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Capital One Reports Record Second Quarter Earnings

July 16, 1998 at 12:00 AM EDT

FALLS CHURCH, Va., July 16 /PRNewswire/ -- Capital One Financial Corporation (NYSE: COF) today announced record second quarter 1998 earnings of $66.9 million, or $.96 per share, versus earnings of $65.7 million, or $.96 per share, for the first quarter of 1998 and $39.4 million, or $.58 per share, for the comparable period in the prior year. Earnings per share amounts are reported on a diluted basis.

"We are pleased that our information-based strategy continues to allow us to identify new opportunities in our domestic and international businesses," said Richard D. Fairbank, Capital One's Chairman and Chief Executive Officer. "These opportunities and an improving credit risk picture are enabling us to invest in record levels of marketing."

Revenue, defined as managed net interest income and non-interest income, increased to $653 million in the second quarter of 1998 versus $637 million in the first quarter of 1998 and increased 40 percent over $466 million for the comparable period in the prior year. For the quarter, Capital One's managed consumer loan balances increased by $967 million to $15.0 billion. The Company also added 914,000 net new accounts, bringing total accounts to 13.6 million.

The managed net interest margin was 9.84 percent in the second quarter of 1998, an expected decrease from 10.40 percent in the first quarter of 1998 and an increase from 8.30 percent in the comparable period of the prior year. The lower margin from the previous quarter primarily reflects decreases in late fees as the Company's delinquency levels declined. Non-interest income increased $33 million compared to the first quarter of 1998 and $84 million for the comparable period in the prior year. This growth reflects increased fees (including annual membership, interchange, and overlimit) on our customized products and strategic cross-sell initiatives.

The managed delinquency rate (30+ days) decreased to 5.14 percent as of June 30, 1998, compared with 5.75 percent as of March 31, 1998, exceeding typical seasonal patterns. The managed net charge-off rate decreased to 5.91 percent for the second quarter of 1998 compared with 6.04 percent in the first quarter of 1998. These decreases demonstrate the combination of high-quality growth and improving consumer credit.

"We continue to see favorable risk trends as both the delinquency and charge-off rates improved modestly in the quarter," said Nigel W. Morris, Capital One's President and Chief Operating Officer. "These improvements exceeded seasonal expectations but we remain cautious in our outlook."

Marketing investment increased in the second quarter of 1998 to a record $86 million versus $75 million in the first quarter of 1998 and $45 million in the comparable period of the prior year. Other non-interest expenses (excluding marketing and performance-based stock options) for the second quarter of 1998 were $222 million versus $182 million for the first quarter of 1998 and $157 million in the comparable period of the prior year. Operating expenses reflect increased investments in staff levels and infrastructure development to position the Company for continued growth.

The allowance for loan losses was maintained at $213 million, and decreased to 4.14 percent of on-balance sheet receivables as of June 30, 1998, from 4.49 percent as of March 31, 1998. Capital ratios were strong as of June 30, 1998 at 15.25 percent of reported assets and 6.68 percent of managed assets.

Separately, earlier this week Capital One signed an agreement to acquire Summit Acceptance Corporation. Based in Dallas, Texas, Summit is a proven performer in the subprime automobile finance industry with approximately 180 employees and serviced loans of approximately $260 million as of June 30, 1998. The acquisition price for Summit will be approximately $55 million which will be paid through the issuance of Capital One stock. The acquisition will be accounted for as a purchase and goodwill of approximately $70 million will be amortized over 15 years. The acquisition is expected to be completed by the end of the third quarter and its impact is expected to be neutral to earnings per share in 1998 and accretive to earnings per share in 1999.

Headquartered in Falls Church, Virginia, Capital One Financial Corporation is a holding company whose principal subsidiaries, Capital One Bank and Capital One, F.S.B., offer financial consumer lending products. Capital One's subsidiaries collectively had 13.6 million customers and $15.0 billion in managed loans outstanding as of June 30, 1998, and are among the largest providers of MasterCard and Visa credit cards in the world. Capital One trades on the New York Stock Exchange under the symbol ``COF'' and is included in the S&P 500 Index.

Note: This release and financial information are available on the Internet on Capital One's home page (address http://www.capitalone.com). Click on "Financial Information" to view/download the release and financial information.

                   CAPITAL ONE FINANCIAL CORPORATION (COF)
                       FINANCIAL & STATISTICAL SUMMARY


    (in millions, except per share data              98               98
     and as noted)                                   Q2               Q1

    Earnings (Managed Basis)
    Net Interest Income                        $   399.5        $    416.7
    Non-Interest Income                            253.2             220.7
    Total Revenue                                  652.7             637.4
    Provision for Loan Losses                      213.1             242.5
    Marketing Expenses                              85.8              75.0
    Operating Expenses                             246.0(2)          213.9(2)
    Income Before Taxes                            107.8             106.0
    Tax Rate                                        38.0%             38.0%
    Net Income                                 $    66.9        $     65.7
    Common Share Statistics
    Basic EPS                                  $    1.02        $     1.00
    Diluted EPS                                $    0.96        $     0.96
    Dividends Per Share                        $    0.08        $     0.08
    Book Value Per Share (period end)          $   16.31        $    15.08
    Stock Price Per Share (period end)         $  124.19        $    78.88
    Total Market Capitalization (period end)   $ 8,139.0        $  5,163.7
    Shares Outstanding (period end)                 65.5              65.5
    Shares Used to Compute Basic EPS                65.5              65.4
    Shares Used to Compute Diluted EPS              69.5              68.4
    Managed Loan Statistics (period avg.)
    Average Loans                              $  14,417        $   14,097
    Average Earning Assets                     $  16,242        $   16,020
    Average Assets                             $  17,296        $   16,834
    Average Equity                             $   1,037        $      950
    Net Interest Margin                             9.84%            10.40%
    Return on Average Assets (ROA)                  1.55%             1.56%
    Return on Average Equity (ROE)                 25.78%            27.66%
    Net Charge-Off Rate                             5.91%             6.04%
    Net Charge-Offs                            $   213.0        $    212.7
    Managed Loan Statistics (period end)
    Reported Loans                             $   5,140        $    4,748
    Securitized Loans                              9,829             9,254
    Total Loans                                $  14,969        $   14,002
    Delinquency Rate (30+ days)                     5.14%(5)          5.75%(5)
    Number of Accounts (000's)                    13,588            12,674
    Total Assets                               $  17,462        $   16,464
    Capital, Including Preferred Interests     $ 1,167.0        $  1,085.2
    Capital to Managed Assets Ratio                 6.68%             6.59%
    Percent Introductory Rate Loans                   20%               22%

    (1)  Net of a $73.3 million reduction to more conservatively report
         uncollectible finance charge and fee income receivables and the
         charge-off of credit card loans at 180 days past-due.
    (2)  Operating expenses include $24.0 million and $32.4 million in
         compensation expense in Q2 98 and Q1 98, respectively, for
         performance-based stock options.
    (3)  The net interest margin, without the modifications in charge-off
         policy and finance charge and fee income recognition, was 10.13%.
    (4)  The net charge-off rate and net charge-offs, without the
         modification in charge-off policy, were 6.02% and $208.2 million,
         respectively.
    (5)  The delinquency rate reflects the modifications in charge-off policy
         and finance charge and fee income recognition.


                   CAPITAL ONE FINANCIAL CORPORATION (COF)
                       FINANCIAL & STATISTICAL SUMMARY


    (in millions, except per share data         97              97
     and as noted)                              Q4              Q3
    Earnings (Managed Basis)
    Net Interest Income                  $     361.6       $    330.7
    Non-Interest Income                        230.4            218.5
    Total Revenue                              592.0(1)         549.2
    Provision for Loan Losses                  255.7            243.6
    Marketing Expenses                          65.0             60.8
    Operating Expenses                         177.4            165.2
    Income Before Taxes                         93.9             79.6
    Tax Rate                                    38.0%            38.0%
    Net Income                            $     58.2       $     49.3
    Common Share Statistics
    Basic EPS                             $     0.89       $     0.75
    Diluted EPS                           $     0.86       $     0.73
    Dividends Per Share                   $     0.08       $     0.08
    Book Value Per Share (period end)     $    13.66       $    12.84
    Stock Price Per Share (period end)    $    54.19       $    45.75
    Total Market Capitalization (period
     end)                                 $  3,542.2       $  3,001.0
    Shares Outstanding (period end)             65.4             65.6
    Shares Used to Compute Basic EPS            65.5             66.2
    Shares Used to Compute Diluted EPS          67.5             67.6
    Managed Loan Statistics (period avg.)
    Average Loans                         $   13,824      $    12,918
    Average Earning Assets                $   15,655      $    14,608
    Average Assets                        $   16,367      $    15,618
    Average Equity                        $      892      $       841
    Net Interest Margin                         9.24%(3)         9.05%
    Return on Average Assets (ROA)              1.42%            1.26%
    Return on Average Equity (ROE)             26.12%           23.47%
    Net Charge-Off Rate                         6.37%(4)         6.66%
    Net Charge-Offs                       $    255.6(4)   $     215.1
    Managed Loan Statistics (period end)
    Reported Loans                        $    4,862      $     4,330
    Securitized Loans                          9,369            9,143
    Total Loans                           $   14,231      $    13,473
    Delinquency Rate (30+ days)                 6.20%(5)         6.36%
    Number of Accounts (000's)                11,747           10,664
    Total Assets                          $   16,433      $    15,440
    Capital, Including Preferred
     Interests                            $    990.9      $     939.7
    Capital to Managed Assets Ratio             6.03%            6.09%
    Percent Introductory Rate Loans               27%              26

    (1) Net of a $73.3 million reduction to more conservatively report
        uncollectible finance charge and fee income receivables and the
        charge-off of credit card loans at 180 days past-due.
    (2) Operating expenses include $24.0 million and $32.4 million in
        compensation expense in Q2 98 and Q1 98, respectively, for
        performance-based stock options.
    (3) The net interest margin, without the modifications in charge-off
        policy and finance charge and fee income recognition, was 10.13%.
    (4) The net charge-off rate and net charge-offs, without the
        modification in charge-off policy, were 6.02% and $208.2 million,
        respectively.
    (5) The delinquency rate reflects the modifications in charge-off policy
        and finance charge and fee income recognition.


                   CAPITAL ONE FINANCIAL CORPORATION (COF)
                       FINANCIAL & STATISTICAL SUMMARY

                                                                 97
    (in millions, except per share data and as noted)            Q2
    Earnings (Managed Basis)
    Net Interest Income                                   $     296.3
    Non-Interest Income                                         169.3
    Total Revenue                                               465.6
    Provision for Loan Losses                                   200.1
    Marketing Expenses                                           45.0
    Operating Expenses                                          157.1
    Income Before Taxes                                          63.5
    Tax Rate                                                     38.0%
    Net Income                                            $      39.4
    Common Share Statistics
    Basic EPS                                             $      0.59
    Diluted EPS                                           $      0.58
    Dividends Per Share                                   $      0.08
    Book Value Per Share (period end)                     $     12.35
    Stock Price Per Share (period end)                    $     37.75
    Total Market Capitalization (period end)              $   2,509.8
    Shares Outstanding (period end)                              66.5
    Shares Used to Compute Basic EPS                             66.4
    Shares Used to Compute Diluted EPS                           67.6
    Managed Loan Statistics (period avg.)
    Average Loans                                         $    12,715
    Average Earning Assets                                $    14,278
    Average Assets                                        $    15,272
    Average Equity                                        $       798
    Net Interest Margin                                          8.30%
    Return on Average Assets (ROA)                               1.03%
    Return on Average Equity (ROE)                              19.72%
    Net Charge-Off Rate                                          6.38%
    Net Charge-Offs                                       $     202.8
    Managed Loan Statistics (period end)
    Reported Loans                                        $     3,624
    Securitized Loans                                           9,113
    Total Loans                                           $    12,737
    Delinquency Rate (30+ days)                                  6.33%
    Number of Accounts (000's)                                  9,796
    Total Assets                                          $    15,270
    Capital, Including Preferred Interests                $     918.5
    Capital to Managed Assets Ratio                              6.01%
    Percent Introductory Rate Loans                                25%

    (1)  Net of a $73.3 million reduction to more conservatively report
         uncollectible finance charge and fee income receivables and the
         charge-off of credit card loans at 180 days past-due.
    (2)  Operating expenses include $24.0 million and $32.4 million in
         compensation expense in Q2 98 and Q1 98, respectively, for
         performance-based stock options.
    (3)  The net interest margin, without the modifications in charge-off
         policy and finance charge and fee income recognition, was 10.13%.
    (4)  The net charge-off rate and net charge-offs, without the
         modification in charge-off policy, were 6.02% and $208.2 million,
         respectively.
    (5)  The delinquency rate reflects the modifications in charge-off policy
         and finance charge and fee income recognition.


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


                                                        June 30
                                                         1998

    Assets:
    Cash and due from banks                          $     8,463
    Federal funds sold and resale agreements
    Interest-bearing deposits at other banks              30,926
      Cash and cash equivalents                           39,389
    Securities available for sale                      1,431,091
    Consumer loans                                     5,140,340
      Less:  Allowance for loan losses                  (213,000)
    Net loans                                          4,927,340
    Premises and equipment, net                          188,727
    Interest receivable                                   45,866
    Accounts receivable from securitizations             836,274
    Other                                                182,751
       Total assets                                 $  7,651,438


    Liabilities:
    Interest-bearing deposits                       $  1,287,402
    Other borrowings                                     959,480
    Senior notes                                       3,709,404
    Deposit notes                                         99,996
    Interest payable                                      83,167
    Other                                                345,037
       Total liabilities                               6,484,486

    Guaranteed Preferred Beneficial Interests
      In Capital One Bank's Floating Rate Junior
      Subordinated Capital Income Securities:             97,791

    Stockholders' Equity:
    Common stock                                             666
    Paid-in capital, net                                 561,518
    Retained earnings                                    547,485
    Cumulative other comprehensive income                  3,421
       Less:  Treasury stock, at cost                    (43,929)
       Total stockholders' equity                      1,069,161
       Total liabilities and stockholders' equity   $  7,651,438


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


                                                     March 31
                                                      1998

    Assets:
    Cash and due from banks                        $     2,983
    Federal funds sold and resale agreements           105,000
    Interest-bearing deposits at other banks            34,077
      Cash and cash equivalents                        142,060
    Securities available for sale                    1,513,398
    Consumer loans                                   4,748,186
      Less:  Allowance for loan losses                (213,000)
    Net loans                                        4,535,186
    Premises and equipment, net                        163,757
    Interest receivable                                 44,213
    Accounts receivable from securitizations           696,599
    Other                                              128,689
       Total assets                               $  7,223,902


    Liabilities:
    Interest-bearing deposits                     $  1,160,850
    Other borrowings                                   723,614
    Senior notes                                     3,464,176
    Deposit notes                                      299,996
    Interest payable                                    67,544
    Other                                              422,480
       Total liabilities                             6,138,660

    Guaranteed Preferred Beneficial Interests
      In Capital One Bank's Floating Rate Junior
      Subordinated Capital Income Securities:           97,727

    Stockholders' Equity:
    Common stock                                           666
    Paid-in capital, net                               543,179
    Retained earnings                                  485,750
    Cumulative other comprehensive income                2,325
       Less:  Treasury stock, at cost                  (44,405)
       Total stockholders' equity                      987,515
       Total liabilities and stockholders'
        equity                                    $  7,223,902
                      CAPITAL ONE FINANCIAL CORPORATION
                         Consolidated Balance Sheets
                          (in thousands)(unaudited)


                                                      June 30
                                                       1997

    Assets:
    Cash and due from banks                      $   136,112
    Federal funds sold and resale agreements         295,507
    Interest-bearing deposits at other banks          21,441
      Cash and cash equivalents                      453,060
    Securities available for sale                  1,142,328
    Consumer loans                                 3,623,952
      Less:  Allowance for loan losses              (118,500)
    Net loans                                      3,505,452
    Premises and equipment, net                      181,078
    Interest receivable                               48,135
    Accounts receivable from securitizations         729,238
    Other                                            100,144
        Total assets                            $  6,159,435


    Liabilities:
    Interest-bearing deposits                   $    869,801
    Other borrowings                                 293,734
    Senior notes                                   3,468,801
    Deposit notes                                    299,996
    Interest payable                                  72,261
    Other                                            236,343
        Total liabilities                          5,240,936

    Guaranteed Preferred Beneficial Interests
      In Capital One Bank's Floating Rate Junior
      Subordinated Capital Income Securities:        97,534

    Stockholders' Equity:
    Common stock                                        665
    Paid-in capital, net                            491,953
    Retained earnings                               327,896
    Cumulative other comprehensive income               451
       Less: Treasury stock, at cost
       Total stockholders' equity                   820,965
       Total liabilities and stockholders'
        equity                                 $  6,159,435
                      CAPITAL ONE FINANCIAL CORPORATION
                      Consolidated Statements of Income
               (in thousands, except per share data)(unaudited)


                                                 Three Months Ended
                                                June 30      March 31
                                                  1998         1998

    Interest Income:
    Consumer loans, including fees            $  245,129     $  229,638
    Federal funds sold and resale agreements       2,140          5,078
    Other                                         24,169         23,326
      Total interest income                      271,438        258,042

    Interest Expense:
    Deposits                                      13,635         14,138
    Other borrowings                              20,375         16,053
    Senior and deposit notes                      67,704         63,029
      Total interest expense                     101,714         93,220
    Net interest income                          169,724        164,822
    Provision for loan losses                     59,013         85,866
    Net interest income after provision
     for loan losses                             110,711         78,956

    Non-Interest Income:
    Servicing and securitizations                155,412        168,655
    Service charges                              128,191        113,324
    Interchange                                   20,371         14,799
    Other                                         24,979         19,121
      Total non-interest income                  328,953        315,899

    Non-Interest Expense:
    Salaries and associate benefits              113,428        107,953
    Marketing                                     85,811         75,000
    Communications and data processing            34,840         29,363
    Supplies and equipment                        32,368         22,615
    Occupancy                                     11,090         10,644
    Other                                         54,299         43,308
      Total non-interest expense                 331,836        288,883
    Income before income taxes                   107,828        105,972
    Income taxes                                  40,975         40,269
    Net income                                $   66,853    $    65,703

    Basic earnings per share                  $     1.02    $      1.00
    Diluted earnings per share                $     0.96    $      0.96
    Dividends paid per share                  $     0.08    $      0.08



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


                                                   Three Months Ended
                                                          June 30
                                                            1997


    Interest Income:
    Consumer loans, including fees                     $   143,485
    Federal funds sold and resale agreements                 2,613
    Other                                                   20,772
      Total interest income                                166,870

    Interest Expense:
    Deposits                                                 8,635
    Other borrowings                                        10,453
    Senior and deposit notes                                64,523
      Total interest expense                                83,611
    Net interest income                                     83,259
    Provision for loan losses                               46,776
    Net interest income after provision for loan losses     36,483

    Non-Interest Income:
    Servicing and securitizations                          148,562
    Service charges                                         57,278
    Interchange                                             11,405
    Other                                                   11,797
      Total non-interest income                            229,042

    Non-Interest Expense:
    Salaries and associate benefits                         69,287
    Marketing                                               44,995
    Communications and data processing                      24,320
    Supplies and equipment                                  18,406
    Occupancy                                                7,388
    Other                                                   37,659
      Total non-interest expense                           202,055
    Income before income taxes                              63,470
    Income taxes                                            24,118
    Net income                                         $    39,352

    Basic earnings per share                           $      0.59
    Diluted earnings per share                         $      0.58
    Dividends paid per share                           $      0.08


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


                                                    Six Months Ended
                                                   June 30       June 30
                                                    1998           1997

    Interest Income:
    Consumer loans, including fees             $  474,767      $  289,997
    Federal funds sold and resale agreements        7,218           8,277
    Other                                          47,495          37,190
      Total interest income                       529,480         335,464

    Interest Expense:
    Deposits                                       27,773          19,072
    Other borrowings                               36,428          16,977
    Senior and deposit notes                      130,733         127,959
      Total interest expense                      194,934         164,008
    Net interest income                           334,546         171,456
    Provision for loan losses                     144,879          95,963
    Net interest income after provision
     for loan losses                              189,667          75,493

    Non-Interest Income:
    Servicing and securitizations                 324,067         318,595
    Service charges                               241,515         110,926
    Interchange                                    35,170          20,720
    Other                                          44,100          21,858
      Total non-interest income                   644,852         472,099

    Non-Interest Expense:
    Salaries and associate benefits               221,381         139,923
    Marketing                                     160,811          99,046
    Communications and data processing             64,203          46,110
    Supplies and equipment                         54,983          36,479
    Occupancy                                      21,734          15,189
    Other                                          97,607          78,855
      Total non-interest expense                  620,719         415,602
    Income before income taxes                    213,800         131,990
    Income taxes                                   81,244          50,156
    Net income                                 $  132,556       $  81,834

    Basic earnings per share                   $     2.02       $    1.23
    Diluted earnings per share                 $     1.92       $    1.21
    Dividends paid per share                   $     0.16       $    0.16



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

    Managed(1)                                 Quarter Ended 6/30/98
                                        Average        Income/      Yield/
                                        Balance        Expense       Rate
    Earning assets:
      Consumer loans                 $  14,416,722   $  607,247     16.85%
      Federal funds sold and
        resale agreements                  151,275        2,140      5.66
      Other securities                   1,674,381       24,169      5.77
    Total earning assets             $  16,242,378   $  633,556     15.60%

    Interest-bearing liabilities:
      Deposits                       $   1,193,508   $   13,635      4.57%
      Other borrowings                   1,318,889       20,375      6.18
      Senior and deposit notes           3,905,684       67,704      6.93
      Securitization liability           9,190,007      132,337      5.76
    Total interest-bearing
     liabilities                     $  15,608,088   $  234,051      6.00%

    Net interest spread                                              9.60%

    Interest income to average
     earning assets                                                 15.60%
    Interest expense to average
     earning assets                                                  5.76
    Net interest margin                                              9.84%


    (1) The information in this table reflects the adjustment to add back the
        effect of securitized loans.



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

    Managed(1)                                Quarter Ended 3/31/98
                                        Average       Income/     Yield/
                                        Balance       Expense      Rate
    Earning assets:
      Consumer loans                $  14,097,475   $  615,053     17.45%
      Federal funds sold and
        resale agreements                 362,680        5,078      5.60
      Other securities                  1,559,732       23,326      5.98
    Total earning assets            $  16,019,887   $  643,457     16.06%

    Interest-bearing liabilities:
      Deposits                      $   1,266,064   $   14,138      4.47%
      Other borrowings                  1,077,082       16,053      5.96
      Senior and deposit notes          3,683,113       63,029      6.85
      Securitization liability          9,297,590      133,526      5.74
    Total interest-bearing
     liabilities                    $  15,323,849   $  226,746      5.92%

    Net interest spread                                            10.14%

    Interest income to average earning assets                      16.06%
    Interest expense to average earning assets                      5.66
    Net interest margin                                            10.40%


    (1) The information in this table reflects the adjustment to add back the
        effect of securitized loans.


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

    Managed(1)                                Quarter Ended 6/30/97
                                        Average        Income/      Yield/
                                        Balance        Expense       Rate
    Earning assets:
      Consumer loans               $  12,714,870    $  482,088      15.17%
      Federal funds sold and
        resale agreements                187,650         2,613       5.57
      Other securities                 1,375,364        20,772       6.04
    Total earning assets           $  14,277,884    $  505,473      14.16%

    Interest-bearing liabilities:
      Deposits                     $     817,936    $    8,635       4.22%
      Other borrowings                   694,814        10,453       6.02
      Senior and deposit notes         3,768,797        64,523       6.85
      Securitization liability         8,713,517       125,531       5.76
    Total interest-bearing
     liabilities                   $  13,995,064   $   209,142       5.98%

    Net interest spread                                              8.18%

    Interest income to average earning assets                       14.16%
    Interest expense to average earning assets                       5.86
    Net interest margin                                              8.30%


    (1) The information in this table reflects the adjustment to add back the
        effect of securitized loans.