CAPITAL ONE FINANCIAL CORP [COF-PI] Filings

10-Q 1 cof-20240630.htm 10-Q cof-20240630

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

____________________________________

FORM 10-Q

___________________________________


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2024


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File No. 001-13300

____________________________________

CAPITAL ONE FINANCIAL CORPORATION

(Exact name of registrant as specified in its charter)

____________________________________


Delaware		54-1719854
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)
1680 Capital One Drive,
McLean,	Virginia	22102
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code: (703) 720-1000
(Not Applicable)
(Former name, former address and former fiscal year, if changed since last report)
____________________________________

Securities registered pursuant to Section 12(b) of the Act:


Title of Each Class	Trading Symbol(s)	Name of Each Exchange on Which Registered
Common Stock (par value $.01 per share)	COF	New York Stock Exchange
Depositary Shares, Each Representing a 1/40th Interest in a Share of Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series I	COF PRI	New York Stock Exchange
Depositary Shares, Each Representing a 1/40th Interest in a Share of Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series J	COF PRJ	New York Stock Exchange
Depositary Shares, Each Representing a 1/40th Interest in a Share of Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series K	COF PRK	New York Stock Exchange
Depositary Shares, Each Representing a 1/40th Interest in a Share of Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series L	COF PRL	New York Stock Exchange
Depositary Shares, Each Representing a 1/40th Interest in a Share of Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series N	COF PRN	New York Stock Exchange
1.650% Senior Notes Due 2029	COF29	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☒

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of June 30, 2024, there were 381,856,146 shares of the registrant’s Common Stock outstanding.

TABLE OF CONTENTS


		Page
PART I - FINANCIAL INFORMATION		4














Item 1.	Financial Statements	76
	Consolidated Statements of Income	77
	Consolidated Statements of Comprehensive Income	78
	Consolidated Balance Sheets	79
	Consolidated Statements of Changes in Stockholders’ Equity	80
	Consolidated Statements of Cash Flows	82
	Notes to Consolidated Financial Statements	84
	Note 1—Summary of Significant Accounting Policies	84
	Note 2—Business Combinations	85
	Note 3—Investment Securities	86
	Note 4—Loans	88
	Note 5—Allowance for Credit Losses and Reserve for Unfunded Lending Commitments	102
	Note 6—Variable Interest Entities and Securitizations	107
	Note 7—Goodwill and Other Intangible Assets	111
	Note 8—Deposits and Borrowings	112
	Note 9—Derivative Instruments and Hedging Activities	113
	Note 10—Stockholders’ Equity	123
	Note 11—Earnings Per Common Share	127
	Note 12—Fair Value Measurement	128
	Note 13—Business Segments and Revenue from Contracts with Customers	136
	Note 14—Commitments, Contingencies, Guarantees and Others	140





Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”)	4
	Introduction	4

	Selected Financial Data	6
	Executive Summary	9
	Consolidated Results of Operations	10
	Consolidated Balance Sheets Analysis	18
	Off-Balance Sheet Arrangements	20
	Business Segment Financial Performance	21
	Critical Accounting Policies and Estimates	31
	Accounting Changes and Developments	32
	Capital Management	33
	Risk Management	38
	Credit Risk Profile	40
	Liquidity Risk Profile	54
	Market Risk Profile	59
	Supervision and Regulation	62
	Forward-Looking Statements	64
	Supplemental Table	67
	Glossary and Acronyms	69



			1			Capital One Financial Corporation (COF)


Item 3.	Quantitative and Qualitative Disclosures about Market Risk	144































Item 4.	Controls and Procedures	144












PART II—OTHER INFORMATION		145
Item 1.	Legal Proceedings	145
Item 1A.	Risk Factors	145
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	145
Item 3.	Defaults Upon Senior Securities	145
Item 4.	Mine Safety Disclosures	145
Item 5.	Other Information	145
Item 6.	Exhibits	146





EXHIBIT INDEX		147
SIGNATURES		148



			2			Capital One Financial Corporation (COF)

INDEX OF MD&A AND SUPPLEMENTAL TABLE


MD&A Tables:		Page
1	Consolidated Financial Highlights	6
2	Average Balances, Net Interest Income and Net Interest Margin	11
3	Rate/Volume Analysis of Net Interest Income	14
4	Non-Interest Income	15
5	Non-Interest Expense	17

6	Loans Held for Investment	19
7	Funding Sources Composition	19
8	Business Segment Results	22
9	Credit Card Business Results	23
9.1	Domestic Card Business Results	25
10	Consumer Banking Business Results	26
11	Commercial Banking Business Results	28
12	Other Category Results	30
13	Capital Ratios Under Basel III	35
14	Regulatory Risk-Based Capital Components and Regulatory Capital Metrics	36
15	Preferred Stock Dividends Paid Per Share	37
16	Portfolio Composition of Loans Held for Investment	40

17	Credit Card Portfolio by Geographic Region	41
18	Consumer Banking Portfolio by Geographic Region	42
19	Commercial Real Estate Portfolio by Region	43
20	Commercial Loans by Industry	44
21	Credit Score Distribution	45
22	30+ Day Delinquencies	46
23	Aging and Geography of 30+ Day Delinquent Loans	47
24	90+ Day Delinquent Loans Accruing Interest	48
25	Nonperforming Loans and Other Nonperforming Assets	49
26	Net Charge-Offs	50

27	Allowance for Credit Losses and Reserve for Unfunded Lending Commitments Activity	52

28	Liquidity Reserves	54
29	Deposits Composition and Average Deposits Interest Rates	56

30	Long-Term Debt Funding Activities	57
31	Senior Unsecured Long-Term Debt Credit Ratings	58

32	Interest Rate Sensitivity Analysis	61


Supplemental Table:





A	Reconciliation of Non-GAAP Measures	67



			3			Capital One Financial Corporation (COF)

Table of Contents

PART I—FINANCIAL INFORMATION

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”)

This discussion contains forward-looking statements that are based upon management’s current expectations and are subject to significant uncertainties and changes in circumstances. Please review “Forward-Looking Statements” for more information on the forward-looking statements in this Quarterly Report on Form 10-Q (“this Report”). All statements that address operating performance, events or developments that we expect or anticipate will occur in the future are forward-looking statements. Our actual results may differ materially from those included in these forward-looking statements due to a variety of factors including, but not limited to, those described in “Part I—Item 1A. Risk Factors” in our 2023 Annual Report on Form 10-K (“2023 Form 10-K”) and “Part II—Item 1A. Risk Factors” in this Report. Unless otherwise specified, references to notes to our consolidated financial statements refer to the notes to our consolidated financial statements as of June 30, 2024 included in this Report.

Management monitors a variety of key indicators to evaluate our business results and financial condition. The following MD&A is provided as a supplement to, and should be read in conjunction with, our consolidated financial statements and related notes in this Report and the more detailed information contained in our 2023 Form 10-K.

CAPITAL ONE FINANCIAL CORP [COF-PI] Filings
CAPITAL ONE FINANCIAL CORP [COF] Filings
CAPITAL ONE FINANCIAL CORP [COF-PJ] Filings
CAPITAL ONE FINANCIAL CORP [COF-PK] Filings
CAPITAL ONE FINANCIAL CORP [COF-PL] Filings
CAPITAL ONE FINANCIAL CORP [COF-PN] Filings
10-Q	[2024-08-01]
10-Q	[2024-05-02]
10-K	[2024-02-23]
10-Q	[2023-11-02]
10-Q	[2023-07-27]
10-Q	[2023-05-05]
10-K	[2023-02-24]
10-Q	[2022-11-04]
10-Q	[2022-07-29]
10-Q	[2022-05-10]
10-K	[2022-02-25]
10-Q	[2021-11-05]
10-Q	[2021-07-30]
10-Q	[2021-05-07]
10-K	[2021-02-25]
10-Q	[2020-11-02]
10-Q	[2020-08-06]
10-Q	[2020-05-01]
10-K	[2020-02-20]
10-Q	[2019-10-31]
10-Q	[2019-07-31]
10-Q	[2019-05-01]
10-K	[2019-02-20]
10-Q	[2018-11-01]
10-Q	[2018-07-27]
10-Q	[2018-05-02]
10-K	[2018-02-21]
10-Q	[2017-11-01]
10-Q	[2017-07-28]
10-Q	[2017-05-03]
10-K	[2017-02-23]
10-Q	[2016-11-03]
10-Q	[2016-08-01]
10-Q	[2016-05-04]
10-K	[2016-02-25]
10-Q	[2015-11-02]
10-Q	[2015-08-03]
10-Q	[2015-05-05]
10-K	[2015-02-24]
10-Q	[2014-11-03]
10-Q	[2014-08-05]
10-Q	[2014-05-06]
10-K	[2014-02-27]
10-Q	[2013-11-06]
10-Q	[2013-08-08]
10-Q	[2013-05-09]
10-K	[2013-02-28]
10-Q	[2012-11-08]
10-Q	[2012-08-09]
10-Q	[2012-05-08]
10-K	[2012-02-29]

CAPITAL ONE FINANCIAL CORP [COF-PI] Filings

CAPITAL ONE FINANCIAL CORP [COF] Filings

CAPITAL ONE FINANCIAL CORP [COF-PJ] Filings

CAPITAL ONE FINANCIAL CORP [COF-PK] Filings

CAPITAL ONE FINANCIAL CORP [COF-PL] Filings

CAPITAL ONE FINANCIAL CORP [COF-PN] Filings