Capital One Reports Fourth Quarter 2011 Net Income of $407 million, or $0.88 per share

Earnings for full year 2011 were $3.1 billion, or $6.80 per share

Compared to full year 2010, earnings were up $404 million, or 15 percent

News provided by

Jan 19, 2012, 04:05 ET

MCLEAN, Va., Jan. 19, 2012 /PRNewswire/ --

Fourth quarter loan balances up 4.6 percent from third quarter and up 7.9 percent from prior year’s fourth quarter
Revenue down modestly in fourth quarter due to absence of Q3 finance charge and fee reserve release and Q4 impact of UK reserve, revenue up modestly excluding these items
Non-interest expense up, driven by increased marketing and operating expenses
Continued balance sheet strength; Tier 1 Common Equity Ratio near 10 percent

Capital One Financial Corporation (NYSE: COF) today announced net income for the fourth quarter of 2011 of $407 million, or $0.88 per diluted common share, compared with net income of $813 million, or $1.77 per diluted common share, for the third quarter of 2011, and net income of $697 million, or $1.52 per diluted common share, for the fourth quarter of 2010. For full year 2011, net income was $3.1 billion, or $6.80 per diluted common share, compared with net income of $2.7 billion, or $6.01 per diluted common share, for 2010.

"In 2011, we made significant investments to restart growth across our lending businesses after a long period of cyclical declines in loan volumes, and we're seeing these investments gain traction," said Richard D. Fairbank, Capital One's Chairman and Chief Executive Officer. "The strong underlying performance of our businesses and the compelling financial and strategic value of our planned acquisitions put us in a position to deliver and sustain shareholder value through growth potential, strong returns, and strong capital generation."

The company expects to close the acquisition of ING Direct in the first quarter and the acquisition of the HSBC US Card business in the second quarter, and expects that the acquisitions will have significant impact on reported results, especially in 2012, from the purchase accounting effects, integration expenses and partial year impacts of these acquisitions.

All comparisons in the following paragraphs are for fourth quarter 2011 compared to third quarter 2011 unless otherwise noted.

Total Company Results

Loan and Deposit Balances

Period-end loan balances increased $5.9 billion to $135.9 billion driven by growth in Domestic Card, Commercial Banking, and Auto Finance. Average loans were up by $2.5 billion, with much of the quarterly balance growth concentrated in the last few weeks of the year.

Period-end total deposits remained flat in the fourth quarter at $128.2 billion. The company expects to close the ING Direct acquisition in the first quarter of 2012 and add approximately $80 billion in deposits. The deposit volume trends in the fourth quarter of 2011 reflect the evolution in the company's deposit strategy in anticipation of the ING Direct acquisition.

Revenues

Total revenue in the fourth quarter of 2011 was $4.1 billion, down $104 million, or 2.5 percent. Revenue in the quarter was negatively impacted by the absence of the third quarter 2011 finance charge and fee reserve (FCFR) release and higher expected expense related to prior sales of payment protection insurance in the UK. In addition, non-interest income was negatively impacted by a representation and warranty expense of $38 million. Excluding the impact of these items, revenue increased about 2.5 percent in the fourth quarter, in line with average loan growth.

Margins

Net interest margin declined 17 basis points in the quarter to 7.22 percent. The margin benefited from a shift from cash to loans and a reduction in funding costs attributed to lower deposit rates. These benefits were more than offset by a decline in loan yields driven largely by one-time effects such as the absence of the FCFR release which benefited third quarter 2011 interest income.

Non-Interest Expense

Non-interest expense for the fourth quarter increased $321 million primarily due to a seasonal ramp in marketing expenses and an increase in operating expenses. The increase in operating expenses includes approximately $90 million in litigation expenses and approximately $40 million in asset write downs and other costs as the company rationalized some facilities and equipment, principally related to acquired bank businesses. Additionally, the company accelerated its build-out of 'top bank' infrastructure, especially in the second half of 2011, to ensure our readiness to execute on attractive acquisition opportunities.

Pre-Provision Income (before tax)

Pre-provision earnings decreased in the quarter as a result of the increase in non-interest expense and the reported decline in revenue.

Provision Expense

Provision expense increased $239 million in the quarter as continued improvement in the outlook for credit performance was more than offset by growth in loan balances and seasonal effects. The charge-off rate increased 17 basis points to 2.69 percent, while the coverage ratio of allowance to loans fell by 16 basis points to 3.13 percent.

Net Income

Net income in the quarter decreased $406 million reflecting the impact of increases in non-interest and provision expense.

Capital Ratios

The company's estimated Tier 1 common equity ratio decreased 30 basis points from September 30, 2011, to 9.7 percent as of December 31, 2011, driven by strong loan growth at the end of the fourth quarter. The Tier 1 common equity ratio increased 90 basis points from last year's rate of 8.8 percent at December 31, 2010. Using known Basel III definitions, our Tier 1 common equity ratio would have been approximately 10 basis points higher at December 31, 2011, or 9.8 percent.

"Significant credit improvement in 2011 led to a sizeable increase in profitability from continuing operations for 2011," said Gary L. Perlin, Capital One's Chief Financial Officer. "Over the course of the year, we generated substantial amounts of capital and expect to generate healthy amounts of capital going forward."

Tier 1 common equity ratio, as used throughout this release, is a non-GAAP financial measure. For additional information, see Table 12 in the Financial Supplement.

Business Segment Results

Credit Card Highlights

Domestic Card reported net income in the fourth quarter of 2011 of $395 million. Total revenue grew 4.7 percent in the fourth quarter of 2011 from the fourth quarter of 2010, driven by growth in loans, strong purchase volumes, and stable margins. The business posted $2.3 billion in net income in 2011, driven by significant credit improvement, the return of modest loan growth, and stable margins.

Domestic Card net charge-off rate increased 15 basis points in the quarter to 4.07 percent, consistent with expected seasonal patterns. Compared with the fourth quarter of 2010, the charge-off rate improved by 321 basis points, resulting from the significant credit improvements experienced in 2011.

Domestic Card loan balances grew $2.8 billion, or 5 percent, in the fourth quarter driven by seasonal spending and balance building on a growing account base. Growth for the year resulted largely from the addition of the Kohl's private label partnership, as well as a return to growth in the company's general purpose card business in the second half of the year. Excluding the expected installment loan run-off, Domestic Card loans grew by $4.7 billion, or 9 percent for the full year.

Purchase volume increased 9.3 percent in the quarter, reflecting continued strong growth in purchase volume across the company's Domestic Card business. Purchase volume grew 17.8 percent from the fourth quarter of 2010, excluding the impact of the Kohl's portfolio.

Commercial Banking Highlights

The Commercial Banking business delivered another quarter of solid profitability and steady loan growth, as deposits and commercial customer relationships continued to grow in the quarter, as well.

The combination of improving credit and growth in loan and deposit volumes drove 2011 net income of $532 million in the Commercial Banking business.

Ending loans were up 5.9 percent from the prior quarter and up 14.3 percent from the fourth quarter of 2010. Growth in loan commitments, an early indicator of future loan growth, was even stronger.

Commercial Banking credit metrics have stabilized and improved over the last six quarters. The charge-off rate for Commercial Banking was 0.63 percent, down 80 basis points from the same quarter last year. Excluding the run-off Small Ticket CRE portfolio, the charge-off rate in the company's core Commercial Lending businesses was 0.47 percent in the quarter, an improvement of 53 basis points from the prior year. Commercial Lending charge-offs were up 19 basis points from the third quarter, driven by a small number of impaired CRE loans related to a single troubled relationship, which the company had reserved for in prior quarters. The slower flow rate into NPL and stable property values are driving lower charge-offs.

Consumer Banking Highlights

The Consumer Banking business delivered net income of $117 million in the fourth quarter of 2011 and $809 million for full year, driven by the strong performance of the Auto Finance business and growth in deposits with improving interest expense rates.

Loan balances were up modestly as strong growth in auto loans was partially offset by expected runoff of the Home Loan portfolio. Auto Finance originations were $3.6 billion, up 5.2 percent from the third quarter and 61.8 percent from the fourth quarter of 2010.

In the Auto Finance business, net charge-off and delinquency rates increased in the quarter, consistent with expected seasonal patterns. However, charge-offs and delinquencies for the year improved 58 basis points and 70 basis points, respectively.

In the Home Loan business, the charge-off rate increased 37 basis points in the quarter but was relatively unchanged compared with the same quarter in 2010, while the delinquency rate increased modestly.

Consumer Banking deposits remained flat in the quarter but grew 6.7 percent in 2011 as the Consumer Banking segment continued to grow retail banking customer relationships.

For more lending information and statistics on the segment results, please refer to the Financial Supplement.

Forward-looking statements

The company cautions that its current expectations in this release dated January 19, 2012 and the company's plans, objectives, expectations and intentions, are forward-looking statements which speak only as of the date hereof. The company does not undertake any obligation to update or revise any of the information contained herein whether as a result of new information, future events or otherwise.

Certain statements in this release are forward-looking statements, including those that discuss, among other things, strategies, goals, outlook or other non-historical matters; projections, revenues, income, returns, expenses, capital measures, accruals for claims in litigation and for other claims against the company, earnings per share or other financial measures for the company; future financial and operating results; the company's plans, objectives, expectations and intentions; the projected impact and benefits of the pending transactions involving the company, HSBC and ING Direct (the "transactions"); and the assumptions that underlie these matters. To the extent that any such information is forward-looking, it is intended to fit within the safe harbor for forward-looking information provided by the Private Securities Litigation Reform Act of 1995. Numerous factors could cause the company's actual results to differ materially from those described in such forward-looking statements, including, among other things: general economic and business conditions in the U.S., the U.K., Canada or the company's local markets, including conditions affecting employment levels, interest rates, consumer income and confidence, spending and savings that may affect consumer bankruptcies, defaults, charge-offs and deposit activity; an increase or decrease in credit losses (including increases due to a worsening of general economic conditions in the credit environment); the possibility that regulatory and other approvals and conditions to either of the transactions are not obtained or satisfied on a timely basis or at all; the possibility that modifications to the terms of either of the transactions may be required in order to obtain or satisfy such approvals or conditions; the possibility that the company will not receive third-party consents necessary to fully realize the anticipated benefits of the transactions; the possibility that the company may not fully realize the projected cost savings and other projected benefits of the transactions; changes in the anticipated timing for closing either of the transactions; difficulties and delays in integrating the assets and businesses acquired in the transactions; business disruption during the pendency of or following the transactions; the inability to sustain revenue and earnings growth; diversion of management time on issues related to the transactions; reputational risks and the reaction of customers and counterparties to the transactions; disruptions relating to the transactions negatively impacting the company's ability to maintain relationships with customers, employees and suppliers; changes in asset quality and credit risk as a result of the transactions; financial, legal, regulatory, tax or accounting changes or actions, including the impact of the Dodd-Frank Wall Street Reform and Consumer Protection Act and the regulations promulgated thereunder; developments, changes or actions relating to any litigation matter involving the company; increases or decreases in interest rates; the company's ability to access the capital markets at attractive rates and terms to capitalize and fund its operations and future growth; the success of the company's marketing efforts in attracting and retaining customers; increases or decreases in the company's aggregate loan balances or the number of customers and the growth rate and composition thereof, including increases or decreases resulting from factors such as shifting product mix, amount of actual marketing expenses the company incurs and attrition of loan balances; the level of future repurchase or indemnification requests the company may receive, the actual future performance of mortgage loans relating to such requests, the success rates of claimants against the company, any developments in litigation and the actual recoveries the company may make on any collateral relating to claims against the company; the amount and rate of deposit growth; changes in the reputation of or expectations regarding the financial services industry or the company with respect to practices, products or financial condition; any significant disruption in the company's operations or technology platform; the company's ability to maintain a compliance infrastructure suitable for its size and complexity; the company's ability to control costs; the amount of, and rate of growth in, the company's expenses as its business develops or changes or as it expands into new market areas; the company's ability to execute on its strategic and operational plans; any significant disruption of, or loss of public confidence in, the United States Mail service affecting the company's response rates and consumer payments; the company's ability to recruit and retain experienced personnel to assist in the management and operations of new products and services; changes in the labor and employment markets; fraud or misconduct by the company's customers, employees or business partners; competition from providers of products and services that compete with the company's businesses; and other risk factors set forth from time to time in reports that the company 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, 2010, and Exhibit 99.5 to the Current Report on Form 8-K filed on July 13, 2011.

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 $128.2 billion in deposits and $206.0 billion in total assets outstanding as of December 31, 2011. Headquartered in McLean, Virginia, Capital One offers a broad spectrum of financial products and services to consumers, small businesses and commercial clients. Capital One, N.A. has approximately 1,000 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 Fourth Quarter 2011 (1) Table of Contents

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



(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 2011 Annual Report on Form 10-K once it is filed with the Securities and Exchange Commission.


CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 1: Financial & Statistical Summary—Consolidated (1)

	2011		2011		2011
(Dollars in millions, except per share data and as noted) (unaudited)	Q4		Q3		Q2
Earnings
Net interest income	$ 3,182		$ 3,283		$ 3,136
Non-interest income (2) (3)	868		871		857
Total revenue (4)	$ 4,050		$ 4,154		$ 3,993
Provision for loan and lease losses	861		622		343
Marketing expenses	420		312		329
Operating expenses (5)	2,198		1,985		1,926
Income from continuing operations before income taxes	$ 571		$ 1,235		$ 1,395
Income tax provision	160		370		450
Income from continuing operations, net of tax	411		865		945
Loss from discontinued operations, net of tax (3)	(4)		(52)		(34)
Net income	$ 407		$ 813		$ 911

Common Share Statistics
Basic EPS:
Income from continuing operations, net of tax	$ 0.89		$ 1.89		$ 2.07
Loss from discontinued operations, net of tax	(0.01)		(0.11)		(0.07)
Net income per common share	$ 0.88		$ 1.78		$ 2.00
Diluted EPS:
Income from continuing operations, net of tax	$ 0.89		$ 1.88		$ 2.04
Loss from discontinued operations, net of tax	(0.01)		(0.11)		(0.07)
Net income per common share	$ 0.88		$ 1.77		$ 1.97
Weighted average common shares outstanding (in millions):
Basic EPS	456.2		456.0		455.6
Diluted EPS	458.5		460.4		462.2
Common shares outstanding (period end)	456.4		456.1		455.8
Dividends per common share	$ 0.05		$ 0.05		$ 0.05
Tangible book value per common share (period end) (6)	34.26		33.82		32.20
Stock price per common share (period end)	42.29		39.63		51.67
Total market capitalization (period end)	19,301		18,075		23,551

Balance Sheet (Period End)
Loans held for investment(7)	$ 135,892		$ 129,952		$ 128,965
Interest-earning assets	179,817		174,308		174,302
Total assets	206,019		200,148		199,753
Tangible assets (8)	191,806		185,891		185,715
Interest-bearing deposits	109,945		110,777		109,278
Total deposits	128,226		128,318		126,117
Borrowings	39,561		34,315		37,735
Stockholders' equity	29,666		29,378		28,681
Tangible common equity (TCE) (9)	15,758		15,425		14,675

Balance Sheet (Quarterly Average Balances)
Average loans held for investment (7)	$ 131,581		$ 129,043		$ 127,916
Average interest-earning assets	176,267		177,710		174,143
Average total assets	200,106		201,611		199,229
Average interest-bearing deposits	109,914		110,750		109,251
Average total deposits	128,450		128,268		125,834
Average borrowings	34,812		37,366		39,451
Average stockholders' equity	29,698		29,316		28,255

Performance Metrics
Net interest income growth (quarter over quarter)	(3)	%	5	%	-	%
Non-interest income growth(quarter over quarter)	-		2		(9)
Revenue growth(quarter over quarter)	(3)		4		(2)
Revenue margin (10)	9.19		9.35		9.17
Net interest margin (11)	7.22		7.39		7.20
Return on average assets (12)	0.82		1.72		1.90
Return on average equity (13)	5.54		11.80		13.38
Return on average tangible common equity (14)	10.43		22.58		26.57
Non-interest expense as a % of average loans held for investment (15)	7.96		7.12		7.05
Efficiency ratio (16)	64.64		55.30		56.47
Effective income tax rate	28.0		30.0		32.3
Full-time equivalent employees (in thousands)	30.5		29.5		28.2

Credit Quality Metrics (17)
Allowance for loan and lease losses	$ 4,250		$ 4,280		$ 4,488
Allowance as a % of loans held for investment	3.13	%	3.29	%	3.48	%
Net charge-offs	$ 884		$ 812		$ 931
Net charge-off rate (18) (19)	2.69	%	2.52	%	2.91	%
30+ day performing delinquency rate	3.35		3.13		2.90
30+ day total delinquency rate (20)	-		3.81		3.57

Capital Ratios
Tier 1 risk-based capital ratio (21)	12.0	%	12.4	%	11.8	%
Tier 1 common equity ratio (22)	9.7		10.0		9.4
Total risk-based capital ratio (23)	14.9		15.4		15.0
Tangible common equity (TCE) ratio (24)	8.2		8.3		7.9


CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 2: Notes to Consolidated Financial & Statistical Summary (Table 1)

(1)	Certain prior period amounts have been reclassified to conform to the current period presentation.

(2)	Includes the impact from the change in fair value of retained interests, including interest-only strips, which totaled $11 million in Q4 2011, $12 million in Q3 2011, and $16 million in Q2 2011.

(3)	The mortgage representation and warranty reserve increased to $943 million as of December 31, 2011, from $892 million as of September 30, 2011. We recorded a provision for repurchase losses of $59 million in Q4 2011, $72 million in Q3 2011, and $37 million in Q2 2011. The majority of the provision for repurchase losses is generally included in discontinued operations, with the remaining portion included in non-interest income.

(4)	The estimated uncollectible amount of billed finance charges and fees excluded from revenue totaled $130 million in Q4 2011, $24 million in Q3 2011, and $112 million in Q2 2011. As further discussed in our September 30, 2011 Form 10-Q, in the third quarter of 2011 we revised the manner in which we estimate expected recoveries of finance charge and fee amounts previously considered to be uncollectible. The result of this revision was a reduction of the uncollectible finance charge and fee reserves by approximately $83 million as of September 30, 2011, which resulted in a corresponding increase in revenues of $83 million in Q3 2011.

(5)	Includes core deposit intangible amortization expense of $40 million in Q4 2011, $42 million in Q3 2011, and $44 million in Q2 2011. Also includes integration costs of $17 million in Q4 2011, $1 million in Q3 2011, and $0 million in Q2 2011.

(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 12: Reconciliation of Non-GAAP Measures and Calculation of Regulatory Capital Measures" for the calculation of tangible common equity.

(7)	Results reflect the impact of the April 1, 2011 acquisition of the existing private-label credit card loan portfolio of Kohl's Department Stores ("Kohl's"), which had an outstanding principal and interest balance of approximately $3.7 billion at acquisition.

(8)	Tangible assets is a non-GAAP measure consisting of total assets less assets from discontinued operations and intangible assets. See "Table 12: Reconciliation of Non-GAAP Measures and Calculation of Regulatory Capital Measures" for the calculation of this measure.

(9)	Tangible common equity is a non-GAAP measure consisting of total stockholders' equity less intangible assets. See "Table 12: Reconciliation of Non-GAAP Measures and Calculation of Regulatory Capital Measures" for the calculation of this measure.

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

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

(12)	Calculated based on annualized income from continuing operations, net of tax, for the period divided by average total assets for the period.

(13)	Calculated based on annualized income from continuing operations, net of tax, for the period divided by average stockholders' equity for the period.

(14)	Calculated based on annualized income from continuing operations, net of tax, for the period divided by average tangible common equity for the period.

(15)	Calculated based on annualized non-interest expense for the period divided by average loans held for investment for the period.

(16)	Calculated based on non-interest expense for the period divided by total revenue for the period.

(17)	Purchased credit impaired ("PCI") loans acquired as part of the Chevy Chase Bank ("CCB") acquisition are included in the denominator used in calculating the credit quality metrics presented in Table 1. These metrics excluding the impact of loans acquired from CCB from the denominator are presented below:

		2011		2011		2011
	(Dollars in millions) (unaudited)	Q4		Q3		Q2
	CCB period-end acquired loan portfolio	$ 4,689		$ 4,873		$ 5,181
	CCB average acquired loan portfolio	4,781		4,998		5,112
	Allowance as a % of loans held for investment, excluding CCB loans	3.22	%	3.40	%	3.62	%
	Net charge-off rate, excluding CCB loans	2.79		2.62		3.03
	30+ day performing delinquency rate, excluding CCB loans	3.47		3.25		3.02

(18)	In accordance with our loss-sharing agreement with Kohl's, charge-offs for the portfolio are reported net of any reimbursement of credit losses from Kohl's, which has the impact of lowering the overall charge-off rate.

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

(20)	The 30+ day total delinquency rate as of the end of Q4 2011 will be provided in the 2011 Annual Report on Form 10-K.

(21)	Tier 1 risk-based capital ratio is a regulatory capital measure calculated based on Tier 1 capital divided by risk-weighted assets. See "Table 12: Reconciliation of Non-GAAP Measures and Calculation of Regulatory Capital Measures" for the calculation of this ratio.

(22)	Tier 1 common equity ratio is a non-GAAP measure calculated based on Tier 1 common equity divided by risk-weighted assets. See "Table 12: Reconciliation of Non-GAAP Measures and Calculation of Regulatory Capital Measures" for the calculation of this ratio and non-GAAP reconciliation.
.
(23)	Total risk-based capital ratio is a regulatory capital measure calculated based on total risk-based capital divided by risk-weighted assets. See "Table 12: Reconciliation of Non-GAAP Measures and Calculation of Regulatory Capital Measures" for the calculation of this ratio.

(24)	Tangible common equity ratio ("TCE ratio") is a non-GAAP measure calculated based on tangible common equity divided by tangible assets. See "Table 12: Reconciliation of Non-GAAP Measures and Calculation of Regulatory Capital Measures" for the calculation of this ratio and non-GAAP reconciliation.


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

					Year Ended
		2011 Q4	2011 Q3	2010 Q4	December 31, 2011	December 31, 2010
(Dollars in millions, except per share data) (unaudited)		2011 Q4	2011 Q3	2010 Q4	December 31, 2011	December 31, 2010

Interest income:
Loans held for investment, including past-due fees		$ 3,440	$ 3,550	$ 3,352	$ 13,774	$ 13,934
Investment securities		244	264	305	1,137	1,342
Cash equivalents and other		17	21	17	76	77
	Total interest income	3,701	3,835	3,674	14,987	15,353

Interest expense:
Deposits		264	294	340	1,187	1,465
Securitized debt obligations		80	89	165	422	809
Senior and subordinated notes		89	84	65	300	276
Other borrowings		86	85	81	337	346
	Total interest expense	519	552	651	2,246	2,896

Net interest income		3,182	3,283	3,023	12,741	12,457
Provision for loan and lease losses		861	622	838	2,360	3,907
Net interest income after provision for loan and lease losses		2,321	2,661	2,185	10,381	8,550

Non-interest income:
Servicing and securitizations		9	12	10	44	7
Service charges and other customer-related fees		452	542	496	1,979	2,073
Interchange fees, net		346	321	349	1,318	1,340
Net other-than-temporary impairment losses recognized in earnings		(6)	(6)	(3)	(21)	(65)
Other		67	2	87	218	359
	Total non-interest income	868	871	939	3,538	3,714

Non-interest expense:
Salaries and associate benefits		817	750	657	3,023	2,594
Marketing		420	312	308	1,337	958
Communications and data processing		177	178	181	681	693
Supplies and equipment		137	143	139	539	520
Occupancy		131	122	115	490	486
Other		936	792	691	3,262	2,683
	Total non-interest expense	2,618	2,297	2,091	9,332	7,934
Income from continuing operations before income taxes		571	1,235	1,033	4,587	4,330
Income tax provision		160	370	332	1,334	1,280
Income from continuing operations, net of tax		411	865	701	3,253	3,050
Loss from discontinued operations, net of tax		(4)	(52)	(4)	(106)	(307)
Net income		$ 407	$ 813	$ 697	$ 3,147	$ 2,743

Basic earnings per common share:
Income from continuing operations		$ 0.89	$ 1.89	$ 1.55	$ 7.08	$ 6.74
Loss from discontinued operations		(0.01)	(0.11)	(0.01)	(0.23)	(0.67)
Net income per basic common share		$ 0.88	$ 1.78	$ 1.54	$ 6.85	$ 6.07

Diluted earnings per common share:
Income from continuing operations		$ 0.89	$ 1.88	$ 1.53	$ 7.03	$ 6.68
Loss from discontinued operations		(0.01)	(0.11)	(0.01)	(0.23)	(0.67)
Net income per diluted common share		$ 0.88	$ 1.77	$ 1.52	$ 6.80	$ 6.01

Weighted average common shares outstanding (in millions):
Basic EPS		456.2	456.0	452.7	455.5	452.1
Diluted EPS		458.5	460.4	457.2	459.1	456.4

Dividends paid per common share		$ 0.05	$ 0.05	$ 0.05	$ 0.20	$ 0.20


CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 4: Consolidated Balance Sheets


		December 31,	September 30,	December 31,
(Dollars in millions)(unaudited)		2011	2011	2010

Assets:
Cash and due from banks		$ 2,097	$ 1,794	$ 2,067
Interest-bearing deposits with banks		3,399	3,238	2,776
Federal funds sold and securities purchased under agreements to resell		342	1,326	406
	Cash and cash equivalents	5,838	6,358	5,249
Restricted cash for securitization investors		791	984	1,602
Securities available for sale, at fair value		38,759	38,400	41,537
Loans held for investment:
	Unsecuritized loans held for investment, at amortized cost	88,242	83,010	71,921
	Restricted loans for securitization investors	47,650	46,942	54,026
	Total loans held for investment	135,892	129,952	125,947
	Less: Allowance for loan and lease losses	(4,250)	(4,280)	(5,628)
	Net loans held for investment	131,642	125,672	120,319
Loans held for sale, at lower-of-cost-or-fair-value		201	312	228
Accounts receivable from securitizations		94	101	118
Premises and equipment, net		2,748	2,785	2,749
Interest receivable		1,029	958	1,070
Goodwill		13,592	13,593	13,591
Other		11,325	10,985	11,040
	Total assets	$ 206,019	$ 200,148	$ 197,503


Liabilities:
Interest payable		$ 466	$ 401	$ 488
Customer deposits:
	Non-interest bearing deposits	18,281	17,541	15,048
	Interest-bearing deposits	109,945	110,777	107,162
	Total customer deposits	128,226	128,318	122,210
Securitized debt obligations		16,527	17,120	26,915
Other debt:
	Federal funds purchased and securities loaned or sold under agreements to repurchase	1,464	1,441	1,517
	Senior and subordinated notes	11,034	11,051	8,650
	Other borrowings	10,536	4,703	4,714
	Total other debt	23,034	17,195	14,881
Other liabilities		8,100	7,736	6,468
	Total liabilities	176,353	170,770	170,962

Stockholders' equity:
Common stock		5	5	5
Paid-in capital, net		19,274	19,234	19,084
Retained earnings and accumulated other comprehensive income		13,631	13,382	10,654
Less: Treasury stock, at cost		(3,244)	(3,243)	(3,202)
	Total stockholders' equity	29,666	29,378	26,541
	Total liabilities and stockholders' equity	$ 206,019	$ 200,148	$ 197,503

CAPITAL ONE FINANCIAL CORPORATION (COF) Table 5: Average Balances, Net Interest Income and Net Interest Margin


			2011 Q4				2011 Q3				2010 Q4
			Average	Interest Income/	Yield/		Average	Interest Income/	Yield/		Average	Interest Income/	Yield/
(Dollars in millions)(unaudited)			Balance	Expense	Rate		Balance	Expense	Rate		Balance	Expense	Rate
Interest-earning assets:
	Loans held for investment		$ 131,581	$ 3,440	10.46	%	$ 129,043	$ 3,550	11.00	%	$ 125,441	$ 3,352	10.69	%
	Investment securities		39,005	244	2.50		37,189	264	2.84		41,004	305	2.98
	Cash equivalents and other		5,681	17	1.20		11,478	21	0.73		7,547	17	0.90
Total interest-earning assets			$ 176,267	$ 3,701	8.40	%	$ 177,710	$ 3,835	8.63	%	$ 173,992	$ 3,674	8.45	%

Interest-bearing liabilities:
	Interest-bearing deposits
		NOW accounts	$ 13,700	$ 12	0.35	%	$ 12,602	$ 9	0.29	%	$ 12,918	$ 8	0.25	%
		Money market deposit accounts	47,167	87	0.74		47,483	100	0.84		43,822	110	1.00
		Savings accounts	31,422	47	0.60		30,944	56	0.72		25,121	54	0.86
		Other consumer time deposits	12,264	77	2.51		13,530	84	2.48		16,941	112	2.64
		Public fund CD's of $100,000 or more	84	1	4.76		92	1	4.35		204	1	1.96
		CD's of $100,000 or more	4,748	39	3.29		5,407	43	3.18		6,696	54	3.23
		Foreign time deposits	529	1	0.76		692	1	0.58		895	1	0.45
	Total interest-bearing deposits		$ 109,914	$ 264	0.96	%	$ 110,750	$ 294	1.06	%	$ 106,597	$ 340	1.28	%
	Securitized debt obligations		16,780	80	1.91		18,478	89	1.93		27,708	165	2.38
	Senior and subordinated notes		10,237	89	3.48		10,519	84	3.19		8,096	65	3.21
	Other borrowings		7,794	86	4.41		8,369	85	4.06		6,624	81	4.89
Total interest-bearing liabilities			$ 144,725	$ 519	1.43	%	$ 148,116	$ 552	1.49	%	$ 149,025	$ 651	1.75	%

Net interest income/spread				$ 3,182	6.97	%		$ 3,283	7.14	%		$ 3,023	6.70	%

Impact of non-interest bearing funding					0.25	%			0.25	%			0.25	%
Net interest margin					7.22	%			7.39	%			6.95	%


CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 6: Loan Information and Performance Statistics (1)

	2011		2011		2011
(Dollars in millions)(unaudited)	Q4		Q3		Q2
Period-end loans held for investment
Credit card:
Domestic credit card (2)	$ 56,609		$ 53,820		$ 53,994
International credit card	8,466		8,210		8,711
Total credit card	65,075		62,030		62,705
Consumer banking:
Automobile	21,779		20,422		19,223
Home loan	10,433		10,916		11,323
Retail banking	4,103		4,014		4,046
Total consumer banking	36,315		35,352		34,592
Commercial banking:
Commercial and multifamily real estate	15,410		14,389		14,035
Middle market	12,684		11,924		11,404
Specialty lending	4,404		4,221		4,122
Total commercial lending	32,498		30,534		29,561
Small-ticket commercial real estate	1,503		1,571		1,642
Total commercial banking	34,001		32,105		31,203
Other loans(3)	501		465		465
Total	$ 135,892		$ 129,952		$ 128,965

Average loans held for investment
Credit card:
Domestic credit card (2)	$ 54,403		$ 53,668		$ 53,868
International credit card	8,361		8,703		8,823
Total credit card	62,764		62,371		62,691
Consumer banking:
Automobile	21,101		19,757		18,753
Home loan	10,683		11,126		11,534
Retail banking	4,007		3,979		4,154
Total consumer banking	35,791		34,862		34,441
Commercial banking:
Commercial and multifamily real estate	14,628		14,021		13,597
Middle market	12,068		11,572		10,979
Specialty lending	4,308		4,154		4,014
Total commercial lending	31,004		29,747		28,590
Small-ticket commercial real estate	1,547		1,598		1,726
Total commercial banking	32,551		31,345		30,316
Other loans (3)	475		465		468
Total	$ 131,581		$ 129,043		$ 127,916

Net charge-off rates
Credit card:
Domestic credit card (4)	4.07	%	3.92	%	4.74	%
International credit card	5.77		6.15		7.02
Total credit card	4.30	%	4.23	%	5.06	%
Consumer banking:
Automobile	2.07	%	1.69	%	1.11	%
Home loan (5)	0.90		0.53		0.60
Retail banking (5)	1.44		1.67		1.73
Total consumer banking (5)	1.65	%	1.32	%	1.01	%
Commercial banking:
Commercial and multifamily real estate (5)	0.76	%	0.12	%	0.39	%
Middle market⁽⁵⁾	0.20		0.41		0.13
Specialty lending	0.24		0.44		0.47
Total commercial lending (5)	0.47	%	0.28	%	0.30	%
Small-ticket commercial real estate	3.73		2.19		3.77
Total commercial banking (5)	0.63	%	0.37	%	0.50	%
Other loans	9.29	%	6.38	%	10.57	%
Total	2.69	%	2.52	%	2.91	%

30+ day performing delinquency rates
Credit card:
Domestic credit card	3.66	%	3.65	%	3.33	%
International credit card	5.18		5.35		5.30
Total credit card	3.86	%	3.87	%	3.60	%
Consumer banking:
Automobile	6.88	%	6.34	%	6.09	%
Home loan (5)	0.89		0.78		0.70
Retail banking (5)	0.83		0.89		0.76
Total consumer banking (5)	4.47	%	4.01	%	3.70	%

Nonperforming asset rates (6) (7)
Consumer banking:
Automobile	0.58	%	0.53	%	0.49	%
Home loan (5)	4.58		4.74		4.40
Retail banking (5)	2.50		2.37		2.45
Total consumer banking (5)	1.94	%	2.04	%	2.00	%
Commercial banking:
Commercial and multifamily real estate (5)	1.43	%	2.16	%	2.35	%
Middle market(5)	0.82		1.04		1.19
Specialty lending	0.75		0.87		0.95
Total commercial lending (5)	1.10	%	1.54	%	1.71	%
Small-ticket commercial real estate	2.86		1.58		0.75
Total commercial banking (5)	1.17	%	1.55	%	1.66	%


CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 7: Financial & Statistical Summary -- Credit Card Business

	2011		2011		2011
(Dollars in millions) (unaudited)	Q4		Q3		Q2
Credit Card
Earnings:
Interest income	$ 2,253		$ 2,354		$ 2,209
Interest expense	304		312		319
Net interest income	1,949		2,042		1,890
Non-interest income	638		678		619
Total revenue	2,587		2,720		2,509
Provision for loan and lease losses	600		511		309
Non-interest expense	1,431		1,188		1,238
Income from continuing operations before taxes	556		1,021		962
Income tax provision	203		358		344
Income from continuing operations, net of tax	$ 353		$ 663		$ 618

Selected metrics:
Period-end loans held for investment	$ 65,075		$ 62,030		$ 62,705
Average loans held for investment	62,764		62,371		62,691
Average yield on loans held for investment	14.12	%	14.84	%	13.83	%
Revenue margin	16.49		17.44		16.01
Net charge-off rate	4.30		4.23		5.06
30+ day total delinquency rate (8)	3.86		3.87		3.60
Purchase volume (9)	$ 38,179		$ 34,918		$ 34,226

Domestic Card
Earnings:
Interest income	$ 1,940		$ 1,992		$ 1,852
Interest expense	234		239		245
Net interest income	1,706		1,753		1,607
Non-interest income	613		588		584
Total revenue	2,319		2,341		2,191
Provision for loan and lease losses	519		381		187
Non-interest expense	1,183		972		1,008
Income from continuing operations before taxes	617		988		996
Income tax provision	222		351		354
Income from continuing operations, net of tax	$ 395		$ 637		$ 642

Selected metrics:
Period-end loans held for investment	$ 56,609		$ 53,820		$ 53,994
Average loans held for investment	54,403		53,668		53,868
Average yield on loans held for investment	14.05	%	14.62	%	13.52	%
Revenue margin	17.05		17.45		16.27
Net charge-off rate (4)	4.07		3.92		4.74
30+ day total delinquency rate (8)	3.66		3.65		3.33
Purchase volume (9)	$ 34,586		$ 31,686		$ 31,070

International Card
Earnings:
Interest income	$ 313		$ 362		$ 357
Interest expense	70		73		74
Net interest income	243		289		283
Non-interest income	25		90		35
Total revenue	268		379		318
Provision for loan and lease losses	81		130		122
Non-interest expense	248		216		230
Income (loss) from continuing operations before taxes	(61)		33		(34)
Income tax provision (benefit)	(19)		7		(10)
Income (loss) from continuing operations, net of tax	$ (42)		$ 26		$ (24)

Selected metrics:
Period-end loans held for investment	$ 8,466		$ 8,210		$ 8,711
Average loans held for investment	8,361		8,703		8,823
Average yield on loans held for investment	14.57	%	16.24	%	15.77	%
Revenue margin	12.82		17.42		14.42
Net charge-off rate	5.77		6.15		7.02
30+ day total delinquency rate (8)	5.18		5.35		5.30
Purchase volume (9)	$ 3,593		$ 3,232		$ 3,156


CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 8: Financial & Statistical Summary -- Consumer Banking Business

		2011		2011		2011
(Dollars in millions) (unaudited)		Q4		Q3		Q2
Consumer Banking
Earnings:
	Interest income	$ 1,521		$ 1,546		$ 1,517
	Interest expense	416		449		466
	Net interest income	1,105		1,097		1,051
	Non-interest income	152		188		194
	Total revenue	1,257		1,285		1,245
	Provision for loan and lease losses	180		136		41
	Non-interest expense	893		853		758
	Income from continuing operations before taxes	184		296		446
	Income tax provision	67		106		159
	Income from continuing operations, net of tax	$ 117		$ 190		$ 287

Selected metrics:
	Period-end loans held for investment	$ 36,315		$ 35,352		$ 34,592
	Average loans held for investment	35,791		34,862		34,441
	Average yield on loans held for investment	9.46	%	9.83	%	9.51	%
	Auto loan originations	$ 3,586		$ 3,409		$ 2,910
	Period-end deposits	88,540		88,589		87,282
	Average deposits	88,390		88,266		86,926
	Deposit interest expense rate	0.84	%	0.95	%	1.00	%
	Core deposit intangible amortization	$ 31		$ 32		$ 34
	Net charge-off rate (5)	1.65	%	1.32	%	1.01	%
	Nonperforming loans as a percentage of loans held for investment (5) (6)	1.79		1.88		1.83
	Nonperforming asset rate (5) (6)	1.94		2.04		2.00
	30+ day performing delinquency rate (5) (6)	4.47		4.01		3.70
	Period-end loans serviced for others	$ 17,998		$ 18,624		$ 19,226


CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 9: Financial & Statistical Summary -- Commercial Banking Business

		2011		2011		2011
(Dollars in millions) (unaudited)		Q4		Q3		Q2
Commercial Banking
Earnings:
	Interest income	$ 547		$ 533		$ 523
	Interest expense	177		180		190
	Net interest income	370		353		333
	Non-interest income	75		62		62
	Total revenue	445		415		395
	Provision for loan and lease losses	74		(10)		(18)
	Non-interest expense	220		200		192
	Income from continuing operations before taxes	151		225		221
	Income tax provision	54		80		79
	Income from continuing operations, net of tax	$ 97		$ 145		$ 142

Selected metrics:
	Period-end loans held for investment	$ 34,001		$ 32,105		$ 31,203
	Average loans held for investment	32,551		31,345		30,316
	Average yield on loans held for investment	4.68	%	4.69	%	4.74	%
	Period-end deposits	$ 26,532		$ 25,282		$ 24,304
	Average deposits	26,034		25,227		24,282
	Deposit interest expense rate	0.42	%	0.48	%	0.52	%
	Core deposit intangible amortization	$ 9		$ 10		$ 10
	Net charge-off rate (5)	0.63	%	0.37	%	0.50	%
	Nonperforming loans as a percentage of loans held for investment (5)	1.09		1.43		1.54
	Nonperforming asset rate (5)	1.17		1.55		1.66

Risk category: (10)
	Noncriticized	$ 31,306		$ 29,374		$ 28,459
	Criticized performing	1,843		1,781		1,765
	Criticized nonperforming	371		459		481
	Total non-PCI loans	33,520		31,614		30,705
	Total PCI loans	481		491		498
	Total	$ 34,001		$ 32,105		$ 31,203

	% of period-end held for investment commercial loans:
	Noncriticized	92.07	%	91.49	%	91.21	%
	Criticized performing	5.42		5.55		5.66
	Criticized nonperforming	1.09		1.43		1.54
	Total non-PCI loans	98.59		98.47		98.40
	Total PCI loans	1.41		1.53		1.60
	Total	100.00	%	100.00	%	100.00	%


CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 10: Financial & Statistical Summary -- Other and Total

		2011	2011	2011
(Dollars in millions) (unaudited)		Q4	Q3	Q2
Other
Earnings:
	Interest income	$ (620)	$ (598)	$ (550)
	Interest expense	(378)	(389)	(412)
	Net interest expense	(242)	(209)	(138)
	Non-interest income (expense)	3	(57)	(18)
	Total revenue	(239)	(266)	(156)
	Provision for loan and lease losses	7	(15)	11
	Non-interest expense	74	56	67
	Loss from continuing operations before taxes	(320)	(307)	(234)
	Income tax benefit	(164)	(174)	(132)
	Income (loss) from continuing operations, net of tax	$ (156)	$ (133)	$ (102)

Selected metrics:
	Period-end loans held for investment (4)	$ 501	$ 465	$ 465
	Average loans held for investment (4)	475	465	468
	Period-end deposits	13,154	14,447	14,531
	Average deposits	14,026	14,775	14,626

Total
Earnings:
	Interest income	$ 3,701	$ 3,835	$ 3,699
	Interest expense	519	552	563
	Net interest income	3,182	3,283	3,136
	Non-interest income	868	871	857
	Total revenue	4,050	4,154	3,993
	Provision for loan and lease losses	861	622	343
	Non-interest expense	2,618	2,297	2,255
	Income from continuing operations before taxes	571	1,235	1,395
	Income tax provision	160	370	450
	Income from continuing operations, net of tax	$ 411	$ 865	$ 945

Selected metrics:
	Period-end loans held for investment	$ 135,892	$ 129,952	$ 128,965
	Average loans held for investment	131,581	129,043	127,916
	Period-end deposits	128,226	128,318	126,117
	Average deposits	128,450	128,268	125,834


CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 11: Notes to Loan and Business Segment Disclosures (Tables 6 — 10)

(1)	Certain prior period amounts have been reclassified to conform to the current period presentation.

(2)	Results reflect the impact of the April 1, 2011 acquisition of the existing private-label credit card loan portfolio of Kohl's, which had an outstanding principal and interest balance of approximately $3.7 billion at acquisition.

(3)	Other loans held for investment includes unamortized premiums and discounts on loans acquired as part of the North Fork and Hibernia acquisitions.

(4)	In accordance with our loss-sharing agreement with Kohl's, charge-offs for the portfolio are reported net of any reimbursement of credit losses from Kohl's, which has the impact of lowering the overall Domestic Card charge-off rate.

(5)	PCI loans acquired as part of the CCB acquisition are included in the denominator used in calculating the credit quality ratios presented in Tables 6-10. These metrics excluding the impact of loans acquired from CCB from the denominator are presented below:

		2011		2011		2011
	(Dollars in millions) (unaudited)	Q4		Q3		Q2
	CCB period end acquired loan portfolio	$ 4,689		$ 4,873		$ 5,181
	CCB average acquired loan portfolio	4,781		4,998		5,112

	Net charge-off rates:
	Consumer banking:
	Home loan	1.48	%	0.87	%	0.98	%
	Retail banking	1.46		1.69		1.76
	Total consumer banking	1.87	%	1.51	%	1.17	%

	Commercial banking:
	Commercial and multifamily real estate	0.77	%	0.12	%	0.40	%
	Middle market	0.21		0.42		0.13
	Total commercial lending	0.48		0.28		0.31
	Total commercial banking	0.64	%	0.38	%	0.51	%

	30+ day performing delinquency rates:
	Consumer banking:
	Home loan	1.47	%	1.28	%	1.18	%
	Retail banking	0.84		0.90		0.77
	Total consumer banking	5.06	%	4.57	%	4.29	%

	Nonperforming asset rates:
	Consumer banking:
	Home loan	7.55	%	7.80	%	7.38	%
	Retail banking	2.52		2.40		2.48
	Total consumer banking	2.20	%	2.33	%	2.32	%

	Commercial banking:
	Commercial and multifamily real estate	1.44	%	2.18	%	2.39	%
	Middle market	0.84		1.07		1.22
	Total commercial lending	1.11		1.57		1.73
	Total commercial banking	1.19	%	1.57	%	1.68	%

	Nonperforming loans as a percentage of period-end loans held for investment:
	Consumer banking	2.03	%	2.15	%	2.12	%
	Commercial banking	1.11		1.45		1.56

(6)	Nonperforming assets consist of nonperforming loans and real estate owned ("REO") and foreclosed assets. The nonperforming asset ratios are calculated based on nonperforming assets for each category divided by the combined period-end total of loans held for investment, REO and foreclosed assets for each respective category.

(7)	As permitted by regulatory guidance, our policy is generally to exempt delinquent credit card loans from being classified as nonperforming. We continue to accrue finance charges and fees on credit card loans until the loan is charged off, typically when the account becomes 180 days past due. Billed finance charges and fees considered uncollectible are not recognized in income.

(8)	In the third quarter of 2011, we revised the manner in which we estimate expected recoveries of finance charge and fee amounts previously considered to be uncollectible. This revision resulted in an increase of 11 basis points in the 30+ day delinquency rate for Domestic Card. For International Card, the change did not have a significant impact on the 30+ day delinquency rate.

(9)	Includes credit card purchase transactions net of returns. Excludes cash advance transactions.

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

CAPITAL ONE FINANCIAL CORPORATION (COF) Table 12: Reconciliation of Non-GAAP Measures and Calculation of Regulatory Capital Measures In addition to disclosing required regulatory capital measures, we also report certain non-GAAP capital measures that management uses in assessing its capital adequacy. These non-GAAP measures include average tangible common equity, tangible common equity ("TCE"), TCE ratio, Tier 1 common equity and Tier 1 common equity ratio. The table below provides the details of the calculation of each of these measures. While these 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.
		2011		2011		2011
(Dollars in millions)(unaudited)		Q4		Q3		Q2
Average Equity to Non-GAAP Average Tangible Common Equity
Average total stockholders' equity		$ 29,698		$ 29,316		$ 28,255
Less: Average intangible assets(1)		(13,935)		(13,990)		(14,025)
Average tangible common equity		$ 15,763		$ 15,326		$ 14,230

Stockholders' Equity to Non-GAAP Tangible Common Equity
Total stockholders' equity		$ 29,666		$ 29,378		$ 28,681
Less: Intangible assets (1)		(13,908)		(13,953)		(14,006)
Tangible common equity		$ 15,758		$ 15,425		$ 14,675

Total Assets to Tangible Assets
Total assets		$ 206,019		$ 200,148		$ 199,753
Less: Assets from discontinued operations		(305)		(304)		(32)
Total assets from continuing operations		205,714		199,844		199,721
Less: Intangible assets (1)		(13,908)		(13,953)		(14,006)
Tangible assets		$ 191,806		$ 185,891		$ 185,715

Non-GAAP TCE Ratio
Tangible common equity		$ 15,758		$ 15,425		$ 14,675
Tangible assets		191,806		185,891		185,715
TCE ratio ⁽²⁾		8.2	%	8.3	%	7.9	%


Non-GAAP Tier 1 Common Equity and Regulatory Capital Ratios (3)
Total stockholders' equity		$ 29,666		$ 29,378		$ 28,681
Less: Net unrealized (gains) losses on AFS securities recorded in AOCI (4)		(289)		(401)		(482)
	Net (gains) losses on cash flow hedges recorded in AOCI (4)	71		55		71
	Disallowed goodwill and other intangible assets	(13,855)		(13,899)		(13,954)
	Disallowed deferred tax assets	(534)		(227)		(647)
	Other	(2)		(2)		(2)
Tier 1 common equity		$ 15,057		$ 14,904		$ 13,667
Plus: Tier 1 restricted core capital items (5)		3,635		3,636		3,636
Tier 1 capital		$ 18,692		$ 18,540		$ 17,303
Plus: Long-term debt qualifying as Tier 2 capital		2,437		2,438		2,727
	Qualifying allowance for loan and lease losses	1,977		1,896		1,864
	Other Tier 2 components	23		24		28
Tier 2 capital		$ 4,437		$ 4,358		$ 4,619
Total risk-based capital (6)		$ 23,129		$ 22,898		$ 21,922

Risk-weighted assets (7)		$ 155,472		$ 149,028		$ 146,201

Tier 1 common equity ratio (8)		9.7	%	10.0	%	9.4	%
Tier 1 risk-based capital ratio (9)		12.0		12.4		11.8
Total risk-based capital ratio (10)		14.9		15.4		15.0
(1) Includes impact from related deferred taxes. (2) Calculated based on tangible common equity divided by tangible assets (3) Capital ratios as of the end of Q4 2011 are preliminary and therefore subject to change once the calculations have been finalized. (4) Amounts presented are net of tax. (5) Consists primarily of trust preferred securities. (6) Total risk-based capital equals the sum of Tier 1 capital and Tier 2 capital (7) Calculated based on prescribed regulatory guidelines. (8) Tier 1 common equity ratio is a non-GAAP measure calculated based on Tier 1 common equity divided by risk-weighted assets. (9) Tier 1 risk-based capital ratio is a regulatory capital measure calculated based on Tier 1 capital divided by risk-weighted assets. (10) Total risk-based capital ratio is a regulatory capital measure calculated based on total risk-based capital divided by risk-weighted assets.