8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of

The Securities Exchange Act of 1934

April 18, 2013

Date of Report (Date of earliest event reported)

Commission File No. 1-13300

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

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02. Results of Operations and Financial Condition.

On April 18, 2013, Capital One Financial Corporation (the “Company”) issued a press release announcing its financial results for the first quarter ended March 31, 2013. Copies of the Company’s press release and financial supplement are attached and furnished herewith as Exhibits 99.1 and 99.2 to this Form 8-K and are incorporated herein by reference and shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that section.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.

Exhibit     No.	Description of Exhibit
99.1	Press Release, dated April 18, 2013 – First Quarter 2013
99.2	Financial Supplement – First Quarter 2013

Earnings Conference Call Webcast Information.

The Company will hold an earnings conference call on April 18, 2013 at 5:00 p.m. Eastern Time. The conference call will be accessible through live webcast. Interested investors and other individuals can access the webcast via the Company’s home page (http://www.capitalone.com). Choose “Investors” to access the Investor Center and view and/or download the earnings press release, the financial supplement, including a reconciliation of non-GAAP financial measures, and the earnings release presentation. The replay of the webcast will be archived on the Company’s Web site through May 2, 2013 at 5:00 p.m. Eastern Time.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Company has duly caused this Current Report on Form 8-K to be signed on its behalf by the undersigned, hereunto duly authorized.

	CAPITAL ONE FINANCIAL CORPORATION
Dated: April 18, 2013	By:	/s/ Gary L. Perlin
		Gary L. Perlin
		Chief Financial Officer

EX-99.1

Exhibit 99.1

FOR IMMEDIATE RELEASE: April 18, 2013

Capital One Reports First Quarter 2013 Net Income of $1.1 billion,

or $1.79 per share

McLean, Va. (April 18, 2013) – Capital One Financial Corporation (NYSE: COF) today announced net income for the first quarter of 2013 of $1.1 billion, or $1.79 per diluted common share, compared with net income of $843 million, or $1.41 per diluted common share, for the fourth quarter of 2012 and net income of $1.4 billion, or $2.72 per diluted common share, for the first quarter of 2012. Without the impact of a bargain purchase gain related to the ING Direct acquisition, first quarter 2012 net income would have been $809 million, or $1.56 per diluted common share.

“Each of our businesses delivered solid results in the quarter and our balance sheet is strong,” said Richard D. Fairbank, Chairman and Chief Executive Officer. “We continue to generate significant capital and we’re focused on returning capital to our shareholders.”

All comparisons in the following paragraphs are for the first quarter of 2013 compared with the fourth quarter of 2012 unless otherwise noted.

Loans and Deposits

Period-end loans held for investment decreased $14.6 billion, or 7 percent, to $191.3 billion. The decrease was due in part to the movement of the Best Buy portfolio of approximately $7 billion of loans to held for sale from held for investment during the quarter. Domestic Card period-end loans decreased $12.8 billion, or 15 percent, to $70.4 billion, driven largely by the movement of loans to held for sale, seasonally lower balances and purchase volumes, and the anticipated run-off of certain acquired loans. Excluding loans reclassified to held for sale during the first quarter, Domestic Card period-end loans decreased $5.6 billion, or 7 percent. Commercial Banking period-end loans increased $330 million, or 0.9 percent, to $39.2 billion, and period-end loans in Auto Finance grew $817 million, or 3 percent, to $27.9 billion. Period-end loans in Home Loans declined $2.2 billion, or 5 percent, to $41.9 billion, driven by the continued anticipated run-off of acquired portfolios.

Capital One First Quarter 2013 Earnings

Page 2

Average loans held for investment in the quarter decreased $6.9 billion, or 3 percent, to $196.0 billion. Average loans in Commercial Banking grew $978 million and Auto Finance average loans grew $596 million. Average Domestic Card loans declined $6.0 billion, or 7 percent. Average Home Loans decreased by $2.2 billion, driven largely by the continued anticipated run-off of acquired portfolios.

Period-end total deposits were essentially flat at $212.4 billion, while average deposits declined $1.9 billion. Deposit interest rates declined 4 basis points to 0.68 percent.

Revenues

Total net revenue for the first quarter of 2013 was $5.6 billion, a decline of $73 million, or 1 percent, driven principally by lower average loan balances and purchase volume partially offset by higher margins.

The reduction in interest expense and release of cash related to the redemption of high coupon trust preferred securities contributed to an increase in net interest margin of 19 basis points to 6.71 percent. Cost of funds in the first quarter declined 16 basis points to 0.83 percent.

Non-Interest Expense

Non-interest expense was $3.0 billion, a decrease of $227 million, or 7 percent, driven largely by the lack of seasonally high year-end expenses recorded in the fourth quarter and lower amortization expense and acquisition-related costs including integration. Marketing expense decreased $76 million in the quarter to $317 million.

Provision for Credit Losses

Provision for credit losses was $885 million in the quarter, a decrease of $266 million, largely driven by a $261 million release in allowance. The largest component of the allowance release was in Domestic Card, due to better than anticipated credit performance in the quarter, including delinquencies, and an improvement in drivers for the company’s future outlook.

Capital One First Quarter 2013 Earnings

Page 3

The net charge-off rate was 2.20 percent in the first quarter of 2013, a decline of 6 basis points from 2.26 percent in the fourth quarter.

Discontinued Operations

The company recorded a $107 million provision for mortgage representation and warranty reserve attributable to Discontinued Operations. This provision reflects the company’s assessment of probable and estimable losses in light of the current environment, principally attributable to non-agency mortgage related legal developments.

Net Income

Net income increased $223 million, or 26 percent, in the first quarter driven primarily by lower non-interest expense and a reduction in credit expenses in the quarter.

Capital Ratios

The company’s estimated Tier 1 common ratio was approximately 11.8 percent as of March 31, 2013, up from 11.0 percent as of December 31, 2012.

Detailed segment information will be available in the company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2013.

Earnings Conference Call Webcast Information

The company will hold an earnings conference call on April 18, 2013 at 5:00 PM, Eastern Daylight Time. The conference call will be accessible through live webcast. Interested investors and other individuals can access the webcast via the company’s home page (www.capitalone.com). Choose “Investors” to access the Investor Center and view and/or download the earnings press release, the financial supplement, including a reconciliation to GAAP financial measures, and the earnings release presentation. The replay of the webcast will be archived on the company’s website through May 2, 2013 at 5:00 PM.

Capital One First Quarter 2013 Earnings

Page 4

Forward-looking Statements

The company cautions that its current expectations in this release dated April 18, 2013 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 acquisition of ING Direct and HSBC’s U.S. Card business (the “Acquisitions”) and the sale of the Best Buy loan portfolio (the “Sale Transaction”); 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); 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 and regulations governing bank capital and liquidity standards, including Basel-related initiatives and potential changes to financial accounting and reporting standards; the possibility that the company may not fully realize the projected cost savings and other projected benefits of the Acquisitions; difficulties and delays in integrating the assets and businesses acquired in the Acquisitions; business disruption following the Acquisitions; diversion of management time on issues related to the Acquisitions, including integration of the assets and businesses acquired; reputational risks and the reaction of customers and counterparties to the Acquisitions; disruptions relating to the Acquisitions 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 Acquisitions; the possibility that conditions to the Sale Transaction are not received or satisfied on a timely basis or at all; the possibility that modifications to the terms of the Sale Transaction may be required in order to obtain or satisfy such conditions; changes in the anticipated timing for closing the Sale Transaction; developments, changes or actions relating to any litigation matter involving the company; the inability to sustain revenue and earnings growth; 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

Capital One First Quarter 2013 Earnings

Page 5

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 the nature of our business; 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; any significant disruption of, or loss of public confidence in, the internet affecting the ability of the company’s customers to access their accounts and conduct banking transactions; 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, 2012.

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 $212.4 billion in deposits and $300.2 billion in total assets as of March 31, 2013. Headquartered in McLean, Virginia, Capital One offers a broad spectrum of financial products and services to consumers, small businesses and commercial clients through a variety of channels. Capital One, N.A. has more than 900 branch locations primarily in New York, New Jersey, Texas, Louisiana, Maryland, Virginia and the District of Columbia. A Fortune 500 company, Capital One trades on the New York Stock Exchange under the symbol “COF” and is included in the S&P 100 index.

EX-99.2

Exhibit 99.2

Capital One Financial Corporation

Financial Supplement

First Quarter 2013 ^{(1) (2) (3)}

Table of Contents

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

⁽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 March 31, 2013 Quarterly Report on Form 10-Q once it is filed with the Securities and Exchange Commission.

⁽²⁾  References to ING Direct refer to the business and assets acquired and liabilities assumed in the February 17, 2012 acquisition. References to the 2012 U.S. card acquisition refer to the May 1, 2012 transaction in which we acquired substantially all of HSBC’s credit card and private-label credit card business in the United States.

⁽³⁾  We use the term “acquired loans” to refer to a limited portion of the credit card loans acquired in the 2012 U.S. card acquisition and the substantial majority of loans acquired in the ING Direct and Chevy Chase Bank (“CCB”) acquisitions, which were recorded at fair value at acquisition and subsequently accounted for based on estimated cash flows expected to be collected over the life of the loans (under the accounting standard formerly known as “SOP 03-3”). Because SOP 03-3 takes into consideration future credit losses expected to be incurred over the life of the loans, there are no charge-offs or an allowance associated with these loans unless the estimated cash flows expected to be collected decrease subsequent to acquisition. In addition, these loans are not classified as delinquent or nonperforming even though the customer may be contractually past due because we expect that we will fully collect the carrying value of these loans. The accounting and classification of these loans may significantly alter some of our reported credit quality metrics. We therefore supplement certain reported credit quality metrics with metrics adjusted to exclude the impact of these acquired loans.

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 1: Financial Summary—Consolidated ^(1)(2)(3)

(Dollars in millions, except per share data and as noted) (unaudited)	2013 Q1			2012 Q4			2012 Q3			2012 Q2			2012 Q1
Earnings
Net interest income	$	4,570		$	4,528		$	4,646		$	4,001		$	3,414
Non-interest income(4) (5)		981			1,096			1,136			1,054			1,521
Total net revenue(6)		5,551			5,624			5,782			5,055			4,935
Provision for credit losses		885			1,151			1,014			1,677			573
Non-interest expense:
Marketing		317			393			316			334			321
Amortization of intangibles(7)		177			191			199			157			62
Acquisition-related(8)		46			69			48			133			86
Operating expenses		2,488			2,602			2,482			2,518			2,035
Total non-interest expense		3,028			3,255			3,045			3,142			2,504
Income from continuing operations before income taxes		1,638			1,218			1,723			236			1,858
Income tax provision		494			370			535			43			353
Income from continuing operations, net of tax		1,144			848			1,188			193			1,505
Loss from discontinued operations, net of tax(4)		(78	)		(5	)		(10	)		(100	)		(102	)
Net income		1,066			843			1,178			93			1,403
Dividends and undistributed earnings allocated to participating securities(9)		(5	)		(3	)		(5	)		(1	)		(7	)
Preferred stock dividends		(13	)		(15	)		—			—			—
Net income available to common stockholders	$	1,048		$	825		$	1,173		$	92		$	1,396
Common Share Statistics
Basic EPS:(9)
Income from continuing operations, net of tax	$	1.94		$	1.43		$	2.05		$	0.33		$	2.94
Loss from discontinued operations, net of tax		(0.13	)		(0.01	)		(0.02	)		(0.17	)		(0.20	)
Net income per common share	$	1.81		$	1.42		$	2.03		$	0.16		$	2.74
Diluted EPS:(9)
Income from continuing operations, net of tax	$	1.92		$	1.42		$	2.03		$	0.33		$	2.92
Loss from discontinued operations, net of tax		(0.13	)		(0.01	)		(0.02	)		(0.17	)		(0.20	)
Net income per common share	$	1.79		$	1.41		$	2.01		$	0.16		$	2.72
Weighted average common shares outstanding (in millions) for:
Basic EPS		580.5			579.2			578.3			577.7			508.7
Diluted EPS		586.3			585.6			584.1			582.8			513.1
Common shares outstanding (period end, in millions)		584.0			582.2			581.3			580.7			580.2
Dividends per common share	$	0.05		$	0.05		$	0.05		$	0.05		$	0.05
Tangible book value per common share (period end)(10)		41.87			40.23			38.70			35.67			39.37
Balance Sheet (Period End)
Loans held for investment(11)	$	191,333		$	205,889		$	203,132		$	202,749		$	173,822
Interest-earning assets		268,479			280,096			270,661			264,331			265,398
Total assets		300,163			312,918			301,989			296,572			294,481
Interest-bearing deposits		191,093			190,018			192,488			193,859			197,254
Total deposits		212,410			212,485			213,255			213,931			216,528
Borrowings		37,492			49,910			38,377			35,874			32,885
Stockholders’ equity		41,296			40,499			39,672			37,192			36,950
Balance Sheet (Quarterly Average Balances)
Average loans held for investment(11)	$	195,997		$	202,944		$	202,856		$	192,632		$	152,900
Average interest-earning assets		272,345			277,886			266,803			265,019			220,246
Average total assets		303,223			308,096			297,154			295,306			246,384
Average interest-bearing deposits		190,612			192,122			193,700			195,597			151,625
Average total deposits		211,555			213,494			213,323			214,914			170,259
Average borrowings		41,574			44,189			36,451			35,418			35,994
Average stockholders’ equity		40,960			40,212			38,535			37,533			32,982

Page 1

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 2: Selected Metrics—Consolidated ^(1)(2)(3)

(Dollars in millions, except per share data and as noted) (unaudited)	2013 Q1			2012 Q4			2012 Q3			2012 Q2			2012 Q1
Performance Metrics
Net interest income growth (quarter over quarter)		1	%		(3	)%		16	%		17	%		7	%
Non-interest income growth (quarter over quarter)		(10	)		(4	)		8			(31	)		75
Total net revenue growth (quarter over quarter)		(1	)		(3	)		14			2			22
Total net revenue margin(12)		8.15			8.10			8.67			7.63			8.96
Net interest margin(13)		6.71			6.52			6.97			6.04			6.20
Return on average assets(14)		1.51			1.10			1.60			0.26			2.44
Return on average total stockholders’ equity(15)		11.17			8.44			12.33			2.06			18.25
Return on average tangible common equity(16)		19.09			14.74			21.93			3.53			31.60
Non-interest expense as a % of average loans held for investment(17)		6.18			6.42			6.00			6.52			6.55
Efficiency ratio(18)		54.55			57.88			52.66			62.16			50.74
Effective income tax rate		30.2			30.4			31.1			18.2			19.0
Full-time equivalent employees (in thousands), period end		39.3			39.6			37.6			37.4			34.2
Credit Quality Metrics(11)(19)
Allowance for loan and lease losses	$	4,606		$	5,156		$	5,154		$	4,998		$	4,060
Allowance as a % of loans held for investment		2.41	%		2.50	%		2.54	%		2.47	%		2.34	%
Allowance as a % of loans held for investment (excluding acquired loans)		2.91			3.02			3.11			3.08			3.08
Net charge-offs	$	1,079		$	1,150		$	887		$	738		$	780
Net charge-off rate(20)		2.20	%		2.26	%		1.75	%		1.53	%		2.04	%
Net charge-off rate (excluding acquired loans)(20)		2.69			2.78			2.18			1.96			2.40
30+ day performing delinquency rate		2.37			2.70			2.54			2.06			2.23
30+ day performing delinquency rate (excluding acquired loans)		2.90			3.29			3.15			2.59			2.96
30+ day delinquency rate(21)		**			3.09			2.92			2.43			2.69
30+ day delinquency rate (excluding acquired loans)(21)		**			3.77			3.62			3.06			3.57
Capital Ratios (22)
Tier 1 common ratio		11.8	%		11.0	%		10.7	%		9.9	%		11.9	%
Tier 1 risk-based capital ratio		12.2			11.3			12.7			11.6			13.9
Total risk-based capital ratio		14.4			13.6			15.0			14.0			16.5
Tangible common equity (“TCE”) ratio		8.6			7.9			7.9			7.4			8.2

Page 2

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 3: Consolidated Statements of Income^(1)(2)(3)

	Three Months Ended
(Dollars in millions, except per share data) (unaudited)	March 31, 2013			December 31, 2012			March 31, 2012
Interest income:
Loans, including loans held for sale	$	4,649		$	4,727		$	3,657
Investment securities		374			361			298
Other		28			27			24
Total interest income		5,051			5,115			3,979
Interest expense:
Deposits		326			348			311
Securitized debt obligations		56			58			80
Senior and subordinated notes		82			85			88
Other borrowings		17			96			86
Total interest expense		481			587			565
Net interest income		4,570			4,528			3,414
Provision for credit losses		885			1,151			573
Net interest income after provision for credit losses		3,685			3,377			2,841
Non-interest income:
Service charges and other customer-related fees		550			595			415
Interchange fees, net		445			459			328
Net other-than-temporary impairment losses recognized in earnings		(25	)		(12	)		(14	)
Bargain purchase gain(5)		—			—			594
Other		11			54			198
Total non-interest income		981			1,096			1,521
Non-interest expense:
Salaries and associate benefits		1,080			1,039			864
Occupancy and equipment		350			380			270
Marketing		317			393			321
Professional services		307			354			293
Communications and data processing		210			205			172
Amortization of intangibles(7)		177			191			62
Acquisition-related(8)		46			69			86
Other		541			624			436
Total non-interest expense		3,028			3,255			2,504
Income from continuing operations before income taxes		1,638			1,218			1,858
Income tax provision		494			370			353
Income from continuing operations, net of tax		1,144			848			1,505
Loss from discontinued operations, net of tax(4)		(78	)		(5	)		(102	)
Net income		1,066			843			1,403
Dividends and undistributed earnings allocated to participating securities(9)		(5	)		(3	)		(7	)
Preferred stock dividends		(13	)		(15	)		—
Net income available to common stockholders	$	1,048		$	825		$	1,396
Basic earnings per common share:(9)
Income from continuing operations	$	1.94		$	1.43		$	2.94
Loss from discontinued operations		(0.13	)		(0.01	)		(0.20	)
Net income per basic common share	$	1.81		$	1.42		$	2.74
Diluted earnings per common share:(9)
Income from continuing operations	$	1.92		$	1.42		$	2.92
Loss from discontinued operations		(0.13	)		(0.01	)		(0.20	)
Net income per diluted common share	$	1.79		$	1.41		$	2.72
Weighted average common shares outstanding (in millions) for:
Basic EPS		580.5			579.2			508.7
Diluted EPS		586.3			585.6			513.1
Dividends paid per common share	$	0.05		$	0.05		$	0.05

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CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 4: Consolidated Balance Sheets

(Dollars in millions)(unaudited)	March 31, 2013			December 31, 2012			March 31, 2012
Assets:
Cash and cash equivalents:
Cash and due from banks	$	1,947		$	3,440		$	2,183
Interest-bearing deposits with banks		4,563			7,617			28,165
Federal funds sold and securites purchased under agreements to resell		236			1			308
Total cash and cash equivalents		6,746			11,058			30,656
Restricted cash for securitization investors		1,018			428			1,090
Securities available for sale, at fair value		63,968			63,979			60,810
Loans held for investment:
Unsecuritized loans held for investment		150,721			162,059			128,927
Restricted loans for securitization investors		40,612			43,830			44,895
Total loans held for investment		191,333			205,889			173,822
Less: Allowance for loan and lease losses		(4,606	)		(5,156	)		(4,060	)
Net loans held for investment		186,727			200,733			169,762
Loans held for sale, at lower of cost or fair value		6,410			201			627
Premises and equipment, net		3,736			3,587			3,062
Interest receivable		1,378			1,694			1,157
Goodwill		13,900			13,904			13,595
Other		16,280			17,334			13,722
Total assets	$	300,163		$	312,918		$	294,481
Liabilities:
Interest payable	$	310		$	450		$	384
Customer deposits:
Non-interest bearing deposits		21,317			22,467			19,274
Interest-bearing deposits		191,093			190,018			197,254
Total customer deposits		212,410			212,485			216,528
Securitized debt obligations		11,046			11,398			15,474
Other debt:
Federal funds purchased and securities loaned or sold under agreements to repurchase		855			1,248			770
Senior and subordinated notes		13,255			12,686			11,948
Other borrowings		12,336			24,578			4,693
Total other debt		26,446			38,512			17,411
Other liabilities		8,655			9,574			7,734
Total liabilities		258,867			272,419			257,531
Stockholders’ equity:
Preferred stock		—			—			—
Common stock		6			6			6
Additional paid-in capital, net		26,256			26,188			25,136
Retained earnings		17,876			16,853			14,841
Accumulated other comprehensive income		473			739			253
Treasury stock, at cost		(3,315	)		(3,287	)		(3,286	)
Total stockholders’ equity		41,296			40,499			36,950
Total liabilities and stockholders’ equity	$	300,163		$	312,918		$	294,481

Page 4

CAPITAL ONE FINANCIAL CORPORATION (COF)

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

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

⁽²⁾  Results for Q2 2012 and thereafter include the impact of the May 1, 2012 closing of the 2012 U.S. card acquisition, which resulted in the addition of $28.2 billion in credit card receivables at closing.

⁽³⁾  Results for Q1 2012 and thereafter include the impact of the February 17, 2012 acquisition of ING Direct, which resulted in the addition of loans of $40.4 billion, other assets of $53.9 billion and deposits of $84.4 billion at acquisition.

⁽⁴⁾  We recorded a provision for mortgage representation and warranty losses of $97 million in Q1 2013. We did not record a provision for mortgage representation and warranty losses in Q4 2012 or Q3 2012. We recorded a provision for mortgage representation and warranty losses of $180 million in Q2 2012 and $169 million in Q1 2012. The majority of the provision for representation and warranty losses is generally included net of tax in discontinued operations, with the remaining amount included pre-tax in non-interest income. The mortgage representation and warranty reserve increased to $994 million as of March 31, 2013, from $899 million as of December 31, 2012.

⁽⁵⁾  Includes a bargain purchase gain of $594 million recognized in earnings in Q1 2012 attributable to the February 17, 2012 acquisition of ING Direct. Represents the excess of the fair value of the net assets acquired in the ING Direct acquisition as of the acquisition date of February 17, 2012 over the consideration transferred.

⁽⁶⁾  Total net revenue was reduced by $265 million in Q1 2013, $318 million in Q4 2012, $185 million in Q3 2012, $311 million in Q2 2012 and $123 million in Q1 2012 for the estimated uncollectible amount of billed finance charges and fees. Premium amortization related to the 2012 U.S. card and ING Direct acquisitions reduced revenue by $111 million in Q1 2013, $124 million in Q4 2012, $133 million in Q3 2012, $104 million in Q2 2012 and $30 million in Q1 2012.

⁽⁷⁾  Includes purchased credit card relationship (“PCCR”) intangible amortization of $116 million in Q1 2013, $127 million in Q4 2012, $131 million in Q3 2012, $88 million in Q2 2012 and $4 million in Q1 2012, the substantial majority of which is attributable to the 2012 U.S. card acquisition. Includes core deposit intangible amortization of $44 million in Q1 2013, $47 million in Q4 2012, $49 million in Q3 2012, $51 million in Q2 2012 and $46 million in Q1 2012.

⁽⁸⁾  Acquisition-related costs include transaction costs, legal and other professional or consulting fees, restructuring costs and integration expense.

⁽⁹⁾  Dividends and undistributed earnings allocated to participating securities and EPS are computed independently for each period. Accordingly, the sum of each quarter may not agree to the year-to-date total.

⁽¹⁰⁾  Tangible book value per common share is a non-GAAP measure calculated based on tangible common equity divided by common shares outstanding. See “Table 13: Reconciliation of Non-GAAP Measures and Calculation of Regulatory Capital Measures” for additional information.

⁽¹¹⁾  Loans held for investment includes acquired loans accounted for based on cash flows expected to be collected. See Table “Table 12: Notes to Loan and Business Segment Disclosures (Tables 7 — 11)” for information on the amount of acquired loans for each of the periods presented.

⁽¹²⁾  Calculated based on annualized total net revenue for the period divided by average interest-earning assets for the period.

⁽¹³⁾  Calculated based on annualized net interest income for the period divided by average interest-earning assets for the period.

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

⁽¹⁵⁾  Calculated based on annualized income from continuing operations, net of tax, for the period divided by average stockholders’ equity for the period.

⁽¹⁶⁾  Calculated based on annualized income from continuing operations, net of tax, for the period divided by average tangible common equity for the period. See “Table 13: Reconciliation of Non-GAAP Measures and Calculation of Regulatory Capital Measures” for additional information.

⁽¹⁷⁾  Calculated based on annualized non-interest expense for the period divided by average loans held for investment for the period.

⁽¹⁸⁾  Calculated based on non-interest expense, excluding goodwill impairment charges, for the period divided by total net revenue for the period.

⁽¹⁹⁾  Loans acquired as part of the 2012 U.S. card, ING Direct and CCB acquisitions classified as held for investment are included in the denominator used in calculating our reported credit quality metrics. We supplement certain reported credit quality metrics with metrics adjusted to exclude from the denominator acquired loans accounted for based on estimated expected cash flows to be collected (formerly SOP 03-3).

⁽²⁰⁾  Calculated based on annualized net charge-offs for the period divided by average loans held for investment for the period.

⁽²¹⁾  The 30+ day delinquency rate as of the end of Q1 2013 will be provided in the Quarterly Report on Form 10-Q for the quarter ended March 31, 2013.

⁽²²⁾  Capital ratios as of the end of Q1 2013 are preliminary and therefore subject to change. TCE ratio is a non-GAAP capital ratio. See “Table 13: Reconciliation of Non-GAAP Measures and Calculation of Regulatory Capital Measures” for information on the calculation of each of these ratios.

Page 5

CAPITAL ONE FINANCIAL CORPORATION (COF)

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

	2013 Q1							2012 Q4							2012 Q1
	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, including loans held for sale	$	200,441	$	4,649		9.28	%	$	203,132	$	4,727		9.31	%	$	153,332	$	3,657		9.54	%
Investment securities		64,798		374		2.31			64,174		361		2.25			50,543		298		2.36
Cash equivalents and other		7,106		28		1.58			10,580		27		1.02			16,371		24		0.59
Total interest-earning assets	$	272,345	$	5,051		7.42	%	$	277,886	$	5,115		7.36	%	$	220,246	$	3,979		7.23	%
Interest-bearing liabilities:
Interest-bearing deposits	$	190,612	$	326		0.68	%	$	192,122	$	348		0.72	%	$	151,625	$	311		0.82	%
Securitized debt obligations		11,758		56		1.91			12,119		58		1.91			16,185		80		1.98
Senior and subordinated notes		11,984		82		2.74			11,528		85		2.95			10,268		88		3.43
Other borrowings		17,832		17		0.38			20,542		96		1.87			9,541		86		3.61
Total interest-bearing liabilities	$	232,186	$	481		0.83	%	$	236,311	$	587		0.99	%	$	187,619	$	565		1.20	%
Net interest income/spread			$	4,570		6.59	%			$	4,528		6.37	%			$	3,414		6.03	%
Impact of non-interest bearing funding						0.12							0.15							0.17
Net interest margin						6.71	%						6.52	%						6.20	%

Page 6

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 7: Loan Information and Performance Statistics^(1)(2)(3)(4)

	2013			2012			2012			2012			2012
(Dollars in millions)(unaudited)	Q1			Q4			Q3			Q2			Q1
Period-end Loans Held For Investment
Credit card:
Domestic credit card	$	70,361		$	83,141		$	80,621		$	80,798		$	53,173
International credit card		8,036			8,614			8,412			8,116			8,303
Total credit card		78,397			91,755			89,033			88,914			61,476
Consumer banking:
Automobile		27,940			27,123			26,434			25,251			23,568
Home loan		41,931			44,100			46,275			48,224			49,550
Retail banking		3,742			3,904			4,029			4,140			4,182
Total consumer banking		73,613			75,127			76,738			77,615			77,300
Commercial banking:
Commercial and multifamily real estate		17,878			17,732			16,963			16,254			15,702
Commercial and industrial		20,127			19,892			18,965			18,467			17,761
Total commercial lending		38,005			37,624			35,928			34,721			33,463
Small-ticket commercial real estate		1,145			1,196			1,281			1,335			1,443
Total commercial banking		39,150			38,820			37,209			36,056			34,906
Other loans		173			187			152			164			140
Total	$	191,333		$	205,889		$	203,132		$	202,749		$	173,822
Average Loans Held For Investment
Credit card:
Domestic credit card	$	74,714		$	80,718		$	80,502		$	71,468		$	54,131
International credit card		8,238			8,372			8,154			8,194			8,301
Total credit card		82,952			89,090			88,656			79,662			62,432
Consumer banking:
Automobile		27,477			26,881			25,923			24,487			22,582
Home loan		43,023			45,250			47,262			48,966			29,502
Retail banking		3,786			3,967			4,086			4,153			4,179
Total consumer banking		74,286			76,098			77,271			77,606			56,263
Commercial banking:
Commercial and multifamily real estate		17,454			17,005			16,654			15,838			15,514
Commercial and industrial		19,949			19,344			18,817			18,001			17,038
Total commercial lending		37,403			36,349			35,471			33,839			32,552
Small-ticket commercial real estate		1,173			1,249			1,296			1,388			1,480
Total commercial banking		38,576			37,598			36,767			35,227			34,032
Other loans		183			158			162			137			173
Total	$	195,997		$	202,944		$	202,856		$	192,632		$	152,900
Net Charge-off Rates
Credit card:
Domestic credit card		4.43	%		4.35	%		3.04	%		2.86	%		3.92	%
International credit card		4.59			3.99			4.95			5.49			5.52
Total credit card		4.45			4.32			3.22			3.13			4.14
Consumer banking:
Automobile		1.78			2.24			1.79			1.11			1.41
Home loan		0.04			(0.06	)		0.28			0.09			0.20
Retail banking		1.85			2.45			1.20			1.27			1.39
Total consumer banking		0.78			0.88			0.83			0.48			0.77
Commercial banking:
Commercial and multifamily real estate		0.01			(0.08	)		(0.05	)		0.18			0.09
Commercial and industrial		0.04			0.13			—			0.10			(0.08	)
Total commercial lending		0.03			0.03			(0.03	)		0.14			—
Small-ticket commercial real estate		1.41			2.02			0.79			1.46			4.24
Total commercial banking		0.07			0.10			—			0.19			0.19
Other loans		14.53			24.23			30.11			18.04			23.30
Total		2.20	%		2.26	%		1.75	%		1.53	%		2.04	%
30+ Day Performing Delinquency Rates
Credit card:
Domestic credit card		3.37	%		3.61	%		3.52	%		2.79	%		3.25	%
International credit card		4.04			3.58			4.92			4.84			5.14
Total credit card		3.44	%		3.61	%		3.65	%		2.97	%		3.51	%
Consumer banking:
Automobile		5.58	%		7.00	%		6.12	%		5.20	%		4.87	%
Home loan		0.14			0.13			0.15			0.15			0.15
Retail banking		0.83			0.76			0.73			0.69			0.80
Total consumer banking		2.24	%		2.65	%		2.23	%		1.82	%		1.63	%
Nonperforming Asset Rates(5)
Credit card:
International credit card		1.13	%		1.16	%		—	%		—	%		—	%
Total credit card		0.12	%		0.11	%		—	%		—	%		—	%
Consumer banking:
Automobile		0.40	%		0.63	%		0.52	%		0.41	%		0.32	%
Home loan		1.02			1.00			0.98			0.94			0.94
Retail banking		1.24			1.85			2.25			2.21			2.25
Total consumer banking		0.80	%		0.91	%		0.89	%		0.83	%		0.82	%
Commercial banking:
Commercial and multifamily real estate		0.76	%		0.82	%		1.04	%		1.28	%		1.55	%
Commercial and industrial		0.64			0.72			0.68			0.81			0.69
Total commercial lending		0.69	%		0.77	%		0.85	%		1.03	%		1.09	%
Small-ticket commercial real estate		2.42			0.97			1.49			1.25			4.35
Total commercial banking		0.74	%		0.77	%		0.87	%		1.04	%		1.23	%

Page 7

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 8: Financial & Statistical Summary—Credit Card Business⁽²⁾⁽⁴⁾

	2013			2012			2012			2012			2012
(Dollars in millions) (unaudited)	Q1			Q4			Q3			Q2			Q1
Credit Card
Earnings:
Net interest income	$	2,830		$	2,849		$	2,991		$	2,350		$	1,992
Non-interest income		821			883			826			771			598
Total net revenue		3,651			3,732			3,817			3,121			2,590
Provision for credit losses		743			1,000			892			1,711			458
Non-interest expense		1,848			1,933			1,790			1,863			1,268
Income (loss) from continuing operations before taxes		1,060			799			1,135			(453	)		864
Income tax provision (benefit)		374			279			394			(156	)		298
Income (loss) from continuing operations, net of tax	$	686		$	520		$	741		$	(297	)	$	566
Selected performance metrics:
Period-end loans held for investment	$	78,397		$	91,755		$	89,033		$	88,914		$	61,476
Average loans held for investment		82,952			89,090			88,656			79,662			62,432
Average yield on loans held for investment(10)		15.16	%		14.33	%		15.03	%		13.42	%		14.41	%
Total net revenue margin(11)		17.61			16.76			17.22			15.67			16.59
Net charge-off rate		4.45			4.32			3.22			3.13			4.14
30+ day performing delinquency rate		3.44			3.61			3.65			2.97			3.51
30+ day delinquency rate(7)		**			3.69			3.65			2.97			3.51
Nonperforming loan rate(5)		0.12			0.11			—			—			—
PCCR intangible amortization	$	116		$	127		$	131		$	88		$	4
Purchase volume(6)		45,098			52,853			48,020			45,228			34,498
Domestic Card
Earnings:
Net interest income	$	2,556		$	2,583		$	2,715		$	2,118		$	1,713
Non-interest income		724			798			722			708			497
Total net revenue		3,280			3,381			3,437			2,826			2,210
Provision for credit losses		647			911			811			1,600			361
Non-interest expense		1,633			1,727			1,584			1,634			1,052
Income (loss) from continuing operations before taxes		1,000			743			1,042			(408	)		797
Income tax provision (benefit)		356			263			369			(144	)		282
Income (loss) from continuing operations, net of tax	$	644		$	480		$	673		$	(264	)	$	515
Selected performance metrics:
Period-end loans held for investment	$	70,361		$	83,141		$	80,621		$	80,798		$	53,173
Average loans held for investment		74,714			80,718			80,502			71,468			54,131
Average yield on loans held for investment(10)		15.07	%		14.20	%		14.88	%		13.33	%		14.11	%
Total net revenue margin(11)		17.56			16.75			17.08			15.82			16.33
Net charge-off rate		4.43			4.35			3.04			2.86			3.92
30+ day performing delinquency rate		3.37			3.61			3.52			2.79			3.25
30+ day delinquency rate(7)		**			3.61			3.52			2.79			3.25
Purchase volume(6)	$	41,831		$	48,918		$	44,552		$	41,807		$	31,417
International Card
Earnings:
Net interest income	$	274		$	266		$	276		$	232		$	279
Non-interest income		97			85			104			63			101
Total net revenue		371			351			380			295			380
Provision for credit losses		96			89			81			111			97
Non-interest expense		215			206			206			229			216
Income (loss) from continuing operations before taxes		60			56			93			(45	)		67
Income tax provision (benefit)		18			16			25			(12	)		16
Income (loss) from continuing operations, net of tax	$	42		$	40		$	68		$	(33	)	$	51
Selected performance metrics:
Period-end loans held for investment	$	8,036		$	8,614		$	8,412		$	8,116		$	8,303
Average loans held for investment		8,238			8,372			8,154			8,194			8,301
Average yield on loans held for investment		15.97	%		15.59	%		16.47	%		14.18	%		16.38	%
Total net revenue margin		18.01			16.77			18.64			14.40			18.31
Net charge-off rate		4.59			3.99			4.95			5.49			5.52
30+ day performing delinquency rate		4.04			3.58			4.92			4.84			5.14
30+ day delinquency rate(7)		**			4.49			4.92			4.84			5.14
Nonperforming loan rate(5)		1.13			1.16			—			—			—
Purchase volume(6)	$	3,267		$	3,935		$	3,468		$	3,421		$	3,081

Page 8

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 9: Financial & Statistical Summary—Consumer Banking Business⁽³⁾⁽⁴⁾

(Dollars in millions) (unaudited)	2013 Q1			2012 Q4			2012 Q3			2012 Q2			2012 Q1
Consumer Banking
Earnings:
Net interest income	$	1,478		$	1,503		$	1,501		$	1,496		$	1,288
Non-interest income		181			161			260			185			176
Total net revenue		1,659			1,664			1,761			1,681			1,464
Provision for credit losses		175			169			202			44			174
Non-interest expense		890			992			977			959			943
Income from continuing operations before taxes		594			503			582			678			347
Income tax provision		211			178			206			240			123
Income from continuing operations, net of tax	$	383		$	325		$	376		$	438		$	224
Selected performance metrics:
Period-end loans held for investment	$	73,613		$	75,127		$	76,738		$	77,615		$	77,300
Average loans held for investment		74,286			76,098			77,271			77,606			56,263
Average yield on loans held for investment		5.93	%		5.94	%		6.05	%		6.17	%		7.20	%
Auto loan originations	$	3,789		$	3,479		$	3,905		$	4,306		$	4,270
Period-end deposits		172,605			172,396			173,100			173,966			176,007
Average deposits		171,089			172,654			173,334			174,416			129,915
Deposit interest expense rate		0.64	%		0.68	%		0.71	%		0.70	%		0.73	%
Core deposit intangible amortization	$	37		$	39		$	41		$	42		$	37
Net charge-off rate		0.78	%		0.88	%		0.83	%		0.48	%		0.77	%
30+ day performing delinquency rate		2.24			2.65			2.23			1.82			1.63
30+ day delinquency rate(7)		**			3.34			2.91			2.47			2.25
Nonperforming loan rate		0.74			0.85			0.84			0.79			0.77
Nonperforming asset rate(5)		0.80			0.91			0.89			0.83			0.82
Period-end loans serviced for others	$	14,869		$	15,333		$	15,659		$	16,108		$	17,586

Page 9

CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 10: Financial & Statistical Summary—Commercial Banking Business⁽³⁾⁽⁴⁾

	2013			2012			2012			2012			2012
(Dollars in millions) (unaudited)	Q1			Q4			Q3			Q2			Q1
Commercial Banking
Earnings:
Net interest income	$	454		$	450		$	432		$	427		$	431
Non-interest income		84			86			87			82			85
Total net revenue(8)		538			536			519			509			516
Provision for credit losses		(35	)		(20	)		(87	)		(94	)		(69	)
Non-interest expense		258			294			253			251			261
Income from continuing operations before taxes		315			262			353			352			324
Income tax provision		112			93			125			124			114
Income from continuing operations, net of tax	$	203		$	169		$	228		$	228		$	210
Selected performance metrics:
Period-end loans held for investment	$	39,150		$	38,820		$	37,209		$	36,056		$	34,906
Average loans held for investment		38,576			37,598			36,767			35,227			34,032
Average yield on loans held for investment		3.91	%		4.15	%		4.14	%		4.27	%		4.47	%
Period-end deposits	$	30,275		$	29,866		$	28,670		$	27,784		$	28,046
Average deposits		30,335			29,476			28,063			27,943			27,569
Deposit interest expense rate		0.28	%		0.28	%		0.31	%		0.33	%		0.37	%
Core deposit intangible amortization	$	7		$	8		$	8		$	9		$	9
Net charge-off rate		0.07	%		0.10	%		—	%		0.19	%		0.19	%
Nonperforming loan rate		0.71			0.73			0.82			0.99			1.15
Nonperforming asset rate(5)		0.74			0.77			0.87			1.04			1.23
Risk category:(9)
Noncriticized	$	37,359		$	36,839		$	35,112		$	33,745		$	32,339
Criticized performing		1,191			1,340			1,394			1,524			1,695
Criticized nonperforming		277			282			305			356			402
Total risk-rated loans		38,827			38,461			36,811			35,625			34,436
Acquired commercial loans		323			359			398			431			470
Total commercial loans	$	39,150		$	38,820		$	37,209		$	36,056		$	34,906
% of period-end commercial loans held for investment:
Noncriticized		95.4	%		94.9	%		94.4	%		93.6	%		92.6	%
Criticized performing		3.1			3.5			3.7			4.2			4.9
Criticized nonperforming		0.7			0.7			0.8			1.0			1.2
Total risk-rated loans		99.2			99.1			98.9			98.8			98.7
Acquired commercial loans		0.8			0.9			1.1			1.2			1.3
Total commercial loans		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%

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CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 11: Financial & Statistical Summary—Other and Total⁽²⁾⁽³⁾

	2013			2012			2012			2012			2012
(Dollars in millions) (unaudited)	Q1			Q4			Q3			Q2			Q1
Other
Earnings:
Net interest expense	$	(192	)	$	(274	)	$	(278	)	$	(272	)	$	(297	)
Non-interest income		(105	)		(34	)		(37	)		16			662
Total net revenue		(297	)		(308	)		(315	)		(256	)		365
Provision for credit losses		2			2			7			16			10
Non-interest expense		32			36			25			69			32
Income (loss) from continuing operations before taxes		(331	)		(346	)		(347	)		(341	)		323
Income tax benefit		(203	)		(180	)		(190	)		(165	)		(182	)
Income (loss) from continuing operations, net of tax	$	(128	)	$	(166	)	$	(157	)	$	(176	)	$	505
Selected performance metrics:
Period-end loans held for investment	$	173		$	187		$	152		$	164		$	140
Average loans held for investment		183			158			162			137			173
Period-end deposits		9,530			10,223			11,485			12,181			12,475
Average deposits		10,131			11,364			11,926			12,555			12,775
Total
Earnings:
Net interest income	$	4,570		$	4,528		$	4,646		$	4,001		$	3,414
Non-interest income		981			1,096			1,136			1,054			1,521
Total net revenue		5,551			5,624			5,782			5,055			4,935
Provision for credit losses		885			1,151			1,014			1,677			573
Non-interest expense		3,028			3,255			3,045			3,142			2,504
Income from continuing operations before taxes		1,638			1,218			1,723			236			1,858
Income tax provision		494			370			535			43			353
Income from continuing operations, net of tax	$	1,144		$	848		$	1,188		$	193		$	1,505
Selected performance metrics:
Period-end loans held for investment	$	191,333		$	205,889		$	203,132		$	202,749		$	173,822
Average loans held for investment		195,997			202,944			202,856			192,632			152,900
Period-end deposits		212,410			212,485			213,255			213,931			216,528
Average deposits		211,555			213,494			213,323			214,914			170,259

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CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 12: Notes to Loan and Business Segment Disclosures (Tables 7 — 11)

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

⁽²⁾  Results for Q2 2012 and thereafter include the impact of the May 1, 2012 closing of the 2012 U.S. card acquisition, which resulted in the addition of approximately $28.2 billion in credit card receivables at closing.

⁽³⁾  Results for Q1 2012 and thereafter include the impact of the February 17, 2012 acquisition of ING Direct, which resulted in the addition of loans of $40.4 billion, other assets of $53.9 billion and deposits of $84.4 billion at acquisition.

⁽⁴⁾  Loans acquired as part of the 2012 U.S. card, ING Direct and CCB acquisitions are included in the denominator used in calculating our reported credit quality metrics. We therefore present certain reported credit quality metrics, adjusted to exclude from the denominator acquired loans accounted for based on estimated cash flows expected to be collected over the life of the loans (formerly SOP 03-3). The table below presents amounts related to acquired loans accounted for under SOP 03-3.

	2013		2012		2012		2012		2012
(Dollars in millions) (unaudited)	Q1		Q4		Q3		Q2		Q1
Acquired loans accounted for under SOP 03-3:
Period-end unpaid principal balance	$	36,216	$	38,477	$	40,749	$	43,333	$	44,798
Period-end loans held for investment		34,943		37,134		39,388		41,673		43,131
Average loans held for investment		35,706		37,899		40,158		42,182		23,067

⁽⁵⁾  Nonperforming assets consist of nonperforming loans, real estate owned (“REO”) and other 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 other foreclosed assets for each respective category.

⁽⁶⁾  Includes credit card purchase transactions, net of returns. Excludes cash advance transactions.

⁽⁷⁾  The 30+ day delinquency rate as of the end of Q1 2013 will be provided in our Quarterly Report on Form 10-Q for the period ended March 31, 2013.

⁽⁸⁾  Because some of our tax-related commercial investments generate tax-exempt income or tax credits, we make certain reclassifications within our Commercial Banking business results to present revenues on a taxable-equivalent basis, calculated assuming an effective tax rate approximately equal to our federal statutory tax rate of 35%.

⁽⁹⁾  Criticized exposures correspond to the “Special Mention,” “Substandard” and “Doubtful” asset categories defined by bank regulatory authorities.

⁽¹⁰⁾  The transfer of the Best Buy Stores, L.P. (“Best Buy”) portfolio to held for sale resulted in an increase in the average yield for Domestic Card and Total Card of 107 basis points and 97 basis points, respectively, in Q1 2013.

⁽¹¹⁾  The transfer of the Best Buy portfolio to held for sale resulted in an increase in the net revenue margin for Domestic Card and Total Card of 123 basis points and 112 basis points, respectively, in Q1 2013.

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CAPITAL ONE FINANCIAL CORPORATION (COF)

Table 13: 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”) and TCE ratio. The table below provides the details of the calculation of our regulatory capital and non-GAAP capital measures. While our non-GAAP capital measures are widely used by investors, analysts and bank regulatory agencies to assess the capital position of financial services companies, they may not be comparable to similarly titled measures reported by other companies.

	2013			2012			2012			2012			2012
(Dollars in millions)(unaudited)	Q1			Q4			Q3			Q2			Q1
Average Equity to Non-GAAP Average Tangible Common Equity
Average total stockholders’ equity	$	40,960		$	40,212		$	38,535		$	37,533		$	32,982
Less: Average intangible assets(1)		(16,141	)		(16,340	)		(16,408	)		(15,689	)		(13,931	)
Noncumulative perpetual preferred stock(2)		(853	)		(853	)		(456	)		—			—
Average tangible common equity(3)	$	23,966		$	23,019		$	21,671		$	21,844		$	19,051
Stockholders’ Equity to Non-GAAP Tangible Common Equity
Total stockholders’ equity	$	41,296		$	40,499		$	39,672		$	37,192		$	36,950
Less: Goodwill and other intangible assets(1)		(15,992	)		(16,224	)		(16,323	)		(16,477	)		(14,110	)
Noncumulative perpetual preferred stock(2)		(853	)		(853	)		(853	)		—			—
Tangible common equity(3)	$	24,451		$	23,422		$	22,496		$	20,715		$	22,840
Total Assets to Tangible Assets
Total assets	$	300,163		$	312,918		$	301,989		$	296,572		$	294,481
Less: Assets from discontinued operations		(309	)		(309	)		(309	)		(310	)		(304	)
Total assets from continuing operations		299,854			312,609			301,680			296,262			294,177
Less: Goodwill and other intangible assets(1)		(15,992	)		(16,224	)		(16,323	)		(16,477	)		(14,110	)
Tangible assets	$	283,862		$	296,385		$	285,357		$	279,785		$	280,067
Non-GAAP TCE Ratio
Tangible common equity(3)	$	24,451		$	23,422		$	22,496		$	20,715		$	22,840
Tangible assets		283,862			296,385			285,357			279,785			280,067
TCE ratio(3)		8.6	%		7.9	%		7.9	%		7.4	%		8.2	%
Regulatory Capital Ratios(4)
Total stockholders’ equity	$	41,296		$	40,499		$	39,672		$	37,192		$	36,950
Less:  Net unrealized gains on AFS securities recorded in accumulated other comprehensive income (“AOCI”)(5)		(583	)		(712	)		(752	)		(422	)		(327	)
Net (gains) losses on cash flow hedges recorded in AOCI(5)		15			2			(6	)		34			70
Disallowed goodwill and other intangible assets		(14,361	)		(14,428	)		(14,497	)		(14,563	)		(14,057	)
Disallowed deferred tax assets		—			—			(221	)		(758	)		(902	)
Noncumulative perpetual preferred stock(2)		(853	)		(853	)		(853	)		—			—
Other		(4	)		(12	)		(12	)		(12	)		(3	)
Tier 1 common capital		25,510			24,496			23,331			21,471			21,731
Plus:  Noncumulative perpetual preferred stock(2)		853			853			853			—			—
Tier 1 restricted core capital items(6)		1			2			3,636			3,636			3,636
Tier 1 capital		26,364			25,351			27,820			25,107			25,367
Plus:  Long-term debt qualifying as Tier 2 capital		2,122			2,119			2,119			2,318			2,438
Qualifying allowance for loan and lease losses		2,737			2,830			2,767			2,740			2,314
Other Tier 2 components		11			13			17			15			17
Tier 2 capital		4,870			4,962			4,903			5,073			4,769
Total risk-based capital(7)	$	31,234		$	30,313		$	32,723		$	30,180		$	30,136
Risk-weighted assets(8)	$	216,474		$	223,472		$	218,390		$	216,341		$	182,704
Tier 1 common ratio(9)		11.8	%		11.0	%		10.7	%		9.9	%		11.9	%
Tier 1 risk-based capital ratio(10)		12.2			11.3			12.7			11.6			13.9
Total risk-based capital ratio(11)		14.4			13.6			15.0			14.0			16.5

⁽¹⁾  Includes impact from related deferred taxes.

⁽²⁾  Noncumulative perpetual preferred stock qualifies for Tier 1 capital; however, it is not includable in Tier 1 common capital.

⁽³⁾  TCE ratio is a non-GAAP measure calculated based on tangible common equity divided by tangible assets.

⁽⁴⁾  Regulatory capital ratios as of the end of Q1 2013 are preliminary and therefore subject to change.

⁽⁵⁾  Amounts presented are net of tax.

⁽⁶⁾  Consists primarily of trust preferred securities.

⁽⁷⁾  Total risk-based capital equals the sum of Tier 1 capital and Tier 2 capital.

⁽⁸⁾  Calculated based on prescribed regulatory guidelines.

⁽⁹⁾  Tier 1 common ratio is a regulatory measure calculated based on Tier 1 common capital divided by risk-weighted assets.

⁽¹⁰⁾  Tier 1 risk-based capital ratio is a regulatory capital measure calculated based on Tier 1 capital divided by risk-weighted assets.

⁽¹¹⁾  Total risk-based capital ratio is a regulatory capital measure calculated based on total risk-based capital divided by risk-weighted assets.

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