Third Quarter 2023 Financial Results
Commercial Office Real Estate
.
•
Funded Balance ($M)
LHFI
ACL Coverage on LHFI
50.00%
$4,800
$3,984
$3,955
$3,643
$3,600
$2,400
$1,200
6.15%
3.67%
40.00%
$2,577
30.00%
$2,425
20.00%
13.87%
13.36%
11.05%
10.00%
-%
Q3'22
Q4'22
Q1'23
Q2'23
Q3'23
Annualized Net charge-off rate for
LHFI)
%
0.37 %
1.84 %
46.38 %
3.73 %
Total criticized rate for LHFI
27.8 %
35.40 %
43.30 %
32.80 %
39.70 %
Nonperforming loan rate for LHFI
Office Real Estate LHFI as a % of
Total LHFI
2.60 %
3.00 %
5.50 %
11.30 %
9.70 %
1.3 %
1.3 %
1.2 %
0.8 %
0.8 %
Third Quarter 2023 Highlights
ACL Coverage %
Capital One®
Office Real Estate represented 2.7% of our Commercial Banking LHFI portfolio and 0.8% of total LHFI
The $888M Office Real Estate loan portfolio that was moved to LHFS in Q2'23 was sold in Q3'23, with seller financing provided.
This financing had a balance of $363M at 9/30/23 and is classified as REIT/REIF exposure and is therefore excluded from the
balances and metrics above
Note: Excludes loans in our Healthcare Real Estate business secured by Medical Office properties and loans to office real estate investment trusts (REIT) and real estate investment funds (REIF).
Net charge-off rate is calculated based on annualized net charge-offs for the period divided by average loans held for investment for the period.
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