2016 NTLA Fall Symposium

Transcription

1 2016 NTLA Fall Symposium Presented by: Kevin Gibbons, Troy Ritter, Beverly Abrahams October 13-14, 2016

2 We ve grown from a credit card company to a Fortune full-service bank in less than 30 years Initial Public Offering 2005 Commercial Bank is founded - Acquired Hibernia Bank - Louisiana/Texas 2009 Acquired Chevy Chase Bank - Maryland/ Virginia/ Washington, D.C Acquired ING Direct USA 2015 Acquired GE Capital, Healthcare Financial Services 1988 Capital One is founded - Monoline credit card company (Signet) - Information-based strategy tailors products to customers 2003 Announced intention to enter banking 2006 Acquired North Fork Bank - New York/New Jersey 2012 Acquired HSBC credit card portfolio 2013 Acquired Beech Street Capital TODAY* - Employees: 46,100 - Assets: $339.1B - Loans: $234.6B - Deposits: $221.1B - Net Revenue: $23.4B 2 - Net Income: $4.1B 2 - Market Cap: $33.9B 3 1 Source: Fortune Magazine. Data as of 6/30/2016. *Capital One reported data as of 6/30/2016 unless otherwise noted. 2 Total Net Revenue and Net Income for Source: FactSet. Data as of 7/29/

3 1 A top 10 U.S. bank, our solid capital and ample liquidity make our balance sheet a source of strength. Strong Balance Sheet Strong Capital Position Steady Performance and Growth Credit Ratings 3 Ranked #6 in total loans: $235.8B 1 Ranked #8 in total deposits: $220.4B 1 Ranked #7 in total assets: $339.1B Common equity Tier 1 capital ratio, per Basel III Standard Approach of 10.9% as of June 30, 2016 Q net income of $942M Net interest margin of 6.73% Return on average tangible common equity of 11.61% 2 Long-Term Rating Moody s: Baa1 S&P: BBB+ Short-Term Deposit Rating Moody s: P-1 S&P: A-2 Fitch: F1 $40.0B of securities available for sale 11.6% net loan and 5.9% deposit growth year-overyear Capital One reported data as of 6/30/2016, unless otherwise noted. Information included on this slide relates to Capital One Financial Corporation, a financial holding company and our parent corporation, unless otherwise noted. 1. Note: Excludes banks with high non-loan asset concentrations: Goldman Sachs, Morgan Stanley, BONY, State Street, Charles Schwab. Data as of 6/30/2016 and pro-forma for announced/completed deals through 8/26/2016. Based upon total gross loans and total aggregated domestic deposits for bank holding company. Sources: SNL, FDIC, company reports 2 Return on average tangible common equity is a non-gaap measure calculated based on annualized income from continuing operations, net of tax, for the period divided by average tangible assets for the period, and may not be comparable to similarly titled measures reported by other companies. See Reconciliation of Non-GAAP Measures of in Capital One's Q earnings financial supplement, released on July 26, 2016, for additional information. 3 Credit rating for Capital One, N.A.; Moody s Issuer Rating, ST Deposit Rating; S&P s LT Issuer Rating, ST Issuer Rating; Domestic ratings used when applicable; Source: Bloomberg. Data as of 8/1/2016. Ratings always subject to change. 3

4 Delivering comprehensive Tax Lien Lending expertise, consistent guidance and seamless execution. Credit Facilities: Maximize returns with tailored lending platforms that work for you: Commitments Strong Balance 1 Sheet Facility Type Terms Pricing Borrowing Base Structure Advance Rate 2 Maximum Leverage 3 Minimum Debt Service Coverage 4 $10MM up to $50MM for new customers $10MM up to $75MM for existing customers Revolving and non-revolving facilities Up to 2 years, potentially renewable for more Competitive rates and fees based upon risk A borrowing base certificate is required with each advance No limitation on the frequency of advance requests during funding period Up to 80% of the Acquisition Price 5 of eligible tax liens Up to 4.0x At least 1.5x Treasury Management: Increase efficiencies by customizing one or more of our selection of Treasury Management solutions to enhance reporting, simplify payments, improve cash management and reduce your exposure to fraud including the following cash management tools, which are required with each credit facility: Lockbox Services outsource deposit activity to eliminate time-consuming tasks associated with processing and depositing checks Loan Sweep Services efficiently apply all cash collected to the line of credit to reduce interest expense Derivatives: Flexible interest rate hedging strategies including multi-year products 1 Represents Capital One s hold position only. We have successfully syndicated larger transactions in the tax lien space. 2 Final advance rate determined by due diligence based on the performance and marketability of the collateral. Capital One will lend up to 90% on Florida tax liens. 3 Generally defined as: (Total Liabilities Subordinated Debt)/(Tangible Net Worth + Subordinated Debt) 4 Generally defined as: (Net Income + Interest Expense + Income Taxes)/Interest Expense 5 Acquisition Price includes all refundable costs paid to a taxing authority related to a tax lien, including premium bids and subsequent taxes. 4

5 Our dedicated team offers commercial expertise and the responsiveness you expect. At Capital One, we do more than respond to your needs. We anticipate and address any challenges that may lie ahead. Our experts are dedicated to driving growth and success for your business in fact, it s their passion. Relationship Team Kevin Gibbons Executive Vice President Office: (312) Mobile: (312) kevin.gibbons@capitalone.com Troy Ritter Senior Vice President Office: (504) Mobile: (225) troy.ritter@capitalone.com What we deliver Long-term focus for your business Responsiveness you expect Expertise you need Beverly Abrahams Senior Vice President Office: (312) Mobile: (847) beverly.abrahams@capitalone.com 5