Business Description

4 Overview 4 Operations and Business Segments 7 Competition 8 Supervision and Regulation 8 Human Capital Resources 19 Technology and Intellectual Property 19 Forward-Looking Statements 20 Item 1A. Risk Factors 22 Item 1B. Unresolved Staff Comments 52 Item 1C. Cybersecurity 52 Item 2. Properties 54 Item 3. Legal Proceedings 55 Item 4. Mine Safety Disclosures 55 PART II 56 Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 56 Item 6. [Reserved] 59 Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) 59 Selected Financial Data 60 Executive Summary 63 Consolidated Results of Operations 64 Consolidated Balance Sheets Analysis 70 Off-Balance Sheet Arrangements 74 Business Segment Financial Performance 75 Critical Accounting Policies and Estimates 86 Accounting Changes and Developments 91 Capital Management 92 Risk Management 98 Credit Risk Profile 104 Liquidity Risk Profile 117 Market Risk Profile 122 Supplemental Tables 127 Glossary and Acronyms 129 Item 7A. Quantitative and Qualitative Disclosures about Market Risk 138 Item 8. Financial Statements and Supplementary Data 139 Consolidated Statements of Income 145 Consolidated Statements of Comprehensive Income 146 Consolidated Balance Sheets 147 1 Capital One Financial Corporation (COF) Consolidated Statements of Changes in Stockholders’ Equity 148 Consolidated Statements of Cash Flows 149 Notes to Consolidated Financial Statements 151 Note 1—Summary of Significant Accounting Policies 151 Note 2—Business Combinations and Discontinued Operations 166 Note 3—Investment Securities 172 Note 4—Loans 175 Note 5—Allowance for Credit Losses and Reserve for Unfunded Lending Commitments 191 Note 6—Variable Interest Entities and Securitizations 195 Note 7—Goodwill and Other Intangible Assets 199 Note 8—Premises, Equipment and Leases 202 Note 9—Deposits and Borrowings 204 Note 10—Derivative Instruments and Hedging Activities 206 Note 11—Stockholders’ Equity 215 Note 12—Regulatory and Capital Adequacy 218 Note 13—Earnings Per Common Share 220 Note 14—Stock-Based Compensation Plans 221 Note 15—Employee Benefit Plans 223 Note 16—Income Taxes 224 Note 17—Fair Value Measurement 228 Note 18—Business Segments and Revenue from Contracts with Customers 237 Note 19—Commitments, Contingencies, Guarantees and Others 242 Note 20—Capital One Financial Corporation (Parent Company Only) 247 Note 21—Related Party Transactions 249 Note 22—Subsequent Events 250 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 251 Item 9A. Controls and Procedures 251 Item 9B. Other Information 252 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 252 PART III 253 Item 10. Directors, Executive Officers and Corporate Governance 253 Item 11. Executive Compensation 253 Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 253 Item 13. Certain Relationships and Related Transactions, and Director Independence 253 Item 14. Principal Accountant Fees and Services 253 PART IV 254 Item 15. Exhibits and Financial Statement Schedules 254 Item 16.…