Capital One 2011 Annual Report Download - page 293

CAPITAL ONE FINANCIAL CORPORATION (COF)
Table 2: Explanatory Notes (Table 1)
Notes
Statistical/Metric Calculations
2
(1) Effective February 27, 2009, the Company acquired Chevy Chase Bank, FSP for $476 million, which included a cash payment
of $445 million and the issuance of 2.6 million common shares valued at $31 million. The acquisition of Chevy Chase Bank
included $10 billion in loans and $13.6 billion in deposits.
(2) Includes the impact from the change in fair value of retained interests, including interest-only strips, totaling $(5) million and
$(146) million for the years 2010 and 2009, respectively.
(3) In Q2 2009, the Company elected to convert and sell 404,508 shares of MasterCard class B common stock, which resulted in the
recognition of a gain of $66 million that was recorded in non-interest income.
(4) Billed finance charges and fees not recognized in revenue totaled $949 million and $2.1 billion for the years 2010 and 2009,
respectively.
(5) Includes the impact of the issuance of 56,000,000 common shares at $27.75 per share on May 14, 2009.
(6) Prior period amounts have been reclassified to conform to the current period presentation and adjusted to reflect purchase
accounting refinements related to the acquisition of Chevy Chase Bank, fsb (“CCB”).
(7) The denominator used in calculating the allowance as a % of loans held for investment, the net charge-off rate and the 30+ day
performing delinquency rate include loans acquired as part of the CCB acquisition. These metrics, calculated excluding CCB
loans, are presented below.
(Dollars in millions) (unaudited) 2010 2009
CCB period end acquired loan portfolio
$5,532 $7,251
CCB average acquired loan portfolio
$6,302 $7,996
Allowance as a % of loans held for investment, excludin
g
CCB loans 4.67% 4.95%
Net charge-off rate (Reported), excluding CCB loans
5.44% 4.98%
Net charge-off rate (Managed), excluding CCB 5.44% 6.21%
30+ day performing delinquency rate (Reported), excluding CCB
3.76% 4.49%
30+ day performing delinquency rate (Managed), excluding CCB 3.76% 4.99%
(8) The managed loan portfolio does not include auto or home loans that have been sold in whole loan sale transactions where the
Company has retained servicing rights.
Tangible assets represent total assets from continuing operations less identifiable intangible assets and goodwill. See “Table 4:
Reconciliation of Non-GAAP Capital Measures and Calculation of Regulatory Capital Measures.”
Tangible common equity (“TC
E
”) represents common stockholders’ equity (total stockholders’ equity less preferred stock) less
identifiable intangible assets and goodwill. See “Table 4: Reconciliation of Non-GAAP Capital Measures and Calculation of
Regulatory Capital Measures.”
Calculated based on non-interest expense less restructuring expense divided by total revenue.
(A)
(B)
(C)