Capital One Financial Corporation (Parent Company Only)

12 Months Ended

Dec. 31, 2019

Condensed Financial Information Disclosure [Abstract]

Capital One Financial Corporation (Parent Company Only)

NOTE 19—CAPITAL ONE FINANCIAL CORPORATION (PARENT COMPANY ONLY)

Financial Information

The following parent company only financial statements are prepared in accordance with Regulation S-X of the U.S. Securities and Exchange Commission (“SEC”).

Table 19.1: Parent Company Statements of Income



	Year Ended December 31,
(Dollars in millions)	2019			2018			2017
Interest income	$	442		$	313		$	178
Interest expense	798			720			381
Dividends from subsidiaries	3,276			2,750			300
Non-interest income (loss)	(21		)	19			19
Non-interest expense	60			29			34
Income before income taxes and equity in undistributed earnings of subsidiaries	2,839			2,333			82
Income tax benefit	(138		)	(128		)	(103		)
Equity in undistributed earnings of subsidiaries	2,569			3,554			1,797
Net income	5,546			6,015			1,982
Other comprehensive income (loss), net of tax	1,531			(136		)	23
Comprehensive income	$	7,077		$	5,879		$	2,005

Table 19.2: Parent Company Balance Sheets



(Dollars in millions)	December 31, 2019		December 31, 2018
Assets:
Cash and cash equivalents	$	13,050	$	10,286
Investments in subsidiaries	61,626		58,154
Loans to subsidiaries	3,905		2,603
Securities available for sale	738		795
Other assets	1,017		1,250
Total assets	$	80,336	$	73,088

Liabilities:
Senior and subordinated notes	$	22,080	$	19,518
Borrowings from subsidiaries	0		1,671
Accrued expenses and other liabilities	245		231
Total liabilities	22,325		21,420
Total stockholders’ equity	58,011		51,668
Total liabilities and stockholders’ equity	$	80,336	$	73,088

Table 19.3: Parent Company Statements of Cash Flows



	Year Ended December 31,
(Dollars in millions)	2019			2018			2017
Operating activities:
Net income	$	5,546		$	6,015		$	1,982
Adjustments to reconcile net income to net cash from operating activities:
Equity in undistributed earnings of subsidiaries	(2,569		)	(3,554		)	(1,797		)
Other operating activities	216			(35		)	327
Net cash from operating activities	3,193			2,426			512
Investing activities:
Changes in investments in subsidiaries	704			(577		)	(4,956		)
Proceeds from paydowns and maturities of securities available for sale	111			140			130
Changes in loans to subsidiaries	(1,302		)	(2,055		)	44
Net cash from investing activities	(487		)	(2,492		)	(4,782		)
Financing activities:
Borrowings:
Changes in borrowings from subsidiaries	0			38			23
Issuance of senior and subordinated notes	2,646			5,227			6,948
Maturities and paydowns of senior and subordinated notes	(750		)	0			(804		)
Common stock:
Net proceeds from issuances	199			175			164
Dividends paid	(753		)	(773		)	(780		)
Preferred stock:
Net proceeds from issuances	1,462			0			0
Dividends paid	(282		)	(265		)	(265		)
Redemptions	(1,000		)	0			0
Purchases of treasury stock	(1,481		)	(2,284		)	(240		)
Proceeds from share-based payment activities	17			38			124
Net cash from financing activities	58			2,156			5,170
Changes in cash and cash equivalents	2,764			2,090			900
Cash and cash equivalents, beginning of the period	10,286			8,196			7,296
Cash and cash equivalents, end of the period	$	13,050		$	10,286		$	8,196
Supplemental information:
Non-cash impact from the dissolution of wholly-owned subsidiary
Decrease in investment in subsidiaries	$	1,508		$	0		$	0
Decrease in borrowings from subsidiaries	1,671			0			0