Breadcrumb

Home Page > About Capital One > Investor Relations > Capital One Reports Fourth Quarter 2009 Net Income of $375.6 million, or $0.83 per share (diluted)

Release Details

Capital One Reports Fourth Quarter 2009 Net Income of $375.6 million, or $0.83 per share (diluted)

January 21, 2010 at 4:30 PM EST
  
 
Earnings for full year 2009 of $319.9 million, or $0.74 per share (diluted) including the ($563.9) million, or ($1.31) per share, impact to net income from the repayment of the government's TARP preferred share investment
 
MCLEAN, Va., Jan 21, 2010 /PRNewswire via COMTEX/ -- Highlights

  • Managed net interest margin of 6.90 percent and revenue margin of 9.50 percent remained stable in the fourth quarter relative to the prior quarter.
  • Managed provision expense decreased $353.5 million from the prior quarter and was essentially flat in 2009 as compared to 2008 at $8.0 billion.
  • Non-interest expenses were up 8.1 percent in the quarter as marketing began to increase from unusually low levels earlier in 2009, and operating expenses increased as expected.
  • Tangible common equity to tangible managed assets, or "TCE ratio," increased to 6.3 percent, up 10 basis points from the September 30, 2009 ratio of 6.2 percent, and Tier 1 capital to risk-weighted assets, or Tier 1 ratio, rose to 13.8 percent.

Capital One Financial Corporation (NYSE: COF) today announced net income for the fourth quarter of 2009 of $375.6 million, or $0.83 per common share (diluted), versus third quarter 2009 net income of $393.5 million, or $0.88 per common share (diluted). For the full year of 2009, net income was $319.9 million, or $0.74 per share (diluted), including the ($563.9) million, or ($1.31) per share, impact to net income from the repayment of the government's TARP preferred share investment. This compares to a loss in 2008 of $78.7 million, or ($0.21) per share (diluted), which included a pre-tax goodwill impairment charge of $810.9 million in the automobile business.

"Capital One posted solid results as our domestic credit card and auto finance businesses delivered strong profits and resilience during the quarter despite challenging economic and credit headwinds," said Richard D. Fairbank, Capital One's Chairman and Chief Executive Officer. "Given our balance sheet strength and the stabilizing economy, we are well-positioned to take advantage of emerging opportunities to deliver value to our shareholders and customers."

Total Company Results

  • Total managed revenue in the fourth quarter of 2009 declined $215.7 million, or 4.7 percent, to $4.4 billion. The main driver of lower revenue was fewer gains from securities sales compared to the prior quarter. Managed non-interest income decreased $173.8 million in the fourth quarter, or 12.7 percent, relative to the prior quarter, while net interest income decreased $41.9 million, or 1.3 percent. Managed revenue in 2009 was flat compared to 2008 at approximately $16.8 billion as a 2.9 percent decrease in average loans year over year was offset by slightly higher margins.
  • Managed provision expense decreased $353.5 million from the prior quarter. A $386.1 million allowance release in the quarter more than offset an increase in charge-offs, driving the decrease in provision expense. The fourth quarter allowance releases in both Credit Card and Auto more than offset the allowance builds in Commercial and Consumer Banking.
  • Allowance as a percentage of reported loans was 4.55 percent in the fourth quarter of 2009 as compared to 4.67 percent in the prior quarter.
  • Average total deposits decreased by $1.3 billion, or 1.1 percent, over the prior quarter, to $114.6 billion. Period-end total deposits increased by $1.3 billion to $115.8 billion as a result of the increase in deposits late in the quarter.
  • The cost of managed interest-bearing liabilities decreased to 2.16 percent from 2.28 percent in the prior quarter as the company replaced higher-cost time deposits with money market and savings accounts, and increased the amount of non-interest bearing deposits. The overall cost of funds declined 12 basis points to 2.00 percent in the fourth quarter.
  • Average managed assets decreased $4.2 billion, or 2.0 percent, relative to the prior quarter, to $210.4 billion, driven primarily by reductions in loans held for investment. Period-end total managed assets increased by 1.2 percent over the prior quarter to $212.1 billion.
  • Non-interest expenses increased $145.9 million in the fourth quarter of 2009 from the prior quarter, driven primarily by increased marketing. Marketing increased $84.3 million, or 81.3 percent from the prior quarter. The managed efficiency ratio of 43.85 percent in the fourth quarter of 2009 was up 5.1 percentage points from 38.73 percent in the prior quarter.
  • Non-interest expenses for the full year 2009 were essentially flat compared to 2008 at $7.4 billion, excluding goodwill impairment. In response to lower loan demand and economic uncertainty, the company decreased marketing spend in 2009. This decrease was offset by the addition of Chevy Chase Bank operating expenses.
  • The company's TCE ratio increased to 6.3 percent on December 31, 2009, from 6.2 percent in the prior quarter. The Tier 1 risk-based capital ratio of approximately 13.8 percent increased 200 basis points relative to the prior quarter, and continues to be well above the regulatory well-capitalized minimum.

"We navigated a very challenging 2009, produced solid results and strengthened our position with additional capital and historically high allowance coverage ratios," said Gary Perlin. "The strength of our balance sheet will continue to enable us to make the investments necessary to generate profitable growth into the future."

Segment Results

The company reports the results of its business through three operating segments: Credit Card, Commercial Banking, and Consumer Banking. Please refer to the Financial Supplement for additional details.

Credit Card Highlights

For details on the sub-segments' results, please refer to the Financial Supplement.

The Credit Card segment reported net income in the fourth quarter of $509.9 million, an increase of $218.2 million, or 74.8 percent, from the prior quarter's net income of $291.7 million. Lower provision expense in the quarter was the key driver of the improved profitability.

  • Revenues of $2.9 billion were down $64.9 million, or 2.2 percent, relative to the prior quarter.
    • Domestic Card - revenues down $77.2 million, or 2.9 percent.
    • International Card - revenues up $12.4 million, or 3.7 percent.
  • Revenue margin in the Domestic Card sub-segment improved to approximately 17.0 percent in the fourth quarter, up from 16.8 percent in the prior quarter. In 2010, we expect quarterly revenue margin to moderate, but remain close to its fourth quarter 2009 level.
  • Period-end loans in the Credit Card segment were $68.5 billion, a decline of $1.8 billion, or 2.6 percent, from the prior quarter.
    • Domestic Card - loans declined $1.6 billion, or 2.6 percent, to $60.3 billion at the end of the fourth quarter. Approximately $1.0 billion of the decline came from the continued run-off of the company's nationally-originated Installment Loans.
    • International Card - loans declined $0.3 billion, or 3.0 percent, to $8.2 billion.
  • The managed net charge-off rate for the Credit Card segment remained essentially flat at 9.58 percent in the fourth quarter of 2009.
    • Domestic Card - net charge-offs decreased 5 basis points to 9.59 percent in the fourth quarter from 9.64 percent in the prior quarter.
    • International Card - net charge-offs increased 33 basis points to 9.52 percent from 9.19 percent in the prior quarter.
  • The 30+ day performing delinquency rate for the Credit Card segment increased 35 basis points to 5.88 percent in the fourth quarter of 2009 from 5.53 percent in the prior quarter.
    • Domestic Card - delinquencies increased 40 basis points to 5.78 percent from 5.38 percent in the prior quarter.
    • International Card - delinquencies decreased 8 basis points to 6.55 percent from 6.63 percent in the prior quarter.

Commercial Banking Highlights

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

The Commercial Banking segment consists of commercial and multi-family real-estate, middle market lending, and specialty lending, which are summarized under Commercial Lending, and small ticket commercial real estate. The total segment reported a net loss of $136.0 million in the fourth quarter, relative to a net loss of $127.7 million in the prior quarter. Commercial Banking revenue increased $12.0 million, or 3.5 percent, to $356.6 million in the fourth quarter of 2009, while non-interest expense increased $31.3 million, or 18.9 percent, to $197.4 million. Increases in non-interest expense were driven by rising costs associated with managing loss mitigation and continuing infrastructure investments.

  • Average loans of $29.9 billion declined $206.1 million, or 0.7 percent, during the fourth quarter from $30.1 billion during the prior quarter.
    • Commercial lending - declined $89.4 million, or 0.3 percent, to $27.5 billion.
    • Small ticket commercial real estate - declined $116.8 million, or 4.7 percent, to $2.4 billion.
  • Average deposits increased $1.7 billion, or 9.3 percent, to $19.4 billion during the fourth quarter from $17.8 billion during the prior quarter, while the deposit interest expense rose to 80 basis points.
  • Provision expense decreased $6.6 million relative to the prior quarter.
  • The managed net charge-off rate for Commercial Banking increased 149 basis points in the fourth quarter of 2009 to 2.91 percent from 1.42 percent in the prior quarter.
    • Commercial lending - 2.04 percent, an increase of 96 basis points over the prior quarter.
    • Small ticket commercial real estate - 13.08 percent, an increase of 789 basis points over the prior quarter. The increase in the charge-of rate is primarily related to the write-down of a portfolio of small ticket CRE non-performing loans as the company moved them to held-for-sale. This move also resulted in a drop in the non-performing asset rate for small ticket CRE from 11.39 percent in the third quarter to 4.87 percent in the fourth quarter.
    • Non-performing loans as a percentage of loans held for investment for Commercial Banking was 2.37 percent, a decrease of 28 basis points from 2.65 percent at the end of the prior quarter.

Consumer Banking highlights

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

Consumer Banking reported a net loss for the fourth quarter of $7.7 million compared to net income of $145.2 million in the third quarter. Revenue declined $73.9 million in the quarter. Provision expense increased $93.3 million, driven by seasonal increases in Auto Finance and continued deterioration in mortgage and home equity credit trends. Non-interest expense increased $68.1 million, or 10 percent relative to the prior quarter, as a result of several factors including planned expenses related to the integration of Chevy Chase Bank and investments to build a scalable banking infrastructure to ensure that the company is well positioned to take advantage of opportunities to grow our banking business.

  • Average loans declined $2.0 billion, or 4.8 percent, to $39.1 billion compared to average loans of $41.1 billion in the prior quarter. Auto finance loans declined as a result of the company's earlier efforts to retrench the auto finance business. Mortgage loans declined as the company continued to experience expected run off in the portfolio.
    • Auto - declined $868.4 million, or 4.4 percent, to $18.8 billion.
    • Mortgage - declined $581.0 million, or 3.6 percent, to $15.3 billion.
    • Retail banking - declined $512.3 million, or 9.3 percent, to $5.0 billion.
  • Average deposits in the Consumer Banking segment declined $0.3 billion, or 0.4 percent, to $73.0 billion during the fourth quarter from $73.3 billion in the prior quarter. Improved deposit mix and favorable interest rates drove a 17 basis point improvement in the deposit interest expense rate in the fourth quarter.
  • The managed net charge-off rate for Consumer Banking increased 16 basis points in the fourth quarter of 2009 to 2.85 percent from 2.69 percent in the prior quarter. The increase in Auto charge-offs resulted primarily from expected seasonal patterns and the impact of the decline in the denominator. Mortgage charge-offs were essentially flat.
    • Auto - 4.55 percent, an increase of 17 basis points
    • Mortgage - 0.71 percent, an increase of 2 basis points
    • Retail banking - 3.03 percent, an increase of 59 basis points

The company generates earnings from its managed loan portfolio, which includes both on-balance sheet loans and securitized (off-balance sheet) loans. For this reason, the company believes managed financial measures to be useful to stakeholders. In compliance with Regulation G of the Securities and Exchange Commission, the company is providing a numerical reconciliation of managed financial measures to comparable measures calculated on a reported basis using generally accepted accounting principles (GAAP). Please see the schedule titled "Reconciliation to GAAP Financial Measures" attached to this release for more information.

Forward looking statements

The company cautions that its current expectations in this release dated January 21, 2010; and the company's plans, objectives, expectations, and intentions, are forward-looking statements. Actual results could differ materially from current expectations due to a number of factors, including: general economic conditions in the U.S., the UK, or the company's local markets, including conditions affecting consumer income, confidence, spending, and savings which may affect consumer bankruptcies, defaults, charge-offs, deposit activity, and interest rates; changes in the labor and employment market; changes in the credit environment; the company's ability to execute on its strategic and operational plans; competition from providers of products and services that compete with the company's businesses; increases or decreases in the company's aggregate accounts and balances, or the growth rate and/or composition thereof; changes in the reputation of or expectations regarding the financial services industry or the company with respect to practices, products or financial condition; financial, legal, regulatory, tax or accounting changes or actions, including with respect to any litigation matter involving the company; and the success of the company's marketing efforts in attracting or retaining customers. A discussion of these and other factors can be found in the company's annual report and other reports filed with the Securities and Exchange Commission, including, but not limited to, the company's reports on Form 10-K for the fiscal year ended December 31, 2008 and reports on Form 10-Q for the quarters ended March 31, 2009, June 30, 2009, and September 30, 2009.

About Capital One

Capital One Financial Corporation (http://www.capitalone.com/) is a financial holding company whose subsidiaries, which include Capital One, N.A. and Capital One Bank (USA), N. A., had $115.8 billion in deposits and $212.0 billion in total managed assets outstanding as of December 31, 2009. Headquartered in McLean, Virginia, Capital One offers a broad spectrum of financial products and services to consumers, small businesses and commercial clients. Capital One, N.A. has approximately 1,000 branch locations primarily in New York, New Jersey, Texas, Louisiana, Maryland, Virginia, and the District of Columbia. A Fortune 500 company, Capital One trades on the New York Stock Exchange under the symbol "COF" and is included in the S&P 100 index.

NOTE: Fourth quarter 2009 financial results, SEC Filings, and earnings conference call slides are accessible on Capital One's home page (http://www.capitalone.com/). Choose "Investors" on the bottom of the home page to view and download the earnings press release, slides, and other financial information. Additionally, a podcast and webcast of today's 4:30 pm (ET) earnings conference call is accessible through the same link.

                     CAPITAL ONE FINANCIAL CORPORATION (COF)
                         FINANCIAL & STATISTICAL SUMMARY
                                  REPORTED BASIS

    (in millions,
     except per share
     data and as
     noted)                    2009               2009             2008
    -----------------          ----               ----             ----
                             Q4               Q3 (8)             Q4
                             ---              ------             ---
    Earnings (Reported
     Basis)
    Net Interest
     Income                $1,954.2           $2,005.2         $1,802.4
    Non-Interest
     Income (2)             1,411.7            1,552.4          1,368.3
                            -------            -------          -------
    Total Revenue (1)       3,365.9            3,557.6          3,170.7
    Provision for Loan
     Losses                   843.7            1,173.2          2,098.9
    Marketing Expenses        188.0              103.7            264.9
    Restructuring
     Expenses                  32.0               26.4             52.8
    Goodwill
     Impairment Charge            -                  -            810.9    (5)
    Operating Expenses
     (3)                    1,728.0            1,672.0          1,629.3
                            -------            -------          -------
    Income (Loss)
     Before Taxes             574.2              582.3         (1,686.1)
    Tax Rate                29.7   %           24.9   %            17.2
    Income (Loss) From
     Continuing
     Operations, Net
     of Tax                  $403.9             $437.1        $(1,396.3)
    Loss From
     Discontinued
     Operations, Net
     of Tax                   (28.3)             (43.6)           (25.2)
                              -----              -----            -----
    Net Income (Loss)        $375.6             $393.5        $(1,421.5)
                             ------             ------        ---------
    Net Income (Loss)
     Available to
     Common
     Shareholders (F)        $375.6             $393.5        $(1,454.3)
    -----------------        ------             ------        ---------
    Common Share
     Statistics
    Basic EPS: (G)
       Income (Loss) From
        Continuing
        Operations            $0.90              $0.97           $(3.67)
       Loss From
        Discontinued
        Operations           $(0.07)            $(0.09)          $(0.07)
                             ------             ------           ------
       Net Income (Loss)      $0.83              $0.88           $(3.74)
    Diluted EPS: (G)
       Income (Loss) From
        Continuing
        Operations            $0.89              $0.96           $(3.67)
       Loss From
        Discontinued
        Operations           $(0.06)            $(0.09)          $(0.07)
                             ------             ------           ------
       Net Income (Loss)      $0.83              $0.87           $(3.74)
    Dividends Per
     Common Share             $0.05              $0.05           $0.375
    Tangible Book
     Value Per Common
     Share (period
     end)                    $27.72             $26.86           $28.23
    Stock Price Per
     Common Share
     (period end)            $38.34             $35.73           $31.89
    Total Market
     Capitalization
     (period end)         $17,268.3          $16,064.2        $12,411.6
    Common Shares
     Outstanding
     (period end)             450.4              449.6            389.2
    Shares Used to
     Compute Basic EPS        450.0              449.4            389.0
    Shares Used to
     Compute Diluted
     EPS                      454.9              453.7            389.0
    ----------------          -----              -----            -----
    Reported Balance
     Sheet Statistics
     (period average)
     (A)
    Average Loans Held
     for Investment         $94,732            $99,354          $99,335
    Average Earning
     Assets                $143,663           $145,280         $137,799
    Average Assets         $169,856           $173,428         $161,968
    Average Interest
     Bearing Deposits      $101,144           $103,105          $93,144
    Total Average
     Deposits              $114,597           $115,883         $104,093
    Average Equity          $26,518            $26,002          $26,658    (7)
    Return on Average
     Assets (ROA)           0.95   %           1.01   %        (3.45)  %
    Return on Average
     Equity (ROE)           6.09   %           6.72   %       (20.95)  %
    -----------------          ----               ----          -------
    Reported Balance
     Sheet Statistics
     (period end) (A)
    Loans Held for
     Investment             $90,619            $96,714         $101,018
    Total Assets           $169,376           $168,432         $165,878
    Interest Bearing
     Deposits              $102,370           $101,769          $97,327
    Total Deposits         $115,809           $114,503         $108,621
    --------------         --------           --------         --------
    Performance
     Statistics
     (Reported) (A)
    Net Interest
     Income Growth
     (annualized)            (10)  %             12   %           (1)  %
    Non Interest
     Income Growth
     (annualized)            (36)  %            104   %          (77)  %
    Revenue Growth
     (annualized)            (22)  %             48   %          (38)  %
    Net Interest
     Margin                 5.44   %           5.52   %         5.23   %
    Revenue Margin          9.37   %           9.80   %         9.20   %
    Risk Adjusted
     Margin (B)             6.07   %           6.69   %         6.17   %
    Non Interest
     Expense as a % of
     Average Loans
     Held for
     Investment
     (annualized)           8.23   %      7.26   %       7.84 %(6)
    Efficiency Ratio
     (C)                   56.92   %          49.91   %           59.74  %(6)
    ----------------          -----              -----            -----
    Asset Quality
     Statistics
     (Reported) (A)
    Allowance                $4,127             $4,513           $4,524
    Allowance as a %
     of Reported Loans
     Held for
     Investment                4.55  %(4)         4.67  %(4)    4.48   %
    Net Charge-Offs          $1,185    (4)      $1,127    (4)    $1,045
    Net Charge-Off
     Rate                      5.00  %(4)         4.54  %(4)    4.21   %
    30+ day performing
     delinquency rate          4.13  %(4)         4.12  %(4)    4.37   %
    ------------------         ----               ----             ----
    Full-time
     equivalent
     employees (in
     thousands)                25.9               26.0             23.7




                      CAPITAL ONE FINANCIAL CORPORATION (COF)
                          FINANCIAL & STATISTICAL SUMMARY
                                 MANAGED BASIS (*)


    (in millions)             2009            2009             2008
    -------------            Q4            Q3 (8)            Q4
                             ---           ------           ---
    Earnings (Managed
     Basis)
    Net Interest Income   $3,170.1        $3,212.0         $2,767.9
    Non-Interest Income
     (2)                   1,198.9         1,372.7          1,183.2
                           -------         -------          -------
    Total Revenue (1)      4,369.0         4,584.7          3,951.1
    Provision for Loan
     Losses                1,846.8         2,200.3          2,879.3
    Marketing Expenses       188.0           103.7            264.9
    Restructuring
     Expenses                 32.0            26.4             52.8
    Goodwill Impairment
     Charge                      -               -            810.9    (5)
    Operating Expenses
     (3)                   1,728.0         1,672.0          1,629.3
                           -------         -------          -------
    Income (Loss) Before
     Taxes                   574.2           582.3         (1,686.1)
    Tax Rate               29.7   %        24.9   %         17.2   %
    Income (Loss) From
     Continuing
     Operations, Net of
     Tax                    $403.9          $437.1        $(1,396.3)
    Loss From
     Discontinued
     Operations, Net of
     Tax                     (28.3)          (43.6)           (25.2)
                             -----           -----            -----
    Net Income (Loss)       $375.6          $393.5        $(1,421.5)
                            ------          ------        ---------
    Net Income (Loss)
     Available to Common
     Shareholders (F)       $375.6          $393.5        $(1,454.3)
    --------------------    ------          ------        ---------
    Managed Balance Sheet
     Statistics (period
     average) (A)
    Average Loans Held
     for Investment       $138,184        $143,540         $146,586
    Average Earning
     Assets               $183,899        $185,874         $182,660
    Average Assets        $210,425        $214,654         $207,232
    Return on Average
     Assets (ROA)          0.77   %        0.81   %        (2.70)  %
    -----------------         ----            ----           ------
    Managed Balance Sheet
     Statistics (period
     end) (A)
    Loans Held for
     Investment           $136,803        $140,990         $146,937
    Total Assets          $212,143        $209,683         $209,840
    Tangible Assets(D)    $198,037        $195,566         $197,337
    Tangible Common
     Equity (E)            $12,483         $12,075          $10,988
    Tangible Common
     Equity to Tangible
     Assets Ratio (H)      6.30   %        6.17   %         5.57   %
    % Off-Balance Sheet
     Securitizations         34   %          31   %           31   %
    -------------------        ---             ---              ---
    Performance
     Statistics (Managed)
     (A)
    Net Interest Income
     Growth (annualized)     (5)  %          34   %          (17)  %
    Non Interest Income
     Growth (annualized)    (51)  %          62   %          (43)  %
    Revenue Growth
     (annualized)           (19)  %          42   %          (25)  %
    Net Interest Margin    6.90   %        6.91   %         6.06   %
    Revenue Margin         9.50   %        9.87   %         8.65   %
    Risk Adjusted Margin
     (B)                   4.74   %        5.23   %         4.65   %
    Non Interest Expense
     as a % of Average
     Loans Held for
     Investment
     (annualized)          5.64   %  5.02   %       5.31  %(6)
                             43.85           38.73
    Efficiency Ratio (C)         %               %            47.94  %(6)
    --------------------     -----           -----            -----
    Asset Quality
     Statistics (Managed)
     (A)
    Net Charge-Offs         $2,188    (4)   $2,155    (4)    $1,826
    Net Charge-Off Rate       6.33  %(4)      6.00  %(4)    4.98   %
    30+ day performing
     delinquency rate         4.73  %(4)      4.55  %(4)    4.49   %
    ------------------        ----  ----      ----  ----       ----




    (*) The information in this statistical summary reflects the
    adjustment to add back the effect of securitization transactions
    qualifying as sales under generally accepted accounting principles.
    See accompanying schedule -"Reconciliation to GAAP Financial
    Measures".


                     CAPITAL ONE FINANCIAL CORPORATION (COF)
                      FINANCIAL & STATISTICAL SUMMARY NOTES

    (1) In accordance with the Company's finance charge and fee revenue
     recognition policy, the amounts billed to customers but not recognized
     as revenue were as follows: Q4 2009 -$490.4 million, Q3 2009 -$517.0
     million, and Q4 2008 -$591.0 million.

    (2) Includes the impact from the change in fair value of retained
     interests, including the interest-only strips, of increases of $55.3
     million in Q4 2009 and $37.3 million in Q3 2009, and a decrease of
     $158.2 million in Q4 2008.

    (3) Includes core deposit intangible amortization expense of $53.8
     million in Q4 2009, $55.5 million in Q3 2009 and $46.0 million in Q4
     2008, and integration costs of $22.1 million in Q4 2009, $10.7 million
     in Q3 2009, and $3.2 million in Q4 2008.

    (4) Allowance as a % of Reported Loans Held for Investment, Net Charge-
     off Rate and 30+ Day Performing Delinquency Rate on both a Reported and
     Managed basis include period end loans held for investment and average
     loans held for investment acquired as part of the Chevy Chase Bank, FSB
     (CCB) acquisition. The reported and managed metrics excluding such loans
     are as follows. The net charge-off dollars were unchanged.



                                                       Q4 2009   Q3 2009(8)
                                                       -------   ----------
     CCB period end acquired loan portfolio (in
      millions)                                        $7,250.5     $7,885.0
     CCB average acquired loan portfolio (in millions) $7,511.9     $8,028.8
     Allowance as a % of reported loans held for
      investment                                           4.95%        5.08%
     Net charge-off rate (Reported)                        5.44%        4.94%
     Net charge-off rate (Managed)                         6.70%        6.36%
     30+ day performing delinquency rate (Reported)        4.49%        4.48%
     30+ day performing delinquency rate (Managed)         4.99%        4.82%




    (5) In Q4 2008 the Company recorded impairment of goodwill in its
     automobile business of $810.9 million.

    (6) Excludes the impact of the goodwill impairment of $810.9 million.

    (7) Average equity includes the impact of the Company's participation in
     the U.S. Treasury's Capital Purchase Program. On November 14, 2008, the
     Company issued 3,555,199 preferred shares and 12,657,960 warrants to
     purchase common shares at $42.13 per share, while receiving proceeds of
     $3.56 billion.  The allocated fair value for the preferred shares and
     the warrants to purchase common shares was $3.06 billion and $491.5
     million, respectively. On June 17, 2009, the Company repurchased all
     3,555,199 preferred shares issued in Q4 2008 for approximately $3.57
     billion, including accrued dividends. The warrants to purchase common
     shares were sold by the U.S. Treasury on December 11, 2009 at a price of
     $11.75 per warrant. The sale by the US Treasury had no impact on the
     company's equity. The warrants remain outstanding and are included in
     paid-in capital on the balance sheet.

    (8) Results and balances have been recast to reflect the impact of
     purchase accounting adjustments from the Chevy Chase Bank acquisition as
     if those adjustments had been recorded at the acquisition date as the
     purchase accounting has been finalized during Q4 2009.  The following
     highlights the changes to key line items from what was previously
     disclosed.




      (in millions)                                            Q3 2009
                                                               -------
      Net income increase (decrease)                          $(32.1)
      Loans held for investment (decrease)                     (68.7)
      Goodwill increase                                         40.0
      Other assets (including deferred taxes)
       increase                                                 25.7

      STATISTICS / METRIC DEFINITIONS
      -------------------------------




    (A)  Based on continuing operations.  Average equity and return on
    equity are based on the Company's stockholders' equity.

    (B)  Risk adjusted margin equals total revenue less net charge-offs
    as a percentage of average earning assets.

    (C)  Efficiency ratio equals non-interest expense less restructuring
    expense divided by total revenue.

    (D)  Tangible assets include managed assets less intangible assets
    and is considered a non-GAAP measure.  See accompanying schedule
    Reconciliation to GAAP Financial Measures for a reconciliation of
    tangible assets

    (E)  Includes stockholders' equity less preferred shares less
    intangible assets and related deferred tax liabilities.  Tangible
    Common Equity on a reported and managed basis is the same and is
    considered a non-GAAP measure.  See accompanying schedule
    Reconciliation To GAAP Financial Measures for a reconciliation of
    tangible common equity.

    (F)  Net income (loss) available to common shareholders equals net
    income (loss) less dividends on preferred shares.

    (G)  Earnings per share is based on net income (loss) available to
    common shareholders.

    (H)  Tangible Common Equity to Tangible Assets Ratio ("TCE Ratio") is
    considered a non-GAAP measure. See accompanying schedule
    Reconciliation To GAAP Financial Measures for a reconciliation of
    the TCE Ratio.

    CAPITAL ONE FINANCIAL CORPORATION
    Reconciliation to GAAP Financial Measures

    (dollars in thousands)(unaudited)

    The Company's consolidated financial statements prepared in
    accordance with generally accepted accounting principles ("GAAP")
    are referred to as its "reported" financial statements.  Loans
    included in securitization transactions which qualified as sales
    under GAAP have been removed from the Company's "reported" balance
    sheet.  However, servicing fees, finance charges, and other fees,
    net of charge-offs, and interest paid to investors of
    securitizations are recognized as servicing and securitizations
    income on the "reported" income statement.

    The Company's "managed" consolidated financial statements reflect
    adjustments made related to effects of securitization transactions
    qualifying as sales under GAAP.  The Company generates earnings from
    its "managed" loan portfolio which includes both the on-balance
    sheet loans and off-balance sheet loans.  The Company's "managed"
    income statement takes the components of the servicing and
    securitizations income generated from the securitized portfolio and
    distributes the revenue and expense to appropriate income statement
    line items from which they originated.  For this reason the Company
    believes the "managed" consolidated financial statements and related
    managed metrics to be useful to stakeholders.


                              For the Three Months Ended December 31,
                                                   2009
                             Total                                  Total
                           Reported         Adjustments(1)       Managed(2)
                             --------       --------------        ----------
    Income Statement
     Measures(3)
    Net interest income    $1,954,213           $1,215,901        $3,170,114
    Non-interest income     1,411,752             (212,824)        1,198,928
                            ---------             --------         ---------
    Total revenue           3,365,965            1,003,077         4,369,042
    Provision for loan
     and lease losses         843,728            1,003,077         1,846,805
    Net charge-offs        $1,184,894           $1,003,077        $2,187,971
    ---------------        ----------           ----------        ----------
    Balance Sheet
     Measures
    Loans held for
     investment           $90,618,999          $46,183,903      $136,802,902
    Total assets         $169,400,094          $42,767,131      $212,167,225
    Total liabilities    $142,810,684          $42,767,131      $185,577,815
    Average loans held
     for investment       $94,731,990          $43,452,191      $138,184,181
    Average earning
     assets              $143,682,608          $40,236,099      $183,918,707
    Average total assets $169,885,959          $40,568,925      $210,454,884
    Average total
     liabilities         $143,368,047          $40,568,925      $183,936,972
    Delinquencies          $3,746,264           $2,718,895        $6,465,159
    -------------          ----------           ----------        ----------



    The table below presents a reconciliation of tangible common equity
    and tangible assets, which are the components used to calculate the
    tangible common equity "TCE" ratio.  The Company believes the TCE
    ratio is an important financial measure of capital strength to our
    investors and readers even though it is considered to be a non-GAAP
    measure.


                                      2009      2009      2008
    (dollars in
     millions)(unaudited)           Q4      Q3(5)       Q4
                                   ---      -----      ---

    Equity                         $26,589   $26,192   $26,612
    Less: preferred stock                -         -    (3,120)
    Less: intangible assets (4)    (14,106)  (14,117)  (12,503)
                                   -------   -------   -------
    Tangible common equity         $12,483   $12,075   $10,989
                                   =======   =======   =======

    Total assets                   212,167   209,714   209,875
    Less: discontinued ops assets      (24)      (31)      (35)
                                       ---       ---       ---
    Total assets- continuing ops   212,143   209,683   209,840
    Less: intangible assets (4)    (14,106)  (14,117)  (12,503)
                                   -------   -------   -------
    Tangible assets               $198,037  $195,566  $197,337
                                  ========  ========  ========

    TCE ratio                         6.30      6.17      5.57



    (1) Income statement adjustments reclassify the net of finance
    charges of $1,320.8 million, past-due fees of $193.5 million, other
    interest income of $(50.7) million and interest expense of $247.7
    million; and net charge-offs of $1,003.1 million from non-interest
    income to net interest income and provision for loan and lease
    losses, respectively.
    (2) The managed loan portfolio does not include auto loans or
    mortgage loans which have been sold in whole loan sale transactions
    or securitizations where the Company has retained servicing rights.
    (3) Based on continuing operations.
    (4) Includes impact from related deferred taxes.
    (5) Amounts have been recast to reflect the impact of purchase
    accounting adjustments from the Chevy Chase Bank acquisition as if
    those adjustments had been recorded at the acquisition date as the
    purchase accounting has been completed during Q4 2009.

    CAPITAL ONE FINANCIAL CORPORATION
    Consolidated Balance Sheets
    (in thousands)(unaudited)


                                      As of         As of         As of
                                      -----         -----         -----
                                                  September
                                   December 31        30       December 31
                                   -----------   ----------    -----------
                                           2009       2009(1)          2008
                                           ----        ------          ----

    Assets:
    Cash and due from banks          $3,100,110    $2,719,100    $2,047,839
    Federal funds sold and
     resale agreements                  541,570       544,793       636,752
    Interest-bearing deposits
     at other banks                   5,042,944       863,310     4,806,752
                                      ---------       -------     ---------
        Cash and cash equivalents     8,684,624     4,127,203     7,491,343
    Securities available for
     sale                            38,829,562    37,693,001    31,003,271
    Securities held to
     maturity                            80,577        83,608             -
    Loans held for sale                 268,307       141,158        68,462
    Loans held for investment        90,618,999    96,714,341   101,017,771
        Less:  Allowance for loan
         and lease losses            (4,127,395)   (4,513,493)   (4,523,960)
                                     ----------    ----------    ----------
    Net loans held for
     investment                      86,491,604    92,200,848    96,493,811
    Accounts receivable from
     securitizations                  7,629,597     6,985,200     6,342,754
    Premises and equipment,
     net                              2,735,623     2,773,173     2,313,106
    Interest receivable                 936,146       910,642       827,909
    Goodwill                         13,596,368    13,564,807    11,964,487
    Other                            10,147,686     9,983,892     9,408,309
                                     ----------     ---------     ---------
        Total assets               $169,400,094  $168,463,532  $165,913,452
                                   ============  ============  ============


    Liabilities:
    Non-interest-bearing
     deposits                       $13,438,659   $12,734,589   $11,293,852
    Interest-bearing deposits       102,370,437   101,768,522    97,326,937
    Senior and subordinated
     notes                            9,045,470     9,208,769     8,308,843
    Other borrowings                 11,968,461    12,126,181    14,869,648
    Interest payable                    509,105       582,969       676,398
    Other                             5,478,552     5,850,124     6,825,341
                                      ---------     ---------     ---------
        Total liabilities           142,810,684   142,271,154   139,301,019

    Stockholders' Equity:
    Preferred stock                           -             -     3,096,466
    Common stock                          5,024         5,021         4,384
    Paid-in capital, net             18,954,823    18,928,719    17,278,102
    Retained earnings and
     cumulative other
     comprehensive income            10,810,022    10,431,005     9,399,368
        Less:  Treasury stock, at
         cost                        (3,180,459)   (3,172,367)   (3,165,887)
                                     ----------    ----------    ----------
        Total stockholders' equity   26,589,410    26,192,378    26,612,433
                                     ----------    ----------    ----------
        Total liabilities and
         stockholders' equity      $169,400,094  $168,463,532  $165,913,452
                                   ------------  ------------  ------------



    (1) Amounts have been recast to reflect the impact of purchase
    accounting adjustments from Chevy Chase Bank acquisition as if those
    adjustments had been recorded at the acquisition date as the
    purchase accounting has been finalized during Q4 2009.

    CAPITAL ONE FINANCIAL CORPORATION
    Consolidated Statements of Income
    (in thousands, except per share data)(unaudited)



                                               Three Months Ended
                                    December       September       December
                                        31             30              31
                                         2009        2009(2)             2008
                                         ----         ------             ----


    Interest Income:
    Loans held for investment,
     including past-due fees       $2,108,325     $2,220,208       $2,306,796
    Investment securities             403,750        398,835          367,902
    Other                              83,013         83,195           94,123
                                       ------         ------           ------
        Total interest income       2,595,088      2,702,238        2,768,821

    Interest Expense:
    Deposits                          426,415        479,178          684,756
    Senior and subordinated notes      71,093         74,032           92,519
    Other borrowings                  143,367        143,860          189,149
                                      -------        -------          -------
        Total interest expense        640,875        697,070          966,424
                                      -------        -------          -------
    Net interest income             1,954,213      2,005,168        1,802,397
    Provision for loan and lease
     losses                           843,728      1,173,208        2,098,921
                                      -------      ---------        ---------
    Net interest income (loss)
     after provision for loan and
     lease losses                   1,110,485        831,960         (296,524)

    Non-Interest Income:
    Servicing and securitizations     743,075        720,698          590,948
    Service charges and other
     customer-related fees            502,721        496,392          557,331
    Mortgage servicing and other      (30,470)         8,656           14,048
    Interchange                       112,421        122,585          129,409
    Net impairment losses
     recognized in earnings(1)        (10,384)       (11,173)          (4,808)
    Other                              94,389        215,210           81,358
                                       ------        -------           ------
        Total non-interest income   1,411,752      1,552,368        1,368,286

    Non-Interest Expense:
    Salaries and associate
     benefits                         641,225        648,180          574,199
    Marketing                         187,958        103,698          264,943
    Communications and data
     processing                       171,286        175,575          196,924
    Supplies and equipment            129,422        122,777          130,038
    Occupancy                         121,822        113,913          112,492
    Restructuring expense              32,037         26,357           52,839
    Goodwill impairment charge              -              -          810,876
    Other                             664,243        611,558          615,632
                                      -------        -------          -------
        Total non-interest expense  1,947,993      1,802,058        2,757,943
                                    ---------      ---------        ---------
    Income from continuing
     operations before income
     taxes                            574,244        582,270       (1,686,181)
    Income taxes                      170,359        145,212         (289,856)
                                      -------        -------         --------
    Income from continuing
     operations, net of tax           403,885        437,058       (1,396,325)
    Loss from discontinued
     operations, net of tax           (28,293)       (43,587)         (25,221)
                                      -------        -------          -------
    Net income                       $375,592       $393,471      $(1,421,546)
                                     ========       ========      ===========
    Net income (loss) available to
     common shareholders             $375,592       $393,471      $(1,454,269)
                                     ========       ========      ===========



    Basic earnings per common
     share
    Income (loss) from continuing
     operations                         $0.90          $0.97           $(3.67)
    Loss from discontinued
     operations                         (0.07)         (0.09)           (0.07)
                                        -----          -----            -----
    Net Income (loss) per common
     share                              $0.83          $0.88           $(3.74)
                                        =====          =====           ======

    Diluted earnings per common
     share
    Income (loss) from continuing
     operations                         $0.89          $0.96           $(3.67)
    Loss from discontinued
     operations                         (0.06)         (0.09)           (0.07)
                                        -----          -----            -----
    Net Income (loss) per common
     share                              $0.83          $0.87           $(3.74)
                                        =====          =====           ======

    Dividends paid per common
     share                              $0.05          $0.05           $0.375
                                        =====          =====           ======







                                                 Year Ended
                                         December        December
                                             31              31
                                              2009            2008
                                              ----            ----


    Interest Income:
    Loans held for investment,
     including past-due fees            $8,757,066      $9,460,378
    Investment securities                1,610,210       1,224,012
    Other                                  297,309         427,609
                                           -------         -------
        Total interest income           10,664,585      11,111,999

    Interest Expense:
    Deposits                             2,093,019       2,512,040
    Senior and subordinated notes          260,282         444,854
    Other borrowings                       614,169       1,006,390
                                           -------       ---------
        Total interest expense           2,967,470       3,963,284
                                         ---------       ---------
    Net interest income                  7,697,115       7,148,715
    Provision for loan and lease
     losses                              4,230,111       5,101,040
                                         ---------       ---------
    Net interest income (loss)
     after provision for loan and
     lease losses                        3,467,004       2,047,675

    Non-Interest Income:
    Servicing and securitizations        2,279,826       3,384,468
    Service charges and other
     customer-related fees               1,997,013       2,232,363
    Mortgage servicing and other            14,729         105,038
    Interchange                            501,798         562,117
    Net impairment losses
     recognized in earnings(1)             (31,951)        (10,916)
    Other                                  524,737         470,901
                                           -------         -------
        Total non-interest income        5,286,152       6,743,971

    Non-Interest Expense:
    Salaries and associate
     benefits                            2,477,655       2,335,737
    Marketing                              588,338       1,118,208
    Communications and data
     processing                            740,543         755,989
    Supplies and equipment                 499,582         519,687
    Occupancy                              450,871         377,192
    Restructuring expense                  119,395         134,464
    Goodwill impairment charge                   -         810,876
    Other                                2,540,670       2,157,874
                                         ---------       ---------
        Total non-interest expense       7,417,054       8,210,027
                                         ---------       ---------
    Income from continuing
     operations before income
     taxes                               1,336,102         581,619
    Income taxes                           349,485         497,102
                                           -------         -------
    Income from continuing
     operations, net of tax                986,617          84,517
    Loss from discontinued
     operations, net of tax               (102,836)       (130,515)
                                          --------        --------
    Net income                            $883,781        $(45,998)
                                          ========        ========
    Net income (loss) available to
     common shareholders                  $319,873        $(78,721)
                                          ========        ========



    Basic earnings per common
     share
    Income (loss) from continuing
     operations                              $0.99           $0.14
    Loss from discontinued
     operations                              (0.24)          (0.35)
                                             -----           -----
    Net Income (loss) per common
     share                                   $0.75          $(0.21)
                                             =====          ======

    Diluted earnings per common
     share
    Income (loss) from continuing
     operations                              $0.98           $0.14
    Loss from discontinued
     operations                              (0.24)          (0.35)
                                             -----           -----
    Net Income (loss) per common
     share                                   $0.74          $(0.21)
                                             =====          ======

    Dividends paid per common
     share                                  $0.525           $1.50
                                            ======           =====




    (1) For the three months and year ended December 31, 2009, the
    Company recorded other-than-temporary impairment losses of $10.4
    million and $31.6 million, respectively. Total unrealized losses on
    these securities recognized in other comprehensive income as a
    component of stockholders' equity at December 31, 2009 was $181.3
    million.
    (2) Amounts have been recast to reflect the impact of purchase
    accounting adjustments from the Chevy Chase Bank acquisition as if
    those adjustments had been recorded at the acquisition date as the
    purchase accounting has been finalized during Q4 2009.

    CAPITAL ONE FINANCIAL CORPORATION
    Statements of Average Balances, Income and Expense, Yields and Rates
    (1)
    (dollars in thousands)(unaudited)


    Reported                                     Quarter Ended 12/31/09
                                                 ----------------------

                                         Average       Income/     Yield/
                                         Balance       Expense      Rate
                                         -------       -------      ----
    Earning assets:

      Loans held for investment         $94,731,990  $2,108,325      8.90%
      Investment Securities (2)          38,486,624     403,750      4.20%
      Other                              10,444,494      83,013      3.18%
                                         ----------      ------      ----
    Total earning assets               $143,663,108  $2,595,088      7.23%
                                       ============  ==========

    Interest-bearing
     liabilities:
      Interest-bearing deposits
        NOW accounts                     10,587,851      13,696      0.52%
        Money market deposit
         accounts                        37,460,109      96,583      1.03%
        Savings accounts                 15,416,242      35,326      0.92%
        Other consumer time deposits     27,273,129     200,499      2.94%
        Public fund CD's of $100,000
         or more                            753,764       2,201      1.17%
        CD's of $100,000 or more          8,633,998      76,692      3.55%
        Foreign time deposits             1,019,090       1,418      0.56%
                                          ---------       -----      ----
      Total interest-bearing
       deposits                        $101,144,183    $426,415      1.69%
      Senior and subordinated
       notes                              8,759,304      71,093      3.25%
      Other borrowings                   14,156,503     143,367      4.05%
                                         ----------     -------      ----
    Total interest-bearing
     liabilities                       $124,059,990    $640,875      2.07%
                                       ============    ========


    Net interest spread                                              5.16%
                                                                     ====

    Interest income to average
     earning assets                                                  7.23%
    Interest expense to average
     earning assets                                                  1.78%
                                                                     ----
    Net interest margin                                              5.44%
                                                                     ====




    Reported                                  Quarter Ended 09/30/09(3)
                                              -------------------------

                                         Average      Income/     Yield/
                                         Balance      Expense      Rate
                                         -------      -------      ----
    Earning assets:

      Loans held for investment        $99,354,028  $2,220,208      8.94%
      Investment Securities (2)         37,376,895     398,835      4.27%
      Other                              8,548,610      83,195      3.89%
                                         ---------      ------      ----
    Total earning assets              $145,279,533  $2,702,238      7.44%
                                      ============  ==========

    Interest-bearing
     liabilities:
      Interest-bearing deposits
        NOW accounts                    10,418,557      12,745      0.49%
        Money market deposit
         accounts                       36,036,826      96,477      1.07%
        Savings accounts                12,266,254      22,772      0.74%
        Other consumer time deposits    32,075,905     248,272      3.10%
        Public fund CD's of $100,000
         or more                         1,061,134       2,789      1.05%
        CD's of $100,000 or more         9,764,172      92,681      3.80%
        Foreign time deposits            1,482,519       3,442      0.93%
                                         ---------       -----      ----
      Total interest-bearing
       deposits                       $103,105,367    $479,178      1.86%
      Senior and subordinated
       notes                             9,553,950      74,032      3.10%
      Other borrowings                  13,480,527     143,860      4.27%
                                        ----------     -------      ----
    Total interest-bearing
     liabilities                      $126,139,844    $697,070      2.21%
                                      ============    ========


    Net interest spread                                             5.23%
                                                                    ====

    Interest income to average
     earning assets                                                 7.44%
    Interest expense to average
     earning assets                                                 1.92%
                                                                    ----
    Net interest margin                                             5.52%
                                                                    ====




    Reported                                        Quarter Ended 12/31/08
                                                    ----------------------
                                         Average        Income/      Yield/
                                         Balance        Expense      Rate
                                         -------        -------      ----
    Earning assets:

      Loans held for investment         $99,334,890     $2,306,796     9.29%
      Investment Securities (2)          28,961,247        367,902     5.08%
      Other                               9,502,781         94,123     3.96%
                                          ---------         ------     ----
    Total earning assets               $137,798,918     $2,768,821     8.04%
                                       ============     ==========

    Interest-bearing
     liabilities:
      Interest-bearing deposits
        NOW accounts                     $9,874,696        $28,460     1.15%
        Money market deposit
         accounts                        28,556,264        171,891     2.41%
        Savings accounts                  7,275,816         11,774     0.65%
        Other consumer time deposits     33,712,504        337,651     4.01%
        Public fund CD's of $100,000
         or more                          1,213,364          7,323     2.41%
        CD's of $100,000 or more          9,508,463        104,134     4.38%
        Foreign time deposits             3,002,402         23,523     3.13%
                                          ---------         ------     ----
      Total interest-bearing
       deposits                         $93,143,509       $684,756     2.94%
      Senior and subordinated
       notes                              8,034,423         92,519     4.61%
      Other borrowings                   16,428,096        189,149     4.61%
                                         ----------        -------     ----
    Total interest-bearing
     liabilities                       $117,606,028       $966,424     3.29%
                                       ============       ========


    Net interest spread                                                4.75%
                                                                       ====

    Interest income to average
     earning assets                                                    8.04%
    Interest expense to average
     earning assets                                                    2.81%
                                                                       ----
    Net interest margin                                                5.23%
                                                                       ====



    (1) Average balances, income and expenses, yields and rates are based
    on continuing operations.
    (2) Includes securities available for sale and securities held to
    maturity.
    (3) Amounts have been recast to reflect the impact of purchase
    accounting adjustments from the Chevy Chase Bank acquisition as if
    those adjustments had been recorded at the acquisition date as the
    purchase accounting has been finalized during Q4 2009.

    CAPITAL ONE FINANCIAL CORPORATION
    Statements of Average Balances, Income and Expense, Yields and Rates
    (2)
    (dollars in thousands)(unaudited)


    Managed (1)                               Quarter Ended 12/31/09
                                              ----------------------
                                     Average       Income/    Yield/
                                     Balance       Expense     Rate
                                     -------       -------     ----
    Earning assets:

      Loans held for
       investment                  $138,184,181  $3,638,071    10.53%
      Investment Securities
       (3)                           38,486,624     403,750     4.20%
      Other                           7,228,402      16,832     0.93%
                                      ---------      ------     ----
    Total earning assets           $183,899,207  $4,058,653     8.83%
                                   ============  ==========

    Interest-bearing
     liabilities:
      Interest-bearing
       deposits
        NOW accounts                $10,587,851     $13,696     0.52%
        Money market deposit
         accounts                    37,460,109      96,583     1.03%
        Savings accounts             15,416,242      35,326     0.92%
        Other consumer time
         deposits                    27,273,129     200,499     2.94%
        Public fund CD's of
         $100,000 or more               753,764       2,201     1.17%
        CD's of $100,000 or more      8,633,998      76,692     3.55%
        Foreign time deposits         1,019,090       1,418     0.56%
                                      ---------       -----     ----
      Total interest-bearing
       deposits                    $101,144,183    $426,415     1.69%
      Senior and subordinated
       notes                          8,759,304      71,093     3.25%
      Other borrowings               14,156,503     143,367     4.05%
      Securitization liability       40,588,015     247,664     2.44%
                                     ----------     -------     ----
    Total interest-bearing
     liabilities                   $164,648,005    $888,539     2.16%
                                   ============    ========


    Net interest spread                                         6.67%
                                                                ====

    Interest income to
     average earning assets                                     8.83%
    Interest expense to
     average earning assets                                     1.93%
                                                                ----
    Net interest margin                                         6.90%
                                                                ====





    Managed (1)                             Quarter Ended 09/30/09(4)
                                            -------------------------
                                     Average      Income/    Yield/
                                     Balance      Expense     Rate
                                     -------      -------     ----
    Earning assets:

      Loans held for
       investment                 $143,539,902  $3,749,876    10.45%
      Investment Securities
       (3)                          37,376,895     398,835     4.27%
      Other                          4,957,393      18,038     1.46%
                                     ---------      ------     ----
    Total earning assets          $185,874,190  $4,166,749     8.97%
                                  ============  ==========

    Interest-bearing
     liabilities:
      Interest-bearing
       deposits
        NOW accounts               $10,418,557     $12,745     0.49%
        Money market deposit
         accounts                   36,036,826      96,477     1.07%
        Savings accounts            12,266,254      22,772     0.74%
        Other consumer time
         deposits                   32,075,905     248,272     3.10%
        Public fund CD's of
         $100,000 or more            1,061,134       2,789     1.05%
        CD's of $100,000 or more     9,764,172      92,681     3.80%
        Foreign time deposits        1,482,519       3,442     0.93%
                                     ---------       -----     ----
      Total interest-bearing
       deposits                   $103,105,367    $479,178     1.86%
      Senior and subordinated
       notes                         9,553,950      74,032     3.10%
      Other borrowings              13,480,527     143,860     4.27%
      Securitization liability      41,251,788     257,642     2.50%
                                    ----------     -------     ----
    Total interest-bearing
     liabilities                  $167,391,632    $954,712     2.28%
                                  ============    ========


    Net interest spread                                        6.69%
                                                               ====

    Interest income to
     average earning assets                                    8.97%
    Interest expense to
     average earning assets                                    2.05%
                                                               ----
    Net interest margin                                        6.91%
                                                               ====





    Managed (1)                                Quarter Ended 12/31/08
                                               ----------------------
                                     Average      Income/    Yield/
                                     Balance      Expense     Rate
                                     -------      -------     ----
    Earning assets:

      Loans held for
       investment                 $146,586,152  $3,808,363    10.39%
      Investment Securities
       (3)                          28,961,247     367,902     5.08%
      Other                          7,112,807      29,558     1.66%
                                     ---------      ------     ----
    Total earning assets          $182,660,206  $4,205,823     9.21%
                                  ============  ==========

    Interest-bearing
     liabilities:
      Interest-bearing
       deposits
        NOW accounts                $9,874,696     $28,460     1.15%
        Money market deposit
         accounts                   28,556,264     171,891     2.41%
        Savings accounts             7,275,816      11,774     0.65%
        Other consumer time
         deposits                   33,712,504     337,651     4.01%
        Public fund CD's of
         $100,000 or more            1,213,364       7,323     2.41%
        CD's of $100,000 or more     9,508,463     104,134     4.38%
        Foreign time deposits        3,002,402      23,523     3.13%
                                     ---------      ------     ----
      Total interest-bearing
       deposits                    $93,143,509    $684,756     2.94%
      Senior and subordinated
       notes                         8,034,423      92,519     4.61%
      Other borrowings              16,428,096     189,149     4.61%
      Securitization liability      45,610,272     471,517     4.14%
                                    ----------     -------     ----
    Total interest-bearing
     liabilities                  $163,216,300  $1,437,941     3.52%
                                  ============  ==========


    Net interest spread                                        5.69%
                                                               ====

    Interest income to
     average earning assets                                    9.21%
    Interest expense to
     average earning assets                                    3.15%
                                                               ----
    Net interest margin                                        6.06%
                                                               ====




    (1) The information in this table reflects the adjustment to add back
    the effect of securitized loans.
    (2) Average balances, income and expenses, yields and rates are based
    on continuing operations.
    (3) Includes securities available for sale and securities held to
    maturity.
    (4) Amounts have been recast to reflect the impact of purchase
    accounting adjustments from the Chevy Chase Bank acquisition as if
    those adjustments had been recorded at the acquisition date as the
    purchase accounting has been finalized during Q4 2009.

                     CAPITAL ONE FINANCIAL CORPORATION (COF)
                        LENDING INFORMATION AND STATISTICS
                              MANAGED BASIS (1) (9)


                                     2009               2009          2008
                                     ----               ----          ----
                                  Q4               Q3(10)          Q4
                                 ---               ------         ---

    Period end loans held
     for investment
    (in thousands)
    Domestic credit card      $60,299,827        $61,891,573   $70,944,581
    International credit
     card                       8,223,835          8,477,236     8,720,642
                                ---------          ---------     ---------
      Total Credit Card       $68,523,662        $70,368,809   $79,665,223
                              -----------        -----------   -----------

    Commercial and multi-
     family real estate       $13,843,158        $13,977,873   $13,303,081
    Middle market              10,061,819         10,022,822    10,081,823
    Specialty lending           3,554,563          3,399,432     3,547,287
                                ---------          ---------     ---------
      Total Commercial
       Lending                $27,459,540        $27,400,127   $26,932,191
    Small ticket
     commercial real
     estate                     2,153,510  (11)    2,412,400     2,609,123
                                ---------          ---------     ---------
      Total Commercial
       Banking                $29,613,050        $29,812,527   $29,541,314
                              -----------        -----------   -----------

    Automobile                $18,186,064        $19,295,218   $21,494,436
    Mortgages                  14,893,187         15,638,974    10,098,430
    Retail banking              5,135,242          5,215,155     5,603,696
                                ---------          ---------     ---------
      Total Consumer Banking  $38,214,493        $40,149,347   $37,196,562
                              -----------        -----------   -----------

    Other loans (8)              $451,697           $659,008       $533,65
                                 --------           --------       -------
         Total               $136,802,902       $140,989,691  $146,936,754
                             ============       ============  ============

    Average loans held for
     investment
    (in thousands)
    Domestic credit card      $60,443,441        $63,298,525   $69,643,290
    International credit
     card                       8,299,895          8,609,235     9,440,972
                                ---------          ---------     ---------
      Total Credit Card       $68,743,336        $71,907,760   $79,084,262
                              -----------        -----------   -----------

    Commercial and multi-
     family real estate       $13,926,098        $13,938,037   $13,082,096
    Middle market              10,052,406          9,911,314    10,093,083
    Specialty lending           3,534,537          3,753,054     3,584,963
                                ---------          ---------     ---------
      Total Commercial
       Lending                $27,513,041        $27,602,405   $26,760,142
    Small ticket
     commercial real
     estate                     2,354,204          2,470,961     2,655,883
                                ---------          ---------     ---------
      Total Commercial
       Banking                $29,867,245        $30,073,366   $29,416,025
                              -----------        -----------   -----------

    Automobile                $18,767,555        $19,635,979   $21,967,154
    Mortgages                  15,345,635         15,926,662    10,201,024
    Retail banking              5,000,933          5,513,230     5,366,737
                                ---------          ---------     ---------
      Total Consumer Banking  $39,114,123        $41,075,871   $37,534,915
                              -----------        -----------   -----------

    Other loans (8)              $459,477           $482,905      $550,950
                                 --------           --------      --------
         Total               $138,184,181       $143,539,902  $146,586,152
                             ============       ============  ============

    Net Charge-off Rates
    Domestic credit card             9.59%              9.64%         7.08%
    International credit
     card                            9.52%              9.19%         5.84%
                                     ----               ----          ----
      Total Credit Card              9.58%              9.59%         6.93%
                                     ----               ----          ----

    Commercial and multi-
     family real estate
     (5)                             3.02%              1.37%         1.16%
    Middle market (5)                0.75%              0.56%         0.47%
    Specialty lending                1.85%              1.39%         0.47%
                                     ----               ----          ----
      Total Commercial
       Lending (5)                   2.04%              1.08%         0.81%
    Small ticket
     commercial real
     estate                         13.08% (11)         5.19%         0.90%
                                    -----               ----          ----
      Total Commercial
       Banking (5)                   2.91%              1.42%         0.82%
                                     ----               ----          ----

    Automobile                       4.55%              4.38%         5.67%
    Mortgages (5)                    0.71%              0.69%         0.46%
    Retail banking (5)               3.03%              2.44%         2.15%
                                     ----               ----          ----
      Total Consumer Banking
       (5)                           2.85%              2.69%         3.75%
                                     ----               ----          ----

    Other loans                     28.26%             28.53%        21.65%
                                    -----              -----         -----
         Total                       6.33%              6.00%         4.98%
                                     ====               ====          ====

    30+ day performing
     delinquency rate
    Domestic credit card             5.78%              5.38%         4.78%
    International credit
     card                            6.55%              6.63%         5.51%
                                     ----               ----          ----
      Total Credit Card              5.88%              5.53%         4.86%
                                     ----               ----          ----

    Automobile (7)                  10.03%              9.52%         9.90%
    Mortgages (5)                    1.26%              1.17%         1.57%
    Retail banking (5)               1.23%              1.26%         1.06%
                                     ----               ----          ----
      Total Consumer Banking
       (5)                           5.43%              5.19%         6.31%
                                     ====               ====          ====

    Non Performing Asset
     Rates (2) (6)
    Commercial and multi-
     family real estate
     (5)                             3.25%              2.66%         1.21%
    Middle market (5)                1.09%              1.25%         0.43%
    Specialty lending                2.25%              2.12%         1.05%
                                     ----               ----          ----
      Total Commercial
       Lending (5)                   2.33%              2.08%         0.89%
    Small ticket
     commercial real
     estate                          4.87% (11)        11.39%         6.67%
                                     ----              -----          ----
      Total Commercial
       Banking (5)                   2.52%              2.84%         1.41%
                                     ----               ----          ----

    Automobile (8)                   0.92%              0.87%         1.06%
    Mortgages (5)                    2.24%              1.83%         1.28%
    Retail banking (5)               2.11%              1.98%         1.51%
                                     ----               ----          ----
      Total Consumer Banking
       (5)                           1.60%              1.39%         1.19%
                                     ====               ====          ====


                     CAPITAL ONE FINANCIAL CORPORATION (COF)
        CREDIT CARD SEGMENT FINANCIAL & STATISTICAL SUMMARY FOR CONTINUING
                                    OPERATIONS
                              MANAGED BASIS (1) (9)

                                          2009         2009         2008
    (in thousands)                      Q4           Q3           Q4
    --------------                     ---          ---          ---
    Credit Card:
    ------------
    Earnings
      Net interest income           $2,029,221   $2,024,250   $1,816,484
      Non-interest income              897,006      966,862    1,138,220
                                       -------      -------    ---------
      Total revenue                 $2,926,227   $2,991,112   $2,954,704
      Provision for loan and lease
       losses                        1,204,693    1,643,721    2,164,529
      Non-interest expenses            942,428      897,578    1,075,446
                                       -------      -------    ---------
      Income (loss) before taxes       779,106      449,813     (285,271)
      Income taxes (benefit)           269,182      158,074      (98,053)
                                       -------      -------      -------
      Net income (loss)               $509,924     $291,739    $(187,218)
                                      ========     ========    =========

    Selected Metrics
      Period end loans held for
       investment                  $68,523,662  $70,368,809  $79,665,223
      Average loans held for
       investment                  $68,743,336  $71,907,760  $79,084,262
      Loans held for investment
       yield                             14.21%       13.75%       12.56%
      Revenue margin                     17.03%       16.64%       14.94%
      Net charge-off rate                 9.58%        9.59%        6.93%
      30+ day performing
       delinquency rate                   5.88%        5.53%        4.86%
      Purchase Volume (3)          $26,865,498  $25,982,259  $27,564,750

    Domestic Card Sub-segment
    Earnings
      Net interest income           $1,781,573   $1,797,173   $1,608,705
      Non-interest income              793,934      855,571    1,018,689
                                       -------      -------    ---------
      Total revenue                 $2,575,507   $2,652,744   $2,627,394
      Provision for loan and lease
       losses                        1,033,341    1,436,959    2,000,928
      Non-interest expenses            832,878      769,995      897,687
                                       -------      -------      -------
      Income (loss) before taxes       709,288      445,790     (271,221)
      Income taxes (benefit)           248,251      156,027      (94,928)
                                       -------      -------      -------
      Net income (loss)               $461,037     $289,763    $(176,293)
                                      ========     ========    =========

    Selected Metrics
      Period end loans held for
       investment                  $60,299,827  $61,891,573  $70,944,581
      Average loans held for
       investment                  $60,443,441  $63,298,525  $69,643,290
      Loans held for investment
       yield                             14.08%       13.74%       12.52%
      Revenue margin                     17.04%       16.76%       15.09%
      Net charge-off rate                 9.59%        9.64%        7.08%
      30+ day performing
       delinquency rate                   5.78%        5.38%        4.78%
      Purchase Volume (3)          $24,592,679  $23,760,963  $25,217,781

    International Card Sub-
     segment
    Earnings
      Net interest income             $247,648     $227,077     $207,779
      Non-interest income              103,072      111,291      119,531
                                       -------      -------      -------
      Total revenue                   $350,720     $338,368     $327,310
      Provision for loan and lease
       losses                          171,352      206,762      163,601
      Non-interest expenses            109,550      127,583      177,759
                                       -------      -------      -------
      Income (loss) before taxes        69,818        4,023      (14,050)
      Income taxes (benefit)            20,931        2,047       (3,125)
                                        ------        -----       ------
      Net income (loss)               $48,887.       $1,976     $(10,925)
                                      ========       ======     ========

    Selected Metrics
      Period end loans held for
       investment                   $8,223,835   $8,477,236   $8,720,642
      Average loans held for
       investment                   $8,299,895   $8,609,235   $9,440,972
      Loans held for investment
       yield                             15.19%       13.81%       12.84%
      Revenue margin                     16.90%       15.72%       13.87%
      Net charge-off rate                 9.52%        9.19%        5.84%
      30+ day performing
       delinquency rate                   6.55%        6.63%        5.51%
      Purchase Volume (3)           $2,272,819   $2,221,296   $2,346,969


                     CAPITAL ONE FINANCIAL CORPORATION (COF)
          COMMERCIAL BANKING SEGMENT FINANCIAL & STATISTICAL SUMMARY FOR
                              CONTINUING OPERATIONS
                              MANAGED BASIS (1) (9)

                                          2009         2009         2008
    (in thousands)                      Q4        Q3 (10)        Q4
    --------------                     ---        -------        ---
    Commercial Banking:
    -------------------
    Earnings
      Net interest income             $318,576     $301,308     $248,913
      Non-interest income               37,992       43,299       42,803
                                        ------       ------       ------
      Total revenue                   $356,568     $344,607     $291,716
      Provision for loan and lease
       losses                          368,493      375,095      133,154
      Non-interest expenses            197,355      166,043      121,420
                                       -------      -------      -------

      Income (loss) before taxes      (209,280)    (196,531)      37,142
      Income taxes (benefit)           (73,248)     (68,786)      13,000
                                       -------      -------       ------
      Net income (loss)              $(136,032)   $(127,745)     $24,142
                                     =========    =========      =======

    Selected Metrics
      Period end loans held for
       investment                  $29,613,050  $29,812,527  $29,541,314
      Average loans held for
       investment                  $29,867,245  $30,073,366  $29,416,025
      Loans held for investment
       yield                              5.11%        5.06%        5.72%
      Period end deposits          $20,480,297  $18,617,112  $16,483,361
      Average deposits             $19,420,005  $17,760,860  $15,103,199
      Deposit interest expense
       rate                               0.80%        0.75%        1.42%
      Core deposit intangible
       amortization                    $13,847       $9,664       $9,353
      Net charge-off rate (5)             2.91%        1.42%        0.82%
      Non-performing loans as a
       percentage of loans held
       for investment (5)                 2.37%        2.65%        1.31%
      Non-performing asset rate
       (5)                                2.52%        2.84%        1.41%


                     CAPITAL ONE FINANCIAL CORPORATION (COF)
           CONSUMER BANKING SEGMENT FINANCIAL & STATISTICAL SUMMARY FOR
                              CONTINUING OPERATIONS
                              MANAGED BASIS (1) (9)

                                          2009         2009         2008
    (in thousands)                      Q4        Q3 (10)        Q4
    --------------                     ---        -------       ---
    Consumer Banking:
    -----------------
    Earnings
      Net interest income             $833,369     $847,651     $759,716
      Non-interest income              153,099      212,704      159,831
                                       -------      -------      -------
      Total revenue                   $986,468   $1,060,355     $919,547
      Provision for loan and lease
       losses                          249,309      156,052      518,572
      Goodwill impairment (4)                -            -      810,876
      Non-interest expenses            749,021      680,970      629,257
                                       -------      -------      -------

      Income (loss) before taxes       (11,862)     223,333   (1,039,158)
      Income taxes (benefit)            (4,152)      78,166      (86,457)
                                        ------       ------      -------
      Net income (loss)                $(7,710)    $145,167    $(952,701)
                                       =======     ========    =========

    Selected Metrics
      Period end loans held for
       investment                  $38,214,493  $40,149,347  $37,196,562
      Average loans held for
       investment                  $39,114,123  $41,075,871  $37,534,915
      Loans held for investment
       yield                              8.83%        8.89%        9.22%
      Auto loan originations         1,018,125    1,512,707    1,476,136
      Period end deposits          $74,144,805  $72,252,596  $61,763,503
      Average deposits             $72,975,666  $73,284,397  $60,747,850
      Deposit interest expense
       rate                               1.41%        1.58%        2.45%
      Core deposit intangible
       amortization                    $39,974      $45,856      $36,615
      Net charge-off rate (5)             2.85%        2.69%        3.75%
      Non-performing loans as a
       percentage of loans held
       for investment (5) (8)             1.45%        1.26%        0.93%
      Non-performing asset rate
       (5) (7)                            1.60%        1.39%        1.19%
      30+ day performing
       delinquency rate (5) (7)           5.43%        5.19%        6.31%
      Period end loans serviced
       for others                  $30,283,326  $30,659,074  $22,926,037


                     CAPITAL ONE FINANCIAL CORPORATION (COF)
           OTHER AND TOTAL SEGMENT FINANCIAL & STATISTICAL SUMMARY FOR
                              CONTINUING OPERATIONS
                              MANAGED BASIS (1) (9)

    (in thousands)                         2009          2009          2008
    --------------                         ----          ----          ----
                                        Q4          Q3(10)          Q4
                                       ---          ------          ---
    Other:
    ------
    Earnings
      Net interest income              $(11,051)      $38,828      $(57,233)
      Non-interest income               110,829       149,802      (157,674)
                                        -------       -------      --------
      Total revenue                     $99,778      $188,630     $(214,907)
      Provision for loan and lease
       losses                            24,309        25,508        63,043
      Restructuring expenses             32,036        26,356        52,839
      Non-interest expenses              27,152        31,111        68,105
                                         ------        ------        ------
      Income (loss) before taxes         16,281       105,655      (398,894)
      Income taxes (benefit)            (21,423)      (22,242)     (118,346)
                                        -------       -------      --------
      Net income (loss)                 $37,704      $127,897     $(280,548)
                                        =======      ========     =========

    Selected Metrics
      Period end loans held for
       investment (8)                  $451,697      $659,008      $533,655
      Average loans held for
       investment (8)                  $459,477      $482,905      $550,950
      Period end deposits           $21,183,994   $23,633,403   $30,373,925
      Average deposits              $22,201,746   $24,837,483   $28,242,075

    Total:
    ------
    Earnings
      Net interest income            $3,170,115    $3,212,037    $2,767,880
      Non-interest income             1,198,926     1,372,667     1,183,180
                                      ---------     ---------     ---------
      Total revenue                  $4,369,041    $4,584,704    $3,951,060
      Provision for loan and lease
       losses                         1,846,804     2,200,376     2,879,298
      Restructuring expenses             32,036        26,356        52,839
      Goodwill impairment (4)                 -             -       810,876
      Non-interest expenses           1,915,956     1,775,702     1,894,228
                                      ---------     ---------     ---------
      Income (loss) before taxes        574,245       582,270    (1,686,181)
      Income taxes (benefit)            170,359       145,212      (289,856)
                                        -------       -------      --------
      Net income (loss)                $403,886      $437,058   $(1,396,325)
                                       ========      ========   ===========

    Selected Metrics
      Period end loans held for
       investment                  $136,802,902  $140,989,691  $146,936,754
      Average loans held for
       investment                  $138,184,181  $143,539,902  $146,586,152
      Period end deposits          $115,809,096  $114,503,111  $108,620,789
      Average deposits             $114,597,417  $115,882,740  $104,093,124


                     CAPITAL ONE FINANCIAL CORPORATION (COF)
                           LOAN DISCLOSURES AND SEGMENT
         FINANCIAL & STATISTICAL SUMMARY FOR CONTINUING OPERATIONS NOTES


    (1)  The information in this report reflects the adjustment to add back
     the effect of securitization transactions qualifying as sales under
     generally accepted accounting principles. See accompanying schedule -
     ''Reconciliation to GAAP Financial Measures".

    (2)  Non performing assets is comprised of non performing loans and other
     real estate owned (OREO). The non performing asset rate equals non
     performing assets divided by the sum of loans held for investment and
     OREO.

    (3) Includes all purchase transactions net of returns and excludes cash
     advance transactions.

    (4)  In the fourth quarter of 2008 the Company recorded impairment of
     goodwill in its automobile business of $810.9 million.

    (5)  Net charge-off rates and 30+ day performing delinquency rates
     include period end loans held for investment and average loans held for
     investment acquired as part of the Chevy Chase Bank, FSB (CCB)
     acquisition. The period end and average loans held for investment and
     metrics excluding such loans are as follows. Net charge-off dollars
     were unchanged.



                                                   Q4 2009   Q3 2009(10)
                                                   -------   -----------
     CCB period end acquired loan portfolio (in
      millions)                                    $7,250.5     $7,885.0
     CCB average acquired loan portfolio (in
      millions)                                    $7,511.9     $8,028.8
     Net charge-off rate
          Commercial and Multi-Family Real Estate      3.05%        1.38%
          Middle Market                                0.75%        0.56%
                                                       ----         ----
              Total Commercial Lending                 2.05%        1.08%
                                                       ----         ----
                 Total Commercial Banking              2.93%        1.43%

          Mortgage                                     1.24%        1.24%
          Retail Banking                               3.20%        2.57%
                                                       ----         ----
                 Total Consumer Banking                3.45%        3.28%

     30+ day performing delinquency rate
          Mortgage                                     2.18%        2.06%
          Retail Banking                               1.30%        1.33%
                                                       ----         ----
                 Total Consumer Banking                6.56%        6.27%

     Non performing asset rate
          Commercial and Multi-Family Real Estate      3.34%        2.79%
          Middle Market                                1.13%        1.30%
                                                       ----         ----
              Total Commercial Lending                 2.39%        2.15%
                                                       ----         ----
                 Total Commercial Banking              2.62%        2.95%

          Mortgage                                     3.88%        3.24%
          Retail Banking                               2.23%        2.09%
                                                       ----         ----
                 Total Consumer Banking                1.93%        1.68%

     Non performing loans as a percentage of loans
      held for investment
          Commercial Banking                           2.43%        2.73%
          Consumer Banking                             1.75%        1.53%




    (6)  The Company's policy is not to reclassify credit card loans as
     nonperforming loans. Credit card loans continue to accrue finance
     charges and fees until charged off. The amount of finance charges
     and fees considered uncollectible are suppressed and are not
     recognized in income.

    (7)  Includes non accrual consumer auto loans 90+ days past due.

    (8)  Other loans held for investment includes unamortized premiums
     and discounts on loans acquired in the North Fork and Hibernia
     acquisitions.

    (9)  During the third quarter of 2009, the Company realigned its
     business segment reporting structure to better reflect the manner
     in which the performance of the Company's operations are
     evaluated. The Company now reports the results of its business
     through three operating segments: Credit Card, Commercial Banking,
     and Consumer Banking. Segment and certain sub

    --  Credit Card includes the Company's domestic consumer and small
     business card lending, domestic national small business lending,
     national closed end installment lending and the international card
     lending businesses in Canada and the United Kingdom.
    --   Commercial Banking includes the Company's lending, deposit
     gathering and treasury management services to commercial real
     estate and middle market customers. The Commercial segment also
     includes the financial results of a national portfolio of small
     ticket commercial real estate loans that are in run-off mode.
    --   Consumer Banking includes the Company's branch based lending
     and deposit gathering activities for small business customers as
     well as its branch-based consumer deposit gathering and lending
     activities, national deposit gathering, consumer mortgage lending
     and servicing activities and national automobile lending.

      The segment reorganization includes the allocation of Chevy Chase
       Bank to the appropriate segments. Chevy Chase Bank's operations
       are included in the Commercial Banking and Consumer Banking
       segments beginning in the second quarter 2009. Chevy Chase Bank's
       operations for the first quarter of 2009 remain in the Other
       category. Chevy Chase Bank's operations are impacted by the
       Company's analysis of the fair values and purchase price
       allocation of Chevy Chase Bank's assets and liabilities which was
       finalized during the fourth quarter of 2009.

    (10)  Results and balances have been recast to reflect the impact
     of purchase accounting adjustments from the Chevy Chase Bank
     acquisition as if those adjustments had been recorded at the
     acquisition date as the purchase accounting has been finalized
     during Q4 2009.  The following highlights the changes to key line
     items from what was previously disclosed.


     Commercial Banking Consumer Banking Other
     ------------------ ---------------- -----

     (in millions)                      Q3 2009     Q3 2009      Q3 2009
                                        -------     -------      -------
     Net income increase (decrease)           $2.5       $(39.4)        $4.8
     Loans held for investment increase
      (decrease)                            $(49.8)     $(330.4)      $311.5



    (11)  During Q4 2009, the Company reclassified $127.5 million of
    small ticket commercial real estate from loans held for investment
    to loans held for sale and recognized charge-offs of $79.5 million.


SOURCE Capital One Financial Corporation