Capital One Reports Third Quarter 2011 Net Income of $813 million, or $1.77 per share

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Oct 20, 2011, 04:05 ET

MCLEAN, Va., Oct 20, 2011 /PRNewswire/ --

Estimated Tier 1 Common Equity Ratio of approximately 10.0 percent at September 30, 2011, up 60 basis points from 9.4 percent at June 30, 2011
End of period loan balances up $1.0 billion to $130.0 billion
Net Interest Margin expanded 19 basis points to 7.4 percent compared to second quarter 2011
Revenue Margin 9.4 percent, up 18 basis points compared to second quarter 2011
Charge-off Rate of 2.52 percent, down 39 basis points compared to second quarter 2011

Capital One Financial Corporation (NYSE: COF) today announced net income for the third quarter of 2011 of $813 million, or $1.77 per diluted common share, compared with net income of $911 million, or $1.97 per diluted common share, for the second quarter of 2011, and net income of $803 million, or $1.76 per diluted common share, for the third quarter of 2010.

"Our strong third quarter results demonstrate that we remain well-positioned to win in the marketplace and deliver shareholder value, " said Richard D. Fairbank, Capital One's Chairman and Chief Executive Officer. "We expect that the acquisitions of ING Direct and the HSBC US Card Business will deliver attractive financial results in the near-term, and put us in an even stronger position to enhance and sustain the value we can deliver to our customers, our communities and our shareholders."

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

Loan and Deposit Balances

Period-end loan balances increased $987 million to $130.0 billion driven by growth in Auto Finance and Commercial Banking. Excluding the expected decline in loan balances in the company's run-off portfolios, loan balances increased $2.0 billion.

Period-end total deposits increased $2.2 billion to $128.3 billion, driven by growth in branch and direct deposits.

Revenues

Total revenue in the third quarter of 2011 was $4.2 billion, up $161 million, or 4.0 percent. Net interest income drove the majority of the increase in revenue, increasing $147 million to $3.3 billion. Approximately half of this growth resulted from a decline in the level of revenue suppression in the Credit Card segment. This lower level of suppression was driven by an increase in the estimated collectability of billed finance charges and fees on existing credit card balances.

In addition, there were two largely offsetting revenue items related to the company's balance sheet repositioning ahead of the pending acquisition of ING Direct. The company recognized $239 million of gains from the sale of $6.4 billion of securities, which were predominately agency mortgage backed securities. Additionally, at the end of the quarter, the company recognized a $266 million mark-to-market loss on the previously announced pay-fixed swap executed in early August 2011.

Margins

Net interest margin expanded 19 basis points in the quarter to 7.39 percent as average asset yield rose 13 basis points combined with a decline of six basis points in the cost of funds. The decline was a result of a decline in deposit rates and a reduction in wholesale funding.

Revenue margin for the third quarter was 9.35 percent, up 18 basis points. The expansion of revenue margin resulted from the same factors that drove the increase in revenues in the quarter.

Non-Interest Expense

Operating expense for the third quarter increased $59 million primarily due to higher staffing costs as well as accruals against an earn-out agreement related to a previous acquisition. Marketing expense decreased $17 million, mostly driven by the timing of several large marketing programs which impacted expenses in the second quarter. In line with usual historical patterns, the company expects marketing expense to rise in the fourth quarter.

Pre-Provision Income (before tax)

An increase in revenue in the quarter was partially offset by a modest increase in non-interest expenses.

Provision Expense

As overall credit trends are stabilizing after almost two years of rapidly declining charge-offs, quarterly credit metrics are increasingly driven by seasonal patterns. Charge-offs continued to fall in the quarter, but a significantly smaller allowance release associated with stabilizing credit trends caused provision expense to increase to $622 million. The charge-off rate improved 39 basis points to 2.52 percent, while the coverage ratio of allowance to loans came down by only 19 basis points to 3.29 percent.

Representation & Warranty

The company's reserve for representation and warranty claims was $892 million as of September 30, 2011, up from $869 million as of June 30, 2011. The company added $72 million in additional reserves and paid $49 million in claims. As a result of some generally increased activity by investors in the non-GSE and non-insured securitization category, the company now believes that the upper end of the reasonably possible future losses from representation and warranty claims beyond current accrual levels could be as high as $1.5 billion. This estimate continues to be subject to the significant uncertainty and numerous factors described in the company's quarterly reports filed with the Securities and Exchange Commission.

Net Income

Net income decreased $98 million as higher pre-provision earnings were more than offset by higher provision expense.

Capital Ratios

The company's estimated Tier 1 common equity ratio rose to 10.0 percent as of September 30, 2011, up 60 basis points from June 30, 2011. The increase was driven by strong business performance as well as the expected continued decline of deferred tax assets disallowed in the regulatory capital calculation. "We continue to be comfortable with our strong capital levels and our underlying trajectory," said Gary L. Perlin, Capital One's Chief Financial Officer. "Using known Basel III definitions, our Tier 1 common equity ratio would have been approximately 10 basis points higher in the quarter, or 10.1 percent."

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.

Credit Card Highlights

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

The Domestic Card business delivered another quarter of strong returns. The net charge-off rate improved 82 basis points in the quarter with approximately half of the improvement resulting from expected seasonal patterns and the remaining improvement driven by underlying credit performance. The company continues to see declining loss severity and strong credit performance in its newer vintages and portfolio seasoning as older vintages mature.

Domestic Card loan balances declined modestly in the quarter, but excluding the Installment Loan run-off, revolving credit card loans grew $276 million in the quarter, up approximately 0.5 percent sequentially, and up about 4.4 percent compared to the third quarter of 2010.

Purchase volume increased in the quarter to $34.9 billion, reflecting third quarter seasonality and continued strong growth in purchase volume across the company's Domestic Card business. Purchase volume grew 17 percent from the third quarter of 2010, excluding the impact of the Kohl's portfolio.

Commercial Banking Highlights

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

The Commercial Banking segment delivered its third consecutive quarter of strong profitability and continued loan growth. Commercial deposits and commercial customer relationships continued to grow in the quarter.

Ending loans were up 2.9 percent from the prior quarter and up 8.7 percent from the third quarter of 2010. Growth in loan commitments, an early indicator of future loan growth, was even stronger. Commercial & Industrial and Commercial Real Estate businesses experienced the strongest growth in both loans and loan commitments.

Commercial Banking credit metrics have stabilized and improved modestly over the last five quarters. At a rate of 0.37 percent, net charge-offs for Commercial Banking are at their lowest levels since the third quarter of 2008.

Consumer Banking Highlights

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

In Consumer Banking, 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 $3.4 billion, up 17 percent from the second quarter and 40 percent from the third quarter of 2010.

In the Auto Finance business, charge-off and delinquency rates increased in the quarter, consistent with expected seasonal patterns. Year-over-year, charge-offs and delinquencies improved 102 basis points and 108 basis points, respectively.

Auto Finance credit performance remains strong, with originations continuing to perform better than originations from 2007 and 2008. In fact, Auto Finance credit metrics are near their all-time lows, driven by the actions the company took to retrench and reposition the business, tight underwriting and loss mitigation actions through the recession, and continued strength in used car auction prices.

The charge-off rate improved in the Home Loan portfolio, while the delinquency rate increased modestly.

Consumer Banking deposits were up $1.3 billion in the third quarter as the Consumer Banking segment continued to grow retail banking customer relationships.

Forward-looking statements

The company cautions that its current expectations in this release dated October 20, 2011, 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, 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 received 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 (the "SEC"), 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 $128.3 billion in deposits and $200.1 billion in total assets outstanding as of September 30, 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
Third 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 Quarterly Report on Form 10-Q once it is filed with the Securities and Exchange Commission.

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

	2011		2011		2011
(Dollars in millions, except per share data and as noted) (unaudited)	Q3		Q2		Q1
Earnings
Net interest income	$ 3,283		$ 3,136		$ 3,140
Non-interest income (1)(2)	871		857		942
Total revenue (3)	$ 4,154		$ 3,993		$ 4,082
Provision for loan and lease losses	622		343		534
Marketing expenses	312		329		276
Operating expenses (4)	1,985		1,926		1,886
Income from continuing operations before income taxes	$ 1,235		$ 1,395		$ 1,386
Income tax provision	370		450		354
Income from continuing operations, net of tax	865		945		1,032
Loss from discontinued operations, net of tax (2)	(52)		(34)		(16)
Net income	$ 813		$ 911		$ 1,016

Common Share Statistics
Basic EPS:
Income from continuing operations, net of tax	$ 1.90		$ 2.07		$ 2.27
Loss from discontinued operations, net of tax	(0.12)		(0.07)		(0.03)
Net income per common share	$ 1.78		$ 2.00		$ 2.24
Diluted EPS:
Income from continuing operations, net of tax	$ 1.88		$ 2.04		$ 2.24
Loss from discontinued operations, net of tax	(0.11)		(0.07)		(0.03)
Net income per common share	$ 1.77		$ 1.97		$ 2.21
Weighted average common shares outstanding (in millions):
Basic EPS	456.0		455.6		454.1
Diluted EPS	460.4		462.2		460.3
Common shares outstanding (period end)	456.1		455.8		455.2
Dividends per common share	$ 0.05		$ 0.05		$ 0.05
Tangible book value per common share (period end) (5)	33.82		32.20		29.70
Stock price per common share (period end)	39.63		51.67		51.96
Total market capitalization (period end)	18,075		23,551		23,652

Balance Sheet (Period End)
Loans held for investment (6)	$ 129,952		$ 128,965		$ 124,092
Interest-earning assets	174,308		174,302		172,849
Total assets	200,148		199,753		199,300
Tangible assets (7)	185,891		185,715		184,928
Interest-bearing deposits	110,777		109,278		109,097
Total deposits	128,318		126,117		125,446
Borrowings	34,315		37,735		39,797
Stockholders' equity	29,378		28,681		27,550
Tangible common equity (TCE) (8)	15,425		14,675		13,520

Balance Sheet (Quarterly Average Balances)
Average loans held for investment (6)	$ 129,043		$ 127,916		$ 125,077
Average interest-earning assets	177,710		174,143		173,540
Average total assets	201,611		199,229		198,075
Average interest-bearing deposits	110,750		109,251		108,633
Average total deposits	128,268		125,834		124,158
Average borrowings	37,366		39,451		40,538
Average stockholders' equity	29,316		28,255		27,009

Performance Metrics
Net interest income growth (quarter over quarter)	5	%	(0)	%	4	%
Non-interest income growth (quarter over quarter)	2		(9)		0
Revenue growth (quarter over quarter)	4		(2)		3
Revenue margin (9)	9.35		9.17		9.41
Net interest margin 10)	7.39		7.20		7.24
Return on average assets (11)	1.72		1.90		2.08
Return on average equity (12)	11.80		13.38		15.28
Return on average tangible common equity (13)	22.58		26.57		31.73
Non-interest expense as a % of average loans held for investment (14)	7.12		7.05		6.91
Efficiency ratio (15)	55.30		56.47		52.96
Effective income tax rate	30.0		32.3		25.5
Full-time equivalent employees (in thousands)	29.5		28.2		27.9

Credit Quality Metrics (16)
Allowance for loan and lease losses	$ 4,280		$ 4,488		$ 5,067
Allowance as a % of loans held for investment	3.29	%	3.48	%	4.08	%
Net charge-offs	$ 812		$ 931		$ 1,145
Net charge-off rate (17)(18)	2.52	%	2.91	%	3.66	%
30+ day performing delinquency rate	3.13		2.90		3.07

Capital Ratios
Tier 1 risk-based capital ratio (19)	12.4	%	11.8	%	10.9	%
Tier 1 common equity ratio (20)	10.0		9.4		8.4
Total risk-based capital ratio (21)	15.4		15.0		14.2
Tangible common equity (TCE) ratio (22)	8.3		7.9		7.3

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

(1)	Includes the impact from the change in fair value of retained interests, including interest-only strips, which totaled $12 million in Q3 2011, $16 million in Q2 2011, and $7 million in Q1 2011.

(2)	The mortgage representation and warranty reserve increased to $892 million as of September 30, 2011, from $869 million as of June 30, 2011. We recorded a provision for repurchase losses of $72 million in Q3 2011, $37 million in Q2 2011, and $44 million in Q1 2011. The majority of the provision for repurchase losses is included in discontinued operations, with the remaining portion included in non-interest income.

(3)	The estimated uncollectible amount of billed finance charges and fees excluded from revenue totaled $24 million in Q3 2011, $112 million in Q2 2011, and $105 million in Q1 2011. In the third quarter of 2011, we made a change to the way we estimate recoveries in determining the uncollectible amount of finance charges and fees, which significantly reduced the uncollectible amount of billed finance charges and fees excluded from revenue in Q3 2011.

(4)	Includes core deposit intangible amortization expense of $42 million in Q3 2011, $44 million in Q2 2011, and $45 million in Q1 2011 and integration costs of $1 million in Q3 2011, $0 million in Q2 2011, and $2 million in Q1 2011.

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

(6)	Amounts for Q3 2011 and Q2 2011 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.

(7)	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.

(8)	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.

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

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

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

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

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

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

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

(16)	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)	Q3		Q2		Q1
CCB period-end acquired loan portfolio	$ 4,873		$ 5,181		$ 5,351
CCB average acquired loan portfolio	4,998		5,112		5,305
Allowance as a % of loans held for investment, excluding CCB loans	3.42	%	3.63	%	4.27	%
Net charge-off rate, excluding CCB loans	2.62		3.03		3.82
30+ day performing delinquency rate, excluding CCB loans	3.32		3.08		3.25

(17)	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.

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

(19)	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.

(20)	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.
.
(21)	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.

(22)	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


		Three Months Ended			Nine Months Ended
(Dollars in millions, except per share data)		September 30,	June 30,	September 30,	September 30,	September 30,
(unaudited)		2011	2011	2010	2011	2010

Interest income:
Loans held for investment, including past-due fees		$ 3,550	$ 3,367	$ 3,447	$ 10,334	$ 10,582
Investment securities		264	313	347	893	1,037
Cash equivalents and other		21	19	21	59	60
	Total interest income	3,835	3,699	3,815	11,286	11,679

Interest expense:
Deposits		294	307	358	923	1,125
Securitized debt obligations		89	113	191	342	644
Senior and subordinated notes		84	63	72	211	211
Other borrowings		85	80	85	251	265
	Total interest expense	552	563	706	1,727	2,245

Net interest income		3,283	3,136	3,109	9,559	9,434
Provision for loan and lease losses		622	343	867	1,499	3,069
Net interest income after provision for loan and lease losses		2,661	2,793	2,242	8,060	6,365

Non-interest income:
Servicing and securitizations		12	12	13	35	(3)
Service charges and other customer-related fees		542	460	496	1,527	1,577
Interchange		321	331	346	972	991
Net other-than-temporary impairment losses recognized in earnings		(6)	(6)	(5)	(15)	(62)
Other		2	60	57	151	272
	Total non-interest income	871	857	907	2,670	2,775

Non-interest expense:
Salaries and associate benefits		750	715	641	2,206	1,937
Marketing		312	329	250	917	650
Communications and data processing		178	162	178	504	512
Supplies and equipment		143	124	129	402	381
Occupancy		122	118	135	359	371
Other		792	807	663	2,326	1,992
	Total non-interest expense	2,297	2,255	1,996	6,714	5,843
Income from continuing operations before income taxes		1,235	1,395	1,153	4,016	3,297
Income tax provision		370	450	335	1,174	948
Income from continuing operations, net of tax		865	945	818	2,842	2,349
Loss from discontinued operations, net of tax		(52)	(34)	(15)	(102)	(303)
Net income		$ 813	$ 911	$ 803	$ 2,740	$ 2,046

Basic earnings per common share:
Income from continuing operations		$ 1.90	$ 2.07	$ 1.81	$ 6.24	$ 5.19
Loss from discontinued operations		(0.12)	(0.07)	(0.03)	(0.22)	(0.66)
Net income per common share		$ 1.78	$ 2.00	$ 1.78	$ 6.02	$ 4.53

Diluted earnings per common share:
Income from continuing operations		$ 1.88	$ 2.04	$ 1.79	$ 6.17	$ 5.15
Loss from discontinued operations		(0.11)	(0.07)	(0.03)	(0.22)	(0.66)
Net income per common share		$ 1.77	$ 1.97	$ 1.76	$ 5.95	$ 4.49

Weighted average common shares outstanding (in millions):
Basic EPS		456.0	455.6	452.5	455.2	451.9
Diluted EPS		460.4	462.2	456.6	461.0	456.0

Dividends per common share		$ 0.05	$ 0.05	$ 0.05	$ 0.15	$ 0.15

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


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

Assets:
Cash and due from banks		$ 1,794	$ 2,067	$ 2,015
Interest-bearing deposits with banks		3,238	2,776	2,391
Federal funds sold and repurchase agreements		1,326	406	536
	Cash and cash equivalents	6,358	5,249	4,942
Restricted cash for securitization investors		984	1,602	2,686
Securities available for sale, at fair value		38,400	41,537	39,926
Loans held for investment:
	Unsecuritized loans held for investment, at amortized cost	83,010	71,921	74,719
	Restricted loans for securitization investors	46,942	54,026	51,615
	Total loans held for investment	129,952	125,947	126,334
	Less: Allowance for loan and lease losses	(4,280)	(5,628)	(6,175)
	Net loans held for investment	125,672	120,319	120,159
Loans held for sale, at lower-of-cost-or-fair-value		312	228	197
Accounts receivable from securitizations		101	118	127
Premises and equipment, net		2,785	2,749	2,722
Interest receivable		958	1,070	1,025
Goodwill		13,593	13,591	13,593
Other		10,985	11,040	11,556
	Total assets	$ 200,148	$ 197,503	$ 196,933


Liabilities:
Interest payable		$ 401	$ 488	$ 464
Customer deposits:
	Non-interest bearing deposits	17,541	15,048	14,471
	Interest-bearing deposits	110,777	107,162	104,741
	Total customer deposits	128,318	122,210	119,212
Securitized debt obligations		17,120	26,915	29,504
Other debt:
	Federal funds purchased and securities loaned or sold under agreements to repurchase	1,441	1,517	947
	Senior and subordinated notes	11,051	8,650	9,083
	Other borrowings	4,703	4,714	4,799
	Total other debt	17,195	14,881	14,829
Other liabilities		7,736	6,468	6,863
	Total liabilities	170,770	170,962	170,872

Stockholders' equity:
Common stock		5	5	5
Paid-in capital, net		19,234	19,084	19,059
Retained earnings and accumulated other comprehensive income		13,382	10,654	10,199
Less: Treasury stock, at cost		(3,243)	(3,202)	(3,202)
	Total stockholders' equity	29,378	26,541	26,061
	Total liabilities and stockholders' equity	$ 200,148	$ 197,503	$ 196,933

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


			Quarter Ended 09/30/11				Quarter Ended 06/30/11				Quarter Ended 09/30/10
(Dollars in millions)			Average	Interest Income/	Yield/		Average	Interest Income/	Yield/		Average	Interest Income/	Yield/
(unaudited)			Balance	Expense	Rate		Balance	Expense	Rate		Balance	Expense	Rate
Interest-earning assets:
	Loans held for investment		$ 129,043	$ 3,550	11.00	%	$ 127,916	$ 3,367	10.53	%	$ 126,307	$ 3,447	10.92	%
	Investment securities		37,189	264	2.84		40,381	313	3.10		39,872	347	3.48
	Cash equivalents and other		11,478	21	0.73		5,846	19	1.30		6,294	21	1.33
Total interest-earning assets			$ 177,710	$ 3,835	8.63	%	$ 174,143	$ 3,699	8.50	%	$ 172,473	$ 3,815	8.85	%

Interest-bearing liabilities:
	Interest-bearing deposits
		NOW accounts	$ 12,602	$ 9	0.29	%	$ 13,186	$ 9	0.27	%	$ 11,333	$ 10	0.35	%
		Money market deposit accounts	47,483	100	0.84		45,527	99	0.87		43,260	104	0.96
		Savings accounts	30,944	56	0.72		29,329	60	0.82		22,572	49	0.87
		Other consumer time deposits	13,530	84	2.48		14,330	91	2.54		18,726	133	2.84
		Public fund CD's of $100,000 or more	92	1	4.35		110	1	3.64		220	1	1.82
		CD's of $100,000 or more	5,407	43	3.18		5,867	46	3.14		7,256	59	3.25
		Foreign time deposits	692	1	0.58		902	1	0.44		819	2	0.98
	Total interest-bearing deposits		$ 110,750	$ 294	1.06	%	$ 109,251	$ 307	1.12	%	$ 104,186	$ 358	1.37	%
	Securitized debt obligations		18,478	89	1.93		22,191	113	2.04		30,750	191	2.48
	Senior and subordinated notes		10,519	84	3.19		8,093	63	3.11		8,677	72	3.32
	Other borrowings		8,369	85	4.06		9,167	80	3.49		6,483	85	5.24
Total interest-bearing liabilities			$ 148,116	$ 552	1.49	%	$ 148,702	$ 563	1.51	%	$ 150,096	$ 706	1.88	%

Net interest income/spread				$ 3,283	7.14	%		$ 3,136	6.99	%		$ 3,109	6.96	%

Interest income to average interest-earning assets					8.63	%			8.50	%			8.85	%
Interest expense to average interest-earning assets					1.24				1.30				1.64
Net interest margin					7.39	%			7.20	%			7.21	%

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

	2011		2011		2011
(Dollars in millions)(unaudited)	Q3		Q2		Q1
Period-end loans held for investment
Credit card:
Domestic credit card(2)	$ 53,820		$ 53,994		$ 50,570
International credit card	8,210		8,711		8,735
Total credit card	62,030		62,705		59,305
Consumer banking:
Automobile	20,422		19,223		18,342
Home loan	10,916		11,323		11,741
Retail banking	4,014		4,046		4,223
Total consumer banking	35,352		34,592		34,306
Commercial banking:
Commercial and multifamily real estate	14,389		14,035		13,543
Middle market	11,924		11,404		10,758
Specialty lending	4,221		4,122		3,936
Total commercial lending	30,534		29,561		28,237
Small-ticket commercial real estate	1,571		1,642		1,780
Total commercial banking	32,105		31,203		30,017
Other loans(3)	465		465		464
Total	$ 129,952		$ 128,965		$ 124,092

Average loans held for investment
Credit card:
Domestic credit card(2)	$ 53,668		$ 53,868		$ 51,889
International credit card	8,703		8,823		8,697
Total credit card	62,371		62,691		60,586
Consumer banking:
Automobile	19,757		18,753		18,025
Home loan	11,126		11,534		11,960
Retail banking	3,979		4,154		4,251
Total consumer banking	34,862		34,441		34,236
Commercial banking:
Commercial and multifamily real estate	14,021		13,597		13,345
Middle market	11,572		10,979		10,666
Specialty lending	4,154		4,014		3,964
Total commercial lending	29,747		28,590		27,975
Small-ticket commercial real estate	1,598		1,726		1,818
Total commercial banking	31,345		30,316		29,793
Other loans(3)	465		468		462
Total	$ 129,043		$ 127,916		$ 125,077

Net charge-off rates
Credit card:
Domestic credit card(4)	3.92	%	4.74	%	6.20	%
International credit card	6.15		7.02		5.74
Total credit card	4.23	%	5.06	%	6.13	%
Consumer banking:
Automobile(5)	1.69	%	1.11	%	1.98	%
Home loan(6)	0.53		0.60		0.71
Retail banking(6)	1.67		1.73		2.24
Total consumer banking(6)	1.32	%	1.01	%	1.57	%
Commercial banking:
Commercial and multifamily real estate(6)	0.12	%	0.39	%	0.56	%
Middle market (6)	0.41		0.13		0.18
Specialty lending	0.44		0.47		0.30
Total commercial lending(6)	0.28	%	0.30	%	0.38	%
Small-ticket commercial real estate	2.19		3.77		7.14
Total commercial banking(6)	0.37	%	0.50	%	0.79	%
Other loans	6.39	%	10.57	%	19.91	%
Total	2.52	%	2.91	%	3.66	%

30+ day performing delinquency rates
Credit card:
Domestic credit card	3.65	%	3.33	%	3.59	%
International credit card	5.35		5.30		5.55
Total credit card	3.87	%	3.60	%	3.88	%
Consumer banking:
Automobile	6.34	%	6.09	%	5.79	%
Home loan(6)	0.78		0.70		0.61
Retail banking(6)	0.89		0.76		0.93
Total consumer banking(6)	4.01	%	3.70	%	3.42	%

Nonperforming asset rates(7) (8)
Consumer banking:
Automobile	0.53	%	0.49	%	0.39	%
Home loan(6)	4.74		4.40		4.34
Retail banking(6)	2.37		2.45		2.44
Total consumer banking(6)	2.04	%	2.00	%	2.00	%
Commercial banking:
Commercial and multifamily real estate(6)	2.16	%	2.35	%	2.63	%
Middle market (6)	1.04		1.19		1.14
Specialty lending	0.87		0.95		1.19
Total commercial lending(6)	1.54	%	1.71	%	1.86	%
Small-ticket commercial real estate	1.58		0.75		3.39
Total commercial banking(6)	1.55	%	1.66	%	1.95	%

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

	2011		2011		2011
(Dollars in millions) (unaudited)	Q3		Q2		Q1
Credit Card
Earnings:
Net interest income	$ 2,042		$ 1,890		$ 1,941
Non-interest income	678		619		674
Total revenue	$ 2,720		$ 2,509		$ 2,615
Provision for loan and lease losses	511		309		450
Non-interest expense	1,188		1,238		1,178
Income from continuing operations before taxes	1,021		962		987
Income tax provision	358		344		344
Income from continuing operations, net of tax	$ 663		$ 618		$ 643

Selected metrics:
Period end loans held for investment	$ 62,030		$ 62,705		$ 59,305
Average loans held for investment	62,371		62,691		60,586
Average yield on loans held for investment	14.84	%	13.83	%	14.68	%
Revenue margin	17.44		16.01		17.26
Net charge-off rate	4.23		5.06		6.13
30+ day delinquency rate(9)	3.87		3.60		3.88
Purchase volume(10)	$ 34,918		$ 34,226		$ 27,797

Domestic Card
Earnings:
Net interest income	$ 1,753		$ 1,607		$ 1,651
Non-interest income	588		584		583
Total revenue	$ 2,341		$ 2,191		$ 2,234
Provision for loan and lease losses	381		187		230
Non-interest expense	972		1,008		990
Income from continuing operations before taxes	988		996		1,014
Income tax provision	351		354		360
Income from continuing operations, net of tax	$ 637		$ 642		$ 654

Selected metrics:
Period end loans held for investment	$ 53,820		$ 53,994		$ 50,570
Average loans held for investment	53,668		53,868		51,889
Average yield on loans held for investment	14.62	%	13.52	%	14.42	%
Revenue margin	17.45		16.27		17.22
Net charge-off rate(4)	3.92		4.74		6.20
30+ day delinquency rate(9)	3.65		3.33		3.59
Purchase volume(10)	$ 31,686		$ 31,070		$ 25,024

International Card
Earnings:
Net interest income	$ 289		$ 283		$ 290
Non-interest income	90		35		91
Total revenue	$ 379		$ 318		$ 381
Provision for loan and lease losses	130		122		220
Non-interest expense	216		230		188
Income (loss) from continuing operations before taxes	33		(34)		(27)
Income tax provision (benefit)	7		(10)		(16)
Income (loss) from continuing operations, net of tax	$ 26		$ (24)		$ (11)

Selected metrics:
Period end loans held for investment	$ 8,210		$ 8,711		$ 8,735
Average loans held for investment	8,703		8,823		8,697
Average yield on loans held for investment	16.24	%	15.77	%	16.28	%
Revenue margin	17.42		14.42		17.52
Net charge-off rate	6.15		7.02		5.74
30+ day delinquency rate(9)	5.35		5.30		5.55
Purchase volume(10)	$ 3,232		$ 3,156		$ 2,773

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

		2011		2011		2011
(Dollars in millions) (unaudited)		Q3		Q2		Q1
Consumer Banking
Earnings:
	Net interest income	$ 1,097		$ 1,051		$ 983
	Non-interest income	188		194		186
	Total revenue	$ 1,285		$ 1,245		$ 1,169
	Provision for loan and lease losses	136		41		95
	Non-interest expense	853		758		740
	Income from continuing operations before taxes	296		446		334
	Income tax provision	106		159		119
	Income from continuing operations, net of tax	$ 190		$ 287		$ 215

Selected metrics:
	Period end loans held for investment	$ 35,352		$ 34,592		$ 34,306
	Average loans held for investment	34,862		34,441		34,236
	Average yield on loans held for investment	9.83	%	9.51	%	9.60	%
	Auto loan originations	$ 3,409		$ 2,910		$ 2,571
	Period end deposits	88,589		87,282		86,355
	Average deposits	88,266		86,926		83,884
	Deposit interest expense rate	0.95	%	1.00	%	1.06	%
	Core deposit intangible amortization	$ 32		$ 34		$ 35
	Net charge-off rate(5)(6)	1.32	%	1.01	%	1.57	%
	Nonperforming loans as a percentage of loans held for investment(5)(6)	1.88		1.83		1.84
	Nonperforming asset rate(6)(7)	2.04		2.00		2.00
	30+ day performing delinquency rate(6)(7)	4.01		3.70		3.42
	Period end loans serviced for others	$ 18,624		$ 19,226		$ 19,956

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

		2011		2011		2011
(Dollars in millions) (unaudited)		Q3		Q2		Q1
Commercial Banking
Earnings:
	Net interest income	$ 353		$ 333		$ 321
	Non-interest income	62		62		71
	Total revenue	$ 415		$ 395		$ 392
	Provision for loan and lease losses	(10)		(18)		(15)
	Non-interest expense	200		192		177
	Income from continuing operations before taxes	225		221		230
	Income tax provision	80		79		82
	Income from continuing operations, net of tax	$ 145		$ 142		$ 148

Selected metrics:
	Period end loans held for investment	$ 32,105		$ 31,203		$ 30,017
	Average loans held for investment	31,345		30,316		29,793
	Average yield on loans held for investment	4.69	%	4.74	%	4.80	%
	Period end deposits	$ 25,282		$ 24,304		$ 24,244
	Average deposits	25,227		24,282		24,138
	Deposit interest expense rate	0.48	%	0.52	%	0.55	%
	Core deposit intangible amortization	$ 10		$ 10		$ 11
	Net charge-off rate(6)	0.37	%	0.50	%	0.79	%
	Nonperforming loans as a percentage of loans held for investment(6)	1.43		1.54		1.84
	Nonperforming asset rate(6)	1.55		1.66		1.95

Risk category:(11)
	Noncriticized	$ 29,374		$ 28,459		$ 27,008
	Criticized performing	1,781		1,765		1,924
	Criticized nonperforming	459		481		553
	Total non-PCI loans	31,614		30,705		29,485
	Total PCI loans	491		498		532
	Total	$ 32,105		$ 31,203		$ 30,017

	% of period end held for investment commercial loans:
	Noncriticized	91.49	%	91.21	%	89.98	%
	Criticized performing	5.55		5.66		6.41
	Criticized nonperforming	1.43		1.54		1.84
	Total non-PCI loans	98.47		98.40		98.23
	Total PCI loans	1.53		1.60		1.77
	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)		Q3	Q2	Q1
Other
Earnings:
	Net interest expense	$ (209)	$ (138)	$ (105)
	Non-interest income (expense)	(57)	(18)	11
	Total revenue	$ (266)	$ (156)	$ (94)
	Provision for loan and lease losses	(15)	11	4
	Non-interest expense	56	67	67
	Loss from continuing operations before taxes	(307)	(234)	(165)
	Income tax benefit	(174)	(132)	(191)
	Income (loss) from continuing operations, net of tax	$ (133)	$ (102)	$ 26

Selected metrics:
	Period end loans held for investment(4)	$ 465	$ 465	$ 464
	Average loans held for investment(4)	465	468	462
	Period end deposits	14,447	14,531	14,847
	Average deposits	14,775	14,626	16,136

Total
Earnings:
	Net interest income	$ 3,283	$ 3,136	$ 3,140
	Non-interest income	871	857	942
	Total revenue	$ 4,154	$ 3,993	$ 4,082
	Provision for loan and lease losses	622	343	534
	Non-interest expense	2,297	2,255	2,162
	Income from continuing operations before taxes	1,235	1,395	1,386
	Income tax provision	370	450	354
	Income from continuing operations, net of tax	$ 865	$ 945	$ 1,032

Selected metrics:
	Period-end loans held for investment	$ 129,952	$ 128,965	$ 124,092
	Average loans held for investment	129,043	127,916	125,077
	Period end deposits	128,318	126,117	125,446
	Average deposits	128,268	125,834	124,158

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

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

(2)	Amounts for Q3 2011 and Q2 2011 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.

(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)	The third quarter 2011 annualized net charge-off rate for Auto reflects the impact of a true-up of recoveries for certain bankruptcy-related Auto loans that were previously charged-off, which resulted in a decrease in the annualized net charge off rate of 19 basis points in the Q3 2011.

(6)	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)	Q3		Q2		Q1
	CCB period end acquired loan portfolio	$ 4,873		$ 5,181		$ 5,351
	CCB average acquired loan portfolio	4,998		5,112		5,305

	Net charge-off rates
	Consumer banking:
	Home loan	0.87	%	0.98	%	1.16	%
	Retail banking	1.69		1.76		2.32
	Total consumer banking	1.51	%	1.17	%	1.82	%

	Commercial banking:
	Commercial and multifamily real estate	0.12	%	0.40	%	0.57	%
	Middle market	0.42		0.13		0.18
	Total commercial lending	0.28	%	0.31	%	0.38	%
	Total commercial banking	0.38	%	0.51	%	0.80	%

	30+ day performing delinquency rates
	Consumer banking:
	Home loan	1.28	%	1.18	%	1.02	%
	Retail banking	0.90		0.77		0.93
	Total consumer banking	4.57	%	4.29	%	3.98	%

	Nonperforming asset rates
	Consumer banking:
	Home loan	7.80	%	7.38	%	7.24	%
	Retail banking	2.40		2.48		2.44
	Total consumer banking	2.33	%	2.32	%	2.32	%

	Commercial banking:
	Commercial and multifamily real estate	2.18	%	2.39	%	2.68	%
	Middle market	1.07		1.22		1.17
	Total commercial lending	1.57	%	1.73	%	1.90	%
	Total commercial banking	1.57	%	1.68	%	1.99	%

	Nonperforming loans as a percentage of loans held for investment
	Consumer banking	2.15	%	2.12	%	2.14	%
	Commercial banking	1.45		1.56		1.88

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

(8)	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.

(9)	The September 30, 2011 30+ day delinquency rate for Domestic Card reflects the impact of a change in the way we estimate recoveries in determining the uncollectible amount of finance charges and fees, which resulted in an increase of 11 basis points as of September 30, 2011. For International Card, the change did not have a significant impact on the 30+ day delinquency rate as of September 30, 2011.

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


(11)	Criticized exposures correspond to the "Special Mention," "Substandard" and "Doubtful" asset categories defined by banking 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)		Q3			Q2		Q1
Average Equity to Non-GAAP Average Tangible Common Equity
Average total stockholders' equity		$ 29,316			$ 28,255		$ 27,009
Less: Average intangible assets (1)		(13,990)			(14,025)		(14,001)
Average tangible common equity		$ 15,326			$ 14,230		$ 13,008

Stockholders' Equity to Non-GAAP Tangible Common Equity
Total stockholders' equity		$ 29,378			$ 28,681		$ 27,550
Less: Intangible assets (1)		(13,953)			(14,006)		(14,030)
Tangible common equity		$ 15,425			$ 14,675		$ 13,520

Total Assets to Tangible Assets
Total assets		$ 200,148			$ 199,753		$ 199,300
Less: Assets from discontinued operations		(304)			(32)		(342)
Total assets from continuing operations		199,844			199,721		198,958
Less: Intangible assets (1)		(13,953)			(14,006)		(14,030)
Tangible assets		$ 185,891			$ 185,715		$ 184,928

Non-GAAP TCE Ratio
Tangible common equity		$ 15,425			$ 14,675		$ 13,520
Tangible assets		185,891			185,715		184,928
TCE ratio(2)		8.3	%		7.9	%	7.3	%


Non-GAAP Tier 1 Common Equity and Regulatory Capital Ratios
Total stockholders' equity		$ 29,378			$ 28,681		$ 27,550
Less: Net unrealized (gains) losses on AFS securities recorded in AOCI (3)		(401)			(482)		(314)
	Net (gains) losses on cash flow hedges recorded in AOCI(3)	54			71		95
	Disallowed goodwill and other intangible assets	(13,899)			(13,954)		(13,993)
	Disallowed deferred tax assets	(227)			(647)		(1,377)
	Other	(2)			(2)		(2)
Tier 1 common equity		$ 14,903			$ 13,667		$ 11,959
Plus: Tier 1 restricted core capital items(4)		3,636			3,636		3,636
Tier 1 capital		$ 18,539			$ 17,303		$ 15,595
Plus: Long-term debt qualifying as Tier 2 capital		2,438			2,727		2,827
	Qualifying allowance for loan and lease losses	1,897			1,864		1,825
	Other Tier 2 components	24			28		20
Tier 2 capital		$ 4,359			$ 4,619		$ 4,672
Total risk-based capital(5)		$ 22,898			$ 21,922		$ 20,267

Risk-weighted assets(6)		$ 149,050			$ 146,201		$ 142,495

Tier 1 common equity ratio (7)		10.0	%	(10)	9.4	%	8.4	%
Tier 1 risk-based capital ratio (8)		12.4		(10)	11.8		10.9
Total risk-based capital ratio (9)		15.4		(10)	15.0		14.2
___________________

(1)	Includes impact from related deferred taxes.
(2)	Calculated based on tangible common equity divided by tangible assets.
(3)	Amounts presented are net of tax.
(4)	Consists primarily of trust preferred securities.
(5)	Total risk-based capital equals the sum of Tier 1 capital and Tier 2 capital.
(6)	Calculated based on prescribed regulatory guidelines.
(7)	Tier 1 common equity ratio is a non-GAAP measure calculated based on Tier 1 common equity divided by risk-weighted assets.
(8)	Tier 1 risk-based capital ratio is a regulatory capital measure calculated based on Tier 1 capital divided by risk-weighed assets.
(9)	Total risk-based capital ratio is a regulatory capital measure calculated based on total risk-based capital divided by risk-weighed assets.
(10)	Capital ratios as of the end of Q3 2011 are preliminary and therefore subject to change once the calculations have been finalized.