 million in Q1 2015 for the estimated uncollectible amount of billed finance charges and fees.

⁽²⁾Historically, the majority of the provision (benefit) for representation and warranty losses is included net of tax in discontinued operations. The provision (benefit) for mortgage representation and warranty losses included the following activity:

									2016		2015		2015		2015		2015
(Dollars in millions) (unaudited)									Q1		Q4		Q3		Q2		Q1
Provision (benefit) for mortgage representation and warranty losses before income taxes:
Recorded in continuing operations									$	(1)	$	(1)	$	(7)	$	(9)	$	1
Recorded in discontinued operations									3		(21)		3		(27)		(19)
Total provision (benefit) for mortgage representation and warranty losses before income taxes									$	2	$	(22)	$	(4)	$	(36)	$	(18)

The mortgage representation and warranty reserve was $613 million as of March 31, 2016, $610 million as of December 31, 2015 and $673 million as of March 31, 2015.

⁽³⁾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.

⁽⁴⁾In Q4 2015, we recorded charges totaling $72 million associated with (i) completing the acquisition of the Healthcare Financial Services business of General Electric Capital Corporation ("HFS acquisition") and establishing an initial allowance and reserve related to the loans acquired; (ii) certain planned site closures; and (iii) revisions to the restructuring charges recorded in Q2 2015 to reflect updated information. We recorded a build in the U.K. Payment Protection Insurance customer refund reserve ("U.K. PPI Reserve") of $69 million in Q3 2015 and $78 million in Q2 2015. In Q2 2015, we also recorded restructuring charges of $147 million for severance and related benefits pursuant to our ongoing benefit programs, as a result of the realignment of our workforce. We report the following non-GAAP financial measures that we believe are helpful for investors to understand the effect of these items on our reported results. The table below presents a reconciliation of our reported results to these non-GAAP financial measures. Periods not presented did not have any adjustments.

	2015 Q4						2015 Q3						2015 Q2
(Dollars in millions, except per share data) (unaudited)	Pre-Tax Income		Net Income		Diluted EPS		Pre-Tax Income		Net Income		Diluted EPS		Pre-Tax Income		Net Income		Diluted EPS
Reported results	$	1,334	$	920	$	1.58	$	1,648	$	1,114	$	1.98	$	1,236	$	863	$	1.50
Adjustments	72		46		0.09		69		69		0.12		225		155		0.28
Results excluding adjustments	$	1,406	$	966	$	1.67	$	1,717	$	1,183	$	2.10	$	1,461	$	1,018	$	1.78

⁽⁵⁾ 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 on tangible common equity.

⁽⁶⁾ Included in loans held for investment are purchased credit-impaired loans ("PCI loans") 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," or Accounting Standards Codification 310-30). These include certain of our consumer and commercial loans that were acquired through business combinations. The table below presents amounts related to PCI loans:

									2016		2015		2015		2015		2015
(Dollars in millions) (unaudited)									Q1		Q4		Q3		Q2		Q1
PCI loans:
Period-end unpaid principal balance									$	19,492	$	20,434	$	20,585	$	21,841	$	23,248
Period-end loans held for investment									18,568		19,518		19,743		20,970		22,334
Average loans held for investment									18,894		19,319		20,116		21,440		22,773

⁽⁷⁾Calculated based on annualized total net revenue for the period divided by average interest-earning assets for the period.

⁽⁸⁾Calculated based on annualized net interest income for the period divided by average interest-earning assets for the period.

⁽⁹⁾Calculated based on annualized income from continuing operations, net of tax, for the period divided by average tangible assets for the period. Return on average tangible assets is a non-GAAP measure. See "Table 14: Reconciliation of Non-GAAP Measures and Calculation of Regulatory Capital Measures" for additional information.

⁽¹⁰⁾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.

⁽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 tangible common equity for the period. Return on average tangible common equity is a non-GAAP measure and our calculation 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.

⁽¹²⁾Calculated based on total non-interest expense for the period divided by total net revenue for the period. The efficiency ratio, excluding the adjustments discussed above in Footnote 4, was 55.82% for Q4 2015, 52.78% for Q3 2015 and 54.63% for Q2 2015.

⁽¹³⁾Calculated based on annualized net charge-offs for the period divided by average loans held for investment for the period.

⁽¹⁴⁾Ratios as of the end of Q1 2016 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.

⁽¹⁵⁾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.

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 6: Average Balances, Net Interest Income and Net Interest Margin

	2016 Q1					2015 Q4					2015 Q1
	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⁾
(Dollars in millions) (unaudited)
Interest-earning assets:
Loans, including loans held for sale	$	227,573	$	5,085	8.94%	$	220,760	$	4,961	8.99%	$	205,854	$	4,540	8.82%
Investment securities	65,156		415		2.55	64,444		401		2.49	63,181		406		2.57
Cash equivalents and other	6,727		17		1.01	6,850		22		1.28	9,392		28		1.19
Total interest-earning assets	$	299,456	$	5,517	7.37	$	292,054	$	5,384	7.37	$	278,427	$	4,974	7.15

Interest-bearing liabilities:
Interest-bearing deposits	$	194,125	$	283	0.58%	$	189,885	$	277	0.58%	$	182,998	$	271	0.59%
Securitized debt obligations	15,361		48		1.25	15,993		43		1.08	11,563		33		1.14
Senior and subordinated notes	21,993		106		1.93	21,987		89		1.62	20,595		79		1.53
Other borrowings and liabilities	17,176		24		0.56	11,542		14		0.49	14,721		15		0.41
Total interest-bearing liabilities	$	248,655	$	461	0.74	$	239,407	$	423	0.71	$	229,877	$	398	0.69
Net interest income/spread			$	5,056	6.63			$	4,961	6.66			$	4,576	6.46
Impact of non-interest bearing funding					0.12					0.13					0.11
Net interest margin					6.75%					6.79%					6.57%


__________
⁽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.

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 7: Loan Information and Performance Statistics

											2016 Q1 vs.
(Dollars in millions) (unaudited)	2016 Q1		2015 Q4		2015 Q3		2015 Q2		2015 Q1		2015 Q4	2015 Q1
Loans Held For Investment (Period End)
Credit card:
Domestic credit card	$	84,561	$	87,939	$	82,178	$	78,984	$	74,131	(4)%	14%
International credit card	8,138		8,186		7,957		8,219		7,623		(1)	7
Total credit card	92,699		96,125		90,135		87,203		81,754		(4)	13
Consumer banking:
Auto	42,714		41,549		41,052		39,991		38,937		3	10
Home loan	24,343		25,227		26,340		27,595		28,905		(4)	(16)
Retail banking	3,534		3,596		3,598		3,590		3,537		(2)	—
Total consumer banking	70,591		70,372		70,990		71,176		71,379		—	(1)
Commercial banking:
Commercial and multifamily real estate	25,559		25,518		23,585		22,886		22,831		—	12
Commercial and industrial	38,102		37,135		27,873		27,660		27,172		3	40
Total commercial lending	63,661		62,653		51,458		50,546		50,003		2	27
Small-ticket commercial real estate	580		613		654		685		738		(5)	(21)
Total commercial banking	64,241		63,266		52,112		51,231		50,741		2	27
Other loans	82		88		92		95		104		(7)	(21)
Total loans held for investment	$	227,613	$	229,851	$	213,329	$	209,705	$	203,978	(1)	12
Loans Held For Investment (Average)
Credit card:
Domestic credit card	$	85,148	$	83,760	$	80,402	$	75,924	$	74,770	2%	14%
International credit card	7,839		8,127		8,048		7,977		7,811		(4)	—
Total credit card	92,987		91,887		88,450		83,901		82,581		1	13
Consumer banking:
Auto	41,962		41,333		40,560		39,546		38,387		2	9
Home loan	24,781		25,776		26,934		28,251		29,493		(4)	(16)
Retail banking	3,553		3,595		3,603		3,570		3,561		(1)	—
Total consumer banking	70,296		70,704		71,097		71,367		71,441		(1)	(2)
Commercial banking:
Commercial and multifamily real estate	25,015		25,613		23,305		22,853		23,120		(2)	8
Commercial and industrial	37,762		31,132		27,620		27,414		27,190		21	39
Total commercial lending	62,777		56,745		50,925		50,267		50,310		11	25
Small-ticket commercial real estate	598		634		667		709		760		(6)	(21)
Total commercial banking	63,375		57,379		51,592		50,976		51,070		10	24
Other loans	78		82		88		93		102		(5)	(24)
Total average loans held for investment	$	226,736	$	220,052	$	211,227	$	206,337	$	205,194	3	10
Net Charge-Off (Recovery) Rates
Credit card:
Domestic credit card	4.16%		3.75%		3.08%		3.42%		3.55%		41 bps	61 bps
International credit card	3.24		2.76		1.80		2.65		2.80		48	44
Total credit card	4.09		3.66		2.96		3.35		3.48		43	61

											2016 Q1 vs.
(Dollars in millions) (unaudited)	2016 Q1		2015 Q4		2015 Q3		2015 Q2		2015 Q1		2015 Q4	2015 Q1
Consumer banking:
Auto		1.60%		2.10%		1.85%		1.22%		1.55%	(50) bps	5 bps
Home loan		0.05		0.05		0.01		0.04		0.03	—	2
Retail banking		1.36		1.43		1.53		1.39		0.96	(7)	40
Total consumer banking		1.04		1.32		1.14		0.76		0.89	(28)	15
Commercial banking:
Commercial and multifamily real estate		(0.01)		(0.03)		(0.15)		(0.04)		(0.03)	2	2
Commercial and industrial		0.49		0.07		0.61		0.13		0.05	42	44
Total commercial lending		0.29		0.02		0.26		0.05		0.01	27	28
Small-ticket commercial real estate		0.13		0.34		0.50		0.15		0.47	(21)	(34)
Total commercial banking		0.29		0.03		0.26		0.05		0.02	26	27
Total net charge-offs		2.08		1.96		1.69		1.64		1.72	12	36
30+ Day Performing Delinquency Rates
Credit card:
Domestic credit card		3.09%		3.39%		3.28%		2.84%		2.92%	(30) bps	17 bps
International credit card		3.32		2.98		2.81		2.65		2.81	34	51
Total credit card		3.11		3.36		3.24		2.82		2.91	(25)	20
Consumer banking:
Auto		5.14		6.69		6.10		5.58		5.21	(155)	(7)
Home loan		0.14		0.16		0.18		0.17		0.18	(2)	(4)
Retail banking		0.61		0.76		0.62		0.66		0.60	(15)	1
Total consumer banking		3.19		4.05		3.62		3.24		2.95	(86)	24
Nonperforming Loans and Nonperforming Assets Rates⁽¹⁾⁽²⁾
Credit card:
International credit card		0.59%		0.65%		0.77%		0.83%		0.84%	(6) bps	(25) bps
Total credit card		0.05		0.06		0.07		0.08		0.08	(1)	(3)
Consumer banking:
Auto		0.31		0.53		0.49		0.40		0.31	(22)	—
Home loan		1.26		1.23		1.18		1.13		1.16	3	10
Retail banking		0.83		0.77		0.74		0.79		0.71	6	12
Total consumer banking		0.66		0.79		0.76		0.70		0.67	(13)	(1)
Commercial banking:
Commercial and multifamily real estate		0.12		0.03		0.03		0.12		0.18	9	(6)
Commercial and industrial		2.66		1.45		1.58		1.56		0.39	121	227
Total commercial lending		1.64		0.87		0.87		0.91		0.29	77	135
Small-ticket commercial real estate		1.11		0.83		0.65		0.47		1.62	28	(51)
Total commercial banking		1.63		0.87		0.87		0.90		0.31	76	132
Total nonperforming loans		0.69		0.51		0.50		0.50		0.35	18	34
Total nonperforming assets		0.83		0.65		0.64		0.64		0.50	18	33

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 8: Financial Summary—Business Segment Results

	Three Months Ended March 31, 2016
(Dollars in millions) (unaudited)	Total		Credit Card		Consumer Banking		Commercial Banking		Other
Net interest income	$	5,056	$	3,033	$	1,420	$	537	$	66
Non-interest income	1,164		847		191		118		8
Total net revenue (loss)⁽³⁾	6,220		3,880		1,611		655		74
Provision (benefit) for credit losses	1,527		1,071		230		228		(2)
Non-interest expense	3,223		1,863		990		322		48
Income (loss) from continuing operations before income taxes	1,470		946		391		105		28
Income tax provision (benefit)	452		337		142		38		(65)
Income (loss) from continuing operations, net of tax	$	1,018	$	609	$	249	$	67	$	93

	Three Months Ended December 31, 2015
(Dollars in millions) (unaudited)	Total		Credit Card		Consumer Banking		Commercial Banking		Other
Net interest income	$	4,961	$	2,996	$	1,434	$	484	$	47
Non-interest income	1,233		902		182		142		7
Total net revenue (loss)⁽³⁾	6,194		3,898		1,616		626		54
Provision (benefit) for credit losses	1,380		1,022		240		118		—
Non-interest expense	3,480		2,021		1,057		342		60
Income (loss) from continuing operations before income taxes	1,334		855		319		166		(6)
Income tax provision (benefit)	426		302		115		60		(51)
Income (loss) from continuing operations, net of tax	$	908	$	553	$	204	$	106	$	45

	Three Months Ended March 31, 2015
(Dollars in millions) (unaudited)	Total		Credit Card		Consumer Banking		Commercial Banking		Other
Net interest income	$	4,576	$	2,666	$	1,434	$	461	$	15
Non-interest income	1,071		816		158		114		(17)
Total net revenue (loss)⁽³⁾	5,647		3,482		1,592		575		(2)
Provision (benefit) for credit losses	935		669		206		60		—
Non-interest expense	3,049		1,776		970		272		31
Income (loss) from continuing operations before income taxes	1,663		1,037		416		243		(33)
Income tax provision (benefit)	529		369		150		88		(78)
Income (loss) from continuing operations, net of tax	$	1,134	$	668	$	266	$	155	$	45

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 9: Financial & Statistical Summary—Credit Card Business

											2016 Q1 vs.
	2016		2015		2015		2015		2015		2015	2015
(Dollars in millions) (unaudited)	Q1		Q4		Q3		Q2		Q1		Q4	Q1
Credit Card⁽⁴⁾
Earnings:
Net interest income	$	3,033	$	2,996	$	2,866	$	2,633	$	2,666	1%	14%
Non-interest income	847		902		858		845		816		(6)	4
Total net revenue (loss)	3,880		3,898		3,724		3,478		3,482		—	11
Provision (benefit) for credit losses	1,071		1,022		831		895		669		5	60
Non-interest expense	1,863		2,021		1,848		1,857		1,776		(8)	5
Income (loss) from continuing operations before income taxes	946		855		1,045		726		1,037		11	(9)
Income tax provision (benefit)	337		302		375		263		369		12	(9)
Income (loss) from continuing operations, net of tax	$	609	$	553	$	670	$	463	$	668	10	(9)
Selected performance metrics:
Period-end loans held for investment	$	92,699	$	96,125	$	90,135	$	87,203	$	81,754	(4)%	13%
Average loans held for investment	92,987		91,887		88,450		83,901		82,581		1	13
Average yield on loans held for investment⁽⁵⁾	14.60%		14.45%		14.39%		13.98%		14.30%		15 bps	30 bps
Total net revenue margin⁽⁶⁾	16.69		16.97		16.84		16.58		16.87		(28)	(18)
Net charge-off rate	4.09		3.66		2.96		3.35		3.48		43	61
30+ day performing delinquency rate	3.11		3.36		3.24		2.82		2.91		(25)	20
30+ day delinquency rate	3.15		3.40		3.29		2.88		2.97		(25)	18
Nonperforming loan rate⁽¹⁾	0.05		0.06		0.07		0.08		0.08		(1)	(3)
PCCR intangible amortization	$	70	$	74	$	78	$	80	$	84	(5)%	(17)%
Purchase volume⁽⁷⁾	68,189		75,350		69,875		68,559		57,383		(10)	19

											2016 Q1 vs.
	2016		2015		2015		2015		2015		2015	2015
(Dollars in millions) (unaudited)	Q1		Q4		Q3		Q2		Q1		Q4	Q1
Domestic Card
Earnings:
Net interest income	$	2,756	$	2,718	$	2,613	$	2,395	$	2,421	1%	14%
Non-interest income	774		830		814		796		743		(7)	4
Total net revenue (loss)	3,530		3,548		3,427		3,191		3,164		(1)	12
Provision (benefit) for credit losses	972		945		796		853		610		3	59
Non-interest expense	1,671		1,796		1,630		1,621		1,580		(7)	6
Income (loss) from continuing operations before income taxes	887		807		1,001		717		974		10	(9)
Income tax provision (benefit)	323		293		362		259		353		10	(8)
Income (loss) from continuing operations, net of tax	$	564	$	514	$	639	$	458	$	621	10	(9)
Selected performance metrics:
Period-end loans held for investment	$	84,561	$	87,939	$	82,178	$	78,984	$	74,131	(4)%	14%
Average loans held for investment	85,148		83,760		80,402		75,924		74,770		2	14
Average yield on loans held for investment⁽⁵⁾	14.43%		14.31%		14.35%		13.95%		14.23%		12 bps	20 bps
Total net revenue margin⁽⁶⁾	16.58		16.95		17.05		16.81		16.93		(37)	(35)
Net charge-off rate	4.16		3.75		3.08		3.42		3.55		41	61
30+ day performing delinquency rate	3.09		3.39		3.28		2.84		2.92		(30)	17
30+ day delinquency rate	3.09		3.39		3.28		2.84		2.92		(30)	17
Purchase volume⁽⁷⁾	$	62,617	$	68,740	$	63,777	$	62,198	$	52,025	(9)%	20%
International Card⁽⁴⁾
Earnings:
Net interest income	$	277	$	278	$	253	$	238	$	245	—	13%
Non-interest income	73		72		44		49		73		1%	—
Total net revenue (loss)	350		350		297		287		318		—	10
Provision (benefit) for credit losses	99		77		35		42		59		29	68
Non-interest expense	192		225		218		236		196		(15)	(2)
Income (loss) from continuing operations before income taxes	59		48		44		9		63		23	(6)
Income tax provision (benefit)	14		9		13		4		16		56	(13)
Income (loss) from continuing operations, net of tax	$	45	$	39	$	31	$	5	$	47	15	(4)
Selected performance metrics:
Period-end loans held for investment	$	8,138	$	8,186	$	7,957	$	8,219	$	7,623	(1)%	7%
Average loans held for investment	7,839		8,127		8,048		7,977		7,811		(4)	—
Average yield on loans held for investment⁽⁵⁾	16.47%		15.96%		14.88%		14.29%		14.93%		51 bps	154 bps
Total net revenue margin⁽⁶⁾	17.85		17.21		14.77		14.36		16.31		64	154
Net charge-off rate	3.24		2.76		1.80		2.65		2.80		48	44
30+ day performing delinquency rate	3.32		2.98		2.81		2.65		2.81		34	51
30+ day delinquency rate	3.76		3.46		3.39		3.29		3.44		30	32
Nonperforming loan rate⁽¹⁾	0.59		0.65		0.77		0.83		0.84		(6)	(25)
Purchase volume⁽⁷⁾	$	5,572	$	6,610	$	6,098	$	6,361	$	5,358	(16)%	4%

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 10: Financial & Statistical Summary—Consumer Banking Business

											2016 Q1 vs.
	2016		2015		2015		2015		2015		2015	2015
(Dollars in millions) (unaudited)	Q1		Q4		Q3		Q2		Q1		Q4	Q1
Consumer Banking
Earnings:
Net interest income	$	1,420	$	1,434	$	1,443	$	1,444	$	1,434	(1)%	(1)%
Non-interest income	191		182		174		196		158		5	21
Total net revenue (loss)	1,611		1,616		1,617		1,640		1,592		—	1
Provision (benefit) for credit losses	230		240		188		185		206		(4)	12
Non-interest expense	990		1,057		1,001		998		970		(6)	2
Income (loss) from continuing operations before income taxes	391		319		428		457		416		23	(6)
Income tax provision (benefit)	142		115		155		166		150		23	(5)
Income (loss) from continuing operations, net of tax	$	249	$	204	$	273	$	291	$	266	22	(6)
Selected performance metrics:
Period-end loans held for investment	$	70,591	$	70,372	$	70,990	$	71,176	$	71,379	—	(1)%
Average loans held for investment	70,296		70,704		71,097		71,367		71,441		(1)%	(2)
Average yield on loans held for investment⁽⁵⁾	6.18%		6.25%		6.25%		6.27%		6.26%		(7) bps	(8) bps
Auto loan originations	$	5,844	$	4,977	$	5,590	$	5,433	$	5,185	17%	13%
Period-end deposits	177,803		172,702		170,866		170,321		172,502		3	3
Average deposits	174,254		171,521		170,816		171,076		169,593		2	3
Average deposit interest rate	0.54%		0.54%		0.56%		0.57%		0.57%		—	(3) bps
Core deposit intangible amortization	$	15	$	17	$	19	$	21	$	22	(12)%	(32)%
Net charge-off rate	1.04%		1.32%		1.14%		0.76%		0.89%		(28) bps	15 bps
30+ day performing delinquency rate	3.19		4.05		3.62		3.24		2.95		(86)	24
30+ day delinquency rate	3.67		4.67		4.22		3.80		3.46		(100)	21
Nonperforming loan rate⁽¹⁾	0.66		0.79		0.76		0.70		0.67		(13)	(1)
Nonperforming asset rate⁽²⁾	0.95		1.10		1.05		0.98		0.95		(15)	—

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 11: Financial & Statistical Summary—Commercial Banking Business

											2016 Q1 vs.
	2016		2015		2015		2015		2015		2015	2015
(Dollars in millions) (unaudited)	Q1		Q4		Q3		Q2		Q1		Q4	Q1
Commercial Banking
Earnings:
Net interest income	$	537	$	484	$	454	$	466	$	461	11%	16%
Non-interest income	118		142		108		123		114		(17)	4
Total net revenue (loss)⁽³⁾	655		626		562		589		575		5	14
Provision (benefit) for credit losses	228		118		75		49		60		93	280
Non-interest expense	322		342		272		270		272		(6)	18
Income (loss) from continuing operations before income taxes	105		166		215		270		243		(37)	(57)
Income tax provision (benefit)	38		60		78		98		88		(37)	(57)
Income (loss) from continuing operations, net of tax	$	67	$	106	$	137	$	172	$	155	(37)	(57)
Selected performance metrics:
Period-end loans held for investment	$	64,241	$	63,266	$	52,112	$	51,231	$	50,741	2%	27%
Average loans held for investment	63,375		57,379		51,592		50,976		51,070		10	24
Average yield on loans held for investment⁽³⁾⁽⁵⁾	3.38%		3.18%		3.21%		3.26%		3.22%		20 bps	16 bps
Period-end deposits	$	33,383	$	34,257	$	32,751	$	32,909	$	32,575	(3)%	2%
Average deposits	34,076		33,797		32,806		32,778		32,845		1	4
Average deposit interest rate	0.27%		0.26%		0.25%		0.25%		0.24%		1 bps	3 bps
Core deposit intangible amortization	$	3	$	4	$	3	$	4	$	4	(25)%	(25)%
Net charge-off rate	0.29%		0.03%		0.26%		0.05%		0.02%		26 bps	27 bps
Nonperforming loan rate⁽¹⁾⁽⁹⁾	1.63		0.87		0.87		0.90		0.31		76	132
Nonperforming asset rate⁽²⁾⁽⁹⁾	1.64		0.87		0.87		0.91		0.31		77	133
Risk category:⁽⁸⁾
Noncriticized	$	59,663	$	59,743	$	49,803	$	48,847	$	48,778	—	22%
Criticized performing	2,595		2,015		1,725		1,767		1,645		29%	58
Criticized nonperforming	1,050		550		453		463		158		91	**
PCI loans⁽⁹⁾	933		958		131		154		160		(3)	**
Total commercial loans	$	64,241	$	63,266	$	52,112	$	51,231	$	50,741	2	27
Risk category as a percentage of period-end commercial loans held for investment:⁽⁹⁾
Noncriticized	92.9%		94.4%		95.6%		95.4%		96.2%		(150) bps	(330) bps
Criticized performing	4.0		3.2		3.3		3.4		3.2		80	80
Criticized nonperforming	1.6		0.9		0.9		0.9		0.3		70	130
PCI loans	1.5		1.5		0.2		0.3		0.3		—	120
Total commercial loans	100.0%		100.0%		100.0%		100.0%		100.0%

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 12: Financial & Statistical Summary—Other and Total

											2016 Q1 vs.
	2016		2015		2015		2015		2015		2015	2015
(Dollars in millions) (unaudited)	Q1		Q4		Q3		Q2		Q1		Q4	Q1
Other
Earnings:
Net interest income (expense)	$	66	$	47	$	(3)	$	(6)	$	15	40%	**
Non-interest income	8		7		—		(29)		(17)		14	**
Total net revenue (loss)⁽³⁾	74		54		(3)		(35)		(2)		37	**
Provision (benefit) for credit losses	(2)		—		(2)		—		—		**	**
Non-interest expense⁽¹⁰⁾	48		60		39		182		31		(20)	55%
Income (loss) from continuing operations before income taxes	28		(6)		(40)		(217)		(33)		**	**
Income tax provision (benefit)	(65)		(51)		(78)		(143)		(78)		27	(17)
Income (loss) from continuing operations, net of tax	$	93	$	45	$	38	$	(74)	$	45	107	107
Selected performance metrics:
Period-end loans held for investment	$	82	$	88	$	92	$	95	$	104	(7)%	(21)%
Average loans held for investment	78		82		88		93		102		(5)	(24)
Period-end deposits	10,593		10,762		9,286		5,550		5,363		(2)	98
Average deposits	10,850		10,581		7,352		5,289		5,413		3	100
Total
Earnings:
Net interest income	$	5,056	$	4,961	$	4,760	$	4,537	$	4,576	2%	10%
Non-interest income	1,164		1,233		1,140		1,135		1,071		(6)	9
Total net revenue (loss)	6,220		6,194		5,900		5,672		5,647		—	10
Provision (benefit) for credit losses	1,527		1,380		1,092		1,129		935		11	63
Non-interest expense	3,223		3,480		3,160		3,307		3,049		(7)	6
Income (loss) from continuing operations before income taxes	1,470		1,334		1,648		1,236		1,663		10	(12)
Income tax provision (benefit)	452		426		530		384		529		6	(15)
Income (loss) from continuing operations, net of tax	$	1,018	$	908	$	1,118	$	852	$	1,134	12	(10)
Selected performance metrics:
Period-end loans held for investment	$	227,613	$	229,851	$	213,329	$	209,705	$	203,978	(1)%	12%
Average loans held for investment	226,736		220,052		211,227		206,337		205,194		3	10
Period-end deposits	221,779		217,721		212,903		208,780		210,440		2	5
Average deposits	219,180		215,899		210,974		209,143		207,851		2	5

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 13: Notes to Loan and Business Segments Disclosures (Tables 7—12)

^**	Not meaningful.

⁽¹⁾	The nonperforming loan rates are calculated based on nonperforming loans for each category divided by period-end total loans held for investment.

⁽²⁾	Nonperforming assets consist of nonperforming loans, real estate owned ("REO") and other foreclosed assets. The nonperforming asset rates are calculated based on nonperforming assets for each category divided by the combined period-end total of loans held for investment, REO and other foreclosed assets for each respective category. Calculation of nonperforming assets rates for our Consumer Banking and Commercial Banking businesses are adjusted to exclude the impact of acquired REOs.

⁽³⁾	Some of our tax-related commercial investments generate tax-exempt income or tax credits. Accordingly, we make certain reclassifications within our Commercial Banking business results to present revenues and yields on a taxable-equivalent basis, calculated assuming an effective tax rate approximately equal to our federal statutory tax rate of 35% with offsetting reclassifications to the Other category.

⁽⁴⁾	Includes a build in our U.K. PPI Reserve in Q3 2015 and Q2 2015, which impacted both revenue and non-interest expense within our International Card business.

⁽⁵⁾	Calculated based on annualized interest income for the period divided by average loans held for investment during the period for the specified loan category. Annualized interest income excludes various allocations including funds transfer pricing that assigns certain balance sheet assets, deposits and other liabilities and their related revenue and expenses attributable to each business segment.

⁽⁶⁾	Calculated based on annualized total net revenue for the period divided by average loans held for investment during the period for the specified loan category.

⁽⁷⁾	Includes credit card purchase transactions, net of returns, for loans classified as held for investment and held for sale. Excludes cash advance and balance transfer transactions.

⁽⁸⁾	Criticized exposures correspond to the "Special Mention," "Substandard" and "Doubtful" asset categories defined by bank regulatory authorities.

⁽⁹⁾	As of March 31, 2016, the loans held for investment acquired in the HFS acquisition included $825 million of PCI loans that are being accounted for under ASC 310-30 (formerly "SOP 03-3") due to their deterioration in credit quality since origination. From a managed perspective, we evaluate loans based on their actual risk ratings, and accordingly we are also including our nonperforming and criticized ratios measured on that basis. Were these PCI loans to be classified based on their risk ratings, our nonperforming loan rate and nonperforming asset rate for Commercial Banking in Q1 2016 would be 1.69% and 1.70%, respectively; our Criticized performing balance and percentage would increase to $3.3 billion and 5.17%, respectively; Criticized nonperforming balance and percentage would increase to $1.1 billion and 1.69%, respectively, with corresponding decreases to the balance and percentage of our Noncriticized category.

⁽¹⁰⁾	Includes restructuring charges for employee severance and related benefits pursuant to our ongoing benefit programs.

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 14: Reconciliation of Non-GAAP Measures and Calculation of Regulatory Capital Measures⁽¹⁾

	Basel III Standardized Approach
(Dollars in millions) (unaudited)	March 31, 2016		December 31, 2015		September 30, 2015		June 30, 2015		March 31, 2015
Regulatory Capital Metrics
Common equity Tier 1 capital	$	29,237	$	29,544	$	30,109	$	29,804	$	29,671
Tier 1 capital	32,530		32,838		33,402		32,614		31,493
Total capital⁽²⁾	38,368		38,838		37,694		37,115		35,878
Risk-weighted assets	262,220		265,739		249,081		246,106		238,011
Average assets for the leverage ratio	317,403		309,037		300,010		293,291		295,556
Capital Ratios
Common equity Tier 1 capital ratio⁽³⁾	11.1%		11.1%		12.1%		12.1%		12.5%
Tier 1 capital ratio⁽⁴⁾	12.4		12.4		13.4		13.3		13.2
Total capital ratio⁽⁵⁾	14.6		14.6		15.1		15.1		15.1
Tier 1 leverage ratio⁽⁶⁾	10.2		10.6		11.1		11.1		10.7
Tangible common equity ("TCE") ratio⁽⁷⁾	9.1		8.9		9.8		9.7		9.8

Reconciliation of Non-GAAP Measures

We report certain non-GAAP capital measures that management uses in assessing its capital adequacy. These non-GAAP measures include tangible common equity ("TCE") and tangible assets. The tables below provide the details of the calculation of our non-GAAP capital measures and regulatory capital. While our non-GAAP capital measures are widely used by investors, analysts and bank regulatory agencies to assess the capital position of financial services companies, they may not be comparable to similarly titled measures reported by other companies.

	2016		2015		2015		2015		2015
(Dollars in millions) (unaudited)	Q1		Q4		Q3		Q2		Q1
Tangible Common Equity (Period End)
Stockholders' equity	$	47,707	$	47,284	$	47,685	$	46,659	$	45,730
Goodwill and intangible assets⁽⁸⁾	(15,629)		(15,701)		(15,153)		(15,240)		(15,307)
Noncumulative perpetual preferred stock⁽⁹⁾	(3,296)		(3,294)		(3,294)		(2,810)		(1,822)
Tangible common equity	$	28,782	$	28,289	$	29,238	$	28,609	$	28,601
Tangible Common Equity (Average)
Average stockholders' equity	$	49,078	$	48,712	$	48,456	$	47,255	$	46,397
Average goodwill and intangible assets⁽⁸⁾	(15,654)		(15,316)		(15,183)		(15,256)		(15,339)
Average noncumulative perpetual preferred stock⁽⁹⁾	(3,296)		(3,294)		(3,049)		(2,377)		(1,822)
Average tangible common equity	$	30,128	$	30,102	$	30,224	$	29,622	$	29,236

	2016		2015		2015		2015		2015
(Dollars in millions) (unaudited)	Q1		Q4		Q3		Q2		Q1
Tangible Assets (Period End)
Total assets	$	330,346	$	334,048	$	313,700	$	310,510	$	306,224
Goodwill and intangible assets⁽⁸⁾	(15,629)		(15,701)		(15,153)		(15,240)		(15,307)
Tangible assets	$	314,717	$	318,347	$	298,547	$	295,270	$	290,917
Tangible Assets (Average)
Average total assets	$	331,919	$	323,354	$	313,822	$	307,206	$	309,401
Average goodwill and intangible assets⁽⁸⁾	(15,654)		(15,316)		(15,183)		(15,256)		(15,339)
Average tangible assets	$	316,265	$	308,038	$	298,639	$	291,950	$	294,062

Common Equity Tier 1 Capital Ratio Under Basel III Standardized Approach

(Dollars in millions) (unaudited)	March 31, 2016		December 31, 2015		September 30, 2015		June 30, 2015		March 31, 2015
Common equity excluding AOCI	$	44,452	$	44,606	$	44,533	$	44,246	$	44,120
Adjustments:
AOCI^(10)(11)	117		(254)		75		(128)		(26)
Goodwill⁽⁸⁾	(14,301)		(14,296)		(13,805)		(13,809)		(13,801)
Intangible assets^(8)(11)	(532)		(393)		(374)		(413)		(450)
Other	(499)		(119)		(320)		(92)		(172)
Common equity Tier 1 capital	$	29,237	$	29,544	$	30,109	$	29,804	$	29,671
Risk-weighted assets	$	262,220	$	265,739	$	249,081	$	246,106	$	238,011
Common equity Tier 1 capital ratio⁽³⁾	11.1%		11.1%		12.1%		12.1%		12.5%


__________
⁽¹⁾	Regulatory capital metrics and capital ratios as of March 31, 2016 are preliminary and therefore subject to change.
⁽²⁾	Total capital equals the sum of Tier 1 capital and Tier 2 capital.
⁽³⁾	Common equity Tier 1 capital ratio is a regulatory measure calculated based on Common equity Tier 1 capital divided by risk-weighted assets.
⁽⁴⁾	Tier 1 capital ratio is a regulatory capital measure calculated based on Tier 1 capital divided by risk-weighted assets.
⁽⁵⁾	Total capital ratio is a regulatory capital measure calculated based on Total capital divided by risk-weighted assets.
⁽⁶⁾	Tier 1 leverage ratio is a regulatory capital measure calculated based on Tier 1 capital divided by average assets, after certain adjustments.
⁽⁷⁾	TCE ratio is a non-GAAP measure calculated based on TCE divided by tangible assets.
⁽⁸⁾	Includes impact of related deferred taxes.
⁽⁹⁾	Includes related surplus.
⁽¹⁰⁾	Amounts presented are net of tax.
⁽¹¹⁾	Amounts based on transition provisions for regulatory capital deductions and adjustments of 40% for 2015 and 60% for 2016.