Capital One Reports First Quarter 2023 Net Income of $960 million, or $2.31 per share

"In the first quarter, we built additional balance sheet strength as we grew retail deposits, and maintained or increased strong levels of capital and liquidity," said
All comparisons below are for the first quarter of 2023 compared with the fourth quarter of 2022 unless otherwise noted.
First Quarter 2023 Income Statement Summary:
- Total net revenue decreased 2 percent to
$8.9 billion . - Total non-interest expense decreased 3 percent to
$4.9 billion: - 20 percent decrease in marketing.
- 2 percent increase in operating expenses.
- Pre-provision earnings(1) remained flat at
$4.0 billion . - Provision for credit losses increased
$379 million to$2.8 billion: - Net charge-offs of
$1.7 billion . $1.1 billion loan reserve build.- Net interest margin of 6.60 percent, a decrease of 24 basis points.
- Efficiency ratio of 55.54 percent.
- Operating efficiency ratio of 45.47 percent.
First Quarter 2023 Balance Sheet Summary:
- Common equity Tier 1 capital ratio under Basel III Standardized Approach of 12.5 percent at
March 31, 2023 . - Period-end loans held for investment in the quarter decreased
$3.5 billion , or 1 percent, to$308.8 billion . - Credit Card period-end loans decreased
$588 million , or less than 1 percent, to$137.1 billion . - Domestic Card period-end loans decreased
$601 million , or less than 1 percent, to$131.0 billion . - Consumer Banking period-end loans decreased
$1.8 billion , or 2 percent, to$78.2 billion . - Auto period-end loans decreased
$1.7 billion , or 2 percent, to$76.7 billion . - Commercial Banking period-end loans decreased
$1.1 billion , or 1 percent, to$93.5 billion . - Average loans held for investment in the quarter increased
$875 million , or less than 1 percent, to$307.8 billion . - Credit Card average loans increased
$4.0 billion , or 3 percent, to$134.7 billion . - Domestic Card average loans increased
$3.7 billion , or 3 percent, to$128.6 billion . - Consumer Banking average loans decreased
$1.7 billion , or 2 percent, to$79.0 billion . - Auto average loans decreased
$1.6 billion , or 2 percent, to$77.5 billion . - Commercial Banking average loans decreased
$1.4 billion , or 2 percent, to$94.1 billion . - Period-end total deposits increased
$16.8 billion , or 5 percent, to$349.8 billion , while average deposits increased$13.6 billion , or 4 percent, to$340.1 billion . - Interest-bearing deposits rate paid increased 58 basis points to 2.40 percent.
(1) |
Pre-provision earnings is a non-GAAP metric calculated based on total net revenue less non-interest expense for the period. Management believes that this financial metric is useful in assessing the ability of a lending institution to generate income in excess of its provision for credit losses. See our Financial Supplement, filed as Exhibit 99.2 to our Current Report on From 8-K on |
Earnings Conference Call Webcast Information
The company will hold an earnings conference call on
Forward-Looking Statements
Certain statements in this release may constitute forward-looking statements, which involve a number of risks and uncertainties. Forward-looking statements often use words such as "will," "anticipate," "target," "expect," "think," "estimate," "intend," "plan," "goal," "believe," "forecast," "outlook" or other words of similar meaning. Any forward-looking statements made by Capital One or on its behalf speak only as of the date they are made or as of the date indicated, and Capital One does not undertake any obligation to update forward-looking statements as a result of new information, future events or otherwise. Capital One cautions readers that any forward-looking information is not a guarantee of future performance and that actual results could differ materially from those contained in the forward-looking information due to a number of factors. For additional information on factors that could materially influence forward-looking statements included in this earnings press release, see the risk factors set forth under "Part I—Item 1A. Risk Factors" in the Annual Report on Form 10-K for the year ended
About Capital One
Exhibit 99.2
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Financial Supplement(1)(2) First Quarter 2023 Table of Contents |
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Capital One Financial Corporation Consolidated Results |
Page |
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Table 1: |
Financial Summary—Consolidated |
1 |
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Table 2: |
Selected Metrics—Consolidated |
3 |
||
Table 3: |
Consolidated Statements of Income |
4 |
||
Table 4: |
Consolidated Balance Sheets |
6 |
||
Table 5: |
Notes to Financial Summary, Selected Metrics and Consolidated Financial Statements (Tables 1—4) |
8 |
||
Table 6: |
Average Balances, Net Interest Income and Net Interest Margin |
9 |
||
Table 7: |
Loan Information and Performance Statistics |
10 |
||
Table 8: |
Allowance for Credit Losses and Reserve for Unfunded Lending Commitments Activity |
12 |
||
Business Segment Results |
||||
Table 9: |
Financial Summary—Business Segment Results |
13 |
||
Table 10: |
Financial & Statistical Summary—Credit Card Business |
14 |
||
Table 11: |
Financial & Statistical Summary—Consumer Banking Business |
16 |
||
Table 12: |
Financial & Statistical Summary—Commercial Banking Business |
17 |
||
Table 13: |
Financial & Statistical Summary—Other and Total |
18 |
||
Other |
||||
Table 14: |
Notes to Net Interest Margin, Loan, Allowance and Business Segment Disclosures (Tables 6—13) |
19 |
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Table 15: |
Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures |
20 |
__________
(1) |
The information contained in this Financial Supplement is preliminary and based on data available at the time of the earnings presentation. Investors should refer to our Quarterly Report on Form 10-Q for the period ended |
(2) |
This Financial Supplement includes non-GAAP measures. We believe these non-GAAP measures are useful to investors and users of our financial information as they provide an alternate measurement of our performance and assist in assessing our capital adequacy and the level of return generated. These non-GAAP measures should not be viewed as a substitute for reported results determined in accordance with generally accepted accounting principles in the |
Table 1: Financial Summary—Consolidated |
||||||||||||||
2023 Q1 vs |
||||||||||||||
(Dollars in millions, except per share data and as noted) |
2023 Q1 |
2022 Q4 |
2022 Q3 |
2022 Q2 |
2022 Q1 |
2022 Q4 |
2022 Q1 |
|||||||
Income Statement |
||||||||||||||
Net interest income |
$ 7,186 |
$ 7,197 |
$ 7,003 |
$ 6,517 |
$ 6,397 |
— |
12 % |
|||||||
Non-interest income |
1,717 |
1,843 |
1,802 |
1,715 |
1,776 |
(7) % |
(3) |
|||||||
Total net revenue(1) |
8,903 |
9,040 |
8,805 |
8,232 |
8,173 |
(2) |
9 |
|||||||
Provision for credit losses |
2,795 |
2,416 |
1,669 |
1,085 |
677 |
16 |
** |
|||||||
Non-interest expense: |
||||||||||||||
Marketing |
897 |
1,118 |
978 |
1,003 |
918 |
(20) |
(2) |
|||||||
Operating expense |
4,048 |
3,962 |
3,971 |
3,580 |
3,633 |
2 |
11 |
|||||||
Total non-interest expense |
4,945 |
5,080 |
4,949 |
4,583 |
4,551 |
(3) |
9 |
|||||||
Income from continuing operations before income taxes |
1,163 |
1,544 |
2,187 |
2,564 |
2,945 |
(25) |
(61) |
|||||||
Income tax provision |
203 |
312 |
493 |
533 |
542 |
(35) |
(63) |
|||||||
Net income |
960 |
1,232 |
1,694 |
2,031 |
2,403 |
(22) |
(60) |
|||||||
Dividends and undistributed earnings allocated to participating securities(2) |
(16) |
(14) |
(21) |
(25) |
(28) |
14 |
(43) |
|||||||
Preferred stock dividends |
(57) |
(57) |
(57) |
(57) |
(57) |
— |
— |
|||||||
Net income available to common stockholders |
$ 887 |
$ 1,161 |
$ 1,616 |
$ 1,949 |
$ 2,318 |
(24) |
(62) |
|||||||
Common Share Statistics |
||||||||||||||
Basic earnings per common share:(2) |
||||||||||||||
Net income per basic common share |
$ 2.32 |
$ 3.03 |
$ 4.21 |
$ 4.98 |
$ 5.65 |
(23) % |
(59) % |
|||||||
Diluted earnings per common share:(2) |
||||||||||||||
Net income per diluted common share |
$ 2.31 |
$ 3.03 |
$ 4.20 |
$ 4.96 |
$ 5.62 |
(24) % |
(59) % |
|||||||
Weighted-average common shares outstanding (in millions): |
||||||||||||||
Basic |
382.6 |
382.6 |
383.4 |
391.2 |
410.4 |
— |
(7) % |
|||||||
Diluted |
383.8 |
383.7 |
384.6 |
392.6 |
412.2 |
— |
(7) |
|||||||
Common shares outstanding (period-end, in millions) |
382.0 |
381.3 |
382.0 |
383.8 |
399.0 |
— |
(4) |
|||||||
Dividends declared and paid per common share |
$ 0.60 |
$ 0.60 |
$ 0.60 |
$ 0.60 |
$ 0.60 |
— |
— |
|||||||
Tangible book value per common share (period-end)(3) |
90.86 |
86.11 |
81.38 |
87.84 |
91.77 |
6 % |
(1) |
|||||||
2023 Q1 vs |
||||||||||||||
(Dollars in millions) |
2023 Q1 |
2022 Q4 |
2022 Q3 |
2022 Q2 |
2022 Q1 |
2022 Q4 |
2022 Q1 |
|||||||
Balance Sheet (Period-End) |
||||||||||||||
Loans held for investment |
$ 308,836 |
$ 312,331 |
$ 303,943 |
$ 296,384 |
$ 280,466 |
(1) % |
10 % |
|||||||
Interest-earning assets |
445,166 |
427,248 |
415,262 |
406,565 |
398,241 |
4 |
12 |
|||||||
Total assets |
471,660 |
455,249 |
444,232 |
440,288 |
434,195 |
4 |
9 |
|||||||
Interest-bearing deposits |
318,641 |
300,789 |
282,802 |
270,881 |
275,648 |
6 |
16 |
|||||||
Total deposits |
349,827 |
332,992 |
317,193 |
307,885 |
313,429 |
5 |
12 |
|||||||
Borrowings |
48,777 |
48,715 |
54,607 |
58,938 |
45,358 |
— |
8 |
|||||||
Common equity |
49,807 |
47,737 |
46,015 |
48,564 |
51,499 |
4 |
(3) |
|||||||
Total stockholders' equity |
54,653 |
52,582 |
50,861 |
53,410 |
56,345 |
4 |
(3) |
|||||||
Balance Sheet (Average Balances) |
||||||||||||||
Loans held for investment |
$ 307,756 |
$ 306,881 |
$ 300,186 |
$ 286,110 |
$ 275,342 |
— |
12 % |
|||||||
Interest-earning assets |
435,199 |
421,051 |
412,171 |
398,934 |
394,082 |
3 % |
10 |
|||||||
Total assets |
462,324 |
449,659 |
447,088 |
435,327 |
430,372 |
3 |
7 |
|||||||
Interest-bearing deposits |
308,788 |
292,793 |
275,900 |
268,104 |
271,823 |
5 |
14 |
|||||||
Total deposits |
340,123 |
326,558 |
311,928 |
305,954 |
309,597 |
4 |
10 |
|||||||
Borrowings |
48,016 |
49,747 |
58,628 |
53,208 |
42,277 |
(3) |
14 |
|||||||
Common equity |
49,927 |
47,594 |
49,696 |
49,319 |
54,591 |
5 |
(9) |
|||||||
Total stockholders' equity |
54,773 |
52,439 |
54,541 |
54,165 |
59,437 |
4 |
(8) |
Table 2: Selected Metrics—Consolidated |
||||||||||||||
2023 Q1 vs |
||||||||||||||
(Dollars in millions, except as noted) |
2023 Q1 |
2022 Q4 |
2022 Q3 |
2022 Q2 |
2022 Q1 |
2022 Q4 |
2022 Q1 |
|||||||
Performance Metrics |
||||||||||||||
Net interest income growth (period over period) |
— |
3 % |
7 % |
2 % |
(1) % |
** |
** |
|||||||
Non-interest income growth (period over period) |
(7) % |
2 |
5 |
(3) |
6 |
** |
** |
|||||||
Total net revenue growth (period over period) |
(2) |
3 |
7 |
1 |
1 |
** |
** |
|||||||
Total net revenue margin(4) |
8.18 |
8.59 |
8.55 |
8.25 |
8.30 |
(41) bps |
(12) bps |
|||||||
Net interest margin(5) |
6.60 |
6.84 |
6.80 |
6.54 |
6.49 |
(24) |
11 |
|||||||
Return on average assets |
0.83 |
1.10 |
1.52 |
1.87 |
2.23 |
(27) |
(140) |
|||||||
Return on average tangible assets(6) |
0.86 |
1.13 |
1.57 |
1.93 |
2.31 |
(27) |
(145) |
|||||||
Return on average common equity(7) |
7.11 |
9.76 |
13.01 |
15.81 |
16.98 |
(265) |
(987) |
|||||||
Return on average tangible common equity(8) |
10.15 |
14.22 |
18.59 |
22.63 |
23.36 |
(407) |
(1,321) |
|||||||
Efficiency ratio(9) |
55.54 |
56.19 |
56.21 |
55.67 |
55.68 |
(65) |
(14) |
|||||||
Operating efficiency ratio(10) |
45.47 |
43.83 |
45.10 |
43.49 |
44.45 |
164 |
102 |
|||||||
Effective income tax rate for continuing operations |
17.5 |
20.2 |
22.5 |
20.8 |
18.4 |
(270) |
(90) |
|||||||
Employees (period-end, in thousands) |
56.1 |
56.0 |
55.1 |
53.6 |
51.5 |
— |
9 % |
|||||||
Credit Quality Metrics |
||||||||||||||
Allowance for credit losses |
$ 14,318 |
$ 13,240 |
$ 12,209 |
$ 11,491 |
$ 11,308 |
8 % |
27 % |
|||||||
Allowance coverage ratio |
4.64 % |
4.24 % |
4.02 % |
3.88 % |
4.03 % |
40 bps |
61 bps |
|||||||
Net charge-offs |
$ 1,697 |
$ 1,430 |
$ 931 |
$ 845 |
$ 767 |
19 % |
121 % |
|||||||
Net charge-off rate(11) |
2.21 % |
1.86 % |
1.24 % |
1.18 % |
1.11 % |
35 bps |
110 bps |
|||||||
30+ day performing delinquency rate |
2.88 |
2.96 |
2.58 |
2.36 |
2.08 |
(8) |
80 |
|||||||
30+ day delinquency rate |
3.09 |
3.21 |
2.78 |
2.54 |
2.21 |
(12) |
88 |
|||||||
Capital Ratios(12) |
||||||||||||||
Common equity Tier 1 capital |
12.5 % |
12.5 % |
12.2 % |
12.1 % |
12.7 % |
— |
(20) bps |
|||||||
Tier 1 capital |
13.9 |
13.9 |
13.6 |
13.5 |
14.1 |
— |
(20) |
|||||||
Total capital |
15.9 |
15.8 |
15.7 |
15.7 |
16.4 |
10 bps |
(50) |
|||||||
Tier 1 leverage |
10.9 |
11.1 |
11.0 |
11.1 |
11.3 |
(20) |
(40) |
|||||||
Tangible common equity ("TCE")(13) |
7.6 |
7.5 |
7.2 |
7.9 |
8.7 |
10 |
(110) |
Table 3: Consolidated Statements of Income |
||||||||||||||
2023 Q1 vs |
||||||||||||||
(Dollars in millions, except as noted) |
2023 Q1 |
2022 Q4 |
2022 Q3 |
2022 Q2 |
2022 Q1 |
2022 Q4 |
2022 Q1 |
|||||||
Interest income: |
||||||||||||||
Loans, including loans held for sale |
$ 8,723 |
$ 8,360 |
$ 7,578 |
$ 6,605 |
$ 6,367 |
4 % |
37 % |
|||||||
Investment securities |
615 |
548 |
499 |
435 |
402 |
12 |
53 |
|||||||
Other |
416 |
250 |
123 |
55 |
15 |
66 |
** |
|||||||
Total interest income |
9,754 |
9,158 |
8,200 |
7,095 |
6,784 |
7 |
44 |
|||||||
Interest expense: |
||||||||||||||
Deposits |
1,856 |
1,335 |
689 |
293 |
218 |
39 |
** |
|||||||
Securitized debt obligations |
211 |
170 |
120 |
65 |
29 |
24 |
** |
|||||||
Senior and subordinated notes |
489 |
430 |
319 |
194 |
131 |
14 |
** |
|||||||
Other borrowings |
12 |
26 |
69 |
26 |
9 |
(54) |
33 |
|||||||
Total interest expense |
2,568 |
1,961 |
1,197 |
578 |
387 |
31 |
** |
|||||||
Net interest income |
7,186 |
7,197 |
7,003 |
6,517 |
6,397 |
— |
12 |
|||||||
Provision for credit losses |
2,795 |
2,416 |
1,669 |
1,085 |
677 |
16 |
** |
|||||||
Net interest income after provision for credit losses |
4,391 |
4,781 |
5,334 |
5,432 |
5,720 |
(8) |
(23) |
|||||||
Non-interest income: |
||||||||||||||
Interchange fees, net |
1,139 |
1,177 |
1,195 |
1,201 |
1,033 |
(3) |
10 |
|||||||
Service charges and other customer-related fees |
379 |
395 |
415 |
415 |
400 |
(4) |
(5) |
|||||||
Other |
199 |
271 |
192 |
99 |
343 |
(27) |
(42) |
|||||||
Total non-interest income |
1,717 |
1,843 |
1,802 |
1,715 |
1,776 |
(7) |
(3) |
|||||||
Non-interest expense: |
||||||||||||||
Salaries and associate benefits |
2,427 |
2,266 |
2,187 |
1,946 |
2,026 |
7 |
20 |
|||||||
Occupancy and equipment |
508 |
554 |
502 |
481 |
513 |
(8) |
(1) |
|||||||
Marketing |
897 |
1,118 |
978 |
1,003 |
918 |
(20) |
(2) |
|||||||
Professional services |
324 |
481 |
471 |
458 |
397 |
(33) |
(18) |
|||||||
Communications and data processing |
350 |
352 |
349 |
339 |
339 |
(1) |
3 |
|||||||
Amortization of intangibles |
14 |
25 |
17 |
14 |
14 |
(44) |
— |
|||||||
Other |
425 |
284 |
445 |
342 |
344 |
50 |
24 |
|||||||
Total non-interest expense |
4,945 |
5,080 |
4,949 |
4,583 |
4,551 |
(3) |
9 |
|||||||
Income from continuing operations before income taxes |
1,163 |
1,544 |
2,187 |
2,564 |
2,945 |
(25) |
(61) |
|||||||
Income tax provision |
203 |
312 |
493 |
533 |
542 |
(35) |
(63) |
|||||||
Net income |
960 |
1,232 |
1,694 |
2,031 |
2,403 |
(22) |
(60) |
|||||||
Dividends and undistributed earnings allocated to participating securities(2) |
(16) |
(14) |
(21) |
(25) |
(28) |
14 |
(43) |
|||||||
Preferred stock dividends |
(57) |
(57) |
(57) |
(57) |
(57) |
— |
— |
|||||||
Net income available to common stockholders |
$ 887 |
$ 1,161 |
$ 1,616 |
$ 1,949 |
$ 2,318 |
(24) |
(62) |
|||||||
2023 Q1 vs |
||||||||||||||
2023 Q1 |
2022 Q4 |
2022 Q3 |
2022 Q2 |
2022 Q1 |
2022 Q4 |
2022 |
||||||||
Basic earnings per common share:(2) |
||||||||||||||
Net income per basic common share |
$ 2.32 |
$ 3.03 |
$ 4.21 |
$ 4.98 |
$ 5.65 |
(23) % |
(59) % |
|||||||
Diluted earnings per common share:(2) |
||||||||||||||
Net income per diluted common share |
$ 2.31 |
$ 3.03 |
$ 4.20 |
$ 4.96 |
$ 5.62 |
(24) % |
(59) % |
|||||||
Weighted-average common shares outstanding (in millions): |
||||||||||||||
Basic common shares |
382.6 |
382.6 |
383.4 |
391.2 |
410.4 |
— |
(7) |
|||||||
Diluted common shares |
383.8 |
383.7 |
384.6 |
392.6 |
412.2 |
— |
(7) |
Table 4: Consolidated Balance Sheets |
||||||||||||||
2023 Q1 vs |
||||||||||||||
(Dollars in millions) |
2023 Q1 |
2022 Q4 |
2022 Q3 |
2022 Q2 |
2022 Q1 |
2022 Q4 |
2022 Q1 |
|||||||
Assets: |
||||||||||||||
Cash and cash equivalents: |
||||||||||||||
Cash and due from banks |
$ 3,347 |
$ 5,193 |
$ 3,716 |
$ 4,825 |
$ 5,107 |
(36) % |
(34) % |
|||||||
Interest-bearing deposits and other short-term investments |
43,166 |
25,663 |
21,176 |
16,728 |
21,697 |
68 |
99 |
|||||||
Total cash and cash equivalents |
46,513 |
30,856 |
24,892 |
21,553 |
26,804 |
51 |
74 |
|||||||
Restricted cash for securitization investors |
460 |
400 |
399 |
697 |
281 |
15 |
64 |
|||||||
Securities available for sale |
81,925 |
76,919 |
75,303 |
83,022 |
89,076 |
7 |
(8) |
|||||||
Loans held for investment: |
||||||||||||||
Unsecuritized loans held for investment |
280,093 |
283,282 |
277,576 |
271,339 |
257,505 |
(1) |
9 |
|||||||
Loans held in consolidated trusts |
28,743 |
29,049 |
26,367 |
25,045 |
22,961 |
(1) |
25 |
|||||||
Total loans held for investment |
308,836 |
312,331 |
303,943 |
296,384 |
280,466 |
(1) |
10 |
|||||||
Allowance for credit losses |
(14,318) |
(13,240) |
(12,209) |
(11,491) |
(11,308) |
8 |
27 |
|||||||
Net loans held for investment |
294,518 |
299,091 |
291,734 |
284,893 |
269,158 |
(2) |
9 |
|||||||
Loans held for sale |
363 |
203 |
1,729 |
875 |
1,155 |
79 |
(69) |
|||||||
Premises and equipment, net |
4,365 |
4,351 |
4,265 |
4,238 |
4,238 |
— |
3 |
|||||||
Interest receivable |
2,250 |
2,104 |
1,853 |
1,611 |
1,479 |
7 |
52 |
|||||||
|
14,779 |
14,777 |
14,771 |
14,778 |
14,784 |
— |
— |
|||||||
Other assets |
26,487 |
26,548 |
29,286 |
28,621 |
27,220 |
— |
(3) |
|||||||
Total assets |
$ 471,660 |
$ 455,249 |
$ 444,232 |
|
|
4 |
9 |
|||||||
2023 Q1 vs |
||||||||||||||
(Dollars in millions) |
2023 Q1 |
2022 Q4 |
2022 Q3 |
2022 Q2 |
2022 Q1 |
2022 Q4 |
2022 Q1 |
|||||||
Liabilities: |
||||||||||||||
Interest payable |
$ 621 |
$ 527 |
$ 433 |
$ 333 |
$ 261 |
18 % |
138 % |
|||||||
Deposits: |
||||||||||||||
Non-interest-bearing deposits |
31,186 |
32,203 |
34,391 |
37,004 |
37,781 |
(3) |
(17) |
|||||||
Interest-bearing deposits |
318,641 |
300,789 |
282,802 |
270,881 |
275,648 |
6 |
16 |
|||||||
Total deposits |
349,827 |
332,992 |
317,193 |
307,885 |
313,429 |
5 |
12 |
|||||||
Securitized debt obligations |
17,813 |
16,973 |
15,926 |
17,466 |
13,740 |
5 |
30 |
|||||||
Other debt: |
||||||||||||||
Federal funds purchased and securities loaned or sold under agreements to repurchase |
542 |
883 |
528 |
440 |
594 |
(39) |
(9) |
|||||||
Senior and subordinated notes |
30,398 |
30,826 |
30,615 |
30,489 |
26,976 |
(1) |
13 |
|||||||
Other borrowings |
24 |
33 |
7,538 |
10,543 |
4,048 |
(27) |
(99) |
|||||||
Total other debt |
30,964 |
31,742 |
38,681 |
41,472 |
31,618 |
(2) |
(2) |
|||||||
Other liabilities |
17,782 |
20,433 |
21,138 |
19,722 |
18,802 |
(13) |
(5) |
|||||||
Total liabilities |
417,007 |
402,667 |
393,371 |
386,878 |
377,850 |
4 |
10 |
|||||||
Stockholders' equity: |
||||||||||||||
Preferred stock |
0 |
0 |
0 |
0 |
0 |
— |
— |
|||||||
Common stock |
7 |
7 |
7 |
7 |
7 |
— |
— |
|||||||
Additional paid-in capital, net |
34,952 |
34,725 |
34,579 |
34,425 |
34,286 |
1 |
2 |
|||||||
Retained earnings |
57,898 |
57,184 |
56,240 |
54,836 |
53,099 |
1 |
9 |
|||||||
Accumulated other comprehensive loss |
(8,540) |
(9,916) |
(10,704) |
(6,916) |
(4,093) |
(14) |
109 |
|||||||
|
(29,664) |
(29,418) |
(29,261) |
(28,942) |
(26,954) |
1 |
10 |
|||||||
Total stockholders' equity |
54,653 |
52,582 |
50,861 |
53,410 |
56,345 |
4 |
(3) |
|||||||
Total liabilities and stockholders' equity |
$ 471,660 |
|
|
$ 440,288 |
|
4 |
9 |
|
||
Table 5: Notes to Financial Summary, Selected Metrics and Consolidated Financial Statements (Tables 1—4) |
||
(1) |
Total net revenue was reduced by |
|
(2) |
Dividends and undistributed earnings allocated to participating securities and earnings per share are computed independently for each period. Accordingly, the sum of each quarterly amount may not agree to the year-to-date total. We also provide adjusted diluted earnings per share, which is a non-GAAP measure. See "Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures" for additional information on our non-GAAP measures. |
|
(3) |
Tangible book value per common share is a non-GAAP measure calculated based on TCE divided by common shares outstanding. See "Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures" for additional information on non-GAAP measures. |
|
(4) |
Total net revenue margin is calculated based on annualized total net revenue for the period divided by average interest-earning assets for the period. |
|
(5) |
Net interest margin is calculated based on annualized net interest income for the period divided by average interest-earning assets for the period. |
|
(6) |
Return on average tangible assets is a non-GAAP measure calculated based on annualized income (loss) from continuing operations, net of tax, for the period divided by average tangible assets for the period. See "Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures" for additional information on non-GAAP measures. |
|
(7) |
Return on average common equity is calculated based on annualized net income (loss) available to common stockholders less annualized income (loss) from discontinued operations, net of tax, for the period, divided by average common equity. Our calculation of return on average common equity may not be comparable to similarly-titled measures reported by other companies. |
|
(8) |
Return on average tangible common equity is a non-GAAP measure calculated based on annualized net income (loss) available to common stockholders less annualized income (loss) from discontinued operations, net of tax, for the period, divided by average TCE. See "Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures" for additional information on non-GAAP measures. |
|
(9) |
Efficiency ratio is calculated based on total non-interest expense for the period divided by total net revenue for the period. We also provide an adjusted efficiency ratio, which is a non-GAAP measure. See "Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures" for additional information on our non-GAAP measures. |
|
(10) |
Operating efficiency ratio is calculated based on operating expense for the period divided by total net revenue for the period. We also provide an adjusted operating efficiency ratio, which is a non-GAAP measure. See "Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures" for additional information on our non-GAAP measures. |
|
(11) |
Net charge-off rate is calculated based on annualized net charge-offs for the period divided by average loans held for investment for the period. |
|
(12) |
Capital ratios as of the end of Q1 2023 are preliminary and therefore subject to change. See "Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures" for information on the calculation of each of these ratios. |
|
(13) |
TCE ratio is a non-GAAP measure calculated based on TCE divided by tangible assets. See "Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures" for additional information on non-GAAP measures. |
|
** |
Not meaningful. |
Table 6: Average Balances, Net Interest Income and Net Interest Margin |
||||||||||||||||||
2023 Q1 |
2022 Q4 |
2022 Q1 |
||||||||||||||||
(Dollars in millions, except as noted) |
Average |
Interest |
Yield/Rate(1) |
Average |
Interest |
Yield/Rate(1) |
Average |
Interest |
Yield/Rate |
|||||||||
Interest-earning assets: |
||||||||||||||||||
Loans, including loans held for sale |
$ 308,115 |
$ 8,723 |
11.32 % |
$ 307,852 |
$ 8,360 |
10.86 % |
$ 279,022 |
$ 6,367 |
9.13 % |
|||||||||
Investment securities |
89,960 |
615 |
2.73 |
87,110 |
548 |
2.52 |
94,700 |
402 |
1.70 |
|||||||||
Cash equivalents and other |
37,124 |
416 |
4.49 |
26,089 |
250 |
3.84 |
20,360 |
15 |
0.29 |
|||||||||
Total interest-earning assets |
$ 435,199 |
$ 9,754 |
8.96 |
$ 421,051 |
$ 9,158 |
8.70 |
$ 394,082 |
$ 6,784 |
6.89 |
|||||||||
Interest-bearing liabilities: |
||||||||||||||||||
Interest-bearing deposits |
$ 308,788 |
$ 1,856 |
2.40 |
$ 292,793 |
$ 1,335 |
1.82 |
$ 271,823 |
$ 218 |
0.32 |
|||||||||
Securitized debt obligations |
17,251 |
211 |
4.90 |
16,478 |
170 |
4.13 |
13,740 |
29 |
0.84 |
|||||||||