OMB No.

for FDIC 3064-0015 Expires May 31, 2015

OMB No. for FRB 7100-0171 Expires September 30, 2013
OMB no. OCC 1557-0014

INTERAGENCY BANK MERGER ACT APPLICATION

Public reporting burden for this collection of information is estimated to average 30 and 18 hours for nonaffiliate
and affiliate transactions, respectively, including the time to gather and maintain data in the required form, to review
instructions, and to complete the information collection. Send comments regarding this burden estimate or any other
aspect of this collection of information, including suggestions for reducing this burden to: Paperwork Reduction
Act, Legal Division, Federal Deposit Insurance Corporation, 550 17th Street, NW, Washington, DC 20429;
Secretary, Board of Governors of the Federal Reserve System, 20th and C Streets, NW, Washington, DC 20551; or
Licensing Activities Division, Comptroller of the Currency, 400 7th Street, S.W., Washington, DC 20219; and to
the Office of Management and Budget, Paperwork Reduction Project, Washington, DC 20503.

An organization or a person is not required to respond to a collection of information unless it displays a currently
valid OMB control number.

General Information and Instructions

Preparation and Use
This application is used to effect a merger transaction under section 18(c) of the Federal Deposit
Insurance Act (FDIA), as amended (12 U.S.C. 1828(c)), and for national banks using other
sources of merger authority, such as 12 U.S.C. 215, 215a. “Merger transaction” includes a
merger, consolidation, assumption of deposit liabilities, and certain asset transfers between or
among two or more institutions. An application is required for merger transactions between or
among affiliated institutions (affiliate transactions) as well as for merger transactions between or
among nonaffiliated institutions.

An affiliate transaction refers to a merger transaction between institutions that are commonly
controlled. It includes a business combination between a depository institution and an affiliated
interim institution. Applicants proposing affiliate transactions are not required to complete
questions 12 through 14 of this form.

All questions must be answered with complete and accurate information that is subject to
verification. If the answer is "none," "not applicable," “not available,” or "unknown," so state.
Answers of “not available” or "unknown" should be explained.

The questions in the application are not intended to limit the Applicant's presentation, nor are the
questions intended to duplicate information supplied on another form or in an exhibit. A cross-
reference to the information is acceptable. Any cross-reference must be made to a specific
location in the documents, so the information can be found easily. Supporting information for all
relevant factors, setting forth the basis for Applicant's conclusions, should accompany the
application. The regulatory agency may request additional information.

The application must be submitted to the appropriate regulatory agency of the depository
institution that would survive the proposed transaction (Resultant Institution). All inquiries on
preparation of the application should be directed to that agency which, in some circumstances,
may modify the information requested.

For additional information regarding the processing procedures and guidelines and any
supplemental information that may be required, please refer to the appropriate regulatory
agency's procedural guidelines (that is, Comptroller’s Licensing Manual, the FDIC’s Rules and
Regulations [12 C.F.R. 303] and Statement of Policy on Bank Merger Transactions, contact the
agency directly for specific instruction or visit its Web site at www.fdic.gov, www.occ.treas.gov,
and www.federalreserve.gov.

Interim Charters and Federal Deposit Insurance

An interim state or federal depository institution charter may be used to facilitate a merger or
consolidation. An interim institution is one that does not operate independently but exists,
usually for a very short period of time, solely as a vehicle to accomplish a combination (for
example, to facilitate the acquisition of 100 percent of the voting shares of an existing depository
institution). The processing procedures and guidelines for chartering an interim institution may
be found in the guidelines of the appropriate regulatory agency.

Applicants should contact the FDIC to discuss relevant deposit insurance requirements. An
application for deposit insurance is not required in connection with a merger (other than a
purchase and assumption) between a federally chartered interim institution and an existing
FDIC-insured depository institution, including those instances in which the resulting institution
is to operate under the charter of the federal interim institution. However, an application for
deposit insurance is required if a state-chartered interim bank or savings association is to be
insured. Mergers between an FDIC-insured institution and a noninsured institution are subject to
FDIC approval under section 18(c)(1) of the FDIA (12 U.S.C. 1828(c)(1)).

In making its determination to grant deposit insurance under section 5(a) of the FDIA (12 U.S.C.
1815(a)), the FDIC will consider the factors enumerated in section 6 of the FDIA (12 U.S.C.
1816). If applying for deposit insurance under section 5(a), check the appropriate boxes on the
top of Page 1 of this form and include with this application any additional relevant information.

Establishment of Branches and Branch Closings

This Interagency Bank Merger Act Application will be deemed to constitute an application
pursuant to section 9 of the Federal Reserve Act (12 U.S.C. 321) in the case of state member
banks, section 18(d) of the FDIA (12 U.S.C. 1828(d)) for state nonmember banks, and 12 U.S.C.
36 for national banks to operate the Target Institution’s main office and branches as branches of
the Applicant.

If a branch is closed as a result of a merger, consolidation, or other combination, refer to the

Interagency Policy Statement on Branch Closings and applicable law for branch closure notice
requirements (12 U.S.C. 1831r-1).

Notice of Publication
An Applicant must publish notice of the proposed acquisition in a newspaper of general
circulation in the community or communities in which the main office of each of the parties to
the transaction is located (12 U.S.C. 1828(c)(3)). A copy of the affidavit(s) of publication should
be submitted to the appropriate regulatory agency. Contact the appropriate regulatory agency for
the specific requirements of the notice of publication.

Compliance
An Applicant is expected to comply with all representations and commitments made in the
application.
Transactions subject to the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (15 U.S.C.
18a), which applies to certain very large transactions, require a pre-merger filing with the Federal
Trade Commission and the Department of Justice. Refer to the Federal Trade Commission’s
Web site for specific details (http://www.ftc.gov/bc/hsr/hsr.htm).

Confidentiality
Any Applicant desiring confidential treatment of specific portions of the application must submit
a request in writing with the application. The request must discuss the justification for the
requested treatment. The Applicant's reasons for requesting confidentiality should specifically
demonstrate the harm (for example, loss of competitive position, invasion of privacy) that would
result from public release of information (5 U.S.C. 552). Information for which confidential
treatment is requested should be: (1) specifically identified in the public portion of the
application (by reference to the confidential section); (2) separately bound; and (3) labeled
"Confidential." The Applicant should follow the same procedure when requesting confidential
treatment for the subsequent filing of supplemental information to the application.

The Applicant should contact the appropriate regulatory agency for specific instructions
regarding requests for confidential treatment. The appropriate regulatory agency will determine
whether the information will be treated as confidential and will advise the Applicant of any
decision to make available to the public information labeled as "Confidential."
 INTERAGENCY BANK MERGER ACT APPLICATION
Check all that apply:

Type of Filing Form of Transaction Filed Pursuant To

X Affiliate/Corporate Reorganization X Merger X 12 U.S.C. 1828(c)

Combination with Interim Consolidation X 12 U.S.C. 215, 215a-c
Depository Institution Purchase and Assumption 12 U.S.C. 1815(a)
Nonaffiliate Combination Branch Purchase and Assumption Other_____________
Other Other

Applicant Depository Institution

Capital One, National Association 13688
_____________________________________________________________________________________________
Name Charter/Docket Number

McLean VA 22102-0000
_____________________________________________________________________________________________
City State Zip Code

Target Institution(s)
Charter/Docket No. Name City State

305649 Discover Bank Greenwood DE

Resultant Institution (if different than Applicant)

Capital One, National Association 13688

_____________________________________________________________________________________________
Name Charter/Docket Number
1680 Capital One Drive
_____________________________________________________________________________________________
Street

McLean VA 22102-0000
____________________________________________________________________________________________
City State Zip Code

Contact Person
Rosemary Spaziani Attorney
_____________________________________________________________________________________________
Name Title/Employer

New York NY 10019

_____________________________________________________________________________________________
City State Zip Code

212-403-1342 [email protected]
_____________________________________________________________________________________________
Telephone Number Fax Number E-mail Address
 INTERAGENCY BANK MERGER ACT APPLICATION

1. Describe the transaction’s purpose, structure, significant terms and conditions, and financing
arrangements, including any plan to raise additional equity or incur debt. Also provide the
approximate approval date needed to consummate.
See attachments

2. Provide a copy of (a) the executed merger or transaction agreement, including any
amendments, (b) any board of directors' resolutions related to the transaction, and (c) interim
charter, names of organizers, and related documents, if applicable.
See attachments
3. Describe any issues regarding the permissibility of the proposal with regard to applicable
state or Federal laws or regulations (for example, nonbank activities, branching, qualified
thrift lender’s test).
See attachments

4. Describe any nonconforming or impermissible assets or activities that Applicant or Resultant

Institution may not be permitted to retain under relevant law or regulation, including the
method of and anticipated time period for divestiture or disposal.
Not applicable
5. Provide the indicated financial information and describe the assumptions used to prepare the
projected statements, including those about the effect of the merger transaction. Material
changes between the date of the financial statements and the date of the application should be
disclosed. If there are no material changes, a statement to that effect should be made.

a. Pro Forma Balance Sheet, as of the end of the most recent quarter and for the first year of
operation after the transaction. Indicate separately for the Applicant and Target
Institution each principal group of assets, liabilities, and capital accounts; debit and credit
adjustments (explained by footnotes) reflecting the proposed acquisition; and the
resulting pro forma combined balance sheet. Goodwill and all other intangible assets
should be listed separately on the balance sheet. Indicate the amortization period and
method used for any intangible asset and the accretion period of any purchase discount on
the balance sheet.
See attachments
b. Projected Combined Statement of Income for the first year of operation following
consummation.
See attachments

c. Pro Forma and Projected Regulatory Capital Schedule, as of the end of the most recent
quarter and for the first year of operation, indicating:

x Each component item for Tier 1 (Core) and Tier 2 (Supplementary) Capital, Subtotal
for Tier 1 and Tier 2 Capital (less any investment in unconsolidated or nonincludable
subsidiaries), Total Capital (include Tier 3 if applicable).
x Total risk-weighted assets
x Capital Ratios: (1) Tier 1 capital to total risk-weighted assets; (2) Total capital to
total risk-weighted assets; and (3) Tier 1 capital to average total consolidated assets
(leverage ratio).
See attachments
6. List the directors and senior executive officers of the Resultant Institution and provide the
name, address, position with and shares held in Resultant Institution or holding company, and
principal occupation (if a director).
See attachments

7. Describe how the proposal will meet the convenience and needs of the community. For the
combining institutions, list any significant anticipated changes in services or products that
will result from the consummation of the transaction. If any services or products will be
discontinued, describe and explain the reasons.
See attachments
8. Discuss the programs, products, and activities of the Applicant or the Resultant Institution
that will meet the existing or anticipated needs of its community(ies) under the applicable
criteria of the Community Reinvestment Act (CRA) regulation, including the needs of
low- and moderate-income geographies and individuals. For an Applicant or Target
Institution that has received a CRA composite rating of "needs to improve" or "substantial
noncompliance" institution-wide or, where applicable, in a state or a multi-state MSA, or has
received an evaluation of less than satisfactory performance in an MSA or in the non-MSA
portion of a state in which the applicant is expanding as a result of the combination, describe
the specific actions, if any, that have been taken to address the deficiencies in the institution's
CRA performance record since the rating.
See attachments
9. The Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994 imposes
additional considerations for certain interstate mergers between insured banks. Savings
associations are not subject to 12 U.S.C. 1831u. If subject to these provisions, discuss
authority; compliance with state age limits and host state(s) filing requirements; and
applicability of nationwide and statewide concentration limits. In addition, discuss any other
restrictions that the states seek to apply (including state antitrust restrictions).
See attachments
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See attachments
11. As a result of this transaction, if the Applicant will be or will become affiliated with a
company engaged in insurance activities that is subject to supervision by a state
insurance regulator, provide:

a. The name of company.

b. A description of the insurance activity that the company is engaged in and has
plans to conduct.
 c. A list of each state and the lines of business in that state in which the company
holds, or will hold, an insurance license. Indicate the state where the company
holds a resident license or charter, as applicable.

If a nonaffiliate transaction, the Applicant also must reply to items 12 through 14.

12. Discuss the effects of the proposed transaction on existing competition in the relevant
geographic market(s) where Applicant and Target Institution operate. Applicant should
contact the appropriate regulatory agency for specific instructions to complete the
competitive analysis.
13. If the proposed transaction involves a branch sale or any other divestiture of all or any
portion of the bank, savings association or nonbank company (in the case of a merger under
12 U.S.C. 1828(c)(1)) to mitigate competitive effects, discuss the timing, purchaser, and
other specific information.

14. Describe any management interlocking relationships (12 U.S.C. 3201-3208) that currently
exist or would exist following consummation. Include a discussion of the permissibility of
the interlock with regard to relevant laws and regulations.
CERTIFICATION

We hereby certify that our board of directors, by resolution, has authorized the filing of this
application, and that to the best of our knowledge, it contains no misrepresentations or omissions
of material facts. In addition, we agree to notify the agency if the facts described in the filing
materially change prior to receiving a decision or prior to consummation. Any misrepresentation
or omission of a material fact constitutes fraud in the inducement and may subject us to legal
sanctions provided by 18 U.S.C. 1001 and 1007.

We acknowledge that approval of this application is in the discretion of the appropriate federal
banking agency. Actions or communications, whether oral, written, or electronic, by an agency
or its employees in connection with this filing, including approval of the application if granted,
do not constitute a contract, either express or implied, or any other obligation binding upon the
agency, other federal banking agencies, the United States, any other agency or entity of the
United States, or any officer or employee of the United States. Such actions or communications
will not affect the ability of any federal banking agency to exercise its supervisory, regulatory, or
examination powers under applicable law and regulations. We further acknowledge that the
foregoing may not be waived or modified by any employee or agent of a federal banking agency
or of the United States.

Signed this day of , .

Capital One, National Association by

(Applicant)
______________________________
(Signature of Authorized Officer) 1

_____________________________
(Typed Name)
______________________________
(Title)

Discover Bank by ______________________________

(Target Institution) (Signature of Authorized Officer)1

______________________________
(Typed Name)
______________________________
(Title)

1
In multiple-step combinations, applicants should ensure that authorized officers of the combining institutions sign.
 by ______________________________
(Target Institution) (Signature of Authorized Officer)1

______________________________
(Typed Name)
______________________________
(Title)

by ______________________________
(Target Institution) (Signature of Authorized Officer)1

______________________________
(Typed Name)
______________________________
(Title)

by ______________________________
(Target Institution) (Signature of Authorized Officer)1

______________________________
(Typed Name)
______________________________
(Title)

by ______________________________
(Target Institution) (Signature of Authorized Officer)1

______________________________
(Typed Name)
______________________________
(Title)

1
In multiple-step combinations, applicants should ensure that authorized officers of the combining institutions sign
 COMPTROLLER OF THE CURRENCY

SUPPLEMENT TO INTERAGENCY BANK MERGER ACT APPLICATION

All OCC Applicants should provide the following supplemental information with their
application:

15. If any of the combining institutions have entered into commitments with community
organizations, civic associations, or similar entities concerning providing banking
services to the community, describe the commitment.

16. If the Resultant Institution will not assume the obligations entered into by the Target
Institution, explain the reasons and describe the impact on the communities to be
affected.
17. If acquiring a non-national bank subsidiary, provide the information and analysis of the
subsidiary's activities that would be required if it were established pursuant to 12 C.F.R.
5.34 or 5.39.

18. If applicable, provide the information to satisfy the requirements of 12 C.F.R.

163.22(d)(1)(vi).
 FEDERAL RESERVE SYSTEM

SUPPLEMENT TO INTERAGENCY BANK MERGER ACT APPLICATION

With respect to question 6, FRB Applicants should consult with FRB staff regarding whether any
biographical or financial information should be submitted with respect to any new principal
shareholders, directors, and senior executive officers.

The Certification on page 5 need not be provided by the Target Institution. FRB Applicants
should modify their Certification accordingly.

In addition, all FRB Applicants should provide the following supplemental information with
their application:

15. If the pro forma consolidated assets of Applicant’s parent holding company are less than
$150 million and parent company long-term debt will exceed 30 percent of parent
company equity capital accounts on a pro forma basis, provide cash flow projections for
the parent company which clearly demonstrate the ability to reduce the long-term debt-to-
equity ratio to 30 percent or less within 12 years of consummation.
 FEDERAL DEPOSIT INSURANCE CORPORATION

SUPPLEMENT TO INTERAGENCY BANK MERGER ACT APPLICATION

All FDIC Applicants should provide the following supplemental information with their
application:

15. This section supplements question 12 of the Interagency Bank Merger Act Application for
transactions between nonaffiliated parties. Additional guidance relating to the FDIC’s
consideration of the competitive factors in a proposed merger transaction is contained in the
FDIC’s Rules and Regulations (12 C.F.R. 303 Subpart D) and Statement of Policy on Bank
Merger Transactions (2 FDIC Law, Regulations, and Related Acts 5145), which may be
found at http://www.fdic.gov/regulations/laws/rules/index.html.

I. Delineation of the relevant geographic market(s).

The relevant geographic market includes the areas in which the offices to be acquired are
located and from which those offices derive the predominant portion of their loans, deposits,
or other business. The relevant geographic market also includes the areas where existing and
potential customers impacted by the proposed merger may practically turn for alternative
sources of banking services.

(a) Prepare schedules for the Applicant Institution and Target Institution showing the total
number of accounts and total dollar volume of deposits2 for each municipality or census
tract, where applicable, according to the recorded address of the depositor (do not submit
supporting data). Small amounts may be aggregated and identified as “other.” If the
Applicant Institution is a multi-office institution, Applicant Institution deposit information
should be provided only for those offices within or proximate to the area(s) described
below under paragraph (b).

2
In most cases, total deposits will serve as an adequate proxy for the overall share of banking business in the relevant
geographic market area; however, other analytical proxies may be appropriate in certain cases (for example, a merger
transaction involving trust companies).
(b) Identify those areas where existing and potential customers of the offices to be acquired
may practically turn for alternative sources of banking services. If consideration of the
availability of such alternative banking services results in a market area considerably
different from that indicated by the sources of deposits, discuss and provide necessary
supporting information.

(c) Using the information collected in paragraphs (a) and (b), provide a narrative description
of the delineated relevant geographic market(s).
(d) Provide any additional information necessary to support the delineated relevant
geographic market(s). Supporting information may include relevant demographic
information, locations of major employers, retail trade statistics, and/or information on
traffic patterns. Applicants should consult with the applicable FDIC Regional Office in
determining whether additional information is necessary.
II. Competition in the relevant geographic market(s).

(a) Prepare a schedule of participating and competing banking institutions’ offices, divided
into three sections:

(i) Applicant Institution offices within or proximate to the relevant geographic

market(s);

(ii) Target Institution offices within or proximate to the relevant geographic

market(s); and

(iii) Competitor banking offices located or competing within the delineated relevant
geographic market(s)

To the extent known, also include banking offices approved but not yet open. The following
presentation format is suggested:

Distance and Direction

From Nearest Office
Total Applicant Target
Name and Location of Banking Deposits Institution Institution
Office
(b) For each office listed in paragraph (a), provide the street address; total deposits as
reported in the most recent FDIC Summary of Deposits Data Book
(http://www2.fdic.gov/sod/index.asp); and distance and general direction from the
nearest office of Applicant and Target Institution. In cases where the delineated
relevant geographic market includes a significant portion of a larger metropolitan area,
provide only a listing of financial institutions and the aggregate total deposits of all
offices operated by each within the delineated relevant geographic market(s).

(c) Discuss the extent and intensity of competition in the delineated relevant geographic
market(s) provided by nonbank institutions, such as other depository institutions (for
example, credit unions) and non-depository institutions (for example, finance
companies, or government agencies). For those institutions regarded as competing in
the delineated relevant geographic market(s), provide name, address, and services
supplied.
 Checklist Questions

Community Reinvestment Commitments

An applicant completing either the Interagency Bank Merger Act Application or the
Business Combination Application—Streamlined must respond to the following two
questions and, if applicable, provide the requested information.

1. Have any of the combining institutions entered into commitments with community
organizations, civic associations, or similar entities to provide banking services to
the community?
Yes † No †
If the answer is yes, describe the commitment.
2. Will the resulting bank assume all the commitments described in the previous
question?
Yes † No †
If the answer is no, explain the reasons and describe the impact on the communities
to be affected.

Competitive Factors - Removal from Expedited Processing

Although an application may initially qualify for expedited processing, it could be removed
from expedited processing if there are competitive issues that warrant additional review.
Each applicant that submits a Competitive Analysis for an unaffiliated business combination
must answer the following questions:

1. Does the HHI for any relevant banking market increase by more than 200 points
with a post-acquisition HHI of at least 1800?
Yes † No †

2. Excluding markets in which the acquiring bank has 35 percent or more of the
deposits, will the resulting bank have greater than 35 percent of the deposits in a
relevant market?
Yes † No †

A yes answer for either question indicates the application will be removed from expedited
processing for additional competitive review.
0$$
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We hereby certify that our board of directors, by resolution, has authorized the filing of
this application, and that to the best of our knowledge, it contains no
misrepresentations or omissions of material facts. In addition, we agree to notify the
agency if the facts described in the filing materially change prior to receiving a decision
or prior to consummation. Any misrepresentation or omission of a material fact
constitutes fraud in the inducement and may subject us to legal sanctions provided by
18 USC 1001 and 1007.

We acknowledge that approval of this application is in the discretion of the appropriate

federal banking agency. Actions or communications, whether oral, written, or electronic,
by an agency or its employees in connection with this filing, including approval of the
application if granted, do not constitute a contract, either express or implied, or any
other obligation binding upon the agency, other federal banking agencies, the United
States, any other agency or entity of the United States, or any officer or employee of
the United States. Such actions or communications will not affect the ability of any
federal banking agency to exercise its supervisory, regulatory, or examination powers
under applicable law and regulations. We further acknowledge that the foregoing may
not be waived or modified by any employee or agent of a federal banking agency or of
the United States.

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 Documents Provided by Bank at Time of
Submission
If no documents follow this page, the submitted application did not include any public attachments.

Capital One BMA Application - Public Exhibits Volume.pdf

Capital One, National Association Application, dated March 20, 2024.pdf
Letter submitting Capital One Application, dated March 20, 2024.pdf
 PUBLIC EXHIBITS VOLUME

APPLICATION
to the

OFFICE OF THE COMPTROLLER OF THE CURRENCY

By

CAPITAL ONE, NATIONAL ASSOCIATION

for prior approval to merge with

DISCOVER BANK

pursuant to
the Federal Deposit Insurance Act,
12 U.S.C. §§ 1828(c) and 1831u, and
the National Bank Act, 12 U.S.C. §§ 24, 36(d), 215a-1 and
12 CFR part 5

March 20, 2024

 PUBLIC EXHIBITS VOLUME

CAPITAL ONE, NATIONAL ASSOCIATION

March 20, 2024

DOCUMENT INDEX TAB

Agreement and Plan of Merger, dated February 19, 2024 ................................................ 1.
CONA Consolidated Reports of Condition and Income ................................................... 2.
Discover Bank Consolidated Reports of Condition and Income ...................................... 3.
Bank Merger Agreement, dated February 19, 2024 .......................................................... 4.
COFC Board Transaction Summary, dated February 18, 2024 ........................................ 5.
Current Organizational Chart of Discover ........................................................................ 6.
Current Organizational Chart of COFC (Public) .............................................................. 7.
Resolutions of the Board of Directors of COFC relating to the Merger ........................... 8.
Resolutions of the Board of Directors of CONA relating to the Bank Merger ................. 9.
Sole Stockholder Consent of CONA relating to the Bank Merger ................................... 10.
Sole Stockholder Consent of Vega Merger Sub, Inc. relating to the Merger .................... 11.
Resolutions of the Board of Directors of Vega Merger Sub, Inc. relating to
the Merger .................................................................................................................... 12.
Joint Resolutions of the Boards of Directors of Discover and Discover Bank
relating to the Merger, including the Bank Merger ..................................................... 13.
Sole Stockholder Consent of Discover Bank relating to the Bank Merger ....................... 14.
Form of 8-K, filed February 22,2024, announcing the Proposed Transaction ................. 15.
Form Public OCC Notice .................................................................................................. 16.
Pro Forma and Projected Financials, Capital Ratios and Asset Quality of
COFC and CONA ........................................................................................................ 17.
Current Board of Directors of COFC and CONA ............................................................. 18.
Current Senior Executives of COFC and CONA .............................................................. 19.
Additional information on Director Training .................................................................... 20.
Analysis of Competitive Impact ........................................................................................ 21.
FR Y-15 Systemic Risk Reports for COFC ...................................................................... 22.
FR Y-15 Systemic Risk Reports for Discover .................................................................. 23.
Additional Information on CD Investing and Lending ..................................................... 24.
Additional Grants and Philanthropic Activities ................................................................ 25.

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 (;+,%,7

AGREEMENT AND PLAN OF MERGER

by and among

DISCOVER FINANCIAL SERVICES,

CAPITAL ONE FINANCIAL CORPORATION

AND

VEGA MERGER SUB, INC.

_____________________

Dated as of February 19, 2024

 TABLE OF CONTENTS

ARTICLE I

THE MERGER

1.1 The Merger.......................................................................................................................... 1

1.2 Closing ................................................................................................................................ 2
1.3 Effective Time .................................................................................................................... 2
1.4 Effects of the Merger .......................................................................................................... 2
1.5 Conversion of Discover Common Stock ............................................................................ 2
1.6 Capital One Stock ............................................................................................................... 3
1.7 Merger Sub Common Stock................................................................................................ 3
1.8 Discover Preferred Stock .................................................................................................... 3
1.9 Treatment of Discover Equity Awards; Discover ESPP..................................................... 3
1.10 Certificate of Incorporation of Surviving Company ........................................................... 5
1.11 Bylaws of Surviving Company ........................................................................................... 5
1.12 Tax Consequences .............................................................................................................. 5
1.13 Officers and Directors of Surviving Company ................................................................... 5
1.14 Second Step Merger ............................................................................................................ 5
1.15 Bank Merger ....................................................................................................................... 7

ARTICLE II

EXCHANGE OF SHARES

2.1 Capital One to Make Consideration Available ................................................................... 7

2.2 Exchange of Shares ............................................................................................................. 7

ARTICLE III

REPRESENTATIONS AND WARRANTIES OF DISCOVER

3.1 Corporate Organization ..................................................................................................... 11

3.2 Capitalization .................................................................................................................... 12
3.3 Authority; No Violation .................................................................................................... 14
3.4 Consents and Approvals ................................................................................................... 15
3.5 Reports .............................................................................................................................. 15
3.6 Financial Statements ......................................................................................................... 16
3.7 Broker’s Fees .................................................................................................................... 17
3.8 Absence of Certain Changes or Events ............................................................................. 17
3.9 Legal and Regulatory Proceedings ................................................................................... 18
3.10 Taxes and Tax Returns...................................................................................................... 18
3.11 Employees ......................................................................................................................... 19
3.12 SEC Reports ...................................................................................................................... 22
3.13 Compliance with Applicable Law .................................................................................... 22

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3.14 Certain Contracts .............................................................................................................. 24
3.15 Agreements with Regulatory Agencies ............................................................................ 26
3.16 Risk Management Instruments ......................................................................................... 27
3.17 Environmental Matters...................................................................................................... 27
3.18 Investment Securities and Commodities ........................................................................... 27
3.19 Real Property .................................................................................................................... 28
3.20 Intellectual Property .......................................................................................................... 28
3.21 Related Party Transactions ............................................................................................... 29
3.22 State Takeover Laws ......................................................................................................... 29
3.23 Reorganization .................................................................................................................. 29
3.24 Opinion ............................................................................................................................. 29
3.25 Discover Information ........................................................................................................ 30
3.26 Loan Portfolio ................................................................................................................... 30
3.27 Credit Card Accounts and Receivables............................................................................. 31
3.28 Insurance ........................................................................................................................... 31
3.29 Networks ........................................................................................................................... 32
3.30 No Investment Adviser or Broker-Dealer Subsidiary ....................................................... 33
3.31 No Other Representations or Warranties .......................................................................... 33

ARTICLE IV

REPRESENTATIONS AND WARRANTIES OF CAPITAL ONE AND MERGER SUB

4.1 Corporate Organization ..................................................................................................... 34

4.2 Capitalization .................................................................................................................... 35
4.3 Authority; No Violation .................................................................................................... 37
4.4 Consents and Approvals ................................................................................................... 38
4.5 Reports .............................................................................................................................. 38
4.6 Financial Statements ......................................................................................................... 39
4.7 Broker’s Fees .................................................................................................................... 40
4.8 Absence of Certain Changes or Events ............................................................................. 40
4.9 Legal and Regulatory Proceedings ................................................................................... 41
4.10 Taxes and Tax Returns...................................................................................................... 41
4.11 Employees ......................................................................................................................... 42
4.12 SEC Reports ...................................................................................................................... 44
4.13 Compliance with Applicable Law .................................................................................... 45
4.14 Certain Contracts .............................................................................................................. 47
4.15 Agreements with Regulatory Agencies ............................................................................ 48
4.16 Risk Management Instruments ......................................................................................... 49
4.17 Environmental Matters...................................................................................................... 49
4.18 Investment Securities and Commodities ........................................................................... 49
4.19 Real Property .................................................................................................................... 50
4.20 Intellectual Property .......................................................................................................... 50
4.21 Related Party Transactions ............................................................................................... 50
4.22 State Takeover Laws ......................................................................................................... 51
4.23 Reorganization .................................................................................................................. 51
4.24 Opinion ............................................................................................................................. 51

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4.25 Capital One Information ................................................................................................... 51
4.26 Loan Portfolio ................................................................................................................... 51
4.27 Credit Card Accounts and Receivables............................................................................. 52
4.28 Insurance ........................................................................................................................... 52
4.29 IT Systems. ....................................................................................................................... 53
4.30 No Investment Advisor Subsidiary ................................................................................... 53
4.31 Broker-Dealer Subsidiary ................................................................................................. 53
4.32 No Other Representations or Warranties .......................................................................... 54

ARTICLE V

COVENANTS RELATING TO CONDUCT OF BUSINESS

5.1 Conduct of Business Prior to the Effective Time ............................................................. 55

5.2 Discover Forbearances ...................................................................................................... 55
5.3 Capital One Forbearances ................................................................................................. 58

ARTICLE VI

ADDITIONAL AGREEMENTS

6.1 Regulatory Matters............................................................................................................ 59

6.2 Access to Information; Confidentiality............................................................................. 61
6.3 Stockholders’ Approvals................................................................................................... 62
6.4 Legal Conditions to Merger .............................................................................................. 64
6.5 Stock Exchange Listing .................................................................................................... 64
6.6 Employee Matters ............................................................................................................. 64
6.7 Indemnification; Directors’ and Officers’ Insurance ........................................................ 66
6.8 Additional Agreements ..................................................................................................... 67
6.9 Advice of Changes ............................................................................................................ 67
6.10 Dividends .......................................................................................................................... 68
6.11 Stockholder Litigation ...................................................................................................... 68
6.12 Board Representation ........................................................................................................ 68
6.13 Acquisition Proposals ....................................................................................................... 68
6.14 Public Announcements ..................................................................................................... 69
6.15 Change of Method............................................................................................................. 70
6.16 Restructuring Efforts......................................................................................................... 70
6.17 Takeover Statutes .............................................................................................................. 70
6.18 Treatment of Discover Indebtedness ................................................................................ 71
6.19 Exemption from Liability Under Section 16(b) ................................................................ 71
6.20 Conduct of Merger Sub ..................................................................................................... 71

ARTICLE VII

CONDITIONS PRECEDENT

7.1 Conditions to Each Party’s Obligation to Effect the Merger ............................................ 72

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7.2 Conditions to Obligations of Capital One and Merger Sub .............................................. 72
7.3 Conditions to Obligations of Discover ............................................................................. 73

ARTICLE VIII

TERMINATION AND AMENDMENT

8.1 Termination ....................................................................................................................... 74

8.2 Effect of Termination ........................................................................................................ 75

ARTICLE IX

GENERAL PROVISIONS

9.1 Amendment ....................................................................................................................... 77

9.2 Extension; Waiver ............................................................................................................. 77
9.3 Nonsurvival of Representations, Warranties and Agreements ......................................... 78
9.4 Expenses ........................................................................................................................... 78
9.5 Notices .............................................................................................................................. 78
9.6 Interpretation ..................................................................................................................... 79
9.7 Counterparts ...................................................................................................................... 80
9.8 Entire Agreement .............................................................................................................. 80
9.9 Governing Law; Jurisdiction............................................................................................. 80
9.10 Waiver of Jury Trial .......................................................................................................... 80
9.11 Assignment; Third-Party Beneficiaries............................................................................. 81
9.12 Specific Performance ........................................................................................................ 81
9.13 Severability ....................................................................................................................... 81
9.14 Confidential Supervisory Information .............................................................................. 82
9.15 Delivery by Facsimile or Electronic Transmission ........................................................... 82

Exhibit A – Form of Bank Merger Agreement

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 INDEX OF DEFINED TERMS

Page

Account Agreement ...................................................................................................................... 31

Acquisition Proposal ..................................................................................................................... 63
Affiliate ......................................................................................................................................... 80
Agreement ....................................................................................................................................... 1
Bank Merger ................................................................................................................................... 7
Bank Merger Agreement................................................................................................................. 7
Bank Merger Certificates ................................................................................................................ 7
BHC Act........................................................................................................................................ 11
Capital One ..................................................................................................................................... 1
Capital One 401(k) Plan................................................................................................................ 65
Capital One ASPP ......................................................................................................................... 35
Capital One Bank ............................................................................................................................ 7
Capital One Benefit Plans ............................................................................................................. 42
Capital One Board Recommendation ........................................................................................... 62
Capital One Broker-Dealer Subsidiary ......................................................................................... 53
Capital One Bylaws ...................................................................................................................... 34
Capital One Cash Based Award ...................................................................................................... 4
Capital One Charter ...................................................................................................................... 34
Capital One Common Stock ........................................................................................................... 2
Capital One Contract..................................................................................................................... 48
Capital One Credit Card Accounts and Receivables .................................................................... 52
Capital One Disclosure Schedule.................................................................................................. 34
Capital One Equity Awards .......................................................................................................... 36
Capital One ERISA Affiliate ........................................................................................................ 42
Capital One Meeting ..................................................................................................................... 62
Capital One Owned Properties...................................................................................................... 50
Capital One Preferred Stock ......................................................................................................... 35
Capital One PSU Awards.............................................................................................................. 35
Capital One Qualified Plans.......................................................................................................... 42
Capital One Real Property ............................................................................................................ 50
Capital One Regulatory Agreement .............................................................................................. 49
Capital One Reports ...................................................................................................................... 44
Capital One RSU Award................................................................................................................. 4
Capital One Series O Preferred Stock ............................................................................................. 6
Capital One Series P Preferred Stock ............................................................................................. 6
Capital One Share Issuance .......................................................................................................... 37
Capital One Software and IT Systems .......................................................................................... 53
Capital One Stock Options............................................................................................................ 35
Capital One Subsidiary ................................................................................................................. 34
Certificate of Merger....................................................................................................................... 2
Certificates of Merger ..................................................................................................................... 5
Chosen Courts ............................................................................................................................... 80
Closing ............................................................................................................................................ 2

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Closing Date.................................................................................................................................... 2
Code ................................................................................................................................................ 1
Confidentiality Agreement............................................................................................................ 62
Continuing Employees .................................................................................................................. 64
Covered Partner ............................................................................................................................ 32
Criticized Assets ........................................................................................................................... 30
Data Protection Laws .................................................................................................................... 22
Delaware Secretary ......................................................................................................................... 2
DGCL.............................................................................................................................................. 1
Discover .......................................................................................................................................... 1
Discover 401(k) Plan .................................................................................................................... 65
Discover Bank ................................................................................................................................. 7
Discover Benefit Plans .................................................................................................................. 19
Discover Board Recommendation ................................................................................................ 62
Discover Bylaws ........................................................................................................................... 12
Discover Charter ........................................................................................................................... 12
Discover Common Stock ................................................................................................................ 2
Discover Compensation Committee ............................................................................................... 4
Discover Contract ......................................................................................................................... 26
Discover Credit Card Accounts and Receivables ......................................................................... 31
Discover Directors ........................................................................................................................ 68
Discover Disclosure Schedule ...................................................................................................... 10
Discover Equity Awards ............................................................................................................... 13
Discover ERISA Affiliate ............................................................................................................. 19
Discover ESPP ................................................................................................................................ 4
Discover Indemnified Parties ........................................................................................................ 66
Discover Insiders .......................................................................................................................... 71
Discover Meeting .......................................................................................................................... 62
Discover Owned Properties .......................................................................................................... 28
Discover Preferred Stock ................................................................................................................ 3
Discover PSU Award ...................................................................................................................... 4
Discover Qualified Plans .............................................................................................................. 20
Discover Real Property ................................................................................................................. 28
Discover Regulatory Agreement................................................................................................... 26
Discover Reports ........................................................................................................................... 22
Discover RSU Award ..................................................................................................................... 3
Discover Securities ....................................................................................................................... 13
Discover Series C Preferred Stock .................................................................................................. 3
Discover Series D Preferred Stock ................................................................................................. 3
Discover Subsidiary ...................................................................................................................... 12
Discover Subsidiary Securities ..................................................................................................... 13
Effective Time ................................................................................................................................ 2
Enforceability Exceptions ............................................................................................................. 14
Environmental Laws ..................................................................................................................... 27
ERISA ........................................................................................................................................... 19
Exchange Act ................................................................................................................................ 17

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Exchange Agent .............................................................................................................................. 7
Exchange Fund................................................................................................................................ 7
Exchange Ratio ............................................................................................................................... 2
FDIC ............................................................................................................................................. 12
Federal Reserve Board .................................................................................................................. 15
FINRA........................................................................................................................................... 15
GAAP............................................................................................................................................ 11
Governmental Entity ..................................................................................................................... 15
Intellectual Property ...................................................................................................................... 28
IRS ................................................................................................................................................ 19
IT Systems .................................................................................................................................... 32
Joint Proxy Statement ................................................................................................................... 15
knowledge ..................................................................................................................................... 79
Liens.............................................................................................................................................. 13
Loans ............................................................................................................................................. 30
made available .............................................................................................................................. 80
Malicious Code ............................................................................................................................. 33
Material Adverse Effect ................................................................................................................ 11
Materially Burdensome Regulatory Condition ............................................................................. 61
Merger ............................................................................................................................................. 1
Merger Consideration ..................................................................................................................... 2
Merger Sub...................................................................................................................................... 1
Merger Sub Bylaws....................................................................................................................... 34
Merger Sub Charter....................................................................................................................... 34
Merger Sub Common Stock............................................................................................................ 3
Mergers ........................................................................................................................................... 1
Multiemployer Plan ...................................................................................................................... 19
Multiple Employer Plan ................................................................................................................ 20
Network......................................................................................................................................... 25
Network Software and IT Systems ............................................................................................... 32
Networks ....................................................................................................................................... 25
New Capital One Preferred Stock ................................................................................................... 6
New Certificates.............................................................................................................................. 7
NYSE .............................................................................................................................................. 9
OCC .............................................................................................................................................. 15
Old Certificate ................................................................................................................................. 2
PBGC ............................................................................................................................................ 20
Permitted Encumbrances .............................................................................................................. 28
person ............................................................................................................................................ 79
Personal Data ................................................................................................................................ 22
Premium Cap ................................................................................................................................ 67
Receivables ................................................................................................................................... 31
Recommendation Change ............................................................................................................. 62
Regulatory Agencies ..................................................................................................................... 15
Representatives ............................................................................................................................. 68
Requisite Capital One Vote .......................................................................................................... 37

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Requisite Discover Vote ............................................................................................................... 14
Requisite Regulatory Approvals ................................................................................................... 60
S-4 ................................................................................................................................................. 15
Sarbanes-Oxley Act ...................................................................................................................... 17
SEC ............................................................................................................................................... 15
Second Effective Time .................................................................................................................... 5
Second Step Certificate of Merger .................................................................................................. 5
Second Step Merger ........................................................................................................................ 1
Securities Act ................................................................................................................................ 22
Security Breach ............................................................................................................................. 23
SRO ............................................................................................................................................... 15
Subsidiary ..................................................................................................................................... 12
Surviving Company ........................................................................................................................ 1
Surviving Entity .............................................................................................................................. 1
Takeover Statutes .......................................................................................................................... 29
Tax ................................................................................................................................................ 19
Tax Return .................................................................................................................................... 19
Taxes ............................................................................................................................................. 19
Termination Date .......................................................................................................................... 75
Termination Fee ............................................................................................................................ 76

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 AGREEMENT AND PLAN OF MERGER

AGREEMENT AND PLAN OF MERGER, dated as of February 19, 2024 (this “Agreement”),
by and among Capital One Financial Corporation, a Delaware corporation (“Capital One”),
Discover Financial Services, a Delaware corporation (“Discover”), and Vega Merger Sub, Inc., a
Delaware corporation and a direct, wholly-owned subsidiary of Capital One (“Merger Sub”).

W I T N E S S E T H:

WHEREAS, the Boards of Directors of Capital One, Discover and Merger Sub have
determined that it is in the best interests of their respective companies and their stockholders to
consummate the strategic business combination transaction provided for herein, pursuant to
which (a) Merger Sub will, subject to the terms and conditions set forth herein, merge with and
into Discover (the “Merger”), so that Discover is the surviving corporation in the Merger
(hereinafter sometimes referred to in such capacity as the “Surviving Company”), and (b)
immediately following the Merger and as part of a single, integrated transaction, Capital One
shall cause the Surviving Company to be merged with and into Capital One (the “Second Step
Merger”, and together with the Merger, the “Mergers”), so that Capital One is the surviving
corporation in the Second Step Merger (hereinafter sometimes referred to in such capacity as the
“Surviving Entity”);

WHEREAS, in furtherance thereof, the respective Boards of Directors of Capital One,

Discover and Merger Sub have approved the Mergers and this Agreement;

WHEREAS, for federal income tax purposes, it is intended that the Mergers, taken
together, shall qualify as a “reorganization” within the meaning of Section 368(a) of the Internal
Revenue Code of 1986, as amended (the “Code”), and this Agreement is intended to be and is
adopted as a plan of reorganization for purposes of Sections 354 and 361 of the Code; and

WHEREAS, the parties desire to make certain representations, warranties and agreements
in connection with the Merger and also to prescribe certain conditions to the Merger.

NOW, THEREFORE, in consideration of the mutual covenants, representations,

warranties and agreements contained herein, and intending to be legally bound hereby, the
parties agree as follows:

ARTICLE I

THE MERGER

1.1 The Merger. Subject to the terms and conditions of this Agreement, in
accordance with the Delaware General Corporation Law (the “DGCL”), at the Effective Time,
Merger Sub shall merge with and into Discover pursuant to this Agreement. Discover shall be
the Surviving Company in the Merger, and shall continue its corporate existence under the laws
of the State of Delaware. Upon consummation of the Merger, the separate corporate existence of
Merger Sub shall terminate.

1.2 Closing. Subject to the terms and conditions of this Agreement, the
closing of the Merger (the “Closing”) will take place by electronic exchange of documents at
10:00 a.m., New York City time, on a date which shall be no later than three (3) business days
after the satisfaction or waiver (subject to applicable law) of all of the conditions set forth in
Article VII hereof (other than those conditions that by their nature can only be satisfied at the
Closing, but subject to the satisfaction or waiver thereof), unless another date, time or place is
agreed to in writing by Discover and Capital One. The date on which the Closing occurs is
referred to as the “Closing Date.”

1.3 Effective Time. On or (if agreed by Discover and Capital One) prior to
the Closing Date, Capital One and Discover shall cause to be filed a certificate of merger with
respect to the Merger (the “Certificate of Merger”) with the Secretary of State of the State of
Delaware (the “Delaware Secretary”). The Merger shall become effective at such time as
specified in the Certificate of Merger in accordance with the relevant provisions of the DGCL, or
at such other time as shall be provided by applicable law (such time hereinafter referred to as the
“Effective Time”).

1.4 Effects of the Merger. At and after the Effective Time, the Merger shall
have the effects set forth in the applicable provisions of the DGCL.

1.5 Conversion of Discover Common Stock. At the Effective Time, by virtue

of the Merger and without any action on the part of Capital One, Discover, Merger Sub or any
holder of securities thereof:

(a) Subject to Section 2.2(e), each share of the common stock, par value $0.01
per share, of Discover issued and outstanding immediately prior to the Effective Time (the
“Discover Common Stock”), except for shares of Discover Common Stock owned by Discover
or Capital One (in each case other than shares of Discover Common Stock (i) held in trust
accounts, managed accounts, mutual funds and the like, or otherwise held in a fiduciary or
agency capacity that are beneficially owned by third parties or (ii) held, directly or indirectly, by
Discover or Capital One in respect of debts previously contracted), shall be converted into the
right to receive 1.0192 shares (the “Exchange Ratio” and such shares the “Merger
Consideration”) of the common stock, par value $0.01, of Capital One (the “Capital One
Common Stock”).

(b) All the shares of Discover Common Stock converted into the right to
receive the Merger Consideration pursuant to this Article I shall no longer be outstanding and
shall automatically be cancelled and shall cease to exist as of the Effective Time, and each
certificate (each, an “Old Certificate,” it being understood that any reference herein to “Old
Certificate” shall be deemed to include reference to book-entry account statements relating to the
ownership of shares of Discover Common Stock) previously representing any such shares of
Discover Common Stock shall thereafter represent only the right to receive (i) a New Certificate
representing the number of whole shares of Capital One Common Stock which such shares of
Discover Common Stock have been converted into the right to receive pursuant to this Section

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1.5, (ii) cash in lieu of fractional shares which the shares of Discover Common Stock represented
by such Old Certificate have been converted into the right to receive pursuant to this Section 1.5
and Section 2.2(e), without any interest thereon and (iii) any dividends or distributions which the
holder thereof has the right to receive pursuant to Section 2.2, in each case, without any interest
thereon. If, prior to the Effective Time, the outstanding shares of Capital One Common Stock or
Discover Common Stock shall have been increased, decreased, changed into or exchanged for a
different number or kind of shares or securities as a result of a reorganization, recapitalization,
reclassification, stock dividend, stock split or reverse stock split, or there shall be any
extraordinary dividend or distribution, an appropriate and proportionate adjustment shall be
made to the Exchange Ratio to give Capital One and the holders of Discover Common Stock the
same economic effect as contemplated by this Agreement prior to such event; provided, that
nothing contained in this sentence shall be construed to permit Discover or Capital One to take
any action with respect to its securities or otherwise that is prohibited by the terms of this
Agreement.

(c) Notwithstanding anything in this Agreement to the contrary, at the

Effective Time, all shares of Discover Common Stock that are owned by Discover, Capital One
or Merger Sub (in each case other than shares of Discover Common Stock (i) held in trust
accounts, managed accounts, mutual funds and the like, or otherwise held in a fiduciary or
agency capacity that are beneficially owned by third parties or (ii) held, directly or indirectly, by
Discover or Capital One in respect of debts previously contracted) shall be cancelled and shall
cease to exist and no Capital One Common Stock or other consideration shall be delivered in
exchange therefor.

1.6 Capital One Stock. At and after the Effective Time, each share of Capital
One Common Stock and each share of Capital One Preferred Stock issued and outstanding
immediately prior to the Effective Time shall remain an issued and outstanding share of common
stock or preferred stock, as applicable, of Capital One and shall not be affected by the Merger.

1.7 Merger Sub Common Stock. At the Effective Time, by virtue of the
Merger and without any action on the part of Capital One, Discover, Merger Sub or any holder
of securities thereof, each share of the common stock, par value $0.01 per share, of Merger Sub
(the “Merger Sub Common Stock”) issued and outstanding immediately prior to the Effective
Time shall be converted into one share of common stock of the Surviving Company.

1.8 Discover Preferred Stock. At the Effective Time, each share of Fixed-to-
Floating Rate Non-Cumulative Perpetual Preferred Stock, Series C, par value $0.01 per share, of
Discover (“Discover Series C Preferred Stock”) and each share of 6.125% Fixed-Rate Reset
Non-Cumulative Perpetual Preferred Stock, Series D, par value $0.01 per share, of Discover
(“Discover Series D Preferred Stock” and collectively with the Discover Series C Preferred
Stock, the “Discover Preferred Stock”), in each case issued and outstanding immediately prior to
the Effective Time shall remain outstanding.

1.9 Treatment of Discover Equity Awards; Discover ESPP.

(a) At the Effective Time, each restricted stock unit award in respect of shares
of Discover Common Stock (a “Discover RSU Award”) that is outstanding immediately prior to

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the Effective Time shall, automatically and without any required action on the part of the holder
thereof, be converted into a restricted stock unit award (a “Capital One RSU Award”) in respect
of that number of shares of Capital One Common Stock (rounded to the nearest whole share)
equal to the product of (i) the total number of shares of Discover Common Stock subject to the
Discover RSU Award immediately prior to the Effective Time multiplied by (ii) the Exchange
Ratio (as it may be adjusted if necessary pursuant to the last sentence of Section 1.5(b)). Each
such Capital One RSU Award shall be settleable in shares of Capital One Common Stock.
Except as expressly provided in this Section 1.9(a), each such Capital One RSU Award shall be
subject to the same terms and conditions (including vesting terms) as applied to the
corresponding Discover RSU Award immediately prior to the Effective Time.

(b) At the Effective Time, each performance stock unit award in respect of
shares of Discover Common Stock (a “Discover PSU Award”) that is outstanding immediately
prior to the Effective Time shall, automatically and without any required action on the part of the
holder thereof, be converted into a cash-based award (a “Capital One Cash Based Award”) in
respect of an amount in cash equal to the product of (i) the total number of shares of Discover
Common Stock subject to the Discover PSU Award immediately prior to the Effective Time,
with the number of shares of Discover Common Stock determined based on (A) the greater of
target and actual performance through the last quarter ending simultaneously with or prior to the
Effective Time for the Discover PSU Awards for which as of the Effective Time more than one
year of the performance period has elapsed, with such performance level to be determined
consistent with past practice by the compensation committee of the Discover Board of Directors
(the “Discover Compensation Committee”) based on information available through the last
quarter ending simultaneously with or prior to the Effective Time, and (B) target performance for
the Discover PSU Awards for which as of the Effective Time one year or less of the performance
period has elapsed, multiplied by (ii) the product of (1) the Exchange Ratio (as it may be
adjusted if necessary pursuant to the last sentence of Section 1.5(b)), multiplied by (2) the
average of the closing sale prices of Capital One Common Stock on the NYSE as reported by
The Wall Street Journal for the consecutive period of five (5) full trading days ending on the day
preceding the Closing Date. Each such Capital One Cash-Based Award shall be settleable in
cash. Except as specifically provided in this Section 1.9(b), each such Capital One Cash-Based
Award shall be subject to the same terms and conditions (including service-based vesting terms)
as applied to the corresponding Discover PSU Award immediately prior to the Effective Time.

(c) Prior to the Effective Time, Discover, the Board of Directors of Discover
and the Discover Compensation Committee, as applicable, will take action with respect to the
Discover Employee Stock Purchase Plan (the “Discover ESPP”) to provide that the final exercise
date (including for purposes of determining the Purchase Price (as defined in the Discover
ESPP)) for the Purchase Period (as defined in the Discover ESPP) that otherwise would be in
effect on the Closing Date will be no later than five (5) Business Days prior to the Effective
Time. Discover will terminate the Discover ESPP as of no later than immediately prior to the
Effective Time, pursuant to resolutions adopted by the Board of Directors of Discover or the
Discover Compensation Committee, as applicable, copies of which shall be provided to Capital
One prior to the Closing and shall be subject to Capital One’s reasonable review and comment.

(d) At or prior to the Effective Time, Discover, the Board of Directors of

Discover and the Discover Compensation Committee, as applicable, shall adopt any resolutions

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and take any actions that are necessary or appropriate to effectuate the provisions of this
Section 1.9.

(e) Capital One shall take all corporate actions that are necessary for the
assumption of the Discover RSU Awards pursuant to Section 1.9(a), including the reservation,
issuance and listing of Capital One Common Stock as necessary to effect the transactions
contemplated by this Section 1.9. As soon as practicable following the Effective Time, Capital
One shall file with the SEC a post-effective amendment to the Form S-4 or a registration
statement on Form S-8 (or any successor form) with respect to the shares of Capital One
Common Stock underlying such Discover RSU Awards, and shall use reasonable best efforts to
maintain the effectiveness of such registration statement for so long as such assumed Discover
RSU Awards remain outstanding.

1.10 Certificate of Incorporation of Surviving Company. At the Effective

Time, the certificate of incorporation of Discover, as in effect immediately prior to the Effective
Time, shall be the certificate of incorporation of the Surviving Company until thereafter
amended in accordance with applicable law.

1.11 Bylaws of Surviving Company. At the Effective Time, the bylaws of

Merger Sub, as in effect immediately prior to the Effective Time, shall be the bylaws of the
Surviving Company until thereafter amended in accordance with applicable law.

1.12 Tax Consequences. It is intended that the Mergers, taken together, shall
qualify as a “reorganization” within the meaning of Section 368(a) of the Code, and that this
Agreement is intended to be and is adopted as a plan of reorganization for the purposes of
Sections 354 and 361 of the Code.

1.13 Officers and Directors of Surviving Company. The officers and directors
of Merger Sub as of immediately prior to the Effective Time shall be the officers and directors of
the Surviving Company.

1.14 Second Step Merger.

(a) The Second Step Merger. Immediately following the Effective Time, in
accordance with the DGCL, Capital One shall cause the Surviving Company to be merged with
and into Capital One in the Second Step Merger, with Capital One surviving the Second Step
Merger as the Surviving Entity and continuing its existence under the laws of the State of
Delaware, and the separate corporate existence of the Surviving Company ceasing as of the
Second Effective Time. In furtherance of the foregoing, Capital One shall cause to be filed with
the Delaware Secretary, in accordance with the DGCL, a certificate of merger with respect to the
Second Step Merger (the “Second Step Certificate of Merger” and together with the Certificate
of Merger, the “Certificates of Merger”). The Second Step Merger shall become effective at
such time specified in the Second Step Certificate of Merger in accordance with the relevant
provisions of the DGCL (such time hereinafter referred to as the “Second Effective Time”).

(b) Surviving Company Common Stock. At the Second Effective Time, by

virtue of the Second Step Merger and without any action on the part of Capital One, the
Surviving Company or any holder of securities thereof, each share of common stock of the

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Surviving Company shall be cancelled and shall cease to exist, and no consideration shall be
delivered in exchange therefor.

(c) Surviving Company Preferred Stock. At the Second Effective Time, by

virtue of the Second Step Merger and without any action on the part of Capital One, the
Surviving Company, Merger Sub or any holder of securities thereof:

(i) Each share of Discover Series C Preferred Stock issued and

outstanding immediately prior to the Second Effective Time shall automatically be
converted into the right to receive a share of a newly created series of preferred stock of
Capital One having terms that are not materially less favorable than the Discover Series C
Preferred Stock (all shares of such newly created series, collectively, the “Capital One
Series O Preferred Stock”) and, upon such conversion, the Discover Series C Preferred
Stock shall no longer be outstanding and shall automatically be cancelled and shall cease
to exist as of the Second Effective Time.

(ii) Each share of Discover Series D Preferred Stock issued and

outstanding immediately prior to the Second Effective Time shall automatically be
converted into the right to receive a share of a newly created series of preferred stock of
Capital One having terms that are not materially less favorable than the Discover Series
D Preferred Stock (all shares of such newly created series, collectively, the “Capital One
Series P Preferred Stock,” and collectively with the Capital One Series O Preferred
Stock, the “New Capital One Preferred Stock”) and, upon such conversion, the Discover
Series D Preferred Stock shall no longer be outstanding and shall automatically be
cancelled and shall cease to exist as of the Second Effective Time.

(d) Capital One Stock. At and after the Second Effective Time, each share of
Capital One Common Stock and Capital One Preferred Stock issued and outstanding
immediately prior to the Second Effective Time shall remain an issued and outstanding share of
Capital One Common Stock and Capital One Preferred Stock and shall not be affected by the
Second Step Merger; it being understood that upon the Second Effective Time, the Capital One
Common Stock, including the shares issued to former holders of Discover Common Stock, shall
be the common stock of the Surviving Entity.

(e) Certificate of Incorporation of Surviving Entity. At the Second Effective

Time, the certificate of incorporation of Capital One, as in effect immediately prior to the Second
Effective Time, shall be the certificate of incorporation of the Surviving Entity until thereafter
amended in accordance with applicable law.

(f) Bylaws of Surviving Entity. At the Second Effective Time, the bylaws of
Capital One, as in effect immediately prior to the Second Effective Time, shall be the bylaws of
the Surviving Entity until thereafter amended in accordance with applicable law.

(g) Officers and Directors of Surviving Entity. At the Second Effective Time,
the officers and directors of Capital One as of immediately prior to the Second Effective Time
shall be the officers and directors of the Surviving Entity, subject to Section 6.12.

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 1.15 Bank Merger. Immediately following the Second Step Merger, Discover
Bank, a Delaware-chartered bank and wholly-owned Subsidiary of Discover (“Discover Bank”),
will merge with and into Capital One, National Association, a national banking association and
wholly-owned Subsidiary of Capital One (“Capital One Bank”) (the “Bank Merger”). Capital
One Bank shall be the surviving entity in the Bank Merger and, following the Bank Merger, the
separate corporate existence of Discover Bank shall cease. Promptly after the date of this
Agreement, Capital One Bank and Discover Bank will enter into an agreement and plan of
merger in substantially the form set forth in Exhibit A (the “Bank Merger Agreement”). Each of
Capital One and Discover shall adopt and approve the Bank Merger Agreement and the Bank
Merger as the sole stockholder of Capital One Bank and Discover Bank, respectively, and
Capital One and Discover shall, and shall cause Capital One Bank and Discover Bank,
respectively, to, execute certificates or articles of merger and such other documents and
certificates as are necessary to make the Bank Merger effective (“Bank Merger Certificates”)
immediately following the Second Effective Time. The Bank Merger shall become effective at
such time and date as specified in the Bank Merger Agreement in accordance with applicable
law, or at such other time as shall be provided by applicable law.

ARTICLE II

EXCHANGE OF SHARES

2.1 Capital One to Make Consideration Available. At or prior to the Effective

Time, Capital One shall deposit, or shall cause to be deposited, with a bank or trust company
designated by Capital One and reasonably acceptable to Discover (the “Exchange Agent”), for
exchange in accordance with this Article II for the benefit of the holders of Old Certificates
(which for purposes of this Article II shall be deemed to include certificates or book-entry
account statements representing shares of Discover Preferred Stock), certificates or, at Capital
One’s option, evidence in book-entry form, representing shares of Capital One Common Stock
or New Capital One Preferred Stock to be issued pursuant to Section 1.5 and Section 1.8,
respectively (collectively, referred to herein as “New Certificates”), and cash in lieu of any
fractional shares to be paid pursuant to Section 2.2(e) (such cash and New Certificates, together
with any dividends or distributions with respect to shares of Capital One Common Stock or New
Capital One Preferred Stock payable in accordance with Section 2.2(b), being hereinafter
referred to as the “Exchange Fund”).

2.2 Exchange of Shares.

(a) As promptly as practicable after the Effective Time, but in no event later
than five (5) days thereafter, Capital One shall cause the Exchange Agent to mail to each holder
of record of one or more Old Certificates representing shares of Discover Common Stock or
Discover Preferred Stock immediately prior to the Effective Time that have been converted at the
Effective Time or the Second Effective Time, as applicable, into the right to receive Capital One
Common Stock or New Capital One Preferred Stock, as applicable, pursuant to Article I, a letter
of transmittal (which shall specify that delivery shall be effected, and risk of loss and title to the
Old Certificates shall pass, only upon proper delivery of the Old Certificates to the Exchange
Agent) and instructions for use in effecting the surrender of the Old Certificates in exchange for
New Certificates representing the number of whole shares of Capital One Common Stock and

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any cash in lieu of fractional shares or shares of New Capital One Preferred Stock, as applicable,
which the shares of Discover Common Stock or Discover Preferred Stock represented by such
Old Certificate or Old Certificates shall have been converted into the right to receive pursuant to
this Agreement as well as any dividends or distributions to be paid pursuant to Section 2.2(b).
Upon proper surrender of an Old Certificate or Old Certificates for exchange and cancellation to
the Exchange Agent, together with such properly completed letter of transmittal, duly executed,
the holder of such Old Certificate or Old Certificates shall be entitled to receive in exchange
therefor, as applicable, (i) (A) a New Certificate representing that number of whole shares of
Capital One Common Stock to which such holder of Discover Common Stock shall have become
entitled pursuant to the provisions of Article I and (B) a check representing the amount of (x) any
cash in lieu of fractional shares which such holder has the right to receive in respect of the Old
Certificate or Old Certificates surrendered pursuant to the provisions of this Article II and (y)
any dividends or distributions which the holder thereof has the right to receive pursuant to
Section 2.2(b) or (ii) (A) a New Certificate representing that number of shares of New Capital
One Preferred Stock to which such holder of Discover Preferred Stock shall have become
entitled pursuant to the provisions of Article I, and (B) a check representing the amount of any
dividends or distributions which the holder thereof has the right to receive pursuant to Section
2.2(b), and the Old Certificate or Old Certificates so surrendered shall forthwith be cancelled.
No interest will be paid or accrued on any cash in lieu of fractional shares or dividends or
distributions payable to holders of Old Certificates. Until surrendered as contemplated by this
Section 2.2, each Old Certificate shall be deemed at any time after the Effective Time or the
Second Effective Time, as applicable, to represent only the right to receive, upon surrender, the
number of whole shares of Capital One Common Stock or shares of New Capital One Preferred
Stock which the shares of Discover Common Stock or Discover Preferred Stock, as applicable,
represented by such Old Certificate have been converted into the right to receive and any cash in
lieu of fractional shares or in respect of dividends or distributions as contemplated by this
Section 2.2.

(b) No dividends or other distributions declared with respect to Capital One

Common Stock or New Capital One Preferred Stock shall be paid to the holder of any
unsurrendered Old Certificate until the holder thereof shall surrender such Old Certificate in
accordance with this Article II. After the surrender of an Old Certificate in accordance with this
Article II, the record holder thereof shall be entitled to receive any such dividends or other
distributions, without any interest thereon, which theretofore had become payable with respect to
the whole shares of Capital One Common Stock or shares of New Capital One Preferred Stock
that the shares of Discover Common Stock or Discover Preferred Stock, as applicable,
represented by such Old Certificate have been converted into the right to receive.

(c) If any New Certificate representing shares of Capital One Common Stock
or New Capital One Preferred Stock is to be issued in a name other than that in which the Old
Certificate or Old Certificates surrendered in exchange therefor is or are registered, it shall be a
condition of the issuance thereof that the Old Certificate or Old Certificates so surrendered shall
be properly endorsed (or accompanied by an appropriate instrument of transfer) and otherwise in
proper form for transfer, and that the person requesting such exchange shall pay to the Exchange
Agent in advance any transfer or other similar Taxes required by reason of the issuance of a New
Certificate representing shares of Capital One Common Stock or New Capital One Preferred
Stock in any name other than that of the registered holder of the Old Certificate or Old

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Certificates surrendered, or required for any other reason, or shall establish to the satisfaction of
the Exchange Agent that such Tax has been paid or is not payable.

(d) After the Effective Time or the Second Effective Time, as applicable,
there shall be no transfers on the stock transfer books of Discover of the shares of Discover
Common Stock or Discover Preferred Stock that were issued and outstanding immediately prior
thereto. If, after the Effective Time or Second Effective Time, as applicable, Old Certificates
representing such shares are presented for transfer to the Exchange Agent, they shall be
cancelled and exchanged for New Certificates representing shares of Capital One Common Stock
or New Capital One Preferred Stock, as applicable, as provided in this Article II.

(e) Notwithstanding anything to the contrary contained herein, no New

Certificates or scrip representing fractional shares of Capital One Common Stock shall be issued
upon the surrender for exchange of Old Certificates, no dividend or distribution with respect to
Capital One Common Stock shall be payable on or with respect to any fractional share, and such
fractional share interests shall not entitle the owner thereof to vote or to any other rights of a
stockholder of Capital One. In lieu of the issuance of any such fractional share, Capital One
shall pay to each former holder of Discover Common Stock who otherwise would be entitled to
receive such fractional share an amount in cash (rounded to the nearest cent) determined by
multiplying (i) the average of the closing sale prices of Capital One Common Stock on the New
York Stock Exchange (the “NYSE”) as reported by The Wall Street Journal for the consecutive
period of five (5) full trading days ending on the day preceding the Closing Date by (ii) the
fraction of a share (after taking into account all shares of Discover Common Stock held by such
holder immediately prior to the Effective Time and rounded to the nearest one-thousandth when
expressed in decimal form) of Capital One Common Stock which such holder would otherwise
be entitled to receive pursuant to Section 1.5. The parties acknowledge that payment of such
cash consideration in lieu of issuing fractional shares is not separately bargained-for
consideration, but merely represents a mechanical rounding off for purposes of avoiding the
expense and inconvenience that would otherwise be caused by the issuance of fractional shares.

(f) Any portion of the Exchange Fund that remains unclaimed by the
stockholders of Discover for twelve (12) months after the Effective Time shall be paid to the
Surviving Entity. Any former holders of Discover Common Stock or Discover Preferred Stock
who have not theretofore complied with this Article II shall thereafter look only to the Surviving
Entity for payment of the shares of Capital One Common Stock, cash in lieu of any fractional
shares and any unpaid dividends and distributions on the Capital One Common Stock deliverable
in respect of each former share of Discover Common Stock such holder holds as determined
pursuant to this Agreement, or the shares of New Capital One Preferred Stock and any unpaid
dividends and distributions on the New Capital One Preferred Stock deliverable in respect of
each former share of Discover Preferred Stock such holder holds as determined pursuant to this
Agreement, in each case, without any interest thereon. Notwithstanding the foregoing, none of
Capital One, Discover, the Surviving Entity, the Exchange Agent or any other person shall be
liable to any former holder of shares of Discover Common Stock or Discover Preferred Stock for
any amount delivered in good faith to a public official pursuant to applicable abandoned
property, escheat or similar laws.

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 (g) Capital One shall be entitled to deduct and withhold, or cause the
Exchange Agent to deduct and withhold, from any cash in lieu of fractional shares of Capital
One Common Stock, cash dividends or distributions payable pursuant to this Section 2.2 or any
other amounts otherwise payable pursuant to this Agreement to any holder of Discover Common
Stock, Discover Preferred Stock or Discover Equity Awards, such amounts as it is required to
deduct and withhold with respect to the making of such payment under the Code or any
provision of state, local or foreign Tax law. To the extent that amounts are so withheld by
Capital One or the Exchange Agent, as the case may be, and paid over to the appropriate
governmental authority, the withheld amounts shall be treated for all purposes of this Agreement
as having been paid to the holder of Discover Common Stock, Discover Preferred Stock or
Discover Equity Awards in respect of which the deduction and withholding was made by Capital
One or the Exchange Agent, as the case may be.

(h) In the event any Old Certificate shall have been lost, stolen or destroyed,
upon the making of an affidavit of that fact by the person claiming such Old Certificate to be
lost, stolen or destroyed and, if required by Capital One or the Exchange Agent, the posting by
such person of a bond in such amount as Capital One or the Exchange Agent may determine is
reasonably necessary as indemnity against any claim that may be made against it with respect to
such Old Certificate, the Exchange Agent will issue in exchange for such lost, stolen or
destroyed Old Certificate the shares of Capital One Common Stock and any cash in lieu of
fractional shares, or the shares of New Capital One Preferred Stock, as applicable, deliverable in
respect thereof pursuant to this Agreement.

ARTICLE III

REPRESENTATIONS AND WARRANTIES OF DISCOVER

Except (a) as disclosed in the disclosure schedule delivered by Discover to Capital

One concurrently herewith (the “Discover Disclosure Schedule”); provided, that (i) no such item
is required to be set forth as an exception to a representation or warranty if its absence would not
result in the related representation or warranty being deemed untrue or incorrect, (ii) the mere
inclusion of an item in the Discover Disclosure Schedule as an exception to a representation or
warranty shall not be deemed an admission by Discover that such item represents a material
exception or fact, event or circumstance or that such item would reasonably be expected to have
a Material Adverse Effect and (iii) any disclosures made with respect to a section of Article III
shall be deemed to qualify (1) any other section of Article III specifically referenced or cross-
referenced and (2) other sections of Article III to the extent it is reasonably apparent on its face
(notwithstanding the absence of a specific cross reference) from a reading of the disclosure that
such disclosure applies to such other sections or (b) as disclosed in any Discover Reports filed by
Discover since December 31, 2021 and prior to the date hereof (but disregarding risk factor
disclosures contained under the heading “Risk Factors,” or disclosures of risks set forth in any
“forward-looking statements” disclaimer or any other statements that are similarly cautionary,
predictive or forward-looking in nature), Discover hereby represents and warrants to Capital One
as follows:

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 3.1 Corporate Organization.

(a) Discover is a corporation duly organized, validly existing and in good

standing under the laws of the State of Delaware, is a bank holding company duly registered
under the Bank Holding Company Act of 1956, as amended (the “BHC Act”) and has elected to
be treated as a financial holding company under the BHC Act. Discover has the corporate power
and authority to own, lease or operate all of its properties and assets and to carry on its business
as it is now being conducted. Discover is duly licensed or qualified to do business and in good
standing in each jurisdiction in which the nature of the business conducted by it or the character
or location of the properties and assets owned, leased or operated by it makes such licensing,
qualification or standing necessary, except where the failure to be so licensed or qualified or to
be in good standing would not, either individually or in the aggregate, reasonably be expected to
have a Material Adverse Effect on Discover. As used in this Agreement, the term “Material
Adverse Effect” means, with respect to Capital One, Discover or the Surviving Entity, as the
case may be, any effect, change, event, circumstance, condition, occurrence or development that,
either individually or in the aggregate, has had or would reasonably be expected to have a
material adverse effect on (i) the business, properties, assets, results of operations or financial
condition of such party and its Subsidiaries taken as a whole (provided, however, that, with
respect to this clause (i), Material Adverse Effect shall not be deemed to include the impact of
(A) changes, after the date hereof, in U.S. generally accepted accounting principles (“GAAP”) or
applicable regulatory accounting requirements, (B) changes, after the date hereof, in laws, rules
or regulations of general applicability to companies in the industries in which such party and its
Subsidiaries operate, or interpretations thereof by courts or Governmental Entities, (C) changes,
after the date hereof, in global, national or regional political conditions (including the outbreak of
war or acts of terrorism) or in economic or market (including equity, credit and debt markets, as
well as changes in interest rates) conditions affecting the financial services industry generally
and not specifically relating to such party or its Subsidiaries, (D) changes, after the date hereof,
resulting from hurricanes, earthquakes, tornados, floods or other natural disasters or from any
outbreak of any disease or other public health events, (E) public disclosure of the transactions
contemplated hereby (including any effect on a party’s relationships with its customers, vendors
or employees) (it being understood and agreed that the foregoing shall not apply for purposes of
the representations and warranties in Sections 3.3(b), 3.4, 3.11(j), 4.3(b), 4.4 or 4.11(j)), (F) any
stockholder litigation arising out of the Agreement or the Mergers that is brought or threatened
against a party or any party’s Board of Directors from and following the date of this Agreement
and prior to the Effective Time (it being understood and agreed that the foregoing shall not apply
for purposes of the representations and warranties in Sections 3.3(b), 3.4, 3.11(j), 4.3(b), 4.4 or
4.11(j)) or actions expressly required by this Agreement or that are taken with the prior written
consent of the other party in contemplation of the transactions contemplated hereby or (G) a
decline in the trading price of a party’s common stock or the failure, in and of itself, to meet
earnings projections or internal financial forecasts, but not, in either case, including any
underlying causes thereof; except, with respect to subclauses (A), (B), (C) or (D), to the extent
that the effects of such change are materially disproportionately adverse to the business,
properties, results of operations or financial condition of such party and its Subsidiaries, taken as
a whole, in the case of both parties, as compared to banking organizations substantially engaged
in the credit card lending business or, in the case of Discover, also as compared to banking
organizations engaged in the funds transfer network or transaction processing network
businesses or (ii) the ability of such party to timely consummate the transactions contemplated

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hereby. As used in this Agreement, the word “Subsidiary” when used with respect to any
person, means any corporation, partnership, limited liability company, bank or other
organization, whether incorporated or unincorporated, or person of which such first person
directly or indirectly owns or controls at least a majority of the securities or other interests
having by their terms ordinary voting or other power to elect a majority of the board of directors
or other managing authority of such persons performing similar functions. True, correct and
complete copies of the Restated Certificate of Incorporation of Discover (the “Discover
Charter”) and the Amended and Restated Bylaws of Discover (the “Discover Bylaws”), in each
case as in effect as of the date of this Agreement, have previously been made available by
Discover to Capital One.

(b) Each Subsidiary of Discover (a “Discover Subsidiary”) (i) is duly

organized and validly existing under the laws of its jurisdiction of organization, (ii) is duly
licensed or qualified to do business and, where such concept is recognized under applicable law,
in good standing in all jurisdictions (whether federal, state, local or foreign) where its ownership,
leasing or operation of property or the conduct of its business requires it to be so licensed or
qualified or in good standing and in which the failure to be so licensed or qualified or in good
standing would reasonably be expected to have a Material Adverse Effect on Discover and (iii)
has all requisite corporate power and authority to own, lease or operate its properties and assets
and to carry on its business as now conducted. There are no restrictions on the ability of
Discover or any Subsidiary of Discover to pay dividends or distributions except, in the case of
Discover or a Subsidiary that is a regulated entity, for restrictions on dividends or distributions
generally applicable to all similarly regulated entities. The deposit accounts of each Subsidiary
of Discover that is an insured depository institution are insured by the Federal Deposit Insurance
Corporation (the “FDIC”) through the Deposit Insurance Fund (as defined in Section 3(y) of the
Federal Deposit Insurance Act of 1950) to the fullest extent permitted by law, all premiums and
assessments required to be paid in connection therewith have been paid when due, and no
proceedings for the termination of such insurance are pending or threatened. Section 3.1(b) of
the Discover Disclosure Schedule sets forth a true and complete list of all Subsidiaries of
Discover that would constitute “significant subsidiaries” within the meaning of Rule 1-02 of
Regulation S-X of the SEC as of the date hereof (any references to “significant Subsidiaries” of
either Discover or Capital One in this Agreement shall mean “significant subsidiaries” within the
meaning of Rule 1-02 of Regulation S-X of the SEC as of the date hereof and, in the case of
Discover, the Subsidiaries of Discover set forth on Section 7.2(a) of the Discover Disclosure
Schedule). There is no person whose results of operations, cash flows, changes in stockholders’
equity or financial position are consolidated in the financial statements of Discover other than the
Discover Subsidiaries.

3.2 Capitalization.

(a) The authorized capital stock of Discover consists of 2,000,000,000 shares

of Discover Common Stock and 200,000,000 shares of preferred stock, par value $0.01 per
share. As of February 15, 2024, there were (i) 250,557,658 shares of Discover Common Stock
issued and outstanding; (ii) 320,984,826 shares of Discover Common Stock held in treasury;
(iii) 1,345,280 shares of Discover Common Stock reserved for issuance upon the settlement of
outstanding Discover RSU Awards (other than Discover RSU Awards outstanding under the
Discover Directors’ Compensation Plan), (iv) 255,748 Discover RSU Awards outstanding under

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the Discover Directors’ Compensation Plan; (v) 334,218 shares of Discover Common Stock
reserved for issuance upon the settlement of outstanding Discover PSU Awards (assuming
performance goals are satisfied at the target level) or 501,327 shares of Discover Common Stock
reserved for issuance upon the settlement of outstanding Discover PSU Awards (assuming
performance goals are satisfied at the maximum level); (vi) 1,559,512 shares of Discover
Common Stock reserved for issuance under the Discover ESPP; and (vii) (A) 5,700 shares of
Discover Series C Preferred Stock issued and outstanding and (B) 5,000 shares of Discover
Series D Preferred Stock issued and outstanding. As of the date of this Agreement, except as set
forth in the immediately preceding sentence and for changes since February 15, 2024 resulting
from the vesting or settlement of any Discover RSU Awards and Discover PSU Awards
(collectively, “Discover Equity Awards”) issued prior to the date of this Agreement as described
in the immediately preceding sentence or the exercise of options to purchase shares of Discover
Common Stock under the Discover ESPP, there are no shares of capital stock or other voting
securities or equity interests of Discover issued, reserved for issuance or outstanding. All of the
issued and outstanding shares of Discover Common Stock and Discover Preferred Stock have
been duly authorized and validly issued and are fully paid, nonassessable and free of preemptive
rights, with no personal liability attaching to the ownership thereof. Discover is current on all
dividends payable on the outstanding shares of Discover Preferred Stock and has complied in all
material respects with the terms and conditions thereof. There are no bonds, debentures, notes or
other indebtedness that have the right to vote on any matters on which stockholders of Discover
may vote. No trust preferred or subordinated debt securities of Discover are issued or
outstanding. Other than Discover Equity Awards issued prior to the date of this Agreement as
described in this Section 3.2(a) or options to purchase shares of Discover Common Stock under
the Discover ESPP, as of the date of this Agreement there are no outstanding subscriptions,
options, warrants, stock appreciation rights, phantom units, scrip, rights to subscribe to,
preemptive rights, anti-dilutive rights, rights of first refusal or similar rights, puts, calls,
commitments or agreements of any character relating to, or securities or rights convertible or
exchangeable into or exercisable for, shares of capital stock or other voting or equity securities of
or ownership interest in Discover, or contracts, commitments, understandings or arrangements by
which Discover may become bound to issue additional shares of its capital stock or other equity
or voting securities of or ownership interests in Discover or that otherwise obligate Discover to
issue, transfer, sell, purchase, redeem or otherwise acquire, any of the foregoing (collectively,
“Discover Securities,” and any of the foregoing in respect of Subsidiaries of Discover,
collectively, “Discover Subsidiary Securities”). Other than Discover Equity Awards or options
to purchase shares of Discover Common Stock under the Discover ESPP, no equity-based
awards (including any cash awards where the amount of payment is determined in whole or in
part based on the price of any capital stock of Discover or any of its Subsidiaries) are
outstanding. There are no voting trusts, stockholder agreements, proxies or other agreements in
effect to which Discover or any of its Subsidiaries is a party with respect to the voting or transfer
of Discover Common Stock, capital stock or other voting or equity securities or ownership
interests of Discover or granting any stockholder or other person any registration rights.

(b) Discover owns, directly or indirectly, all of the issued and outstanding
shares of capital stock or other equity ownership interests of each of the Discover Subsidiaries,
free and clear of any liens, claims, title defects, mortgages, pledges, charges, encumbrances and
security interests whatsoever (“Liens”), and all of such shares or equity ownership interests are
duly authorized and validly issued and are fully paid, nonassessable (except, with respect to

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Subsidiaries that are depository institutions, as provided under 12 U.S.C. § 55 or any comparable
provision of applicable state law) and free of preemptive rights, with no personal liability
attaching to the ownership thereof.

3.3 Authority; No Violation.

(a) Discover has full corporate power and authority to execute and deliver this
Agreement and, upon receipt of the Requisite Discover Vote (as defined below), to consummate
the transactions contemplated hereby. The execution and delivery of this Agreement and the
consummation of the transactions contemplated hereby (including the Mergers) have been duly
and validly approved by the Board of Directors of Discover. The Board of Directors of Discover
has unanimously determined that the transactions contemplated hereby (including the Mergers),
on the terms and conditions set forth in this Agreement, are advisable and in the best interests of
Discover and its stockholders, has approved this Agreement and the transactions contemplated
hereby (including the Mergers), and has directed that this Agreement be submitted to Discover’s
stockholders for adoption at a meeting of such stockholders and has adopted a resolution to the
foregoing effect. Except for the adoption of this Agreement by the affirmative vote of the
holders of a majority of the outstanding shares of Discover Common Stock entitled to vote on
this Agreement (the “Requisite Discover Vote”), and the adoption and approval of the Bank
Merger Agreement by Discover as Discover Bank’s sole stockholder, no other corporate
proceedings on the part of Discover are necessary to approve this Agreement or to consummate
the transactions contemplated hereby. This Agreement has been duly and validly executed and
delivered by Discover and (assuming due authorization, execution and delivery by Capital One
and Merger Sub) constitutes a valid and binding obligation of Discover, enforceable against
Discover in accordance with its terms (except in all cases as such enforceability may be limited
by bankruptcy, insolvency, moratorium, reorganization or similar laws of general applicability
affecting the rights of creditors generally and the availability of equitable remedies (the
“Enforceability Exceptions”)).

(b) Neither the execution and delivery of this Agreement by Discover nor the
consummation by Discover of the transactions contemplated hereby (including the Mergers and
the Bank Merger), nor compliance by Discover with any of the terms or provisions hereof, will
(i) violate any provision of the Discover Charter or the Discover Bylaws or (ii) assuming that the
consents and approvals referred to in Section 3.4 are duly obtained, (x) violate any law, statute,
code, ordinance, rule, regulation, judgment, order, writ, decree or injunction applicable to
Discover or any of its Subsidiaries or any of their respective properties or assets or (y) violate,
conflict with, result in a breach of any provision of or the loss of any benefit under, constitute a
default (or an event which, with notice or lapse of time, or both, would constitute a default)
under, result in the termination of or a right of termination or cancellation under, accelerate the
performance required by, or result in the creation of any Lien upon any of the respective
properties or assets of Discover or any of its Subsidiaries under, any of the terms, conditions or
provisions of any note, bond, mortgage, indenture, deed of trust, license, lease, agreement or
other instrument or obligation to which Discover or any of its Subsidiaries is a party, or by which
they or any of their respective properties or assets may be bound, except (in the case of clauses
(x) and (y) above) for such violations, conflicts, breaches, defaults, terminations, cancellations,
accelerations or creations which, either individually or in the aggregate, would not reasonably be
expected to have a Material Adverse Effect on Discover.

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 3.4 Consents and Approvals. Except for (a) the filing of any required
applications, filings and notices, as applicable, with the New York Stock Exchange, (b) the filing
of any required applications, filings and notices, as applicable, with the Board of Governors of
the Federal Reserve System (the “Federal Reserve Board”) under the BHC Act and approval of
such applications, filings and notices, (c) the filing of any required applications, filings and
notices, as applicable, with the Office of the Comptroller of the Currency (the “OCC”), and
approval of such applications, filings and notices, (d) the filing of any required applications,
filings or notices with the Financial Industry Regulatory Authority (“FINRA”) and approval of
such applications, filings and notices, (e) the filing of any required applications, filings or notices
with any state banking authorities listed on Section 3.4 of the Discover Disclosure Schedule or
Section 4.4 of the Capital One Disclosure Schedule and approval of such applications, filings and
notices, (f) the filing by Discover with the Securities and Exchange Commission (the “SEC”) of
a joint proxy statement in definitive form (including any amendments or supplements thereto, the
“Joint Proxy Statement”), and the registration statement on Form S-4 in which the Joint Proxy
Statement will be included as a prospectus, to be filed with the SEC by Capital One in
connection with the transactions contemplated by this Agreement (the “S-4”) and the declaration
of effectiveness of the S-4, (g) the filing of the Certificates of Merger with the Delaware
Secretary pursuant to the DGCL, the filing of the Bank Merger Certificates with the applicable
Governmental Entities as required by applicable law, and the filing of the respective Certificates
of Designation for the New Capital One Preferred Stock with the Delaware Secretary and (h)
such filings and approvals as are required to be made or obtained under the securities or “Blue
Sky” laws of various states in connection with the issuance of the shares of Capital One
Common Stock and New Capital One Preferred Stock pursuant to this Agreement and the
approval of the listing of such Capital One Common Stock on the NYSE, no consents or
approvals of or filings or registrations with any court, administrative agency or commission or
other governmental or regulatory authority or instrumentality or SRO (each a “Governmental
Entity”) are necessary in connection with (i) the execution and delivery by Discover of this
Agreement or (ii) the consummation by Discover of the Mergers and the other transactions
contemplated hereby (including the Bank Merger). As of the date hereof, Discover is not aware
of any reason why the necessary regulatory approvals and consents will not be received in order
to permit consummation of the Mergers and Bank Merger on a timely basis.

3.5 Reports. Discover and each of its Subsidiaries have timely filed (or
furnished) all reports, forms, registrations and statements, together with any amendments
required to be made with respect thereto, that they were required to file (or furnish, as applicable)
since January 1, 2021 with (i) any state regulatory authority, (ii) the SEC, (iii) the Federal
Reserve Board, (iv) the FDIC, (v) the OCC, (vi) any foreign regulatory authority and (vii) any
self-regulatory organization (an “SRO”) (clauses (i) – (vii), collectively “Regulatory Agencies”),
including any report, form, registration or statement required to be filed (or furnished, as
applicable) pursuant to the laws, rules or regulations of the United States, any state, any foreign
entity, or any Regulatory Agency, and have paid all fees and assessments due and payable in
connection therewith, except where the failure to file (or furnish, as applicable) such report,
form, correspondence, registration or statement or to pay such fees and assessments, either
individually or in the aggregate, would not reasonably be expected to have a Material Adverse
Effect on Discover. Subject to Section 9.14, except for normal examinations conducted by a
Regulatory Agency in the ordinary course of business of Discover and its Subsidiaries, no
Regulatory Agency has initiated or has pending any proceeding or, to the knowledge of

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Discover, investigation into the business or operations of Discover or any of its Subsidiaries
since January 1, 2021, except where such proceedings or investigations would not reasonably be
expected to have, either individually or in the aggregate, a Material Adverse Effect on Discover.
Subject to Section 9.14, there (i) is no unresolved violation, criticism, or exception by any
Regulatory Agency with respect to any report or statement relating to any examinations or
inspections of Discover or any of its Subsidiaries and (ii) have been no formal or informal
inquiries by, or disagreements or disputes with, any Regulatory Agency with respect to the
business, operations, policies or procedures of Discover or any of its Subsidiaries since January
1, 2021, in each case, which would reasonably be expected to have, either individually or in the
aggregate, a Material Adverse Effect on Discover.

3.6 Financial Statements.

(a) The financial statements of Discover and its Subsidiaries included (or
incorporated by reference) in the Discover Reports (including the related notes, where
applicable) (i) have been prepared from, and are in accordance with, the books and records of
Discover and its Subsidiaries, (ii) fairly present in all material respects the consolidated results of
operations, cash flows, changes in stockholders’ equity and consolidated financial position of
Discover and its Subsidiaries for the respective fiscal periods or as of the respective dates therein
set forth (subject in the case of unaudited statements to year-end audit adjustments normal in
nature and amount), (iii) complied, as of their respective dates of filing with the SEC, in all
material respects with applicable accounting requirements and with the published rules and
regulations of the SEC with respect thereto, and (iv) have been prepared in accordance with
GAAP consistently applied during the periods involved, except, in each case, as indicated in
such statements or in the notes thereto. Since December 31, 2020, no independent public
accounting firm of Discover has resigned (or informed Discover that it intends to resign) or been
dismissed as independent public accountants of Discover as a result of or in connection with any
disagreements with Discover on a matter of accounting principles or practices, financial
statement disclosure or auditing scope or procedure.

(b) Except as would not reasonably be expected to have, either individually or

in the aggregate, a Material Adverse Effect on Discover, neither Discover nor any of its
Subsidiaries has any liability of any nature whatsoever (whether absolute, accrued, contingent or
otherwise and whether due or to become due), except for those liabilities that are reflected or
reserved against on the consolidated balance sheet of Discover included in its Quarterly Report
on Form 10-Q for the fiscal quarter ended September 30, 2023 (including any notes thereto) and
for liabilities incurred in the ordinary course of business consistent with past practice since
September 30, 2023, or in connection with this Agreement and the transactions contemplated
hereby.

(c) The records, systems, controls, data and information of Discover and its
Subsidiaries are recorded, stored, maintained and operated under means (including any
electronic, mechanical or photographic process, whether computerized or not) that are under the
exclusive ownership of Discover or its Subsidiaries or accountants (including all means of access
thereto and therefrom), except for any non-exclusive ownership that would not reasonably be
expected to have a Material Adverse Effect on Discover. Discover (x) has implemented and
maintains disclosure controls and procedures (as defined in Rule 13a-15(e) of the Securities

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Exchange Act of 1934, as amended (the “Exchange Act”)) to ensure that material information
relating to Discover, including its Subsidiaries, is made known to the chief executive officer and
the chief financial officer of Discover by others within those entities as appropriate to allow
timely decisions regarding required disclosures and to make the certifications required by the
Exchange Act and Sections 302 and 906 of the Sarbanes-Oxley Act of 2002 (the “Sarbanes-
Oxley Act”), and (y) has disclosed in writing, based on its most recent evaluation prior to the
date hereof, to Discover’s outside auditors and the audit committee of the Board of Directors of
Discover (i) any significant deficiencies and material weaknesses in the design or operation of
internal control over financial reporting (as defined in Rule 13a-15(f) of the Exchange Act)
which are reasonably likely to adversely affect Discover’s ability to record, process, summarize
and report financial information, and (ii) any fraud, whether or not material, that involves
management or other employees who have a significant role in Discover’s internal controls over
financial reporting. There is no reason to believe that Discover’s outside auditors and its chief
executive officer and chief financial officer will not be able to give the certifications and
attestations required pursuant to the rules and regulations adopted pursuant to Section 404 of the
Sarbanes-Oxley Act, without qualification, when next due.

(d) Since January 1, 2021, (i) neither Discover nor any of its Subsidiaries, nor,
to the knowledge of Discover, any director, officer, auditor, accountant or representative of
Discover or any of its Subsidiaries, has received or otherwise had or obtained knowledge of any
material complaint, allegation, assertion or claim, whether written or oral, regarding the
accounting or auditing practices, procedures, methodologies or methods (including with respect
to loan loss reserves, write-downs, charge-offs and accruals) of Discover or any of its
Subsidiaries or their respective internal accounting controls, including any material complaint,
allegation, assertion or claim that Discover or any of its Subsidiaries has engaged in questionable
accounting or auditing practices, and (ii) no employee of or attorney representing Discover or
any of its Subsidiaries, whether or not employed by Discover or any of its Subsidiaries, has
reported evidence of a material violation of securities laws or banking laws, breach of fiduciary
duty or similar violation by Discover or any of its Subsidiaries or any of their respective officers,
directors, employees or agents to the Board of Directors of Discover or any committee thereof or
to the knowledge of Discover, to any director or officer of Discover.

3.7 Broker’s Fees. With the exception of PJT Partners LP and Morgan
Stanley & Co. LLC, neither Discover nor any Discover Subsidiary nor any of their respective
officers or directors has engaged any broker, finder or financial advisor or incurred any liability
for any broker’s fees, commissions or finder’s fees in connection with the Merger or the other
transactions contemplated by this Agreement. Discover has disclosed to Capital One as of the
date hereof the aggregate fees to be paid by Discover to PJT Partners LP and Morgan Stanley &
Co. LLC related to the Merger and the other transactions contemplated hereunder.

3.8 Absence of Certain Changes or Events.

(a) Since December 31, 2022, there has not been any effect, change, event,
circumstance, condition, occurrence or development that has had or would reasonably be
expected to have, either individually or in the aggregate, a Material Adverse Effect on Discover.

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 (b) Since December 31, 2022, Discover and its Subsidiaries have carried on
their respective businesses in all material respects in the ordinary course.

3.9 Legal and Regulatory Proceedings.

(a) Except as would not reasonably be expected to have, either individually or

in the aggregate, a Material Adverse Effect on Discover, neither Discover nor any of its
Subsidiaries is a party to any, and there are no outstanding or pending or, to the knowledge of
Discover, threatened in writing, legal, administrative, arbitral or other proceedings, claims,
actions or governmental or regulatory investigations of any nature against Discover or any of its
Subsidiaries or any of their current or former directors or executive officers or challenging the
validity or propriety of the transactions contemplated by this Agreement.

(b) There is no injunction, order, judgment, decree, or regulatory restriction

imposed upon Discover, any of its Subsidiaries or the assets of Discover or any of its
Subsidiaries (or that, upon consummation of the Mergers, would apply to the Surviving Entity or
any of its Affiliates) that would reasonably be expected to be material to the Surviving Entity and
its Subsidiaries, taken as a whole.

3.10 Taxes and Tax Returns.

(a) Each of Discover and its Subsidiaries has duly and timely filed (including
all applicable extensions) all material Tax Returns in all jurisdictions in which Tax Returns are
required to be filed by it, and all such Tax Returns are true, correct, and complete in all material
respects. Neither Discover nor any of its Subsidiaries is the beneficiary of any extension of time
within which to file any material Tax Return (other than extensions to file Tax Returns obtained
in the ordinary course). All material Taxes of Discover and its Subsidiaries (whether or not
shown on any Tax Returns) that are due have been fully and timely paid. Each of Discover and
its Subsidiaries has withheld and paid all material Taxes required to have been withheld and paid
in connection with amounts paid or owing to any employee, creditor, stockholder, independent
contractor or other third party. Neither Discover nor any of its Subsidiaries has received written
notice of assessment or proposed assessment in connection with any material amount of Taxes,
and there are no threatened in writing or pending disputes, claims, audits, examinations or other
proceedings regarding any material Tax of Discover and its Subsidiaries or the assets of Discover
and its Subsidiaries that has not been accrued in the latest audited balance sheet included in the
Discover Reports. Neither Discover nor any of its Subsidiaries is a party to or is bound by any
Tax sharing, allocation or indemnification agreement or arrangement (other than such an
agreement or arrangement exclusively between or among Discover and its Subsidiaries). Neither
Discover nor any of its Subsidiaries (A) has been a member of an affiliated group filing a
consolidated federal income Tax Return for which the statute of limitations is open (other than a
group the common parent of which was Discover) or (B) has any liability for the Taxes of any
person (other than Discover or any of its Subsidiaries) under Treasury Regulation Section
1.1502-6 (or any similar provision of state, local or foreign law), as a transferee or successor, by
contract or otherwise. Neither Discover nor any of its Subsidiaries has been, within the past two
(2) years or otherwise as part of a “plan (or series of related transactions)” within the meaning of
Section 355(e) of the Code of which the Merger is also a part, a “distributing corporation” or a
“controlled corporation” (within the meaning of Section 355(a)(1)(A) of the Code) in a

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distribution of stock intending to qualify for tax-free treatment under Section 355 of the Code.
Neither Discover nor any of its Subsidiaries has participated in a “reportable transaction” within
the meaning of Treasury Regulation Section 1.6011-4(b)(1). At no time during the past five (5)
years has Discover been a United States real property holding corporation within the meaning of
Section 897(c)(2) of the Code.

(b) As used in this Agreement, the term “Tax” or “Taxes” means all federal,
state, local, and foreign income, excise, gross receipts, ad valorem, profits, gains, property,
capital, sales, transfer, use, license, payroll, employment, social security, severance,
unemployment, withholding, duties, excise, windfall profits, intangibles, franchise, backup
withholding, value added, alternative or add-on minimum, estimated and other taxes, charges,
levies or like assessments together with all penalties and additions to tax and interest thereon.

(c) As used in this Agreement, the term “Tax Return” means any return,
declaration, report, claim for refund, or information return or statement relating to Taxes,
including any schedule or attachment thereto, and including any amendment thereof, supplied or
required to be supplied to a Governmental Entity.

3.11 Employees.

(a) Except as would not reasonably be expected to have, either individually or

in the aggregate, a Material Adverse Effect on Discover, each Discover Benefit Plan has been
established, operated and administered in accordance with its terms and the requirements of all
applicable laws, including ERISA and the Code. For purposes of this Agreement, the term
“Discover Benefit Plans” means all employee benefit plans (as defined in Section 3(3) of the
Employee Retirement Income Security Act of 1974, as amended (“ERISA”)), whether or not
subject to ERISA, and all equity, bonus or incentive, deferred compensation, retiree medical or
life insurance, supplemental retirement, severance, termination, change in control, retention,
employment, welfare, insurance, medical, fringe or other benefit plans, programs, agreements,
contracts, policies, arrangements or remuneration of any kind with respect to which Discover or
any Subsidiary or any trade or business of Discover or any of its Subsidiaries, whether or not
incorporated, all of which together with Discover would be deemed a “single employer” within
the meaning of Section 4001 of ERISA (a “Discover ERISA Affiliate”), is a party or has any
current or future obligation or that are maintained, contributed to or sponsored by Discover or
any of its Subsidiaries for the benefit of any current or former employee, officer, director or
independent contractor of Discover or any of its Subsidiaries, excluding, in each case, any
“multiemployer plan” within the meaning of Section 4001(a)(3) of ERISA (a “Multiemployer
Plan”) or any plan, program or arrangement sponsored by a Governmental Entity.

(b) Discover has made available to Capital One true and complete copies of
each material Discover Benefit Plan and the following related documents, to the extent
applicable: (i) all summary plan descriptions, amendments, modifications or material
supplements, (ii) the most recent annual report (Form 5500) filed with the Internal Revenue
Service (the “IRS”), (iii) the most recently received IRS determination letter and (iv) the most
recently prepared actuarial report.

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 (c) The IRS has issued a favorable determination letter or opinion with
respect to each Discover Benefit Plan that is intended to be qualified under Section 401(a) of the
Code (the “Discover Qualified Plans”) and the related trust, which letter or opinion has not been
revoked (nor has revocation been threatened), and, to the knowledge of Discover, there are no
existing circumstances and no events have occurred that would reasonably be expected to
adversely affect the qualified status of any Discover Qualified Plan or the related trust.

(d) Except as would not result in any material liability to Discover and its
Subsidiaries, taken as a whole, with respect to each Discover Benefit Plan that is subject to
Section 302 or Title IV of ERISA or Section 412, 430 or 4971 of the Code: (i) the minimum
funding standard under Section 302 of ERISA and Sections 412 and 430 of the Code has been
satisfied and no waiver of any minimum funding standard or any extension of any amortization
period has been requested or granted, (ii) no such plan is in “at-risk” status for purposes of
Section 430 of the Code, (iii) the present value of accrued benefits under such Discover Benefit
Plan, based upon the actuarial assumptions used for funding purposes in the most recent actuarial
report prepared by such Discover Benefit Plan’s actuary with respect to such Discover Benefit
Plan, did not, as of its latest valuation date, exceed the then current fair market value of the assets
of such Discover Benefit Plan allocable to such accrued benefits, (iv) no reportable event within
the meaning of Section 4043(c) of ERISA for which the 30-day notice requirement has not been
waived has occurred, (v) all premiums to the Pension Benefit Guaranty Corporation (the
“PBGC”) have been timely paid in full, (vi) no liability (other than for premiums to the PBGC)
under Title IV of ERISA has been or is expected to be insured by Discover or any of its
Subsidiaries, and (viii) the PBGC has not instituted proceedings to terminate any such Discover
Benefit Plan.

(e) None of Discover and its Subsidiaries nor any Discover ERISA Affiliate
has, at any time during the last six (6) years, contributed to or been obligated to contribute to a
Multiemployer Plan or a plan that has two (2) or more contributing sponsors at least two (2) of
whom are not under common control, within the meaning of Section 4063 of ERISA (a
“Multiple Employer Plan”), and none of Discover and its Subsidiaries nor any Discover ERISA
Affiliate has incurred any liability that has not been satisfied to a Multiemployer Plan or Multiple
Employer Plan as a result of a complete or partial withdrawal (as those terms are defined in Part I
of Subtitle E of Title IV of ERISA) from a Multiemployer Plan or Multiple Employer Plan.

(f) Except as would not result in any material liability to Discover and its
Subsidiaries, taken as a whole, no Discover Benefit Plan provides for any post-employment or
post-retirement health or medical or life insurance benefits for retired, former or current
employees or beneficiaries or dependents thereof, except as required by Section 4980B of the
Code.

(g) Except as would not reasonably be expected to have, either individually or

in the aggregate, a Material Adverse Effect on Discover, all contributions required to be made to
any Discover Benefit Plan by applicable law or by any plan document or other contractual
undertaking for any period through the date hereof have been timely made or paid in full or, to
the extent not required to be made or paid on or before the date hereof, have been fully reflected
on the books and records of Discover.

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 (h) There are no pending or threatened claims (other than claims for benefits
in the ordinary course), lawsuits or arbitrations which have been asserted or instituted, and, to
Discover’s knowledge, no set of circumstances exists which may reasonably give rise to a claim
or lawsuit, against the Discover Benefit Plans, any fiduciaries thereof with respect to their duties
to the Discover Benefit Plans or the assets of any of the trusts under any of the Discover Benefit
Plans that would reasonably be expected to result in any liability of Discover or any of its
Subsidiaries in an amount that would be material to Discover and its Subsidiaries, taken as a
whole.

(i) Except as would not reasonably be expected to have, either individually or

in the aggregate, a Material Adverse Effect on Discover, none of Discover and its Subsidiaries
nor any Discover ERISA Affiliate has engaged in any “prohibited transaction” (as defined in
Section 4975 of the Code or Section 406 of ERISA) which would reasonably be expected to
subject any of the Discover Benefit Plans or their related trusts, Discover, any of its Subsidiaries
or any Discover ERISA Affiliate to any material Tax or penalty imposed under Section 4975 of
the Code or Section 502 of ERISA.

(j) Neither the execution and delivery of this Agreement nor the
consummation of the transactions contemplated hereby will (either alone or in conjunction with
any other event) result in the acceleration of vesting, exercisability, funding or delivery of, or
increase in the amount or value of, any payment, right or other benefit to any employee, officer,
director or other service provider of Discover or any of its Subsidiaries, or result in any
limitation on the right of Discover or any of its Subsidiaries to amend, merge, terminate or
receive a reversion of assets from any Discover Benefit Plan or related trust on or after the
Effective Time. Without limiting the generality of the foregoing, no amount paid or payable
(whether in cash, in property, or in the form of benefits) by Discover or any of its Subsidiaries in
connection with the transactions contemplated hereby (either solely as a result thereof or as a
result of such transactions in conjunction with any other event) will be an “excess parachute
payment” within the meaning of Section 280G of the Code.

(k) No Discover Benefit Plan provides for the gross-up or reimbursement of

Taxes under Section 409A or 4999 of the Code, or otherwise.

(l) Except as would not reasonably be expected to have, either individually or

in the aggregate, a Material Adverse Effect on Discover, there are no pending or, to Discover’s
knowledge, threatened labor grievances or unfair labor practice claims or charges against
Discover or any of its Subsidiaries, or any strikes or other labor disputes against Discover or any
of its Subsidiaries. Neither Discover nor any of its Subsidiaries is party to or bound by any
collective bargaining or similar agreement with any labor organization, or work rules or practices
agreed to with any labor organization or employee association applicable to employees of
Discover or any of its Subsidiaries and, except as would not reasonably be expected to have,
either individually or in the aggregate, a Material Adverse Effect on Discover, there are no
pending or, to the knowledge of Discover, threatened organizing efforts by any union or other
group seeking to represent any employees of Discover or any of its Subsidiaries.

(m) Except as would not reasonably be expected to have, either individually or

in the aggregate, a Material Adverse Effect on Discover, each Discover Benefit Plan that is

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subject to the laws of a jurisdiction other than the United States (whether or not U.S. law also
applies) (i) has been maintained in accordance with all applicable requirements, (ii) if intended to
qualify for special tax treatment, meets all requirements for such treatment and (iii) if intended to
be funded and/or book-reserved, is fully funded and/or book reserved, as appropriate, based upon
reasonable actuarial assumptions.

3.12 SEC Reports. Discover has previously made available to Capital One an
accurate and complete copy of each (a) final registration statement, prospectus, report, schedule
and definitive proxy statement filed with or furnished to the SEC since December 31, 2020 by
Discover pursuant to the Securities Act of 1933, as amended (the “Securities Act”), or the
Exchange Act (the “Discover Reports”) and (b) communication mailed by Discover to its
stockholders since December 31, 2020 and prior to the date hereof, and no such Discover Report
or communication, as of the date thereof (and, in the case of registration statements and proxy
statements, on the dates of effectiveness and the dates of the relevant meetings, respectively),
contained any untrue statement of a material fact or omitted to state any material fact required to
be stated therein or necessary in order to make the statements therein, in light of the
circumstances in which they were made, not misleading, except that information filed or
furnished as of a later date (but before the date of this Agreement) shall be deemed to modify
information as of an earlier date. Since December 31, 2020, as of their respective dates, all
Discover Reports filed or furnished under the Securities Act and the Exchange Act complied in
all material respects with the published rules and regulations of the SEC with respect thereto. No
executive officer of Discover has failed in any respect to make the certifications required of him
or her under Section 302 or 906 of the Sarbanes-Oxley Act.

3.13 Compliance with Applicable Law.

(a) Discover and each of its Subsidiaries hold, and have at all times since
December 31, 2020, held, all licenses, registrations, franchises, certificates, permits, charters and
authorizations necessary for the lawful conduct of their respective businesses and ownership of
their respective properties, rights and assets under and pursuant to each (and have paid all fees
and assessments due and payable in connection therewith), except where neither the cost of
failure to hold nor the cost of obtaining and holding such license, registration, franchise,
certificate, permit, charter or authorization (nor the failure to pay any fees or assessments)
would, either individually or in the aggregate, reasonably be expected to have a Material Adverse
Effect on Discover, and to the knowledge of Discover, no suspension or cancellation of any such
necessary license, registration, franchise, certificate, permit, charter or authorization is
threatened.

(b) Except as would not, either individually or in the aggregate, reasonably be

expected to have a Material Adverse Effect on Discover, Discover and each of its Subsidiaries
have complied with and are not in default or violation under any law, statute, order, rule,
regulation, policy and/or guideline of any Governmental Entity applicable to Discover or any of
its Subsidiaries, including all laws related to data protection or privacy (including laws relating
to the privacy and security of data or information that constitutes personal data or personal
information under applicable laws (“Personal Data,” and such laws relating thereto, “Data
Protection Laws”)), the USA PATRIOT Act, the Bank Secrecy Act, the Equal Credit
Opportunity Act and Regulation B, the Fair Housing Act, the Community Reinvestment Act, the

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Fair Credit Reporting Act, the Truth in Lending Act and Regulation Z, the Home Mortgage
Disclosure Act, the Fair Debt Collection Practices Act, the Electronic Fund Transfer Act, the
Dodd-Frank Wall Street Reform and Consumer Protection Act, any regulations promulgated by
the Consumer Financial Protection Bureau, any rules or regulations relating to interchange fees,
including, but not limited to, 12 C.F.R. Part 235, the Interagency Policy Statement on Retail
Sales of Nondeposit Investment Products, the SAFE Mortgage Licensing Act of 2008, the Real
Estate Settlement Procedures Act and Regulation X, Title V of the Gramm-Leach-Bliley Act,
any and all sanctions or regulations enforced by the Office of Foreign Assets Control of the
United States Department of Treasury and any other law, policy or guideline relating to the
transmission, collection, processing, possession, handling, clearance, settlement and/or
remittance of funds or to funds transfer or transaction processing networks (including with
respect to transactions and relationships with merchants and merchant acquirers), bank secrecy,
discriminatory lending, financing or leasing practices, consumer protection, money laundering
prevention, foreign assets control, U.S. sanctions laws and regulations, Sections 23A and 23B of
the Federal Reserve Act, the Sarbanes-Oxley Act, and all agency requirements relating to the
origination, sale and servicing of mortgage and consumer loans.

(c) Discover Bank has a Community Reinvestment Act rating of

“satisfactory” or better.

(d) Discover maintains a written information privacy and security program

that includes measures reasonably designed to protect the privacy, confidentiality and security of
all Personal Data processed or otherwise handled by or on behalf of Discover against any (i) loss
or misuse of such Personal Data, (ii) unauthorized or unlawful processing or handling of such
Personal Data, or (iii) other act or omission that compromises the security or confidentiality of
such Personal Data (each of clauses (i) through (iii), a “Security Breach”). Except as would not
reasonably be expected to have, either individually or in the aggregate, a Material Adverse Effect
on Discover, Discover and its Subsidiaries have taken commercially reasonable measures,
consistent with general industry practices, designed to ensure the confidentiality, privacy and
security of Personal Data processed or otherwise handled by or on behalf of Discover. To the
knowledge of Discover, Discover has not experienced any Security Breach that would,
individually or in the aggregate, reasonably be expected to have a Material Adverse Effect on
Discover. To the knowledge of Discover, there are no data security or other technological
vulnerabilities with respect to its information technology systems or networks that, individually
or in the aggregate, would reasonably be expected to have a Material Adverse Effect on
Discover. Except as would not reasonably be expected to have, either individually or in the
aggregate, a Material Adverse Effect on Discover, Discover and its Subsidiaries are in
compliance with all of its and their privacy policies relating to Personal Data.

(e) Without limitation, none of Discover or any of its Subsidiaries or to the

knowledge of Discover, any director, officer, employee, agent or other person acting on behalf of
Discover or any of its Subsidiaries has, directly or indirectly, (i) used any funds of Discover or
any of its Subsidiaries for unlawful contributions, unlawful gifts, unlawful entertainment or other
expenses relating to political activity, (ii) made any unlawful payment to foreign or domestic
governmental officials or employees or to foreign or domestic political parties or campaigns
from funds of Discover or any of its Subsidiaries, (iii) violated any provision that would result in
the violation of the Foreign Corrupt Practices Act of 1977, as amended, or any similar law, (iv)

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established or maintained any unlawful fund of monies or other assets of Discover or any of its
Subsidiaries, (v) made any fraudulent entry on the books or records of Discover or any of its
Subsidiaries, (vi) made any unlawful bribe, unlawful rebate, unlawful payoff, unlawful influence
payment, unlawful kickback or other unlawful payment to any person, private or public,
regardless of form, whether in money, property or services, to obtain favorable treatment in
securing business, to obtain special concessions for Discover or any of its Subsidiaries, to pay for
favorable treatment for business secured or to pay for special concessions already obtained for
Discover or any of its Subsidiaries or (vii) is currently subject to any United States sanctions
administered by the Office of Foreign Assets Control of the United States Treasury Department,
except in each case as would not, either individually or in the aggregate, reasonably be expected
to have a Material Adverse Effect on Discover.

(f) As of the date hereof, Discover and Discover Bank each meet the
applicable published criteria to be “well-capitalized” (as such term is defined in the relevant
regulation of the applicable institution’s primary federal banking regulator).

(g) Except as would not, either individually or in the aggregate, reasonably be

expected to have a Material Adverse Effect on Discover, (i) Discover and each of its Subsidiaries
have properly administered all accounts for which it acts as a fiduciary, including accounts for
which it serves as a trustee, agent, custodian, personal representative, guardian, conservator or
investment advisor, in accordance with the terms of the governing documents and applicable
state, federal and foreign law; and (ii) none of Discover, any of its Subsidiaries, or any of its or
its Subsidiaries’ directors, officers or employees, has committed any breach of trust or fiduciary
duty with respect to any such fiduciary account, and the accountings for each such fiduciary
account are true and correct and accurately reflect the assets and results of such fiduciary
account.

3.14 Certain Contracts.

(a) Except as set forth in Section 3.14(a) of the Discover Disclosure Schedule
or as filed with any Discover Reports, as of the date hereof, neither Discover nor any of its
Subsidiaries is a party to or bound by any contract, arrangement, commitment or understanding
(whether written or oral), but excluding any Discover Benefit Plan and any contract,
arrangement, commitment or understanding solely among Discover and any wholly-owned
Subsidiaries of Discover or solely among wholly owned Subsidiaries of Discover:

(i) which is a “material contract” (as such term is defined in Item

601(b)(10) of Regulation S-K of the SEC);

(ii) which contains a provision that materially restricts the conduct of

any line of business by Discover or any of its Subsidiaries or upon consummation of the
Mergers will materially restrict the ability of the Surviving Entity or any of its Affiliates
to engage in any line of business or in any geographic region (including any exclusivity
or exclusive dealing provisions with such an effect);

(iii) with or to a labor union or guild with respect to any employees of

Discover or any its Subsidiaries (including any collective bargaining agreement);

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 (iv) any of the benefits of or obligations under which will arise or be
increased or accelerated by the occurrence of the execution and delivery of this
Agreement, receipt of the Requisite Discover Vote or the announcement or
consummation of any of the transactions contemplated by this Agreement, or under
which a right of cancellation or termination will arise as a result thereof, or the value of
any of the benefits of which will be calculated on the basis of any of the transactions
contemplated by this Agreement, where such increase or acceleration of benefits or
obligations, right of cancellation or termination, or change in calculation of value of
benefits would, either individually or in the aggregate, reasonably be expected to have a
Material Adverse Effect on Discover;

(v) (A) that relates to the incurrence of indebtedness by Discover or

any of its Subsidiaries, including any sale and leaseback transactions, securitizations, off-
balance sheet financing arrangements, capitalized leases and other similar financing
arrangements (other than deposit liabilities, trade payables, federal funds purchased,
advances and loans from the Federal Home Loan Bank and securities sold under
agreements to repurchase in each case incurred in the ordinary course of business
consistent with past practice), or (B) that provides for the guarantee, support,
indemnification, assumption or endorsement by Discover or any of its Subsidiaries of, or
any similar commitment by Discover or any of its Subsidiaries with respect to, the
obligations, liabilities or indebtedness of any other person, in the case of each of clauses
(A) and (B), in the principal amount of $40,000,000 or more;

(vi) that grants any right of first refusal, right of first offer or similar
right with respect to any material assets, rights or properties of Discover or its
Subsidiaries;

(vii) that is a consulting agreement or data processing, software

programming or licensing contract involving the payment by Discover or any of its
Subsidiaries of more than $20,000,000 per annum (other than any such contracts which
are terminable by Discover or any of its Subsidiaries on sixty (60) days’ or less notice
without any required payment or other conditions, other than the condition of notice);

(viii) that is one of the contracts related to the operations or the business
of any of the Discover Network, the PULSE network or Diners Club International (each,
a “Network” and collectively, the “Networks”) listed on Section 3.14(a)(viii) of the
Discover Disclosure Schedule;

(ix) any lease, sublease, license and other agreement under which
Discover or any of its Subsidiaries leases, subleases, licenses, uses or occupies (in each
case whether as landlord, tenant, sublandlord, subtenant or by other occupancy
arrangement), or has the right to use or occupy, now or in the future, any real property
pursuant to which the annual amount payable by Discover or any of its Subsidiaries is
more than $10,000,000;

(x) that is a settlement, consent or similar agreement and contains any

material continuing obligations of Discover or any of its Subsidiaries; or

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 (xi) that relates to the acquisition or disposition of any person, business
or asset and under which Discover or its Subsidiaries have or may have a material
obligation or liability.

Each contract, arrangement, commitment or understanding of the type described in this

Section 3.14(a), whether or not set forth in the Discover Disclosure Schedule, is referred to
herein as a “Discover Contract.” Discover has made available to Capital One true, correct and
complete copies of each Discover Contract in effect as of the date hereof.

(b) (i) Each Discover Contract is valid and binding on Discover or one of its
Subsidiaries, as applicable, and in full force and effect, except as, either individually or in the
aggregate, would not reasonably be expected to have a Material Adverse Effect on Discover, (ii)
Discover and each of its Subsidiaries have in all material respects complied with and performed
all obligations required to be complied with or performed by any of them to date under each
Discover Contract, except where such noncompliance or nonperformance, either individually or
in the aggregate, would not reasonably be expected to have a Material Adverse Effect on
Discover, (iii) to the knowledge of Discover, each third-party counterparty to each Discover
Contract has in all material respects complied with and performed all obligations required to be
complied with and performed by it to date under such Discover Contract, except where such
noncompliance or nonperformance, either individually or in the aggregate, would not reasonably
be expected to have a Material Adverse Effect on Discover, (iv) neither Discover nor any of its
Subsidiaries has knowledge of, or has received notice of, any violation of any Discover Contract
by any of the other parties thereto which would reasonably be expected to have, either
individually or in the aggregate, a Material Adverse Effect on Discover and (v) no event or
condition exists which constitutes or, after notice or lapse of time or both, will constitute, a
material breach or default on the part of Discover or any of its Subsidiaries or, to the knowledge
of Discover, any other party thereto, of or under any such Discover Contract, except where such
breach or default, either individually or in the aggregate, would not reasonably be expected to
have a Material Adverse Effect on Discover.

3.15 Agreements with Regulatory Agencies. Subject to Section 9.14, neither

Discover nor any of its Subsidiaries is subject to any cease-and-desist or other order or
enforcement action issued by, or is a party to any written agreement, consent agreement or
memorandum of understanding with, or is a party to any commitment letter or similar
undertaking to, or is subject to any order or directive by, or has been ordered to pay any civil
money penalty by, or has been since January 1, 2021, a recipient of any supervisory letter from,
or since January 1, 2021, has adopted any policies, procedures or board resolutions at the request
or suggestion of, any Regulatory Agency or other Governmental Entity that currently restricts in
any material respect or would reasonably be expected to restrict in any material respect the
conduct of its business or that in any material manner relates to its capital adequacy, its ability to
pay dividends, its credit or risk management policies, its management or its business (each,
whether or not set forth in the Discover Disclosure Schedule, a “Discover Regulatory
Agreement”), nor has Discover or any of its Subsidiaries been advised in writing since January 1,
2021, by any Regulatory Agency or other Governmental Entity that it is considering issuing,
initiating, ordering, or requesting any such Discover Regulatory Agreement.

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 3.16 Risk Management Instruments. Except as would not reasonably be
expected to have, either individually or in the aggregate, a Material Adverse Effect on Discover,
all interest rate swaps, caps, floors, option agreements, futures and forward contracts and other
similar derivative transactions and risk management arrangements, whether entered into for the
account of Discover or any of its Subsidiaries or for the account of a customer of Discover or one
of its Subsidiaries, were entered into in the ordinary course of business and in accordance with
applicable rules, regulations and policies of any Regulatory Agency and with counterparties
reasonably believed to be financially responsible at the time and are legal, valid and binding
obligations of Discover or one of its Subsidiaries enforceable in accordance with their terms
(except as may be limited by the Enforceability Exceptions). Discover and each of its
Subsidiaries have duly performed in all material respects all of their respective material
obligations thereunder to the extent that such obligations to perform have accrued, and, to the
knowledge of Discover, there are no material breaches, violations or defaults or allegations or
assertions of such by any party thereunder.

3.17 Environmental Matters. Except as would not reasonably be expected to

have, either individually or in the aggregate, a Material Adverse Effect on Discover, Discover
and its Subsidiaries are in compliance, and since December 31, 2020 have complied with, any
federal, state or local law, regulation, order, decree, permit, authorization, common law or
agency requirement relating to: (a) the protection or restoration of the environment, health and
safety as it relates to hazardous substance exposure or natural resource damages, (b) the
handling, use, presence, disposal, release or threatened release of, or exposure to, any hazardous
substance or (c) noise, odor, wetlands, indoor air, pollution, contamination or any injury to
persons or property from exposure to any hazardous substance (collectively, “Environmental
Laws”). There are no legal, administrative, arbitral or other proceedings, claims or actions or, to
the knowledge of Discover, any private environmental investigations or remediation activities or
governmental investigations of any nature seeking to impose, or that could reasonably be
expected to result in the imposition, on Discover or any of its Subsidiaries of any liability or
obligation arising under any Environmental Law pending or threatened against Discover, which
liability or obligation would reasonably be expected to have, either individually or in the
aggregate, a Material Adverse Effect on Discover. To the knowledge of Discover, there is no
reasonable basis for any such proceeding, claim, action or governmental investigation that would
impose any liability or obligation that would reasonably be expected to have, either individually
or in the aggregate, a Material Adverse Effect on Discover. Discover is not subject to any
agreement, order, judgment, decree, letter agreement or memorandum of agreement by or with
any court, Governmental Entity, Regulatory Agency or other third party imposing any liability or
obligation with respect to the foregoing that would reasonably be expected to have, either
individually or in the aggregate, a Material Adverse Effect on Discover.

3.18 Investment Securities and Commodities. Each of Discover and its

Subsidiaries has good title to all securities and commodities owned by it (except those sold under
repurchase agreements) which are material to Discover’s business on a consolidated basis, free
and clear of any Lien, except to the extent such securities or commodities are pledged in the
ordinary course of business to secure obligations of Discover or its Subsidiaries. Such securities

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and commodities are valued on the books of Discover in accordance with GAAP in all material
respects.

3.19 Real Property. Discover or a Discover Subsidiary (a) has good and
marketable title to all the real property reflected in the latest audited balance sheet included in the
Discover Reports as being owned by Discover or a Discover Subsidiary or acquired after the date
thereof which are material to Discover’s business on a consolidated basis (except properties sold
or otherwise disposed of since the date thereof in the ordinary course of business) (the “Discover
Owned Properties”), free and clear of all material Liens, except (i) statutory Liens securing
payments not yet due, (ii) Liens for real property Taxes not yet due and payable, (iii) easements,
rights of way, and other similar encumbrances that do not materially affect the value or use of the
properties or assets subject thereto or affected thereby or otherwise materially impair business
operations at such properties, (iv) landlords’, lessors’, merchants’, materialmen’s,
warehousemen’s, carriers’, workers’ or repairmen’s Liens or similar Liens arising or incurred in
the ordinary course of business and (v) such imperfections or irregularities of title or Liens as do
not materially affect the value or use of the properties or assets subject thereto or affected
thereby or otherwise materially impair business operations at such properties (collectively,
“Permitted Encumbrances”), and (b) is the lessee of all leasehold estates reflected in the latest
audited financial statements included in such Discover Reports or acquired after the date thereof
which are material to Discover’s business on a consolidated basis (except for leases that have
expired by their terms since the date thereof) (such leasehold estates, collectively with the
Discover Owned Properties, the “Discover Real Property”), free and clear of all material Liens,
except for Permitted Encumbrances, and is in possession of the properties purported to be leased
thereunder, and, to the knowledge of Discover, each such lease is valid without material default
thereunder by the lessee or, to the knowledge of Discover, the lessor. There are no pending or, to
the knowledge of Discover, threatened condemnation proceedings against the Discover Real
Property.

3.20 Intellectual Property. Discover and each of its Subsidiaries owns (free and
clear of any material Liens), or is licensed to use, all Intellectual Property necessary for the
conduct of its business as currently conducted. Except as would not reasonably be expected to
have, either individually or in the aggregate, a Material Adverse Effect on Discover: (a) (1) to
the knowledge of Discover, the conduct by Discover and its Subsidiaries of their respective
businesses does not infringe, misappropriate or otherwise violate the rights of any person and (2)
no person has asserted in writing to Discover that Discover or any of its Subsidiaries has
infringed, misappropriated or otherwise violated the Intellectual Property rights of such person,
(b) to the knowledge of Discover, no person is challenging, infringing on, misappropriating or
otherwise violating any right of Discover or any of its Subsidiaries with respect to any
Intellectual Property owned by Discover or its Subsidiaries, and (c) neither Discover nor any
Discover Subsidiary has received any written notice of any pending claim challenging the
ownership, validity or enforceability of any Intellectual Property owned by Discover or any
Discover Subsidiary, and Discover and its Subsidiaries have taken commercially reasonable
actions to avoid the abandonment, cancellation or unenforceability of all Intellectual Property
owned by Discover and its Subsidiaries. For purposes of this Agreement, “Intellectual Property”
means all rights anywhere in the world in or relating to: (i) trademarks, service marks, brand
names, d/b/a’s, internet domain names and URLs, logos, symbols, certification marks, trade
dress and other indications of origin, all goodwill associated with the foregoing, and all

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registrations and applications to register the foregoing, including any extension, modification or
renewal of any such registration or application; (ii) inventions, discoveries and ideas, whether
patentable or not, patents, applications for patents and invention disclosures (including
divisionals, revisions, continuations, continuations in part and renewals), all improvements
thereto, and any extensions, substitutes, reissues or re-examinations thereof; (iii) nonpublic
information, trade secrets and know-how, including proprietary or confidential processes,
technologies, protocols, formulae, prototypes and confidential information and rights to limit the
use or disclosure thereof by any person; (iv) writings and other works of authorship, whether
copyrightable or not (including software, content, data, databases and other compilations of
information) and whether published or unpublished, registrations or applications for registration
of copyrights, and any renewals or extensions thereof; and (v) any other intellectual property,
industrial or proprietary rights.

3.21 Related Party Transactions. As of the date hereof, except as set forth in
any Discover Reports, there are no transactions or series of related transactions, agreements,
arrangements or understandings, nor are there any currently proposed transactions or series of
related transactions, between Discover or any of its Subsidiaries, on the one hand, and any
current or former director or “executive officer” (as defined in Rule 3b-7 under the Exchange
Act) of Discover or any of its Subsidiaries or any person who beneficially owns (as defined in
Rules 13d-3 and 13d-5 of the Exchange Act) five percent (5%) or more of the outstanding
Discover Common Stock (or any of such person’s immediate family members or Affiliates)
(other than Subsidiaries of Discover), on the other hand, of the type required to be reported in
any Discover Report pursuant to Item 404 of Regulation S-K promulgated under the Exchange
Act.

3.22 State Takeover Laws. The Board of Directors of Discover has approved
this Agreement and the transactions contemplated hereby and has taken all such other necessary
actions as required to render inapplicable to such agreements and transactions the provisions of
any potentially applicable takeover laws of any state, including any “moratorium,” “control
share,” “fair price,” “takeover” or “interested stockholder” law or any similar provisions of the
Discover Charter or Discover Bylaws (collectively, with any similar provisions of the Capital
One Charter or Capital One Bylaws, “Takeover Statutes”). In accordance with Section 262 of
the DGCL, no appraisal or dissenters’ rights will be available to the holders of Discover
Common Stock or Discover Preferred Stock in connection with the Mergers.

3.23 Reorganization. Discover has not taken any action and is not aware of any
fact or circumstance that could reasonably be expected to prevent the Mergers, taken together,
from qualifying as a “reorganization” within the meaning of Section 368(a) of the Code.

3.24 Opinion. The Board of Directors of Discover has received the opinion of
PJT Partners LP to the effect that, as of the date of such opinion and subject to the assumptions,
qualifications, limitations and other matters considered in connection with the preparation of
such opinion, the Exchange Ratio in the Mergers is fair, from a financial point of view, to the
holders of Discover Common Stock. Such opinion has not been amended or rescinded as of the
date of this Agreement.

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 3.25 Discover Information. The information relating to Discover and its
Subsidiaries or that is provided by Discover or its Subsidiaries or their respective representatives
for inclusion in the Joint Proxy Statement and the S-4, or in any other document filed with any
Regulatory Agency or Governmental Entity in connection herewith, will not contain any untrue
statement of a material fact or omit to state a material fact necessary to make the statements
therein, in light of the circumstances in which they are made, not misleading. The Joint Proxy
Statement (to the extent that portions thereof relate only to Discover or any of its Subsidiaries)
will comply in all material respects with the provisions of the Exchange Act and the rules and
regulations thereunder.

3.26 Loan Portfolio.

(a) Section 3.26(a)(i) of the Discover Disclosure Schedule sets forth (i) the
aggregate outstanding principal amount, as of September 30, 2023, of all written or oral loans,
loan agreements, notes or borrowing arrangements (including leases, credit enhancements,
commitments, guarantees and interest-bearing assets) (collectively, “Loans”) in which Discover
or any Subsidiary of Discover is a creditor, other than “non-accrual” Loans (i.e., Loans under the
terms of which the obligor was, as of September 30, 2023, over ninety (90) days or more
delinquent in payment of principal or interest) and (ii) the aggregate outstanding principal
amount, as of September 30, 2023, of all “non-accrual” Loans in which Discover or any
Subsidiary of Discover is a creditor. As of September 30, 2023, Discover and its Subsidiaries
did not have outstanding Loans and assets classified as “Other Real Estate Owned” with an
aggregate then-outstanding fully committed principal amount in excess of the amount set forth
on Section 3.26(a)(ii) of the Discover Disclosure Schedule, net of specific reserves with respect
to such Loans and assets, that, as of September 30, 2023, were classified by Discover as “Other
Loans Specially Mentioned,” “Special Mention,” “Substandard,” “Doubtful,” “Loss,”
“Classified,” “Criticized,” “Credit Risk Assets,” “Concerned Loans,” “Watch List” or words of
similar import (“Criticized Assets”). Section 3.26(a)(iii) of the Discover Disclosure Schedule
sets forth (A) a summary of Criticized Assets as of September 30, 2023, by category of Loan
(e.g., student, personal, home, etc.), together with the aggregate principal amount of such Loans
by category and the amount of specific reserves with respect to each such category of Loans and
(B) each asset of Discover or any of its Subsidiaries that, as of September 30, 2023, is classified
as “Other Real Estate Owned” and the book value thereof.

(b) Except as would not reasonably be expected to have, either individually or

in the aggregate, a Material Adverse Effect on Discover, each Loan of Discover or any of its
Subsidiaries (i) is evidenced by notes, agreements or other evidences of indebtedness that are
true, genuine and what they purport to be, (ii) to the extent carried on the books and records of
Discover and its Subsidiaries as secured Loans, has been secured by valid charges, mortgages,
pledges, security interests, restrictions, claims, liens or encumbrances, as applicable, which have
been perfected and (iii) is the legal, valid and binding obligation of the obligor named therein,
enforceable in accordance with its terms, subject to the Enforceability Exceptions.

(c) Except as would not reasonably be expected to have, either individually or

in the aggregate, a Material Adverse Effect on Discover, each outstanding Loan of Discover or
any of its Subsidiaries (including Loans held for resale to investors) was solicited and originated,
and is and has been administered and, where applicable, serviced, and the relevant Loan files are

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being maintained, in all material respects in accordance with the relevant notes or other credit or
security documents, the written underwriting standards of Discover and its Subsidiaries (and, in
the case of Loans held for resale to investors, the underwriting standards, if any, of the applicable
investors) and with all applicable federal, state and local laws, regulations and rules.

3.27 Credit Card Accounts and Receivables. Except as would not reasonably
be expected to have, either individually or in the aggregate, a Material Adverse Effect on
Discover, (a) the accounts and Receivables related to the credit cards issued by Discover Bank
and any portfolio of credit card accounts and Receivables acquired by the Discover Bank
(collectively, the “Discover Credit Card Accounts and Receivables”) (other than those acquired
from a third party) have been originated, created, maintained and serviced in compliance with all
applicable laws, rules and regulations and Discover’s policies and procedures, and are being
maintained in accordance with the Account Agreements and the Discover’s written underwriting
standards, (b) in the case of any Discover Credit Card Accounts and Receivables acquired from a
third party, to the knowledge of Discover, such accounts and Receivables have been originated,
created, maintained and serviced in compliance in all material respects with all applicable laws,
rules and regulations and the originator’s policies and procedures, (c) the interest rates, fees and
charges in connection with the Discover Credit Card Accounts and Receivables comply with all
applicable laws, rules and regulations and the applicable Account Agreements, (d) all disclosures
made in connection with the Discover Credit Card Accounts and Receivables complied with all
applicable laws, rules and regulations as of the time made and (e) the Account Agreements, as
they relate to the Discover Credit Card Accounts and Receivables, are enforceable in accordance
with their terms (except as may be limited by the Enforceability Exceptions). For purposes of
this Agreement:

(i) “Receivables” means, with respect to Discover Bank or Capital

One Bank, as applicable, any amounts payable by an obligor under any credit card
account, including any amounts owing for the payment of goods and services, donations
and other gifts, cash advances, cash advance fees, access check fees, card membership
fees, accrued interest and other finance charges, and any other fee, expense, charge, or
other amount of every nature, kind and description whatsoever, less any amount owed by
Discover Bank or Capital One Bank, as applicable, or any of its respective Affiliates, to
the obligor as a credit balance, but only to the extent that such amounts payable by the
obligor are owned by Discover Bank or Capital One Bank, as applicable, or its respective
Affiliates, directly or indirectly through a securitization exposure or otherwise.

(ii) “Account Agreement” means, with respect to Discover Bank or

Capital One Bank, as applicable, an agreement between Discover Bank or Capital One
Bank, as applicable (whether as an original party, successor or assign to such agreement)
or any other Subsidiary of Discover or Capital One, as applicable (whether as an original
party, successor or assign to such agreement) and a person or persons under which an
account is established and credit cards are issued to or on behalf of such person or
persons.

3.28 Insurance. Except as would not reasonably be expected, either

individually or in the aggregate, to have a Material Adverse Effect on Discover, (a) Discover and
its Subsidiaries are insured with reputable insurers against such risks and in such amounts as the

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management of Discover reasonably has determined to be prudent and consistent with industry
practice, and Discover and its Subsidiaries are in compliance in all material respects with their
insurance policies and are not in default under any of the terms thereof, (b) each such policy is
outstanding and in full force and effect and, except for policies insuring against potential
liabilities of officers, directors and employees of Discover and its Subsidiaries, Discover or the
relevant Subsidiary thereof is the sole beneficiary of such policies, (c) all premiums and other
payments due under any such policy have been paid, and all claims thereunder have been filed in
due and timely fashion, (d) there is no claim for coverage by Discover or any of its Subsidiaries
pending under any insurance policy as to which coverage has been questioned, denied or
disputed by the underwriters of such insurance policy and (e) neither Discover nor any of its
Subsidiaries has received notice of any threatened termination of, material premium increase
with respect to, or material alteration of coverage under, any insurance policies.

3.29 Networks.

(a) (i) Section 3.29(a)(i) of the Discover Disclosure Schedule sets forth a true
and complete list of the Networks’ ten (10) largest revenue relationships, as measured by
revenue generated from such relationships in (A) the year ended December 31, 2022 and (B) the
nine (9) months ended September 30, 2023, and (ii) Section 3.29(a)(ii) of the Discover
Disclosure Schedule sets forth a true and complete list of the ten (10) largest vendors and service
providers to the Networks, as measured by the costs accrued to such relationships in (A) the year
ended December 31, 2022 and (B) the nine (9) months ended September 30, 2023 (each of the
relationships contemplated by (i) and (ii), a “Covered Partner”). Except as would not reasonably
be expected to have, either individually or in the aggregate, a Material Adverse Effect on
Discover, since December 31, 2022, Discover and its Subsidiaries have not received any written
notice from any Covered Partner that such Covered Partner intends to discontinue or
substantially reduce its relationship with Discover or any of its Subsidiaries, terminate or
adversely amend any existing material contract with Discover or any of its Subsidiaries, or not
continue its relationship with Discover or any of its Subsidiaries.

(b) Except as would not reasonably be expected to have, either individually or

in the aggregate, a Material Adverse Effect on Discover, Discover and its Subsidiaries have,
since January 1, 2021, complied with and are not in default under any law, statute, order, rule,
regulation, policy, guideline, bylaws or requirements of any applicable network alliance,
association or exchange, in each case applicable to the Networks or which maintain relationships
with the Networks.

(c) Except as would not reasonably be expected to have, either individually or

in the aggregate, a Material Adverse Effect on Discover, to the knowledge of Discover, no third
party has gained unauthorized access to or misused any Personal Data or any hardware, software,
code, systems, servers, networks, data communications lines and other information technology
and equipment (collectively “IT Systems”) used in the operation, maintenance or support of the
Networks (collectively, “Network Software and IT Systems”), in each case in a manner that has
resulted or is reasonably likely to result in either (i) liability, cost or disruption to the Networks
or (ii) a duty to notify any person. Except as would not reasonably be expected to have, either
individually or in the aggregate, a Material Adverse Effect on Discover, Discover and its
Subsidiaries have taken commercially reasonable steps and implemented commercially

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reasonable safeguards, consistent with accepted industry practices, Data Protection Laws and all
contracts to the extent such contracts relate to the processing of Personal Data, that are designed
to protect their products and services and the Network Software and IT Systems from
unauthorized access and free from any disabling codes or instructions, spyware, trojan horses,
worms, viruses, or other software routines that permit or cause unauthorized access to, or
disruption, impairment, disablement, or destruction of software, data or other materials
(“Malicious Code”). Except as would not reasonably be expected to have, either individually or
in the aggregate, a Material Adverse Effect on Discover, the Network Software and IT Systems
are (i) free from Malicious Code and (ii) have not, since December 31, 2020, experienced any
failure or malfunction.

(d) Except as would not reasonably be expected to have, either individually or

in the aggregate, a Material Adverse Effect on Discover, the Network Software and IT Systems
have not, since December 31, 2020, suffered an unscheduled outage or other failure.

3.30 No Investment Adviser or Broker-Dealer Subsidiary.

(a) Neither Discover nor any Discover Subsidiary serves in a capacity

described in Section 9(a) or 9(b) of the Investment Company Act of 1940, as amended, nor acts
as an “investment adviser” required to register as such under the Investment Advisers Act of
1940, as amended.

(b) Neither Discover nor any Discover Subsidiary is a broker-dealer required

to be registered under the Exchange Act with the SEC.

3.31 No Other Representations or Warranties.

(a) Except for the representations and warranties made by Discover in this
Article III, neither Discover nor any other person makes any express or implied representation or
warranty with respect to Discover, its Subsidiaries, or their respective businesses, operations,
assets, liabilities, conditions (financial or otherwise) or prospects, and Discover hereby disclaims
any such other representations or warranties. In particular, without limiting the foregoing
disclaimer, neither Discover nor any other person makes or has made any representation or
warranty to Capital One or any of its Affiliates or representatives with respect to (i) any financial
projection, forecast, estimate, budget or prospective information relating to Discover, any of its
Subsidiaries or their respective businesses or (ii) except for the representations and warranties
made by Discover in this Article III, any oral or written information presented to Capital One or
any of its Affiliates or representatives in the course of their due diligence investigation of
Discover, the negotiation of this Agreement or in the course of the transactions contemplated
hereby.

(b) Discover acknowledges and agrees that neither Capital One nor Merger
Sub nor any other person has made or is making any express or implied representation or
warranty other than those contained in Article IV.

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 ARTICLE IV

REPRESENTATIONS AND WARRANTIES OF CAPITAL ONE AND MERGER SUB

Except (a) as disclosed in the disclosure schedule delivered by Capital One and
Merger Sub to Discover concurrently herewith (the “Capital One Disclosure Schedule”);
provided, that (i) no such item is required to be set forth as an exception to a representation or
warranty if its absence would not result in the related representation or warranty being deemed
untrue or incorrect, (ii) the mere inclusion of an item in the Capital One Disclosure Schedule as
an exception to a representation or warranty shall not be deemed an admission by Capital One
that such item represents a material exception or fact, event or circumstance or that such item
would reasonably be expected to have a Material Adverse Effect and (iii) any disclosures made
with respect to a section of Article IV shall be deemed to qualify (1) any other section of Article
IV specifically referenced or cross-referenced and (2) other sections of Article IV to the extent it
is reasonably apparent on its face (notwithstanding the absence of a specific cross reference)
from a reading of the disclosure that such disclosure applies to such other sections or (b) as
disclosed in any Capital One Reports filed by Capital One since December 31, 2021, and prior to
the date hereof (but disregarding risk factor disclosures contained under the heading “Risk
Factors,” or disclosures of risks set forth in any “forward-looking statements” disclaimer or any
other statements that are similarly cautionary, predictive or forward-looking in nature), Capital
One and Merger Sub hereby represent and warrant to Discover as follows:

4.1 Corporate Organization.

(a) Capital One is a corporation duly organized, validly existing and in good
standing under the laws of the State of Delaware, is a bank holding company duly registered
under the BHC Act and has elected to be treated as a financial holding company under the BHC
Act. Merger Sub is a corporation duly organized, validly existing and in good standing under the
laws of the State of Delaware. Each of Capital One and Merger Sub has the corporate power and
authority to own, lease or operate all of its properties and assets and to carry on its business as it
is now being conducted. Each of Capital One and Merger Sub is duly licensed or qualified to do
business and in good standing in each jurisdiction in which the nature of the business conducted
by it or the character or location of the properties and assets owned, leased or operated by it
makes such licensing, qualification or standing necessary, except where the failure to be so
licensed or qualified or to be in good standing would not, either individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect on Capital One. True and complete
copies of the Restated Certificate of Incorporation of Capital One (the “Capital One Charter”)
and the Amended and Restated Bylaws of Capital One (the “Capital One Bylaws”) and the
certificate of incorporation of Merger Sub (the “Merger Sub Charter”) and the bylaws of Merger
Sub (the “Merger Sub Bylaws”), in each case as in effect as of the date of this Agreement, have
previously been made available by Capital One to Discover.

(b) Each Subsidiary of Capital One (a “Capital One Subsidiary”) (i) is duly
organized and validly existing under the laws of its jurisdiction of organization, (ii) is duly
licensed or qualified to do business and, where such concept is recognized under applicable law,
in good standing in all jurisdictions (whether federal, state, local or foreign) where its ownership,
leasing or operation of property or the conduct of its business requires it to be so licensed or

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qualified or in good standing and in which the failure to be so licensed or qualified or in good
standing would reasonably be expected to have a Material Adverse Effect on Capital One and
(iii) has all requisite corporate power and authority to own, lease or operate its properties and
assets and to carry on its business as now conducted. There are no restrictions on the ability of
Capital One or any Subsidiary of Capital One to pay dividends or distributions except, in the
case of Capital One or a Subsidiary that is a regulated entity, for restrictions on dividends or
distributions generally applicable to all similarly regulated entities. The deposit accounts of each
Subsidiary of Capital One that is an insured depository institution are insured by the FDIC
through the Deposit Insurance Fund (as defined in Section 3(y) of the Federal Deposit Insurance
Act of 1950) to the fullest extent permitted by law, all premiums and assessments required to be
paid in connection therewith have been paid when due, and no proceedings for the termination of
such insurance are pending or threatened. Section 4.1(b) of the Capital One Disclosure Schedule
sets forth a true and complete list of all Subsidiaries of Capital One that would constitute
significant Subsidiaries. There is no person whose results of operations, cash flows, changes in
stockholders’ equity or financial position are consolidated in the financial statements of Capital
One other than the Capital One Subsidiaries.

4.2 Capitalization.

(a) The authorized capital stock of Capital One consists of 1,000,000,000

shares of Capital One Common Stock and 50,000,000 shares of preferred stock, par value $0.01
per share. As of February 15, 2024, there were (i) 380,373,476 shares of Capital One Common
Stock issued and outstanding; (ii) 316,375,901 shares of Capital One Common Stock held in
treasury; (iii) 403,823 shares of Capital One Common Stock reserved for issuance upon the
exercise of outstanding stock options to purchase shares of Capital One Common Stock (“Capital
One Stock Options”); (iv) 10,484,834 shares of Capital One Common Stock reserved for
issuance upon the settlement of outstanding Capital One RSU Awards; (v) 1,340,794 shares of
Capital One Common Stock (assuming performance goals are satisfied at the target level) or
2,011,317 shares of Capital One Common Stock (assuming performance goals are satisfied at the
maximum level) reserved for issuance upon the settlement of outstanding performance unit
awards in respect of shares of Capital One Common Stock (“Capital One PSU Awards”); (vi)
3,459,690 shares of Capital One Common Stock reserved for issuance under the Capital One
Amended and Restated 2002 Associates Stock Purchase Plan (the “Capital One ASPP”); and
(vii) (A) 1,500,000 shares of preferred stock, which have been designated as Fixed Rate Non-
Cumulative Perpetual Preferred Stock, Series I, issued and outstanding, (B) 1,250,000 shares of
preferred stock, which have been designated as Fixed Rate Non-Cumulative Perpetual Preferred
Stock, Series J, issued and outstanding, (C) 125,000 shares of preferred stock, which have been
designated as Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series K, issued and
outstanding, (D) 675,000 shares of preferred stock, which have been designated as Fixed Rate
Non-Cumulative Perpetual Preferred Stock, Series L, issued and outstanding,
(E) 1,000,000 shares of preferred stock, which have been designated as Fixed Rate Reset Non-
Cumulative Perpetual Preferred Stock, Series M, issued and outstanding and (F) 425,000 shares
of preferred stock, which have been designated as Fixed Rate Non-Cumulative Perpetual
Preferred Stock, Series N, issued and outstanding (the preferred stock described in subclauses
(A) through (F), the “Capital One Preferred Stock”). As of the date of this Agreement, except as
set forth in the immediately preceding sentence and for changes since February 15, 2024
resulting from the exercise, vesting or settlement of any Capital One Stock Options, Capital One

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RSU Awards and Capital One PSU Awards (collectively, the “Capital One Equity Awards”)
issued prior to the date of this Agreement as described in the immediately preceding sentence or
the exercise of options to purchase shares of Capital One Common Stock under the Capital One
ASPP, there are no shares of capital stock or other voting securities or equity interests of Capital
One issued, reserved for issuance or outstanding. All of the issued and outstanding shares of
Capital One Common Stock and Capital One Preferred Stock and Merger Sub Common Stock
have been duly authorized and validly issued and are fully paid, nonassessable and free of
preemptive rights, with no personal liability attaching to the ownership thereof. Capital One is
current on all dividends payable on the outstanding shares of Capital One Preferred Stock and
has complied in all material respects with the terms and conditions thereof. There are no bonds,
debentures, notes or other indebtedness that have the right to vote on any matters on which
stockholders of Capital One or Merger Sub may vote. Except as set forth in Section 4.2(a) of the
Capital One Disclosure Schedule, no trust preferred or subordinated debt securities of Capital
One are issued or outstanding. Other than Capital One Equity Awards and Capital One Preferred
Stock issued prior to the date of this Agreement as described in this Section 4.2(a) or the exercise
of options to purchase shares of Capital One Common Stock under the Capital One ASPP, as of
the date of this Agreement there are no outstanding subscriptions, options, warrants, stock
appreciation rights, phantom units, scrip, rights to subscribe to, preemptive rights, anti-dilutive
rights, rights of first refusal or similar rights, puts, calls, commitments or agreements of any
character relating to, or securities or rights convertible or exchangeable into or exercisable for,
shares of capital stock or other voting or equity securities of or ownership interest in Capital
One, or contracts, commitments, understandings or arrangements by which Capital One may
become bound to issue additional shares of its capital stock or other equity or voting securities of
or ownership interests in Capital One or that otherwise obligate Capital One to issue, transfer,
sell, purchase, redeem or otherwise acquire, any of the foregoing. Other than the Capital One
Equity Awards or options to purchase shares of Capital One Common Stock under the Capital
One ASPP, no equity-based awards (including any cash awards where the amount of payment is
determined in whole or in part based on the price of any capital stock of Capital One or any of its
Subsidiaries) are outstanding. There are no voting trusts, stockholder agreements, proxies or
other agreements in effect to which Capital One or any of its Subsidiaries is a party with respect
to the voting or transfer of Capital One Common Stock, capital stock or other voting or equity
securities or ownership interests of Capital One or granting any stockholder or other person any
registration rights.

(b) Capital One owns, directly or indirectly, all of the issued and outstanding
shares of capital stock or other equity ownership interests of each of the Capital One
Subsidiaries, free and clear of any Liens, and all of such shares or equity ownership interests are
duly authorized and validly issued and are fully paid, nonassessable (except, with respect to
Subsidiaries that are depository institutions, as provided under 12 U.S.C. § 55 or any comparable
provision of applicable state law) and free of preemptive rights, with no personal liability
attaching to the ownership thereof. The authorized capital stock of Merger Sub consists of 100
shares of Merger Sub Common Stock of which, as of the date of this Agreement, 100 shares
were issued and outstanding. All of the issued and outstanding capital stock of Merger Sub is,
and as of immediately prior to the Effective Time will be, owned by Capital One. Merger Sub
has not conducted any business other than (i) incident to its formation for the sole purpose of
carrying out the transactions contemplated by this Agreement and (ii) in relation to this
Agreement, the Mergers and the other transactions contemplated hereby.

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 4.3 Authority; No Violation.

(a) Each of Capital One and Merger Sub has full corporate power and
authority to execute and deliver this Agreement and, upon receipt of the Requisite Capital One
Vote (as defined below), to consummate the transactions contemplated hereby. The execution
and delivery of this Agreement and the consummation of the transactions contemplated hereby
(including the Mergers) have been duly and validly approved by the Board of Directors of
Capital One and Merger Sub. The Board of Directors of Capital One has unanimously
determined that the transactions contemplated hereby (including the Mergers), on the terms and
conditions set forth in this Agreement, are advisable and in the best interests of Capital One and
its stockholders, has adopted and approved this Agreement and the transactions contemplated
hereby (including the Mergers), and has directed that the issuance of shares of Capital One
Common Stock in connection with the Merger (the “Capital One Share Issuance”) be submitted
to Capital One’s stockholders for approval at a meeting of such stockholders and has adopted a
resolution to the foregoing effect. The Board of Directors of Merger Sub has determined that the
Merger, on the terms and conditions set forth in this Agreement, is in the best interests of Merger
Sub and its sole stockholder and has adopted a resolution to the foregoing effect. Capital One, as
Merger Sub’s sole stockholder, has adopted and approved this Agreement and the transactions
contemplated hereby by written consent. Except for (i) the approval of the Capital One Share
Issuance by the affirmative vote of a majority of the votes cast by the holders of Capital One
Common Stock at the Capital One Meeting (the “Requisite Capital One Vote”), (ii) the adoption
and approval of the Bank Merger Agreement by Capital One as Capital One Bank’s sole
stockholder, (iii) the adoption, approval and filing of Certificates of Designation with respect to
the New Capital One Preferred Stock with the Delaware Secretary, and (iv) the adoption of
resolutions to give effect to the provisions of Section 6.12 in connection with the Closing, no
other corporate proceedings on the part of Capital One or Merger Sub are necessary to approve
this Agreement or to consummate the transactions contemplated hereby. This Agreement has
been duly and validly executed and delivered by each of Capital One and Merger Sub and
(assuming due authorization, execution and delivery by Discover) constitutes a valid and binding
obligation of each of Capital One and Merger Sub, enforceable against each of Capital One and
Merger Sub in accordance with its terms (except in all cases as such enforceability may be
limited by the Enforceability Exceptions). The shares of Capital One Common Stock and New
Capital One Preferred Stock to be issued in the Mergers have been validly authorized (subject to
the receipt of the Requisite Capital One Vote), and when issued, will be validly issued, fully paid
and nonassessable, and no current or past stockholder of Capital One will have any preemptive
right or similar rights in respect thereof.

(b) Neither the execution and delivery of this Agreement by Capital One or
Merger Sub, nor the consummation by Capital One or Merger Sub of the transactions
contemplated hereby (including the Mergers and the Bank Merger), nor compliance by Capital
One or Merger Sub with any of the terms or provisions hereof, will (i) violate any provision of
the Capital One Charter or the Capital One Bylaws or the Merger Sub Charter or the Merger Sub
Bylaws or (ii) assuming that the consents and approvals referred to in Section 4.4 are duly
obtained, (x) violate any law, statute, code, ordinance, rule, regulation, judgment, order, writ,
decree or injunction applicable to Capital One or any of its Subsidiaries or any of their respective
properties or assets or (y) violate, conflict with, result in a breach of any provision of or the loss
of any benefit under, constitute a default (or an event which, with notice or lapse of time, or both,

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would constitute a default) under, result in the termination of or a right of termination or
cancellation under, accelerate the performance required by, or result in the creation of any Lien
upon any of the respective properties or assets of Capital One or any of its Subsidiaries under,
any of the terms, conditions or provisions of any note, bond, mortgage, indenture, deed of trust,
license, lease, agreement or other instrument or obligation to which Capital One or any of its
Subsidiaries is a party, or by which they or any of their respective properties or assets may be
bound, except (in the case of clauses (x) and (y) above) for such violations, conflicts, breaches,
defaults, terminations, cancellations, accelerations or creations which, either individually or in
the aggregate, would not reasonably be expected to have a Material Adverse Effect on Capital
One.

4.4 Consents and Approvals. Except for (a) the filing of any required
applications, filings and notices, as applicable, with the New York Stock Exchange, (b) the filing
of any required applications, filings and notices, as applicable, with the Federal Reserve Board
under the BHC Act and approval of such applications, filings and notices, (c) the filing of any
required applications, filings and notices, as applicable, with the OCC and approval of such
applications, filings and notices, (d) the filing of any required applications, filings or notices with
FINRA and approval of such applications, filings and notices, (e) the filing of any required
applications, filings or notices with any state banking authorities listed on Section 3.4 of the
Discover Disclosure Schedule or Section 4.4 of the Capital One Disclosure Schedule and
approval of such applications, filings and notices, (f) the filing with the SEC of the Joint Proxy
Statement and the S-4 in which the Joint Proxy Statement will be included as a prospectus, and
the declaration of effectiveness of the S-4, (g) the filing of the Certificates of Merger with the
Delaware Secretary pursuant to the DGCL, the filing of the Bank Merger Certificates with the
applicable Governmental Entities as required by applicable law, and the filing of Certificates of
Designation for the New Capital One Preferred Stock with the Delaware Secretary and (h) such
filings and approvals as are required to be made or obtained under the securities or “Blue Sky”
laws of various states in connection with the issuance of the shares of Capital One Common
Stock and New Capital One Preferred Stock pursuant to this Agreement and the approval of the
listing of such Capital One Common Stock on the NYSE, no consents or approvals of or filings
or registrations with any Governmental Entity are necessary in connection with (i) the execution
and delivery by Capital One and Merger Sub of this Agreement or (ii) the consummation by
Capital One and Merger Sub of the Mergers, as applicable, and the other transactions
contemplated hereby (including the Bank Merger). As of the date hereof, Capital One is not
aware of any reason why the necessary regulatory approvals and consents will not be received in
order to permit consummation of the Mergers and Bank Merger on a timely basis.

4.5 Reports. Capital One and each of its Subsidiaries have timely filed (or
furnished) all reports, forms, registrations and statements, together with any amendments
required to be made with respect thereto, that they were required to file (or furnish, as applicable)
since January 1, 2021 with any Regulatory Agencies, including any report, form, registration or
statement required to be filed (or furnished, as applicable) pursuant to the laws, rules or
regulations of the United States, any state, any foreign entity, or any Regulatory Agency, and
have paid all fees and assessments due and payable in connection therewith, except where the
failure to file (or furnish, as applicable) such report, form, correspondence, registration or
statement or to pay such fees and assessments, either individually or in the aggregate, would not
reasonably be expected to have a Material Adverse Effect on Capital One. Subject to Section

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9.14, except for normal examinations conducted by a Regulatory Agency in the ordinary course
of business of Capital One and its Subsidiaries, no Regulatory Agency has initiated or has
pending any proceeding or, to the knowledge of Capital One, investigation into the business or
operations of Capital One or any of its Subsidiaries since January 1, 2021, except where such
proceedings or investigations would not reasonably be expected to have, either individually or in
the aggregate, a Material Adverse Effect on Capital One. Subject to Section 9.14, there (i) is no
unresolved violation, criticism, or exception by any Regulatory Agency with respect to any
report or statement relating to any examinations or inspections of Capital One or any of its
Subsidiaries and (ii) have been no formal or informal inquiries by, or disagreements or disputes
with, any Regulatory Agency with respect to the business, operations, policies or procedures of
Capital One or any of its Subsidiaries since January 1, 2021, in each case, which would
reasonably be expected to have, either individually or in the aggregate, a Material Adverse Effect
on Capital One.

4.6 Financial Statements.

(a) The financial statements of Capital One and its Subsidiaries included (or
incorporated by reference) in the Capital One Reports (including the related notes, where
applicable) (i) have been prepared from, and are in accordance with, the books and records of
Capital One and its Subsidiaries, (ii) fairly present in all material respects the consolidated
results of operations, cash flows, changes in stockholders’ equity and consolidated financial
position of Capital One and its Subsidiaries for the respective fiscal periods or as of the
respective dates therein set forth (subject in the case of unaudited statements to year-end audit
adjustments normal in nature and amount), (iii) complied, as of their respective dates of filing
with the SEC, in all material respects with applicable accounting requirements and with the
published rules and regulations of the SEC with respect thereto, and (iv) have been prepared in
accordance with GAAP consistently applied during the periods involved, except, in each case, as
indicated in such statements or in the notes thereto. Since December 31, 2020, no independent
public accounting firm of Capital One has resigned (or informed Capital One that it intends to
resign) or been dismissed as independent public accountants of Capital One as a result of or in
connection with any disagreements with Capital One on a matter of accounting principles or
practices, financial statement disclosure or auditing scope or procedure.

(b) Except as would not reasonably be expected to have, either individually or

in the aggregate, a Material Adverse Effect on Capital One, neither Capital One nor any of its
Subsidiaries has any liability of any nature whatsoever (whether absolute, accrued, contingent or
otherwise and whether due or to become due), except for those liabilities that are reflected or
reserved against on the consolidated balance sheet of Capital One included in its Quarterly
Report on Form 10-Q for the fiscal quarter ended September 30, 2023 (including any notes
thereto) and for liabilities incurred in the ordinary course of business consistent with past
practice since September 30, 2023, or in connection with this Agreement and the transactions
contemplated hereby.

(c) The records, systems, controls, data and information of Capital One and its
Subsidiaries are recorded, stored, maintained and operated under means (including any
electronic, mechanical or photographic process, whether computerized or not) that are under the
exclusive ownership of Capital One or its Subsidiaries or accountants (including all means of

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access thereto and therefrom), except for any non-exclusive ownership that would not reasonably
be expected to have a Material Adverse Effect on Capital One. Capital One (x) has implemented
and maintains disclosure controls and procedures (as defined in Rule 13a-15(e) of the Exchange
Act) to ensure that material information relating to Capital One, including its Subsidiaries, is
made known to the chief executive officer and the chief financial officer of Capital One by
others within those entities as appropriate to allow timely decisions regarding required
disclosures and to make the certifications required by the Exchange Act and Sections 302 and
906 of the Sarbanes-Oxley Act, and (y) has disclosed in writing, based on its most recent
evaluation prior to the date hereof, to Capital One’s outside auditors and the audit committee of
the Board of Directors of Capital One (i) any significant deficiencies and material weaknesses in
the design or operation of internal control over financial reporting (as defined in Rule 13a-15(f)
of the Exchange Act) which are reasonably likely to adversely affect Capital One’s ability to
record, process, summarize and report financial information, and (ii) any fraud, whether or not
material, that involves management or other employees who have a significant role in Capital
One’s internal controls over financial reporting. There is no reason to believe that Capital One’s
outside auditors and its chief executive officer and chief financial officer will not be able to give
the certifications and attestations required pursuant to the rules and regulations adopted pursuant
to Section 404 of the Sarbanes-Oxley Act, without qualification, when next due.

(d) Since January 1, 2021, (i) neither Capital One nor any of its Subsidiaries,
nor, to the knowledge of Capital One, any director, officer, auditor, accountant or representative
of Capital One or any of its Subsidiaries, has received or otherwise had or obtained knowledge of
any material complaint, allegation, assertion or claim, whether written or oral, regarding the
accounting or auditing practices, procedures, methodologies or methods (including with respect
to loan loss reserves, write-downs, charge-offs and accruals) of Capital One or any of its
Subsidiaries or their respective internal accounting controls, including any material complaint,
allegation, assertion or claim that Capital One or any of its Subsidiaries has engaged in
questionable accounting or auditing practices, and (ii) no employee of or attorney representing
Capital One or any of its Subsidiaries, whether or not employed by Capital One or any of its
Subsidiaries, has reported evidence of a material violation of securities laws or banking laws,
breach of fiduciary duty or similar violation by Capital One or any of its Subsidiaries or any of
their respective officers, directors, employees or agents to the Board of Directors of Capital One
or to the knowledge of Capital One, to any director or officer of Capital One.

4.7 Broker’s Fees. With the exception of the engagement of Centerview

Partners LLC, neither Capital One nor any Capital One Subsidiary nor any of their respective
officers or directors has employed any broker, finder or financial advisor or incurred any liability
for any broker’s fees, commissions or finder’s fees in connection with the Mergers or the other
transactions contemplated by this Agreement. Capital One has disclosed to Discover as of the
date hereof the aggregate fees provided for in connection with the engagement by Capital One of
Centerview Partners LLC related to the Mergers and the other transactions contemplated
hereunder.

4.8 Absence of Certain Changes or Events.

(a) Since December 31, 2022, there has not been any effect, change, event,
circumstance, condition, occurrence or development that has had or would reasonably be

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expected to have, either individually or in the aggregate, a Material Adverse Effect on Capital
One.

(b) Since December 31, 2022, Capital One and its Subsidiaries have carried
on their respective businesses in all material respects in the ordinary course.

4.9 Legal and Regulatory Proceedings.

(a) Except as would not reasonably be expected to have, either individually or

in the aggregate, a Material Adverse Effect on Capital One, neither Capital One nor any of its
Subsidiaries is a party to any, and there are no outstanding or pending or, to the knowledge of
Capital One, threatened in writing, legal, administrative, arbitral or other proceedings, claims,
actions or governmental or regulatory investigations of any nature against Capital One or any of
its Subsidiaries or any of their current or former directors or executive officers or challenging the
validity or propriety of the transactions contemplated by this Agreement.

(b) There is no injunction, order, judgment, decree, or regulatory restriction

imposed upon Capital One, any of its Subsidiaries or the assets of Capital One or any of its
Subsidiaries (or that, upon consummation of the Mergers, would apply to the Surviving Entity
or any of its Affiliates) that would reasonably be expected to be material to the Surviving Entity
and its Subsidiaries, taken as a whole.

4.10 Taxes and Tax Returns. Each of Capital One and its Subsidiaries has duly
and timely filed (including all applicable extensions) all material Tax Returns in all jurisdictions
in which Tax Returns are required to be filed by it, and all such Tax Returns are true, correct, and
complete in all material respects. Neither Capital One nor any of its Subsidiaries is the
beneficiary of any extension of time within which to file any material Tax Return (other than
extensions to file Tax Returns obtained in the ordinary course). All material Taxes of Capital
One and its Subsidiaries (whether or not shown on any Tax Returns) that are due have been fully
and timely paid. Each of Capital One and its Subsidiaries has withheld and paid all material
Taxes required to have been withheld and paid in connection with amounts paid or owing to any
employee, creditor, stockholder, independent contractor or other third party. Neither Capital One
nor any of its Subsidiaries has received written notice of assessment or proposed assessment in
connection with any material amount of Taxes, and there are no threatened in writing or pending
disputes, claims, audits, examinations or other proceedings regarding any material Tax of Capital
One and its Subsidiaries or the assets of Capital One and its Subsidiaries that has not been
accrued in the latest audited balance sheet included in the Capital One Reports. Neither Capital
One nor any of its Subsidiaries is a party to or is bound by any Tax sharing, allocation or
indemnification agreement or arrangement (other than such an agreement or arrangement
exclusively between or among Capital One and its Subsidiaries). Neither Capital One nor any of
its Subsidiaries (A) has been a member of an affiliated group filing a consolidated federal
income Tax Return for which the statute of limitations is open (other than a group the common
parent of which was Capital One) or (B) has any liability for the Taxes of any person (other than
Capital One or any of its Subsidiaries) under Treasury Regulation Section 1.1502-6 (or any
similar provision of state, local or foreign law), as a transferee or successor, by contract or
otherwise. Neither Capital One nor any of its Subsidiaries has been, within the past two (2)
years or otherwise as part of a “plan (or series of related transactions)” within the meaning of

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Section 355(e) of the Code of which the Merger is also a part, a “distributing corporation” or a
“controlled corporation” (within the meaning of Section 355(a)(1)(A) of the Code) in a
distribution of stock intending to qualify for tax-free treatment under Section 355 of the Code.
Neither Capital One nor any of its Subsidiaries has participated in a “reportable transaction”
within the meaning of Treasury Regulation Section 1.6011-4(b)(1). At no time during the past
five (5) years has Capital One been a United States real property holding corporation within the
meaning of Section 897(c)(2) of the Code.

4.11 Employees.

(a) Except as would not reasonably be expected to have, either individually or

in the aggregate, a Material Adverse Effect on Capital One, each Capital One Benefit Plan has
been established, operated and administered in accordance with its terms and the requirements of
all applicable laws, including ERISA and the Code. For purposes of this Agreement, the term
“Capital One Benefit Plans” means all employee benefit plans (as defined in Section 3(3) of
ERISA), whether or not subject to ERISA, and all equity, bonus or incentive, deferred
compensation, retiree medical or life insurance, supplemental retirement, severance, termination
change in control, retention, employment, welfare, insurance, medical, fringe or other benefit
plans, programs, agreements, contracts, policies, arrangements or remuneration of any kind with
respect to which Capital One or any Subsidiary or any trade or business of Capital One or any of
its Subsidiaries, whether or not incorporated, all of which together with Capital One would be
deemed a “single employer” within the meaning of Section 4001 of ERISA (a “Capital One
ERISA Affiliate”), is a party or has any current or future obligation or that are maintained,
contributed to or sponsored by Capital One or any of its Subsidiaries for the benefit of any
current or former employee, officer, director or independent contractor of Capital One or any of
its Subsidiaries, excluding, in each case, any Multiemployer Plan or any plan, program or
arrangement sponsored by a Governmental Entity.

(b) Capital One has made available to Discover true and complete copies of
each material Capital One Benefit Plan and the following related documents, to the extent
applicable: (i) all summary plan descriptions, amendments, modifications or material
supplements, (ii) the most recent annual report (Form 5500) filed with the IRS, (iii) the most
recently received IRS determination letter and (iv) the most recently prepared actuarial report.

(c) The IRS has issued a favorable determination letter or opinion with
respect to each Capital One Benefit Plan that is intended to be qualified under Section 401(a) of
the Code (the “Capital One Qualified Plans”) and the related trust, which letter or opinion has
not been revoked (nor has revocation been threatened), and, to the knowledge of Capital One,
there are no existing circumstances and no events have occurred that would reasonably be
expected to adversely affect the qualified status of any Capital One Qualified Plan or the related
trust.

(d) Except as would not result in any material liability to Capital One and its
Subsidiaries, taken as a whole, with respect to each Capital One Benefit Plan that is subject to
Section 302 or Title IV of ERISA or Section 412, 430 or 4971 of the Code: (i) the minimum
funding standard under Section 302 of ERISA and Sections 412 and 430 of the Code has been
satisfied and no waiver of any minimum funding standard or any extension of any amortization

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period has been requested or granted, (ii) no such plan is in “at-risk” status for purposes of
Section 430 of the Code, (iii) the present value of accrued benefits under such Capital One
Benefit Plan, based upon the actuarial assumptions used for funding purposes in the most recent
actuarial report prepared by such Capital One Benefit Plan’s actuary with respect to such Capital
One Benefit Plan, did not, as of its latest valuation date, exceed the then current fair market value
of the assets of such Capital One Benefit Plan allocable to such accrued benefits, (iv) no
reportable event within the meaning of Section 4043(c) of ERISA for which the 30-day notice
requirement has not been waived has occurred, (v) all premiums to the PBGC have been timely
paid in full, (vi) no liability (other than for premiums to the PBGC) under Title IV of ERISA has
been or expected to be incurred by Capital One or any of its Subsidiaries, and (vii) the PBGC has
not instituted proceedings to terminate any such Capital One Benefit Plan.

(e) None of Capital One and its Subsidiaries nor any Capital One ERISA
Affiliate has, at any time during the last six (6) years, contributed to or been obligated to
contribute to a Multiemployer Plan or a Multiple Employer Plan, and none of Capital One and its
Subsidiaries nor any Capital One ERISA Affiliate has incurred any liability that has not been
satisfied to a Multiemployer Plan or Multiple Employer Plan as a result of a complete or partial
withdrawal (as those terms are defined in Part I of Subtitle E of Title IV of ERISA) from a
Multiemployer Plan or Multiple Employer Plan.

(f) Except as would not result in any material liability to Capital One or its
Subsidiaries, taken as a whole, no Capital One Benefit Plan provides for any post-employment or
post-retirement health or medical or life insurance benefits for retired, former or current
employees or beneficiaries or dependents thereof, except as required by Section 4980 of the
Code.

(g) Except as would not reasonably be expected to have, either individually or

in the aggregate, a Material Adverse Effect on Capital One, all contributions required to be made
to any Capital One Benefit Plan by applicable law or by any plan document or other contractual
undertaking, for any period through the date hereof, have been timely made or paid in full or, to
the extent not required to be made or paid on or before the date hereof, have been fully reflected
on the books and records of Capital One.

(h) There are no pending or threatened claims (other than claims for benefits
in the ordinary course), lawsuits or arbitrations which have been asserted or instituted, and, to
Capital One’s knowledge, no set of circumstances exists which may reasonably give rise to a
claim or lawsuit, against the Capital One Benefit Plans, any fiduciaries thereof with respect to
their duties to the Capital One Benefit Plans or the assets of any of the trusts under any of the
Capital One Benefit Plans that would reasonably be expected to result in any liability of Capital
One or any of its Subsidiaries in an amount that would be material to Capital One and its
Subsidiaries, taken as a whole.

(i) Except as would not reasonably be expected to have, either individually or

in the aggregate, a Material Adverse Effect on Capital One, none of Capital One and its
Subsidiaries nor any Capital One ERISA Affiliate has engaged in any “prohibited transaction”
(as defined in Section 4975 of the Code or Section 406 of ERISA) which would reasonably be
expected to subject any of the Capital One Benefit Plans or their related trusts, Capital One, any

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of its Subsidiaries or any Capital One ERISA Affiliate to any material Tax or penalty imposed
under Section 4975 of the Code or Section 502 of ERISA.

(j) Neither the execution and delivery of this Agreement nor the
consummation of the transactions contemplated hereby will (either alone or in conjunction with
any other event) result in, the acceleration of vesting, exercisability, funding or delivery of, or
increase in the amount or value of, any payment, right or other benefit to any employee, officer,
director or other service provider of Capital One or any of its Subsidiaries, or result in any
limitation on the right of Capital One or any of its Subsidiaries to amend, merge, terminate or
receive a reversion of assets from any Capital One Benefit Plan or related trust on or after the
Effective Time. Without limiting the generality of the foregoing, no amount paid or payable
(whether in cash, in property, or in the form of benefits) by Capital One or any of its Subsidiaries
in connection with the transactions contemplated hereby (either solely as a result thereof or as a
result of such transactions in conjunction with any other event) will be an “excess parachute
payment” within the meaning of Section 280G of the Code.

(k) No Capital One Benefit Plan provides for the gross-up or reimbursement
of Taxes under Section 409A or 4999 of the Code, or otherwise.

(l) Except as would not reasonably be expected to have, either individually or

in the aggregate, a Material Adverse Effect on Capital One, there are no pending or, to Capital
One’s knowledge, threatened labor grievances or unfair labor practice claims or charges against
Capital One or any of its Subsidiaries, or any strikes or other labor disputes against Capital One
or any of its Subsidiaries. Neither Capital One nor any of its Subsidiaries is party to or bound by
any collective bargaining or similar agreement with any labor organization, or work rules or
practices agreed to with any labor organization or employee association applicable to employees
of Capital One or any of its Subsidiaries and, except as would not reasonably be expected to
have, either individually or in the aggregate, a Material Adverse Effect on Capital One, there are
no pending or, to the knowledge of Capital One, threatened organizing efforts by any union or
other group seeking to represent any employees of Capital One or any of its Subsidiaries.

(m) Except as would not reasonably be expected to have, either individually or

in the aggregate, a Material Adverse Effect on Capital One, each Capital One Benefit Plan that is
subject to the laws of a jurisdiction other than the United States (whether or not U.S. law also
applies) (i) has been maintained in accordance with all applicable requirements, (ii) if intended to
qualify for special tax treatment, meets all requirements for such treatment and (iii) if intended to
be funded and/or book-reserved, is fully funded and/or book reserved, as appropriate, based upon
reasonable actuarial assumptions.

4.12 SEC Reports. Capital One has previously made available to Discover an
accurate and complete copy of each (a) final registration statement, prospectus, report, schedule
and definitive proxy statement filed with or furnished to the SEC since December 31, 2020 by
Capital One pursuant to the Securities Act or the Exchange Act (the “Capital One Reports”) and
(b) communication mailed by Capital One to its stockholders since December 31, 2020 and prior
to the date hereof, and no such Capital One Report or communication, as of the date thereof (and,
in the case of registration statements and proxy statements, on the dates of effectiveness and the
dates of the relevant meetings, respectively), contained any untrue statement of a material fact or

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omitted to state any material fact required to be stated therein or necessary in order to make the
statements therein, in light of the circumstances in which they were made, not misleading, except
that information filed or furnished as of a later date (but before the date of this Agreement) shall
be deemed to modify information as of an earlier date. Since December 31, 2020, as of their
respective dates, all Capital One Reports filed or furnished under the Securities Act and the
Exchange Act complied in all material respects with the published rules and regulations of the
SEC with respect thereto. No executive officer of Capital One has failed in any respect to make
the certifications required of him or her under Section 302 or 906 of the Sarbanes-Oxley Act.

4.13 Compliance with Applicable Law.

(a) Capital One and each of its Subsidiaries hold, and have at all times since
December 31, 2020, held, all licenses, registrations, franchises, certificates, permits charters and
authorizations necessary for the lawful conduct of their respective businesses and ownership of
their respective properties, rights and assets under and pursuant to each (and have paid all fees
and assessments due and payable in connection therewith), except where neither the cost of
failure to hold nor the cost of obtaining and holding such license, registration, franchise,
certificate, permit, charter or authorization (nor the failure to pay any fees or assessments)
would, either individually or in the aggregate, reasonably be expected to have a Material Adverse
Effect on Capital One, and to the knowledge of Capital One, no suspension or cancellation of
any such necessary license, registration, franchise, certificate, permit, charter or authorization is
threatened.

(b) Except as would not, either individually or in the aggregate, reasonably be

expected to have a Material Adverse Effect on Capital One, Capital One and each of its
Subsidiaries have complied with and are not in default or violation under any law, statute, order,
rule, regulation, policy and/or guideline of any Governmental Entity applicable to Capital One or
any of its Subsidiaries, including all laws related to data protection or privacy (including Data
Protection Laws), the USA PATRIOT Act, the Bank Secrecy Act, the Equal Credit Opportunity
Act and Regulation B, the Fair Housing Act, the Community Reinvestment Act, the Fair Credit
Reporting Act, the Truth in Lending Act and Regulation Z, the Home Mortgage Disclosure Act,
the Fair Debt Collection Practices Act, the Electronic Fund Transfer Act, the Dodd-Frank Wall
Street Reform and Consumer Protection Act, any regulations promulgated by the Consumer
Financial Protection Bureau, the Interagency Policy Statement on Retail Sales of Nondeposit
Investment Products, the SAFE Mortgage Licensing Act of 2008, the Real Estate Settlement
Procedures Act and Regulation X, Title V of the Gramm-Leach-Bliley Act, any and all sanctions
or regulations enforced by the Office of Foreign Assets Control of the United States Department
of Treasury and any other law, policy or guideline relating to bank secrecy, discriminatory
lending, financing or leasing practices, consumer protection, money laundering prevention,
foreign assets control, U.S. sanctions laws and regulations, Sections 23A and 23B of the Federal
Reserve Act, the Sarbanes-Oxley Act, and all agency requirements relating to the origination,
sale and servicing of mortgage and consumer loans.

(c) Capital One Bank has a Community Reinvestment Act rating of

“satisfactory” or better.

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 (d) Capital One maintains a written information privacy and security program
that includes measures reasonably designed to protect the privacy, confidentiality and security of
all Personal Data processed or otherwise handled by or on behalf of Capital One against any
Security Breach. Except as would not reasonably be expected to have, either individually or in
the aggregate, a Material Adverse Effect on Capital One, Capital One and its Subsidiaries have
taken commercially reasonable measures, consistent with general industry practices, designed to
ensure the confidentiality, privacy and security of Personal Data processed or otherwise handled
by or on behalf of Capital One. To the knowledge of Capital One, Capital One has not
experienced any Security Breach that would, individually or in the aggregate, reasonably be
expected to have a Material Adverse Effect on Capital One. To the knowledge of Capital One,
there are no data security or other technological vulnerabilities with respect to its information
technology systems or networks that, individually or in the aggregate, would reasonably be
expected to have a Material Adverse Effect on Capital One. Except as would not reasonably be
expected to have, either individually or in the aggregate, a Material Adverse Effect on Capital
One, Capital One and its Subsidiaries are in compliance with all of its and their privacy policies
relating to Personal Data.

(e) Without limitation, none of Capital One or any of its Subsidiaries or to the
knowledge of Capital One, any director, officer, employee, agent or other person acting on
behalf of Capital One or any of its Subsidiaries has, directly or indirectly, (i) used any funds of
Capital One or any of its Subsidiaries for unlawful contributions, unlawful gifts, unlawful
entertainment or other expenses relating to political activity, (ii) made any unlawful payment to
foreign or domestic governmental officials or employees or to foreign or domestic political
parties or campaigns from funds of Capital One or any of its Subsidiaries, (iii) violated any
provision that would result in the violation of the Foreign Corrupt Practices Act of 1977, as
amended, or any similar law, (iv) established or maintained any unlawful fund of monies or other
assets of Capital One or any of its Subsidiaries, (v) made any fraudulent entry on the books or
records of Capital One or any of its Subsidiaries, (vi) made any unlawful bribe, unlawful rebate,
unlawful payoff, unlawful influence payment, unlawful kickback or other unlawful payment to
any person, private or public, regardless of form, whether in money, property or services, to
obtain favorable treatment in securing business, to obtain special concessions for Capital One or
any of its Subsidiaries, to pay for favorable treatment for business secured or to pay for special
concessions already obtained for Capital One or any of its Subsidiaries or (vii) is currently
subject to any United States sanctions administered by the Office of Foreign Assets Control of
the United States Treasury Department, except in each case as would not, either individually or
in the aggregate, reasonably be expected to have a Material Adverse Effect on Capital One.

(f) As of the date hereof, Capital One and Capital One Bank each meet the
applicable published criteria to be “well-capitalized” (as such term is defined in the relevant
regulation of the applicable institution’s primary federal banking regulator).

(g) Except as would not, either individually or in the aggregate, reasonably be

expected to have a Material Adverse Effect on Capital One, (i) Capital One and each of its
Subsidiaries have properly administered all accounts for which it acts as a fiduciary, including
accounts for which it serves as a trustee, agent, custodian, personal representative, guardian,
conservator or investment advisor, in accordance with the terms of the governing documents and
applicable state, federal and foreign law; and (ii) none of Capital One, any of its Subsidiaries, or

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any of its or its Subsidiaries’ directors, officers or employees, has committed any breach of trust
or fiduciary duty with respect to any such fiduciary account, and the accountings for each such
fiduciary account are true and correct and accurately reflect the assets and results of such
fiduciary account.

4.14 Certain Contracts.

(a) Except as set forth in Section 4.14(a) of the Capital One Disclosure
Schedule or as filed with any Capital One Reports, as of the date hereof, neither Capital One nor
any of its Subsidiaries is a party to or bound by any contract, arrangement, commitment or
understanding (whether written or oral), but excluding any Capital One Benefit Plan and any
contract, arrangement, commitment or understanding solely among Capital One and any wholly
owned Subsidiaries of Capital One or solely among wholly owned Subsidiaries of Capital One:

(i) which is a “material contract” (as such term is defined in Item

601(b)(10) of Regulation S-K of the SEC);

(ii) which contains a provision that materially restricts the conduct of

any line of business by Capital One or any of its Subsidiaries or upon consummation of
the Mergers will materially restrict the ability of the Surviving Entity or any of its
Affiliates to engage in any line of business or in any geographic region (including any
exclusivity or exclusive dealing provisions with such an effect);

(iii) with or to a labor union or guild with respect to any employees of

Capital One or any its Subsidiaries (including any collective bargaining agreement);

(iv) any of the benefits of or obligations under which will arise or be

increased or accelerated by the occurrence of the execution and delivery of this
Agreement, receipt of the Requisite Capital One Vote or the announcement or
consummation of any of the transactions contemplated by this Agreement, or under
which a right of cancellation or termination will arise as a result thereof, or the value of
any of the benefits of which will be calculated on the basis of any of the transactions
contemplated by this Agreement, where such increase or acceleration of benefits or
obligations, right of cancellation or termination, or change in calculation of value of
benefits would, either individually or in the aggregate, reasonably be expected to have a
Material Adverse Effect on Capital One;

(v) (A) that relates to the incurrence of indebtedness by Capital One or

any of its Subsidiaries, including any sale and leaseback transactions, securitizations, off-
balance sheet financing arrangements, capitalized leases and other similar financing
arrangements (other than deposit liabilities, trade payables, federal funds purchased,
advances and loans from the Federal Home Loan Bank and securities sold under
agreements to repurchase in each case incurred in the ordinary course of business
consistent with past practice), or (B) that provides for the guarantee, support,
indemnification, assumption or endorsement by Capital One or any of its Subsidiaries of,
or any similar commitment by Capital One or any of its Subsidiaries with respect to, the

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 obligations, liabilities or indebtedness of any other person, in the case of each of clauses
(A) and (B), in the principal amount of $40,000,000 or more;

(vi) that grants any right of first refusal, right of first offer or similar
right with respect to any material assets, rights or properties of Capital One or its
Subsidiaries;

(vii) that is a settlement, consent or similar agreement and contains any

material continuing obligations of Capital One or any of its Subsidiaries; or

(viii) that relates to the acquisition or disposition of any person, business

or asset and under which Capital One or its Subsidiaries have or may have a material
obligation or liability.

Each contract, arrangement, commitment or understanding of the type described in this

Section 4.14(a), whether or not set forth in the Capital One Disclosure Schedule, is referred to
herein as a “Capital One Contract.” Capital One has made available to Discover true, correct
and complete copies of each Capital One Contract in effect as of the date hereof.

(b) (i) Each Capital One Contract is valid and binding on Capital One or one
of its Subsidiaries, as applicable, and in full force and effect, except as, either individually or in
the aggregate, would not reasonably be expected to have a Material Adverse Effect on Capital
One, (ii) Capital One and each of its Subsidiaries have in all material respects complied with and
performed all obligations required to be complied with or performed by any of them to date
under each Capital One Contract, except where such noncompliance or nonperformance, either
individually or in the aggregate, would not reasonably be expected to have a Material Adverse
Effect on Capital One, (iii) to the knowledge of Capital One, each third-party counterparty to
each Capital One Contract has in all material respects complied with and performed all
obligations required to be complied with and performed by it to date under such Capital One
Contract, except where such noncompliance or nonperformance, either individually or in the
aggregate, would not reasonably be expected to have a Material Adverse Effect on Capital One,
(iv) neither Capital One nor any of its Subsidiaries has knowledge of, or has received notice of,
any violation of any Capital One Contract by any of the other parties thereto which would
reasonably be expected to have, either individually or in the aggregate, a Material Adverse Effect
on Capital One and (v) no event or condition exists which constitutes or, after notice or lapse of
time or both, will constitute, a material breach or default on the part of Capital One or any of its
Subsidiaries or, to the knowledge of Capital One, any other party thereto, of or under any such
Capital One Contract, except where such breach or default, either individually or in the
aggregate, would not reasonably be expected to have a Material Adverse Effect on Capital One.

4.15 Agreements with Regulatory Agencies. Subject to Section 9.14, neither

Capital One nor any of its Subsidiaries is subject to any cease-and-desist or other order or
enforcement action issued by, or is a party to any written agreement, consent agreement or
memorandum of understanding with, or is a party to any commitment letter or similar
undertaking to, or is subject to any order or directive by, or has been ordered to pay any civil
money penalty by, or has been since January 1, 2021, a recipient of any supervisory letter from,
or since January 1, 2021, has adopted any policies, procedures or board resolutions at the request

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or suggestion of, any Regulatory Agency or other Governmental Entity that currently restricts in
any material respect or would reasonably be expected to restrict in any material respect the
conduct of its business or that in any material manner relates to its capital adequacy, its ability to
pay dividends, its credit or risk management policies, its management or its business (each,
whether or not set forth in the Capital One Disclosure Schedule, a “Capital One Regulatory
Agreement”), nor has Capital One or any of its Subsidiaries been advised since January 1, 2021,
by any Regulatory Agency or other Governmental Entity that it is considering issuing, initiating,
ordering or requesting any such Capital One Regulatory Agreement.

4.16 Risk Management Instruments. Except as would not reasonably be

expected to have, either individually or in the aggregate, a Material Adverse Effect on Capital
One, all interest rate swaps, caps, floors, option agreements, futures and forward contracts and
other similar derivative transactions and risk management arrangements, whether entered into for
the account of Capital One or any of its Subsidiaries or for the account of a customer of Capital
One or one of its Subsidiaries, were entered into in the ordinary course of business and in
accordance with applicable rules, regulations and policies of any Regulatory Agency and with
counterparties reasonably believed to be financially responsible at the time and are legal, valid
and binding obligations of Capital One or one of its Subsidiaries enforceable in accordance with
their terms (except as may be limited by the Enforceability Exceptions). Capital One and each of
its Subsidiaries have duly performed in all material respects all of their respective material
obligations thereunder to the extent that such obligations to perform have accrued, and, to the
knowledge of Capital One, there are no material breaches, violations or defaults or allegations or
assertions of such by any party thereunder.

4.17 Environmental Matters. Except as would not reasonably be expected to

have, either individually or in the aggregate, a Material Adverse Effect on Capital One, Capital
One and its Subsidiaries are in compliance, and since December 31, 2022 have complied, with
all Environmental Laws. There are no legal, administrative, arbitral or other proceedings, claims
or actions or, to the knowledge of Capital One, any private environmental investigations or
remediation activities or governmental investigations of any nature seeking to impose, or that
could reasonably be expected to result in the imposition, on Capital One or any of its
Subsidiaries of any liability or obligation arising under any Environmental Law pending or
threatened against Capital One, which liability or obligation would reasonably be expected to
have, either individually or in the aggregate, a Material Adverse Effect on Capital One. To the
knowledge of Capital One, there is no reasonable basis for any such proceeding, claim, action or
governmental investigation that would impose any liability or obligation that would reasonably
be expected to have, either individually or in the aggregate, a Material Adverse Effect on Capital
One. Capital One is not subject to any agreement, order, judgment, decree, letter agreement or
memorandum of agreement by or with any court, Governmental Entity, Regulatory Agency or
other third party imposing any liability or obligation with respect to the foregoing that would
reasonably be expected to have, either individually or in the aggregate, a Material Adverse Effect
on Capital One.

4.18 Investment Securities and Commodities. Each of Capital One and its
Subsidiaries has good title to all securities and commodities owned by it (except those sold under
repurchase agreements) which are material to Capital One’s business on a consolidated basis,
free and clear of any Lien, except to the extent such securities or commodities are pledged in the

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ordinary course of business to secure obligations of Capital One or its Subsidiaries. Such
securities and commodities are valued on the books of Capital One in accordance with GAAP in
all material respects.

4.19 Real Property. Capital One or a Capital One Subsidiary (a) has good and
marketable title to all the real property reflected in the latest audited balance sheet included in the
Capital One Reports as being owned by Capital One or a Capital One Subsidiary or acquired
after the date thereof which are material to Capital One’s business on a consolidated basis
(except properties sold or otherwise disposed of since the date thereof in the ordinary course of
business) (the “Capital One Owned Properties”), free and clear of all material Liens, except for
Permitted Encumbrances, and (b) is the lessee of all leasehold estates reflected in the latest
audited financial statements included in such Capital One Reports or acquired after the date
thereof which are material to Capital One’s business on a consolidated basis (except for leases
that have expired by their terms since the date thereof) (such leasehold estates, collectively with
the Capital One Owned Properties, the “Capital One Real Property”), free and clear of all
material Liens, except for Permitted Encumbrances, and is in possession of the properties
purported to be leased thereunder, and to the knowledge of Capital One, each such lease is valid
without material default thereunder by the lessee or, to the knowledge of Capital One, the lessor.
There are no pending or, to the knowledge of Capital One, threatened condemnation proceedings
against the Capital One Real Property.

4.20 Intellectual Property. Capital One and each of its Subsidiaries owns (free
and clear of any material Liens), or is licensed to use, all Intellectual Property necessary for the
conduct of its business as currently conducted. Except as would not reasonably be expected to
have, either individually or in the aggregate, a Material Adverse Effect on Capital One: (a) (i) to
the knowledge of Capital One, the conduct by Capital One and its Subsidiaries of their respective
businesses does not infringe, misappropriate or otherwise violate the rights of any person and (ii)
no person has asserted in writing to Capital One that Capital One or any of its Subsidiaries has
infringed, misappropriated or otherwise violated the Intellectual Property rights of such person,
(b) to the knowledge of Capital One, no person is challenging, infringing on, misappropriating or
otherwise violating any right of Capital One or any of its Subsidiaries with respect to any
Intellectual Property owned by Capital One or its Subsidiaries, and (c) neither Capital One nor
any Capital One Subsidiary has received any written notice of any pending claim challenging the
ownership, validity or enforceability of any Intellectual Property owned by Capital One or any
Capital One Subsidiary, and Capital One and its Subsidiaries have taken commercially
reasonable actions to avoid the abandonment, cancellation or unenforceability of all Intellectual
Property owned by Capital One and its Subsidiaries.

4.21 Related Party Transactions. As of the date hereof, except as set forth in
any Capital One Reports, there are no transactions or series of related transactions, agreements,
arrangements or understandings, nor are there any currently proposed transactions or series of
related transactions, between Capital One or any of its Subsidiaries, on the one hand, and any
current or former director or “executive officer” (as defined in Rule 3b-7 under the Exchange
Act) of Capital One or any of its Subsidiaries or any person who beneficially owns (as defined in
Rules 13d-3 and 13d-5 of the Exchange Act) five percent (5%) or more of the outstanding
Capital One Common Stock (or any of such person’s immediate family members or Affiliates)
(other than Subsidiaries of Capital One), on the other hand, of the type required to be reported in

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any Capital One Report pursuant to Item 404 of Regulation S-K promulgated under the
Exchange Act.

4.22 State Takeover Laws. The Board of Directors of each of Capital One and
Merger Sub has approved this Agreement and the transactions contemplated hereby and has
taken all such other necessary actions as required to render inapplicable to such agreements and
transactions the provisions of any potentially applicable Takeover Statutes.

4.23 Reorganization. Capital One has not taken any action and is not aware of
any fact or circumstance that could reasonably be expected to prevent the Mergers, taken
together, from qualifying as a “reorganization” within the meaning of Section 368(a) of the
Code.

4.24 Opinion. Prior to the execution of this Agreement, Capital One has
received an opinion (which if initially rendered orally, has been or will be confirmed by written
opinion of the same date) from Centerview Partners LLC, to the effect that as of the date thereof
and based upon and subject to the matters set forth therein, the Exchange Ratio provided for
pursuant to this Agreement is fair, from a financial point of view, to Capital One. Such opinion
has not been amended or rescinded as of the date of this Agreement.

4.25 Capital One Information. The information relating to Capital One and its
Subsidiaries or that is provided by Capital One or its Subsidiaries or their respective
representatives for inclusion in the Joint Proxy Statement and the S-4, or in any other document
filed with any Regulatory Agency or Governmental Entity in connection herewith, will not
contain any untrue statement of a material fact or omit to state a material fact necessary to make
the statements therein, in light of the circumstances in which they are made, not misleading. The
Joint Proxy Statement (to the extent that portions thereof relate only to Capital One or any of its
Subsidiaries) will comply in all material respects with the provisions of the Exchange Act and
the rules and regulations thereunder. The S-4 (to the extent that portions thereof relate only to
Capital One or any of its Subsidiaries) will comply in all material respects with the provisions of
the Securities Act and the rules and regulations thereunder.

4.26 Loan Portfolio.

(a) As of the date hereof, except as set forth in Section 4.26(a) of the Capital
One Disclosure Schedule, neither Capital One nor any of its Subsidiaries is a party to any written
or oral Loan in which Capital One or any Subsidiary of Capital One is a creditor that, as of
September 30, 2023, had an outstanding balance of $100,000,000 or more and under the terms of
which the obligor was, as of September 30, 2023, over ninety (90) days or more delinquent in
payment of principal or interest. Set forth in Section 4.26(a) of the Capital One Disclosure
Schedule is a true, correct and complete list of (A) all of the Loans of Capital One and its
Subsidiaries that, as of September 30, 2023, had an outstanding balance of $100,000,000 or more
and were classified by Capital One as “Other Loans Specially Mentioned,” “Special Mention,”
“Substandard,” “Doubtful,” “Loss,” “Classified,” “Criticized,” “Credit Risk Assets,” “Concerned
Loans,” “Watch List” or words of similar import, together with the principal amount of and
accrued and unpaid interest on each such Loan and the identity of the borrower thereunder,
together with the aggregate principal amount of and accrued and unpaid interest on such Loans,

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by category of Loan (e.g., commercial, consumer, etc.), together with the aggregate principal
amount of such Loans by category and (B) each asset of Capital One or any of its Subsidiaries
that, as of September 30, 2023, is classified as “Other Real Estate Owned” and the book value
thereof.

(b) Except as would not reasonably be expected to have, either individually or

in the aggregate, a Material Adverse Effect on Capital One, each Loan of Capital One or any of
its Subsidiaries (i) is evidenced by notes, agreements or other evidences of indebtedness that are
true, genuine and what they purport to be, (ii) to the extent carried on the books and records of
Capital One and its Subsidiaries as secured Loans, has been secured by valid charges, mortgages,
pledges, security interests, restrictions, claims, liens or encumbrances, as applicable, which have
been perfected and (iii) is the legal, valid and binding obligation of the obligor named therein,
enforceable in accordance with its terms, subject to the Enforceability Exceptions.

(c) Except as would not reasonably be expected to have, either individually or

in the aggregate, a Material Adverse Effect on Capital One, each outstanding Loan of Capital
One or any of its Subsidiaries (including Loans held for resale to investors) was solicited and
originated, and is and has been administered and, where applicable, serviced, and the relevant
Loan files are being maintained, in all material respects in accordance with the relevant notes or
other credit or security documents, the written underwriting standards of Capital One and its
Subsidiaries (and, in the case of Loans held for resale to investors, the underwriting standards, if
any, of the applicable investors) and with all applicable federal, state and local laws, regulations
and rules.

4.27 Credit Card Accounts and Receivables. Except as would not reasonably
be expected to have, either individually or in the aggregate, a Material Adverse Effect on Capital
One, (a) the accounts and Receivables related to the credit cards issued by Capital One Bank and
any portfolio of credit card accounts and Receivables acquired by the Capital One Bank
(collectively, the “Capital One Credit Card Accounts and Receivables”) (other than those
acquired from a third party) have been originated, created, maintained and serviced in
compliance with all applicable laws, rules and regulations and Capital One’s policies and
procedures, and are being maintained in accordance with the Account Agreements and the
Capital One’s written underwriting standards, (b) in the case of any Capital One Credit Card
Accounts and Receivables acquired from a third party, to the knowledge of Capital One, such
accounts and Receivables have been originated, created, maintained and serviced in compliance
in all material respects with all applicable laws, rules and regulations and the originator’s
policies and procedures, (c) the interest rates, fees and charges in connection with the Capital
One Credit Card Accounts and Receivables comply with all applicable laws, rules and
regulations and the applicable Account Agreements, (d) all disclosures made in connection with
the Capital One Credit Card Accounts and Receivables complied with all applicable laws, rules
and regulations as of the time made and (e) the Account Agreements, as they relate to the Capital
One Credit Card Accounts and Receivables, are enforceable in accordance with their terms
(except as may be limited by the Enforceability Exceptions).

4.28 Insurance. Except as would not reasonably be expected to have, either

individually or in the aggregate, a Material Adverse Effect on Capital One, (a) Capital One and
its Subsidiaries are insured with reputable insurers against such risks and in such amounts as the

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management of Capital One reasonably has determined to be prudent and consistent with
industry practice, and Capital One and its Subsidiaries are in compliance in all material respects
with their insurance policies and are not in default under any of the terms thereof, (b) each such
policy is outstanding and in full force and effect and, except for policies insuring against
potential liabilities of officers, directors and employees of Capital One and its Subsidiaries,
Capital One or the relevant Subsidiary thereof is the sole beneficiary of such policies, (c) all
premiums and other payments due under any such policy have been paid, and all claims
thereunder have been filed in due and timely fashion, (d) there is no claim for coverage by
Capital One or any of its Subsidiaries pending under any insurance policy as to which coverage
has been questioned, denied or disputed by the underwriters of such insurance policy and (e)
neither Capital One nor any of its Subsidiaries has received notice of any threatened termination
of, material premium increase with respect to, or material alteration of coverage under, any
insurance policies.

4.29 IT Systems.

(a) Except as would not reasonably be expected to have, either individually or

in the aggregate, a Material Adverse Effect on Capital One, to the knowledge of Capital One, no
third party has gained unauthorized access to or misused any Personal Data or any IT Systems
used in the operation of their respective businesses (collectively, “Capital One Software and IT
Systems”), in each case in a manner that has resulted or is reasonably likely to result in either
(i) liability, cost or disruption to the Networks or (ii) a duty to notify any person. Except as
would not reasonably be expected to have, either individually or in the aggregate, a Material
Adverse Effect on Capital One, Capital One and its Subsidiaries have taken commercially
reasonable steps and implemented commercially reasonable safeguards, consistent with accepted
industry practices, Data Protection Laws and all contracts to the extent such contracts relate to
the processing of Personal Data, that are designed to protect their products and services and the
Capital One Software and IT Systems from unauthorized access and free from any Malicious
Code. Except as would not reasonably be expected to have, either individually or in the
aggregate, a Material Adverse Effect on Capital One, the Capital One IT Systems are (i) free
from Malicious Code and (ii) have not, since December 31, 2020, experienced any failure or
malfunction.

(b) Except as would not reasonably be expected to have, either individually or

in the aggregate, a Material Adverse Effect on Capital One, the Capital One Software and IT
Systems have not, since December 31, 2020, suffered an unscheduled outage or other failure.

4.30 No Investment Advisor Subsidiary. Neither Capital One nor any Capital
One Subsidiary serves in a capacity described in Section 9(a) or 9(b) of the Investment Company
Act of 1940, as amended, nor acts as an “investment adviser” required to register as such under
the Investment Advisers Act of 1940, as amended.

4.31 Broker-Dealer Subsidiary.

(a) Capital One has certain Subsidiaries that are broker-dealers (each, a
“Capital One Broker-Dealer Subsidiary”). Except as would not reasonably be expected to have,
either individually or in the aggregate, a Material Adverse Effect on Capital One: (i) each

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Capital One Broker-Dealer Subsidiary is duly registered under the Exchange Act as a broker-
dealer with the SEC and is in compliance with the applicable provisions of the Exchange Act,
including the net capital requirements and customer protection requirements thereof; (ii) each
Capital One Broker-Dealer Subsidiary is a member in good standing with FINRA and all other
required SROs and in compliance with all applicable rules and regulations of FINRA and any
such SRO of which it is a member or which otherwise has authority over it; (iii) each Capital
One Broker-Dealer Subsidiary (and each registered representative thereof) is duly registered,
licensed or qualified as a broker-dealer or registered representative, as applicable, under, and in
compliance with, the applicable laws of all jurisdictions in which it is required to be so registered
and each such registration, license or qualification is in full force and effect and in good
standing; and (iv) there is no action, suit, proceeding or investigation pending or, to the
knowledge of Capital One, threatened that would reasonably be likely to lead to the revocation,
amendment, failure to renew, limitation, suspension or restriction of any such registrations,
licenses and qualifications.

(b) Except as would not reasonably be expected to have, either individually or

in the aggregate, a Material Adverse Effect on Capital One, (i) none of the Capital One Broker-
Dealer Subsidiaries nor any “associated person” thereof (A) is or has been ineligible to serve as a
broker-dealer or an associated person of a broker-dealer under Section 15(b) of the Exchange
Act, (B) is subject to a “statutory disqualification” as defined in Section 3(a)(39) of the Exchange
Act or (C) is subject to a disqualification that would be a basis for censure, limitations on the
activities, functions or operations of, or suspension or revocation of the registration of any
Capital One Broker-Dealer Subsidiary as broker-dealer, municipal securities dealer, government
securities broker or government securities dealer under Section 15, Section 15B or Section 15C
of the Exchange Act, and (ii) there is no action, suit, proceeding or investigation pending or, to
the knowledge of Capital One, threatened, that is reasonably likely to result in any such person
being deemed ineligible as described in clause (A), subject to a “statutory disqualification” as
described in clause (B) or subject to a disqualification as described in clause (C).

4.32 No Other Representations or Warranties.

(a) Except for the representations and warranties made by Capital One and
Merger Sub in this Article IV, neither Capital One nor Merger Sub any other person makes any
express or implied representation or warranty with respect to Capital One, its Subsidiaries,
Merger Sub or their respective businesses, operations, assets, liabilities, conditions (financial or
otherwise) or prospects, and Capital One and Merger Sub hereby disclaim any such other
representations or warranties. In particular, without limiting the foregoing disclaimer, neither
Capital One nor Merger Sub nor any other person makes or has made any representation or
warranty to Discover or any of its Affiliates or representatives with respect to (i) any financial
projection, forecast, estimate, budget or prospective information relating to Capital One, Merger
Sub, any of their respective Subsidiaries or their respective businesses or (ii) except for the
representations and warranties made by Capital One and Merger Sub in this Article IV, any oral
or written information presented to Discover or any of its Affiliates or representatives in the
course of their due diligence investigation of Capital One, the negotiation of this Agreement or in
the course of the transactions contemplated hereby.

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 (b) Capital One and Merger Sub acknowledge and agree that neither Discover
nor any other person has made or is making any express or implied representation or warranty
other than those contained in Article III.

ARTICLE V

COVENANTS RELATING TO CONDUCT OF BUSINESS

5.1 Conduct of Business Prior to the Effective Time. During the period from
the date of this Agreement to the Effective Time or earlier termination of this Agreement, except
as expressly contemplated or permitted by this Agreement (including as set forth in the Discover
Disclosure Schedule or the Capital One Disclosure Schedule), required by law or as consented to
in writing by the other party (such consent not to be unreasonably withheld, conditioned or
delayed), Discover and Capital One shall, and shall cause each of its Subsidiaries to, (a) use
reasonable best efforts to conduct its business in the ordinary course in all material respects and
(b) use reasonable best efforts to maintain and preserve intact its business organization,
employees and advantageous business relationships.

5.2 Discover Forbearances. During the period from the date of this
Agreement to the Effective Time or earlier termination of this Agreement, except as set forth in
the Discover Disclosure Schedule, as expressly contemplated or permitted by this Agreement or
as required by law, Discover shall not, and shall not permit any of its Subsidiaries to, without the
prior written consent of Capital One (such consent not to be unreasonably withheld, conditioned
or delayed):

(a) other than (i) federal funds and Federal Home Loan Bank borrowings, (ii)
borrowings pursuant to the Bank Term Funding Program or Discount Window, (iii) entry into
repurchase agreements, (iv) deposits (including brokered deposits), (v) purchases of federal
funds, (vi) asset securitizations, (vii) sales of certificates of deposit, (viii) capitalized leases and
(ix) issuances of letters of credit, in each case, in the ordinary course of business consistent with
past practice, incur any indebtedness for borrowed money (other than indebtedness of Discover
or any of its wholly-owned Subsidiaries to Discover or any of its wholly-owned Subsidiaries), or
assume, guarantee, endorse or otherwise as an accommodation become responsible for the
obligations of any other individual, corporation or other entity;

(b) (i) adjust, split, combine or reclassify any capital stock;

(ii) make, declare, pay or set a record date for any dividend, or any
other distribution on, or directly or indirectly redeem, purchase or otherwise acquire, any
shares of its capital stock or other equity or voting securities or any securities or
obligations convertible (whether currently convertible or convertible only after the
passage of time or the occurrence of certain events) or exchangeable into or exercisable
for any shares of its capital stock or other equity or voting securities, including any
Discover Securities or Discover Subsidiary Securities, except, in each case, (A) regular
quarterly cash dividends by Discover at a rate not in excess of $0.700 per share of
Discover Common Stock, (B) dividends paid by any of the Subsidiaries of Discover to
Discover or any of its wholly-owned Subsidiaries, (C) dividends provided for and paid on

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 Discover Preferred Stock in accordance with the terms of such Discover Preferred Stock
or (D) the acceptance of shares of Discover Common Stock for withholding Taxes
incurred in connection with the vesting or settlement of Discover RSU Awards or
Discover PSU Awards, in each case, in accordance with past practice and the terms of the
applicable award agreements;

(iii) grant any stock options, stock-appreciation rights, restricted stock

units, performance stock units, phantom stock units, restricted shares or other equity-
based awards or interests, or grant any person any right to acquire any Discover
Securities or Discover Subsidiary Securities; or

(iv) issue, sell, transfer, encumber or otherwise permit to become

outstanding any shares of capital stock or voting securities or equity interests or securities
convertible (whether currently convertible or convertible only after the passage of time of
the occurrence of certain events) or exchangeable into, or exercisable for, any shares of
its capital stock or other equity or voting securities, including any Discover Securities or
Discover Subsidiary Securities, or any options, warrants, or other rights of any kind to
acquire any shares of capital stock or other equity or voting securities, including any
Discover Securities or Discover Subsidiary Securities, except pursuant to the settlement
of Discover RSU Awards or Discover PSU Awards, in each case, in accordance with the
terms of the applicable award agreements;

(c) sell, transfer, mortgage, encumber or otherwise dispose of any of its

material properties or assets (including any material Intellectual Property) to any individual,
corporation or other entity other than a wholly-owned Subsidiary, or cancel, release or assign any
indebtedness to any such person or any claims held by any such person, in each case other than
(i) in the ordinary course of business, (ii) cancellation, abandonment, lapse or expiry in the
ordinary course of business of any Intellectual Property owned by Discover or its Subsidiaries
that is not material to any of their businesses and (iii) grants of non-exclusive licenses to
Intellectual Property in the ordinary course of business;

(d) except for foreclosure or acquisitions of control in a fiduciary or similar

capacity or in satisfaction of debts previously contracted in good faith in the ordinary course of
business, make any material investment in or acquisition of (whether by purchase of stock or
securities, contributions to capital, property transfers, merger or consolidation, or formation of a
joint venture or otherwise) any other person or the property or assets of any other person, in each
case other than a wholly-owned Subsidiary of Discover;

(e) (i) terminate, materially amend, or waive any material provision of, any
Discover Contract, or make any change in any instrument or agreement governing the terms of
any of its securities, other than in the ordinary course of business without material adverse
changes of terms with respect to Discover or (ii) enter into any contract that would constitute a
Discover Contract of the type described in Section 3.14(a)(ii), (iii), (iv), (vi), (vii) or (xi) if it
were in effect on the date of this Agreement (other than normal renewals of contracts or
replacement of substantially similar services in the ordinary course of business without material
adverse changes of terms with respect to Discover);

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 (f) except as required under applicable law or the terms of any Discover
Benefit Plan existing as of the date hereof, as applicable, (i) enter into, establish, adopt,
materially amend or terminate any Discover Benefit Plan, or any arrangement that would be a
Discover Benefit Plan if in effect on the date hereof, other than (x) in the ordinary course of
business consistent with past practice and (y) with respect to Discover Benefit Plans that are
health and welfare plans, as would not reasonably be expected to materially increase the cost of
providing benefits under any such Discover Benefit Plan, (ii) increase the compensation or
benefits payable to any current or former employee, officer, director or individual contractor or
consultant, other than increases in annual base salary or wages in the ordinary course of business
consistent with past practice and within the limitations set forth in Section 5.2(f) of the Discover
Disclosure Schedule, (iii) accelerate the vesting of any equity-based awards or other
compensation, (iv) enter into any new, or amend any existing, employment, severance, change in
control, retention, collective bargaining agreement or similar agreement or arrangement, other
than the entry into offer letters in the ordinary course of business consistent with past practice
that do not provide for enhanced or change in control severance (other than within the
limitations on participation in the Discover Change in Control Severance Policy set forth in
Section 5.2(f) of the Discover Disclosure Schedule), (v) fund any rabbi trust or similar
arrangement or in any other way secure the payment of compensation or benefits under any
Discover Benefit Plan, (vi) terminate the employment of any employee at the level of Executive
Vice President or above, other than for cause, (vii) hire any employee at the level of Senior Vice
President or above or any individual independent contractor with annual compensation of
$250,000 or more (other than as a replacement hire receiving substantially similar annual
compensation and with terms consistent with and subject to the limitations on participation in the
Discover Change in Control Severance Policy set forth in Section 5.2(f) of the Discover
Disclosure Schedule), or (viii) promote, change the employee level, grade or title of or otherwise
materially alter the role of any employee to the level of Senior Vice President or above or any
individual independent contractor with annual compensation of $250,000 or more (unless such
action (x) is to fill a vacant position (in lieu of a replacement hire) with substantially similar
annual compensation as the individual being replaced and with the terms of such promotion to be
consistent with and subject to the limitations on participation in the Discover Change in Control
Severance Policy set forth in Section 5.2(f) of the Discover Disclosure Schedule or (y) does not
affect the individual’s compensation or benefits);

(g) settle any claim, suit, action or proceeding, other than the settlement of
any claim, suit, action or proceeding involving a monetary payment by Discover or its
Subsidiaries in an amount not to exceed $10,000,000 individually or $50,000,000, in excess of
current reserves as of the date of this Agreement, in the aggregate and which does not involve
any injunctive relief against, or any finding or admission of any violation of law or wrongdoing
by, and would not impose any material restriction on, or create any precedent that would be
materially adverse to, Discover or its Subsidiaries or the Surviving Entity or its Subsidiaries;

(h) take any action or knowingly fail to take any action where such action or
failure to act could reasonably be expected to prevent the Mergers, taken together, from
qualifying as a “reorganization” within the meaning of Section 368(a) of the Code;

(i) amend the Discover Charter, the Discover Bylaws or comparable

governing documents of its Subsidiaries that are “significant Subsidiaries”;

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 (j) merge or consolidate itself or any of its “significant Subsidiaries” with any
other person, or restructure, reorganize or completely or partially liquidate or dissolve it or any
of its “significant Subsidiaries”;

(k) other than in prior consultation with Capital One, materially restructure or
materially change its investment securities or derivatives portfolio or its interest rate exposure,
through purchases, sales or otherwise, or the manner in which the portfolio is classified or
reported;

(l) implement or adopt any material change in its accounting principles,

practices or methods, other than as may be required by GAAP;

(m) enter into any new material line of business or business operations, or
abandon or discontinue any existing material line of business or business operations, or change
in any material respect its lending, investment, underwriting, risk and asset liability management
and other banking and operating, hedging, securitization and servicing policies (including any
change in the maximum ratio or similar limits as a percentage of its capital exposure applicable
with respect to its loan portfolio or any segment thereof), except as required by applicable law,
regulation or policies imposed by any Governmental Entity;

(n) make, or commit to make, any capital expenditures that exceed

$10,000,000 individually or $30,000,000 in the aggregate, other than as set forth in Discover’s
capital expenditure budget set forth in Section 5.2(n) of the Discover Disclosure Schedule;

(o) make, change or revoke any material Tax election, change an annual Tax
accounting period, adopt or change any material Tax accounting method, file any material
amended Tax Return, enter into any closing agreement with respect to a material amount of
Taxes, or settle any material Tax claim, audit, assessment or dispute or surrender any material
right to claim a refund of Taxes;

(p) knowingly take any action that is intended to or would reasonably be

likely to adversely affect or materially delay the ability of Discover or its Subsidiaries to obtain
any necessary approvals of any Governmental Entity required for the transactions contemplated
hereby or by the Bank Merger Agreement or the Requisite Discover Vote or to perform its
covenants and agreements under this Agreement or the Bank Merger Agreement or to
consummate the transactions contemplated hereby or thereby; or

(q) agree to take, make any commitment to take, or adopt any resolutions of
its Board of Directors or similar governing body in support of, any of the actions prohibited by
this Section 5.2.

5.3 Capital One Forbearances. During the period from the date of this
Agreement to the Effective Time or earlier termination of this Agreement, except as set forth in
the Capital One Disclosure Schedule, as expressly contemplated or permitted by this Agreement
or as required by law, Capital One shall not, and shall not permit any of its Subsidiaries to,
without the prior written consent of Discover (such consent not to be unreasonably withheld,
conditioned or delayed):

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 (a) amend the Capital One Charter or the Capital One Bylaws in a manner
that would adversely affect the holders of Discover Common Stock, or adversely affect the
holders of Discover Common Stock relative to other holders of Capital One Common Stock;

(b) adjust, split, combine or reclassify any capital stock of Capital One;

(c) make, declare, pay or set a record date for any dividend, or any other
distribution on, any shares of its capital stock or other equity or voting securities or any securities
or obligations convertible (whether currently convertible or convertible only after the passage of
time or the occurrence of certain events) or exchangeable into or exercisable for any shares of its
capital stock or other equity or voting securities, except, in each case, (A) regular quarterly cash
dividends by Capital One at a rate not in excess of $0.600 per share of Capital One Common
Stock, (B) dividends paid by any of the Subsidiaries of Capital One to Capital One or any of its
wholly-owned Subsidiaries, (C) dividends provided for and paid on Capital One Preferred Stock
in accordance with the terms of such Capital One Preferred Stock or (D) the acceptance of shares
of Capital One Common Stock as payment for the exercise price of stock options or for
withholding Taxes incurred in connection with the exercise of stock options or the vesting or
settlement of equity compensation awards, in each case, in accordance with past practice and the
terms of the applicable award agreements;

(d) take any action or knowingly fail to take any action where such action or
failure to act could reasonably be expected to prevent the Mergers, taken together, from
qualifying as a “reorganization” within the meaning of Section 368(a) of the Code;

(e) knowingly take any action that is intended to or would reasonably be

likely to adversely affect or materially delay the ability of Capital One or its Subsidiaries to
obtain any necessary approvals of any Governmental Entity required for the transactions
contemplated hereby or by the Bank Merger Agreement or the Requisite Capital One Vote or to
perform its covenants and agreements under this Agreement or the Bank Merger Agreement or to
consummate the transactions contemplated hereby or thereby; or

(f) agree to take, make any commitment to take, or adopt any resolutions of
its Board of Directors or similar governing body in support of, any of the actions prohibited by
this Section 5.3.

ARTICLE VI

ADDITIONAL AGREEMENTS

6.1 Regulatory Matters.

(a) Promptly after the date of this Agreement, Capital One and Discover shall
prepare and file with the SEC the Joint Proxy Statement, and Capital One shall prepare and file
with the SEC the S-4, in which the Joint Proxy Statement will be included as a prospectus.
Capital One and Discover, as applicable, shall use reasonable best efforts to make such filings
within forty-five (45) days of the date of this Agreement. Each of Capital One and Discover
shall use its reasonable best efforts to have the S-4 declared effective under the Securities Act as
promptly as practicable after such filings, and Capital One and Discover shall thereafter mail or

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deliver the Joint Proxy Statement to their respective stockholders. Capital One shall also use its
reasonable best efforts to obtain all necessary state securities law or “Blue Sky” permits and
approvals required to carry out the transactions contemplated by this Agreement, and Discover
shall furnish all information concerning Discover and the holders of Discover Common Stock
and Discover Preferred Stock as may be reasonably requested in connection with any such
action.

(b) The parties hereto shall cooperate with each other and use their reasonable
best efforts to (i) promptly prepare and file all necessary documentation to effect all applications,
notices, petitions and filings (and in the case of the applications, notices, petitions and filings in
respect of the Requisite Regulatory Approvals, use their reasonable best efforts to make such
filings within thirty (30) days of the date of this Agreement), (ii) obtain as promptly as
practicable all permits, consents, approvals and authorizations of all third parties and
Governmental Entities which are necessary or advisable to consummate the transactions
contemplated by this Agreement (including the Mergers and the Bank Merger), and comply with
the terms and conditions of all such permits, consents, approvals and authorizations of all such
Governmental Entities and (iii) contest, defend and appeal any action or proceeding by a
Governmental Entity (other than a bank regulatory agency), whether judicial or administrative,
challenging this Agreement or the consummation of the Mergers and the transactions
contemplated hereby. Capital One and Discover shall have the right to review in advance, and,
unless not practicable, each will consult the other on, and give reasonable time to comment on, in
each case subject to applicable laws relating to the exchange of information, any filing made
with, or written materials submitted to, any third party or any Governmental Entity in connection
with the transactions contemplated by this Agreement. In exercising the foregoing right, each of
the parties hereto shall act reasonably and as promptly as practicable. The parties hereto agree
that they will consult with each other with respect to the obtaining of all permits, consents,
approvals and authorizations of all third parties and Governmental Entities necessary or
advisable to consummate the transactions contemplated by this Agreement and each party will
keep the other apprised of the status of matters relating to completion of the transactions
contemplated herein. Each party shall consult with the other in advance of any meeting or
conference with any Governmental Entity in connection with the transactions contemplated by
this Agreement and, to the extent permitted by such Governmental Entity, give the other party
and/or its counsel the opportunity to attend and participate in such meetings and conferences, in
each case subject to applicable law. As used in this Agreement, the term “Requisite Regulatory
Approvals” shall mean all regulatory authorizations, consents, orders and approvals (and the
expiration or termination of all statutory waiting periods in respect thereof) (i) from the Federal
Reserve Board and the OCC or (ii) as set forth in Section 3.4 or Section 4.4, that are necessary to
consummate the transactions contemplated by this Agreement (including the Mergers and the
Bank Merger) or those the failure of which to be obtained would reasonably be expected to have,
individually or in the aggregate, a Material Adverse Effect on the Surviving Entity.

(c) Each party shall use its reasonable best efforts to respond to any request
for information and resolve any objection that may be asserted by any Governmental Entity with
respect to this Agreement or the transactions contemplated hereby. Notwithstanding the
foregoing, nothing contained herein shall be deemed to require Capital One or Discover or any of
their respective Subsidiaries, and neither Capital One nor Discover nor any of their respective
Subsidiaries shall be permitted (without the written consent of the other party), to take any

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action, or commit to take any action, or agree to any condition or restriction, in connection with
obtaining the foregoing permits, consents, approvals and authorizations of Governmental Entities
that would reasonably be expected to have a material adverse effect on the Surviving Entity and
its Subsidiaries, taken as a whole, after giving effect to the Mergers (a “Materially Burdensome
Regulatory Condition”).

(d) Capital One and Discover shall, upon request, furnish each other with all
information concerning themselves, their Subsidiaries, directors, officers and stockholders and
such other matters as may be reasonably necessary or advisable in connection with the Joint
Proxy Statement, the S-4 or any other statement, filing, notice or application made by or on
behalf of Capital One, Discover or any of their respective Subsidiaries to any Governmental
Entity in connection with the Mergers, the Bank Merger and the other transactions contemplated
by this Agreement.

(e) Capital One and Discover shall promptly advise each other upon receiving
any material substantive communication from any Governmental Entity relating to any Requisite
Regulatory Approval or other approval or clearance of any Governmental Entity being sought in
connection with the transactions contemplated by this Agreement and/or the Bank Merger
Agreement. For the avoidance of doubt, Section 9.14 shall not preclude either party from
fulfilling its obligation under this Section 6.1(e) to the extent permissible under applicable law.

6.2 Access to Information; Confidentiality.

(a) Upon reasonable notice and subject to applicable laws, each of Capital
One and Discover, for the purposes of verifying the representations and warranties of the other
and preparing for the Mergers and the other matters contemplated by this Agreement, shall, and
shall cause each of their respective Subsidiaries to, afford to the officers, employees,
accountants, counsel, advisors and other representatives of the other party, access, during normal
business hours during the period prior to the Effective Time, to such properties, books, contracts,
personnel and records as reasonably requested by the other party, and each shall cooperate with
the other party in preparing to execute after the Effective Time the conversion or consolidation
of systems and business operations generally, and, during such period, each of Capital One and
Discover shall, and shall cause its respective Subsidiaries to, make available to the other party (i)
a copy of each report, schedule, registration statement and other document filed or received by it
during such period pursuant to the requirements of federal securities laws or federal or state
banking laws (other than reports or documents that Capital One or Discover, as the case may be,
is not permitted to disclose under applicable law) and (ii) such other information concerning its
business, properties and personnel as such party may reasonably request (other than reports or
documents that Capital One or Discover, as the case may be, is not permitted to disclose under
applicable law). Neither Capital One nor Discover nor any of their respective Subsidiaries shall
be required to provide access to or disclose information where such access or disclosure would
violate or prejudice the rights of Capital One’s or Discover’s, as the case may be, customers,
jeopardize the attorney-client privilege of the institution in possession or control of such
information (after giving due consideration to the existence of any common interest, joint
defense or similar agreement between the parties) or contravene any law, rule, regulation, order,
judgment, decree, fiduciary duty or binding agreement entered into prior to the date of this

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Agreement. The parties hereto will make appropriate substitute disclosure arrangements under
circumstances in which the restrictions of the preceding sentence apply.

(b) Each of Capital One and Discover shall hold all information furnished by
or on behalf of the other party or any of such party’s Subsidiaries or representatives pursuant to
Section 6.2(a) in confidence to the extent required by, and in accordance with, the provisions of
the confidentiality agreement, dated November 23, 2023 between Capital One Services, LLC and
Discover (the “Confidentiality Agreement”).

(c) No investigation by either of the parties or their respective representatives

shall affect or be deemed to modify or waive the representations and warranties of the other set
forth herein. Nothing contained in this Agreement shall give either party, directly or indirectly,
the right to control or direct the operations of the other party prior to the Effective Time. Prior to
the Effective Time, each party shall exercise, consistent with the terms and conditions of this
Agreement, complete control and supervision over its and its Subsidiaries’ respective operations.

6.3 Stockholders’ Approvals. Each of Capital One and Discover shall call a
meeting of its stockholders (the “Capital One Meeting” and the “Discover Meeting,”
respectively) to be held as soon as reasonably practicable after the S-4 is declared effective, for
the purpose of obtaining (a) the Requisite Discover Vote and the Requisite Capital One Vote
required in connection with this Agreement and the Merger and (b) if so desired and mutually
agreed, a vote upon other matters of the type customarily brought before a meeting of
stockholders in connection with the approval of a merger agreement or the transactions
contemplated thereby, and each of Discover and Capital One shall use its reasonable best efforts
to cause such meetings to occur as soon as reasonably practicable and on the same date. Each of
Capital One and Discover and their respective Boards of Directors shall use its reasonable best
efforts to obtain from the stockholders of Capital One and Discover, as applicable, the Requisite
Capital One Vote and the Requisite Discover Vote, as applicable, including by communicating to
the respective stockholders of Capital One and Discover its respective recommendation (and
including such recommendation in the Joint Proxy Statement) that, in the case of Capital One,
the stockholders of Capital One approve the Capital One Share Issuance (the “Capital One Board
Recommendation”), and in the case of Discover, the stockholders of Discover adopt this
Agreement (the “Discover Board Recommendation”). Each of Capital One and Discover and
their respective Boards of Directors shall not (i) withhold, withdraw, modify or qualify in a
manner adverse to the other party the Capital One Board Recommendation, in the case of Capital
One, or the Discover Board Recommendation, in the case of Discover, (ii) fail to make the
Capital One Board Recommendation, in the case of Capital One, or the Discover Board
Recommendation, in the case of Discover, in the Joint Proxy Statement, (iii) adopt, approve,
recommend or endorse an Acquisition Proposal or publicly announce an intention to adopt,
approve, recommend or endorse an Acquisition Proposal, (iv) fail to publicly and without
qualification (A) recommend against any Acquisition Proposal or (B) reaffirm the Capital One
Board Recommendation, in the case of Capital One, or the Discover Board Recommendation, in
the case of Discover, in each case within ten (10) business days (or such fewer number of days as
remains prior to the Capital One Meeting or the Discover Meeting, as applicable) after an
Acquisition Proposal is made public or any request by the other party to do so, or (v) publicly
propose to do any of the foregoing (any of the foregoing a “Recommendation Change”).
However, subject to Section 8.1 and Section 8.2, if the Board of Directors of Capital One or

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Discover, after receiving the advice of its outside counsel and, with respect to financial matters,
its financial advisors, determines in good faith that it would more likely than not result in a
violation of its fiduciary duties under applicable law to make or continue to make the Capital
One Board Recommendation or the Discover Board Recommendation, as applicable, such Board
of Directors may, in the case of Capital One, prior to the receipt of the Requisite Capital One
Vote, and in the case of Discover, prior to the receipt of the Requisite Discover Vote, submit this
Agreement to its stockholders without recommendation (although the resolutions approving this
Agreement as of the date hereof may not be rescinded or amended), in which event such Board
of Directors may communicate the basis for its lack of a recommendation to its stockholders in
the Joint Proxy Statement or an appropriate amendment or supplement thereto to the extent
required by law; provided that such Board of Directors may not take any actions under this
sentence unless it (A) gives the other party at least three (3) business days’ prior written notice of
its intention to take such action and a reasonable description of the event or circumstances giving
rise to its determination to take such action (including, in the event such action is taken in
response to an Acquisition Proposal, the latest material terms and conditions of, and the identity
of the third party making, any such Acquisition Proposal, or any amendment or modification
thereof, or describe in reasonable detail such other event or circumstances) and (B) at the end of
such notice period, takes into account any amendment or modification to this Agreement
proposed by the other party and, after receiving the advice of its outside counsel and, with
respect to financial matters, its financial advisors, determines in good faith that it would
nevertheless more likely than not result in a violation of its fiduciary duties under applicable law
to make or continue to make the Capital One Board Recommendation or Discover Board
Recommendation, as the case may be. Any material amendment to any Acquisition Proposal
will be deemed to be a new Acquisition Proposal for purposes of this Section 6.3 and will require
a new notice period as referred to in this Section 6.3. Capital One or Discover shall adjourn or
postpone the Capital One Meeting or the Discover Meeting, as the case may be, if, as of the time
for which such meeting is originally scheduled there are insufficient shares of Capital One
Common Stock or Discover Common Stock, as the case may be, represented (either in person or
by proxy) to constitute a quorum necessary to conduct the business of such meeting, or if on the
date of such meeting Discover or Capital One, as applicable, has not received proxies
representing a sufficient number of shares necessary to obtain the Requisite Discover Vote or the
Requisite Capital One Vote; provided that the date of the Capital One Meeting or the Discover
Meeting, as applicable, is not postponed or adjourned more than twice and in each case for more
than an aggregate of 15 days in connection with any one postponement or adjournment or more
than an aggregate of 30 days from the original date of the applicable meeting in reliance on the
preceding sentence (excluding any adjournments or postponements required by applicable law).
Notwithstanding anything to the contrary herein, unless this Agreement has been terminated in
accordance with its terms, (x) the Capital One Meeting shall be convened and the Capital One
Share Issuance shall be submitted to the stockholders of Capital One at the Capital One Meeting
and (y) the Discover Meeting shall be convened and this Agreement shall be submitted to the
stockholders of Discover at the Discover Meeting, and nothing contained herein shall be deemed
to relieve either Capital One or Discover of such obligation. As used in this Agreement,
“Acquisition Proposal” shall mean, with respect to Capital One or Discover, as applicable, other
than the transactions contemplated by this Agreement, any offer, inquiry or proposal relating to,
or any third party indication of interest in, (i) any acquisition or purchase, direct or indirect, of
twenty-five percent (25%) or more of the consolidated assets of a party and its Subsidiaries or

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twenty-five percent (25%) or more of any class of equity or voting securities of a party or its
Subsidiaries whose assets, individually or in the aggregate, constitute twenty-five percent (25%)
or more of the consolidated assets of the party, (ii) any tender offer (including a self-tender offer)
or exchange offer that, if consummated, would result in such third party beneficially owning
twenty-five percent (25%) or more of any class of equity or voting securities of a party or its
Subsidiaries whose assets, individually or in the aggregate, constitute twenty-five percent (25%)
or more of the consolidated assets of the party, or (iii) a merger, consolidation, share exchange,
business combination, reorganization, recapitalization, liquidation, dissolution or other similar
transaction involving a party or its Subsidiaries whose assets, individually or in the aggregate,
constitute twenty-five percent (25%) or more of the consolidated assets of the party.

6.4 Legal Conditions to Merger. Subject in all respects to Section 6.1 of this
Agreement, each of Capital One and Discover shall, and shall cause its Subsidiaries to, use their
reasonable best efforts (a) to take, or cause to be taken, all actions necessary, proper or advisable
to comply promptly with all legal requirements that may be imposed on such party or its
Subsidiaries with respect to the Mergers and the Bank Merger and, subject to the conditions set
forth in Article VII hereof, to consummate the transactions contemplated by this Agreement, and
(b) to obtain (and to cooperate with the other party to obtain) any material consent, authorization,
order or approval of, or any exemption by, any Governmental Entity and any other third party
that is required to be obtained by Discover or Capital One or any of their respective Subsidiaries
in connection with the Mergers, the Bank Merger and the other transactions contemplated by this
Agreement.

6.5 Stock Exchange Listing. Capital One shall cause the shares of Capital
One Common Stock to be issued in the Merger to be approved for listing on the NYSE, subject
to official notice of issuance, prior to the Effective Time.

6.6 Employee Matters.

(a) Capital One shall, and shall cause each of its Subsidiaries to, for the one-
year period following the Effective Time, maintain for the each employee of Discover and any of
its Subsidiaries as of the Effective Time who remains so employed immediately following the
Effective Time (the “Continuing Employees”), for so long as they are employed by the Surviving
Entity following the Effective Time (i) base salary or wages (as applicable) that is no less
favorable than that provided to the Continuing Employee as of immediately prior to the Effective
Time, (ii) target annual cash incentive compensation and target long-term incentive
compensation opportunities that are no less favorable in the aggregate to the aggregate target
annual cash incentive compensation and target long-term incentive compensation opportunities
provided to the Continuing Employee as of immediately prior to the Effective Time, (iii)
employee benefits (other than severance) that are substantially comparable in the aggregate to
the employee benefits (other than severance) provided by Discover to the Continuing Employees
as of immediately prior to the Effective Time, and (iv) severance benefits no less favorable than
the severance benefits provided to the Continuing Employees under the plans listed in Section
6.6(a) of the Discover Disclosure Schedule.

(b) With respect to any Capital One Benefit Plans in which any Continuing
Employees become eligible to participate on or after the Effective Time, Capital One shall, and

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shall cause each of its Subsidiaries to: (i) waive all pre-existing conditions, exclusions and
waiting periods with respect to participation and coverage requirements applicable to such
employees and their eligible dependents under any such Capital One Benefit Plans that provide
health care benefits, except to the extent such pre-existing conditions, exclusions or waiting
periods would apply under the analogous Discover Benefit Plan, (ii) use commercially
reasonable efforts to provide each such employee and their eligible dependents with credit for
any co-payments or coinsurance and deductibles paid prior to the Effective Time under a Capital
One Benefit Plan that provides health care benefits, to the same extent that such credit was given
under the analogous Discover Benefit Plan prior to the Effective Time, in satisfying any
applicable deductible, co-payment, coinsurance or maximum out-of-pocket requirements under
any such Capital One Benefit Plan, and (iii) use commercially reasonable efforts to recognize all
service of such employees with Discover and its Subsidiaries for purposes of eligibility to
participate, vesting and levels of benefits in any such Capital One Benefit Plan to the same extent
that such service was taken into account under the analogous Discover Benefit Plan prior to the
Effective Time; provided, that the foregoing service recognition shall not apply (A) to the extent
it would result in a duplication of benefits for the same period of service, (B) for purposes of any
pension plan or (C) for purposes of any benefit plan that is a frozen plan or provides
grandfathered benefits.

(c) If requested by Capital One in writing delivered to Discover not less than
twenty (20) business days before the Closing Date, the Board of Directors of Discover (or the
appropriate committee thereof) shall adopt resolutions and take such corporate action as is
necessary or appropriate to terminate the Discover 401(k) Plan (the “Discover 401(k) Plan”),
effective as of the day prior to the Closing Date and contingent upon the occurrence of the
Effective Time. If Capital One requests that the Discover 401(k) Plan be terminated,
(i) Discover shall provide Capital One with evidence that such plan has been terminated (the
form and substance of which shall be subject to reasonable review and comment by Capital
One)not later than five (5) days immediately preceding the Closing Date and (ii) the Continuing
Employees shall be eligible to participate, effective as of the Effective Time, in a 401(k) plan
sponsored or maintained by Capital One or one of its Subsidiaries (the “Capital One 401(k)
Plan”). Capital One and Discover shall take all actions as may be required, including
amendments to the Discover 401(k) Plan and/or the Capital One 401(k) Plan, to permit the
Continuing Employees to make rollover contributions to the Capital One 401(k) Plan of “eligible
rollover distributions” (within the meaning of Section 401(a)(31) of the Code) in the form of
cash, notes (in the case of loans) or a combination thereof.

(d) Effective as of the Effective Time, Capital One shall, or shall cause one of
its Subsidiaries to, assume and honor the Discover Benefit Plans in accordance with their terms,
it being understood that this sentence shall not be construed to limit the ability of Capital One or
any of its Subsidiaries or Affiliates to amend or terminate any Discover Benefit Plan in
accordance with its terms.

(e) Following the date hereof, Discover and Capital One shall, and shall cause
their respective Affiliates to, cooperate and use good faith efforts in all matters reasonably
necessary for employee, compensation and benefits integration, including exchanging
information and data relating to employees, organizational structure, compensation and
employee benefits, and distributing communications to the employees of Discover and its

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Affiliates. Prior to the Closing, Capital One shall be provided the opportunity to review and
comment on any broad-based or otherwise material employee notices or communication
materials (including website postings) regarding the transactions contemplated by this
Agreement from Discover or its Affiliates to the employees of Discover and its Affiliates,
including broad-based or otherwise material notices or communication materials with respect to
employment, compensation or benefits matters addressed in this Agreement or related, directly
or indirectly, to the transactions contemplated by this Agreement or employment after the
Closing prepared by Discover or its Affiliates prior to their distribution, and Discover and its
Affiliates shall reflect any reasonable comments promptly received from Capital One.

(f) Nothing in this Agreement shall confer upon any employee, officer,
director or consultant of Capital One or Discover or any of their Subsidiaries or Affiliates any
right to continue in the employ or service of the Surviving Entity, Discover, Capital One or any
Subsidiary or Affiliate thereof, or shall interfere with or restrict in any way the rights of the
Surviving Entity, Discover, Capital One or any Subsidiary or Affiliate thereof to discharge or
terminate the services of any employee, officer, director or consultant of the Surviving Entity,
Discover, Capital One or any of their Subsidiaries or Affiliates at any time for any reason
whatsoever, with or without cause. Nothing in this Agreement shall be deemed to (i) establish,
amend, or modify any Discover Benefit Plan, Capital One Benefit Plan or any other benefit or
employment plan, program, agreement or arrangement, or (ii) alter or limit the ability of the
Surviving Entity, Discover, Capital One or any of their Subsidiaries or Affiliates to amend,
modify or terminate any Discover Benefit Plan, Capital One Benefit Plan or any other benefit or
employment plan, program, agreement or arrangement after the Effective Time. Without
limiting the generality of Section 9.11, nothing in this Section 6.6, express or implied, is intended
to or shall confer upon any person, including any current or former employee, officer, director or
consultant of the Surviving Entity, Discover, Capital One or any of their Subsidiaries or
Affiliates, any right, benefit or remedy of any nature whatsoever under or by reason of this
Agreement.

6.7 Indemnification; Directors’ and Officers’ Insurance.

(a) From and after the Effective Time, the Surviving Entity shall indemnify
and hold harmless and shall advance expenses as incurred, in each case to the extent (subject to
applicable law) such persons are indemnified as of the date of this Agreement by Discover
pursuant to the Discover Charter, the Discover Bylaws, the governing or organizational
documents of any Subsidiary of Discover and any indemnification agreements in existence as of
the date hereof and disclosed in Section 6.7(a) of the Discover Disclosure Schedule, each present
and former director, officer or employee of Discover and its Subsidiaries (in each case, when
acting in such capacity) (collectively, the “Discover Indemnified Parties”) against any costs or
expenses (including reasonable attorneys’ fees), judgments, fines, losses, damages or liabilities
incurred in connection with any threatened or actual claim, action, suit, proceeding or
investigation, whether civil, criminal, administrative or investigative, whether arising before or
after the Effective Time, arising out of or pertaining to the fact that such person is or was a
director, officer or employee of Discover or any of its Subsidiaries and pertaining to matters or
facts existing or occurring at or prior to the Effective Time, including the transactions
contemplated by this Agreement; provided, that in the case of advancement of expenses, any
Discover Indemnified Party to whom expenses are advanced provides an undertaking to repay

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such advances if it is ultimately determined that such Discover Indemnified Party is not entitled
to indemnification.

(b) For a period of six (6) years after the Effective Time, the Surviving Entity
shall cause to be maintained in effect the current policies of directors’ and officers’ liability
insurance maintained by Discover (provided, that the Surviving Entity may substitute therefor
policies with a substantially comparable insurer of at least the same coverage and amounts
containing terms and conditions that are no less advantageous to the insured) with respect to
claims against the present and former officers and directors of Discover and any of its
Subsidiaries arising from facts or events which occurred at or before the Effective Time;
provided, however, that the Surviving Entity shall not be obligated to expend, on an annual basis,
an amount in excess of 300% of the current annual premium paid as of the date hereof by
Discover for such insurance (the “Premium Cap”), and if such premiums for such insurance
would at any time exceed the Premium Cap, then the Surviving Entity shall cause to be
maintained policies of insurance which, in the Surviving Entity’s good faith determination,
provide the maximum coverage available at an annual premium equal to the Premium Cap. In
lieu of the foregoing, Capital One or Discover, in consultation with, but only upon the consent of
Capital One, may (and at the request of Capital One, Discover shall use its reasonable best
efforts to) obtain at or prior to the Effective Time a six (6)-year “tail” policy under Discover’s
existing directors’ and officers’ insurance policy providing equivalent coverage to that described
in the preceding sentence if and to the extent that the same may be obtained for an amount that,
in the aggregate, does not exceed the Premium Cap.

(c) The provisions of this Section 6.7 shall survive the Effective Time and are
intended to be for the benefit of, and shall be enforceable by, each Discover Indemnified Party
and his or her heirs and representatives, each of whom shall be express third-party beneficiaries
of this Section 6.7. If the Surviving Entity or any of its successors or assigns (i) consolidates
with or merges into any other person and is not the continuing or surviving entity of such
consolidation or merger, or (ii) transfers all or substantially all of its assets or deposits to any
other person or engages in any similar transaction, then in each such case, the Surviving Entity
will cause proper provision to be made so that the successors and assigns of the Surviving Entity
will expressly assume the obligations set forth in this Section 6.7. The obligations of the
Surviving Entity or any of its successors under this Section 6.7 shall not be terminated or
modified after the Effective Time in a manner so as to adversely affect any Discover Indemnified
Party or any other person entitled to the benefit of this Section 6.7 without the prior written
consent of the affected Discover Indemnified Party or affected person.

6.8 Additional Agreements. In case at any time after the Effective Time any
further action is necessary or desirable to carry out the purposes of this Agreement (including
any merger between a Subsidiary of Capital One, on the one hand, and a Subsidiary of Discover,
on the other hand) or to vest the Surviving Entity with full title to all properties, assets, rights,
approvals, immunities and franchises of any of the parties to the Mergers or the Bank Merger,
the proper officers and directors of each party to this Agreement and their respective Subsidiaries
shall take all such necessary action as may be reasonably requested by Capital One.

6.9 Advice of Changes. Capital One and Discover shall each promptly advise
the other party of any effect, change, event, circumstance, condition, occurrence or development

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(i) that has had or would reasonably be expected to have, either individually or in the aggregate,
a Material Adverse Effect on it or (ii) that it believes would or would reasonably be expected to
cause or constitute a material breach of any of its representations, warranties, obligations,
covenants or agreements contained herein that reasonably could be expected to give rise,
individually or in the aggregate, to the failure of a condition in Article VII; provided, that any
failure to give notice in accordance with the foregoing with respect to any breach shall not be
deemed to constitute a violation of this Section 6.9 or the failure of any condition set forth in
Section 7.2 or 7.3 to be satisfied, or otherwise constitute a breach of this Agreement by the party
failing to give such notice, in each case unless the underlying breach would independently result
in a failure of the conditions set forth in Section 7.2 or 7.3 to be satisfied; and provided, further,
that the delivery of any notice pursuant to this Section 6.9 shall not cure any breach of, or
noncompliance with, any other provision of this Agreement or limit the remedies available to the
party receiving such notice.

6.10 Dividends. After the date of this Agreement, each of Capital One and
Discover shall coordinate with the other the declaration of any dividends in respect of Capital
One Common Stock and Discover Common Stock and the record dates and payment dates
relating thereto, it being the intention of the parties hereto that holders of Discover Common
Stock shall not receive two dividends, or fail to receive one dividend, in any quarter with respect
to their shares of Discover Common Stock and any shares of Capital One Common Stock any
such holder receives in exchange therefor in the Merger.

6.11 Stockholder Litigation. Each party shall give the other party prompt
notice of any stockholder litigation against such party or its directors or officers relating to the
transactions contemplated by this Agreement. Each party shall give the other party the
opportunity to participate (at the other party’s expense) in the defense or settlement of any such
litigation. Each party shall give the other party the right to review and comment on all filings or
responses to be made in connection with any such litigation, and will in good faith take such
comments into account. No party shall agree to settle any such litigation without the other
party’s prior written consent, which consent shall not be unreasonably withheld, conditioned or
delayed; provided, that a party shall not be obligated to consent to any settlement which does not
include a full release of such party and its Affiliates or which imposes an injunction or other
equitable relief after the Effective Time upon the Surviving Entity or any of its Affiliates.

6.12 Board Representation. Capital One shall take all appropriate action so
that, as of the Effective Time, the number of directors constituting the Board of Directors of
Capital One shall be increased by three (3) for a total of fifteen (15) directors, and three (3)
current directors of Discover, determined by mutual agreement of Discover and Capital One,
shall be appointed to the Board of Directors of Capital One (the “Discover Directors”).

6.13 Acquisition Proposals.

(a) Each party agrees that it will not, will cause each of its Subsidiaries not to
and will cause its and their respective officers, directors and employees not to, and will use its
reasonable best efforts to cause its agents, advisors and representatives (collectively,
“Representatives”) not to, directly or indirectly, (i) initiate, solicit, knowingly encourage or
knowingly facilitate any inquiries or proposals with respect to any Acquisition Proposal, (ii)

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engage or participate in any negotiations with any person concerning any Acquisition Proposal,
(iii) provide any confidential or nonpublic information or data to, or have or participate in any
discussions with any person relating to any Acquisition Proposal or (iv) unless this Agreement
has been terminated in accordance with its terms, approve or enter into any term sheet, letter of
intent, commitment, memorandum of understanding, agreement in principle, acquisition
agreement, merger agreement or other agreement (whether written or oral, binding or non-
binding) (other than a confidentiality agreement referred to and entered into in accordance with
this Section 6.13) in connection with or relating to any Acquisition Proposal. Notwithstanding
the foregoing, in the event that after the date of this Agreement and prior to the receipt of the
Requisite Capital One Vote, in the case or Capital One, or the Requisite Discover Vote, in the
case of Discover, a party receives an unsolicited bona fide written Acquisition Proposal, such
party may, and may permit its Subsidiaries and its and its Subsidiaries’ Representatives to,
furnish or cause to be furnished confidential or nonpublic information or data and participate in
such negotiations or discussions with the person making the Acquisition Proposal if the Board of
Directors of such party concludes in good faith (after receiving the advice of its outside counsel,
and with respect to financial matters, its financial advisors) that failure to take such actions
would be more likely than not to result in a violation of its fiduciary duties under applicable law;
provided, that, prior to furnishing any confidential or nonpublic information permitted to be
provided pursuant to this sentence, such party shall have entered into a confidentiality agreement
with the person making such Acquisition Proposal on terms no less favorable to it than the
Confidentiality Agreement, which confidentiality agreement shall not provide such person with
any exclusive right to negotiate with such party. Each party will, and will cause its
Representatives to, immediately cease and cause to be terminated any activities, discussions or
negotiations conducted before the date of this Agreement with any person other than Discover or
Capital One, as applicable, with respect to any Acquisition Proposal. Each party will promptly
(within twenty-four (24) hours) advise the other party following receipt of any Acquisition
Proposal or any inquiry which could reasonably be expected to lead to an Acquisition Proposal,
and the substance thereof (including the terms and conditions of and the identity of the person
making such inquiry or Acquisition Proposal), will provide the other party with an unredacted
copy of any such Acquisition Proposal and any draft agreements, proposals or other materials
received in connection with any such inquiry or Acquisition Proposal, and will keep the other
party apprised of any related developments, discussions and negotiations on a current basis,
including any amendments to or revisions of the terms of such inquiry or Acquisition Proposal.
Each party shall use its reasonable best efforts to enforce any existing confidentiality or standstill
agreements to which it or any of its Subsidiaries is a party in accordance with the terms thereof.

(b) Nothing contained in this Agreement shall prevent a party or its Board of
Directors from complying with Rule 14d-9 and Rule 14e-2 under the Exchange Act with respect
to an Acquisition Proposal; provided, that such rules will in no way eliminate or modify the
effect that any action pursuant to such rules would otherwise have under this Agreement.

6.14 Public Announcements. Discover and Capital One agree that the initial
press release with respect to the execution and delivery of this Agreement shall be a release
mutually agreed to by the parties. Thereafter, each of the parties agrees that no public release or
announcement or statement concerning this Agreement or the transactions contemplated hereby
shall be issued by any party without the prior written consent of the other party (which consent
shall not be unreasonably withheld, conditioned or delayed), except (i) as required by applicable

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law or the rules or regulations of any applicable Governmental Entity or stock exchange to which
the relevant party is subject, in which case the party required to make the release or
announcement shall consult with the other party about, and allow the other party reasonable time
to comment on, such release or announcement in advance of such issuance or (ii) for such
releases, announcements or statements that are consistent with other such releases,
announcements or statements made after the date of this Agreement in compliance with this
Section 6.14.

6.15 Change of Method. Discover and Capital One shall be empowered, upon
their mutual agreement, at any time prior to the Effective Time, to change the method or
structure of effecting the transactions contemplated by this Agreement (including the provisions
of Article I), if and to the extent they both deem such change to be necessary, appropriate or
desirable; provided, however, that no such change shall (i) alter or change the Exchange Ratio or
the number of shares of Capital One Common Stock received by holders of Discover Common
Stock in exchange for each share of Discover Common Stock or the treatment of the Discover
Preferred Stock, (ii) adversely affect the Tax treatment of Discover’s stockholders or Capital
One’s stockholders pursuant to this Agreement, (iii) adversely affect the Tax treatment of
Discover or Capital One pursuant to this Agreement or (iv) materially impede or delay the
consummation of the transactions contemplated by this Agreement in a timely manner. The
parties agree to reflect any such change in an appropriate amendment to this Agreement executed
by both parties in accordance with Section 9.1.

6.16 Restructuring Efforts. If either Discover or Capital One shall have failed
to obtain the Requisite Discover Vote or the Requisite Capital One Vote at the duly convened
Discover Meeting or Capital One Meeting, as applicable, or any adjournment or postponement
thereof, each of the parties shall in good faith use its reasonable best efforts to negotiate a
restructuring of the transactions contemplated by this Agreement (it being understood that
neither party shall have any obligation to alter or change any material terms, including the
Exchange Ratio, the treatment of the Discover Preferred Stock or the amount or kind of the
consideration to be issued to holders of the capital stock of Discover as provided for in this
Agreement or any term that would adversely affect the tax treatment of the transactions
contemplated hereby in a manner adverse to such party or its stockholders) and/or resubmit this
Agreement and the transactions contemplated hereby (or as restructured pursuant to this Section
6.16) to its respective stockholders for adoption or approval.

6.17 Takeover Statutes. None of Discover, Capital One, Mergers Sub or their
respective Boards of Directors shall take any action that would cause any Takeover Statute to
become applicable to this Agreement, the Mergers, or any of the other transactions contemplated
hereby, and each shall take all necessary steps to exempt (or ensure the continued exemption of)
the Mergers and the other transactions contemplated hereby from any applicable Takeover
Statute now or hereafter in effect. If any Takeover Statute may become, or may purport to be,
applicable to the transactions contemplated hereby, each party and the members of their
respective Boards of Directors will grant such approvals and take such actions as are necessary
so that the transactions contemplated by this Agreement may be consummated as promptly as
practicable on the terms contemplated hereby and otherwise act to eliminate or minimize the
effects of any Takeover Statute on any of the transactions contemplated by this Agreement,
including, if necessary, challenging the validity or applicability of any such Takeover Statute.

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 6.18 Treatment of Discover Indebtedness. Upon the Second Effective Time,
Capital One and/or its Subsidiaries shall assume the due and punctual performance and
observance of the covenants and other obligations to be performed by Discover and/or its
Subsidiaries under the definitive documents governing the indebtedness and other instruments
related thereto of Discover and/or its Subsidiaries, and the due and punctual payment of the
principal of (and premium, if any) and interest on the notes or other instruments governed
thereby. In connection therewith, Capital One and Discover shall cooperate and use reasonable
best efforts to execute and deliver (and cause their respective Subsidiaries to execute and deliver,
if applicable) any supplemental indentures, officer’s certificates or other documents, and the
parties hereto shall cooperate and use reasonable best efforts to provide any opinion of counsel
required to make such assumption effective as of the Second Effective Time.

6.19 Exemption from Liability Under Section 16(b). Discover and Capital One
agree that, in order to most effectively compensate and retain Discover Insiders, both prior to and
after the Effective Time, it is desirable that Discover Insiders not be subject to a risk of liability
under Section 16(b) of the Exchange Act to the fullest extent permitted by applicable law in
connection with the conversion of shares of Discover Common Stock and Discover Preferred
Stock into shares of Capital One Common Stock and New Capital One Preferred Stock in the
Mergers and the conversion of Discover Equity Awards into corresponding Capital One Equity
Awards in the Merger, and for that compensatory and retentive purpose agree to the provisions
of this Section 6.19. Discover shall deliver to Capital One in a reasonably timely fashion prior to
the Effective Time accurate information regarding those officers and directors of Discover
subject to the reporting requirements of Section 16(a) of the Exchange Act (the “Discover
Insiders”), and the Board of Directors of Capital One and of Discover, or a committee of non-
employee directors thereof (as such term is defined for purposes of Rule 16b-3(d) under the
Exchange Act), shall reasonably promptly thereafter, and in any event prior to the Effective
Time, take all such steps as may be required to cause (in the case of Discover) any dispositions
of Discover Common Stock, Discover Preferred Stock or Discover Equity Awards by the
Discover Insiders, and (in the case of Capital One) any acquisitions of Capital One Common
Stock, New Capital One Preferred Stock, or Capital One Equity Awards by any Discover
Insiders who, immediately following the Mergers, will be officers or directors of the Surviving
Entity subject to the reporting requirements of Section 16(a) of the Exchange Act, in each case
pursuant to the transactions contemplated by this Agreement, to be exempt from liability
pursuant to Rule 16b-3 under the Exchange Act to the fullest extent permitted by applicable law.

6.20 Conduct of Merger Sub. Capital One shall take all actions necessary to
cause Merger Sub to perform its obligations under this Agreement.

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 ARTICLE VII

CONDITIONS PRECEDENT

7.1 Conditions to Each Party’s Obligation to Effect the Merger. The

respective obligations of the parties to effect the Merger shall be subject to the satisfaction at or
prior to the Effective Time of the following conditions:

(a) Stockholder Approvals. (i) The Capital One Share Issuance shall have
been approved by the stockholders of Capital One by the Requisite Capital One Vote and (ii) this
Agreement shall have been adopted by the stockholders of Discover by the Requisite Discover
Vote.

(b) NYSE Listing. The shares of Capital One Common Stock that shall be
issuable pursuant to this Agreement shall have been authorized for listing on the NYSE, subject
to official notice of issuance.

(c) Regulatory Approvals. (i) All Requisite Regulatory Approvals shall have
been obtained and shall remain in full force and effect and all statutory waiting periods in respect
thereof shall have expired or been terminated and (ii) no such Requisite Regulatory Approval
shall have resulted in the imposition of any Materially Burdensome Regulatory Condition.

(d) S-4. The S-4 shall have become effective under the Securities Act and no
stop order suspending the effectiveness of the S-4 shall have been issued, and no proceedings for
such purpose shall have been initiated or threatened by the SEC and not withdrawn.

(e) No Injunctions or Restraints; Illegality. No order, injunction or decree

issued by any court or Governmental Entity of competent jurisdiction or other legal restraint or
prohibition preventing the consummation of the Mergers, the Bank Merger or any of the other
transactions contemplated by this Agreement shall be in effect. No law, statute, rule, regulation,
order, injunction or decree shall have been enacted, entered, promulgated or enforced by any
Governmental Entity which prohibits or makes illegal consummation of the Mergers, the Bank
Merger or any of the other transactions contemplated by this Agreement.

7.2 Conditions to Obligations of Capital One and Merger Sub. The obligation
of Capital One and Merger Sub to effect the Merger is also subject to the satisfaction, or waiver
by Capital One, at or prior to the Effective Time, of the following conditions:

(a) Representations and Warranties. The representations and warranties of

Discover set forth in Section 3.2(a) and Section 3.8(a) (in each case after giving effect to the
lead-in to Article III) shall be true and correct (other than, in the case of Section 3.2(a), such
failures to be true and correct as are de minimis) in each case as of the date of this Agreement
and as of the Closing Date as though made on and as of the Closing Date (except to the extent
such representations and warranties speak as of an earlier date, in which case as of such earlier
date), and the representations and warranties of Discover set forth in Section 3.1(a), Section
3.1(b) (but only with respect to Discover Bank), Section 3.2(b) (but only with respect to the
Discover Subsidiaries set forth on 7.2(a) of the Discover Disclosure Schedule), Section 3.3(a)
and Section 3.7 (read without giving effect to any qualification as to materiality or Material

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Adverse Effect set forth in such representations or warranties but, in each case, after giving
effect to the lead-in to Article III) shall be true and correct in all material respects as of the date
of this Agreement and as of the Closing Date as though made on and as of the Closing Date
(except to the extent such representations and warranties speak as of an earlier date, in which
case as of such earlier date). All other representations and warranties of Discover set forth in this
Agreement (read without giving effect to any qualification as to materiality or Material Adverse
Effect set forth in such representations or warranties but, in each case, after giving effect to the
lead-in to Article III) shall be true and correct in all respects as of the date of this Agreement and
as of the Closing Date as though made on and as of the Closing Date (except to the extent such
representations and warranties speak as of an earlier date, in which case as of such earlier date);
provided, however, that for purposes of this sentence, such representations and warranties shall
be deemed to be true and correct unless the failure or failures of such representations and
warranties to be so true and correct, either individually or in the aggregate, and without giving
effect to any qualification as to materiality or Material Adverse Effect set forth in such
representations or warranties, has had or would reasonably be expected to have a Material
Adverse Effect on Discover or the Surviving Entity. Capital One shall have received a certificate
dated as of the Closing Date and signed on behalf of Discover by the Chief Executive Officer or
the Chief Financial Officer of Discover to the foregoing effect.

(b) Performance of Obligations of Discover. Discover shall have performed

in all material respects the obligations, covenants and agreements required to be performed by it
under this Agreement at or prior to the Closing Date, and Capital One shall have received a
certificate dated as of the Closing Date and signed on behalf of Discover by the Chief Executive
Officer or the Chief Financial Officer of Discover to such effect.

(c) Federal Tax Opinion. Capital One shall have received the opinion of
Wachtell, Lipton, Rosen & Katz, in form and substance reasonably satisfactory to Capital One,
dated as of the Closing Date, to the effect that, on the basis of facts, representations and
assumptions set forth or referred to in such opinion, the Mergers, taken together, will qualify as a
“reorganization” within the meaning of Section 368(a) of the Code. In rendering such opinion,
counsel may require and rely upon representations contained in certificates of officers of Capital
One, Discover and Merger Sub, reasonably satisfactory in form and substance to such counsel.

7.3 Conditions to Obligations of Discover. The obligation of Discover to

effect the Merger is also subject to the satisfaction, or waiver by Discover, at or prior to the
Effective Time of the following conditions:

(a) Representations and Warranties. The representations and warranties of

Capital One and Merger Sub set forth in Section 4.2(a) and Section 4.8(a) (in each case, after
giving effect to the lead-in to Article IV) shall be true and correct (other than, in the case of
Section 4.2(a), such failures to be true and correct as are de minimis) in each case as of the date
of this Agreement and as of the Closing Date as though made on and as of the Closing Date
(except to the extent such representations and warranties speak as of an earlier date, in which
case as of such earlier date), and the representations and warranties of Capital One and Merger
Sub set forth in Section 4.1(a), Section 4.1(b) (but only with respect to Capital One Bank),
Section 4.2(b) (but only with respect to Capital One Bank), Section 4.3(a) and Section 4.7 (read
without giving effect to any qualification as to materiality or Material Adverse Effect set forth in

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such representations or warranties but, in each case, after giving effect to the lead-in to Article
IV) shall be true and correct in all material respects as of the date of this Agreement and as of the
Closing Date as though made on and as of the Closing Date (except to the extent such
representations and warranties speak as of an earlier date, in which case as of such earlier date).
All other representations and warranties of Capital One and Merger Sub set forth in this
Agreement (read without giving effect to any qualification as to materiality or Material Adverse
Effect set forth in such representations or warranties but, in each case, after giving effect to the
lead-in to Article IV) shall be true and correct in all respects as of the date of this Agreement and
as of the Closing Date as though made on and as of the Closing Date (except to the extent such
representations and warranties speak as of an earlier date, in which case as of such earlier date),
provided, however, that for purposes of this sentence, such representations and warranties shall
be deemed to be true and correct unless the failure or failures of such representations and
warranties to be so true and correct, either individually or in the aggregate, and without giving
effect to any qualification as to materiality or Material Adverse Effect set forth in such
representations or warranties, has had or would reasonably be expected to have a Material
Adverse Effect on Capital One. Discover shall have received a certificate dated as of the Closing
Date and signed on behalf of Capital One by the Chief Executive Officer or the Chief Financial
Officer of Capital One to the foregoing effect.

(b) Performance of Obligations of Capital One and Merger Sub. Capital One
and Merger Sub shall have performed in all material respects the obligations, covenants and
agreements required to be performed by it under this Agreement at or prior to the Closing Date,
and Discover shall have received a certificate dated as of the Closing Date and signed on behalf
of Capital One by the Chief Executive Officer or the Chief Financial Officer of Capital One to
such effect.

(c) Federal Tax Opinion. Discover shall have received the opinion of
Sullivan & Cromwell LLP, in form and substance reasonably satisfactory to Discover, dated as
of the Closing Date, to the effect that, on the basis of facts, representations and assumptions set
forth or referred to in such opinion, the Mergers, taken together, will qualify as a
“reorganization” within the meaning of Section 368(a) of the Code. In rendering such opinion,
counsel may require and rely upon representations contained in certificates of officers of Capital
One, Discover and Merger Sub, reasonably satisfactory in form and substance to such counsel.

ARTICLE VIII

TERMINATION AND AMENDMENT

8.1 Termination. This Agreement may be terminated at any time prior to the
Effective Time, whether before or after receipt of the Requisite Discover Vote or the Requisite
Capital One Vote:

(a) by mutual written consent of Capital One and Discover;

(b) by either Capital One or Discover if any Governmental Entity that must
grant a Requisite Regulatory Approval has denied approval of the Mergers or the Bank Merger
and such denial has become final and nonappealable or any Governmental Entity of competent

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jurisdiction shall have issued a final and nonappealable order, injunction, decree or other legal
restraint or prohibition permanently enjoining or otherwise prohibiting or making illegal the
consummation of the Mergers or the Bank Merger, unless the failure to obtain a Requisite
Regulatory Approval shall be due to the failure of the party seeking to terminate this Agreement
to perform or observe the obligations, covenants and agreements of such party set forth herein;

(c) by either Capital One or Discover if the Merger shall not have been
consummated on or before February 19, 2025 (as it may be extended pursuant to this Section
8.1(c), the “Termination Date”), unless the failure of the Closing to occur by such date shall be
due to the failure of the party seeking to terminate this Agreement to perform or observe the
obligations, covenants and agreements of such party set forth herein; provided, that, if on such
date, any of the conditions to the Closing set forth in (A) Section 7.1(c) or (B) Section 7.1(e) (in
the case of clause (B), to the extent related to a Requisite Regulatory Approval) shall not have
been satisfied or waived on or prior to such date, but all other conditions set forth in Article VII
shall have been satisfied or waived (or in the case of conditions that by their nature can only be
satisfied at the Closing, shall then be capable of being satisfied if the Closing were to take place
on such date), then the Termination Date shall be automatically extended to May 19, 2025, and
such date shall become the Termination Date for purposes of this Agreement;

(d) by either Capital One or Discover (provided, that the terminating party is
not then in material breach of any representation, warranty, obligation, covenant or other
agreement contained herein) if there shall have been a breach of any of the obligations,
covenants or agreements or any of the representations or warranties (or any such representation
or warranty shall cease to be true) set forth in this Agreement on the part of Discover, in the case
of a termination by Capital One, or Capital One or Merger Sub, in the case of a termination by
Discover, which breach or failure to be true, either individually or in the aggregate with all other
breaches by such party (or failures of such representations or warranties to be true), would
constitute, if occurring or continuing on the Closing Date, the failure of a condition set forth in
Section 7.2, in the case of a termination by Capital One, or Section 7.3, in the case of a
termination by Discover, and which is not cured within forty-five (45) days following written
notice to Discover, in the case of a termination by Capital One, or Capital One, in the case of a
termination by Discover, or by its nature or timing cannot be cured during such period (or such
fewer days as remain prior to the Termination Date);

(e) by Discover, if (i) Capital One or the Board of Directors of Capital One
shall have made a Recommendation Change or (ii) Capital One or the Board of Directors of
Capital One shall have breached its obligations under Section 6.3 or 6.13 in any material respect;
or

(f) by Capital One, if (i) Discover or the Board of Directors of Discover shall
have made a Recommendation Change or (ii) Discover or the Board of Directors of Discover
shall have breached its obligations under Section 6.3 or 6.13 in any material respect.

8.2 Effect of Termination.

(a) In the event of termination of this Agreement by either Capital One or

Discover as provided in Section 8.1, this Agreement shall forthwith become void and have no

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effect, and none of Capital One, Discover, any of their respective Subsidiaries or any of the
officers or directors of any of them shall have any liability of any nature whatsoever hereunder,
or in connection with the transactions contemplated hereby, except that (i) Section 6.2(b)
(Access to Information; Confidentiality), Section 6.14 (Public Announcements), this Section 8.2
and Article IX shall survive any termination of this Agreement, and (ii) notwithstanding anything
to the contrary contained in this Agreement, none of Capital One nor Merger Sub nor Discover
shall be relieved or released from any liabilities or damages arising out of its willful and material
breach of any provision of this Agreement.

(b) (i) In the event that after the date of this Agreement and prior to the
termination of this Agreement, a bona fide Acquisition Proposal shall have been communicated
to or otherwise made known to the Board of Directors or senior management of Discover or shall
have been made directly to the stockholders of Discover or any person shall have publicly
announced (and not withdrawn at least two (2) business days prior to the Discover Meeting) an
Acquisition Proposal, in each case with respect to Discover and (A) (x) thereafter this Agreement
is terminated by either Capital One or Discover pursuant to Section 8.1(c) without the Requisite
Discover Vote having been obtained (and all other conditions set forth in Section 7.1 and Section
7.3 were satisfied or were capable of being satisfied prior to such termination) or (y) thereafter
this Agreement is terminated by Capital One pursuant to Section 8.1(d) as a result of a willful
breach, and (B) prior to the date that is twelve (12) months after the date of such termination,
Discover enters into a definitive agreement or consummates a transaction with respect to an
Acquisition Proposal (whether or not the same Acquisition Proposal as that referred to above),
then Discover shall, on the earlier of the date it enters into such definitive agreement and the date
of consummation of such transaction, pay Capital One, by wire transfer of same-day funds, a fee
equal to $1,380,000,000 (the “Termination Fee”); provided, that for purposes of this Section
8.2(b)(i), all references in the definition of Acquisition Proposal to “twenty-five percent (25%)”
shall instead refer to “fifty percent (50%).”

(ii) In the event that this Agreement is terminated by Capital One

pursuant to Section 8.1(f), then Discover shall pay Capital One, by wire transfer of same-day
funds, the Termination Fee within two (2) business days of the date of termination.

(c) (i) In the event that after the date of this Agreement and prior to the
termination of this Agreement, a bona fide Acquisition Proposal shall have been communicated
to or otherwise made known to the Board of Directors or senior management of Capital One or
shall have been made directly to the stockholders of Capital One or any person shall have
publicly announced (and not withdrawn at least two (2) business days prior to the Capital One
Meeting) an Acquisition Proposal, in each case with respect to Capital One and (A) (x) thereafter
this Agreement is terminated by either Capital One or Discover pursuant to Section 8.1(c)
without the Requisite Capital One Vote having been obtained (and all other conditions set forth
in Section 7.1 and Section 7.2 were satisfied or were capable of being satisfied prior to such
termination) or (y) thereafter this Agreement is terminated by Discover pursuant to Section
8.1(d) as a result of a willful breach, and (B) prior to the date that is twelve (12) months after the
date of such termination, Capital One enters into a definitive agreement or consummates a
transaction with respect to an Acquisition Proposal (whether or not the same Acquisition
Proposal as that referred to above), then Capital One shall, on the earlier of the date it enters into
such definitive agreement and the date of consummation of such transaction, pay Discover the

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Termination Fee by wire transfer of same-day funds; provided, that for purposes of this Section
8.2(c)(i), all references in the definition of Acquisition Proposal to “twenty-five percent (25%)”
shall instead refer to “fifty percent (50%).”

(ii) In the event that this Agreement is terminated by Discover

pursuant to Section 8.1(e), then Capital One shall pay Discover, by wire transfer of same-
day funds, the Termination Fee within two (2) business days of the date of termination.

(d) Notwithstanding anything to the contrary herein, but without limiting the
right of any party to recover liabilities or damages to the extent permitted herein, in no event
shall either party be required to pay the Termination Fee more than once.

(e) Each of Capital One and Discover acknowledges that the agreements
contained in this Section 8.2 are an integral part of the transactions contemplated by this
Agreement, and that, without these agreements, the other party would not enter into this
Agreement; accordingly, if Capital One or Discover, as the case may be, fails promptly to pay
the amount due pursuant to this Section 8.2, and, in order to obtain such payment, the other party
commences a suit which results in a judgment against the non-paying party for the Termination
Fee or any portion thereof, such non-paying party shall pay the costs and expenses of the other
party (including attorneys’ fees and expenses) in connection with such suit. In addition, if
Capital One or Discover, as the case may be, fails to pay the amounts payable pursuant to this
Section 8.2, then such party shall pay interest on such overdue amounts (for the period
commencing as of the date that such overdue amount was originally required to be paid and
ending on the date that such overdue amount is actually paid in full) at a rate per annum equal to
the “prime rate” published in The Wall Street Journal on the date on which such payment was
required to be made for the period commencing as of the date that such overdue amount was
originally required to be paid and ending on the date that such overdue amount is actually paid in
full.

ARTICLE IX

GENERAL PROVISIONS

9.1 Amendment. Subject to compliance with applicable law, this Agreement

may be amended by the parties hereto at any time before or after the receipt of the Requisite
Capital One Vote or the Requisite Discover Vote; provided, however, that after the receipt of the
Requisite Capital One Vote or the Requisite Discover Vote, there may not be, without further
approval of the stockholders of Capital One or Discover, as applicable, any amendment of this
Agreement that requires such further approval under applicable law. This Agreement may not be
amended except by an instrument in writing signed on behalf of each of the parties hereto.

9.2 Extension; Waiver. At any time prior to the Effective Time, each of the
parties hereto may, to the extent legally allowed, (a) extend the time for the performance of any
of the obligations or other acts of Capital One or Merger Sub, in the case of Discover, or
Discover, in the case of Capital One, (b) waive any inaccuracies in the representations and
warranties contained herein or in any document delivered pursuant hereto on the part of Capital
One or Merger Sub, in the case of Discover, or Discover, in the case of Capital One, and (c)

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waive compliance with any of the agreements or satisfaction of any conditions for its benefit
contained herein; provided, however, that after the receipt of the Requisite Capital One Vote or
the Requisite Discover Vote, there may not be, without further approval of the stockholders of
Capital One or Discover, as applicable, any extension or waiver of this Agreement or any portion
thereof that requires such further approval under applicable law. Any agreement on the part of a
party hereto to any such extension or waiver shall be valid only if set forth in a written
instrument signed on behalf of such party, but such extension or waiver or failure to insist on
strict compliance with an obligation, covenant, agreement or condition shall not operate as a
waiver of, or estoppel with respect to, any subsequent or other failure.

9.3 Nonsurvival of Representations, Warranties and Agreements. None of the

representations, warranties, obligations, covenants and agreements in this Agreement (or in any
certificate delivered pursuant to this Agreement) shall survive the Effective Time, except for
those set forth in Section 6.7 and for those other obligations, covenants and agreements
contained herein which by their terms apply in whole or in part after the Effective Time.

9.4 Expenses. Except as otherwise expressly provided in this Agreement, all

costs and expenses incurred in connection with this Agreement and the transactions
contemplated hereby shall be paid by the party incurring such expense; provided, however, that
the costs and expenses of printing and mailing the Joint Proxy Statement and all filing and other
fees paid to Governmental Entities in connection with the Merger and the other transactions
contemplated hereby shall be borne equally by Capital One and Discover.

9.5 Notices. All notices and other communications hereunder shall be in

writing and shall be deemed given (a) on the date of delivery if delivered personally, or if by e-
mail transmission (with confirmation of receipt requested), (b) on the earlier of confirmed receipt
or the fifth (5th) business day following the date of mailing if mailed by registered or certified
mail (return receipt requested) or (c) on the first (1st) business day following the date of dispatch
if delivered utilizing a next-day service by a recognized next-day courier (with confirmation) to
the parties at the following addresses (or at such other address for a party as shall be specified by
like notice):

(a) if to Discover, to:

2500 Lake Cook Road

Riverwoods, Illinois 60015

Attention: Chief Executive Officer and President

Executive Vice President, Chief Legal Officer, General
Counsel and Secretary

With a copy (which shall not constitute notice) to:

Sullivan & Cromwell LLP

125 Broad Street
New York, New York 10004
Attention: H. Rodgin Cohen

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 Mitchell S. Eitel
Jared M. Fishman
Email: [email protected]
[email protected]
[email protected]

and

(b) if to Capital One or Merger Sub, to:

Capital One Financial Corporation

1680 Capital One Drive
McLean, VA 22102

Attention: Executive Vice President, Corporate Development

Chief Counsel, Corporate and Strategic Transactions

With a copy (which shall not constitute notice) to:

Wachtell, Lipton, Rosen & Katz

51 West 52nd Street
New York, NY 10019
Attention: Edward D. Herlihy
Matthew M. Guest
Brandon C. Price
E-mail: [email protected]
[email protected]
[email protected]

9.6 Interpretation. The parties have participated jointly in negotiating and

drafting this Agreement. In the event that an ambiguity or a question of intent or interpretation
arises, this Agreement shall be construed as if drafted jointly by the parties, and no presumption
or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any
provision of this Agreement. When a reference is made in this Agreement to Articles, Sections,
Exhibits or Schedules, such reference shall be to an Article or Section of or Exhibit or Schedule
to this Agreement unless otherwise indicated. The table of contents and headings contained in
this Agreement are for reference purposes only and shall not affect in any way the meaning or
interpretation of this Agreement. Whenever the words “include,” “includes” or “including” are
used in this Agreement, they shall be deemed to be followed by the words “without limitation.”
The word “or” shall not be exclusive. References to “the date hereof” shall mean the date of this
Agreement. As used in this Agreement, the “knowledge” of Discover means the actual
knowledge of any of the representatives of Discover listed on Section 9.6 of the Discover
Disclosure Schedule, and the “knowledge” of Capital One means the actual knowledge of any of
the representatives of Capital One listed on Section 9.6 of the Capital One Disclosure Schedule.
As used herein, (a) the term “person” means any individual, corporation (including
not-for-profit), general or limited partnership, limited liability company, joint venture, estate,

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trust, association, organization, Governmental Entity or other entity of any kind or nature, (b) an
“Affiliate” of a specified person is any person that directly or indirectly controls, is controlled
by, or is under common control with, such specified person, (c) the term “made available” means
any document or other information that was (i) provided by one party or its representatives to the
other party and its representatives prior to the date hereof, (ii) included in the virtual data room
of a party prior to the date hereof or (iii) filed by a party with the SEC and publicly available on
EDGAR prior to the date hereof and (d) the “transactions contemplated hereby” and
“transactions contemplated by this Agreement” shall include the Mergers and the Bank Merger.
The Discover Disclosure Schedule and the Capital One Disclosure Schedule, as well as all other
schedules and all exhibits hereto, shall be deemed part of this Agreement and included in any
reference to this Agreement. Nothing contained herein shall require any party or person to take
any action in violation of applicable law.

9.7 Counterparts. This Agreement may be executed in counterparts, all of

which shall be considered one and the same agreement and shall become effective when
counterparts have been signed by each of the parties and delivered to the other parties, it being
understood that all parties need not sign the same counterpart.

9.8 Entire Agreement. This Agreement (including the documents and

instruments referred to herein) together with the Confidentiality Agreement constitutes the entire
agreement among the parties and supersedes all prior agreements and understandings, both
written and oral, among the parties with respect to the subject matter hereof.

9.9 Governing Law; Jurisdiction.

(a) This Agreement shall be governed by and construed in accordance with

the laws of the State of Delaware, without regard to any applicable conflicts of law principles.

(b) Each party agrees that it will bring any action or proceeding in respect of
any claim arising out of or related to this Agreement or the transactions contemplated hereby
exclusively in the Delaware Court of Chancery and any state appellate court therefrom within the
State of Delaware or, if the Delaware Court of Chancery declines to accept jurisdiction over a
particular matter, any federal or state court of competent jurisdiction located in the State of
Delaware (the “Chosen Courts”), and, solely in connection with claims arising under this
Agreement or the transactions that are the subject of this Agreement, (i) irrevocably submits to
the exclusive jurisdiction of the Chosen Courts, (ii) waives any objection to laying venue in any
such action or proceeding in the Chosen Courts, (iii) waives any objection that the Chosen
Courts are an inconvenient forum or do not have jurisdiction over any party and (iv) agrees that
service of process upon such party in any such action or proceeding will be effective if notice is
given in accordance with Section 9.5.

9.10 Waiver of Jury Trial. EACH PARTY ACKNOWLEDGES AND

AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS AGREEMENT
IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES, AND THEREFORE
EACH SUCH PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES,
TO THE EXTENT PERMITTED BY LAW AT THE TIME OF INSTITUTION OF THE
APPLICABLE LITIGATION, ANY RIGHT SUCH PARTY MAY HAVE TO A TRIAL BY

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JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT
OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED
BY THIS AGREEMENT. EACH PARTY CERTIFIES AND ACKNOWLEDGES THAT: (I)
NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS
REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD
NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER,
(II) EACH PARTY UNDERSTANDS AND HAS CONSIDERED THE IMPLICATIONS OF
THIS WAIVER, (III) EACH PARTY MAKES THIS WAIVER VOLUNTARILY, AND (IV)
EACH PARTY HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG
OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION
9.10.

9.11 Assignment; Third-Party Beneficiaries. Neither this Agreement nor any of

the rights, interests or obligations hereunder shall be assigned by any of the parties hereto
(whether by operation of law or otherwise) without the prior written consent of Discover, in the
case of Capital One or Merger Sub, or Capital One, in the case of Discover. Any purported
assignment in contravention hereof shall be null and void. Subject to the preceding sentence,
this Agreement will be binding upon, inure to the benefit of and be enforceable by the parties and
their respective successors and assigns. Except as otherwise specifically provided in Section 6.7,
this Agreement (including the documents and instruments referred to herein) is not intended to,
and does not, confer upon any person other than the parties hereto any rights or remedies
hereunder, including the right to rely upon the representations and warranties set forth herein.
The representations and warranties in this Agreement are the product of negotiations among the
parties hereto and are for the sole benefit of the parties. Any inaccuracies in such representations
and warranties are subject to waiver by the parties hereto in accordance herewith without notice
or liability to any other person. In some instances, the representations and warranties in this
Agreement may represent an allocation among the parties hereto of risks associated with
particular matters regardless of the knowledge of any of the parties hereto. Consequently,
persons other than the parties may not rely upon the representations and warranties in this
Agreement as characterizations of actual facts or circumstances as of the date of this Agreement
or as of any other date.

9.12 Specific Performance. The parties hereto agree that irreparable damage,
for which monetary damages (even if available) would not be an adequate remedy, would occur
if any provision of this Agreement were not performed in accordance with the terms hereof and,
accordingly, that the parties shall be entitled to specific performance of the terms hereof,
including an injunction or injunctions to prevent breaches or threatened breaches of this
Agreement or to enforce specifically the performance of the terms and provisions hereof
(including the parties’ obligation to consummate the Merger), in addition to any other remedy to
which they are entitled at law or in equity. Each of the parties hereby further waives (a) any
defense in any action for specific performance that a remedy at law would be adequate and (b)
any requirement under any law to post security or a bond as a prerequisite to obtaining equitable
relief.

9.13 Severability. Whenever possible, each provision or portion of any

provision of this Agreement shall be interpreted in such manner as to be effective and valid
under applicable law, but if any provision or portion of any provision of this Agreement is held

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to be invalid, illegal or unenforceable in any respect under any applicable law or rule in any
jurisdiction, such invalidity, illegality or unenforceability shall not affect any other provision or
portion of any provision in such jurisdiction, and this Agreement shall be reformed, construed
and enforced in such jurisdiction such that the invalid, illegal or unenforceable provision or
portion thereof shall be interpreted to be only so broad as is enforceable.

9.14 Confidential Supervisory Information. Notwithstanding any other

provision of this Agreement, no provision of this Agreement shall require or be interpreted to
require, and no disclosure, representation or warranty shall be made (or other action taken)
pursuant to this Agreement that would involve, the disclosure of confidential supervisory
information (including confidential supervisory information as defined in 12 C.F.R. § 261.2(b)
and as identified in 12 C.F.R. § 309.5(g)(8) or any similar state law) of a Governmental Entity by
any party to this Agreement to the extent prohibited by applicable law; provided that, to the
extent legally permissible, appropriate substitute disclosures or actions shall be made or taken
under circumstances in which the limitations of the preceding sentence apply.

9.15 Delivery by Facsimile or Electronic Transmission. This Agreement and

any signed agreement or instrument entered into in connection with this Agreement, and any
amendments or waivers hereto or thereto, to the extent signed and delivered by means of a
facsimile machine or by e-mail delivery of a “.pdf” format data file, shall be treated in all manner
and respects as an original agreement or instrument and shall be considered to have the same
binding legal effect as if it were the original signed version thereof delivered in person. No party
hereto or to any such agreement or instrument shall raise the use of a facsimile machine or e-mail
delivery of a “.pdf” format data file to deliver a signature to this Agreement or any amendment
hereto or the fact that any signature or agreement or instrument was transmitted or
communicated through the use of a facsimile machine or e-mail delivery of a “.pdf” format data
file as a defense to the formation of a contract and each party hereto forever waives any such
defense.

[Signature Page Follows]

-82-
 Exhibit A

Form of Bank Merger Agreement

 AGREEMENT AND PLAN OF MERGER
Discover Bank
with and into
Capital One, National Association
under the charter of
Capital One, National Association
under the title of
“Capital One, National Association”

THIS AGREEMENT AND PLAN OF MERGER (this “Agreement”) is made on this 19th day of
February, 2024, between Capital One, National Association (“Capital One Bank” or the “Resulting
Bank”), a national banking association, with its main office located at 1680 Capital One Drive, McLean,
Virginia 22102, and Discover Bank (“Discover Bank”), a Delaware-chartered bank, with its main office
located at 502 East Market Street, Greenwood, DE 19950. Collectively, Capital One Bank and Discover
Bank are referred to as the “Banks.”

WHEREAS, the Board of Directors of Capital One Bank has unanimously approved this
Agreement and authorized its execution pursuant to the authority given by and in accordance with the
provisions of the National Bank Act (the “Act”);

WHEREAS, the Board of Directors of Discover Bank has unanimously approved this Agreement
and authorized its execution pursuant to the authority given by and in accordance with the laws of the State
of Delaware;

WHEREAS, Capital One Financial Corporation (“Capital One”), which owns all of the
outstanding shares of Capital One Bank, Vega Merger Sub, Inc. (“Merger Sub”), a Delaware corporation
and a direct, wholly owned subsidiary of Capital One, and Discover Financial Services (“Discover”), which
owns all of the outstanding shares of Discover Bank, have entered into an Agreement and Plan of Merger
(the “Holding Company Agreement”), which, among other things, provides for (i) the merger of Merger
Sub with and into Discover (“First Merger”), with Discover continuing as the surviving corporation (the
“Surviving Company”), and (ii) immediately after the First Merger and as part of a single, integrated
transaction, Capital One shall cause the Surviving Company to be merged with and into Capital One (the
“Second Step Merger”), all subject to the terms and conditions of such Holding Company Agreement;

WHEREAS, Capital One, as the sole shareholder of Capital One Bank, and Discover, as the sole
stockholder of Discover Bank, have approved this Agreement; and

WHEREAS, each of the Banks is entering into this Agreement to provide for the merger of
Discover Bank with and into Capital One Bank, with Capital One Bank being the surviving bank of such
merger transaction (the “Bank Merger”) under the name of Capital One Bank, National Association,
pursuant to the provisions of, and with the effect provided in, 12 U.S.C. § 215a, 12 U.S.C. § 1828(c), the
regulations of the Office of the Comptroller of the Currency (the “OCC”) and, to the extent applicable, the
relevant banking statutes of the State of Delaware and the regulations of the Office of the State Bank
Commissioner of the State of Delaware and subject to, and immediately following, the closing of the Second
Step Merger.

NOW, THEREFORE, for and in consideration of the premises and the mutual promises and
agreements herein contained, the parties hereto agree as follows:
 SECTION 1

Subject to the terms and conditions of this Agreement and those set forth in the Holding Company
Agreement, at the Effective Time (as defined below) and pursuant to the Act, Discover Bank shall be
merged with and into Capital One Bank in the Bank Merger. Capital One Bank shall continue its existence
as the Resulting Bank under the charter of Capital One Bank, and the separate corporate existence of
Discover Bank shall cease. The closing of the Bank Merger shall become effective following the
satisfaction or effective waiver of all of the conditions precedent to the consummation of the Bank Merger
specified in this Agreement and at the time specified in the letter issued by the OCC in connection with the
Bank Merger (such time when the Bank Merger becomes effective, the “Effective Time”).

It is intended that the Bank Merger shall qualify as a “reorganization” within the meaning of Section
368(a) of the Internal Revenue Code of 1986, as amended (the “Code”), and that this Agreement is intended
to be and is adopted as a plan of reorganization for the purposes of Sections 354 and 361 of the Code.

SECTION 2

The name of the Resulting Bank at the Effective Time shall be “Capital One, National Association”
The Resulting Bank will exercise trust powers.

SECTION 3

The business of the Resulting Bank from and after the Effective Time shall be that of a national
banking association. This business of the Resulting Bank shall be conducted at its main office, which shall
be located at 1680 Capital One Drive, McLean, Virginia 22102, as well as at its legally established branches
and at the banking offices of Discover Bank, all of which shall be acquired in the Bank Merger, in each
case without limiting the authority under applicable law of the Resulting Bank to close, relocate, or
otherwise make any changes regarding any such branch. The deposit accounts of the Resulting Bank will
be insured by the Federal Deposit Insurance Corporation in accordance with the Federal Deposit Insurance
Act.

SECTION 4

At the Effective Time, the amount of issued and outstanding capital stock of the Resulting Bank
shall be the amount of capital stock of Capital One Bank issued and outstanding immediately before the
Effective Time.

SECTION 5

All assets of Discover Bank and Capital One Bank, as they exist at the Effective Time, shall pass
to and vest in the Resulting Bank without any conveyance or other transfer; the Resulting Bank shall be
considered the same business and corporate entity as each constituent bank with all the rights, powers and
duties of each constituent bank; and the Resulting Bank shall be responsible for all of the liabilities of every
kind and description, of Discover Bank and Capital One Bank existing as of the Effective Time, all in
accordance with the provisions of the Act.

SECTION 6

At the Effective Time, each outstanding share of common stock of Discover Bank shall be canceled
with no cash, shares of common stock or other property being paid therefor.

-2-
 Outstanding certificates representing shares of the common stock of Discover Bank shall, at the
Effective Time, be canceled.

SECTION 7

Upon the Effective Time, the then-outstanding shares of Capital One Bank’s common stock shall
continue to remain outstanding shares of Capital One Bank’s common stock, all of which shall continue to
be owned by Capital One.

SECTION 8

Effective as of the Effective Time: (i) the directors of the Resulting Bank shall be the persons
serving as directors of Capital One Bank immediately before the Effective Time as well as any persons duly
appointed as directors by Capital One as set forth in Section 6.12 of the Holding Company Agreement; and
(ii) the officers of the Resulting Bank shall be the persons serving as officers of Capital One Bank
immediately before the Effective Time as well any persons duly appointed as officers by Capital One Bank.

SECTION 9

This Agreement has been approved by Capital One, which owns all of the outstanding shares of
Capital One Bank, and by Discover, which owns all of the outstanding shares of Discover Bank.

SECTION 10

The Bank Merger and the respective obligations of each party hereto to consummate the Bank
Merger are subject to the fulfillment or effective waiver of each of the following conditions:

(a) Each of the First Merger and the Second Step Merger shall have become effective.

(b) The OCC shall have approved the Bank Merger and shall have issued all other necessary
authorizations and approvals for the Bank Merger, and any statutory waiting period shall
have expired or been terminated.

This Agreement may be amended or terminated, and the Bank Merger may be abandoned, only by
the mutual written agreement of Capital One Bank and Discover Bank at any time, whether before or after
filings are made for regulatory approval of the Bank Merger and notwithstanding the prior approval of this
Agreement and the Bank Merger by the sole shareholder of Capital One Bank or Discover Bank.

SECTION 11

Effective as of the Effective Time, the Articles of Association and Bylaws of the Resulting Bank
shall consist of the Articles of Association and Bylaws of Capital One Bank as in effect immediately before
the Effective Time.

SECTION 12

This Agreement shall automatically terminate in the event and at the time of any termination of the
Holding Company Agreement.

-3-
 SECTION 13

Each of the parties hereto represents and warrants that this Agreement has been duly authorized,
executed and delivered by such party and (assuming due authorization, execution and delivery by the other
party) constitutes a valid and binding obligation of such party, enforceable against it in accordance with the
terms hereof (except in all cases as such enforceability may be limited by bankruptcy, insolvency,
fraudulent transfer, moratorium, reorganization or similar laws of general applicability affecting the rights
of creditors generally and the availability of equitable remedies).

Subject in all respects to Section 6.1 of the Holding Company Agreement, each of the parties shall
use its reasonable best efforts to take, or cause to be taken, all actions necessary, proper or advisable to
comply promptly with all legal requirements that may be imposed on such party or its Subsidiaries with
respect to the Bank Merger and, subject to the conditions set forth in Section 10 hereof, to consummate the
transactions contemplated by this Agreement.

None of the representations, warranties or agreements in this Agreement, or in any instrument

delivered pursuant to this Agreement, shall survive the Effective Time or valid termination of this
Agreement.

This Agreement embodies the entire agreement and understanding of the Banks with respect to the
transactions contemplated hereby, and supersedes all other prior commitments, arrangements or
understandings, both oral and written, among the Banks with respect to the subject matter hereof, other than
the Holding Company Agreement.

The provisions of this Agreement are intended to be interpreted and construed in a manner so as to
make such provisions valid, binding and enforceable. If any provision of this Agreement is determined to
be partially or wholly invalid, illegal or unenforceable, then such provision shall be deemed to be modified
or restricted to the extent necessary to make such provision valid, binding and enforceable; or, if such
provision cannot be modified or restricted in a manner so as to make such provision valid, binding and
enforceable, then such provision shall be deemed to be excised from this Agreement and the validity,
binding effect and enforceability of the remaining provisions of this Agreement shall not be affected or
impaired in any manner.

No waiver, amendment, modification or change of any provision of this Agreement shall be

effective unless and until made in writing and signed by the Banks. No waiver, forbearance or failure by
any Bank of its rights to enforce any provision of this Agreement shall constitute a waiver or estoppel of
such Bank’s right to enforce any other provision of this Agreement or a continuing waiver by such Bank of
compliance with any provision hereof.

All notices and other communications hereunder shall be in writing and shall be deemed given (a)
on the date of delivery if delivered personally, or if by e-mail transmission (with confirmation of receipt
requested), (b) on the earlier of confirmed receipt or the fifth (5th) business day following the date of
mailing if mailed by registered or certified mail (return receipt requested) or (c) on the first (1st) business
day following the date of dispatch if delivered utilizing a next-day service by a recognized next-day courier
(with confirmation) to the parties at the following addresses (or at such other address for a party as shall be
specified by like notice):

-4-
 (a) if to Discover Bank, to:

Discover Bank
2500 Lake Cook Road
Riverwoods, Illinois 60015

Attention: Chief Executive Officer and President

Executive Vice President, Chief Legal Officer, General
Counsel and Secretary

With a copy (which shall not constitute notice) to:

Sullivan & Cromwell LLP

125 Broad Street
New York, New York 10004

Attention: H. Rodgin Cohen

Mitchell S. Eitel
Jared M. Fishman
Email: [email protected]
[email protected]
[email protected]

and

(b) if to Capital One Bank, to:

Capital One, National Association

1680 Capital One Drive
McLean, VA 22102

Attention: Executive Vice President, Corporate Development

Chief Counsel, Corporate and Strategic Transactions

With a copy (which shall not constitute notice) to:

Wachtell, Lipton, Rosen & Katz

51 West 52nd Street
New York, NY 10019

Attention: Edward D. Herlihy

Matthew M. Guest
Brandon C. Price
E-mail: [email protected]
[email protected]
[email protected]

Each Bank agrees that it will bring any action or proceeding in respect of any claim arising out of
or related to this Agreement or the transactions contemplated hereby exclusively in the Delaware Court of
Chancery and any state appellate court therefrom within the State of Delaware or, if the Delaware Court of
Chancery declines to accept jurisdiction over a particular matter, any federal or state court of competent

-5-
jurisdiction located in the State of Delaware (the “Chosen Courts”), and, solely in connection with claims
arising under this Agreement or the transactions that are the subject of this Agreement, (i) irrevocably
submits to the exclusive jurisdiction of the Chosen Courts, (ii) waives any objection to laying venue in any
such action or proceeding in the Chosen Courts, (iii) waives any objection that the Chosen Courts are an
inconvenient forum or do not have jurisdiction over any party and (iv) agrees that service of process upon
such party in any such action or proceeding will be effective if notice is given in accordance with this
Section 13.

Except to the extent federal law is applicable, this Agreement shall be governed by and construed
and enforced in accordance with the laws of the State of Delaware without regard to conflicts of laws
principles. EACH OF THE PARTIES HERETO WAIVES ANY RIGHT TO REQUEST A TRIAL BY
JURY IN ANY LITIGATION WITH RESPECT TO THIS AGREEMENT AND REPRESENTS THAT
COUNSEL HAS BEEN CONSULTED SPECIFICALLY AS TO THIS WAIVER.

Neither this Agreement nor any of the rights, interests or obligations may be assigned by any of the
parties hereto (whether by operation of law or otherwise) and any attempted assignment in contravention
hereof shall be null and void. Subject to the preceding sentence, this Agreement will be binding upon, inure
to the benefit of, and be enforceable by, the Banks’ respective successors and permitted assigns. Unless
otherwise expressly stated herein, this Agreement shall not benefit or create any right of action in or on
behalf of any person or entity other than the Banks.

This Agreement may be executed in counterparts (including by facsimile or optically scanned

electronic mail attachment), each of which shall be deemed to be original, but all of which together shall
constitute one and the same instrument.

[Signature page follows]

-6-
 IN WITNESS WHEREOF, Capital One, National Association and Discover Bank have entered
into this Agreement as of the date and year first set forth above.

Capital One, National Association

By:
Name:
Title:

Discover Bank

By:
Name:
Title:

[Signature Page to Bank Merger Agreement]

 (;+,%,7

Board of Governors of the Federal Reserve System

Federal Deposit Insurance Corporation
Office of the Comptroller of the Currency
Federal Financial Institutions Examination Council

Consolidated Reports of Condition and Income for A Bank With

Domestic and Foreign Offices - FFIEC 031

Institution Name CAPITAL ONE, NATIONAL ASSOCIATION

City MC LEAN
State VA
Zip Code 22102
Call Report Report Date 12/31/2023
Report Type 031
RSSD-ID 112837
FDIC Certificate Number 4297
OCC Charter Number 13688
ABA Routing Number 56073502
Last updated on 1/30/2024
Federal Financial Institutions Examination Council

Signature Page

Consolidated Reports of Condition and Income for A Bank

With Domestic and Foreign Offices - FFIEC 031

Report at the close of business December 31, 2023 (20231231)

(RCON 9999)
This report is required by law: 12 U.S.C. §324 (State member Unless the context indicates otherwise, the term “bank” in this
banks); 12 U.S.C. §1817 (State non member banks); 12 U.S.C. report form refers to both banks and savings associations.
§161 (National banks); and 12 U.S.C. §1464 (Savings
associations).

NOTE: Each bank’s board of directors and senior management schedules) for this report date have been prepared in conformance
are responsible for establishing and maintaining an effective with the instructions issued by the appropriate Federal regulatory
system of internal control, including controls over the Reports of authority and are true and correct to the best of my knowledge
Condition and Income. The Reports of Condition and Income are and belief.
to be prepared in accordance with federal regulatory authority
We, the undersigned directors (trustees), attest to the correctness
instructions.The Reports of Condition and Income must be signed
of the Reports of Condition and Income (including the supporting
by the Chief Financial Officer (CFO) of the reporting bank (or by
schedules) for this report date and declare that the Reports of
the individual performing an equivalent function) and attested to
Condition and Income have been examined by us and to the best
by not less than two directors (trustees) for state non member
of our knowledge and belief have been prepared in conformance
banks and three directors for state member banks, national banks,
with the instructions issued by the appropriate Federal regulatory
and savings associations.
authority and are true and correct.
I, the undersigned CFO (or equivalent) of the named bank, attest
that the Reports of Condition and Income (including the supporting

Signature of Chief Financial Officer (or Equivalent) Director (Trustee)

Date of Signature Director (Trustee)

Director (Trustee)

Submission of Reports FDIC Certificate Number 4297 (RSSD 9050)

Each bank must file its Reports of Condition and Income (Call To fulfill the signature and attestation requirement for the Reports
Report) data by either: of Condition and Income for this report date, attach your bank’s
completed signature page (or a photocopy or a computer
(a) Using computer software to prepare its Call Report and then
generated version of this page) to the hard-copy record of the data
submitting the report data directly to the FFIEC’s Central
file submitted to the CDR that your bank must place in its files.
Data Repository (CDR), an Internet-based system for
datacollection (https://cdr.ffiec.gov/cdr/), or The appearance of your bank’s hard-copy record of the submitted
(b) Completing its Call Report in paper form and arranging with data file need not match exactly the appearance of the FFIEC’s
a software vendor or another party to convert the data in to sample report forms, but should show at least the caption of each
the electronic format that can be processed by the CDR. Call Report item and the reported amount.
The software vendor or other party then must electronically
CAPITAL ONE, NATIONAL ASSOCIATION
submit the bank’s data file to the CDR. Legal Title of Bank (RSSD 9017)

For technical assistance with submissions to the CDR, please MC LEAN

contact the CDR Help Desk by telephone at (888) CDR-3111, by City (RSSD 9130)
fax at (703) 774-3946, or by e-mail at [email protected]. VA 22102
State Abbreviation (RSSD 9200) Zip Code (RSSD 9220)

The estimated average burden associated with this information collection is 50.4 hours per respondent and is estimated to vary from 20 to 775 hours per response, depending
on individual circumstances. Burden estimates include the time for reviewing instructions, gathering and maintaining data in the required form, and completing the information
collection, but exclude the time for compiling and maintaining business records in the normal course of a respondent’s activities. A Federal agency may not conduct or
sponsor, and an organization (or a person) is not required to respond to a collection of information, unless it displays a currently valid OMB control number. Comments
concerning the accuracy of this burden estimate and suggestions for reducing this burden should be directed to the Office of Information and Regulatory Affairs, Office of
Management and Budget, Washington, DC 20503, and to one of the following: Secretary, Board of Governors of the Federal Reserve System, 20th and C Streets, NW,
Washington, DC 20551; Legislative and Regulatory Analysis Division, Office of the Comptroller of the Currency, Washington, DC 20219; Assistant Executive Secretary,
Federal Deposit Insurance Corporation, Washington, DC 20429.
Consolidated Reports of Condition and Income for A Bank With Domestic and Foreign
Offices - FFIEC 031

Table of Contents
Schedule RC-C Part I - Loans and Leases(Form
Signature Page............................................................1 Type - 031)..........................................................24

Table of Contents.........................................................2 Schedule RC-C Part II - Loans to Small Businesses

and Small Farms(Form Type - 031).....................29
Emergency Contact Information..................................4
Schedule RC-D - Trading Assets and Liabilities(Form
Contact Information for the Reports of Condition and Type - 031)..........................................................30
Income...................................................................4
Schedule RC-E Part I - Deposits in Domestic
USA PATRIOT Act Section 314(a) Anti-Money Offices(Form Type - 031).....................................32
Laundering Contact Information............................5
Schedule RC-E Part II - Deposits in Foreign Offices
Bank Demographic Information(Form Type - including Edge and Agreement subsidiaries and
031).......................................................................6 IBFs(Form Type - 031).........................................34

Contact Information(Form Type - 031).........................6 Schedule RC-F - Other Assets(Form Type -

031).....................................................................35
Schedule RI - Income Statement(Form Type -
031).......................................................................8 Schedule RC-G - Other Liabilities(Form Type -
031).....................................................................36
Schedule RI-A - Changes in Bank Equity
Capital(Form Type - 031).....................................11 Schedule RC-H - Selected Balance Sheet Items for
Domestic Offices(Form Type - 031).....................37
Schedule RI-B Part I - Charge-offs and Recoveries
on Loans and Leases(Form Type - 031)..............12 Schedule RC-I - Assets and Liabilities of IBFs(Form
Type - 031)..........................................................38
Schedule RI-B Part II - Changes in Allowances for
Credit Losses(Form Type - 031)..........................13 Schedule RC-K - Quarterly Averages(Form Type -
031).....................................................................38
Schedule RI-C Part I - Disaggregated Data on the
Allowance for Loan and Lease Losses(Form Schedule RC-L - Derivatives and Off-Balance Sheet
Type - 031)..........................................................14 Items(Form Type - 031).......................................39

Schedule RI-C Part II - Disaggregated Data on the Schedule RC-M - Memoranda(Form Type -
Allowances for Credit Losses(Form Type - 031).....................................................................43
031).....................................................................15
Schedule RC-N - Past Due and Nonaccrual Loans
Schedule RI-D - Income from Foreign Offices(Form Leases and Other Assets(Form Type -
Type - 031)..........................................................15 031).....................................................................46

Schedule RI-E - Explanations (Form Type - Schedule RC-O - Other Data for Deposit Insurance
031).....................................................................16 and FICO Assessments(Form Type - 031)..........49

Schedule RC - Balance Sheet(Form Type - Schedule RC-P - 1-4 Family Residential Mortgage
031).....................................................................19 Banking Activities in Domestic Offices(Form
Type - 031)..........................................................53
Schedule RC-A - Cash and Balances Due From
Depository Institutions(Form Type - 031).............20

Schedule RC-B - Securities(Form Type - 031)...........21

For information or assistance, national banks, state nonmember banks, and savings associations should contact the FDIC’s Data
Collection and Analysis Section, 550 17th Street, NW, Washington, DC 20429, toll free on (800) 688-FDIC(3342), Monday through
Friday between 8:00 a.m. and 5:00 p.m., Eastern Time. State member banks should contact their Federal Reserve District Bank.
Board of Governors of the Federal Reserve System, Federal Deposit Insurance Corporation, Office of the Comptroller of the Currency
Legend: NR - Not Reported, CONF - Confidential
Schedule RC-Q - Assets and Liabilities Measured
at Fair Value on a Recurring Basis(Form Type
- 031)...................................................................53

Schedule RC-R Part I - Regulatory Capital

Components and Ratios(Form Type - 031).........58

Schedule RC-R Part II - Risk-Weighted Assets(Form

Type - 031)..........................................................62

Schedule RC-S - Servicing Securitization and Asset

Sale Activities(Form Type - 031)..........................72

Schedule RC-T - Fiduciary and Related

Services(Form Type - 031)..................................73

Schedule RC-V - Variable Interest Entities(Form

Type - 031)..........................................................75

Optional Narrative Statement Concerning the

Amounts Reported in the Consolidated Reports
of Condition and Income(Form Type - 031).........76

For information or assistance, national banks, state nonmember banks, and savings associations should contact the FDIC’s Data
Collection and Analysis Section, 550 17th Street, NW, Washington, DC 20429, toll free on (800) 688-FDIC(3342), Monday through
Friday between 8:00 a.m. and 5:00 p.m., Eastern Time. State member banks should contact their Federal Reserve District Bank.
Board of Governors of the Federal Reserve System, Federal Deposit Insurance Corporation, Office of the Comptroller of the Currency
Legend: NR - Not Reported, CONF - Confidential
Contact Information for the Reports of Condition and Income
To facilitate communication between the Agencies and the bank concerning the Reports of Condition
and Income, please provide contact information for (1) the Chief Financial Officer (or equivalent) of
the bank signing the reports for this quarter, and (2) the person at the bank—other than the Chief
Financial Officer (or equivalent)—to whom questions about the reports should be directed. If the Chief
Financial Officer (or equivalent) is the primary contact for questions about the reports, please provide
contact information for another person at the bank who will serve as a secondary contact for
communications between the Agencies and the bank concerning the Reports of Condition and Income.
Enter “none” for the contact’s e-mail address or fax number if not available. Contact information for
the Reports of Condition and Income is for the confidential use of the Agencies and will not be released
to the public.

Chief Financial Officer (or Equivalent) Signing Other Person to Whom Questions about the
the Reports Reports Should be Directed
CONF CONF
Name (TEXT C490) Name (TEXT C495)

CONF CONF
Title (TEXT C491) Title (TEXT C496)

CONF CONF
E-mail Address (TEXT C492) E-mail Address (TEXT 4086)

CONF CONF
Area Code / Phone Number / Extension (TEXT C493) Area Code / Phone Number / Extension (TEXT 8902)

CONF CONF
Area Code / FAX Number (TEXT C494) Area Code / FAX Number (TEXT 9116)

Emergency Contact Information

This information is being requested so the Agencies can distribute critical, time-sensitive information
to emergency contacts at banks. Please provide primary contact information for a senior official of
the bank who has decision-making authority. Also provide information for a secondary contact if
available. Enter “none” for the contact’s e-mail address or fax number if not available. Emergency
contact information is for the confidential use of the Agencies and will not be released to the public.

Primary Contact Secondary Contact

CONF CONF
Name (TEXT C366) Name (TEXT C371)

CONF CONF
Title (TEXT C367) Title (TEXT C372)

CONF CONF
E-mail Address (TEXT C368) E-mail Address (TEXT C373)

CONF CONF
Area Code / Phone Number / Extension (TEXT C369) Area Code / Phone Number / Extension (TEXT C374)

CONF CONF
Area Code / FAX Number (TEXT C370) Area Code / FAX Number (TEXT C375)
USA PATRIOT Act Section 314(a) Anti-Money Laundering
Contact Information

This information is being requested to identify points-of-contact who are in charge of your bank’s
USA PATRIOT Act Section 314(a) information requests. Bank personnel listed could be contacted
by law enforcement officers or the Financial Crimes Enforcement Network (FinCEN) for additional
information related to specific Section 314(a) search requests or other anti-terrorist financing and
anti- money laundering matters. Communications sent by FinCEN to the bank for purposes other
than Section 314(a) notifications will state the intended purpose and should be directed to the
appropriate bank personnel for review. Any disclosure of customer records to law enforcement officers
or FinCEN must be done in compliance with applicable law, including the Right to Financial Privacy
Act (12 U.S.C. 3401 et seq.).

Please provide information for a primary and secondary contact. Information for a third and fourth
contact may be provided at the bank’s option. Enter “none” for the contact’s e-mail address if not
available. This contact information is for the confidential use of the Agencies, FinCEN, and law
enforcement officers and will not be released to the public.

Primary Contact Third Contact

CONF CONF
Name (TEXT C437) Name (TEXT C870)

CONF CONF
Title (TEXT C438) Title (TEXT C871)

CONF CONF
E-mail Address (TEXT C439) E-mail Address (TEXT C368)

CONF CONF
Area Code / Phone Number / Extension (TEXT C440) Area Code / Phone Number / Extension (TEXT C873)

Secondary Contact Fourth Contact

CONF CONF
Name (TEXT C442) Name (TEXT C875)

CONF CONF
Title (TEXT C443) Title (TEXT C876)

CONF CONF
E-mail Address (TEXT C444) E-mail Address (TEXT C877)

CONF CONF
Area Code / Phone Number / Extension (TEXT 8902) Area Code / Phone Number / Extension (TEXT C878)
 CAPITAL ONE, NATIONAL ASSOCIATION FFIEC 031
RSSD-ID 112837 Report Date 12/31/2023
Last Updated on 1/30/2024 6

Bank Demographic Information(Form Type - 031)

Dollar amounts in thousands
1. Reporting date............................................................................................................................................................. RCON9999 20231231 1.

2. FDIC certificate number............................................................................................................................................... RSSD9050 4297 2.

3. Legal title of bank........................................................................................................................................................ RSSD9017 Click here for value 3.

4. City.............................................................................................................................................................................. RSSD9130 McLean 4.

5. State abbreviation........................................................................................................................................................ RSSD9200 VA 5.

6. Zip code....................................................................................................................................................................... RSSD9220 22102 6.

7. Legal Entity Identifier (LEI) (Report only if your institution already has an LEI.)......................................................... RCON9224 Click here for value 7.

(RCON9224) 207ALC1P1YM0OVDV0K75

(RSSD9017) Capital One-National Association

Contact Information(Form Type - 031)

Dollar amounts in thousands
1. Contact Information for the Reports of Condition and Income 1.

a. Chief Financial Officer (or Equivalent) Signing the Reports 1.a.

1. Name............................................................................................................................................................ TEXTC490 CONF 1.a.1.

2. Title............................................................................................................................................................... TEXTC491 CONF 1.a.2.

3. E-mail Address.............................................................................................................................................. TEXTC492 CONF 1.a.3.

4. Telephone...................................................................................................................................................... TEXTC493 CONF 1.a.4.

5. FAX............................................................................................................................................................... TEXTC494 CONF 1.a.5.

b. Other Person to Whom Questions about the Reports Should be Directed 1.b.

1. Name............................................................................................................................................................ TEXTC495 CONF 1.b.1.

2. Title............................................................................................................................................................... TEXTC496 CONF 1.b.2.

3. E-mail Address.............................................................................................................................................. TEXT4086 CONF 1.b.3.

4. Telephone...................................................................................................................................................... TEXT8902 CONF 1.b.4.

5. FAX............................................................................................................................................................... TEXT9116 CONF 1.b.5.

2. Person to whom questions about Schedule RC-T - Fiduciary and Related Services should be directed 2.

a. Name and Title..................................................................................................................................................... TEXTB962 CONF 2.a.

b. E-mail Address..................................................................................................................................................... TEXTB926 CONF 2.b.

c. Telephone............................................................................................................................................................. TEXTB963 CONF 2.c.

d. FAX....................................................................................................................................................................... TEXTB964 CONF 2.d.

3. Emergency Contact Information 3.

a. Primary Contact 3.a.

1. Name............................................................................................................................................................ TEXTC366 CONF 3.a.1.

2. Title............................................................................................................................................................... TEXTC367 CONF 3.a.2.

3. E-mail Address.............................................................................................................................................. TEXTC368 CONF 3.a.3.

4. Telephone...................................................................................................................................................... TEXTC369 CONF 3.a.4.

5. FAX............................................................................................................................................................... TEXTC370 CONF 3.a.5.

b. Secondary Contact 3.b.

1. Name............................................................................................................................................................ TEXTC371 CONF 3.b.1.

2. Title............................................................................................................................................................... TEXTC372 CONF 3.b.2.

3. E-mail Address.............................................................................................................................................. TEXTC373 CONF 3.b.3.

4. Telephone...................................................................................................................................................... TEXTC374 CONF 3.b.4.

5. FAX............................................................................................................................................................... TEXTC375 CONF 3.b.5.

4. USA PATRIOT Act Section 314(a) Anti-Money Laundering Contact Information 4.

a. Primary Contact 4.a.

 CAPITAL ONE, NATIONAL ASSOCIATION FFIEC 031
RSSD-ID 112837 Report Date 12/31/2023
Last Updated on 1/30/2024 7

Dollar amounts in thousands

1. Name............................................................................................................................................................ TEXTC437 CONF 4.a.1.

2. Title............................................................................................................................................................... TEXTC438 CONF 4.a.2.

3. E-mail Address.............................................................................................................................................. TEXTC439 CONF 4.a.3.

4. Telephone...................................................................................................................................................... TEXTC440 CONF 4.a.4.

b. Secondary Contact 4.b.

1. Name............................................................................................................................................................ TEXTC442 CONF 4.b.1.

2. Title............................................................................................................................................................... TEXTC443 CONF 4.b.2.

3. E-mail Address.............................................................................................................................................. TEXTC444 CONF 4.b.3.

4. Telephone...................................................................................................................................................... TEXTC445 CONF 4.b.4.

c. Third Contact 4.c.

1. Name............................................................................................................................................................ TEXTC870 CONF 4.c.1.

2. Title............................................................................................................................................................... TEXTC871 CONF 4.c.2.

3. E-mail Address.............................................................................................................................................. TEXTC872 CONF 4.c.3.

4. Telephone...................................................................................................................................................... TEXTC873 CONF 4.c.4.

d. Fourth Contact 4.d.

1. Name............................................................................................................................................................ TEXTC875 CONF 4.d.1.

2. Title............................................................................................................................................................... TEXTC876 CONF 4.d.2.

3. E-mail Address.............................................................................................................................................. TEXTC877 CONF 4.d.3.

4. Telephone...................................................................................................................................................... TEXTC878 CONF 4.d.4.

5. Chief Executive Officer Contact Information 5.

a. Chief Executive Officer 5.a.

1. Name............................................................................................................................................................ TEXTFT42 CONF 5.a.1.

2. E-mail Address.............................................................................................................................................. TEXTFT44 CONF 5.a.2.

3. Telephone...................................................................................................................................................... TEXTFT43 CONF 5.a.3.

4. FAX............................................................................................................................................................... TEXTFT45 CONF 5.a.4.

 CAPITAL ONE, NATIONAL ASSOCIATION FFIEC 031
RSSD-ID 112837 Report Date 12/31/2023
Last Updated on 1/30/2024 8

Schedule RI - Income Statement(Form Type - 031)

All Report of Income schedules are to be reported on a calendar year-to-date basis in thousands of dollars.

Dollar amounts in thousands

1. Interest income: 1.

a. Interest and fee income on loans: 1.a.

1. In domestic offices: 1.a.1.

a. Loans secured by real estate: 1.a.1.a.

1. Loans secured by 1-4 family residential properties........................................................................ RIAD4435 6,395 1.a.1.a.1.

2. All other loans secured by real estate............................................................................................ RIAD4436 1,936,941 1.a.1.a.2.

b. Loans to finance agricultural production and other loans to farmers..................................................... RIAD4024 94 1.a.1.b.

c. Commercial and industrial loans............................................................................................................ RIAD4012 3,611,490 1.a.1.c.

d. Loans to individuals for household, family, and other personal expenditures: 1.a.1.d.

1. Credit cards.................................................................................................................................... RIADB485 22,944,216 1.a.1.d.1.

2. Other (includes revolving credit plans other than credit cards, automobile loans, and other consumer
RIADB486 5,958,626 1.a.1.d.2.
loans).................................................................................................................................................
e. Loans to foreign governments and official institutions........................................................................... RIAD4056 0 1.a.1.e.

f. All other loans in domestic offices.......................................................................................................... RIADB487 1,661,610 1.a.1.f.

2. In foreign offices, Edge and Agreement subsidiaries, and IBFs................................................................... RIAD4059 1,288,956 1.a.2.

3. Total interest and fee income on loans (sum of items 1.a.(1)(a) through 1.a.(2)).......................................... RIAD4010 37,408,328 1.a.3.

b. Income from lease financing receivables............................................................................................................. RIAD4065 0 1.b.

1 RIAD4115 1,937,226 1.c.
c. Interest income on balances due from depository institutions ............................................................................
d. Interest and dividend income on securities: 1.d.

1. U.S. Treasury securities and U.S. Government agency obligations (excluding mortgage-backed securities). RIADB488 242,527 1.d.1.

2. Mortgage-backed securities.......................................................................................................................... RIADB489 2,039,333 1.d.2.

3. All other securities (includes securities issued by states and political subdivisions in the U.S.)................... RIAD4060 231,925 1.d.3.

e. Interest income from trading assets..................................................................................................................... RIAD4069 0 1.e.

f. Interest income on federal funds sold and securities purchased under agreements to resell............................... RIAD4020 8 1.f.

g. Other interest income........................................................................................................................................... RIAD4518 19,028 1.g.

h. Total interest income (sum of items 1.a.(3) through 1.g)...................................................................................... RIAD4107 41,878,375 1.h.

2. Interest expense: 2.

a. Interest on deposits: 2.a.

1. Interest on deposits in domestic offices: 2.a.1.

a.Transaction accounts (interest-bearing demand deposits, NOW accounts, ATS accounts, and telephone
RIAD4508 797,211 2.a.1.a.
and preauthorized transfer accounts)........................................................................................................
b. Nontransaction accounts: 2.a.1.b.

1. Savings deposits (includes MMDAs).............................................................................................. RIAD0093 6,583,782 2.a.1.b.1.

2. Time deposits of $250,000 or less.................................................................................................. RIADHK03 2,801,644 2.a.1.b.2.

3. Time deposits of more than $250,000............................................................................................ RIADHK04 536,922 2.a.1.b.3.

2. Interest on deposits in foreign offices, Edge and Agreement subsidiaries, and IBFs................................... RIAD4172 0 2.a.2.

b. Expense of federal funds purchased and securities sold under agreements to repurchase................................ RIAD4180 8,504 2.b.

c. Interest on trading liabilities and other borrowed money...................................................................................... RIAD4185 1,443,673 2.c.

d. Interest on subordinated notes and debentures................................................................................................... RIAD4200 15,008 2.d.

e. Total interest expense (sum of items 2.a through 2.d).......................................................................................... RIAD4073 12,186,744 2.e.

3. Net interest income (item 1.h minus 2.e)..................................................................................................................... RIAD4074 29,691,631 3.

1 RIADJJ33 10,426,994 4.
4. Provision for loan and lease losses ............................................................................................................................
5. Noninterest income: 5.
2 RIAD4070 0 5.a.
a. Income from fiduciary activities ..........................................................................................................................
b. Service charges on deposit accounts in domestic offices.................................................................................... RIAD4080 72,150 5.b.

1. Includes interest income on time certificates of deposit not held for trading.
1. Institutions that have adopted ASU 2016-13 should report in item 4, the provisions for credit losses for all financial assets and off-balance-sheet credit exposures that fall within the scope of
the standard.
2. For banks required to complete Schedule RC-T, items 14 through 22, income from fiduciary activities reported in Schedule RI, item 5.a, must equal the amount reported in Schedule RC-T, item
22.
 CAPITAL ONE, NATIONAL ASSOCIATION FFIEC 031
RSSD-ID 112837 Report Date 12/31/2023
Last Updated on 1/30/2024 9

Dollar amounts in thousands

3 RIADA220 111,904 5.c.
c. Trading revenue ...................................................................................................................................................
d. Income from securities-related and insurance activities: 5.d.

1. Fees and commissions from securities brokerage........................................................................................ RIADC886 0 5.d.1.

2. Investment banking, advisory, and underwriting fees and commissions....................................................... RIADC888 111,095 5.d.2.

3. Fees and commissions from annuity sales................................................................................................... RIADC887 0 5.d.3.

4. Underwriting income from insurance and reinsurance activities................................................................... RIADC386 0 5.d.4.

5. Income from other insurance activities......................................................................................................... RIADC387 0 5.d.5.

e. Venture capital revenue........................................................................................................................................ RIADB491 0 5.e.

f. Net servicing fees.................................................................................................................................................. RIADB492 73,004 5.f.

g. Net securitization income..................................................................................................................................... RIADB493 6,834 5.g.

h. Not applicable 5.h.

i. Net gains (losses) on sales of loans and leases................................................................................................... RIAD5416 -43,539 5.i.

j. Net gains (losses) on sales of other real estate owned......................................................................................... RIAD5415 36 5.j.
4 RIADB496 3,721 5.k.
k. Net gains (losses) on sales of other assets ........................................................................................................
* RIADB497 6,941,216 5.l.
l. Other noninterest income .....................................................................................................................................
m. Total noninterest income (sum of items 5.a through 5.l)...................................................................................... RIAD4079 7,276,421 5.m.

6. Not available 6.

a. Realized gains (losses) on held-to-maturity securities......................................................................................... RIAD3521 0 6.a.

b. Realized gains (losses) on available-for-sale debt securities............................................................................... RIAD3196 -30,025 6.b.

7. Noninterest expense: 7.

a. Salaries and employee benefits........................................................................................................................... RIAD4135 9,590,231 7.a.

b. Expenses of premises and fixed assets (net of rental income) (excluding salaries and employee benefits and
RIAD4217 1,083,446 7.b.
mortgage interest)....................................................................................................................................................
c. Not available 7.c.

1. Goodwill impairment losses.......................................................................................................................... RIADC216 0 7.c.1.

2. Amortization expense and impairment losses for other intangible assets.................................................... RIADC232 80,957 7.c.2.
* RIAD4092 9,338,244 7.d.
d. Other noninterest expense ..................................................................................................................................
e. Total noninterest expense (sum of items 7.a through 7.d).................................................................................... RIAD4093 20,092,878 7.e.

8. Not available 8.

a. Income (loss) before change in net unrealized holding gains (losses) on equity securities not held for trading,
RIADHT69 6,418,155 8.a.
applicable income taxes, and discontinued operations (item 3 plus or minus items 4, 5.m, 6.a, 6.b, and 7.e)........
5 RIADHT70 49,582 8.b.
b. Change in net unrealized holding gains (losses) on equity securities not held for trading .................................
c. Income (loss) before applicable income taxes and discontinued operations (sum of items 8.a and 8.b)............. RIAD4301 6,467,737 8.c.

9. Applicable income taxes (on item 8.c)......................................................................................................................... RIAD4302 1,225,889 9.

10. Income (loss) before discontinued operations (item 8.c minus item 9)...................................................................... RIAD4300 5,241,848 10.
* RIADFT28 230 11.
11. Discontinued operations, net of applicable income taxes (Describe on Schedule RI-E - Explanations) ..................
12. Net income (loss) attributable to bank and noncontrolling (minority) interests (sum of items 10 and 11)................. RIADG104 5,242,078 12.

13. LESS: Net income (loss) attributable to noncontrolling (minority) interests (if net income, report as a positive value;
RIADG103 -19 13.
if net loss, report as a negative value).............................................................................................................................
14. Net income (loss) attributable to bank (item 12 minus item 13)................................................................................. RIAD4340 5,242,097 14.

1. Interest expense incurred to carry tax-exempt securities, loans, and leases acquired after August 7, 1986, that is
RIAD4513 2,679 M.1.
not deductible for federal income tax purposes...............................................................................................................
Memorandum item 2 is to be completed by banks with $1 billion or more in total assets
2. Income from the sale and servicing of mutual funds and annuities in domestic offices (included in Schedule RI, item RIAD8431 0 M.2.
8).....................................................................................................................................................................................
3. Income on tax-exempt loans and leases to states and political subdivisions in the U.S. (included in Schedule RI,
RIAD4313 194,782 M.3.
items 1.a and 1.b)............................................................................................................................................................
4. Income on tax-exempt securities issued by states and political subdivisions in the U.S. (included in Schedule RI,
RIAD4507 0 M.4.
item 1.d.(3)).....................................................................................................................................................................
5. Number of full-time equivalent employees at end of current period (round to nearest whole number)....................... RIAD4150 57866 M.5.

6. Not applicable M.6.

3. For banks required to complete Schedule RI, Memorandum item 8, trading revenue reported in Schedule RI, item 5.c, must equal the sum of Memorandum items 8.a through 8.e.
4. Exclude net gains (losses) on sales of trading assets and held-to-maturity and available-for-sale debt securities.
*. Describe on Schedule RI-E—Explanations.
5. Item 8.b is to be completed by all institutions. See the instructions this item and the Glossary entry for "Securities Activities" for further detail on accounting for investments in equity securities.
 CAPITAL ONE, NATIONAL ASSOCIATION FFIEC 031
RSSD-ID 112837 Report Date 12/31/2023
Last Updated on 1/30/2024 10

Dollar amounts in thousands

7. If the reporting institution has applied pushdown accounting this calendar year, report the date of the institution's
2 RIAD9106 0 M.7.
acquisition (see instructions) .........................................................................................................................................
8. Trading revenue (from cash instruments and derivative instruments) (sum of Memorandum items 8.a through 8.e
M.8.
must equal Schedule RI, item 5.c):
Memorandum items 8.a through 8.e are to be completed by banks that reported average trading assets (Schedule RC-K, item 7) of
$2 million or more for any quarter of the preceding calendar year. RIAD8757 58,114 M.8.a.
a. Interest rate exposures.........................................................................................................................................
b. Foreign exchange exposures............................................................................................................................... RIAD8758 15,986 M.8.b.

c. Equity security and index exposures.................................................................................................................... RIAD8759 0 M.8.c.

d. Commodity and other exposures......................................................................................................................... RIAD8760 39,279 M.8.d.

e. Credit exposures.................................................................................................................................................. RIADF186 -1,475 M.8.e.

Memorandum items 8.f through 8.h are to be completed by banks with $100 billion or more in total assets that are required to complete
Schedule RI, Memorandum items 8.a through 8.e, above.
M.8.f.
f. Impact on trading revenue of changes in the creditworthiness of the bank's derivatives counterparties on the
bank's derivative assets (year-to-date changes) (included in Memorandum items 8.a through 8.e above):
1. Gross credit valuation adjustment (CVA)...................................................................................................... RIADFT36 1,291 M.8.f.1.

2. CVA hedge.................................................................................................................................................... RIADFT37 0 M.8.f.2.

g. Impact on trading revenue of changes in the creditworthiness of the bank on the bank's derivative liabilities
M.8.g.
(year-to-date changes) (included in Memorandum items 8.a through 8.e above):
1. Gross debit valuation adjustment (DVA)....................................................................................................... RIADFT38 179 M.8.g.1.

2. DVA hedge.................................................................................................................................................... RIADFT39 0 M.8.g.2.

h. Gross trading revenue, before including positive or negative net CVA and net DVA............................................ RIADFT40 113,374 M.8.h.

9. Net gains (losses) recognized in earnings on credit derivatives that economically hedge credit exposures held outside
M.9.
the trading account:
a. Net gains (losses) on credit derivatives held for trading....................................................................................... RIADC889 0 M.9.a.

b. Net gains (losses) on credit derivatives held for purposes other than trading...................................................... RIADC890 0 M.9.b.

10. Credit losses on derivatives (see instructions).......................................................................................................... RIADA251 0 M.10.

11. Does the reporting bank have a Subchapter S election in effect for federal income tax purposes for the current tax
RIADA530 No M.11.
year?...............................................................................................................................................................................
12. Not applicable M.12.

Memorandum item 13 is to be completed by banks that have elected to account for assets and liabilities under a fair value option.
13. Net gains (losses) recognized in earnings on assets and liabilities that are reported at fair value under a fair value M.13.
option:
a. Net gains (losses) on assets................................................................................................................................ RIADF551 NR M.13.a.

1. Estimated net gains (losses) on loans attributable to changes in instrument-specific credit risk.................. RIADF552 NR M.13.a.1.

b. Net gains (losses) on liabilities............................................................................................................................. RIADF553 NR M.13.b.

1. Estimated net gains (losses) on liabilities attributable to changes in instrument-specific credit risk............. RIADF554 NR M.13.b.1.
2 RIADJ321 NR M.14.
14. Other-than-temporary impairment losses on held-to-maturity and available-for-sale debt securities ......................
Memorandum item 15 is to be completed by institutions with $1 billion or more in total assets that answered "Yes" to Schedule RC-E, Part
I, Memorandum item 5.
M.15.
15. Components of service charges on deposit accounts in domestic offices (sum of Memorandum items 15.a through
15.d must equal Schedule RI, item 5.b):
a. Consumer overdraft-related service charges levied on those transaction account and nontransaction savings
RIADH032 528 M.15.a.
account deposit products intended primarily for individuals for personal, household, or family use........................
b. Consumer account periodic maintenance charges levied on those transaction account and nontransaction
RIADH033 2 M.15.b.
savings account deposit products intended primarily for individuals for personal, household, or family use...........
c. Consumer customer automated teller machine (ATM) fees levied on those transaction account and nontransaction
RIADH034 14,330 M.15.c.
savings account deposit products intended primarily for individuals for personal, household, or family use...........
d. All other service charges on deposit accounts..................................................................................................... RIADH035 57,290 M.15.d.

2. Report the date in YYYYMMDD format. For example, a bank acquired on March 1, 2023, would report 20230301.
2. Memorandum item 14 is to be completed only by institutions that have not adopted ASU 2016-13.
 CAPITAL ONE, NATIONAL ASSOCIATION FFIEC 031
RSSD-ID 112837 Report Date 12/31/2023
Last Updated on 1/30/2024 11

Schedule RI-A - Changes in Bank Equity Capital(Form Type - 031)

Dollar amounts in thousands
1. Total bank equity capital most recently reported for the December 31, 2022, Reports of Condition and Income (i.e.,
RIAD3217 49,552,564 1.
after adjustments from amended Reports of Income).....................................................................................................
* RIADB507 37,078 2.
2. Cumulative effect of changes in accounting principles and corrections of material accounting errors .......................
3. Balance end of previous calendar year as restated (sum of items 1 and 2)................................................................ RIADB508 49,589,642 3.

4. Net income (loss) attributable to bank (must equal Schedule RI, item 14).................................................................. RIAD4340 5,242,097 4.

5. Sale, conversion, acquisition, or retirement of capital stock, net (excluding treasury stock transactions)................... RIADB509 0 5.

6. Treasury stock transactions, net.................................................................................................................................. RIADB510 0 6.

7. Changes incident to business combinations, net......................................................................................................... RIAD4356 0 7.

8. LESS: Cash dividends declared on preferred stock.................................................................................................... RIAD4470 0 8.

9. LESS: Cash dividends declared on common stock..................................................................................................... RIAD4460 3,300,004 9.

1 RIADB511 1,643,612 10.
10. Other comprehensive income ..................................................................................................................................
11. Other transactions with stockholders (including a parent holding company) (not included in items 5, 6, 8, or 9
* RIAD4415 11,871 11.
above) ............................................................................................................................................................................
12. Total bank equity capital end of current period (sum of items 3 through 11) (must equal Schedule RC, item 27.a).. RIAD3210 53,187,218 12.

*. Describe on Schedule RI-E—Explanations

1. Includes, but is not limited to, changes in net unrealized holding gains (losses) on available-for-sale debt securities, changes in accumulated net gains (losses) on cash flow hedges, foreign
currency translation adjustments, and pension and other postretirement plan-related changes other than net periodic benefit cost.
 CAPITAL ONE, NATIONAL ASSOCIATION FFIEC 031
RSSD-ID 112837 Report Date 12/31/2023
Last Updated on 1/30/2024 12

Schedule RI-B Part I - Charge-offs and Recoveries on Loans and Leases(Form Type -
031)
Part I includes charge-offs and recoveries through the allocated transfer risk reserve.

(Column A) Charge-offs (Column B) Recoveries Calendar

Dollar amounts in thousands Calendar year-to-date year-to-date

1. Loans secured by real estate: 1.

a. Construction, land development, and other land loans in domestic offices: 1.a.

1. 1-4 family residential construction loans................................................................. RIADC891 0 RIADC892 0 1.a.1.

2. Other construction loans and all land development and other land loans............... RIADC893 3,163 RIADC894 6 1.a.2.

b. Secured by farmland in domestic offices........................................................................ RIAD3584 0 RIAD3585 0 1.b.

c. Secured by 1-4 family residential properties in domestic offices: 1.c.

1. Revolving, open-end loans secured by 1-4 family residential properties and extended
RIAD5411 166 RIAD5412 25 1.c.1.
under lines of credit.....................................................................................................
2. Closed-end loans secured by 1-4 family residential properties: 1.c.2.

a. Secured by first liens........................................................................................ RIADC234 72 RIADC217 6 1.c.2.a.

b. Secured by junior liens..................................................................................... RIADC235 0 RIADC218 0 1.c.2.b.

d. Secured by multifamily (5 or more) residential properties in domestic offices................ RIAD3588 4,039 RIAD3589 2,886 1.d.

e. Secured by nonfarm nonresidential properties in domestic offices: 1.e.

1. Loans secured by owner-occupied nonfarm nonresidential properties................... RIADC895 441 RIADC896 321 1.e.1.

2. Loans secured by other nonfarm nonresidential properties.................................... RIADC897 541,624 RIADC898 2,518 1.e.2.

f. In foreign offices.............................................................................................................. RIADB512 0 RIADB513 0 1.f.

2. Not applicable 2.

3. Loans to finance agricultural production and other loans to farmers..................................... RIAD4655 21 RIAD4665 20 3.

4. Commercial and industrial loans: 4.

a. To U.S. addressees (domicile)........................................................................................ RIAD4645 399,873 RIAD4617 45,491 4.a.

b. To non-U.S. addressees (domicile)................................................................................. RIAD4646 0 RIAD4618 0 4.b.

5. Loans to individuals for household, family, and other personal expenditures: 5.

a. Credit cards.................................................................................................................... RIADB514 7,438,418 RIADB515 1,278,534 5.a.

b. Automobile loans............................................................................................................ RIADK129 2,252,261 RIADK133 944,084 5.b.

c. Other (includes revolving credit plans other than credit cards and other consumer
RIADK205 693 RIADK206 367 5.c.
loans).................................................................................................................................
6. Loans to foreign governments and official institutions........................................................... RIAD4643 0 RIAD4627 0 6.

7. All other loans........................................................................................................................ RIAD4644 60,954 RIAD4628 13,752 7.

8. Lease financing receivables: 8.

a. Leases to individuals for household, family, and other personal expenditures............... RIADF185 0 RIADF187 0 8.a.

b. All other leases............................................................................................................... RIADC880 0 RIADF188 0 8.b.

9. Total (sum of items 1 through 8)............................................................................................ RIAD4635 10,701,725 RIAD4605 2,288,010 9.

1. Loans to finance commercial real estate, construction, and land development activities (not
RIAD5409 0 RIAD5410 0 M.1.
secured by real estate) included in Schedule RI-B, part I, items 4 and 7, above......................
2. Loans secured by real estate to non-U.S. addressees (domicile) (included in Schedule RI-B,
RIAD4652 0 RIAD4662 0 M.2.
part I, item 1, above)..................................................................................................................
3. Not applicable M.3.

Dollar amounts in thousands

Memorandum item 4 is to be completed by banks that (1) together with affiliated institutions, have outstanding credit card receivables (as
defined in the instructions) that exceed $500 million as of the report date, or (2) are credit card specialty banks as defined for Uniform
Bank Performance Report purposes. RIADC388 1,902,744 M.4.
4. Uncollectible retail credit card fees and finance charges reversed against income (i.e., not included in charge-offs
2
against the allowance for loan and lease losses) ..........................................................................................................

2. Institutions that have adopted ASU 2016-13 should report in Memorandum item 4 uncollectible retail credit card fees and finance charges reversed against income (i.e. not included in charge-offs
against the allowance for credit losses on loans and leases).
 CAPITAL ONE, NATIONAL ASSOCIATION FFIEC 031
RSSD-ID 112837 Report Date 12/31/2023
Last Updated on 1/30/2024 13

Schedule RI-B Part II - Changes in Allowances for Credit Losses(Form Type - 031)
(Column A) Loans and (Column B) (Column C)
Leases Held for Held-to-maturity Debt Available-for-sale Debt
Dollar amounts in thousands Investment Securities Securities
1. Balance most recently reported for the December 31, 2022, Reports of
Condition and Income (i.e., after adjustments from amended Reports of RIADB522 13,239,877 RIADJH88 0 RIADJH94 3,057 1.
Income).............................................................................................................
2. Recoveries (column A must equal Part I, item 9, column B, above)............. RIAD4605 2,288,010 RIADJH89 0 RIADJH95 2,268 2.

3. LESS: Charge-offs (column A must equal Part I, item 9, column A, above

RIADC079 10,368,207 RIADJH92 0 RIADJH98 3,411 3.
less Schedule RI-B, Part II, item 4, column A).................................................
3 RIAD5523 333,518 RIADJJ00 0 RIADJJ01 0 4.
4. LESS: Write-downs arising from transfers of financial assets .....................
4 RIAD4230 10,485,102 RIADJH90 0 RIADJH96 1,750 5.
5. Provisions for credit losses .........................................................................
* RIADC233 -15,623 RIADJH91 0 RIADJH97 0 6.
6. Adjustments* (see instructions for this schedule) ........................................
7. Balance end of current period (sum of items 1, 2, 5, and 6, less items 3 and
RIAD3123 15,295,641 RIADJH93 0 RIADJH99 3,664 7.
4) (column A must equal Schedule RC, item 4.c).............................................

Dollar amounts in thousands

1. Allocated transfer risk reserve included in Schedule RI-B, Part II, item 7, column A, above....................................... RIADC435 0 M.1.

Memorandum items 2 and 3 are to be completed by banks that (1) together with affiliated institutions, have outstanding credit card
receivables (as defined in the instructions) that exceed $500 million as of the report date, or (2) are credit card specialty banks as defined
for Uniform Bank Performance Report purposes. RIADC389 0 M.2.

2. Separate valuation allowance for uncollectible retail credit card fees and finance charges........................................
1 RIADC390 724,738 M.3.
3. Amount of allowance for loan and lease losses attributable to retail credit card fees and finance charges ...............
4. Amount of allowance for post-acquisition credit losses on purchased credit-impaired loans accounted for in accordance
with FASB ASC 310-30 (former AICPA Statement of Position 03-3) (included in Schedule RI-B, Part II, item 7, column RIADC781 NR M.4.
2
A, above) .......................................................................................................................................................................
3 RIADJJ02 0 M.5.
5. Provisions for credit losses on other financial assets measured at amortized cost (not included in item 5, above) ...
3 RCFDJJ03 0 M.6.
6. Allowance for credit losses on other financial assets measured at amortized cost (not included in item 7, above) ...
3 RIADMG93 -59,858 M.7.
7. Provisions for credit losses on off-balance-sheet credit exposures ...........................................................................
8. Estimated amount of expected recoveries of amounts previously written off included within the allowance for credit
losses on loans and leases held for investment (included in item 7, column A, "Balance end of current period," RIADMG94 3,407,013 M.8.
3
above) ............................................................................................................................................................................

3. Institutions that have not yet adopted ASU 2016-13 should report write-downs arising from transfers of loans to a held-for-sale account in item 4, column A.
4. Institutions that have not yet adopted ASU 2016-13 should report the provision for loan and lease losses in item 5, column A and the amount reported must equal Schedule RI, item 4.
*. Describe on Schedule RI-E - Explanations.
1. Institutions that have adopted ASU 2016-13 should report in Memorandum item 3 the amount of allowance for credit losses on loans and leases attributable to retail credit card fees and finance
charges.
2. Memorandum item 4 is to be completed only by institutions that have not yet adopted ASU 2016-13.
3. Memorandum items 5, 6, 7, and 8 are to be completed only by institutions that have adopted ASU 2016-13.
3. Memorandum items 5, 6, 7, and 8 are to be completed only by institutions that have adopted ASU 2016-13.
3. Memorandum items 5, 6, 7, and 8 are to be completed only by institutions that have adopted ASU 2016-13.
3. Memorandum items 5, 6, 7, and 8 are to be completed only by institutions that have adopted ASU 2016-13.
 CAPITAL ONE, NATIONAL ASSOCIATION FFIEC 031
RSSD-ID 112837 Report Date 12/31/2023
Last Updated on 1/30/2024 14

Schedule RI-C Part I - Disaggregated Data on the Allowance for Loan and Lease Losses(Form Type - 031)
Schedule RI-C is to be completed by institutions with $1 billion or more in total assets.

(Column A) (Column B) (Column C) (Column D) (Column E) (Column F)

Recorded Allowance Balance: Recorded Allowance Balance: Recorded Allowance Balance:
Investment: Individually Investment: Collectively Investment: Purchased
Individually Evaluated for Collectively Evaluated for Purchased Credit-Impaired
Evaluated for Impairment and Evaluated for Impairment (ASC Credit-Impaired Loans (ASC 310-30)
Impairment and Determined to be Impairment (ASC 450-20) Loans (ASC 310-30)
Determined to be Impaired (ASC 450-20)
Impaired (ASC 310-10-35)
Dollar amounts in thousands 310-10-35)

1. Real estate loans: 1.

RCFDM708 RCFDM709 RCFDM710 RCFDM711 RCFDM712 RCFDM713

1.a.
a. Construction loans............................................................................................. NR NR NR NR NR NR
RCFDM714 RCFDM715 RCFDM716 RCFDM717 RCFDM719 RCFDM720
1.b.
b. Commercial real estate loans............................................................................. NR NR NR NR NR NR
RCFDM721 RCFDM722 RCFDM723 RCFDM724 RCFDM725 RCFDM726
1.c.
c. Residential real estate loans.............................................................................. NR NR NR NR NR NR
RCFDM727 RCFDM728 RCFDM729 RCFDM730 RCFDM731 RCFDM732
3 2.
2. Commercial loans .................................................................................................... NR NR NR NR NR NR
RCFDM733 RCFDM734 RCFDM735 RCFDM736 RCFDM737 RCFDM738
3.
3. Credit cards............................................................................................................... NR NR NR NR NR NR
RCFDM739 RCFDM740 RCFDM741 RCFDM742 RCFDM743 RCFDM744
4.
4. Other consumer loans............................................................................................... NR NR NR NR NR NR
RCFDM745
5.
5. Unallocated, if any..................................................................................................... NR
RCFDM746 RCFDM747 RCFDM748 RCFDM749 RCFDM750 RCFDM751
4 6.
6. Total (for each column, sum of items 1.a through 5) ................................................ NR NR NR NR NR NR

3. Include all loans and leases not reported as real estate loans, credit cards, or other consumer loans in items 1, 3, or 4 of Schedule RI-C.
4. The sum of item 6, columns B, D, and F, must equal Schedule RC, item 4.c. Item 6, column E, must equal Schedule RC-C, Part I, Memorandum item 7.b. Item 6, column F, must equal Schedule RI-B, Part II, Memorandum item 4.
 CAPITAL ONE, NATIONAL ASSOCIATION FFIEC 031
RSSD-ID 112837 Report Date 12/31/2023
Last Updated on 1/30/2024 15

Schedule RI-C Part II - Disaggregated Data on the Allowances for Credit Losses(Form
Type - 031)
Dollar amounts in thousands (Column A) Amortized Cost (Column B) Allowance Balance

1. Real estate loans: 1.

a. Construction loans.......................................................................................................... RCFDJJ04 0 RCFDJJ12 0 1.a.

b. Commercial real estate loans......................................................................................... RCFDJJ05 0 RCFDJJ13 0 1.b.

c. Residential real estate loans........................................................................................... RCFDJJ06 0 RCFDJJ14 0 1.c.

3 RCFDJJ07 90,488,194 RCFDJJ15 1,544,616 2.
2. Commercial loans ................................................................................................................
3. Credit cards........................................................................................................................... RCFDJJ08 154,546,200 RCFDJJ16 11,709,445 3.

4. Other consumer loans........................................................................................................... RCFDJJ09 75,437,248 RCFDJJ17 2,041,580 4.

5. Unallocated, if any................................................................................................................. RCFDJJ18 0 5.

4 RCFDJJ11 320,471,642 RCFDJJ19 15,295,641 6.
6. Total (sum of items 1.a. through 5) .......................................................................................

Dollar amounts in thousands

7. Securities issued by states and political subdivisions in the U.S................................................................................. RCFDJJ20 0 7.

8. Mortgage-backed securities (MBS) (including CMOs, REMICs, and stripped MBS).................................................. RCFDJJ21 0 8.

9. Asset-backed securities and structured financial products.......................................................................................... RCFDJJ23 0 9.

10. Other debt securities................................................................................................................................................. RCFDJJ24 0 10.

5 RCFDJJ25 0 11.
11. Total (sum of items 7 through 10) .............................................................................................................................

Schedule RI-D - Income from Foreign Offices(Form Type - 031)

For all banks with foreign offices (including Edge or Agreement subsidiaries and IBFs) and total foreign office assets of $10 billion or more where foreign office revenues,
assets, or net income exceed 10 percent of consolidated total revenues, total assets, or net income.

Dollar amounts in thousands

1. Total interest income in foreign offices......................................................................................................................... RIADC899 0 1.

2. Total interest expense in foreign offices....................................................................................................................... RIADC900 0 2.

1 RIADKW02 0 3.
3. Provision for loan and lease losses in foreign offices ................................................................................................
4. Noninterest income in foreign offices: 4.

a. Trading revenue.................................................................................................................................................... RIADC902 0 4.a.

b. Investment banking, advisory, brokerage, and underwriting fees and commissions............................................ RIADC903 0 4.b.

c. Net securitization income..................................................................................................................................... RIADC904 0 4.c.

d. Other noninterest income..................................................................................................................................... RIADC905 0 4.d.

5. Realized gains (losses) on held-to-maturity and available-for-sale debt securities and change in net unrealized
RIADJA28 0 5.
holding gains (losses) on equity securities not held for trading in foreign offices............................................................
6. Total noninterest expense in foreign offices................................................................................................................. RIADC907 0 6.

7. Adjustments to pretax income in foreign offices for internal allocations to foreign offices to reflect the effects of equity
RIADC908 0 7.
capital on overall bank funding costs...............................................................................................................................
8. Applicable income taxes (on items 1 through 7).......................................................................................................... RIADC909 0 8.

9. Discontinued operations, net of applicable income taxes, in foreign offices................................................................ RIADGW64 0 9.

10. Net income attributable to foreign offices before internal allocations of income and expense (item 1 plus or minus
RIADC911 0 10.
items 2 through 9)...........................................................................................................................................................
11. Not applicable 11.

12. Eliminations arising from the consolidation of foreign offices with domestic offices.................................................. RIADC913 0 12.

13. Consolidated net income attributable to foreign offices (sum of items 10 and 12).................................................... RIADC914 0 13.

3. Include all loans and leases not reported as real estate loans, credit cards, or other consumer loans in item 1, 3, or 4 of Schedule RI-C, Part II.
4. Item 6, column B must equal schedule RC, item 4.c.
5. Item 11 must equal Schedule RI-B, Part II, item 7, column B.
1. Institutions that have adopted ASU 2016-13 should report the provisions for credit losses in foreign offices for all financial assets and off-balance-sheet credit exposures that fall within the scope
of the standard in item 3.
 CAPITAL ONE, NATIONAL ASSOCIATION FFIEC 031
RSSD-ID 112837 Report Date 12/31/2023
Last Updated on 1/30/2024 16

Schedule RI-E - Explanations (Form Type - 031)

Schedule RI-E is to be completed each quarter on a calendar year-to-date basis.

Detail all adjustments in Schedule RI-A and RI-B, all extraordinary items and other adjustments in Schedule RI, and all significant items of other noninterest income and
other noninterest expense in Schedule RI. (See instructions for details.)

Dollar amounts in thousands

1. Other noninterest income (from Schedule RI, item 5.l) Itemize and describe amounts greater than $100,000 that
1.
exceed 7 percent of Schedule RI, item 5.l:
a. Income and fees from the printing and sale of checks......................................................................................... RIADC013 0 1.a.

b. Earnings on/increase in value of cash surrender value of life insurance.............................................................. RIADC014 0 1.b.

c. Income and fees from automated teller machines (ATMs)................................................................................... RIADC016 0 1.c.

d. Rent and other income from other real estate owned.......................................................................................... RIAD4042 0 1.d.

e. Safe deposit box rent............................................................................................................................................ RIADC015 0 1.e.

f. Bank card and credit card interchange fees.......................................................................................................... RIADF555 4,792,755 1.f.

g. Income and fees from wire transfers.................................................................................................................... RIADT047 0 1.g.

h. Disclose component and the dollar amount of that component: 1.h.

1. Describe component..................................................................................................................................... TEXT4461 Click here for value 1.h.1.

2. Amount of component................................................................................................................................... RIAD4461 1,212,163 1.h.2.

i. Disclose component and the dollar amount of that component: 1.i.

1. Describe component..................................................................................................................................... TEXT4462 NR 1.i.1.

2. Amount of component................................................................................................................................... RIAD4462 0 1.i.2.

j. Disclose component and the dollar amount of that component: 1.j.

1. Describe component..................................................................................................................................... TEXT4463 NR 1.j.1.

2. Amount of component................................................................................................................................... RIAD4463 0 1.j.2.

2. Other noninterest expense (from Schedule RI, item 7.d) Itemize and describe amounts greater than $100,000 that
2.
exceed 7 percent of Schedule RI, item 7.d:
a. Data processing expenses................................................................................................................................... RIADC017 1,019,779 2.a.

b. Advertising and marketing expenses.................................................................................................................... RIAD0497 4,003,172 2.b.

c. Directors' fees....................................................................................................................................................... RIAD4136 0 2.c.

d. Printing, stationery, and supplies.......................................................................................................................... RIADC018 0 2.d.

e. Postage................................................................................................................................................................ RIAD8403 0 2.e.

f. Legal fees and expenses....................................................................................................................................... RIAD4141 0 2.f.

g. FDIC deposit insurance assessments.................................................................................................................. RIAD4146 CONF 2.g.

h. Accounting and auditing expenses....................................................................................................................... RIADF556 0 2.h.

i. Consulting and advisory expenses........................................................................................................................ RIADF557 0 2.i.

j. Automated teller machine (ATM) and interchange expenses................................................................................ RIADF558 0 2.j.

k. Telecommunications expenses............................................................................................................................. RIADF559 0 2.k.

l. Other real estate owned expenses........................................................................................................................ RIADY923 0 2.l.

m. Insurance expenses (not included in employee expenses, premises and fixed asset expenses, and other real
RIADY924 0 2.m.
estate owned expenses)..........................................................................................................................................
n. Disclose component and the dollar amount of that component: 2.n.

1. Describe component..................................................................................................................................... TEXT4464 Click here for value 2.n.1.

2. Amount of component................................................................................................................................... RIAD4464 922,603 2.n.2.

o. Disclose component and the dollar amount of that component: 2.o.

1. Describe component..................................................................................................................................... TEXT4467 Click here for value 2.o.1.

2. Amount of component................................................................................................................................... RIAD4467 810,374 2.o.2.

p. Disclose component and the dollar amount of that component: 2.p.

1. Describe component..................................................................................................................................... TEXT4468 NR 2.p.1.

2. Amount of component................................................................................................................................... RIAD4468 0 2.p.2.

3. Discontinued operations and applicable income tax effect (from Schedule RI, item 11) (itemize and describe each
3.
discontinued operation):
a. Disclose component, the gross dollar amount of that component, and its related income tax: 3.a.

1. Describe component..................................................................................................................................... TEXTFT29 Click here for value 3.a.1.

2. Amount of component................................................................................................................................... RIADFT29 303 3.a.2.

 CAPITAL ONE, NATIONAL ASSOCIATION FFIEC 031
RSSD-ID 112837 Report Date 12/31/2023
Last Updated on 1/30/2024 17

Dollar amounts in thousands

3. Applicable income tax effect......................................................................................................................... RIADFT30 73 3.a.3.

b. Disclose component, the gross dollar amount of that component, and its related income tax: 3.b.

1. Describe component..................................................................................................................................... TEXTFT31 NR 3.b.1.

2. Amount of component................................................................................................................................... RIADFT31 0 3.b.2.

3. Applicable income tax effect......................................................................................................................... RIADFT32 0 3.b.3.

4. Cumulative effect of changes in accounting principles and corrections of material accounting errors (from Schedule
4.
RI-A, item 2) (itemize and describe all such effects):
1 RIADJJ26 NR 4.a.
a. Effect of adoption of Current Expected Credit Losses Methodology - ASU 2016-13 .........................................
b. Not applicable 4.b.

c. Disclose component and the dollar amount of that component: 4.c.

1. Describe component..................................................................................................................................... TEXTB526 Click here for value 4.c.1.

2. Amount of component................................................................................................................................... RIADB526 37,078 4.c.2.

d. Disclose component and the dollar amount of that component: 4.d.

1. Describe component..................................................................................................................................... TEXTB527 NR 4.d.1.

2. Amount of component................................................................................................................................... RIADB527 0 4.d.2.

5. Other transactions with stockholders (including a parent holding company) (from Schedule RI-A, item 11) (itemize
5.
and describe all such transactions):
a. Disclose component and the dollar amount of that component: 5.a.

1. Describe component..................................................................................................................................... TEXT4498 Click here for value 5.a.1.

2. Amount of component................................................................................................................................... RIAD4498 11,872 5.a.2.

b. Disclose component and the dollar amount of that component: 5.b.

1. Describe component..................................................................................................................................... TEXT4499 NR 5.b.1.

2. Amount of component................................................................................................................................... RIAD4499 0 5.b.2.

6. Adjustments to allowances for credit losses (from Schedule RI-B, part II, item 6) (itemize and describe all
3 6.
adjustments):
a. Initial allowances for credit losses recognized upon the acquisition of purchased credit-deteriorated assets on
1 RIADJJ27 -31,584 6.a.
or after the effective date of ASU 2016-13 .............................................................................................................
1 RIADJJ28 NR 6.b.
b. Effect of adoption of current expected credit losses methodology on allowances for credit losses ....................
c. Disclose component and the dollar amount of that component: 6.c.

1. Describe component..................................................................................................................................... TEXT4521 Click here for value 6.c.1.

2. Amount of component................................................................................................................................... RIAD4521 15,961 6.c.2.

d. Disclose component and the dollar amount of that component: 6.d.

1. Describe component..................................................................................................................................... TEXT4522 NR 6.d.1.

2. Amount of component................................................................................................................................... RIAD4522 0 6.d.2.

7. Other explanations (the space below is provided for the bank to briefly describe, at its option, any other significant
7.
items affecting the Report of Income):
a. Comments?.......................................................................................................................................................... RIAD4769 No 7.a.

b. Other explanations............................................................................................................................................... TEXT4769 NR 7.b.

(TEXT4461) SERVICE CHARGES AND CUSTOMER RELATED FEES

(TEXT4464) SOFTWARE EXPENSE

(TEXT4467) PROFESSIONAL SERVICES

(TEXT4498) Adjustment of Parent's equity investment

(TEXT4521) Foreign currency translation adjustments

1. Only institutions that have adopted ASU 2016-13 should report amounts in items 4.a, 6.a and 6.b, if applicable.
3. Institutions that have not adopted ASU 2016-13 should report the allowance for loan and lease losses in item 6, where applicable.
1. Only institutions that have adopted ASU 2016-13 should report amounts in items 4.a, 6.a and 6.b, if applicable.
1. Only institutions that have adopted ASU 2016-13 should report amounts in items 4.a, 6.a and 6.b, if applicable.
 CAPITAL ONE, NATIONAL ASSOCIATION FFIEC 031
RSSD-ID 112837 Report Date 12/31/2023
Last Updated on 1/30/2024 18

(TEXTB526) Effect of adoption of elimination of troubled debt restructurings ASU 2022-02

(TEXTFT29) Green Point Mortgage - Discontinued Ops

 CAPITAL ONE, NATIONAL ASSOCIATION FFIEC 031
RSSD-ID 112837 Report Date 12/31/2023
Last Updated on 1/30/2024 19

Schedule RC - Balance Sheet(Form Type - 031)

All schedules are to be reported in thousands of dollars. Unless otherwise indicated, report the amount outstanding as of the last business day of the quarter.

Dollar amounts in thousands

1. Cash and balances due from depository institutions (from Schedule RC-A): 1.

1 RCFD0081 4,572,964 1.a.

a. Noninterest-bearing balances and currency and coin ........................................................................................
2 RCFD0071 38,671,346 1.b.
b. Interest-bearing balances ...................................................................................................................................
2. Securities: 2.
3 RCFDJJ34 0 2.a.
a. Held-to-maturity securities (from Schedule RC-B, column A) ............................................................................
b. Available-for-sale debt securities (from Schedule RC-B, column D).................................................................... RCFD1773 78,736,988 2.b.
4 RCFDJA22 578,068 2.c.
c. Equity securities with readily determinable fair values not held for trading .........................................................
3. Federal funds sold and securities purchased under agreements to resell: 3.

a. Federal funds sold in domestic offices................................................................................................................. RCONB987 0 3.a.

5 RCFDB989 0 3.b.
b. Securities purchased under agreements to resell ..............................................................................................
4. Loans and lease financing receivables (from Schedule RC-C): 4.

a. Loans and leases held for sale............................................................................................................................. RCFD5369 853,641 4.a.

b. Loans and leases held for investment.................................................................................................................. RCFDB528 320,471,642 4.b.

7 RCFD3123 15,295,641 4.c.
c. LESS: Allowance for loan and lease losses ........................................................................................................
d. Loans and leases held for investment, net of allowance (item 4.b minus 4.c)...................................................... RCFDB529 305,176,001 4.d.

5. Trading assets (from Schedule RC-D)......................................................................................................................... RCFD3545 1,522,253 5.

6. Premises and fixed assets (including capitalized leases)............................................................................................ RCFD2145 4,109,580 6.

7. Other real estate owned (from Schedule RC-M)......................................................................................................... RCFD2150 41,283 7.

8. Investments in unconsolidated subsidiaries and associated companies..................................................................... RCFD2130 6,167,378 8.

9. Direct and indirect investments in real estate ventures............................................................................................... RCFD3656 0 9.

10. Intangible assets (from Schedule RC-M)................................................................................................................... RCFD2143 15,421,228 10.

6 RCFD2160 19,777,909 11.
11. Other assets (from Schedule RC-F) ........................................................................................................................
12. Total assets (sum of items 1 through 11)................................................................................................................... RCFD2170 475,628,639 12.

13. Deposits: 13.

a. In domestic offices (sum of totals of columns A and C from Schedule RC-E, part I)........................................... RCON2200 374,037,440 13.a.
8 RCON6631 28,374,886 13.a.1.
1. Noninterest-bearing .....................................................................................................................................
2. Interest-bearing............................................................................................................................................. RCON6636 345,662,554 13.a.2.

b. In foreign offices, Edge and Agreement subsidiaries, and IBFs (from Schedule RC-E, part II)........................... RCFN2200 123,040 13.b.

1. Noninterest-bearing...................................................................................................................................... RCFN6631 123,040 13.b.1.

2. Interest-bearing............................................................................................................................................. RCFN6636 0 13.b.2.

14. Federal funds purchased and securities sold under agreements to repurchase: 14.
9 RCONB993 0 14.a.
a. Federal funds purchased in domestic offices .....................................................................................................
10 RCFDB995 538,240 14.b.
b. Securities sold under agreements to repurchase ..............................................................................................
15. Trading liabilities (from Schedule RC-D).................................................................................................................... RCFD3548 2,141,018 15.

16. Other borrowed money (includes mortgage indebtedness and obligations under capitalized leases) (from Schedule
RCFD3190 24,553,075 16.
RC-M)..............................................................................................................................................................................
17. Not applicable 17.

18. Not applicable 18.

1 RCFD3200 0 19.
19. Subordinated notes and debentures ........................................................................................................................

1. Includes cash items in process of collection and unposted debits.

2. Includes time certificates of deposit not held for trading.
3. Institutions that have adopted ASU 2016-13 should report in item 2.a, amounts net of any applicable allowance for credit losses, and should equal to Schedule RC-B, item 8, column A less
Schedule RI-B, Part II, item 7, column B.
4. Item 2.c is to be completed by all institutions. See the instructions for this item and the Glossary entry for "Securities Activities" for further detail on accounting for investments in equity securities.
5. Includes all securities resale agreements, regardless of maturity.
7. Institutions that have adopted ASU 2016-13 should report in item 4.c the allowance for credit losses on loans and leases.
6. Institutions that have adopted ASU 2016-13 should report in items 3.b and 11 amounts net of any applicable allowance for credit losses.
8. Includes noninterest-bearing demand, time, and savings deposits.
9. Report overnight Federal Home Loan Bank advances in Schedule RC, item 16, "Other borrowed money."
10. Includes all securities repurchase agreements, regardless of maturity.
1. Includes limited-life preferred stock and related surplus.
 CAPITAL ONE, NATIONAL ASSOCIATION FFIEC 031
RSSD-ID 112837 Report Date 12/31/2023
Last Updated on 1/30/2024 20

Dollar amounts in thousands

20. Other liabilities (from Schedule RC-G)...................................................................................................................... RCFD2930 21,048,401 20.

21. Total liabilities (sum of items 13 through 20).............................................................................................................. RCFD2948 422,441,214 21.

22. Not applicable 22.

23. Perpetual preferred stock and related surplus........................................................................................................... RCFD3838 0 23.

24. Common stock........................................................................................................................................................... RCFD3230 123,630 24.

25. Surplus (exclude all surplus related to preferred stock)............................................................................................. RCFD3839 43,577,955 25.

26. Not available 26.

a. Retained earnings................................................................................................................................................ RCFD3632 17,896,551 26.a.

2 RCFDB530 -8,410,918 26.b.
b. Accumulated other comprehensive income ........................................................................................................
3 RCFDA130 0 26.c.
c. Other equity capital components ........................................................................................................................
27. Not available 27.

a. Total bank equity capital (sum of items 23 through 26.c)..................................................................................... RCFD3210 53,187,218 27.a.

b. Noncontrolling (minority) interests in consolidated subsidiaries........................................................................... RCFD3000 207 27.b.

28. Total equity capital (sum of items 27.a and 27.b)...................................................................................................... RCFDG105 53,187,425 28.

29. Total liabilities and equity capital (sum of items 21 and 28)....................................................................................... RCFD3300 475,628,639 29.

1. Indicate in the box at the right the number of the statement below that best describes the most comprehensive level
RCFD6724 NR M.1.
of auditing work performed for the bank by independent external auditors as of any date during 2022.........................
2. Bank's fiscal year-end date (report the date in MMDD format)................................................................................... RCON8678 NR M.2.

Schedule RC-A - Cash and Balances Due From Depository Institutions(Form Type -
031)
Exclude assets held for trading.

Dollar amounts in thousands (Column A) Consolidated Bank (Column B) Domestic Offices

1. Cash items in process of collection, unposted debits, and currency and coin....................... RCFD0022 3,931,585 1.

a. Cash items in process of collection and unposted debits............................................... RCON0020 2,985,477 1.a.

b. Currency and coin.......................................................................................................... RCON0080 946,106 1.b.

2. Balances due from depository institutions in the U.S............................................................. RCFD0082 1,577,754 RCON0082 1,577,754 2.

3. Balances due from banks in foreign countries and foreign central banks.............................. RCFD0070 531,395 RCON0070 106,239 3.

4. Balances due from Federal Reserve Banks.......................................................................... RCFD0090 37,203,576 RCON0090 37,203,576 4.

5. Total....................................................................................................................................... RCFD0010 43,244,310 RCON0010 42,819,152 5.

2. Includes, but is not limited to, net unrealized holding gains (losses) on available-for-sale securities, accumulated net gains (losses) on cash flow hedges, cumulative foreign currency translation
adjustments, and accumulated defined benefit pension and other postretirement plan adjustments.
3. Includes treasury stock and unearned Employee Stock Ownership Plan shares.
 CAPITAL ONE, NATIONAL ASSOCIATION FFIEC 031
RSSD-ID 112837 Report Date 12/31/2023
Last Updated on 1/30/2024 21

Schedule RC-B - Securities(Form Type - 031)

Exclude assets held for trading.

(Column A) (Column B) (Column C) (Column D)

Held-to-maturity Held-to-maturity Fair Available-for-sale Available-for-sale Fair
Dollar amounts in thousands Amortized Cost Value Amortized Cost Value

1. U.S. Treasury securities.............................................................. RCFD0211 0 RCFD0213 0 RCFD1286 5,319,794 RCFD1287 5,272,225 1.

2. U.S. Government agency and sponsored agency obligations

1 RCFDHT50 0 RCFDHT51 0 RCFDHT52 10,000 RCFDHT53 9,998 2.
(exclude mortgage-backed securities) ..........................................
3. Securities issued by states and political subdivisions in the
RCFD8496 0 RCFD8497 0 RCFD8498 0 RCFD8499 0 3.
U.S..................................................................................................
4. Mortgage-backed securities (MBS): 4.

a. Residential mortgage pass-through securities: 4.a.

1. Guaranteed by GNMA.................................................. RCFDG300 0 RCFDG301 0 RCFDG302 16,323,057 RCFDG303 14,746,711 4.a.1.

2. Issued by FNMA and FHLMC...................................... RCFDG304 0 RCFDG305 0 RCFDG306 34,661,373 RCFDG307 29,843,057 4.a.2.

3. Other pass-through securities...................................... RCFDG308 0 RCFDG309 0 RCFDG310 0 RCFDG311 0 4.a.3.

b. Other residential mortgage-backed securities (include CMOs,

4.b.
REMICs, and stripped MBS):
1. Issued or guaranteed by U.S. Government agencies or
1 RCFDG312 0 RCFDG313 0 RCFDG314 20,310,069 RCFDG315 18,358,302 4.b.1.
sponsored agencies .......................................................
2. Collateralized by MBS issued or guaranteed by U.S.
1 RCFDG316 0 RCFDG317 0 RCFDG318 0 RCFDG319 0 4.b.2.
Government agencies or sponsored agencies ...............
3. All other residential MBS.............................................. RCFDG320 0 RCFDG321 0 RCFDG322 281,247 RCFDG323 319,588 4.b.3.

c. Commercial MBS: 4.c.

1. Commercial mortgage pass-through securities: 4.c.1.

a. Issued or guaranteed by FNMA, FHLMC, or

RCFDK142 0 RCFDK143 0 RCFDK144 3,686,124 RCFDK145 3,391,737 4.c.1.a.
GNMA.......................................................................
b. Other pass-through securities............................... RCFDK146 0 RCFDK147 0 RCFDK148 0 RCFDK149 0 4.c.1.b.

2. Other commercial MBS: 4.c.2.

a. Issued or guaranteed by U.S. Government

1 RCFDK150 0 RCFDK151 0 RCFDK152 1,946 RCFDK153 1,953 4.c.2.a.
agencies or sponsored agencies ............................
b. All other commercial MBS..................................... RCFDK154 0 RCFDK155 0 RCFDK156 0 RCFDK157 0 4.c.2.b.

5. Asset-backed securities and structured financial products: 5.

a. Asset-backed securities (ABS)............................................ RCFDC026 0 RCFDC988 0 RCFDC989 1,397,707 RCFDC027 1,402,679 5.a.

b. Structured financial products............................................... RCFDHT58 0 RCFDHT59 0 RCFDHT60 5,272,814 RCFDHT61 4,929,129 5.b.

6. Other debt securities: 6.

a. Other domestic debt securities............................................ RCFD1737 0 RCFD1738 0 RCFD1739 0 RCFD1741 0 6.a.

b. Other foreign debt securities................................................ RCFD1742 0 RCFD1743 0 RCFD1744 461,017 RCFD1746 461,609 6.b.

7. Unallocated portfolio layer fair value hedge basis adjustments... RCFDMG95 -3,457 7.
2 0 RCFD1771 0 RCFD1772 87,721,691 RCFD1773 78,736,988
8. Total (sum of items 1 through 7) ................................................ RCFD1754 8.
 CAPITAL ONE, NATIONAL ASSOCIATION FFIEC 031
RSSD-ID 112837 Report Date 12/31/2023
Last Updated on 1/30/2024 22

Dollar amounts in thousands

1
1. Pledged securities ..................................................................................................................................................... RCFD0416 43,714,544 M.1.

1 M.2.
2. Maturity and repricing data for debt securities (excluding those in nonaccrual status):
a. Securities issued by the U.S. Treasury, U.S. Government agencies, and states and political subdivisions in the
U.S.; other non-mortgage debt securities; and mortgage pass-through securities other than those backed by M.2.a.
2
closed-end first lien 1-4 family residential mortgages with a remaining maturity or next repricing date of:
1. Three months or less.................................................................................................................................... RCFDA549 1,669,454 M.2.a.1.

2. Over three months through 12 months......................................................................................................... RCFDA550 1,933,390 M.2.a.2.

3. Over one year through three years............................................................................................................... RCFDA551 5,451,896 M.2.a.3.

4. Over three years through five years.............................................................................................................. RCFDA552 1,533,438 M.2.a.4.

5. Over five years through 15 years.................................................................................................................. RCFDA553 3,071,748 M.2.a.5.

6. Over 15 years................................................................................................................................................ RCFDA554 1,807,451 M.2.a.6.

b. Mortgage pass-through securities backed by closed-end first lien 1-4 family residential mortgages with a
2 M.2.b.
remaining maturity or next repricing date of:
1. Three months or less.................................................................................................................................... RCFDA555 1,067,886 M.2.b.1.

2. Over three months through 12 months......................................................................................................... RCFDA556 148,433 M.2.b.2.

3. Over one year through three years............................................................................................................... RCFDA557 23,959 M.2.b.3.

4. Over three years through five years.............................................................................................................. RCFDA558 68,768 M.2.b.4.

5. Over five years through 15 years.................................................................................................................. RCFDA559 1,969,078 M.2.b.5.

6. Over 15 years................................................................................................................................................ RCFDA560 41,311,645 M.2.b.6.

c. Other mortgage-backed securities (include CMOs, REMICs, and stripped MBS; exclude mortgage pass-through
5 M.2.c.
securities) with an expected average life of:
1. Three years or less....................................................................................................................................... RCFDA561 932,198 M.2.c.1.

2. Over three years........................................................................................................................................... RCFDA562 17,747,644 M.2.c.2.

d. Debt securities with a REMAINING MATURITY of one year or less (included in Memorandum items 2.a through
RCFDA248 2,468,644 M.2.d.
2.c above)................................................................................................................................................................
Memorandum item 3 is to be completed semiannually in the June and December reports only.
3. Amortized cost of held-to-maturity securities sold or transferred to available-for-sale or trading securities during the RCFD1778 0 M.3.
calendar year-to-date (report the amortized cost at date of sale or transfer)..................................................................
4. Structured notes (included in the held-to-maturity and available-for-sale accounts in Schedule RC-B, items 2, 3, 5,
M.4.
and 6):
a. Amortized cost..................................................................................................................................................... RCFD8782 0 M.4.a.

b. Fair value.............................................................................................................................................................. RCFD8783 0 M.4.b.

1. Includes Small Business Administration "Guaranteed Loan Pool Certificates"; U.S. Maritime Administration obligations; Export-Import Bank participation certificates; and obligations (other than
mortgage-backed securities) issued by the Farm Credit System, the Federal Home Loan Bank System, the Federal Home Loan Mortgage Corporation, the Federal National Mortgage Association,
the Financing Corporation, Resolution Funding Corporation, the Student Loan Marketing Association, and the Tennessee Valley Authority.
1. U.S. Government agencies include, but are not limited to, such agencies as the Government National Mortgage Association (GNMA), the Federal Deposit Insurance Corporation (FDIC), and
the National Credit Union Administration (NCUA). U.S. Government-sponsored agencies include, but are not limited to, such agencies as the Federal Home Loan Mortgage Corporation (FHLMC)
and the Federal National Mortgage Association (FNMA).
1. U.S. Government agencies include, but are not limited to, such agencies as the Government National Mortgage Association (GNMA), the Federal Deposit Insurance Corporation (FDIC), and
the National Credit Union Administration (NCUA). U.S. Government-sponsored agencies include, but are not limited to, such agencies as the Federal Home Loan Mortgage Corporation (FHLMC)
and the Federal National Mortgage Association (FNMA).
2. For institutions that have adopted ASU 2016-13, the total reported in column A must equal Schedule RC, item 2.a, plus Schedule RI-B, Part II, item 7, column B. For institutions that have not
adopted ASU 2016-13, the total reported in column A must equal Schedule RC, item 2.a. For all institutions, the total reported in column D must equal Schedule RC, item 2.b.
 CAPITAL ONE, NATIONAL ASSOCIATION FFIEC 031
RSSD-ID 112837 Report Date 12/31/2023
Last Updated on 1/30/2024 23

(Column A) (Column B) (Column C) (Column D)

Held-to-maturity Held-to-maturity Fair Available-for-sale Available-for-sale Fair
Dollar amounts in thousands Amortized Cost Value Amortized Cost Value
Memorandum items 5.a through 5.f and 6.a through 6.g are to be completed
by banks with $10 billion or more in total assets.
5. Asset-backed securities (ABS) (for each column, sum of M.5.
Memorandum items 5.a through 5.f must equal Schedule RC-B,
1
item 5.a):
a. Credit card receivables........................................................ RCFDB838 0 RCFDB839 0 RCFDB840 0 RCFDB841 0 M.5.a.

b. Home equity lines................................................................ RCFDB842 0 RCFDB843 0 RCFDB844 0 RCFDB845 0 M.5.b.

c. Automobile loans................................................................. RCFDB846 0 RCFDB847 0 RCFDB848 1,380,017 RCFDB849 1,384,863 M.5.c.

d. Other consumer loans......................................................... RCFDB850 0 RCFDB851 0 RCFDB852 0 RCFDB853 0 M.5.d.

e. Commercial and industrial loans......................................... RCFDB854 0 RCFDB855 0 RCFDB856 17,690 RCFDB857 17,816 M.5.e.

f. Other..................................................................................... RCFDB858 0 RCFDB859 0 RCFDB860 0 RCFDB861 0 M.5.f.

6. Structured financial products by underlying collateral or reference

assets (for each column, sum of Memorandum items 6.a through M.6.
6.g must equal Schedule RC-B item 5.b):
a. Trust preferred securities issued by financial institutions...... RCFDG348 0 RCFDG349 0 RCFDG350 0 RCFDG351 0 M.6.a.

b. Trust preferred securities issued by real estate investment

RCFDG352 0 RCFDG353 0 RCFDG354 0 RCFDG355 0 M.6.b.
trusts........................................................................................
c. Corporate and similar loans................................................. RCFDG356 0 RCFDG357 0 RCFDG358 0 RCFDG359 0 M.6.c.

d. 1-4 family residential MBS issued or guaranteed by U.S.

RCFDG360 0 RCFDG361 0 RCFDG362 0 RCFDG363 0 M.6.d.
government-sponsored enterprises (GSEs)............................
e. 1-4 family residential MBS not issued or guaranteed by
RCFDG364 0 RCFDG365 0 RCFDG366 0 RCFDG367 0 M.6.e.
GSEs.......................................................................................
f. Diversified (mixed) pools of structured financial products...... RCFDG368 0 RCFDG369 0 RCFDG370 0 RCFDG371 0 M.6.f.

g. Other collateral or reference assets..................................... RCFDG372 0 RCFDG373 0 RCFDG374 5,272,814 RCFDG375 4,929,129 M.6.g.

1. Includes held-to-maturity securities at amortized cost, available-for-sale debt securities at fair value, and equity securities with readily determinable fair values not held for trading (reported in
Schedule RC, item 2.c) at fair value.
1. Includes held-to-maturity securities at amortized cost, available-for-sale debt securities at fair value, and equity securities with readily determinable fair values not held for trading (reported in
Schedule RC, item 2.c) at fair value.
2. Report fixed-rate debt securities by remaining maturity and floating-rate debt securities by next repricing date.
2. Report fixed-rate debt securities by remaining maturity and floating-rate debt securities by next repricing date.
5. Sum of Memorandum items 2.c.(1) and 2.c.(2) plus any nonaccrual “Other mortgage-backed securities” included in Schedule RC-N, item 10, column C, must equal Schedule RC-B, sum of
items 4.b and 4.c.(2), columns A and D.
1. The $10 billion asset size test is based on the total assets reported on the June 30, 2022, Report of Condition.
 CAPITAL ONE, NATIONAL ASSOCIATION FFIEC 031
RSSD-ID 112837 Report Date 12/31/2023
Last Updated on 1/30/2024 24

Schedule RC-C Part I - Loans and Leases(Form Type - 031)

Do not deduct the allowance for loan and lease losses or the allocated transfer risk reserve from amounts reported in this schedule. Report (1) loans and leases held for
sale at the lower of cost or fair value, (2) loans and leases held for investment, net of unearned income, and (3) loans and leases accounted for at fair value under a fair
value option. Exclude assets held for trading and commercial paper.

Dollar amounts in thousands (Column A) Consolidated Bank (Column B) Domestic Offices

2
1. Loans secured by real estate ............................................................................................... RCFD1410 NR 1.

a. Construction, land development, and other land loans: 1.a.

1. 1-4 family residential construction loans................................................................. RCFDF158 2,934 RCONF158 2,934 1.a.1.

2. Other construction loans and all land development and other land loans............... RCFDF159 2,841,782 RCONF159 2,841,782 1.a.2.

b. Secured by farmland (including farm residential and other improvements).................... RCFD1420 4,823 RCON1420 4,823 1.b.

c. Secured by 1-4 family residential properties: 1.c.

1. Revolving, open-end loans secured by 1-4 family residential properties and extended
RCFD1797 8,615 RCON1797 8,615 1.c.1.
under lines of credit.....................................................................................................
2. Closed-end loans secured by 1-4 family residential properties: 1.c.2.

a. Secured by first liens........................................................................................ RCFD5367 108,721 RCON5367 108,721 1.c.2.a.

b. Secured by junior liens..................................................................................... RCFD5368 12,219 RCON5368 12,219 1.c.2.b.

d. Secured by multifamily (5 or more) residential properties.............................................. RCFD1460 9,631,170 RCON1460 9,631,170 1.d.

e. Secured by nonfarm nonresidential properties: 1.e.

1. Loans secured by owner-occupied nonfarm nonresidential properties................... RCFDF160 1,583,445 RCONF160 1,583,445 1.e.1.

2. Loans secured by other nonfarm nonresidential properties.................................... RCFDF161 14,885,691 RCONF161 14,885,691 1.e.2.

2. Loans to depository institutions and acceptances of other banks: 2.

a. To commercial banks in the U.S..................................................................................... RCONB531 0 2.a.

1. To U.S. branches and agencies of foreign banks.................................................... RCFDB532 0 2.a.1.

2. To other commercial banks in the U.S..................................................................... RCFDB533 0 2.a.2.

b. To other depository institutions in the U.S....................................................................... RCFDB534 0 RCONB534 0 2.b.

c. To banks in foreign countries.......................................................................................... RCONB535 0 2.c.

1. To foreign branches of other U.S. banks.................................................................. RCFDB536 0 2.c.1.

2. To other banks in foreign countries......................................................................... RCFDB537 0 2.c.2.

3. Loans to finance agricultural production and other loans to farmers..................................... RCFD1590 885 RCON1590 885 3.

4. Commercial and industrial loans: 4.

a. To U.S. addressees (domicile)........................................................................................ RCFD1763 45,198,245 RCON1763 45,198,245 4.a.

b. To non-U.S. addressees (domicile)................................................................................. RCFD1764 634,846 RCON1764 634,846 4.b.

5. Not applicable 5.

6. Loans to individuals for household, family, and other personal expenditures (i.e., consumer
6.
loans) (includes purchased paper):
a. Credit cards.................................................................................................................... RCFDB538 142,382,463 RCONB538 135,501,628 6.a.

b. Other revolving credit plans............................................................................................ RCFDB539 106 RCONB539 106 6.b.

c. Automobile loans............................................................................................................ RCFDK137 74,075,285 RCONK137 74,075,285 6.c.

d. Other consumer loans (includes single payment and installment loans other than
RCFDK207 2,997 RCONK207 2,997 6.d.
automobile loans, and all student loans)............................................................................
7. Loans to foreign governments and official institutions (including foreign central banks)....... RCFD2081 0 RCON2081 0 7.

8. Obligations (other than securities and leases) of states and political subdivisions in the
RCFD2107 7,704,653 RCON2107 7,704,653 8.
U.S.............................................................................................................................................
9. Loans to nondepository financial institutions and other loans............................................... RCFD1563 22,246,403 9.

a. Loans to nondepository financial institutions.................................................................. RCONJ454 21,100,555 9.a.

b. Other loans: 9.b.

1. Loans for purchasing or carrying securities (secured and unsecured)................... RCON1545 68,290 9.b.1.

2. All other loans (exclude consumer loans)............................................................... RCONJ451 1,077,558 9.b.2.

10. Lease financing receivables (net of unearned income)....................................................... RCON2165 0 10.

a. Leases to individuals for household, family, and other personal expenditures (i.e.,
RCFDF162 0 10.a.
consumer leases)...............................................................................................................
b. All other leases............................................................................................................... RCFDF163 0 10.b.

11. LESS: Any unearned income on loans reflected in items 1-9 above................................... RCFD2123 0 RCON2123 0 11.

12. Total loans and leases held for investment and held for sale (item 12, column A must equal
RCFD2122 321,325,283 RCON2122 314,444,448 12.
Schedule RC, sum of items 4.a and 4.b)...................................................................................
 CAPITAL ONE, NATIONAL ASSOCIATION FFIEC 031
RSSD-ID 112837 Report Date 12/31/2023
Last Updated on 1/30/2024 25

2. When reporting “Loans secured by real estate,” “large institutions” and “highly complex institutions,” as defined for deposit insurance assessment purposes in FDIC regulations, should complete
items 1.a.(1) through 1.e.(2) in columns A and B (but not item 1 in column A); all other institutions should complete item 1 in column A and items 1.a.(1) through 1.e.(2) in column B (but not
items 1.a.(1) through 1.e.(2) in column A).
 CAPITAL ONE, NATIONAL ASSOCIATION FFIEC 031
RSSD-ID 112837 Report Date 12/31/2023
Last Updated on 1/30/2024 26

Dollar amounts in thousands

1. Loans restructured in troubled debt restructurings that are in compliance with their modified terms (included in
M.1.
Schedule RC-C, part 1, and not reported as past due or nonaccrual in Schedule RC-N, Memorandum item 1):
a. Construction, land development, and other land loans in domestic offices: M.1.a.

1. 1-4 family residential construction loans....................................................................................................... RCONK158 0 M.1.a.1.

2. Other construction loans and all land development and other land loans..................................................... RCONK159 123,086 M.1.a.2.

b. Loans secured by 1-4 family residential properties in domestic offices................................................................ RCONF576 1,007 M.1.b.

c. Secured by multifamily (5 or more) residential properties in domestic offices...................................................... RCONK160 65,819 M.1.c.

d. Secured by nonfarm nonresidential properties in domestic offices: M.1.d.

1. Loans secured by owner-occupied nonfarm nonresidential properties......................................................... RCONK161 45,363 M.1.d.1.

2. Loans secured by other nonfarm nonresidential properties.......................................................................... RCONK162 402,481 M.1.d.2.

e. Commercial and industrial loans: M.1.e.

1. To U.S. addressees (domicile)....................................................................................................................... RCFDK163 495,828 M.1.e.1.

2. To non-U.S. addressees (domicile)............................................................................................................... RCFDK164 0 M.1.e.2.

f. All other loans (include loans to individuals for household, family, and other personal expenditures).................. RCFDK165 980,612 M.1.f.

Itemize loan categories included in Memorandum item 1.f, above that exceed 10 percent of total loans restructured in troubled
debt restructurings that are in compliance with their modified terms (sum of Memorandum items 1.a through 1.f): RCONK166 0 M.1.f.1.
1. Loans secured by farmland in domestic offices............................................................................................
2. Not applicable M.1.f.2.

3. Loans to finance agricultural production and other loans to farmers............................................................ RCFDK168 0 M.1.f.3.

4. Loans to individuals for household, family, and other personal expenditures: M.1.f.4.

a. Credit cards........................................................................................................................................... RCFDK098 422,464 M.1.f.4.a.

b. Automobile loans................................................................................................................................... RCFDK203 548,459 M.1.f.4.b.

c. Other (includes revolving credit plans other than credit cards and other consumer loans)................... RCFDK204 0 M.1.f.4.c.

g. Total loans restructured in troubled debt restructurings that are in compliance with their modified terms (sum
RCFDHK25 2,114,196 M.1.g.
of Memorandum items 1.a.(1) through 1.f)...............................................................................................................
2. Maturity and repricing data for loans and leases (excluding those in nonaccrual status): M.2.

a. Closed-end loans secured by first liens on 1-4 family residential properties in domestic offices (reported in
M.2.a.
Schedule RC-C, part I, item 1.c.(2)(a), column B) with a remaining maturity or next repricing date of:
1. Three months or less.................................................................................................................................... RCONA564 2,241 M.2.a.1.

2. Over three months through 12 months......................................................................................................... RCONA565 2,771 M.2.a.2.

3. Over one year through three years............................................................................................................... RCONA566 15,272 M.2.a.3.

4. Over three years through five years.............................................................................................................. RCONA567 9,244 M.2.a.4.

5. Over five years through 15 years.................................................................................................................. RCONA568 33,496 M.2.a.5.

6. Over 15 years................................................................................................................................................ RCONA569 44,545 M.2.a.6.

b. All loans and leases (reported in Schedule RC-C, part I, items 1 through 10, column A) EXCLUDING closed-end
loans secured by first liens on 1-4 family residential properties in domestic offices (reported in Schedule RC-C, M.2.b.
part I, item 1.c.(2)(a), column B) with a remaining maturity or next repricing date of:
1. Three months or less.................................................................................................................................... RCFDA570 216,386,476 M.2.b.1.

2. Over three months through 12 months......................................................................................................... RCFDA571 6,711,869 M.2.b.2.

3. Over one year through three years............................................................................................................... RCFDA572 23,952,874 M.2.b.3.

4. Over three years through five years.............................................................................................................. RCFDA573 40,062,568 M.2.b.4.

5. Over five years through 15 years.................................................................................................................. RCFDA574 28,938,895 M.2.b.5.

6. Over 15 years................................................................................................................................................ RCFDA575 3,599,807 M.2.b.6.

c. Loans and leases (reported in Schedule RC-C, part I, items 1 through 10, column A) with a REMAINING
RCFDA247 26,341,071 M.2.c.
MATURITY of one year or less (excluding those in nonaccrual status)...................................................................
3. Loans to finance commercial real estate, construction, and land development activities (not secured by real estate)
4 RCFD2746 20,414,790 M.3.
included in Schedule RC-C, part I, items 4 and 9, column A .........................................................................................
4. Adjustable rate closed-end loans secured by first liens on 1-4 family residential properties in domestic offices (included
RCON5370 199 M.4.
in Schedule RC-C, part I, item 1.c.(2)(a), column B).......................................................................................................
5. Loans secured by real estate to non-U.S. addressees (domicile) (included in Schedule RC-C, Part I, item 1, column
RCFDB837 75,000 M.5.
A, or Schedule RC-C, Part I, items 1.a.(1) through 1.e.(2), column A, as appropriate)...................................................
Memorandum item 6 is to be completed by banks that (1) together with affiliated institutions, have outstanding credit card receivables (as
defined in the instructions) that exceed $500 million as of the report date, or (2) are credit card specialty banks as defined for Uniform
Bank Performance Report purposes. RCFDC391 3,243,169 M.6.

6. Outstanding credit card fees and finance charges included in Schedule RC-C, part I, item 6.a, column A................

4. Exclude loans secured by real estate that are included in Schedule RC-C, Part I, item 1, column A.
 CAPITAL ONE, NATIONAL ASSOCIATION FFIEC 031
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Last Updated on 1/30/2024 27

Dollar amounts in thousands

Memorandum items 7.a and 7.b are to be completed by all banks semiannually in the June and December reports only.
7. Purchased credit-impaired loans held for investment accounted for in accordance with FASB ASC 310-30 (former M.7.
5
AICPA Statement of Position 03-3) (exclude loans held for sale):
a. Outstanding balance............................................................................................................................................ RCFDC779 NR M.7.a.

b. Amount included in Schedule RC-C, part I, items 1 through 9............................................................................. RCFDC780 NR M.7.b.

Memorandum items 8.a, 8.b, and 8.c are to be completed semiannually in the June and December reports only.
M.8.
8. Closed-end loans with negative amortization features secured by 1-4 family residential properties in domestic offices:
a. Total amount of closed-end loans with negative amortization features secured by 1-4 family residential properties
RCONF230 0 M.8.a.
(included in Schedule RC-C, part I, items 1.c.(2)(a) and 1.c.(2)(b)).........................................................................
Memorandum items 8.b and 8.c are to be completed semiannually in the June and December reports only by banks that had
closed-end loans with negative amortization features secured by 1-4 family residential properties (as reported in Schedule RC-C,
Part I, Memorandum item 8.a) as of December 31, 2021, that exceeded the lesser of $100 million or 5 percent of total loans and
leases held for investment and held for sale in domestic offices (as reported in Schedule RC-C, Part I, item 12, column B). RCONF231 NR M.8.b.

b.Total maximum remaining amount of negative amortization contractually permitted on closed-end loans secured
by 1-4 family residential properties..........................................................................................................................
c. Total amount of negative amortization on closed-end loans secured by 1-4 family residential properties included
RCONF232 NR M.8.c.
in the amount reported in Memorandum item 8.a above.........................................................................................

5. Memorandum item 7 is to be completed only by institutions that have not yet adopted ASU 2016-13.
 CAPITAL ONE, NATIONAL ASSOCIATION FFIEC 031
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Last Updated on 1/30/2024 28

Dollar amounts in thousands

9. Loans secured by 1-4 family residential properties in domestic offices in process of foreclosure (included in Schedule
RCONF577 0 M.9.
RC-C, part I, items 1.c.(1), 1.c.(2)(a), and 1.c.(2)(b))......................................................................................................

Dollar amounts in thousands

10. Not applicable M.10.

11. Not applicable M.11.

(Column A) Fair value of (Column B) Gross (Column C) Best estimate

acquired loans and leases contractual amounts at acquisition date of
at acquisition date receivable at acquisition contractual cash flows not
Dollar amounts in thousands date expected to be collected
Memorandum items 12.a, 12.b, 12.c, and 12.d are to be completed semiannually in the
June and December reports only.
12. Loans (not subject to the requirements of FASB ASC 310-30 (former AICPA M.12.
Statement of Position 03-3)) and leases held for investment that were acquired
1
in business combinations with acquisition dates in the current calendar year:
a. Loans secured by real estate................................................................ RCFDG091 0 RCFDG092 0 RCFDG093 0 M.12.a.

b. Commercial and industrial loans........................................................... RCFDG094 0 RCFDG095 0 RCFDG096 0 M.12.b.

c. Loans to individuals for household, family, and other personal

RCFDG097 0 RCFDG098 0 RCFDG099 0 M.12.c.
expenditures..............................................................................................
d. All other loans and all leases................................................................. RCFDG100 0 RCFDG101 0 RCFDG102 0 M.12.d.

Dollar amounts in thousands

Memoranda item 13 is to be completed by banks that had construction, land development, and other land loans in domestic offices (as
reported in Schedule RC-C, Part I, item 1.a., column B) that exceeded 100 percent of the sum of tier 1 capital (as reported in Schedule
RC-R, Part I, item 26) plus the allowance for loan and lease losses or the allowance for credit losses on loans and leases, as applicable M.13.
(as reported in Schedule RC, item 4.c) as of December 31, 2021.
13. Construction, land development, and other land loans in domestic offices with interest reserves:
a. Amount of loans that provide for the use of interest reserves (included in Schedule RC-C, part I, item 1.a, column
RCONG376 0 M.13.a.
B ) .............................................................................................................................................................................
b. Amount of interest capitalized from interest reserves on construction, land development, and other land loans
RIADG377 0 M.13.b.
that is included in interest and fee income on loans during the quarter (included in Schedule RI, item 1.a.(1)(a)(2)).
Memorandum item 14 is to be completed by all banks.
RCFDG378 116,939,205 M.14.
14. Pledged loans and leases.........................................................................................................................................
Memorandum item 15 is to be completed for the December report only.
M.15.
15. Reverse mortgages in domestic offices:
a. Reverse mortgages outstanding that are held for investment (included in Schedule RC-C, item 1.c, above)...... RCONPR04 0 M.15.a.

b. Estimated number of reverse mortgage loan referrals to other lenders during the year from whom compensation
RCONPR05 0 M.15.b.
has been received for services performed in connection with the origination of the reverse mortgages.................
c. Principal amount of reverse mortgage originations that have been sold during the year..................................... RCONPR06 0 M.15.c.

Memorandum item 16 is to be completed by all banks.

16. Revolving, open-end loans secured by 1-4 family residential properties and extended under lines of credit in RCONLE75 256 M.16.
domestic offices that have converted to non-revolving closed-end status (included in item 1.c.(1) above)....................
Amounts reported in Memorandum items 17.a and 17.b will not be made available to the public on an individual institution basis.
17. Eligible loan modifications under Section 4013, Temporary Relief from Troubled Debt Restructurings, of the 2020 M.17.
Coronavirus Aid, Relief, and Economic Security Act:
a. Number of Section 4013 loans outstanding......................................................................................................... RCONLG24 CONF M.17.a.

b. Outstanding balance of Section 4013 loans......................................................................................................... RCONLG25 CONF M.17.b.

1. Institutions that have adopted ASU 2016-13 should report only loans held for investment not considered purchased credit-deteriorated in Memorandum item 12.
 CAPITAL ONE, NATIONAL ASSOCIATION FFIEC 031
RSSD-ID 112837 Report Date 12/31/2023
Last Updated on 1/30/2024 29

Schedule RC-C Part II - Loans to Small Businesses and Small Farms(Form Type - 031)
Report the number and amount currently outstanding as of the report date of business loans with "original amounts" of $1,000,000 or less and farm loans with "original
amounts" of $500,000 or less. The following guidelines should be used to determine the "original amount" of a loan:
(1) For loans drawn down under lines of credit or loan commitments, the "original amount" of the loan is the size of the line of credit or loan commitment when the line of
credit or loan commitment was most recently approved, extended, or renewed prior to the report date. However, if the amount currently outstanding as of the report date
exceeds this size, the "original amount" is the amount currently outstanding on the report date. (2) For loan participations and syndications, the "original amount" of the loan
participation or syndication is the entire amount of the credit originated by the lead lender. (3) For all other loans, the "original amount" is the total amount of the loan at
origination or the amount currently outstanding as of the report date, whichever is larger.

Dollar amounts in thousands

1. Not applicable 1.

2. Not applicable 2.

(Column A) Number of Loans (Column B) Amount Currently

Dollar amounts in thousands Outstanding
3. Number and amount currently outstanding of "Loans secured by nonfarm nonresidential
properties" in domestic offices reported in Schedule RC-C, part I, items 1.e.(1) and 1.e.(2), 3.
column B:
a. With original amounts of $100,000 or less..................................................................... RCON5564 124 RCON5565 3,088 3.a.

b. With original amounts of more than $100,000 through $250,000................................... RCON5566 277 RCON5567 24,829 3.b.

c. With original amounts of more than $250,000 through $1,000,000................................ RCON5568 763 RCON5569 255,690 3.c.

4. Number and amount currently outstanding of "Commercial and industrial loans to U.S.
4.
addressees" in domestic offices reported in Schedule RC-C, part I, item 4.a, column B:
a. With original amounts of $100,000 or less..................................................................... RCON5570 2294137 RCON5571 9,964,873 4.a.

b. With original amounts of more than $100,000 through $250,000................................... RCON5572 44970 RCON5573 2,221,118 4.b.

c. With original amounts of more than $250,000 through $1,000,000................................ RCON5574 4181 RCON5575 730,895 4.c.

Dollar amounts in thousands

5. Not applicable 5.

6. Not applicable 6.

(Column A) Number of Loans (Column B) Amount Currently

Dollar amounts in thousands Outstanding
7. Number and amount currently outstanding of "Loans secured by farmland (including farm
residential and other improvements)" in domestic offices reported in Schedule RC-C, part I, 7.
item 1.b, column B:
a. With original amounts of $100,000 or less..................................................................... RCON5578 2 RCON5579 82 7.a.

b. With original amounts of more than $100,000 through $250,000................................... RCON5580 2 RCON5581 16 7.b.

c. With original amounts of more than $250,000 through $500,000................................... RCON5582 7 RCON5583 1,118 7.c.

8. Number and amount currently outstanding of "Loans to finance agricultural production and
other loans to farmers" in domestic offices reported in Schedule RC-C, part I, item 3, column 8.
B:
a. With original amounts of $100,000 or less..................................................................... RCON5584 62 RCON5585 415 8.a.

b. With original amounts of more than $100,000 through $250,000................................... RCON5586 8 RCON5587 470 8.b.

c. With original amounts of more than $250,000 through $500,000................................... RCON5588 0 RCON5589 0 8.c.
 CAPITAL ONE, NATIONAL ASSOCIATION FFIEC 031
RSSD-ID 112837 Report Date 12/31/2023
Last Updated on 1/30/2024 30

Schedule RC-D - Trading Assets and Liabilities(Form Type - 031)

Schedule RC-D is to be completed by banks that reported total trading assets of $10 million or more in any of the four preceding calendar quarters, and all banks meeting
the FDIC's definition of a large or highly complex institution for deposit insurance assessment purposes.

Dollar amounts in thousands Consolidated Bank

1. U.S. Treasury securities............................................................................................................................................... RCFD3531 0 1.

2. U.S. Government agency obligations (exclude mortgage-backed securities).............................................................. RCFD3532 0 2.

3. Securities issued by states and political subdivisions in the U.S................................................................................. RCFD3533 0 3.

4. Mortgage-backed securities (MBS): 4.

a. Residential mortgage pass-through securities issued or guaranteed by FNMA, FHLMC, or GNMA................... RCFDG379 0 4.a.

b. Other residential MBS issued or guaranteed by U.S. Government agencies or sponsored agencies (include
1 RCFDG380 0 4.b.
CMOs, REMICs, and stripped MBS) ......................................................................................................................
c. All other residential MBS...................................................................................................................................... RCFDG381 0 4.c.
1 RCFDK197 0 4.d.
d. Commercial MBS issued or guaranteed by U.S. Government agencies or sponsored agencies .......................
e. All other commercial MBS.................................................................................................................................... RCFDK198 0 4.e.

5. Other debt securities: 5.

a. Structured financial products................................................................................................................................ RCFDHT62 0 5.a.

b. All other debt securities........................................................................................................................................ RCFDG386 0 5.b.

6. Loans: 6.

a. Loans secured by real estate 6.a.

1. Loans secured by 1-4 family residential properties....................................................................................... RCFDHT63 0 6.a.1.

2. All other loans secured by real estate........................................................................................................... RCFDHT64 0 6.a.2.

b. Commercial and industrial loans.......................................................................................................................... RCFDF614 0 6.b.

c. Loans to individuals for household, family, and other personal expenditures (i.e., consumer loans) (includes
RCFDHT65 0 6.c.
purchased paper).....................................................................................................................................................
d. Other loans........................................................................................................................................................... RCFDF618 0 6.d.

7. Not appliable 7.

8. Not applicable 8.

9. Other trading assets.................................................................................................................................................... RCFD3541 34,846 9.

10. Not applicable 10.

11. Derivatives with a positive fair value.......................................................................................................................... RCFD3543 1,487,407 11.

12. Total trading assets (sum of items 1 through 11) (total of column A must equal Schedule RC, item 5).................... RCFD3545 1,522,253 12.

13. Not available 13.

a. Liability for short positions.................................................................................................................................... RCFD3546 0 13.a.

b. Other trading liabilities.......................................................................................................................................... RCFDF624 0 13.b.

14. Derivatives with a negative fair value......................................................................................................................... RCFD3547 2,141,018 14.

15. Total trading liabilities (sum of items 13.a through 14) (total of column A must equal Schedule RC, item 15).......... RCFD3548 2,141,018 15.

1. Unpaid principal balance of loans measured at fair value (reported in Schedule RC-D, items 6.a through 6.d): M.1.

a. Loans secured by real estate M.1.a.

1. Loans secured by 1-4 family residential properties....................................................................................... RCFDHT66 0 M.1.a.1.

2. All other loans secured by real estate........................................................................................................... RCFDHT67 0 M.1.a.2.

b. Commercial and industrial loans.......................................................................................................................... RCFDF632 0 M.1.b.

c. Loans to individuals for household, family, and other personal expenditures (i.e., consumer loans) (includes
RCFDHT68 0 M.1.c.
purchased paper).....................................................................................................................................................
d. Other loans........................................................................................................................................................... RCFDF636 0 M.1.d.

Memorandum items 2 through 10 are to be completed by banks with $10 billion or more in total trading assets.
M.2.
1
2. Loans measured at fair value that are past due 90 days or more:
a. Fair value.............................................................................................................................................................. RCFDF639 NR M.2.a.

b. Unpaid principal balance...................................................................................................................................... RCFDF640 NR M.2.b.

1. U.S. Government agencies include, but are not limited to, such agencies as the Government National Mortgage Association (GNMA), the Federal Deposit Insurance Corporation (FDIC), and
the National Credit Union Administration (NCUA). U.S. Government-sponsored agencies include, but are not limited to, such agencies as the Federal Home Loan Mortgage Corporation (FHLMC)
and the Federal National Mortgage Association (FNMA).
1. The $10 billion trading asset-size test is based on total trading assets reported on the June 30, 2022, Report of Condition.
 CAPITAL ONE, NATIONAL ASSOCIATION FFIEC 031
RSSD-ID 112837 Report Date 12/31/2023
Last Updated on 1/30/2024 31

Dollar amounts in thousands Consolidated Bank

Memorandum items 3 through 10 are to be completed by banks with $10 billion or more in total trading assets.
3. Structured financial products by underlying collateral or reference assets (for each column, sum of Memorandum M.3.
items 3.a through 3.g must equal Schedule RC-D, sum of items 5.a.(1) through (3)):
a. Trust preferred securities issued by financial institutions...................................................................................... RCFDG299 NR M.3.a.

b. Trust preferred securities issued by real estate investment trusts........................................................................ RCFDG332 NR M.3.b.

c. Corporate and similar loans................................................................................................................................. RCFDG333 NR M.3.c.

d. 1-4 family residential MBS issued or guaranteed by U.S. government-sponsored enterprises (GSEs)............... RCFDG334 NR M.3.d.

e. 1-4 family residential MBS not issued or guaranteed by GSEs............................................................................ RCFDG335 NR M.3.e.

f. Diversified (mixed) pools of structured financial products..................................................................................... RCFDG651 NR M.3.f.

g. Other collateral or reference assets..................................................................................................................... RCFDG652 NR M.3.g.

4. Pledged trading assets: M.4.

a. Pledged securities................................................................................................................................................ RCFDG387 NR M.4.a.

b. Pledged loans....................................................................................................................................................... RCFDG388 NR M.4.b.

Dollar amounts in thousands

5. Asset-backed securities: M.5.

a. Credit card receivables......................................................................................................................................... RCFDF643 NR M.5.a.

b. Home equity lines................................................................................................................................................. RCFDF644 NR M.5.b.

c. Automobile loans.................................................................................................................................................. RCFDF645 NR M.5.c.

d. Other consumer loans.......................................................................................................................................... RCFDF646 NR M.5.d.

e. Commercial and industrial loans.......................................................................................................................... RCFDF647 NR M.5.e.

f. Other..................................................................................................................................................................... RCFDF648 NR M.5.f.

6. Retained beneficial interests in securitizations (first-loss or equity tranches) M.6.

7. Equity securities (included in Schedule RC-D, item 9, above): M.7.

a. Readily determinable fair values.......................................................................................................................... RCFDF652 NR M.7.a.

b. Other.................................................................................................................................................................... RCFDF653 NR M.7.b.

8. Loans pending securitization....................................................................................................................................... RCFDF654 NR M.8.

9. Other trading assets (itemize and describe amounts included in Schedule RC-D, item 9, that are greater than
1 M.9.
$1,000,000 and exceed 25% of the item):
a. Disclose component and the dollar amount of that component: M.9.a.

1. Describe component..................................................................................................................................... TEXTF655 NR M.9.a.1.

2. Amount of component................................................................................................................................... RCFDF655 0 M.9.a.2.

b. Disclose component and the dollar amount of that component: M.9.b.

(TEXTF656) NR RCFDF656 0 M.9.b.1.

c. Disclose component and the dollar amount of that component: M.9.c.

(TEXTF657) NR RCFDF657 0 M.9.c.1.

10. Other trading liabilities (itemize and describe amounts included in Schedule RC-D, item 13.b, that are greater than
M.10.
$1,000,000 and exceed 25% of the item):
a. Disclose component and the dollar amount of that component: M.10.a.

1. Describe component..................................................................................................................................... TEXTF658 NR M.10.a.1.

2. Amount of component................................................................................................................................... RCFDF658 0 M.10.a.2.

b. Disclose component and the dollar amount of that component: M.10.b.

(TEXTF659) NR RCFDF659 0 M.10.b.1.

c. Disclose component and the dollar amount of that component: M.10.c.

(TEXTF660) NR RCFDF660 0 M.10.c.1.

1. Exclude equity securities.

 CAPITAL ONE, NATIONAL ASSOCIATION FFIEC 031
RSSD-ID 112837 Report Date 12/31/2023
Last Updated on 1/30/2024 32

Schedule RC-E Part I - Deposits in Domestic Offices(Form Type - 031)

(Column A) Transaction (Column B) Transaction (Column C)
Accounts Total Accounts Memo: Total Nontransaction Accounts
Transaction accounts demand deposits Total nontransaction
(including total demand (included in column A) accounts (including
Dollar amounts in thousands deposits) MMDAs)

Deposits of:
1. Individuals, partnerships, and corporations (include all certified and official
RCONB549 58,115,760 RCONB550 309,350,119 1.
checks).............................................................................................................
2. U.S. Government.......................................................................................... RCON2202 673 RCON2520 0 2.

3. States and political subdivisions in the U.S.................................................. RCON2203 6,423,694 RCON2530 143,281 3.

4. Commercial banks and other depository institutions in the U.S................... RCONB551 3,913 RCONB552 0 4.

5. Banks in foreign countries............................................................................ RCON2213 0 RCON2236 0 5.

6. Foreign governments and official institutions (including foreign central

RCON2216 0 RCON2377 0 6.
banks)...............................................................................................................
7. Total (sum of items 1 through 6) (sum of columns A and C must equal
RCON2215 64,544,040 RCON2210 54,852,957 RCON2385 309,493,400 7.
Schedule RC, item 13.a)..................................................................................
 CAPITAL ONE, NATIONAL ASSOCIATION FFIEC 031
RSSD-ID 112837 Report Date 12/31/2023
Last Updated on 1/30/2024 33

Dollar amounts in thousands

1. Selected components of total deposits (i.e., sum of item 7, columns A and C): M.1.

a. Total Individual Retirement Accounts (IRAs) and Keogh Plan accounts.............................................................. RCON6835 0 M.1.a.

b. Total brokered deposits......................................................................................................................................... RCON2365 18,685,591 M.1.b.

2 RCONHK05 18,572,817 M.1.c.
c. Brokered deposits of $250,000 or less (fully insured brokered deposits) ...........................................................
d. Maturity data for brokered deposits: M.1.d.

1. Brokered deposits of $250,000 or less with a remaining maturity of one year or less (included in Memorandum
RCONHK06 8,145,498 M.1.d.1.
item 1.c above).................................................................................................................................................
2. Not applicable M.1.d.2.

3. Brokered deposits of more than $250,000 with a remaining maturity of one year or less (included in
RCONK220 99,151 M.1.d.3.
Memorandum item 1.b above)..........................................................................................................................
e. Preferred deposits (uninsured deposits of states and political subdivisions in the U.S. reported in item 3 above
RCON5590 5,980,649 M.1.e.
which are secured or collateralized as required under state law) (to be completed for the December report only).
f. Estimated amount of deposits obtained through the use of deposit listing services that are not brokered
RCONK223 14,240,006 M.1.f.
deposits....................................................................................................................................................................
g. Total reciprocal deposits (as of the report date)................................................................................................... RCONJH83 213,047 M.1.g.

Memorandum items 1.h.(1)(a), 1.h.(2)(a), 1.h.(3)(a), and 1.h.(4)(a) are to be completed by banks with $100 billion or more in total
assets M.1.h.
h. Sweep deposits:
1. Fully insured, affiliate sweep deposits........................................................................................................... RCONMT87 0 M.1.h.1.

a. Fully insured, affiliate, retail sweep deposits.......................................................................................... RCONMT88 0 M.1.h.1.a.

2. Not fully insured, affiliate sweep deposits..................................................................................................... RCONMT89 0 M.1.h.2.

a. Not fully insured, affiliate, retail sweep deposits.................................................................................... RCONMT90 0 M.1.h.2.a.

3. Fully insured, non-affiliate sweep deposits................................................................................................... RCONMT91 1,093,209 M.1.h.3.

a. Fully insured, non-affiliate, retail sweep deposits.................................................................................. RCONMT92 1,093,209 M.1.h.3.a.

4. Not fully insured, non-affiliate sweep deposits.............................................................................................. RCONMT93 0 M.1.h.4.

a. Not fully insured, non-affiliate, retail sweep deposits............................................................................. RCONMT94 0 M.1.h.4.a.

i. Total sweep deposits that are not brokered deposits............................................................................................. RCONMT95 0 M.1.i.

2. Components of total nontransaction accounts (sum of Memorandum items 2.a through 2.d must equal item 7, column
M.2.
C above):
a. Savings deposits: M.2.a.

1. Money market deposit accounts (MMDAs)................................................................................................... RCON6810 37,657,846 M.2.a.1.

2. Other savings deposits (excludes MMDAs).................................................................................................. RCON0352 188,822,025 M.2.a.2.

b. Total time deposits of less than $100,000............................................................................................................ RCON6648 42,612,350 M.2.b.

c. Total time deposits of $100,000 through $250,000............................................................................................... RCONJ473 24,644,646 M.2.c.

d. Total time deposits of more than $250,000........................................................................................................... RCONJ474 15,756,533 M.2.d.

e. Individual Retirement Accounts (IRAs) and Keogh Plan accounts of $100,000 or more included in Memorandum
RCONF233 0 M.2.e.
items 2.c and 2.d above...........................................................................................................................................
3. Maturity and repricing data for time deposits of $250,000 or less: M.3.

a. Time deposits of $250,000 or less with a remaining maturity or next repricing date of: M.3.a.

1. Three months or less.................................................................................................................................... RCONHK07 25,503,019 M.3.a.1.

2. Over three months through 12 months......................................................................................................... RCONHK08 22,007,107 M.3.a.2.

3. Over one year through three years............................................................................................................... RCONHK09 12,640,886 M.3.a.3.

4. Over three years........................................................................................................................................... RCONHK10 7,105,984 M.3.a.4.

b. Time deposits of $250,000 or less with a REMAINING MATURITY of one year or less (included in Memorandum
3 RCONHK11 47,510,126 M.3.b.
items 3.a.(1) and 3.a.(2) above) .............................................................................................................................
4. Maturity and repricing data for time deposits of more than $250,000: M.4.

a. Time deposits of more than $250,000 with a remaining maturity or next repricing date of: M.4.a.

1. Three months or less.................................................................................................................................... RCONHK12 9,555,475 M.4.a.1.

2. Over three months through 12 months......................................................................................................... RCONHK13 3,772,075 M.4.a.2.

3. Over one year through three years............................................................................................................... RCONHK14 1,561,297 M.4.a.3.

4. Over three years........................................................................................................................................... RCONHK15 867,686 M.4.a.4.

2. The dollar amount used as the basis for reporting in Memorandum item 1.c reflects the deposit insurance limit in effect on the report date.
3. Report both fixed- and floating-rate time deposits by remaining maturity. Exclude floating rate time deposits with a next repricing date of one year or less that have a remaining maturity of over
one year.
 CAPITAL ONE, NATIONAL ASSOCIATION FFIEC 031
RSSD-ID 112837 Report Date 12/31/2023
Last Updated on 1/30/2024 34

Dollar amounts in thousands

b. Time deposits of more than $250,000 with a REMAINING MATURITY of one year or less (included in
3 RCONK222 13,327,550 M.4.b.
Memorandum items 4.a.(1) and 4.a.(2) above) ......................................................................................................
5. Does your institution offer one or more consumer deposit account products, i.e., transaction account or nontransaction
RCONP752 Yes M.5.
savings account deposit products intended primarily for individuals for personal, household, or family use?................
Memorandum items 6 and 7 are to be completed by institutions with $1 billion or more in total assets that answered "Yes" to Memorandum
item 5 above.
M.6.
6. Components of total transaction account deposits of individuals, partnerships, and corporations (sum of Memorandum
5
items 6.a and 6.b must be less than or equal to item 1, column A, above):
a. Total deposits in those noninterest-bearing transaction account deposit products intended primarily for individuals
RCONP753 10,720,256 M.6.a.
for personal, household, or family use.....................................................................................................................
b. Total deposits in those interest-bearing transaction account deposit products intended primarily for individuals
RCONP754 18,423,358 M.6.b.
for personal, household, or family use.....................................................................................................................
7. Components of total nontransaction account deposits of individuals, partnerships, and corporations (sum of
Memorandum items 7.a.(1), 7.a.(2), 7.b.(1), and 7.b.(2) plus all time deposits of individuals, partnerships, and M.7.
corporations must equal item 1, column C, above):
a. Money market deposit accounts (MMDAs) of individuals, partnerships, and corporations (sum of Memorandum
M.7.a.
items 7.a.(1) and 7.a.(2) must be less than or equal to Memorandum item 2.a.(1) above):
1. Total deposits in those MMDA deposit products intended primarily for individuals for personal, household,
RCONP756 100,347 M.7.a.1.
or family use......................................................................................................................................................
2. Deposits in all other MMDAs of individuals, partnerships, and corporations................................................ RCONP757 37,557,499 M.7.a.2.

b. Other savings deposit accounts of individuals, partnerships, and corporations (sum of Memorandum items
M.7.b.
7.b.(1) and 7.b.(2) must be less than or equal to Memorandum item 2.a.(2) above):
1. Total deposits in those other savings deposit account deposit products intended primarily for individuals
RCONP758 187,584,130 M.7.b.1.
for personal, household, or family use..............................................................................................................
2. Deposits in all other savings deposit accounts of individuals, partnerships, and corporations..................... RCONP759 1,181,198 M.7.b.2.

Schedule RC-E Part II - Deposits in Foreign Offices including Edge and Agreement
subsidiaries and IBFs(Form Type - 031)
Dollar amounts in thousands
Deposits of:
1. Individuals, partnerships, and corporations (include all certified and official checks)................................................. RCFNB553 118,562 1.

2. U.S. banks (including IBFs and foreign branches of U.S. banks) and other U.S. depository institutions..................... RCFNB554 0 2.

3. Foreign banks (including U.S. branches and agencies of foreign banks, including their IBFs).................................... RCFN2625 0 3.

4. Foreign governments and official institutions (including foreign central banks)........................................................... RCFN2650 4,478 4.

5. U.S. Government and states and political subdivisions in the U.S............................................................................... RCFNB555 0 5.

6. Total............................................................................................................................................................................. RCFN2200 123,040 6.

1. Time deposits with a remaining maturity of one year or less (included in Schedule RC, item 13.b)........................... RCFNA245 0 M.1.

5. The $1 billion asset size test is based on the total assets reported on the June 30, 2022, Report of Condition.
 CAPITAL ONE, NATIONAL ASSOCIATION FFIEC 031
RSSD-ID 112837 Report Date 12/31/2023
Last Updated on 1/30/2024 35

Schedule RC-F - Other Assets(Form Type - 031)

Dollar amounts in thousands
2
1. Accrued interest receivable ........................................................................................................................................ RCFDB556 2,477,668 1.

3 RCFD2148 7,887,189 2.
2. Net deferred tax assets ..............................................................................................................................................
4 RCFDHT80 0 3.
3. Interest-only strips receivable (not in the form of a security) .....................................................................................
5 RCFD1752 1,380,794 4.
4. Equity investments without readily determinable fair values ......................................................................................
5. Life insurance assets: 5.

a. General account life insurance assets.................................................................................................................. RCFDK201 107,971 5.a.

b. Separate account life insurance assets................................................................................................................ RCFDK202 1,867,433 5.b.

c. Hybrid account life insurance assets.................................................................................................................... RCFDK270 0 5.c.

6. All other assets (itemize and describe amounts greater than $100,000 that exceed 25% of this item)...................... RCFD2168 6,056,854 6.

a. Prepaid expenses................................................................................................................................................. RCFD2166 0 6.a.

b. Repossessed personal property (including vehicles)........................................................................................... RCFD1578 0 6.b.

c. Derivatives with a positive fair value held for purposes other than trading........................................................... RCFDC010 0 6.c.

d. Not applicable 6.d.

e. Computer software............................................................................................................................................... RCFDFT33 0 6.e.

f. Accounts receivable.............................................................................................................................................. RCFDFT34 0 6.f.

g. Receivables from foreclosed government-guaranteed mortgage loans............................................................... RCFDFT35 0 6.g.

h. Disclose component and the dollar amount of that component: 6.h.

1. Describe component..................................................................................................................................... TEXT3549 Click here for value 6.h.1.

2. Amount of component................................................................................................................................... RCFD3549 2,222,607 6.h.2.

i. Disclose component and the dollar amount of that component: 6.i.

1. Describe component..................................................................................................................................... TEXT3550 NR 6.i.1.

2. Amount of component................................................................................................................................... RCFD3550 0 6.i.2.

j. Disclose component and the dollar amount of that component: 6.j.

1. Describe component..................................................................................................................................... TEXT3551 NR 6.j.1.

2. Amount of component................................................................................................................................... RCFD3551 0 6.j.2.

7. Total (sum of items 1 through 6) (must equal Schedule RC, item 11)......................................................................... RCFD2160 19,777,909 7.

(TEXT3549) Misc. Assets (NMTC Loans)

2. Include accrued interest receivable on loans, leases, debt securities, and other interest-bearing assets. Exclude accrued interest receivables on financial assets that are reported elsewhere on
the balance sheet.
3. See discussion of deferred income taxes in Glossary entry on "income taxes."
4. Report interest-only strips receivable in the form of a security as available-for-sale securities in Schedule RC, item 2.b, or as trading assets in Schedule RC, item 5, as appropriate.
5. Include Federal Reserve stock, Federal Home Loan Bank stock, and bankers' bank stock.
 CAPITAL ONE, NATIONAL ASSOCIATION FFIEC 031
RSSD-ID 112837 Report Date 12/31/2023
Last Updated on 1/30/2024 36

Schedule RC-G - Other Liabilities(Form Type - 031)

Dollar amounts in thousands
1. Not available 1.

6 RCON3645 280,414 1.a.

a. Interest accrued and unpaid on deposits in domestic offices .............................................................................
b. Other expenses accrued and unpaid (includes accrued income taxes payable).................................................. RCFD3646 10,990,081 1.b.
2 RCFD3049 0 2.
2. Net deferred tax liabilities ...........................................................................................................................................
7 RCFDB557 158,366 3.
3. Allowance for credit losses on off-balance sheet credit exposures ............................................................................
4. All other liabilities (itemize and describe amounts greater than $100,000 that exceed 25 percent of this item)......... RCFD2938 9,619,540 4.

a. Accounts payable................................................................................................................................................. RCFD3066 0 4.a.

b. Deferred compensation liabilities.......................................................................................................................... RCFDC011 0 4.b.

c. Dividends declared but not yet payable................................................................................................................ RCFD2932 0 4.c.

d. Derivatives with a negative fair value held for purposes other than trading......................................................... RCFDC012 0 4.d.

e. Operating lease liabilities..................................................................................................................................... RCFDLB56 0 4.e.

f. Disclose component and the dollar amount of that component: 4.f.

1. Describe component..................................................................................................................................... TEXT3552 NR 4.f.1.

2. Amount of component................................................................................................................................... RCFD3552 0 4.f.2.

g. Disclose component and the dollar amount of that component: 4.g.

1. Describe component..................................................................................................................................... TEXT3553 NR 4.g.1.

2. Amount of component................................................................................................................................... RCFD3553 0 4.g.2.

h. Disclose component and the dollar amount of that component: 4.h.

1. Describe component..................................................................................................................................... TEXT3554 NR 4.h.1.

2. Amount of component................................................................................................................................... RCFD3554 0 4.h.2.

5. Total............................................................................................................................................................................. RCFD2930 21,048,401 5.

6. For savings banks, include "dividends" accrued and unpaid on deposits.

2. See discussion of deferred income taxes in Glossary entry on "income taxes."
7. Institutions that have adopted ASU 2016-13 should report in Schedule RC-G, item 3 the allowance for credit losses on those off-balance sheet credit exposures that are not unconditionally
cancelable.
 CAPITAL ONE, NATIONAL ASSOCIATION FFIEC 031
RSSD-ID 112837 Report Date 12/31/2023
Last Updated on 1/30/2024 37

Schedule RC-H - Selected Balance Sheet Items for Domestic Offices(Form Type - 031)
To be completed only by banks with foreign offices.

Dollar amounts in thousands

1. Not applicable 1.

2. Not applicable 2.

3. Securities purchased under agreements to resell....................................................................................................... RCONB989 0 3.

4. Securities sold under agreements to repurchase........................................................................................................ RCONB995 538,240 4.

5. Other borrowed money................................................................................................................................................ RCON3190 24,553,075 5.

EITHER
RCON2163 6,764,740 6.
6. Net due from own foreign offices, Edge and Agreement subsidiaries, and IBFs.........................................................
OR
RCON2941 0 7.
7. Net due to own foreign offices, Edge and Agreement subsidiaries, and IBFs.............................................................
8. Total assets (excludes net due from foreign offices, Edge and Agreement subsidiaries, and IBFs)............................ RCON2192 468,302,931 8.

9. Total liabilities (excludes net due to foreign offices, Edge and Agreement subsidiaries, and IBFs)............................. RCON3129 421,880,245 9.

(Column A) Amortized Cost of (Column B) Fair Value of

Dollar amounts in thousands Held-to-Maturity Securities Available-for-Sale Securities

10. U.S. Treasury securities....................................................................................................... RCON0211 0 RCON1287 5,272,225 10.

11. U.S. Government agency obligations (exclude mortgage-backed securities)...................... RCON8492 0 RCON8495 9,998 11.

12. Securities issued by states and political subdivisions in the U.S......................................... RCON8496 0 RCON8499 0 12.

13. Mortgage-backed securities (MBS): 13.

a. Mortgage pass-through securities: 13.a.

1. Issued or guaranteed by FNMA, FHLMC, or GNMA............................................... RCONG389 0 RCONG390 47,981,505 13.a.1.

2. Other mortgage pass-through securities................................................................. RCON1709 0 RCON1713 0 13.a.2.

b. Other mortgage-backed securities (include CMOs, REMICs, and stripped MBS): 13.b.
1 RCONG393 0 RCONG394 18,360,255 13.b.1.
1. Issued or guaranteed by U.S. Government agencies or sponsored agencies .......
2. All other mortgage-backed securities...................................................................... RCON1733 0 RCON1736 319,588 13.b.2.

14. Other domestic debt securities (include domestic structured financial products and domestic
RCONG397 0 RCONG398 6,331,808 14.
asset-backed securities)............................................................................................................
15. Other foreign debt securities (include foreign structured financial products and foreign
RCONG399 0 RCONG400 461,609 15.
asset-backed securities)............................................................................................................
16. Not applicable. 16.

17. Total held-to-maturity and available-for-sale debt securities (sum of items 10 through 15).. RCON1754 0 RCON1773 78,736,988 17.

Dollar amounts in thousands

18. Equity investments not held for trading: 18.

4 RCONJA22 578,068 18.a.

a. Equity securities with readily determinable fair values .......................................................................................
b. Equity investments without readily determinable fair values................................................................................ RCON1752 1,380,794 18.b.

Items 19, 20 and 21 are to be completed by banks that reported total trading assets of $10 million or more in any of the four preceding
calendar quarters and all banks meeting the FDIC's definition of a large or highly complex institution for deposit insurance assessment
purposes. RCON3545 1,522,253 19.

19. Total trading assets....................................................................................................................................................

20. Total trading liabilities................................................................................................................................................. RCON3548 2,141,018 20.

21. Total loans held for trading......................................................................................................................................... RCONHT71 0 21.

tem 22 is to be completed by banks that: (1) have elected to report financial instruments or servicing assets and liabilities at fair value
under a fair value option with changes in fair value recognized in earnings, or (2) are required to complete Schedule RC-D, Trading Assets
and Liabilities. RCONJF75 0 22.

22. Total amount of fair value option loans held for investment and held for sale............................................................

1. U.S. Government agencies include, but are not limited to, such agencies as the Government National Mortgage Association (GNMA), the Federal Deposit Insurance Corporation (FDIC), and
the National Credit Union Administration (NCUA). U.S. Government-sponsored agencies include, but are not limited to, such agencies as the Federal Home Loan Mortgage Corporation (FHLMC)
and the Federal National Mortgage Association (FNMA).
4. Item 18.a is to be completed by all institutions. See the instructions for this item and the Glossary entry for "Securities Activities" for further detail on accounting for investments in equity securities.
 CAPITAL ONE, NATIONAL ASSOCIATION FFIEC 031
RSSD-ID 112837 Report Date 12/31/2023
Last Updated on 1/30/2024 38

Schedule RC-I - Assets and Liabilities of IBFs(Form Type - 031)

To be completed only by banks with IBFs and other "foreign" offices.

Dollar amounts in thousands

1. Total IBF assets of the consolidated bank (component of Schedule RC, item 12)...................................................... RCFN2133 NR 1.

2. Total IBF liabilities (component of Schedule RC, item 21)........................................................................................... RCFN2898 NR 2.

Schedule RC-K - Quarterly Averages(Form Type - 031)

Dollar amounts in thousands
1. Interest-bearing balances due from depository institutions......................................................................................... RCFD3381 40,089,524 1.

2 RCFDB558 5,255,075 2.
2. U.S. Treasury securities and U.S. Government agency obligations (excluding mortgage-backed securities) ............
2 RCFDB559 75,605,977 3.
3. Mortgage-backed securities .......................................................................................................................................
2 RCFDB560 7,776,649 4.
4. All other debt securities and equity securities with readily determinable fair values not held for trading ...................
5. Federal funds sold and securities purchased under agreements to resell.................................................................. RCFD3365 543 5.

6. Loans: 6.

a. Loans in domestic offices: 6.a.

1. Total loans..................................................................................................................................................... RCON3360 310,155,995 6.a.1.

2. Loans secured by real estate: 6.a.2.

a. Loans secured by 1-4 family residential properties............................................................................... RCON3465 129,549 6.a.2.a.

b. All other loans secured by real estate.................................................................................................... RCON3466 29,191,862 6.a.2.b.

3. Loans to finance agricultural production and other loans to farmers ........................................................... RCON3386 899 6.a.3.

4. Commercial and industrial loans................................................................................................................... RCON3387 46,980,271 6.a.4.

5. Loans to individuals for household, family, and other personal expenditures: 6.a.5.

a. Credit cards........................................................................................................................................... RCONB561 129,959,618 6.a.5.a.

b. Other (includes revolving credit plans other than credit cards, automobile loans, and other consumer
RCONB562 74,871,167 6.a.5.b.
loans).........................................................................................................................................................
b. Total loans in foreign offices, Edge and Agreement subsidiaries, and IBFs......................................................... RCFN3360 6,514,746 6.b.

Item 7 is to be completed by banks with total trading assets of $10 million or more in any of the four preceding calendar quarters and all
banks meeting the FDIC's definition of a large or highly complex institution for deposit insurance assessment purposes. RCFD3401 1,520,532 7.
7. Trading assets..............................................................................................................................................................
8. Lease financing receivables (net of unearned income)............................................................................................... RCFD3484 0 8.
4 RCFD3368 478,716,803 9.
9. Total assets ................................................................................................................................................................
10. Interest-bearing transaction accounts in domestic offices (interest-bearing demand deposits, NOW accounts, ATS
RCON3485 37,698,644 10.
accounts, and telephone and preauthorized transfer accounts)......................................................................................
11. Nontransaction accounts in domestic offices: 11.

a. Savings deposits (includes MMDAs).................................................................................................................... RCONB563 227,196,104 11.a.

b. Time deposits of $250,000 or less........................................................................................................................ RCONHK16 66,008,643 11.b.

c. Time deposits of more than $250,000.................................................................................................................. RCONHK17 14,978,944 11.c.

12. Interest-bearing deposits in foreign offices, EDGE and Agreement subsidiaries, and IBFs...................................... RCFN3404 0 12.

13. Federal funds purchased and securities sold under agreements to repurchase....................................................... RCFD3353 426,510 13.

14. Other borrowed money (includes mortgage indebtedness and obligations under capitalized leases)...................... RCFD3355 22,870,327 14.

2. Quarterly averages for all debt securities should be based on amortized cost.
2. Quarterly averages for all debt securities should be based on amortized cost.
4. The quarterly average for total assets should reflect securities not held for trading as follows: a) Debt securities at amortized cost, b) Equity securities with readily determinable fair values at
fair value, c) Equity investments without readily determinable fair values, their balance sheet carrying values (i.e., fair value or, if elected, cost minus impairment, if any, plus or minus changes
resulting from observable price changes).
 CAPITAL ONE, NATIONAL ASSOCIATION FFIEC 031
RSSD-ID 112837 Report Date 12/31/2023
Last Updated on 1/30/2024 39

Schedule RC-L - Derivatives and Off-Balance Sheet Items(Form Type - 031)

Please read carefully the instructions for the preparation of Schedule RC-L. Some of the amounts reported in Schedule RC-L are regarded as volume indicators and not
necessarily as measures of risk.

Dollar amounts in thousands

1. Unused commitments: 1.

a. Revolving, open-end lines secured by 1-4 family residential properties, i.e., home equity lines.......................... RCFD3814 19,178 1.a.

Item 1.a.(1) is to be completed for the December report only.

RCONHT72 0 1.a.1.
1. Unused commitments for reverse mortgages outstanding that are held for investment in domestic offices..
b. Credit card lines (Sum of items 1.b.(1) and 1.b.(2) must equal item 1.b)............................................................. RCFD3815 392,285,533 1.b.

Items 1.b.(1) and 1.b.(2) are to be completed by banks with either $300 million or more in total assets or $300 million or more
in credit card lines. (Sum of items 1.b.(1) and 1.b.(2) must equal item 1.b)
Items 1.b.(1) and 1.b.(2) are to be completed semiannually in the June and December reports only. RCFDJ455 368,158,069 1.b.1.

1. Unused consumer credit card lines...............................................................................................................

2. Other unused credit card lines...................................................................................................................... RCFDJ456 24,127,464 1.b.2.

c. Commitments to fund commercial real estate, construction, and land development loans: 1.c.

1. Secured by real estate: 1.c.1.

a. 1-4 family residential construction loan commitments........................................................................... RCFDF164 113 1.c.1.a.

b. Commercial real estate, other construction loan, and land development loan commitments................ RCFDF165 3,889,366 1.c.1.b.

2. Not secured by real estate............................................................................................................................ RCFD6550 7,374,143 1.c.2.

d. Securities underwriting......................................................................................................................................... RCFD3817 0 1.d.

e. Other unused commitments: 1.e.

1. Commercial and industrial loans................................................................................................................... RCFDJ457 24,526,809 1.e.1.

2. Loans to financial institutions........................................................................................................................ RCFDJ458 11,233,111 1.e.2.

3. All other unused commitments...................................................................................................................... RCFDJ459 530,403 1.e.3.

2. Financial standby letters of credit and foreign office guarantees................................................................................. RCFD3819 1,236,379 2.

Item 2.a is to be completed by banks with $1 billion or more in total assets.

1
RCFD3820 76,135 2.a.
a. Amount of financial standby letters of credit conveyed to others ........................................................................
3. Performance standby letters of credit and foreign office guarantees........................................................................... RCFD3821 220,152 3.

Item 3.a is to be completed by banks with $1 billion or more in total assets.

1
RCFD3822 84,647 3.a.
a. Amount of performance standby letters of credit conveyed to others .................................................................
4. Commercial and similar letters of credit...................................................................................................................... RCFD3411 8,265 4.

5. Not applicable 5.

6. Securities lent and borrowed: 6.

a. Securities lent (including customers' securities lent where the customer is indemnified against loss by the
RCFD3433 0 6.a.
reporting bank).........................................................................................................................................................
b. Securities borrowed.............................................................................................................................................. RCFD3432 0 6.b.

(Column A) Sold Protection (Column B) Purchased

Dollar amounts in thousands Protection

7. Credit derivatives: 7.

a. Notional amounts: 7.a.

1. Credit default swaps................................................................................................ RCFDC968 0 RCFDC969 0 7.a.1.

2. Total return swaps................................................................................................... RCFDC970 0 RCFDC971 0 7.a.2.

3. Credit options.......................................................................................................... RCFDC972 0 RCFDC973 0 7.a.3.

4. Other credit derivatives........................................................................................... RCFDC974 3,136,862 RCFDC975 3,867,151 7.a.4.

b. Gross fair values: 7.b.

1. Gross positive fair value.......................................................................................... RCFDC219 0 RCFDC221 19,914 7.b.1.

2. Gross negative fair value......................................................................................... RCFDC220 199 RCFDC222 1,079 7.b.2.

 CAPITAL ONE, NATIONAL ASSOCIATION FFIEC 031
RSSD-ID 112837 Report Date 12/31/2023
Last Updated on 1/30/2024 40

Dollar amounts in thousands

1 7.c.
c. Notional amounts by regulatory capital treatment:
1. Positions covered under the Market Risk Rule: 7.c.1.

a. Sold protection.............................................................................................................................................. RCFDG401 0 7.c.1.a.

b. Purchased protection.................................................................................................................................... RCFDG402 0 7.c.1.b.

2. All other positions: 7.c.2.

a. Sold protection.............................................................................................................................................. RCFDG403 3,136,862 7.c.2.a.

b. Purchased protection that is recognized as a guarantee for regulatory capital purposes............................. RCFDG404 0 7.c.2.b.

c. Purchased protection that is not recognized as a guarantee for regulatory capital purposes....................... RCFDG405 3,867,151 7.c.2.c.

(Column A) Remaining (Column B) Remaining (Column C) Remaining

Maturity of One Year or Maturity of Over One Year Maturity of Over Five
Dollar amounts in thousands Less Through Five Years Years

d. Notional amounts by remaining maturity: 7.d.

2 7.d.1.
1. Sold credit protection:
a. Investment grade............................................................................ RCFDG406 0 RCFDG407 0 RCFDG408 0 7.d.1.a.

b. Subinvestment grade...................................................................... RCFDG409 353,235 RCFDG410 2,574,640 RCFDG411 208,987 7.d.1.b.

3 7.d.2.
2. Purchased credit protection:
a. Investment grade............................................................................ RCFDG412 0 RCFDG413 0 RCFDG414 0 7.d.2.a.

b. Subinvestment grade...................................................................... RCFDG415 717,545 RCFDG416 2,598,664 RCFDG417 550,942 7.d.2.b.

1. The asset-size tests and the $300 million credit card lines test are based on the total assets and credit card lines reported in the June 30, 2022, Report of Condition.
1. The asset-size tests and the $300 million credit card lines test are based on the total assets and credit card lines reported in the June 30, 2022, Report of Condition.
 CAPITAL ONE, NATIONAL ASSOCIATION FFIEC 031
RSSD-ID 112837 Report Date 12/31/2023
Last Updated on 1/30/2024 41

Dollar amounts in thousands

8. Spot foreign exchange contracts................................................................................................................................. RCFD8765 295,250 8.

9. All other off-balance sheet liabilities (exclude derivatives) (itemize and describe each component of this item over
RCFD3430 0 9.
25% of Schedule RC, item 27.a, "Total bank equity capital")..........................................................................................
a. Not applicable 9.a.

b. Commitments to purchase when-issued securities.............................................................................................. RCFD3434 0 9.b.

c. Standby letters of credit issued by another party (e.g., a Federal Home Loan Bank) on the bank's behalf......... RCFDC978 0 9.c.

d. Disclose component and the dollar amount of that component: 9.d.

1. Describe component..................................................................................................................................... TEXT3555 NR 9.d.1.

2. Amount of component................................................................................................................................... RCFD3555 0 9.d.2.

e. Disclose component and the dollar amount of that component: 9.e.

1. Describe component..................................................................................................................................... TEXT3556 NR 9.e.1.

2. Amount of component................................................................................................................................... RCFD3556 0 9.e.2.

f. Disclose component and the dollar amount of that component: 9.f.

(TEXT3557) NR RCFD3557 0 9.f.1.

10. All other off-balance sheet assets (exclude derivatives) (itemize and describe each component of this item over
RCFD5591 0 10.
25% of Schedule RC, item 27.a, "Total bank equity capital")..........................................................................................
a. Commitments to sell when-issued securities....................................................................................................... RCFD3435 0 10.a.

b. Disclose component and the dollar amount of that component: 10.b.

1. Describe component..................................................................................................................................... TEXT5592 NR 10.b.1.

2. Amount of component................................................................................................................................... RCFD5592 0 10.b.2.

c. Disclose component and the dollar amount of that component: 10.c.

1. Describe component..................................................................................................................................... TEXT5593 NR 10.c.1.

2. Amount of component................................................................................................................................... RCFD5593 0 10.c.2.

d. Disclose component and the dollar amount of that component: 10.d.

1. Describe component..................................................................................................................................... TEXT5594 NR 10.d.1.

2. Amount of component................................................................................................................................... RCFD5594 0 10.d.2.

e. Disclose component and the dollar amount of that component: 10.e.

1. Describe component..................................................................................................................................... TEXT5595 NR 10.e.1.

2. Amount of component................................................................................................................................... RCFD5595 0 10.e.2.

Items 11.a and 11.b are to be completed semiannually in the June and December reports only.
11.
11. Year-to-date merchant credit card sales volume:
a. Sales for which the reporting bank is the acquiring bank..................................................................................... RCFDC223 5,396,213 11.a.

b. Sales for which the reporting bank is the agent bank with risk............................................................................. RCFDC224 0 11.b.

1. Sum of items 7.c.(1)(a) and 7.c.(2)(a), must equal sum of items 7.a.(1) through (4), column A. Sum of items 7.c.(1)(b), 7.c.(2)(b), and 7.c.(2)(c) must equal sum of items 7.a.(1) through (4),
column B.
2. Sum of items 7.d.(1)(a) and (b), columns A through C, must equal sum of items 7.a.(1) through (4), column A.
3. Sum of items 7.d.(2)(a) and (b), columns A through C, must equal sum of items 7.a.(1) through (4), column B.
 CAPITAL ONE, NATIONAL ASSOCIATION FFIEC 031
RSSD-ID 112837 Report Date 12/31/2023
Last Updated on 1/30/2024 42

(Column A) Interest (Column B) Foreign (Column C) Equity (Column D)

Rate Contracts Exchange Contracts Derivative Contracts Commodity and Other
Dollar amounts in thousands Contracts

12. Gross amounts (e.g., notional amounts): 12.

a. Futures contracts................................................................. RCFD8693 15,065,000 RCFD8694 0 RCFD8695 0 RCFD8696 9,810,166 12.a.

b. Forward contracts................................................................ RCFD8697 564,138 RCFD8698 12,170,190 RCFD8699 0 RCFD8700 0 12.b.

c. Exchange-traded option contracts: 12.c.

1. Written options............................................................. RCFD8701 0 RCFD8702 0 RCFD8703 0 RCFD8704 0 12.c.1.

2. Purchased options........................................................ RCFD8705 0 RCFD8706 0 RCFD8707 0 RCFD8708 0 12.c.2.

d. Over-the-counter option contracts: 12.d.

1. Written options............................................................. RCFD8709 0 RCFD8710 22,222 RCFD8711 0 RCFD8712 524,475 12.d.1.

2. Purchased options........................................................ RCFD8713 0 RCFD8714 22,222 RCFD8715 0 RCFD8716 342,901 12.d.2.

e. Swaps.................................................................................. RCFD3450 200,882,413 RCFD3826 4,882,937 RCFD8719 0 RCFD8720 7,753,231 12.e.

13. Total gross notional amount of derivative contracts held for

RCFDA126 107,742,577 RCFDA127 9,739,789 RCFD8723 0 RCFD8724 18,430,773 13.
trading.............................................................................................
14. Total gross notional amount of derivative contracts held for
RCFD8725 108,768,974 RCFD8726 7,357,783 RCFD8727 0 RCFD8728 0 14.
purposes other than trading............................................................
a. Interest rate swaps where the bank has agreed to pay a
RCFDA589 5,408,639 14.a.
fixed rate..................................................................................
15. Gross fair values of derivative contracts: 15.

a. Contracts held for trading: 15.a.

1. Gross positive fair value............................................... RCFD8733 1,103,008 RCFD8734 143,088 RCFD8735 0 RCFD8736 1,148,681 15.a.1.

2. Gross negative fair value.............................................. RCFD8737 1,292,501 RCFD8738 134,769 RCFD8739 0 RCFD8740 1,146,152 15.a.2.

b. Contracts held for purposes other than trading: 15.b.

1. Gross positive fair value............................................... RCFD8741 246,361 RCFD8742 1,952 RCFD8743 0 RCFD8744 0 15.b.1.

2. Gross negative fair value.............................................. RCFD8745 64,308 RCFD8746 155,301 RCFD8747 0 RCFD8748 0 15.b.2.

(Column A) (Column B) (Column C) (Column D) (Column E)

Banks and Hedge Funds Sovereign Corporations
Securities Firms Governments and All Other
Dollar amounts in thousands Counterparties
Item 16 is to be completed only by banks with total assets of $10 billion or more.
16.
1
16. Over-the counter derivatives:
RCFDG418 RCFDG420 RCFDG421 RCFDG422
16.a.
a. Net current credit exposure........................................................ 2,156,890 0 0 828,976

b. Fair value of collateral: 16.b.

RCFDG423 RCFDG425 RCFDG426 RCFDG427
16.b.1.
1. Cash - U.S. dollar................................................................ 858,083 0 0 0
RCFDG428 RCFDG430 RCFDG431 RCFDG432
16.b.2.
2. Cash - Other currencies...................................................... 0 0 0 0
RCFDG433 RCFDG435 RCFDG436 RCFDG437
16.b.3.
3. U.S. Treasury securities....................................................... 5,497 0 0 0
4. U.S. Government agency and U.S. Government-sponsored RCFDG438 RCFDG440 RCFDG441 RCFDG442
16.b.4.
agency debt securities............................................................ 10,055 0 0 0
RCFDG443 RCFDG445 RCFDG446 RCFDG447
16.b.5.
5. Corporate bonds................................................................. 0 0 0 0
RCFDG448 RCFDG450 RCFDG451 RCFDG452
16.b.6.
6. Equity securities.................................................................. 0 0 0 0
RCFDG453 RCFDG455 RCFDG456 RCFDG457
16.b.7.
7. All other collateral................................................................ 0 0 0 0
8. Total fair value of collateral (sum of items 16.b.(1) through RCFDG458 RCFDG460 RCFDG461 RCFDG462
16.b.8.
(7)).......................................................................................... 873,635 0 0 0

1. The $10 billion asset-size test is based on the total assets reported on the June 30, 2022, Report of Condition.
 CAPITAL ONE, NATIONAL ASSOCIATION FFIEC 031
RSSD-ID 112837 Report Date 12/31/2023
Last Updated on 1/30/2024 43

Schedule RC-M - Memoranda(Form Type - 031)

Dollar amounts in thousands
1. Extensions of credit by the reporting bank to its executive officers, directors, principal shareholders, and their related
1.
interests as of the report date:
a. Aggregate amount of all extensions of credit to all executive officers, directors, principal shareholders, and their
RCFD6164 964 1.a.
related interests........................................................................................................................................................
b. Number of executive officers, directors, and principal shareholders to whom the amount of all extensions of
credit by the reporting bank (including extensions of credit to related interests) equals or exceeds the lesser of RCFD6165 0 1.b.
$500,000 or 5 percent of total capital as defined for this purpose in agency regulations........................................
2. Intangible assets: 2.

a. Mortgage servicing assets................................................................................................................................... RCFD3164 389,747 2.a.

1. Estimated fair value of mortgage servicing assets........................................................................................ RCFDA590 389,747 2.a.1.

b. Goodwill................................................................................................................................................................ RCFD3163 14,731,646 2.b.

c. All other intangible assets..................................................................................................................................... RCFDJF76 299,835 2.c.

d. Total (sum of items 2.a, 2.b, and 2.c) (must equal Schedule RC, item 10)........................................................... RCFD2143 15,421,228 2.d.

3. Other real estate owned: 3.

a. Construction, land development, and other land in domestic offices................................................................... RCON5508 0 3.a.

b. Farmland in domestic offices................................................................................................................................ RCON5509 0 3.b.

c. 1-4 family residential properties in domestic offices............................................................................................. RCON5510 0 3.c.

d. Multifamily (5 or more) residential properties in domestic offices......................................................................... RCON5511 0 3.d.

e. Nonfarm nonresidential properties in domestic offices........................................................................................ RCON5512 41,283 3.e.

f. In foreign offices.................................................................................................................................................... RCFN5513 0 3.f.

g. Total (sum of items 3.a through 3.g) (must equal Schedule RC, item 7).............................................................. RCFD2150 41,283 3.g.

4. Cost of equity securities with readily determinable fair values not held for trading (the fair value of which is reported
1 RCFDJA29 0 4.
in Schedule RC, item 2.c) ..............................................................................................................................................
5. Other borrowed money: 5.

a. Federal Home Loan Bank advances: 5.a.

1 5.a.1.
1. Advances with a remaining maturity or next repricing date of:
a. One year or less.................................................................................................................................... RCFDF055 0 5.a.1.a.

b. Over one year through three years........................................................................................................ RCFDF056 0 5.a.1.b.

c. Over three years through five years....................................................................................................... RCFDF057 0 5.a.1.c.

d. Over five years....................................................................................................................................... RCFDF058 0 5.a.1.d.

2 RCFD2651 0 5.a.2.
2. Advances with a remaining maturity of one year or less (included in item 5.a.(1)(a) above) ......................
3. Structured advances (included in items 5.a.(1)(a) - (d) above)..................................................................... RCFDF059 0 5.a.3.

b. Other borrowings: 5.b.

3 5.b.1.
1. Other borrowings with a remaining maturity or next repricing date of:
a. One year or less.................................................................................................................................... RCFDF060 8,442,316 5.b.1.a.

b. Over one year through three years........................................................................................................ RCFDF061 10,266,227 5.b.1.b.

c. Over three years through five years....................................................................................................... RCFDF062 5,840,876 5.b.1.c.

d. Over five years....................................................................................................................................... RCFDF063 3,656 5.b.1.d.

4 RCFDB571 4,138,738 5.b.2.
2. Other borrowings with a remaining maturity of one year or less (included in item 5.b.(1)(a) above) ...........
c. Total (sum of items 5.a.(1)(a)-(d) and items 5.b.(1)(a)-(d)) (must equal Schedule RC, item 16).......................... RCFD3190 24,553,075 5.c.

6. Does the reporting bank sell private label or third party mutual funds and annuities?................................................ RCFDB569 No 6.

7. Assets under the reporting bank's management in proprietary mutual funds and annuities....................................... RCFDB570 0 7.

8. Internet Web site addresses and physical office trade names: 8.

a. Uniform Resource Locator (URL) of the reporting institution's primary Internet Web site (home page), if any
TEXT4087 Click here for value 8.a.
(Example: www.examplebank.com):........................................................................................................................

1. Item 4 is to be completed only by insured state banks that have been approved by the FDIC to hold grandfathered equity investments. See instructions for this item and the Glossary entry for
"Securities Activities" for further detail on accounting for investments in equity securities.
1. Report fixed-rate advances by remaining maturity and floating-rate advances by next repricing date.
2. Report both fixed- and floating-rate advances by remaining maturity. Exclude floating-rate advances with a next repricing date of one year or less that have a remaining maturity of over one
year.
3. Report fixed-rate other borrowings by remaining maturity and floating-rate other borrowings by next repricing date.
4. Report both fixed- and floating-rate other borrowings by remaining maturity. Exclude floating rate other borrowings with a next repricing date of one year or less that have a remaining maturity
of over one year.
 CAPITAL ONE, NATIONAL ASSOCIATION FFIEC 031
RSSD-ID 112837 Report Date 12/31/2023
Last Updated on 1/30/2024 44

Dollar amounts in thousands

b. URLs of all other public-facing Internet Web sites that the reporting institution uses to accept or solicit deposits
1 8.b.
from the public, if any (Example: www.examplebank.biz):
1. URL 1............................................................................................................................................................ TE01N528 Click here for value 8.b.1.

2. URL 2............................................................................................................................................................ TE02N528 Click here for value 8.b.2.

3. URL 3............................................................................................................................................................ TE03N528 Click here for value 8.b.3.

4. URL 4............................................................................................................................................................ TE04N528 NR 8.b.4.

5. URL 5............................................................................................................................................................ TE05N528 NR 8.b.5.

6. URL 6............................................................................................................................................................ TE06N528 NR 8.b.6.

7. URL 7............................................................................................................................................................ TE07N528 NR 8.b.7.

8. URL 8............................................................................................................................................................ TE08N528 NR 8.b.8.

9. URL 9............................................................................................................................................................ TE09N528 NR 8.b.9.

10. URL 10........................................................................................................................................................ TE10N528 NR 8.b.10.

c. Trade names other than the reporting institution's legal title used to identify one or more of the institution's
8.c.
physical offices at which deposits are accepted or solicited from the public, if any:
1. Trade name 1................................................................................................................................................ TE01N529 Click here for value 8.c.1.

2. Trade name 2................................................................................................................................................ TE02N529 NR 8.c.2.

3. Trade name 3................................................................................................................................................ TE03N529 NR 8.c.3.

4. Trade name 4................................................................................................................................................ TE04N529 NR 8.c.4.

5. Trade name 5................................................................................................................................................ TE05N529 NR 8.c.5.

6. Trade name 6................................................................................................................................................ TE06N529 NR 8.c.6.

Item 9 is to be completed annually in the December report only.

9. Do any of the bank's Internet Web sites have transactional capability, i.e., allow the bank's customers to execute RCFD4088 Yes 9.
transactions on their accounts through the Web site?.....................................................................................................
10. Secured liabilities: 10.

a. Amount of "Federal funds purchased in domestic offices" that are secured (included in Schedule RC, item
RCONF064 0 10.a.
14.a).........................................................................................................................................................................
b. Amount of "Other borrowings" that are secured (included in Schedule RC-M, items 5.b.(1)(a) - (d)).................. RCFDF065 18,043,310 10.b.

11. Does the bank act as trustee or custodian for Individual Retirement Accounts, Health Savings Accounts, and other
RCONG463 No 11.
similar accounts?.............................................................................................................................................................
12. Does the bank provide custody, safekeeping, or other services involving the acceptance of orders for the sale or
RCONG464 No 12.
purchase of securities?...................................................................................................................................................
13. Assets covered by loss-sharing agreements with the FDIC:..................................................................................... RCFDK192 0 13.

Items 14.a and 14.b are to be completed annually in the December report only.
14.
14. Captive insurance and reinsurance subsidiaries:
2 RCFDK193 0 14.a.
a. Total assets of captive insurance subsidiaries ....................................................................................................
2 RCFDK194 0 14.b.
b. Total assets of captive reinsurance subsidiaries .................................................................................................
Item 15 is to be completed by institutions that are required or have elected to be treated as a Qualified Thrift Lender.
15.
15. Qualified Thrift Lender (QTL) test:
a. Does the institution use the Home Owners' Loan Act (HOLA) QTL test or the Internal Revenue Service Domestic
Building and Loan Association (IRS DBLA) test to determine its QTL compliance? (for the HOLA QTL test, enter RCONL133 NR 15.a.
1; for the IRS DBLA test, enter 2).............................................................................................................................
b. Has the institution been in compliance with the HOLA QTL test as of each month end during the quarter or the
RCONL135 NR 15.b.
IRS DBLA test for its most recent taxable year, as applicable?...............................................................................
Item 16.a and, if appropriate, items 16.b.(1) through 16.b.(3) are to be completed annually in the December report only.
16.
1
16. International remittance transfers offered to consumers:
a. Estimated number of international remittance transfers provided by your institution during the calendar year
RCONN523 12901000 16.a.
ending on the report date.........................................................................................................................................
Items 16.b.(1) through 16.b.(3) are to be completed by institutions that reported 501 or more international remittance transfers in
item 16.a in either or both of the current report or the most recent prior report in which item 16.a was required to be completed.
16.b.
b. Estimated dollar value of remittance transfers provided by your institution and usage of regulatory exceptions
during the calendar year ending on the report date:
1. Estimated dollar value of international remittance transfers......................................................................... RCONN524 223,894 16.b.1.

1. Report only highest level URLs (for example, report www.examplebank.biz, but do not also report www.examplebank.biz/checking). Report each top level domain name used (for example,
report both www.examplebank.biz and www.examplebank.net).
2. Report total assets before eliminating intercompany transactions between the consolidated insurance or reinsurance subsidiary and other offices or consolidated subsidiaries of the reporting
bank.
1. Report information about international electronic transfers of funds offered to consumers in the United States that: (a) are "remittance transfers" as defined by subpart B of Regulation E (12
CFR § 1005.30(e)), or (b) would qualify as "remittance transfers" under subpart B of Regulation E (12 CFR § 1005.30(e)) but are excluded from that definition only because the provider is not
providing those transfers in the normal course of its business. See 12 CFR § 1005.30(f). For purposes of this item 16, such trans
 CAPITAL ONE, NATIONAL ASSOCIATION FFIEC 031
RSSD-ID 112837 Report Date 12/31/2023
Last Updated on 1/30/2024 45

Dollar amounts in thousands

2. Estimated number of international remittance transfers for which your institution applied the permanent
RCONMM07 0 16.b.2.
exchange rate exception...................................................................................................................................
3. Estimated number of international remittance transfers for which your institution applied the permanent
RCONMQ52 0 16.b.3.
covered third-party fee exception......................................................................................................................
17. U.S. Small Business Administration Paycheck Protection Program (PPP) loans and the Federal Reserve PPP
3 17.
Liquidity Facility (PPPLF):
a. Number of PPP loans outstanding....................................................................................................................... RCONLG26 896 17.a.

b. Outstanding balance of PPP loans....................................................................................................................... RCONLG27 21,534 17.b.

c. Outstanding balance of PPP loans pledged to the PPPLF................................................................................... RCONLG28 0 17.c.

d. Outstanding balance of borrowings from Federal Reserve Banks under the PPPLF with a remaining maturity
17.d.
of:
1. One year or less............................................................................................................................................ RCONLL59 0 17.d.1.

2. More than one year....................................................................................................................................... RCONLL60 0 17.d.2.

e. Quarterly average amount of PPP loans pledged to the PPPLF and excluded from "Total assets for the leverage
RCONLL57 0 17.e.
ratio" reported in Schedule RC-R, Part I, item 30....................................................................................................

(TE01N528) https://intellix.capitalonebank.com

(TE01N529) Capital One Bank

(TE02N528) https://lbox.capitalonebank.com/

(TE03N528) https://ach3.capitalonebank.com

(TEXT4087) www.capitalone.com

3. Paycheck Protection Program (PPP) covered loans as defined in sections 7(a)(36) and 7(a)(37) of the Small Business Act (15 U.S.C. 636(a)(36) and (37)). The PPP was established by Section
1102 of the 2020 Coronavirus Aid, Relief, and Economic Security Act.
 CAPITAL ONE, NATIONAL ASSOCIATION FFIEC 031
RSSD-ID 112837 Report Date 12/31/2023
Last Updated on 1/30/2024 46

Schedule RC-N - Past Due and Nonaccrual Loans Leases and Other Assets(Form Type
- 031)
(Column A) Past due 30 (Column B) Past due 90 (Column C) Nonaccrual
through 89 days and still days or more and still
Dollar amounts in thousands accruing accruing

1. Loans secured by real estate: 1.

a. Construction, land development, and other land loans in domestic

1.a.
offices:
1. 1-4 family residential construction loans........................................ RCONF172 0 RCONF174 0 RCONF176 0 1.a.1.

2. Other construction loans and all land development and other land
RCONF173 0 RCONF175 0 RCONF177 38,774 1.a.2.
loans..................................................................................................
b. Secured by farmland in domestic offices............................................... RCON3493 0 RCON3494 0 RCON3495 290 1.b.

c. Secured by 1-4 family residential properties in domestic offices: 1.c.

1. Revolving, open-end loans secured by 1-4 family residential

RCON5398 172 RCON5399 0 RCON5400 258 1.c.1.
properties and extended under lines of credit....................................
2. Closed-end loans secured by 1-4 family residential properties: 1.c.2.

a. Secured by first liens............................................................... RCONC236 0 RCONC237 0 RCONC229 1,151 1.c.2.a.

b. Secured by junior liens............................................................ RCONC238 0 RCONC239 0 RCONC230 321 1.c.2.b.

d. Secured by multifamily (5 or more) residential properties in domestic

RCON3499 399 RCON3500 0 RCON3501 91,757 1.d.
offices........................................................................................................
e. Secured by nonfarm nonresidential properties in domestic offices: 1.e.

1. Loans secured by owner-occupied nonfarm nonresidential

RCONF178 1,529 RCONF180 0 RCONF182 17,784 1.e.1.
properties...........................................................................................
2. Loans secured by other nonfarm nonresidential properties........... RCONF179 0 RCONF181 75,625 RCONF183 467,679 1.e.2.

f. In foreign offices..................................................................................... RCFNB572 0 RCFNB573 0 RCFNB574 0 1.f.

2. Loans to depository institutions and acceptances of other banks: 2.

a. To U.S. banks and other U.S. depository institutions............................. RCFD5377 0 RCFD5378 0 RCFD5379 0 2.a.

b. To foreign banks..................................................................................... RCFD5380 0 RCFD5381 0 RCFD5382 0 2.b.

3. Loans to finance agricultural production and other loans to farmers............ RCFD1594 9 RCFD1597 0 RCFD1583 0 3.

4. Commercial and industrial loans: 4.

a. To U.S. addressees (domicile)............................................................... RCFD1251 135,941 RCFD1252 126,544 RCFD1253 225,383 4.a.

b. To non-U.S. addressees (domicile)........................................................ RCFD1254 0 RCFD1255 0 RCFD1256 0 4.b.

5. Loans to individuals for household, family, and other personal expenditures: 5.

a. Credit cards........................................................................................... RCFDB575 3,711,799 RCFDB576 3,865,823 RCFDB577 9,109 5.a.

b. Automobile loans................................................................................... RCFDK213 4,696,306 RCFDK214 0 RCFDK215 712,286 5.b.

c. Other (includes revolving credit plans other than credit cards and other
RCFDK216 59 RCFDK217 1 RCFDK218 160 5.c.
consumer loans)........................................................................................
6. Loans to foreign governments and official institutions.................................. RCFD5389 0 RCFD5390 0 RCFD5391 0 6.

7. All other loans............................................................................................... RCFD5459 6,903 RCFD5460 124 RCFD5461 272 7.

8. Lease financing receivables: 8.

a. Leases to individuals for household, family, and other personal

RCFDF166 0 RCFDF167 0 RCFDF168 0 8.a.
expenditures..............................................................................................
b. All other leases...................................................................................... RCFDF169 0 RCFDF170 0 RCFDF171 0 8.b.

9. Total loans and leases (sum of items 1 through 8.b).................................... RCFD1406 8,553,117 RCFD1407 4,068,117 RCFD1403 1,565,224 9.

10. Debt securities and other assets (exclude other real estate owned and
RCFD3505 0 RCFD3506 0 RCFD3507 0 10.
other repossessed assets)...............................................................................
11. Loans and leases reported in items 1 through 8 above that are wholly or
partially guaranteed by the U.S. Government, excluding loans and leases RCFDK036 851 RCFDK037 0 RCFDK038 28,029 11.
covered by loss-sharing agreements with the FDIC:........................................
a. Guaranteed portion of loans and leases included in item 11 above,
RCFDK039 571 RCFDK040 0 RCFDK041 20,932 11.a.
excluding rebooked "GNMA loans"...........................................................
b. Rebooked "GNMA loans" that have been repurchased or are eligible
RCFDK042 0 RCFDK043 0 RCFDK044 0 11.b.
for repurchase included in item 11 above..................................................
12. Portion of covered loans and leases reported in item 9 above that is
RCFDK102 0 RCFDK103 0 RCFDK104 0 12.
protected by loss-sharing agreements with the FDIC.......................................
1. Loans restructured in troubled debt restructurings included in Schedule
RC-N, items 1 through 7, above (and not reported in Schedule RC-C, Part 1, M.1.
Memorandum item 1):
a. Construction, land development, and other land loans in domestic
M.1.a.
offices:
 CAPITAL ONE, NATIONAL ASSOCIATION FFIEC 031
RSSD-ID 112837 Report Date 12/31/2023
Last Updated on 1/30/2024 47

(Column A) Past due 30 (Column B) Past due 90 (Column C) Nonaccrual

through 89 days and still days or more and still
Dollar amounts in thousands accruing accruing
1. 1-4 family residential construction loans........................................ RCONK105 0 RCONK106 0 RCONK107 0 M.1.a.1.

2. Other construction loans and all land development and other land
RCONK108 0 RCONK109 0 RCONK110 0 M.1.a.2.
loans..................................................................................................
b. Loans secured by 1-4 family residential properties in domestic offices.. RCONF661 0 RCONF662 0 RCONF663 93 M.1.b.

c. Secured by multifamily (5 or more) residential properties in domestic

RCONK111 0 RCONK112 0 RCONK113 21,717 M.1.c.
offices........................................................................................................
d. Secured by nonfarm nonresidential properties in domestic offices: M.1.d.

1. Loans secured by owner-occupied nonfarm nonresidential

RCONK114 0 RCONK115 0 RCONK116 0 M.1.d.1.
properties...........................................................................................
2. Loans secured by other nonfarm nonresidential properties........... RCONK117 0 RCONK118 0 RCONK119 131,932 M.1.d.2.

e. Commercial and industrial loans: M.1.e.

1. To U.S. addressees (domicile)........................................................ RCFDK120 7,303 RCFDK121 8,099 RCFDK122 111,407 M.1.e.1.

2. To non-U.S. addressees (domicile)................................................. RCFDK123 0 RCFDK124 0 RCFDK125 0 M.1.e.2.

f. All other loans (include loans to individuals for household, family, and
RCFDK126 320,170 RCFDK127 110,144 RCFDK128 35,226 M.1.f.
other personal expenditures).....................................................................
Itemize loan categories included in Memorandum item 1.f, above that exceed
10 percent of total loans restructured in troubled debt restructurings that are past
due 30 days or more or in nonaccrual status (sum of Memorandum items 1.a RCONK130 0 RCONK131 0 RCONK132 0 M.1.f.1.
through 1.f, columns A through C):
1. Loans secured by farmland in domestic offices.............................
2. Not applicable M.1.f.2.

3. Loans to finance agricultural production and other loans to

RCFDK138 0 RCFDK139 0 RCFDK140 0 M.1.f.3.
farmers...............................................................................................
4. Loans to individuals for household, family, and other personal
M.1.f.4.
expenditures:
a. Credit cards............................................................................. RCFDK274 137,669 RCFDK275 110,144 RCFDK276 4,251 M.1.f.4.a.

b. Automobile loans..................................................................... RCFDK277 182,501 RCFDK278 0 RCFDK279 30,970 M.1.f.4.b.

c. Other (includes revolving credit plans other than credit cards

RCFDK280 0 RCFDK281 0 RCFDK282 0 M.1.f.4.c.
and other consumer loans).........................................................
g. Total loans restructured in troubled debt restructurings included in
Schedule RC-N, items 1 through 7, above and not reported in Schedule
RC-C, Part I, Memorandum item 1 (sum of items Memorandum item 1.a.(1) RCFDHK26 327,473 RCFDHK27 118,243 RCFDHK28 300,375 M.1.g.
1
through Memorandum item 1.f) ...............................................................
2. Loans to finance commercial real estate, construction, and land development
activities (not secured by real estate) included in Schedule RC-N, items 4 and RCFD6558 0 RCFD6559 0 RCFD6560 0 M.2.
7, above............................................................................................................
3. Loans secured by real estate to non-U.S. addressees (domicile) (included
RCFD1248 0 RCFD1249 0 RCFD1250 0 M.3.
in Schedule RC-N, item 1, above)....................................................................
4. Not applicable M.4.

1. Exclude amounts reported in Memorandum items 1.f.(1) through 1.f.(4) when calculating the total in Memorandum item 1.g.
 CAPITAL ONE, NATIONAL ASSOCIATION FFIEC 031
RSSD-ID 112837 Report Date 12/31/2023
Last Updated on 1/30/2024 48

(Column A) Past due 30 (Column B) Past due 90 (Column C) Nonaccrual

through 89 days and still days or more and still
Dollar amounts in thousands accruing accruing
5. Loans and leases held for sale (included in Schedule RC-N, items 1 through
RCFDC240 8,062 RCFDC241 28,946 RCFDC226 36,621 M.5.
8, above)...........................................................................................................

(Column A) Past due 30 through (Column B) Past due 90 days or

Dollar amounts in thousands 89 days more

6. Derivative contracts: Fair value of amounts carried as assets............................................... RCFD3529 0 RCFD3530 0 M.6.

Dollar amounts in thousands

Memorandum items 7, 8, 9.a, and 9.b are to be completed semiannually in the June and December reports only.
RCFDC410 2,981,899 M.7.
7. Additions to nonaccrual assets during the previous six months..................................................................................
8. Nonaccrual assets sold during the previous six months.............................................................................................. RCFDC411 165,338 M.8.

(Column A) Past due 30 (Column B) Past due 90 (Column C) Nonaccrual

through 89 days and still days or more and still
Dollar amounts in thousands accruing accruing
9. Purchased credit-impaired loans accounted for in accordance with FASB
2 M.9.
ASC 310-30 (former AICPA Stament of Position 03-3):
a. Outstanding balance............................................................................. RCFDL183 NR RCFDL184 NR RCFDL185 NR M.9.a.

b. Amount included in Schedule RC-N, items 1 through 7, above............. RCFDL186 NR RCFDL187 NR RCFDL188 NR M.9.b.

2. Memorandum items 9.a and 9.b should be completed only by institutions that have not yet adopted ASU 2016-13.
 CAPITAL ONE, NATIONAL ASSOCIATION FFIEC 031
RSSD-ID 112837 Report Date 12/31/2023
Last Updated on 1/30/2024 49

Schedule RC-O - Other Data for Deposit Insurance and FICO Assessments(Form Type
- 031)
All FDIC-insured depository institutions must complete items 1 through 9, 10, and 11, Memorandum item 1, and, if applicable, item 9.a, Memorandum items 2, 3, and 6
through 18 each quarter. Unless otherwise indicated, complete items 1 through 11 and Memorandum items 1 through 3 on an "unconsolidated single FDIC certificate number
basis" (see instructions) and complete Memorandum items 6 through 18 on a fully consolidated basis.

Dollar amounts in thousands

1. Total deposit liabilities before exclusions (gross) as defined in Section 3(l) of the Federal Deposit Insurance Act and
RCFDF236 379,700,721 1.
FDIC regulations.............................................................................................................................................................
2. Total allowable exclusions, including interest accrued and unpaid on allowable exclusions (including foreign
RCFDF237 123,040 2.
deposits)..........................................................................................................................................................................
3. Total foreign deposits, including interest accrued and unpaid thereon (included in item 2 above).............................. RCFNF234 123,040 3.

4. Average consolidated total assets for the calendar quarter......................................................................................... RCFDK652 478,716,803 4.

a. Averaging method used (for daily averaging, enter 1; for weekly averaging, enter 2).......................................... RCFDK653 1 4.a.
1 RCFDK654 48,080,549 5.
5. Average tangible equity for the calendar quarter .......................................................................................................
6. Holdings of long-term unsecured debt issued by other FDIC-insured depository institutions..................................... RCFDK655 0 6.

7. Unsecured "Other borrowings" with a remaining maturity of (sum of items 7.a through 7.d must be less than or equal
7.
to Schedule RC-M, items 5.b.(1)(a)-(d) minus item 10.b):
a. One year or less................................................................................................................................................... RCFDG465 53,253 7.a.

b. Over one year through three years....................................................................................................................... RCFDG466 1,943,899 7.b.

c. Over three years through five years..................................................................................................................... RCFDG467 3,008,957 7.c.

d. Over five years..................................................................................................................................................... RCFDG468 1,503,656 7.d.

8. Subordinated notes and debentures with a remaining maturity of (sum of items 8.a through 8.d must equal Schedule
8.
RC, item 19):
a. One year or less................................................................................................................................................... RCFDG469 0 8.a.

b. Over one year through three years....................................................................................................................... RCFDG470 0 8.b.

c. Over three years through five years..................................................................................................................... RCFDG471 0 8.c.

d. Over five years..................................................................................................................................................... RCFDG472 0 8.d.

9. Brokered reciprocal deposits (included in Schedule RC-E, Part I, Memorandum item 1.b)........................................ RCONG803 0 9.

Item 9.a is to be completed on a fully consolidated basis by all institutions that own another insured depository institution.
RCONL190 NR 9.a.
a. Fully consolidated brokered reciprocal deposits..................................................................................................
10. Banker's bank certification: Does the reporting institution meet both the statutory definition of a banker's bank and
the business conduct test set forth in FDIC regulations? If the answer to item 10 is "YES," complete items 10.a and RCFDK656 No 10.
10.b..................................................................................................................................................................................
If the answer to item 10 is "YES," complete items 10.a and 10.b.
RCFDK657 NR 10.a.
a. Banker's bank deduction......................................................................................................................................
b. Banker's bank deduction limit............................................................................................................................... RCFDK658 NR 10.b.

11. Custodial bank certification: Does the reporting institution meet the definition of a custodial bank set forth in FDIC
RCFDK659 No 11.
regulations? If the answer to item 11 is "YES," complete items 11.a and 11.b...............................................................
If the answer to item 11 is "YES," complete items 11.a and 11.b.
RCFDK660 NR 11.a.
a. Custodial bank deduction.....................................................................................................................................
b. Custodial bank deduction limit.............................................................................................................................. RCFDK661 NR 11.b.

1. Total deposit liabilities of the bank (including related interest accrued and unpaid) less allowable exclusions (including
related interest accrued and unpaid) (sum of Memorandum items 1.a.(1), 1.b.(1), 1.c.(1), and 1.d.(1) must equal M.1.
Schedule RC-O, item 1 less item 2):
1 M.1.a.
a. Deposit accounts (excluding retirement accounts) of $250,000 or less:
1. Amount of deposit accounts (excluding retirement accounts) of $250,000 or less....................................... RCONF049 241,365,978 M.1.a.1.

2. Number of deposit accounts (excluding retirement accounts) of $250,000 or less....................................... RCONF050 33619739 M.1.a.2.
1 M.1.b.
b. Deposit accounts (excluding retirement accounts) of more than $250,000:
1. Amount of deposit accounts (excluding retirement accounts) of more than $250,000................................. RCONF051 138,211,703 M.1.b.1.

2. Number of deposit accounts (excluding retirement accounts) of more than $250,000................................. RCONF052 176353 M.1.b.2.
1 M.1.c.
c. Retirement deposit accounts of $250,000 or less:
1. Amount of retirement deposit accounts of $250,000 or less......................................................................... RCONF045 0 M.1.c.1.

2. Number of retirement deposit accounts of $250,000 or less........................................................................ RCONF046 0 M.1.c.2.

1 M.1.d.
d. Retirement deposit accounts of more than $250,000:

1. See instructions for averaging methods. For deposit insurance assessment purposes, tangible equity is defined as Tier 1 capital as set forth in the banking agencies' regulatory capital standards
and reported in Schedule RC-R, Part I, item 26, except as described in the instructions.
1. The dollar amounts used as the basis for reporting in Memorandum items 1.a through 1.d reflect the deposit insurance limits in effect on the report date.
 CAPITAL ONE, NATIONAL ASSOCIATION FFIEC 031
RSSD-ID 112837 Report Date 12/31/2023
Last Updated on 1/30/2024 50

Dollar amounts in thousands

1. Amount of retirement deposit accounts of more than $250,000................................................................... RCONF047 0 M.1.d.1.

2. Number of retirement deposit accounts of more than $250,000................................................................... RCONF048 0 M.1.d.2.

Memorandum item 2 is to be completed by banks with $1 billion or more in total assets.

2. Estimated amount of uninsured deposits in domestic offices of the bank and in insured branches in Puerto Rico and RCON5597 94,888,662 M.2.
3
U.S. territories and possessions, including related interest accrued and unpaid (see instructions) ..............................
3. Has the reporting institution been consolidated with a parent bank or savings association in that parent bank's or
parent savings association's Call Report? If so, report the legal title and FDIC Certificate Number of the parent bank M.3.
or parent savings association:
a. Legal title.............................................................................................................................................................. TEXTA545 NR M.3.a.

b. FDIC Certificate Number...................................................................................................................................... RCONA545 0 M.3.b.

4. Dually payable deposits in the reporting institution's foreign branches....................................................................... RCFNGW43 0 M.4.

Memorandum items 5 through 12 are to be completed by "large institutions" and "highly complex institutions" as defined in FDIC regulations.
5. Applicable portion of the CECL transitional amount or modified CECL transitional amount that has been added to RCFDMW53 1,113,574 M.5.
retained earnings for regulatory capital purposes as of the current report date and is attributable to loans and leases
held for investment..........................................................................................................................................................
6. Criticized and classified items: M.6.

a. Special mention.................................................................................................................................................... RCFDK663 CONF M.6.a.

b. Substandard......................................................................................................................................................... RCFDK664 CONF M.6.b.

c. Doubtful................................................................................................................................................................ RCFDK665 CONF M.6.c.

d. Loss...................................................................................................................................................................... RCFDK666 CONF M.6.d.

7. "Nontraditional 1-4 family residential mortgage loans" as defined for assessment purposes only in FDIC regulations: M.7.

a. Nontraditional 1-4 family residential mortgage loans........................................................................................... RCFDN025 CONF M.7.a.

b. Securitizations of nontraditional 1-4 family residential mortgage loans................................................................ RCFDN026 CONF M.7.b.

8. "Higher-risk consumer loans" as defined for assessment purposes only in FDIC regulations: M.8.

a. Higher-risk consumer loans................................................................................................................................. RCFDN027 CONF M.8.a.

b. Securitizations of higher-risk consumer loans...................................................................................................... RCFDN028 CONF M.8.b.

9. "Higher-risk commercial and industrial loans and securities" as defined for assessment purposes only in FDIC
M.9.
regulations:
a. Higher-risk commercial and industrial loans and securities................................................................................. RCFDN029 CONF M.9.a.

b. Securitizations of higher-risk commercial and industrial loans and securities..................................................... RCFDN030 CONF M.9.b.

10. Commitments to fund construction, land development, and other land loans secured by real estate for the
M.10.
consolidated bank:
a. Total unfunded commitments................................................................................................................................ RCFDK676 1,159,017 M.10.a.

b. Portion of unfunded commitments guaranteed or insured by the U.S. government (including the FDIC)............ RCFDK677 0 M.10.b.

11. Amount of other real estate owned recoverable from the U.S. government under guarantee or insurance provisions
RCFDK669 0 M.11.
(excluding FDIC loss-sharing agreements).....................................................................................................................
12. Nonbrokered time deposits of more than $250,000 in domestic offices (included in Schedule RC-E, Memorandum
RCONK678 15,730,436 M.12.
item 2.d)..........................................................................................................................................................................
Memorandum item 13.a is to be completed by "large institutions" and "highly complex institutions" as defined in FDIC regulations.
Memorandum items 13.b through 13.h are to be completed by "large institutions" only.
M.13.
13. Portion of funded loans and securities in domestic and foreign offices guaranteed or insured by the U.S. government
(including FDIC loss-sharing agreements):
a. Construction, land development, and other land loans secured by real estate.................................................... RCFDN177 25,582 M.13.a.

b. Loans secured by multifamily residential and nonfarm nonresidential properties................................................ RCFDN178 87,633 M.13.b.

c. Closed-end loans secured by first liens on 1-4 family residential properties........................................................ RCFDN179 38,321 M.13.c.

d. Closed-end loans secured by junior liens on 1-4 family residential properties and revolving, open-end loans
RCFDN180 8,883 M.13.d.
secured by 1-4 family residential properties and extended under lines of credit.....................................................
e. Commercial and industrial loans.......................................................................................................................... RCFDN181 56,706 M.13.e.

f. Credit card loans to individuals for household, family, and other personal expenditures...................................... RCFDN182 0 M.13.f.

g. All other loans to individuals for household, family, and other personal expenditures.......................................... RCFDN183 0 M.13.g.

h. Non-agency residential mortgage-backed securities........................................................................................... RCFDM963 0 M.13.h.

Memorandum items 14 and 15 are to be completed by "highly complex institutions" as defined in FDIC regulations.
RCFDK673 CONF M.14.
14. Amount of the institution's largest counterparty exposure.........................................................................................
15. Total amount of the institution's 20 largest counterparty exposures.......................................................................... RCFDK674 CONF M.15.

3. Uninsured deposits should be estimated based on the deposit insurance limits set forth in Memorandum items 1.a through 1.d.
 CAPITAL ONE, NATIONAL ASSOCIATION FFIEC 031
RSSD-ID 112837 Report Date 12/31/2023
Last Updated on 1/30/2024 51

Dollar amounts in thousands

Memorandum item 16 is to be completed by “large institutions” and “highly complex institutions” as defined in FDIC regulations.
16. Portion of loans restructured in troubled debt restructurings that are in compliance with their modified terms and RCFDL189 0 M.16.
are guaranteed or insured by the U.S. government (including the FDIC) (included in Schedule RC-C, part I, Memorandum
item 1).............................................................................................................................................................................
Memorandum item 17 is to be completed on a fully consolidated basis by those “large institutions” and “highly complex institutions” as
defined in FDIC regulations that own another insured depository institution. M.17.
17. Selected fully consolidated data for deposit insurance assessment purposes:
a. Total deposit liabilities before exclusions (gross) as defined in Section 3(l) of the Federal Deposit Insurance
RCFDL194 NR M.17.a.
Act and FDIC regulations.........................................................................................................................................
b. Total allowable exclusions, including interest accrued and unpaid on allowable exclusions (including foreign
RCFDL195 NR M.17.b.
deposits)...................................................................................................................................................................
c. Unsecured "Other borrowings" with a remaining maturity of one year or less..................................................... RCFDL196 NR M.17.c.

d. Estimated amount of uninsured deposits in domestic offices of the institution and in insured branches in Puerto
RCONL197 NR M.17.d.
Rico and U.S. territories and possessions, including related interest accrued and unpaid......................................
 CAPITAL ONE, NATIONAL ASSOCIATION FFIEC 031
RSSD-ID 112837 Report Date 12/31/2023
Last Updated on 1/30/2024 52

(Column (Column (Column (Column (Column (Column (Column (Column (Column I) (Column (Column (Column (Column (Column (Column
A) B) C) D) E) F) G) H) Two-Year J) K) L) M) N) O) PDs
Two-Year Two-Year Two-Year Two-Year Two-Year Two-Year Two-Year Two-Year Probability Two-Year Two-Year Two-Year Two-Year Two-Year Were
Probability Probability Probability Probability Probability Probability Probability Probability of Default Probability Probability Probability Probability Probability Derived
of Default of Default of Default of Default of Default of Default of Default of Default (PD) of Default of Default of Default of Default of Default Using
(PD) <= (PD) (PD) (PD) (PD) (PD) (PD) (PD) 20.01–22% (PD) (PD) (PD) > (PD) (PD) Total
Dollar amounts in thousands 1% 1.01–4% 4.01–7% 7.01–10% 10.01–14% 14.01–16% 16.01–18% 18.01–20% 22.01–26% 26.01–30% 30% Unscoreable
18. Outstanding balance of 1-4 family
residential mortgage loans, consumer loans,
M.18.
and consumer leases by two-year probability
of default:
a. "Nontraditional 1-4 family residential
mortgage loans" as defined for
M.18.a.
assessment purposes only in FDIC RCFDM964 RCFDM965 RCFDM966 RCFDM967 RCFDM968 RCFDM969 RCFDM970 RCFDM971 RCFDM972 RCFDM973 RCFDM974 RCFDM975 RCFDM976 RCFDM977 RCFDM978
regulations.............................................. CONF CONF CONF CONF CONF CONF CONF CONF CONF CONF CONF CONF CONF CONF CONF
b. Closed-end loans secured by first liens RCFDM979 RCFDM980 RCFDM981 RCFDM982 RCFDM983 RCFDM984 RCFDM985 RCFDM986 RCFDM987 RCFDM988 RCFDM989 RCFDM990 RCFDM991 RCFDM992 RCFDM993
M.18.b.
on 1-4 family residential properties........ CONF CONF CONF CONF CONF CONF CONF CONF CONF CONF CONF CONF CONF CONF CONF
c. Closed-end loans secured by junior
liens on 1-4 family residential RCFDM994 RCFDM995 RCFDM996 RCFDM997 RCFDM998 RCFDM999 RCFDN001 RCFDN002 RCFDN003 RCFDN004 RCFDN005 RCFDN006 RCFDN007 RCFDN008 RCFDN009 M.18.c.
properties............................................... CONF CONF CONF CONF CONF CONF CONF CONF CONF CONF CONF CONF CONF CONF CONF
d. Revolving, open-end loans secured by
1-4 family residential properties and RCFDN010 RCFDN011 RCFDN012 RCFDN013 RCFDN014 RCFDN015 RCFDN016 RCFDN017 RCFDN018 RCFDN019 RCFDN020 RCFDN021 RCFDN022 RCFDN023 RCFDN024 M.18.d.
extended under lines of credit................ CONF CONF CONF CONF CONF CONF CONF CONF CONF CONF CONF CONF CONF CONF CONF
RCFDN040 RCFDN041 RCFDN042 RCFDN043 RCFDN044 RCFDN045 RCFDN046 RCFDN047 RCFDN048 RCFDN049 RCFDN050 RCFDN051 RCFDN052 RCFDN053 RCFDN054
M.18.e.
e. Credit cards........................................ CONF CONF CONF CONF CONF CONF CONF CONF CONF CONF CONF CONF CONF CONF CONF
RCFDN055 RCFDN056 RCFDN057 RCFDN058 RCFDN059 RCFDN060 RCFDN061 RCFDN062 RCFDN063 RCFDN064 RCFDN065 RCFDN066 RCFDN067 RCFDN068 RCFDN069
M.18.f.
f. Automobile loans................................. CONF CONF CONF CONF CONF CONF CONF CONF CONF CONF CONF CONF CONF CONF CONF
RCFDN070 RCFDN071 RCFDN072 RCFDN073 RCFDN074 RCFDN075 RCFDN076 RCFDN077 RCFDN078 RCFDN079 RCFDN080 RCFDN081 RCFDN082 RCFDN083 RCFDN084
M.18.g.
g. Student loans...................................... CONF CONF CONF CONF CONF CONF CONF CONF CONF CONF CONF CONF CONF CONF CONF
h. Other consumer loans and revolving RCFDN085 RCFDN086 RCFDN087 RCFDN088 RCFDN089 RCFDN090 RCFDN091 RCFDN092 RCFDN093 RCFDN094 RCFDN095 RCFDN096 RCFDN097 RCFDN098 RCFDN099
M.18.h.
credit plans other than credit cards........ CONF CONF CONF CONF CONF CONF CONF CONF CONF CONF CONF CONF CONF CONF CONF
RCFDN100 RCFDN101 RCFDN102 RCFDN103 RCFDN104 RCFDN105 RCFDN106 RCFDN107 RCFDN108 RCFDN109 RCFDN110 RCFDN111 RCFDN112 RCFDN113 RCFDN114
M.18.i.
i. Consumer leases................................. CONF CONF CONF CONF CONF CONF CONF CONF CONF CONF CONF CONF CONF CONF CONF
RCFDN115 RCFDN116 RCFDN117 RCFDN118 RCFDN119 RCFDN120 RCFDN121 RCFDN122 RCFDN123 RCFDN124 RCFDN125 RCFDN126 RCFDN127 RCFDN128
M.18.j.
j. Total..................................................... CONF CONF CONF CONF CONF CONF CONF CONF CONF CONF CONF CONF CONF CONF
 CAPITAL ONE, NATIONAL ASSOCIATION FFIEC 031
RSSD-ID 112837 Report Date 12/31/2023
Last Updated on 1/30/2024 53

Schedule RC-P - 1-4 Family Residential Mortgage Banking Activities in Domestic

Offices(Form Type - 031)
Schedule RC-P is to be completed by banks at which either 1-4 family residential mortgage loan originations and purchases for resale from all sources, loan sales, or
quarter-end loans held for sale or trading in domestic offices exceed $10 million for two consecutive quarters.

Dollar amounts in thousands

1
1. Retail originations during the quarter of 1-4 family residential mortgage loans for sale ............................................ RCONHT81 0 1.

2 RCONHT82 0 2.
2. Wholesale originations and purchases during the quarter of 1-4 family residential mortgage loans for sale ............
3. 1-4 family residential mortgage loans sold during the quarter..................................................................................... RCONFT04 0 3.

4. 1-4 family residential mortgage loans held for sale or trading at quarter-end (included in Schedule RC, items 4.a
RCONFT05 0 4.
and 5)..............................................................................................................................................................................
5. Noninterest income for the quarter from the sale, securitization, and servicing of 1-4 family residential mortgage
RIADHT85 0 5.
loans (included in Schedule RI, items 5.c, 5.f, 5.g, and 5.i).............................................................................................
6. Repurchases and indemnifications of 1-4 family residential mortgage loans during the quarter................................ RCONHT86 0 6.

7. Representation and warranty reserves for 1-4 family residential mortgage loans sold: 7.

a. For representations and warranties made to U.S. government agencies and government-sponsored agencies.. RCONL191 CONF 7.a.

b. For representations and warranties made to other parties................................................................................... RCONL192 CONF 7.b.

c. Total representation and warranty reserves (sum of items 7.a and 7.b)............................................................... RCONM288 0 7.c.

Schedule RC-Q - Assets and Liabilities Measured at Fair Value on a Recurring

Basis(Form Type - 031)
Schedule RC-Q is to be completed by banks that:

(1) Have elected to report financial instruments or servicing assets and liabilities at fair value under a fair value option with changes in fair value recognized in earnings, or
(2) Are required to complete Schedule RC-D, Trading Assets and Liabilities.

(Column A) Total (Column B) (Column C) (Column D) (Column E)

Fair Value LESS: Amounts Level 1 Fair Level 2 Fair Level 3 Fair
Reported on Netted in the Value Value Value
Schedule RC Determination of Measurements Measurements Measurements
Dollar amounts in thousands Total Fair Value
1. Available-for-sale debt securities and equity securities with readily RCFDJA36 RCFDG474 RCFDG475 RCFDG476 RCFDG477
1 1.
determinable fair values not held for trading ........................................ 79,315,056 0 5,976,262 73,141,961 196,833
2. Federal funds sold and securities purchased under agreements to RCFDG478 RCFDG479 RCFDG480 RCFDG481 RCFDG482
2.
resell...................................................................................................... 0 0 0 0 0
RCFDG483 RCFDG484 RCFDG485 RCFDG486 RCFDG487
3.
3. Loans and leases held for sale.......................................................... 0 0 0 0 0
RCFDG488 RCFDG489 RCFDG490 RCFDG491 RCFDG492
4.
4. Loans and leases held for investment............................................... 0 0 0 0 0

5. Trading assets: 5.
RCFD3543 RCFDG493 RCFDG494 RCFDG495 RCFDG496
5.a.
a. Derivative assets........................................................................ 1,487,407 907,122 787,858 787,418 819,253
RCFDG497 RCFDG498 RCFDG499 RCFDG500 RCFDG501
5.b.
b. Other trading assets................................................................... 34,846 0 0 0 34,846
1. Nontrading securities at fair value with changes in fair value
reported in current earnings (included in Schedule RC-Q, item RCFDF240 RCFDF684 RCFDF692 RCFDF241 RCFDF242 5.b.1.
5.b, above).............................................................................. 0 0 0 0 0
RCFDG391 RCFDG392 RCFDG395 RCFDG396 RCFDG804
6.
6. All other assets.................................................................................. 169,867 98,088 0 248,124 19,831
7.Total assets measured at fair value on a recurring basis (sum of items RCFDG502 RCFDG503 RCFDG504 RCFDG505 RCFDG506
7.
1 through 5.b plus item 6)...................................................................... 81,007,176 1,005,210 6,764,120 74,177,503 1,070,763
RCFDF252 RCFDF686 RCFDF694 RCFDF253 RCFDF254
8.
8. Deposits............................................................................................. 0 0 0 0 0
9. Federal funds purchased and securities sold under agreements to RCFDG507 RCFDG508 RCFDG509 RCFDG510 RCFDG511
9.
repurchase............................................................................................ 0 0 0 0 0

10. Trading liabilities: 10.

RCFD3547 RCFDG512 RCFDG513 RCFDG514 RCFDG515
10.a.
a. Derivative liabilities..................................................................... 2,141,018 432,915 448,493 1,278,144 847,296
RCFDG516 RCFDG517 RCFDG518 RCFDG519 RCFDG520
10.b.
b. Other trading liabilities................................................................ 0 0 0 0 0

1. Exclude originations and purchases of 1–4 family residential mortgage loans that are held for investment.
1. The amount reported in item 1, column A, must equal the sum of Schedule RC, items 2.b and 2.c.
 CAPITAL ONE, NATIONAL ASSOCIATION FFIEC 031
RSSD-ID 112837 Report Date 12/31/2023
Last Updated on 1/30/2024 54

(Column A) Total (Column B) (Column C) (Column D) (Column E)

Fair Value LESS: Amounts Level 1 Fair Level 2 Fair Level 3 Fair
Reported on Netted in the Value Value Value
Schedule RC Determination of Measurements Measurements Measurements
Dollar amounts in thousands Total Fair Value
RCFDG521 RCFDG522 RCFDG523 RCFDG524 RCFDG525
11.
11. Other borrowed money.................................................................... 0 0 0 0 0
RCFDG526 RCFDG527 RCFDG528 RCFDG529 RCFDG530
12.
12. Subordinated notes and debentures............................................... 0 0 0 0 0
RCFDG805 RCFDG806 RCFDG807 RCFDG808 RCFDG809
13.
13. All other liabilities............................................................................. 159,669 61,020 0 190,333 30,356
14. Total liabilities measured at fair value on a recurring basis (sum of RCFDG531 RCFDG532 RCFDG533 RCFDG534 RCFDG535
14.
items 8 through 13)............................................................................... 2,300,687 493,935 448,493 1,468,477 877,652
1. All other assets (itemize and describe amounts included in Schedule
RC-Q, item 6, that are greater than $100,000 and exceed 25% of item M.1.
6):
RCFDG536 RCFDG537 RCFDG538 RCFDG539 RCFDG540
M.1.a.
a. Mortgage servicing assets......................................................... 0 0 0 0 0
 CAPITAL ONE, NATIONAL ASSOCIATION FFIEC 031
RSSD-ID 112837 Report Date 12/31/2023
Last Updated on 1/30/2024 55

(Column A) Total (Column B) (Column C) (Column D) (Column E)

Fair Value LESS: Amounts Level 1 Fair Level 2 Fair Level 3 Fair
Reported on Netted in the Value Value Value
Schedule RC Determination of Measurements Measurements Measurements
Dollar amounts in thousands Total Fair Value
RCFDG541 RCFDG542 RCFDG543 RCFDG544 RCFDG545
M.1.b.
b. Nontrading derivative assets...................................................... 169,867 98,088 0 248,124 19,831

Dollar amounts in thousands

c. Disclose component and the dollar amount of that component: M.1.c.

1. Describe component.................................................................................................................................................... TEXTG546 NR M.1.c.1.

(Column A) Total (Column B) (Column C) (Column D) (Column E)

Fair Value LESS: Amounts Level 1 Fair Level 2 Fair Level 3 Fair
Reported on Netted in the Value Value Value
Schedule RC Determination of Measurements Measurements Measurements
Dollar amounts in thousands Total Fair Value
RCFDG546 RCFDG547 RCFDG548 RCFDG549 RCFDG550
M.1.c.2.
2. Amount of component....................................................................... 0 0 0 0 0

Dollar amounts in thousands

d. Disclose component and the dollar amount of that component: M.1.d.

1. Describe component.................................................................................................................................................... TEXTG551 NR M.1.d.1.

(Column A) Total (Column B) (Column C) (Column D) (Column E)

Fair Value LESS: Amounts Level 1 Fair Level 2 Fair Level 3 Fair
Reported on Netted in the Value Value Value
Schedule RC Determination of Measurements Measurements Measurements
Dollar amounts in thousands Total Fair Value
RCFDG551 RCFDG552 RCFDG553 RCFDG554 RCFDG555
M.1.d.2.
2. Amount of component....................................................................... 0 0 0 0 0

Dollar amounts in thousands

e. Disclose component and the dollar amount of that component: M.1.e.

1. Describe component.................................................................................................................................................... TEXTG556 NR M.1.e.1.

(Column A) Total (Column B) (Column C) (Column D) (Column E)

Fair Value LESS: Amounts Level 1 Fair Level 2 Fair Level 3 Fair
Reported on Netted in the Value Value Value
Schedule RC Determination of Measurements Measurements Measurements
Dollar amounts in thousands Total Fair Value
RCFDG556 RCFDG557 RCFDG558 RCFDG559 RCFDG560
M.1.e.2.
2. Amount of component....................................................................... 0 0 0 0 0

Dollar amounts in thousands

f. Disclose component and the dollar amount of that component: M.1.f.

1. Describe component.................................................................................................................................................... TEXTG561 NR M.1.f.1.

 CAPITAL ONE, NATIONAL ASSOCIATION FFIEC 031
RSSD-ID 112837 Report Date 12/31/2023
Last Updated on 1/30/2024 56

(Column A) Total (Column B) (Column C) (Column D) (Column E)

Fair Value LESS: Amounts Level 1 Fair Level 2 Fair Level 3 Fair
Reported on Netted in the Value Value Value
Schedule RC Determination of Measurements Measurements Measurements
Dollar amounts in thousands Total Fair Value
RCFDG561 RCFDG562 RCFDG563 RCFDG564 RCFDG565
M.1.f.2.
2. Amount of component....................................................................... 0 0 0 0 0
2. All other liabilities (itemize and describe amounts included in Schedule
RC-Q, item 13, that are greater than $100,000 and exceed 25% of item M.2.
13):
RCFDF261 RCFDF689 RCFDF697 RCFDF262 RCFDF263
M.2.a.
a. Loan commitments (not accounted for as derivatives)............... 0 0 0 0 0
RCFDG566 RCFDG567 RCFDG568 RCFDG569 RCFDG570
M.2.b.
b. Nontrading derivative liabilities................................................... 159,669 61,020 0 190,333 30,356

Dollar amounts in thousands

c. Disclose component and the dollar amount of that component: M.2.c.

1. Describe component.................................................................................................................................................... TEXTG571 NR M.2.c.1.

(Column A) Total (Column B) (Column C) (Column D) (Column E)

Fair Value LESS: Amounts Level 1 Fair Level 2 Fair Level 3 Fair
Reported on Netted in the Value Value Value
Schedule RC Determination of Measurements Measurements Measurements
Dollar amounts in thousands Total Fair Value
RCFDG571 RCFDG572 RCFDG573 RCFDG574 RCFDG575
M.2.c.2.
2. Amount of component....................................................................... 0 0 0 0 0

Dollar amounts in thousands

d. Disclose component and the dollar amount of that component: M.2.d.

1. Describe component.................................................................................................................................................... TEXTG576 NR M.2.d.1.

(Column A) Total (Column B) (Column C) (Column D) (Column E)

Fair Value LESS: Amounts Level 1 Fair Level 2 Fair Level 3 Fair
Reported on Netted in the Value Value Value
Schedule RC Determination of Measurements Measurements Measurements
Dollar amounts in thousands Total Fair Value
RCFDG576 RCFDG577 RCFDG578 RCFDG579 RCFDG580
M.2.d.2.
2. Amount of component....................................................................... 0 0 0 0 0

Dollar amounts in thousands

e. Disclose component and the dollar amount of that component: M.2.e.

1. Describe component.................................................................................................................................................... TEXTG581 NR M.2.e.1.

(Column A) Total (Column B) (Column C) (Column D) (Column E)

Fair Value LESS: Amounts Level 1 Fair Level 2 Fair Level 3 Fair
Reported on Netted in the Value Value Value
Schedule RC Determination of Measurements Measurements Measurements
Dollar amounts in thousands Total Fair Value
RCFDG581 RCFDG582 RCFDG583 RCFDG584 RCFDG585
M.2.e.2.
2. Amount of component....................................................................... 0 0 0 0 0

Dollar amounts in thousands

f. Disclose component and the dollar amount of that component: M.2.f.

1. Describe component
M.2.f.1.
(TEXTG586) NR
 CAPITAL ONE, NATIONAL ASSOCIATION FFIEC 031
RSSD-ID 112837 Report Date 12/31/2023
Last Updated on 1/30/2024 57

(Column A) Total (Column B) (Column C) (Column D) (Column E)

Fair Value LESS: Amounts Level 1 Fair Level 2 Fair Level 3 Fair
Reported on Netted in the Value Value Value
Schedule RC Determination of Measurements Measurements Measurements
Dollar amounts in thousands Total Fair Value
RCFDG586 RCFDG587 RCFDG588 RCFDG589 RCFDG590
M.2.f.2.
2. Amount of component....................................................................... 0 0 0 0 0

Dollar amounts in thousands Consolidated Bank

3. Loans measured at fair value (included in Schedule RC-C, Part I, items 1 through 9): M.3.

a. Loans secured by real estate: M.3.a.

1. Secured by 1-4 family residential properties................................................................................................. RCFDHT87 0 M.3.a.1.

2. All other loans secured by real estate........................................................................................................... RCFDHT88 0 M.3.a.2.

b. Commercial and industrial loans.......................................................................................................................... RCFDF585 0 M.3.b.

c. Loans to individuals for household, family, and other personal expenditures (i.e., consumer loans) (includes
RCFDHT89 0 M.3.c.
purchased paper).....................................................................................................................................................
d. Other loans........................................................................................................................................................... RCFDF589 0 M.3.d.

4. Unpaid principal balance of loans measured at fair value (reported in Schedule RC-Q, Memorandum item 3): M.4.

a. Loans secured by real estate: M.4.a.

1. Secured by 1-4 family residential properties................................................................................................. RCFDHT91 0 M.4.a.1.

2. All other loans secured by real estate........................................................................................................... RCFDHT92 0 M.4.a.2.

b. Commercial and industrial loans.......................................................................................................................... RCFDF597 0 M.4.b.

c. Loans to individuals for household, family, and other personal expenditures (i.e., consumer loans) (includes
RCFDHT93 0 M.4.c.
purchased paper).....................................................................................................................................................
d. Other loans........................................................................................................................................................... RCFDF601 0 M.4.d.
 CAPITAL ONE, NATIONAL ASSOCIATION FFIEC 031
RSSD-ID 112837 Report Date 12/31/2023
Last Updated on 1/30/2024 58

Schedule RC-R Part I - Regulatory Capital Components and Ratios(Form Type - 031)
Part I is to be completed on a consolidated basis.

Dollar amounts in thousands

1. Common stock plus related surplus, net of treasury stock and unearned employee stock ownership plan (ESOP)
RCFAP742 43,701,585 1.
shares..............................................................................................................................................................................
1 RCFAKW00 19,095,149 2.
2. Retained earnings ......................................................................................................................................................
To be completed only by institutions that have adopted ASU 2016-13:
a. Does your institution have a CECL transition election in effect as of the quarter-end report date? (enter "0" for RCOAJJ29 2 2.a.
No; enter "1" for Yes with a 3-year CECL transition election; enter "2" for Yes with a 5-year 2020 CECL transition
election.)...................................................................................................................................................................
3. Accumulated other comprehensive income (AOCI)..................................................................................................... RCFAB530 -8,410,918 3.

a. AOCI opt-out election (enter "1" for Yes; enter "0" for No.) (Advanced approaches institutions must enter "0"
RCOAP838 1 3.a.
for No.).....................................................................................................................................................................
4. Common equity tier 1 minority interest includable in common equity tier 1 capital..................................................... RCFAP839 0 4.

5. Common equity tier 1 capital before adjustments and deductions (sum of items 1 through 4)................................... RCFAP840 54,385,816 5.

6. LESS: Goodwill net of associated deferred tax liabilities (DTLs)................................................................................. RCFAP841 14,478,146 6.

7. LESS: Intangible assets (other than goodwill and mortgage servicing assets (MSAs)), net of associated DTLs....... RCFAP842 297,172 7.

8. LESS: Deferred tax assets (DTAs) that arise from net operating loss and tax credit carryforwards, net of any related
RCFAP843 2,117 8.
valuation allowances and net of DTLs.............................................................................................................................
9. AOCI-related adjustments (items 9.a through 9.e are effective January 1, 2015) (if entered "1" for Yes in item 3.a,
9.
complete only items 9.a through 9.e; if entered "0" for No in item 3.a, complete only item 9.f):
a. LESS: Net unrealized gains (losses) on available-for-sale debt securities (if a gain, report as a positive value;
RCFAP844 -6,800,749 9.a.
if a loss, report as a negative value)........................................................................................................................
b. Not applicable. 9.b.

c. LESS: Accumulated net gains (losses) on cash flow hedges (if a gain, report as a positive value; if a loss, report
RCFAP846 -1,489,828 9.c.
as a negative value).................................................................................................................................................
d. LESS: Amounts recorded in AOCI attributed to defined benefit postretirement plans resulting from the initial
and subsequent application of the relevant GAAP standards that pertain to such plans (if a gain, report as a RCFAP847 -35,905 9.d.
positive value; if a loss, report as a negative value).................................................................................................
e. LESS: Net unrealized gains (losses) on held-to-maturity securities that are included in AOCI (if a gain, report
RCFAP848 0 9.e.
as a positive value; if a loss, report as a negative value).........................................................................................
f. LESS: Accumulated net gain (loss) on cash flow hedges included in AOCI, net of applicable income taxes, that
relate to the hedging of items that are not recognized at fair value on the balance sheet (if a gain, report as a
RCFAP849 NR 9.f.
positive value; if a loss, report as a negative value) (To be completed only by institutions that entered "0" for No
in item 3.a)...............................................................................................................................................................
10. Other deductions from (additions to) common equity tier 1 capital before threshold-based deductions: 10.

a. LESS: Unrealized net gain (loss) related to changes in the fair value of liabilities that are due to changes in own
RCFAQ258 1,788 10.a.
credit risk (if a gain, report as a positive value; if a loss, report as a negative value)..............................................
b. LESS: All other deductions from (additions to) common equity tier 1 capital before threshold-based deductions. RCFAP850 0 10.b.
 CAPITAL ONE, NATIONAL ASSOCIATION FFIEC 031
RSSD-ID 112837 Report Date 12/31/2023
Last Updated on 1/30/2024 59

(Column A) Non-advanced (Column B) Advanced

Dollar amounts in thousands Approaches Institutions Approaches Institutions
11. LESS: Non-significant investments in the capital of unconsolidated financial institutions in
the form of common stock that exceed the 10 percent threshold for non-significant RCFWP851 NR 11.
investments................................................................................................................................
12. Subtotal (for column A, item 5 minus items 6 through 10.b; for column B, item 5 minus
RCFAP852 47,933,075 RCFWP852 NR 12.
items 6 through 11)....................................................................................................................
13. Not available 13.

a. LESS: Investments in the capital of unconsolidated financial institutions, net of associated

RCFALB58 0 13.a.
DTLs, that exceed 25 percent of item 12...........................................................................
b. LESS: Significant investments in the capital of unconsolidated financial institutions in
the form of common stock, net of associated DTLs, that exceed the 10 percent common RCFWP853 NR 13.b.
equity tier 1 capital deduction threshold.............................................................................
14. Not available 14.

a. LESS: MSAs, net of associated DTLs, that exceed 25 percent of item 12..................... RCFALB59 0 14.a.

b. LESS: MSAs, net of associated DTLs, that exceed the 10 percent common equity tier
RCFWP854 NR 14.b.
1 capital deduction threshold.............................................................................................
15. Not available 15.

a. LESS: DTAs arising from temporary differences that could not be realized through net
operating loss carrybacks, net of related valuation allowances and net of DTLs, that exceed RCFALB60 0 15.a.
25 percent of item 12.........................................................................................................
b. LESS: DTAs arising from temporary differences that could not be realized through net
operating loss carrybacks, net of related valuation allowances and net of DTLs, that exceed RCFWP855 NR 15.b.
the 10 percent common equity tier 1 capital deduction threshold......................................
16. LESS: Amount of significant investments in the capital of unconsolidated financial institutions
in the form of common stock, net of associated DTLs; MSAs, net of associated DTLs; and
DTAs arising from temporary differences that could not be realized through net operating loss RCFWP856 NR 16.
carrybacks, net of related valuation allowances and net of DTLs; that exceeds the 15 percent
common equity tier 1 capital deduction threshold.....................................................................
17. LESS: Deductions applied to common equity tier 1 capital due to insufficient amounts of
RCFAP857 0 RCFWP857 NR 17.
additional tier 1 capital and tier 2 capital to cover deductions...................................................
3 RCFAP858 0 RCFWP858 NR 18.
18. Total adjustments and deductions for common equity tier 1 capital ...................................
19. Common equity tier 1 capital (item 12 minus item 18)......................................................... RCFAP859 47,933,075 RCFWP859 NR 19.

Dollar amounts in thousands

20. Additional tier 1 capital instruments plus related surplus.......................................................................................... RCFAP860 0 20.

21. Non-qualifying capital instruments subject to phase out from additional tier 1 capital ............................................. RCFAP861 0 21.

22. Tier 1 minority interest not included in common equity tier 1 capital......................................................................... RCFAP862 0 22.

23. Additional tier 1 capital before deductions (sum of items 20, 21, and 22)................................................................. RCFAP863 0 23.

24. LESS: Additional tier 1 capital deductions................................................................................................................. RCFAP864 0 24.

25. Additional tier 1 capital (greater of item 23 minus item 24, or zero).......................................................................... RCFAP865 0 25.
1 RCFA8274 47,933,075 26.
26. Tier 1 capital .............................................................................................................................................................
2 RCFAKW03 479,915,400 27.
27. Average total consolidated assets ...........................................................................................................................
28. LESS: Deductions from common equity tier 1 capital and additional tier 1 capital (sum of items 6, 7, 8, 10.b, 13
3 RCFAP875 14,777,435 28.
through 15, 17, and certain elements of item 24 - see instructions) ..............................................................................
29. LESS: Other deductions from (additions to) assets for leverage ratio purposes....................................................... RCFAB596 -41,974 29.

30. Total assets for the leverage ratio (item 27 minus items 28 and 29).......................................................................... RCFAA224 465,179,939 30.

31. Leverage ratio (item 26 divided by 30)....................................................................................................................... RCFA7204 10.3042% 31.

a. Does your institution have a community bank leverage ratio (CBLR) framework election in effect as of the
RCOALE74 0 31.a.
quarter-end report date? (enter "1" for Yes; enter "0" for No)...................................................................................
Item 31.b is to be completed only by non-advanced approaches institutions that elect to use the Standardized Approach for Counterparty
Credit Risk (SA-CCR) for purposes of the standardized approach and supplementary leverage ratio. RCOANC99 NR 31.b.
4
b. Standardized Approach for Counterparty Credit Risk opt-in election (enter "1" for Yes; leave blank for No.) ......

1. Institutions that have adopted ASU 2016-13 and have elected to apply the 3-year or the 5-year 2020 CECL transition provision should include the applicable portion of the CECL transitional
amount or the modified CECL transitional amount, respectively, in this item.
 CAPITAL ONE, NATIONAL ASSOCIATION FFIEC 031
RSSD-ID 112837 Report Date 12/31/2023
Last Updated on 1/30/2024 60

Dollar amounts in thousands (Column A) Amount (Column B) Percentage

32. Total assets (Schedule RC, item 12); (must be less than $10 billion).................................. RCFA2170 NR 32.

33. Trading assets and trading liabilities (Schedule RC, sum of items 5 and 15). Report as a
RCFAKX77 NR RCFAKX78 NR 33.
dollar amount in Column A and as a percentage of total assets (5% limit) in Column B...........
34. Off-balance sheet exposures: 34.

a. Unused portion of conditionally cancellable commitments............................................. RCFAKX79 NR 34.a.

b. Securities lent and borrowed (Schedule RC-L, sum of items 6.a and 6.b)..................... RCFAKX80 NR 34.b.

c. Other off-balance sheet exposures................................................................................. RCFAKX81 NR 34.c.

d. Total off-balance sheet exposures (sum of items 34.a through 34.c). Report as a dollar
RCFAKX82 NR RCFAKX83 NR 34.d.
amount in Column A and as a percentage of total assets (25% limit) in Column B...........

Dollar amounts in thousands

35. Unconditionally cancellable commitments................................................................................................................. RCFAS540 NR 35.

36. Investments in the tier 2 capital of unconsolidated financial institutions.................................................................... RCFALB61 NR 36.

37. Allocated transfer risk reserve................................................................................................................................... RCFA3128 NR 37.

1 38.
38. Amount of allowances for credit losses on purchased credit-deteriorated assets:
a. Loans and leases held for investment.................................................................................................................. RCFAJJ30 NR 38.a.

b. Held-to-maturity debt securities............................................................................................................................ RCFAJJ31 NR 38.b.

c. Other financial assets measured at amortized cost............................................................................................. RCFAJJ32 NR 38.c.

39. Tier 2 capital instruments plus related surplus.......................................................................................................... RCFAP866 0 39.

40. Non-qualifying capital instruments subject to phase-out from tier 2 capital............................................................... RCFAP867 0 40.

41. Total capital minority interest that is not included in tier 1 capital.............................................................................. RCFAP868 0 41.

42. Allowance for loan and lease losses and eligible credit reserves includable in tier 2 capital 42.
3 RCFA5310 4,702,963 42.a.
a. Allowance for loan and lease losses includable in tier 2 capital .........................................................................
b. (Advanced approaches institutions that exit parallel run only): Eligible credit reserves includable in tier 2 capital. RCFW5310 NR 42.b.

43. Not applicable. 43.

44. Tier 2 capital before deductions 44.

a. Tier 2 capital before deductions (sum of items 39 through 42)............................................................................ RCFAP870 4,702,963 44.a.

b. (Advanced approaches institutions that exit parallel run only): Tier 2 capital before deductions (sum of items
RCFWP870 NR 44.b.
39 through 41, plus item 42.b).................................................................................................................................
45. LESS: Tier 2 capital deductions................................................................................................................................. RCFAP872 0 45.

46. Tier 2 capital 46.

a. Tier 2 capital (greater of item 44.a minus item 45, or zero).................................................................................. RCFA5311 4,702,963 46.a.

b. (Advanced approaches institutions that exit parallel run only): Tier 2 capital (greater of item 44.b minus item
RCFW5311 NR 46.b.
45, or zero)...............................................................................................................................................................
47. Total capital 47.

a. Total capital (sum of items 26 and 46.a)............................................................................................................... RCFA3792 52,636,038 47.a.

b. (Advanced approaches institutions that exit parallel run only): Total capital (sum of items 26 and 46.b)............. RCFW3792 NR 47.b.

48. Total risk-weighted assets 48.

a. Total risk-weighted assets (from Schedule RC-R, Part II, item 31)...................................................................... RCFAA223 367,241,863 48.a.

b. (Advanced approaches institutions that exit parallel run only): Total risk-weighted assets using advanced
RCFWA223 NR 48.b.
approaches rule (from FFIEC 101 Schedule A, item 60).........................................................................................

3. Beginning with the June 30, 2020, report date, all non-advanced approaches institutions should report in item 18, column A, the sum of items 13.a, 14.a, 15.a, and 17, column A; all advanced
approaches institutions should report in item 18, column B, the sum of items 13.b, 14.b, 15.b, 16, and 17, column B.
1. Beginning with the June 30, 2020, report date, all non-advanced approaches institutions should report the sum of item 19, column A, and item 25 in item 26; all advanced approaches institutions
should report the sum of item 19, column B, and item 25 in item 26.
2. Institutions that have adopted ASU 2016-13 and have elected to apply the 3-year or the 5-year 2020 CECL transition provision should include the applicable portion of the CECL transitional
amount or the modified CECL transitional amount, respectively, in item 27.
3. Beginning with the June 30, 2020, report date, all non-advanced approaches institutions should report in item 28 the sum of items 6, 7, 8, 10.b, 13.a, 14.a, 15.a, 17 (column A), and certain
elements of item 24 - see instructions; all advanced approaches institutions should report in item 28, the sum of items 6, 7, 8, 10.b, 11, 13.b, 14.b, 15.b, 16, 17 (column B), and certain elements
of item 24 - see instructions.
4. For the December 31, 2021, report date only, advanced approaches institutions that adopt SA-CCR prior to the mandatory compliance date should enter "1" in item 31.b.
 CAPITAL ONE, NATIONAL ASSOCIATION FFIEC 031
RSSD-ID 112837 Report Date 12/31/2023
Last Updated on 1/30/2024 61

Dollar amounts in thousands (Column A) Percentage (Column B) Percentage

49. Common equity tier 1 capital ratio (Column A: item 19, column A or B, as applicable, divided
by item 48.a) (Advanced approaches institutions that exit parallel run only: Column B: item 19, RCFAP793 13.0522% RCFWP793 NR 49.
column B, divided by item 48.b).................................................................................................
50. Tier 1 capital ratio (Column A: item 26 divided by item 48.a) (Advanced approaches
RCFA7206 13.0522% RCFW7206 NR 50.
institutions that exit parallel run only: Column B: item 26 divided by item 48.b)........................
51. Total capital ratio (Column A: item 47.a divided by item 48.a) (Advanced approaches
RCFA7205 14.3328% RCFW7205 NR 51.
institutions that exit parallel run only: Column B: item 47.b divided by item 48.b).....................

Dollar amounts in thousands

52. Institution-specific capital buffer necessary to avoid limitations on distributions and discretionary bonus payments: 52.

a. Capital conservation buffer................................................................................................................................... RCFAH311 6.3328% 52.a.

b. Advanced approaches institutions and institutions subject to Category III capital standards only: Total applicable
RCFWH312 2.5000% 52.b.
capital buffer.............................................................................................................................................................
1 RCFAH313 NR 53.
53. Eligible retained income ...........................................................................................................................................
2 RCFAH314 NR 54.
54. Distributions and discretionary bonus payments during the quarter ........................................................................
55. Advanced approaches institutions and institutions subject to Category III capital standards only: Supplementary
55.
leverage ratio information:
3 RCFAH015 544,160,240 55.a.
a. Total leverage exposure ......................................................................................................................................
b. Supplementary leverage ratio............................................................................................................................... RCFAH036 8.8086% 55.b.

1. Items 38.a through 38.c should be completed only by institutions that have adopted ASU 2016-13.
3. Institutions that have adopted ASU 2016-13 should report the amount of adjusted allowances for credit losses (AACL), as defined in the regulatory capital rule, includable in tier 2 capital in item
42.a.
1. Institutions must complete item 53 only if the amount reported in item 52.a above is less than or equal to 2.5000 percent (plus any other applicable buffer if the institution is an advanced
approaches institution or a Category III institution).
2. Institutions must complete item 54 only if the amount reported in Schedule RC-R, Part I, item 46.a, in the Call Report for the December 31, 2019, report date was less than or equal to 2.5000
percent (plus any other applicable buffer if the institution is an advanced approaches institution or a Category III institution).
3. Institutions that have adopted ASU 2016-13 and have elected to apply the 3-year or the 5-year 2020 CECL transition provision should include the applicable portion of the CECL transitional
amount or the modified CECL transitional amount, respectively, in item 55.a.
 CAPITAL ONE, NATIONAL ASSOCIATION FFIEC 031
RSSD-ID 112837 Report Date 12/31/2023
Last Updated on 1/30/2024 62

Schedule RC-R Part II - Risk-Weighted Assets(Form Type - 031)

Institutions are required to assign a 100 percent risk weight to all assets not specifically assigned a risk weight under Subpart D of the federal banking agencies' regulatory capital rules and not deducted from tier 1 or tier 2 capital.

(Column A) (Column B) (Column C) (Column D) (Column E) (Column F) (Column G) (Column H) (Column I) (Column J)
Totals from Adjustments Allocation by Allocation by Allocation by Allocation by Allocation by Allocation by Allocation by Allocation by
Schedule RC to Totals Risk-Weight Risk-Weight Risk-Weight Risk-Weight Risk-Weight Risk-Weight Risk-Weight Risk-Weight
Reported in Category 0% Category 2% Category 4% Category 10% Category 20% Category 50% Category Category
Dollar amounts in thousands Column A 100% 150%
RCFDD957 RCFDS396 RCFDD958 RCFDD959 RCFDS397 RCFDD960 RCFDS398
1.
1. Cash and balances due from depository institutions........... 43,244,310 0 38,149,680 5,094,630 0 0 0

2. Securities: 2.
RCFDD961 RCFDS399 RCFDD962 RCFDHJ74 RCFDHJ75 RCFDD963 RCFDD964 RCFDD965 RCFDS400
3 2.a.
a. Held-to-maturity securities ......................................... 0 0 0 0 0 0 0 0 0
b. Available-for-sale debt securities and equity securities
with readily determinable fair values not held for RCFDJA21 RCFDS402 RCFDD967 RCFDHJ76 RCFDHJ77 RCFDD968 RCFDD969 RCFDD970 RCFDS403 2.b.
trading.............................................................................. 77,592,790 -9,041,140 35,602,634 0 0 50,453,227 0 578,069 0
3. Federal funds sold and securities purchased under
3.
agreements to resell:
RCOND971 RCOND972 RCOND973 RCONS410 RCOND974 RCONS411
3.a.
a. Federal funds sold in domestic offices......................... 0 0 0 0 0 0
RCFDH171 RCFDH172
3.b.
b. Securities purchased under agreements to resell........ 0 0

4. Loans and leases held for sale: 4.

RCFDS413 RCFDS414 RCFDH173 RCFDS415 RCFDS416 RCFDS417
4.a.
a. Residential mortgage exposures................................. 0 0 0 0 0 0
RCFDS419 RCFDS420 RCFDH174 RCFDH175 RCFDH176 RCFDH177 RCFDS421
4.b.
b. High volatility commercial real estate exposures......... 26,418 0 0 0 0 0 26,418
c. Exposures past due 90 days or more or on RCFDS423 RCFDS424 RCFDS425 RCFDHJ78 RCFDHJ79 RCFDS426 RCFDS427 RCFDS428 RCFDS429
3 4.c.
nonaccrual ..................................................................... 124,843 0 0 0 0 0 0 0 124,843

(Column K) (Column L) (Column M) (Column N) (Column O) (Column P) (Column Q) (Column R) (Column S)

Allocation by Allocation by Allocation by Allocation by Allocation by Allocation by Allocation by Application of Application of
Risk-Weight Risk-Weight Risk-Weight Risk-Weight Risk-Weight Risk-Weight Risk-Weight Other Other
Category 250% Category 300% Category 400% Category 600% Category 625% Category Category Risk-Weighting Risk-Weighting
937.5% 1,250% Approaches Approaches
Exposure Risk-Weighted
Dollar amounts in thousands Amount Asset Amount

1. Cash and balances due from depository institutions 1.

2. Securities: 2.

a. Held-to-maturity securities 2.a.

b. Available-for-sale debt securities and equity securities with RCFDH270 RCFDS405 RCFDS406 RCFDH271 RCFDH272
2.b.
readily determinable fair values not held for trading................ NR 0 0 0 0
3. Federal funds sold and securities purchased under agreements
3.
to resell:
a. Federal funds sold in domestic offices 3.a.

3. Institutions that have adopted ASU 2016-13 should report as a negative number allowances eligible for inclusion in tier 2 capital in Column B, which excludes PCD allowances.
3. For loans and leases held for sale, exclude residential mortgage exposures, high volatility commercial real estate exposures, or sovereign exposures that are past due 90 days or more or on nonaccrual.
 CAPITAL ONE, NATIONAL ASSOCIATION FFIEC 031
RSSD-ID 112837 Report Date 12/31/2023
Last Updated on 1/30/2024 63

(Column K) (Column L) (Column M) (Column N) (Column O) (Column P) (Column Q) (Column R) (Column S)

Allocation by Allocation by Allocation by Allocation by Allocation by Allocation by Allocation by Application of Application of
Risk-Weight Risk-Weight Risk-Weight Risk-Weight Risk-Weight Risk-Weight Risk-Weight Other Other
Category 250% Category 300% Category 400% Category 600% Category 625% Category Category Risk-Weighting Risk-Weighting
937.5% 1,250% Approaches Approaches
Exposure Risk-Weighted
Dollar amounts in thousands Amount Asset Amount
b. Securities purchased under agreements to resell 3.b.

4. Loans and leases held for sale: 4.

RCFDH273 RCFDH274
4.a.
a. Residential mortgage exposures......................................... 0 0
RCFDH275 RCFDH276
4.b.
b. High volatility commercial real estate exposures................. 0 0
 CAPITAL ONE, NATIONAL ASSOCIATION FFIEC 031
RSSD-ID 112837 Report Date 12/31/2023
Last Updated on 1/30/2024 64

(Column K) (Column L) (Column M) (Column N) (Column O) (Column P) (Column Q) (Column R) (Column S)

Allocation by Allocation by Allocation by Allocation by Allocation by Allocation by Allocation by Application of Application of
Risk-Weight Risk-Weight Risk-Weight Risk-Weight Risk-Weight Risk-Weight Risk-Weight Other Other
Category 250% Category 300% Category 400% Category 600% Category 625% Category Category Risk-Weighting Risk-Weighting
937.5% 1,250% Approaches Approaches
Exposure Risk-Weighted
Dollar amounts in thousands Amount Asset Amount
RCFDH277 RCFDH278
6 4.c.
c. Exposures past due 90 days or more or on nonaccrual ..... 0 0

(Column A) (Column B) (Column C) (Column D) (Column E) (Column F) (Column G) (Column H) (Column I) (Column J)
Totals from Adjustments Allocation by Allocation by Allocation by Allocation by Allocation by Allocation by Allocation by Allocation by
Schedule RC to Totals Risk-Weight Risk-Weight Risk-Weight Risk-Weight Risk-Weight Risk-Weight Risk-Weight Risk-Weight
Reported in Category 0% Category 2% Category 4% Category 10% Category 20% Category 50% Category Category
Dollar amounts in thousands Column A 100% 150%

4. Loans and leases held for sale (continued): 4.

RCFDS431 RCFDS432 RCFDS433 RCFDHJ80 RCFDHJ81 RCFDS434 RCFDS435 RCFDS436 RCFDS437

4.d.
d. All other exposures...................................................... 702,380 0 0 0 0 0 0 702,380 0

5. Loans and leases held for investment: 5.

RCFDS439 RCFDS440 RCFDH178 RCFDS441 RCFDS442 RCFDS443
5.a.
a. Residential mortgage exposures................................. 2,398,403 0 0 0 2,271,161 127,242
RCFDS445 RCFDS446 RCFDH179 RCFDH180 RCFDH181 RCFDH182 RCFDS447
5.b.
b. High volatility commercial real estate exposures......... 37,347 0 0 0 0 0 37,347
c. Exposures past due 90 days or more or on RCFDS449 RCFDS450 RCFDS451 RCFDHJ82 RCFDHJ83 RCFDS452 RCFDS453 RCFDS454 RCFDS455
7 5.c.
nonaccrual ..................................................................... 6,257,781 0 0 0 0 5 0 38,373 6,219,403
RCFDS457 RCFDS458 RCFDS459 RCFDHJ84 RCFDHJ85 RCFDS460 RCFDS461 RCFDS462 RCFDS463
5.d.
d. All other exposures...................................................... 295,732,706 0 207,344 0 0 3,019,273 4,047,430 288,458,659 0
RCFD3123 RCFD3123
6.
6. LESS: Allowance for loan and lease losses........................ 15,295,641 15,295,641
RCFDD976 RCFDS466 RCFDD977 RCFDHJ86 RCFDHJ87 RCFDD978 RCFDD979 RCFDD980 RCFDS467
7.
7. Trading assets..................................................................... 1,487,407 1,487,407 0 0 0 0 0 0 0
RCFDD981 RCFDS469 RCFDD982 RCFDHJ88 RCFDHJ89 RCFDD983 RCFDD984 RCFDD985 RCFDH185
8 8.
8. All other assets .................................................................. 45,375,565 17,873,900 2,406,703 0 0 242,322 42,214 19,486,584 48,951

a. Separate account bank-owned life insurance 8.a.

b. Default fund contributions to central counterparties 8.b.

 CAPITAL ONE, NATIONAL ASSOCIATION FFIEC 031
RSSD-ID 112837 Report Date 12/31/2023
Last Updated on 1/30/2024 65

(Column K) (Column L) (Column M) (Column N) (Column O) (Column P) (Column Q) (Column R) (Column S)

Allocation by Allocation by Allocation by Allocation by Allocation by Allocation by Allocation by Application of Application of
Risk-Weight Risk-Weight Risk-Weight Risk-Weight Risk-Weight Risk-Weight Risk-Weight Other Other
Category 250% Category 300% Category 400% Category 600% Category 625% Category Category Risk-Weighting Risk-Weighting
937.5% 1,250% Approaches Approaches
Exposure Risk-Weighted
Dollar amounts in thousands Amount Asset Amount

4. Loans and leases held for sale (continued): 4.

RCFDH279 RCFDH280
4.d.
d. All other exposures.............................................................. 0 0

5. Loans and leases held for investment: 5.

RCFDH281 RCFDH282
5.a.
a. Residential mortgage exposures......................................... 0 0
RCFDH283 RCFDH284
5.b.
b. High volatility commercial real estate exposures................. 0 0
RCFDH285 RCFDH286
11 5.c.
c. Exposures past due 90 days or more or on nonaccrual .... 0 0
RCFDH287 RCFDH288
5.d.
d. All other exposures.............................................................. 0 0

6. LESS: Allowance for loan and lease losses 6.

RCFDH289 RCFDH186 RCFDH290 RCFDH187 RCFDH291 RCFDH292
7.
7. Trading assets............................................................................. NR 0 0 0 0 0
RCFDH293 RCFDH188 RCFDS470 RCFDS471 RCFDH294 RCFDH295
12 8.
8. All other assets ........................................................................ 3,451,161 0 0 0 0 0
RCFDH296 RCFDH297
8.a.
a. Separate account bank-owned life insurance...................... 1,821,737 462,812
RCFDH298 RCFDH299
8.b.
b. Default fund contributions to central counterparties............ 1,993 0

6. For loans and leases held for sale, exclude residential mortgage exposures, high volatility commercial real estate exposures, or sovereign exposures that are past due 90 days or more or on nonaccrual.
7. For loans and leases, net of unearned income, exclude residential mortgage exposures, high volatility commercial real estate exposures, or sovereign exposures that are past due 90 days or more or on nonaccrual.
8. Includes premises and fixed assets; other real estate owned; investments in unconsolidated subsidiaries and associated companies; direct and indirect investments in real estate ventures; intangible assets; and other assets.
11. For loans and leases, net of unearned income, exclude residential mortgage exposures, high volatility commercial real estate exposures, or sovereign exposures that are past due 90 days or more or on nonaccrual.
12. Includes premises and fixed assets; other real estate owned; investments in unconsolidated subsidiaries and associated companies; direct and indirect investments in real estate ventures; intangible assets; and other assets.
 CAPITAL ONE, NATIONAL ASSOCIATION FFIEC 031
RSSD-ID 112837 Report Date 12/31/2023
Last Updated on 1/30/2024 66

(Column A) (Column B) (Column Q) (Column T) Total (Column U) Total

Totals Adjustments to Exposure Risk-Weighted Risk-Weighted
Totals Reported Amount 1,250% Asset Amount Asset Amount
in Column A by Calculation by Calculation
Methodology Methodology
Dollar amounts in thousands SSFA Gross-Up

9. On-balance sheet securitization exposures: 9.

RCFDS475 RCFDS476 RCFDS477 RCFDS478 RCFDS479

9.a.
a. Held-to-maturity securities......................................................... 0 0 0 0 0
RCFDS480 RCFDS481 RCFDS482 RCFDS483 RCFDS484
9.b.
b. Available-for-sale securities........................................................ 1,722,266 1,722,266 0 1,221,977 0
RCFDS485 RCFDS486 RCFDS487 RCFDS488 RCFDS489
9.c.
c. Trading assets............................................................................. 34,846 34,827 19 98,164 0
RCFDS490 RCFDS491 RCFDS492 RCFDS493 RCFDS494
9.d.
d. All other on-balance sheet securitization exposures.................. 16,187,218 16,187,121 97 4,603,666 0
RCFDS495 RCFDS496 RCFDS497 RCFDS498 RCFDS499
10.
10. Off-balance sheet securitization exposures..................................... 3,611,926 3,611,926 0 756,698 0
 CAPITAL ONE, NATIONAL ASSOCIATION FFIEC 031
RSSD-ID 112837 Report Date 12/31/2023
Last Updated on 1/30/2024 67

(Column A) (Column B) (Column C) (Column D) (Column E) (Column F) (Column G) (Column H) (Column I) (Column J)
Totals From Adjustments Allocation by Allocation by Allocation by Allocation by Allocation by Allocation by Allocation by Allocation by
Schedule RC to Totals Risk-Weight Risk-Weight Risk-Weight Risk-Weight Risk-Weight Risk-Weight Risk-Weight Risk-Weight
Reported in Category 0% Category 2% Category 4% Category 10% Category 20% Category 50% Category Category
Dollar amounts in thousands Column A 100% 150%
RCFD2170 RCFDS500 RCFDD987 RCFDHJ90 RCFDHJ91 RCFDD988 RCFDD989 RCFDD990 RCFDS503
14 11.
11. Total balance sheet assets ............................................. 475,628,639 12,968,740 76,366,361 0 0 58,809,457 6,360,805 309,391,307 6,456,962

(Column K) (Column L) (Column M) (Column N) (Column O) (Column P) (Column Q) (Column R)

Allocation by Allocation by Allocation by Allocation by Allocation by Allocation by Allocation by Application of
Risk-Weight Risk-Weight Risk-Weight Risk-Weight Risk-Weight Risk-Weight Risk-Weight Other
Category 250% Category 300% Category 400% Category 600% Category 625% Category 937.5% Category 1,250% Risk-Weighting
Approaches
Exposure
Dollar amounts in thousands Amount
RCFDS504 RCFDS505 RCFDS506 RCFDS507 RCFDS510 RCFDH300
14 11.
11. Total balance sheet assets ............................................................. 3,451,161 0 0 0 116 1,823,730

(Column A) (Column B) (Column C) (Column D) (Column E) (Column F) (Column G) (Column H) (Column I) (Column J)
Face, Credit Allocation by Allocation by Allocation by Allocation by Allocation by Allocation by Allocation by Allocation by
Notional, or Equivalent Risk-Weight Risk-Weight Risk-Weight Risk-Weight Risk-Weight Risk-Weight Risk-Weight Risk-Weight
Other Amount Amount Category 0% Category 2% Category 4% Category 10% Category 20% Category 50% Category Category
Dollar amounts in thousands 100% 150%
RCFDD991 RCFDD992 RCFDD993 RCFDHJ92 RCFDHJ93 RCFDD994 RCFDD995 RCFDD996 RCFDS511
12.
12. Financial standby letters of credit...................................... 1,236,379 1,236,379 104,588 0 0 0 0 1,131,791 0
13. Performance standby letters of credit and RCFDD997 RCFDD998 RCFDD999 RCFDG603 RCFDG604 RCFDG605 RCFDS512
13.
transaction-related contingent items....................................... 220,152 110,076 791 0 0 109,285 0
14. Commercial and similar letters of credit with an original RCFDG606 RCFDG607 RCFDG608 RCFDHJ94 RCFDHJ95 RCFDG609 RCFDG610 RCFDG611 RCFDS513
14.
maturity of one year or less..................................................... 8,265 1,653 0 0 0 0 0 1,653 0
15. Retained recourse on small business obligations sold with RCFDG612 RCFDG613 RCFDG614 RCFDG615 RCFDG616 RCFDG617 RCFDS514
15.
recourse.................................................................................. 0 0 0 0 0 0 0

(Column A) (Column B) (Column C) (Column D) (Column E) (Column F) (Column G) (Column H) (Column I) (Column J)
Face, Credit Allocation by Allocation by Allocation by Allocation by Allocation by Allocation by Allocation by Allocation by
Notional, or Equivalent Risk-Weight Risk-Weight Risk-Weight Risk-Weight Risk-Weight Risk-Weight Risk-Weight Risk-Weight
Other Amount Amount Category 0% Category 2% Category 4% Category 10% Category 20% Category 50% Category Category
Dollar amounts in thousands 100% 150%
RCFDS515 RCFDS516 RCFDS517 RCFDS518 RCFDS519 RCFDS520 RCFDS521 RCFDS522 RCFDS523
21 16.
16. Repo-style transactions ................................................. 549,017 549,017 507,184 0 0 0 0 41,833 0
RCFDG618 RCFDG619 RCFDG620 RCFDG621 RCFDG622 RCFDG623 RCFDS524
17.
17. All other off-balance sheet liabilities.................................. 6,591,029 6,591,029 0 0 5,636,841 954,188 0
* 18.
18. Unused commitments:
RCFDS525 RCFDS526 RCFDS527 RCFDHJ96 RCFDHJ97 RCFDS528 RCFDS529 RCFDS530 RCFDS531
18.a.
a. Original maturity of one year or less............................ 1,716,060 343,212 0 0 0 13,400 0 329,812 0

14. For each of columns A through R of item 11, report the sum of items 1 through 9. For item 11, the sum of columns B through R must equal column A. Item 11, column A, must equal Schedule RC, item 12.
21. Includes securities purchased under agreements to resell (reverse repos), securities sold under agreements to repurchase (repos), securities borrowed, and securities lent.
*. Excludes unused commitments to asset-backed commercial paper conduits.
 CAPITAL ONE, NATIONAL ASSOCIATION FFIEC 031
RSSD-ID 112837 Report Date 12/31/2023
Last Updated on 1/30/2024 68

(Column A) (Column B) (Column C) (Column D) (Column E) (Column F) (Column G) (Column H) (Column I) (Column J)
Face, Credit Allocation by Allocation by Allocation by Allocation by Allocation by Allocation by Allocation by Allocation by
Notional, or Equivalent Risk-Weight Risk-Weight Risk-Weight Risk-Weight Risk-Weight Risk-Weight Risk-Weight Risk-Weight
Other Amount Amount Category 0% Category 2% Category 4% Category 10% Category 20% Category 50% Category Category
Dollar amounts in thousands 100% 150%
RCFDG624 RCFDG625 RCFDG626 RCFDHJ98 RCFDHJ99 RCFDG627 RCFDG628 RCFDG629 RCFDS539
18.b.
b. Original maturity exceeding one year........................... 38,867,786 19,433,893 0 0 0 968,267 0 17,598,794 866,832
RCFDS540 RCFDS541
19.
19. Unconditionally cancelable commitments......................... 395,662,886 0
RCFDS542 RCFDS543 RCFDHK00 RCFDHK01 RCFDS544 RCFDS545 RCFDS546 RCFDS547 RCFDS548
20.
20. Over-the-counter derivatives............................................. 3,101,671 582,553 0 0 0 851,370 0 1,667,748 0
RCFDS549 RCFDS550 RCFDS551 RCFDS552 RCFDS554 RCFDS555 RCFDS556 RCFDS557
21.
21. Centrally cleared derivatives............................................. 6,248,522 0 6,248,522 0 0 0 0 0
RCFDH191 RCFDH193 RCFDH194 RCFDH195 RCFDH196 RCFDH197
22 22.
22. Unsettled transactions (failed trades) ............................. 0 0 0 0 0 0

22. For item 22, the sum of columns C through Q must equal column A.
 CAPITAL ONE, NATIONAL ASSOCIATION FFIEC 031
RSSD-ID 112837 Report Date 12/31/2023
Last Updated on 1/30/2024 69

(Column O) (Column P) (Column Q) (Column R) (Column S)

Allocation by Allocation by Allocation by Application of Application of
Risk-Weight Risk-Weight Risk-Weight Other Other
Category 625% Category 937.5% Category 1,250% Risk-Weighting Risk-Weighting
Approaches Approaches
Credit Risk-Weighted
Equivalent Asset Amount
Dollar amounts in thousands Amount
RCFDH301 RCFDH302
24 16.
16. Repo-style transactions ................................................................ 0 0

17. All other off-balance sheet liabilities 17.

* 18.
18. Unused commitments:
RCFDH303 RCFDH304
18.a.
a. Original maturity of one year or less........................................... 0 0
RCFDH307 RCFDH308
18.b.
b. Original maturity exceeding one year......................................... 0 0

19. Unconditionally cancelable commitments 19.

RCFDH309 RCFDH310
20.
20. Over-the-counter derivatives........................................................... 0 0

21. Centrally cleared derivatives 21.

RCFDH198 RCFDH199 RCFDH200
25 22.
22. Unsettled transactions (failed trades) ........................................... 0 0 0

24. Includes securities purchased under agreements to resell (reverse repos), securities sold under agreements to repurchase (repos), securities borrowed, and securities lent.
*. Excludes unused commitments to asset-backed commercial paper conduits.
25. For item 22, the sum of columns C through Q must equal column A.
 CAPITAL ONE, NATIONAL ASSOCIATION FFIEC 031
RSSD-ID 112837 Report Date 12/31/2023
Last Updated on 1/30/2024 70

(Column C) (Column D) (Column E) (Column F) (Column G) (Column H) (Column I) (Column J)

Allocation by Allocation by Allocation by Allocation by Allocation by Allocation by Allocation by Allocation by
Risk-Weight Risk-Weight Risk-Weight Risk-Weight Risk-Weight Risk-Weight Risk-Weight Risk-Weight
Dollar amounts in thousands Category 0% Category 2% Category 4% Category 10% Category 20% Category 50% Category 100% Category 150%
23. Total assets, derivatives, off-balance sheet items, and other items
subject to risk weighting by risk-weight category (for each of columns C
23.
through P, sum of items 11 through 22; for column Q, sum of items 10 RCFDG630 RCFDS558 RCFDS559 RCFDS560 RCFDG631 RCFDG632 RCFDG633 RCFDS561
through 22).............................................................................................. 77,561,477 6,248,522 0 0 60,642,494 11,997,646 331,226,411 7,323,794

24. Risk weight factor 24.

25. Risk-weighted assets by risk-weight category (for each column, item RCFDG634 RCFDS569 RCFDS570 RCFDS571 RCFDG635 RCFDG636 RCFDG637 RCFDS572
25.
23 multiplied by item 24)......................................................................... 0 124,970 0 0 12,128,499 5,998,823 331,226,411 10,985,691

(Column K) (Column L) (Column M) (Column N) (Column O) (Column P) (Column Q)

Allocation by Allocation by Allocation by Allocation by Allocation by Allocation by Allocation by
Risk-Weight Risk-Weight Risk-Weight Risk-Weight Risk-Weight Risk-Weight Risk-Weight
Dollar amounts in thousands Category 250% Category 300% Category 400% Category 600% Category 625% Category 937.5% Category 1,250%
23. Total assets, derivatives, off-balance sheet items, and other items subject
to risk weighting by risk-weight category (for each of columns C through P, RCFDS562 RCFDS563 RCFDS564 RCFDS565 RCFDS566 RCFDS567 RCFDS568 23.
sum of items 11 through 22; for column Q, sum of items 10 through 22)......... 3,451,161 0 0 0 0 0 116

24. Risk weight factor 24.

25. Risk-weighted assets by risk-weight category (for each column, item 23 RCFDS573 RCFDS574 RCFDS575 RCFDS576 RCFDS577 RCFDS578 RCFDS579
25.
multiplied by item 24)........................................................................................ 8,627,903 0 0 0 0 0 1,450
 CAPITAL ONE, NATIONAL ASSOCIATION FFIEC 031
RSSD-ID 112837 Report Date 12/31/2023
Last Updated on 1/30/2024 71

Dollar amounts in thousands

26. Risk-weighted assets base for purposes of calculating the allowance for loan and lease losses 1.25 percent
RCFDS580 376,237,064 26.
threshold..........................................................................................................................................................................
27. Standardized market-risk weighted assets (applicable only to banks that are covered by the market risk capital
RCFDS581 209,825 27.
rule).................................................................................................................................................................................
28. Risk-weighted assets before deductions for excess allowance of loan and lease losses and allocated risk transfer
27 RCFDB704 376,446,889 28.
risk reserve ..................................................................................................................................................................
29. LESS: Excess allowance for loan and lease losses.................................................................................................. RCFDA222 9,205,026 29.

30. LESS: Allocated transfer risk reserve........................................................................................................................ RCFD3128 0 30.

31. Total risk-weighted assets (item 28 minus items 29 and 30)..................................................................................... RCFDG641 367,241,863 31.

1. Current credit exposure across all derivative contracts covered by the regulatory capital rules................................. RCFDG642 2,985,866 M.1.

(Column A) With a (Column B) With a (Column C) With a

remaining maturity of One remaining maturity of Over remaining maturity of Over
year or less one year through five five years
Dollar amounts in thousands years

2. Notional principal amounts of over-the-counter derivative contracts: M.2.

a. Interest rate........................................................................................... RCFDS582 31,978,930 RCFDS583 78,543,659 RCFDS584 10,945,936 M.2.a.

b. Foreign exchange rate and gold............................................................ RCFDS585 17,006,094 RCFDS586 69,255 RCFDS587 0 M.2.b.

c. Credit (investment grade reference asset)............................................. RCFDS588 0 RCFDS589 0 RCFDS590 0 M.2.c.

d. Credit (non-investment grade reference asset)..................................... RCFDS591 1,070,780 RCFDS592 5,173,304 RCFDS593 759,929 M.2.d.

e. Equity..................................................................................................... RCFDS594 0 RCFDS595 0 RCFDS596 0 M.2.e.

f. Precious metals (except gold)................................................................ RCFDS597 0 RCFDS598 0 RCFDS599 0 M.2.f.

g. Other..................................................................................................... RCFDS600 2,082,276 RCFDS601 0 RCFDS602 0 M.2.g.

3. Notional principal amounts of centrally cleared derivative contracts: M.3.

a. Interest rate........................................................................................... RCFDS603 13,306,657 RCFDS604 73,150,530 RCFDS605 8,585,839 M.3.a.

b. Foreign exchange rate and gold............................................................ RCFDS606 0 RCFDS607 0 RCFDS608 0 M.3.b.

c. Credit (investment grade reference asset)............................................. RCFDS609 0 RCFDS610 0 RCFDS611 0 M.3.c.

d. Credit (non-investment grade reference asset)..................................... RCFDS612 0 RCFDS613 0 RCFDS614 0 M.3.d.

e. Equity..................................................................................................... RCFDS615 0 RCFDS616 0 RCFDS617 0 M.3.e.

f. Precious metals (except gold)................................................................ RCFDS618 0 RCFDS619 0 RCFDS620 0 M.3.f.

g. Other..................................................................................................... RCFDS621 10,502,813 RCFDS622 5,319,216 RCFDS623 1,993 M.3.g.

Dollar amounts in thousands

1 M.4.
4. Amount of allowances for credit losses on purchased credit-deteriorated assets:
a. Loans and leases held for investment.................................................................................................................. RCFDJJ30 191 M.4.a.

b. Held-to-maturity debt securities............................................................................................................................ RCFDJJ31 0 M.4.b.

c. Other financial assets measured at amortized cost............................................................................................. RCFDJJ32 0 M.4.c.

27. Sum of items 2.b through 20, column S; items 9.a, 9.b, 9.c, 9.d, and 10, columns T and U; item 25, columns C through Q; and item 27 (if applicable).
1. Memorandum items 4.a through 4.c should be completed only by institutions that have adopted ASU 2016-13.
 CAPITAL ONE, NATIONAL ASSOCIATION FFIEC 031
RSSD-ID 112837 Report Date 12/31/2023
Last Updated on 1/30/2024 72

Schedule RC-S - Servicing Securitization and Asset Sale Activities(Form Type - 031)
(Column A) 1-4 (Column B) Home (Column C) Credit (Column D) Auto (Column E) Other (Column F) (Column G) All
Family Residential Equity Lines Card Receivables Loans Consumer Loans Commercial and Other Loans, All
Loans Industrial Loans Leases, and All
Dollar amounts in thousands Other Assets
1. Outstanding principal balance of assets sold and securitized by the reporting
bank with servicing retained or with recourse or other seller-provided credit RCFDB705 RCFDB706 RCFDB707 RCFDB708 RCFDB709 RCFDB710 RCFDB711 1.
enhancements................................................................................................... 0 0 0 0 64,891 0 0
2. Maximum amount of credit exposure arising from recourse or other
seller-provided credit enhancements provided to structures reported in item RCFDHU09 RCFDHU10 RCFDHU11 RCFDHU12 RCFDHU13 RCFDHU14 RCFDHU15 2.
1 ........................................................................................................................ 0 0 0 0 14,340 0 0
Item 3 is to be completed by banks with $100 billion or more in total assets.
3. Reporting bank's unused commitments to provide liquidity to structures RCFDB726 RCFDB727 RCFDB728 RCFDB729 RCFDB730 RCFDB731 RCFDB732
3.
1
reported in item 1 ............................................................................................ 0 0 0 0 0 0 0

4. Past due loan amounts included in item 1: 4.

RCFDB733 RCFDB734 RCFDB735 RCFDB736 RCFDB737 RCFDB738 RCFDB739
4.a.
a. 30-89 days past due............................................................................... 0 0 0 0 4,160 0 0
RCFDB740 RCFDB741 RCFDB742 RCFDB743 RCFDB744 RCFDB745 RCFDB746
4.b.
b. 90 days or more past due...................................................................... 0 0 0 0 3,528 0 0
5. Charge-offs and recoveries on assets sold and securitized with servicing
retained or with recourse or other seller-provided credit enhancements (calendar 5.
year-to-date):
RIADB747 RIADB748 RIADB749 RIADB750 RIADB751 RIADB752 RIADB753
5.a.
a. Charge-offs............................................................................................ 0 0 0 0 1,147 0 0
RIADB754 RIADB755 RIADB756 RIADB757 RIADB758 RIADB759 RIADB760
5.b.
b. Recoveries............................................................................................. 0 0 0 0 0 0 0
Item 6 is to be completed by banks with $10 billion or more in total assets.
6. Total amount of ownership (or seller's) interest carried as securities or RCFDHU16 RCFDHU17 RCFDHU18
6.
1
loans ................................................................................................................ 0 0 0

7. Not applicable 7.

8. Not applicable 8.

9. Maximum amount of credit exposure arising from credit enhancements

provided by the reporting bank to other institutions' securitization structures in
9.
the form of standby letters of credit, purchased subordinated securities, and RCFDB776 RCFDB779 RCFDB780 RCFDB781 RCFDB782
other enhancements......................................................................................... 72,023 646,692 0 0 0
Item 10 is to be completed by banks with $10 billion or more in total assets.
10. Reporting bank's unused commitments to provide liquidity to other RCFDB783 RCFDB786 RCFDB787 RCFDB788 RCFDB789
10.
1
institutions' securitization structures ................................................................ 0 0 0 0 0
11. Assets sold with recourse or other seller-provided credit enhancements RCFDB790 RCFDB796
11.
and not securitized by the reporting bank......................................................... 0 25,202,595
12. Maximum amount of credit exposure arising from recourse or other RCFDB797 RCFDB803
12.
seller-provided credit enhancements provided to assets reported in item 11.... 0 6,646,461

1. The $100 billion asset-size test is based on the total assets reported on the June 30, 2022, Report of Condition.
1. The $10 billion asset-size test is based on the total assets reported on the June 30, 2022, Report of Condition.
1. The $10 billion asset-size test is based on the total assets reported on the June 30, 2022, Report of Condition.
 CAPITAL ONE, NATIONAL ASSOCIATION FFIEC 031
RSSD-ID 112837 Report Date 12/31/2023
Last Updated on 1/30/2024 73

Dollar amounts in thousands

1. Not applicable M.1.

2. Outstanding principal balance of assets serviced for others (includes participations serviced for others): M.2.

a. Closed-end 1-4 family residential mortgages serviced with recourse or other servicer-provided credit
RCFDB804 0 M.2.a.
enhancements..........................................................................................................................................................
b. Closed-end 1-4 family residential mortgages serviced with no recourse or other servicer-provided credit
RCFDB805 0 M.2.b.
enhancements..........................................................................................................................................................
1 RCFDA591 82,326,737 M.2.c.
c. Other financial assets (includes home equity lines) ............................................................................................
d. 1-4 family residential mortgages serviced for others that are in process of foreclosure at quarter-end (includes
RCFDF699 0 M.2.d.
closed-end and open-end loans)..............................................................................................................................
Memorandum item 3 is to be completed by banks with $10 billion or more in total assets.
M.3.
2
3. Asset-backed commercial paper conduits:
a. Maximum amount of credit exposure arising from credit enhancements provided to conduit structures in the
M.3.a.
form of standby letters of credit, subordinated securities, and other enhancements:
1. Conduits sponsored by the bank, a bank affiliate, or the bank's holding company....................................... RCFDB806 0 M.3.a.1.

2. Conduits sponsored by other unrelated institutions...................................................................................... RCFDB807 0 M.3.a.2.

b. Unused commitments to provide liquidity to conduit structures: M.3.b.

1. Conduits sponsored by the bank, a bank affiliate, or the bank's holding company....................................... RCFDB808 0 M.3.b.1.

2. Conduits sponsored by other unrelated institutions...................................................................................... RCFDB809 0 M.3.b.2.

2 RCFDC407 0 M.4.
4. Outstanding credit card fees and finance charges included in Schedule RC-S, item 1, column C ............................

Schedule RC-T - Fiduciary and Related Services(Form Type - 031)

Dollar amounts in thousands
1. Does the institution have fiduciary powers? (If "NO," do not complete Schedule RC-T.)............................................ RCFDA345 Yes 1.

2. Does the institution exercise the fiduciary powers it has been granted?..................................................................... RCFDA346 Yes 2.

3. Does the institution have any fiduciary or related activity (in the form of assets or accounts) to report in this schedule?
RCFDB867 Yes 3.
(If "NO," do not complete the rest of Schedule RC-T.)....................................................................................................

(Column A) Managed (Column B) (Column C) Number of (Column D) Number of

Assets Non-Managed Assets Managed Accounts Non-Managed
Dollar amounts in thousands Accounts

4. Personal trust and agency accounts........................................... RCFDB868 816 RCFDB869 0 RCFDB870 3 RCFDB871 0 4.

5. Employee benefit and retirement-related trust and agency

5.
accounts:
a. Employee benefit - defined contribution.............................. RCFDB872 0 RCFDB873 0 RCFDB874 0 RCFDB875 0 5.a.

b. Employee benefit - defined benefit...................................... RCFDB876 0 RCFDB877 0 RCFDB878 0 RCFDB879 0 5.b.

c. Other employee benefit and retirement-related accounts..... RCFDB880 0 RCFDB881 0 RCFDB882 0 RCFDB883 0 5.c.

6. Corporate trust and agency accounts......................................... RCFDB884 0 RCFDB885 0 RCFDC001 0 RCFDC002 0 6.

7. Investment management and investment advisory agency

RCFDB886 0 RCFDJ253 0 RCFDB888 0 RCFDJ254 0 7.
accounts.........................................................................................
8. Foundation and endowment trust and agency accounts............ RCFDJ255 0 RCFDJ256 0 RCFDJ257 0 RCFDJ258 0 8.

9. Other fiduciary accounts............................................................. RCFDB890 0 RCFDB891 0 RCFDB892 0 RCFDB893 0 9.

10. Total fiduciary accounts (sum of items 4 through 9).................. RCFDB894 816 RCFDB895 0 RCFDB896 3 RCFDB897 0 10.

11. Custody and safekeeping accounts.......................................... RCFDB898 9 RCFDB899 1 11.

12. Fiduciary accounts held in foreign offices (included in items 10

RCFNB900 0 RCFNB901 0 RCFNB902 0 RCFNB903 0 12.
and 11)............................................................................................
13. Individual Retirement Accounts, Health Savings Accounts, and
RCFDJ259 0 RCFDJ260 0 RCFDJ261 0 RCFDJ262 0 13.
other similar accounts (included in items 5.c and 11).....................

1. Memorandum item 2.c is to be completed if the principal balance of other financial assets serviced for others is more than $10 million.
2. The $10 billion asset-size test is based on the total assets reported on the June 30, 2022, Report of Condition.
2. Memorandum item 4 is to be completed by banks that (1) together with affiliated institutions, have outstanding credit card receivables (as defined in the instructions) that exceed $500 million
as of the report date, or (2) are credit card specialty banks as defined for Uniform Bank Performance Report purposes.
 CAPITAL ONE, NATIONAL ASSOCIATION FFIEC 031
RSSD-ID 112837 Report Date 12/31/2023
Last Updated on 1/30/2024 74

Dollar amounts in thousands

14. Personal trust and agency accounts.......................................................................................................................... RIADB904 NR 14.

15. Employee benefit and retirement-related trust and agency accounts: 15.

a. Employee benefit - defined contribution............................................................................................................... RIADB905 NR 15.a.

b. Employee benefit - defined benefit....................................................................................................................... RIADB906 NR 15.b.

c. Other employee benefit and retirement-related accounts..................................................................................... RIADB907 NR 15.c.

16. Corporate trust and agency accounts....................................................................................................................... RIADA479 NR 16.

17. Investment management and investment advisory agency accounts....................................................................... RIADJ315 NR 17.

18. Foundation and endowment trust and agency accounts........................................................................................... RIADJ316 NR 18.

19. Other fiduciary accounts............................................................................................................................................ RIADA480 NR 19.

20. Custody and safekeeping accounts........................................................................................................................... RIADB909 NR 20.

21. Other fiduciary and related services income............................................................................................................. RIADB910 NR 21.

22. Total gross fiduciary and related services income (sum of items 14 through 21) (must equal Schedule RI, item
RIAD4070 0 22.
5.a)..................................................................................................................................................................................
a. Fiduciary and related services income - foreign offices (included in item 22)...................................................... RIADB912 NR 22.a.

23. Less: Expenses......................................................................................................................................................... RIADC058 NR 23.

24. Less: Net losses from fiduciary and related services................................................................................................ RIADA488 NR 24.

25. Plus: Intracompany income credits for fiduciary and related services....................................................................... RIADB911 NR 25.

26. Net fiduciary and related services income................................................................................................................. RIADA491 NR 26.

(Column A) Personal Trust (Column B) Employee (Column C) All Other

and Agency and Benefit and Accounts
Investment Management Retirement-Related Trust
Dollar amounts in thousands Agency Accounts and Agency Accounts

1. Managed assets held in fiduciary accounts: M.1.

a. Noninterest-bearing deposits................................................................ RCFDJ263 0 RCFDJ264 0 RCFDJ265 0 M.1.a.

b. Interest-bearing deposits....................................................................... RCFDJ266 0 RCFDJ267 0 RCFDJ268 0 M.1.b.

c. U.S. Treasury and U.S. Government agency obligations....................... RCFDJ269 0 RCFDJ270 0 RCFDJ271 0 M.1.c.

d. State, county, and municipal obligations................................................ RCFDJ272 0 RCFDJ273 0 RCFDJ274 0 M.1.d.

e. Money market mutual funds.................................................................. RCFDJ275 615 RCFDJ276 0 RCFDJ277 0 M.1.e.

f. Equity mutual funds................................................................................ RCFDJ278 0 RCFDJ279 0 RCFDJ280 0 M.1.f.

g. Other mutual funds................................................................................ RCFDJ281 0 RCFDJ282 0 RCFDJ283 0 M.1.g.

h. Common trust funds and collective investment funds........................... RCFDJ284 0 RCFDJ285 0 RCFDJ286 0 M.1.h.

i. Other short-term obligations................................................................... RCFDJ287 0 RCFDJ288 0 RCFDJ289 0 M.1.i.

j. Other notes and bonds........................................................................... RCFDJ290 0 RCFDJ291 0 RCFDJ292 0 M.1.j.

k. Investments in unregistered funds and private equity investments....... RCFDJ293 0 RCFDJ294 0 RCFDJ295 0 M.1.k.

l. Other common and preferred stocks...................................................... RCFDJ296 0 RCFDJ297 0 RCFDJ298 0 M.1.l.

m. Real estate mortgages......................................................................... RCFDJ299 0 RCFDJ300 0 RCFDJ301 0 M.1.m.

n. Real estate............................................................................................ RCFDJ302 201 RCFDJ303 0 RCFDJ304 0 M.1.n.

o. Miscellaneous assets............................................................................ RCFDJ305 0 RCFDJ306 0 RCFDJ307 0 M.1.o.

p. Total managed assets held in fiduciary accounts (for each column, sum
RCFDJ308 816 RCFDJ309 0 RCFDJ310 0 M.1.p.
of Memorandum items 1.a through 1.o)....................................................

(Column A) Managed Assets (Column B) Number of Managed

Dollar amounts in thousands Accounts

q. Investments of managed fiduciary accounts in advised or sponsored mutual funds............. RCFDJ311 0 RCFDJ312 0 M.1.q.
 CAPITAL ONE, NATIONAL ASSOCIATION FFIEC 031
RSSD-ID 112837 Report Date 12/31/2023
Last Updated on 1/30/2024 75

(Column A) Number of Issues (Column B) Principal Amount

Dollar amounts in thousands Outstanding

2. Corporate trust and agency accounts: M.2.

a. Corporate and municipal trusteeships............................................................................ RCFDB927 0 RCFDB928 0 M.2.a.

1. Issues reported in Memorandum item 2.a that are in default.................................. RCFDJ313 0 RCFDJ314 0 M.2.a.1.

b. Transfer agent, registrar, paying agent, and other corporate agency............................. RCFDB929 0 M.2.b.

(Column A) Number of Funds (Column B) Market Value of

Dollar amounts in thousands Fund Assets
Memoranda items 3.a through 3.g are to be completed by banks with collective investment funds and common
trust funds with a total market value of $1 billion or more as of the preceding December 31. M.3.
3. Collective investment funds and common trust funds:
a. Domestic equity.............................................................................................................. RCFDB931 NR RCFDB932 NR M.3.a.

b. International/Global equity.............................................................................................. RCFDB933 NR RCFDB934 NR M.3.b.

c. Stock/Bond blend............................................................................................................ RCFDB935 NR RCFDB936 NR M.3.c.

d. Taxable bond.................................................................................................................. RCFDB937 NR RCFDB938 NR M.3.d.

e. Municipal bond............................................................................................................... RCFDB939 NR RCFDB940 NR M.3.e.

f. Short term investments/Money market............................................................................ RCFDB941 NR RCFDB942 NR M.3.f.

g. Specialty/Other............................................................................................................... RCFDB943 NR RCFDB944 NR M.3.g.

h. Total collective investment funds (sum of Memorandum items 3.a through 3.g)............ RCFDB945 0 RCFDB946 0 M.3.h.

(Column A) Gross Losses (Column B) Gross Losses (Column C) Recoveries

Dollar amounts in thousands Managed Accounts Non-Managed Accounts

4. Fiduciary settlements, surcharges, and other losses: M.4.

a. Personal trust and agency accounts..................................................... RIADB947 NR RIADB948 NR RIADB949 NR M.4.a.

b. Employee benefit and retirement-related trust and agency accounts..... RIADB950 NR RIADB951 NR RIADB952 NR M.4.b.

c. Investment management agency accounts........................................... RIADB953 NR RIADB954 NR RIADB955 NR M.4.c.

d. Other fiduciary accounts and related services...................................... RIADB956 NR RIADB957 NR RIADB958 NR M.4.d.

e. Total fiduciary settlements, surcharges, and other losses (sum of

Memorandum items 4.a through 4.d) (sum of columns A and B minus RIADB959 NR RIADB960 NR RIADB961 NR M.4.e.
column C must equal Schedule RC-T, item 24)........................................

Schedule RC-V - Variable Interest Entities(Form Type - 031)

(Column A) Securitization (Column B) Other VIEs
Dollar amounts in thousands Vehicles
1. Assets of consolidated variable interest entities (VIEs) that can be used only to settle
1.
obligations of the consolidated VIEs:
a. Cash and balances due from depository institutions...................................................... RCFDJ981 457,974 RCFDJF84 14,430 1.a.

b. Securities not held for trading......................................................................................... RCFDHU20 0 RCFDHU21 0 1.b.

c. Loans and leases held for investment, net of allowance, and held for sale.................... RCFDHU22 29,428,927 RCFDHU23 26,047 1.c.

d. Other real estate owned................................................................................................. RCFDK009 0 RCFDJF89 0 1.d.

e. Other assets................................................................................................................... RCFDJF91 605,951 RCFDJF90 2,754,621 1.e.

2. Liabilities of consolidated VIEs for which creditors do not have recourse to the general credit
2.
of the reporting bank:
a. Other borrowed money................................................................................................... RCFDJF92 18,043,310 RCFDJF85 0 2.a.

b. Other liabilities................................................................................................................ RCFDJF93 0 RCFDJF86 32,975 2.b.

3. All other assets of consolidated VIEs (not included in items 1.a. through 1.e above)............ RCFDK030 0 RCFDJF87 0 3.

4. All other liabilities of consolidated VIEs (not included in items 2.a through 2.b above)......... RCFDK033 0 RCFDJF88 0 4.

Dollar amounts in thousands

5. Total assets of asset-backed commercial paper (ABCP) conduit VIEs........................................................................ RCFDJF77 0 5.

6. Total liabilities of ABCP conduit VIEs........................................................................................................................... RCFDJF78 0 6.

 CAPITAL ONE, NATIONAL ASSOCIATION FFIEC 031
RSSD-ID 112837 Report Date 12/31/2023
Last Updated on 1/30/2024 76

Optional Narrative Statement Concerning the Amounts Reported in the Consolidated

Reports of Condition and Income(Form Type - 031)
Dollar amounts in thousands
1. Comments?................................................................................................................................................................. RCON6979 Yes 1.

2. Bank Management Statement..................................................................................................................................... TEXT6980 Click here for value 2.

(TEXT6980) RC-O Memorandum Item 2 Estimated Amount of Uninsured Deposits reported of $95B includes $31B in Intercompany
balances (Non-IDI subsidiary and Parent company or affiliate intercompany deposits). This aligns to Estimated Uninsured Deposits
of $64B reported on a consolidated company basis, adjusted to exclude intercompany balances, in the Capital One Financial Corporation
Form 10-K and Earnings Release Presentation for the quarterly period ended December 31, 2023.
 (;+,%,7

Board of Governors of the Federal Reserve System

Federal Deposit Insurance Corporation
Office of the Comptroller of the Currency
Federal Financial Institutions Examination Council

Consolidated Reports of Condition and Income for A Bank With

Domestic and Foreign Offices - FFIEC 031

Institution Name DISCOVER BANK

City GREENWOOD
State DE
Zip Code 19950
Call Report Report Date 12/31/2023
Report Type 031
RSSD-ID 30810
FDIC Certificate Number 5649
OCC Charter Number 0
ABA Routing Number 31100649
Last updated on 2/5/2024
Federal Financial Institutions Examination Council

Signature Page

Consolidated Reports of Condition and Income for A Bank

With Domestic and Foreign Offices - FFIEC 031

Report at the close of business December 31, 2023 (20231231)

(RCON 9999)
This report is required by law: 12 U.S.C. §324 (State member Unless the context indicates otherwise, the term “bank” in this
banks); 12 U.S.C. §1817 (State non member banks); 12 U.S.C. report form refers to both banks and savings associations.
§161 (National banks); and 12 U.S.C. §1464 (Savings
associations).

NOTE: Each bank’s board of directors and senior management schedules) for this report date have been prepared in conformance
are responsible for establishing and maintaining an effective with the instructions issued by the appropriate Federal regulatory
system of internal control, including controls over the Reports of authority and are true and correct to the best of my knowledge
Condition and Income. The Reports of Condition and Income are and belief.
to be prepared in accordance with federal regulatory authority
We, the undersigned directors (trustees), attest to the correctness
instructions.The Reports of Condition and Income must be signed
of the Reports of Condition and Income (including the supporting
by the Chief Financial Officer (CFO) of the reporting bank (or by
schedules) for this report date and declare that the Reports of
the individual performing an equivalent function) and attested to
Condition and Income have been examined by us and to the best
by not less than two directors (trustees) for state non member
of our knowledge and belief have been prepared in conformance
banks and three directors for state member banks, national banks,
with the instructions issued by the appropriate Federal regulatory
and savings associations.
authority and are true and correct.
I, the undersigned CFO (or equivalent) of the named bank, attest
that the Reports of Condition and Income (including the supporting

Signature of Chief Financial Officer (or Equivalent) Director (Trustee)

Date of Signature Director (Trustee)

Director (Trustee)

Submission of Reports FDIC Certificate Number 5649 (RSSD 9050)

Each bank must file its Reports of Condition and Income (Call To fulfill the signature and attestation requirement for the Reports
Report) data by either: of Condition and Income for this report date, attach your bank’s
completed signature page (or a photocopy or a computer
(a) Using computer software to prepare its Call Report and then
generated version of this page) to the hard-copy record of the data
submitting the report data directly to the FFIEC’s Central
file submitted to the CDR that your bank must place in its files.
Data Repository (CDR), an Internet-based system for
datacollection (https://cdr.ffiec.gov/cdr/), or The appearance of your bank’s hard-copy record of the submitted
(b) Completing its Call Report in paper form and arranging with data file need not match exactly the appearance of the FFIEC’s
a software vendor or another party to convert the data in to sample report forms, but should show at least the caption of each
the electronic format that can be processed by the CDR. Call Report item and the reported amount.
The software vendor or other party then must electronically
DISCOVER BANK
submit the bank’s data file to the CDR. Legal Title of Bank (RSSD 9017)

For technical assistance with submissions to the CDR, please GREENWOOD

contact the CDR Help Desk by telephone at (888) CDR-3111, by City (RSSD 9130)
fax at (703) 774-3946, or by e-mail at [email protected]. DE 19950
State Abbreviation (RSSD 9200) Zip Code (RSSD 9220)

The estimated average burden associated with this information collection is 50.4 hours per respondent and is estimated to vary from 20 to 775 hours per response, depending
on individual circumstances. Burden estimates include the time for reviewing instructions, gathering and maintaining data in the required form, and completing the information
collection, but exclude the time for compiling and maintaining business records in the normal course of a respondent’s activities. A Federal agency may not conduct or
sponsor, and an organization (or a person) is not required to respond to a collection of information, unless it displays a currently valid OMB control number. Comments
concerning the accuracy of this burden estimate and suggestions for reducing this burden should be directed to the Office of Information and Regulatory Affairs, Office of
Management and Budget, Washington, DC 20503, and to one of the following: Secretary, Board of Governors of the Federal Reserve System, 20th and C Streets, NW,
Washington, DC 20551; Legislative and Regulatory Analysis Division, Office of the Comptroller of the Currency, Washington, DC 20219; Assistant Executive Secretary,
Federal Deposit Insurance Corporation, Washington, DC 20429.
Consolidated Reports of Condition and Income for A Bank With Domestic and Foreign
Offices - FFIEC 031

Table of Contents
Schedule RC-C Part I - Loans and Leases(Form
Signature Page............................................................1 Type - 031)..........................................................23

Table of Contents.........................................................2 Schedule RC-C Part II - Loans to Small Businesses

and Small Farms(Form Type - 031).....................28
Emergency Contact Information..................................4
Schedule RC-D - Trading Assets and Liabilities(Form
Contact Information for the Reports of Condition and Type - 031)..........................................................29
Income...................................................................4
Schedule RC-E Part I - Deposits in Domestic
USA PATRIOT Act Section 314(a) Anti-Money Offices(Form Type - 031).....................................31
Laundering Contact Information............................5
Schedule RC-E Part II - Deposits in Foreign Offices
Bank Demographic Information(Form Type - including Edge and Agreement subsidiaries and
031).......................................................................6 IBFs(Form Type - 031).........................................33

Contact Information(Form Type - 031).........................6 Schedule RC-F - Other Assets(Form Type -

031).....................................................................34
Schedule RI - Income Statement(Form Type -
031).......................................................................8 Schedule RC-G - Other Liabilities(Form Type -
031).....................................................................35
Schedule RI-A - Changes in Bank Equity
Capital(Form Type - 031).....................................11 Schedule RC-H - Selected Balance Sheet Items for
Domestic Offices(Form Type - 031).....................36
Schedule RI-B Part I - Charge-offs and Recoveries
on Loans and Leases(Form Type - 031)..............12 Schedule RC-I - Assets and Liabilities of IBFs(Form
Type - 031)..........................................................37
Schedule RI-B Part II - Changes in Allowances for
Credit Losses(Form Type - 031)..........................13 Schedule RC-K - Quarterly Averages(Form Type -
031).....................................................................37
Schedule RI-C Part I - Disaggregated Data on the
Allowance for Loan and Lease Losses(Form Schedule RC-L - Derivatives and Off-Balance Sheet
Type - 031)..........................................................14 Items(Form Type - 031).......................................38

Schedule RI-C Part II - Disaggregated Data on the Schedule RC-M - Memoranda(Form Type -
Allowances for Credit Losses(Form Type - 031).....................................................................42
031).....................................................................15
Schedule RC-N - Past Due and Nonaccrual Loans
Schedule RI-D - Income from Foreign Offices(Form Leases and Other Assets(Form Type -
Type - 031)..........................................................15 031).....................................................................45

Schedule RI-E - Explanations (Form Type - Schedule RC-O - Other Data for Deposit Insurance
031).....................................................................16 and FICO Assessments(Form Type - 031)..........48

Schedule RC - Balance Sheet(Form Type - Schedule RC-P - 1-4 Family Residential Mortgage
031).....................................................................18 Banking Activities in Domestic Offices(Form
Type - 031)..........................................................52
Schedule RC-A - Cash and Balances Due From
Depository Institutions(Form Type - 031).............19

Schedule RC-B - Securities(Form Type - 031)...........20

For information or assistance, national banks, state nonmember banks, and savings associations should contact the FDIC’s Data
Collection and Analysis Section, 550 17th Street, NW, Washington, DC 20429, toll free on (800) 688-FDIC(3342), Monday through
Friday between 8:00 a.m. and 5:00 p.m., Eastern Time. State member banks should contact their Federal Reserve District Bank.
Board of Governors of the Federal Reserve System, Federal Deposit Insurance Corporation, Office of the Comptroller of the Currency
Legend: NR - Not Reported, CONF - Confidential
Schedule RC-Q - Assets and Liabilities Measured
at Fair Value on a Recurring Basis(Form Type
- 031)...................................................................52

Schedule RC-R Part I - Regulatory Capital

Components and Ratios(Form Type - 031).........57

Schedule RC-R Part II - Risk-Weighted Assets(Form

Type - 031)..........................................................61

Schedule RC-S - Servicing Securitization and Asset

Sale Activities(Form Type - 031)..........................71

Schedule RC-T - Fiduciary and Related

Services(Form Type - 031)..................................72

Schedule RC-V - Variable Interest Entities(Form

Type - 031)..........................................................74

Optional Narrative Statement Concerning the

Amounts Reported in the Consolidated Reports
of Condition and Income(Form Type - 031).........75

For information or assistance, national banks, state nonmember banks, and savings associations should contact the FDIC’s Data
Collection and Analysis Section, 550 17th Street, NW, Washington, DC 20429, toll free on (800) 688-FDIC(3342), Monday through
Friday between 8:00 a.m. and 5:00 p.m., Eastern Time. State member banks should contact their Federal Reserve District Bank.
Board of Governors of the Federal Reserve System, Federal Deposit Insurance Corporation, Office of the Comptroller of the Currency
Legend: NR - Not Reported, CONF - Confidential
Contact Information for the Reports of Condition and Income
To facilitate communication between the Agencies and the bank concerning the Reports of Condition
and Income, please provide contact information for (1) the Chief Financial Officer (or equivalent) of
the bank signing the reports for this quarter, and (2) the person at the bank—other than the Chief
Financial Officer (or equivalent)—to whom questions about the reports should be directed. If the Chief
Financial Officer (or equivalent) is the primary contact for questions about the reports, please provide
contact information for another person at the bank who will serve as a secondary contact for
communications between the Agencies and the bank concerning the Reports of Condition and Income.
Enter “none” for the contact’s e-mail address or fax number if not available. Contact information for
the Reports of Condition and Income is for the confidential use of the Agencies and will not be released
to the public.

Chief Financial Officer (or Equivalent) Signing Other Person to Whom Questions about the
the Reports Reports Should be Directed
CONF CONF
Name (TEXT C490) Name (TEXT C495)

CONF CONF
Title (TEXT C491) Title (TEXT C496)

CONF CONF
E-mail Address (TEXT C492) E-mail Address (TEXT 4086)

CONF CONF
Area Code / Phone Number / Extension (TEXT C493) Area Code / Phone Number / Extension (TEXT 8902)

CONF CONF
Area Code / FAX Number (TEXT C494) Area Code / FAX Number (TEXT 9116)

Emergency Contact Information

This information is being requested so the Agencies can distribute critical, time-sensitive information
to emergency contacts at banks. Please provide primary contact information for a senior official of
the bank who has decision-making authority. Also provide information for a secondary contact if
available. Enter “none” for the contact’s e-mail address or fax number if not available. Emergency
contact information is for the confidential use of the Agencies and will not be released to the public.

Primary Contact Secondary Contact

CONF CONF
Name (TEXT C366) Name (TEXT C371)

CONF CONF
Title (TEXT C367) Title (TEXT C372)

CONF CONF
E-mail Address (TEXT C368) E-mail Address (TEXT C373)

CONF CONF
Area Code / Phone Number / Extension (TEXT C369) Area Code / Phone Number / Extension (TEXT C374)

CONF CONF
Area Code / FAX Number (TEXT C370) Area Code / FAX Number (TEXT C375)
USA PATRIOT Act Section 314(a) Anti-Money Laundering
Contact Information

This information is being requested to identify points-of-contact who are in charge of your bank’s
USA PATRIOT Act Section 314(a) information requests. Bank personnel listed could be contacted
by law enforcement officers or the Financial Crimes Enforcement Network (FinCEN) for additional
information related to specific Section 314(a) search requests or other anti-terrorist financing and
anti- money laundering matters. Communications sent by FinCEN to the bank for purposes other
than Section 314(a) notifications will state the intended purpose and should be directed to the
appropriate bank personnel for review. Any disclosure of customer records to law enforcement officers
or FinCEN must be done in compliance with applicable law, including the Right to Financial Privacy
Act (12 U.S.C. 3401 et seq.).

Please provide information for a primary and secondary contact. Information for a third and fourth
contact may be provided at the bank’s option. Enter “none” for the contact’s e-mail address if not
available. This contact information is for the confidential use of the Agencies, FinCEN, and law
enforcement officers and will not be released to the public.

Primary Contact Third Contact

CONF CONF
Name (TEXT C437) Name (TEXT C870)

CONF CONF
Title (TEXT C438) Title (TEXT C871)

CONF CONF
E-mail Address (TEXT C439) E-mail Address (TEXT C368)

CONF CONF
Area Code / Phone Number / Extension (TEXT C440) Area Code / Phone Number / Extension (TEXT C873)

Secondary Contact Fourth Contact

CONF CONF
Name (TEXT C442) Name (TEXT C875)

CONF CONF
Title (TEXT C443) Title (TEXT C876)

CONF CONF
E-mail Address (TEXT C444) E-mail Address (TEXT C877)

CONF CONF
Area Code / Phone Number / Extension (TEXT 8902) Area Code / Phone Number / Extension (TEXT C878)
 DISCOVER BANK FFIEC 031
RSSD-ID 30810 Report Date 12/31/2023
Last Updated on 2/5/2024 6

Bank Demographic Information(Form Type - 031)

Dollar amounts in thousands
1. Reporting date............................................................................................................................................................. RCON9999 20231231 1.

2. FDIC certificate number............................................................................................................................................... RSSD9050 5649 2.

3. Legal title of bank........................................................................................................................................................ RSSD9017 Click here for value 3.

4. City.............................................................................................................................................................................. RSSD9130 Newark 4.

5. State abbreviation........................................................................................................................................................ RSSD9200 DE 5.

6. Zip code....................................................................................................................................................................... RSSD9220 19713 6.

7. Legal Entity Identifier (LEI) (Report only if your institution already has an LEI.)......................................................... RCON9224 Click here for value 7.

(RCON9224) X05BVSK68TQ7YTOSNR22

(RSSD9017) Discover Bank

Contact Information(Form Type - 031)

Dollar amounts in thousands
1. Contact Information for the Reports of Condition and Income 1.

a. Chief Financial Officer (or Equivalent) Signing the Reports 1.a.

1. Name............................................................................................................................................................ TEXTC490 CONF 1.a.1.

2. Title............................................................................................................................................................... TEXTC491 CONF 1.a.2.

3. E-mail Address.............................................................................................................................................. TEXTC492 CONF 1.a.3.

4. Telephone...................................................................................................................................................... TEXTC493 CONF 1.a.4.

5. FAX............................................................................................................................................................... TEXTC494 CONF 1.a.5.

b. Other Person to Whom Questions about the Reports Should be Directed 1.b.

1. Name............................................................................................................................................................ TEXTC495 CONF 1.b.1.

2. Title............................................................................................................................................................... TEXTC496 CONF 1.b.2.

3. E-mail Address.............................................................................................................................................. TEXT4086 CONF 1.b.3.

4. Telephone...................................................................................................................................................... TEXT8902 CONF 1.b.4.

5. FAX............................................................................................................................................................... TEXT9116 CONF 1.b.5.

2. Person to whom questions about Schedule RC-T - Fiduciary and Related Services should be directed 2.

a. Name and Title..................................................................................................................................................... TEXTB962 CONF 2.a.

b. E-mail Address..................................................................................................................................................... TEXTB926 CONF 2.b.

c. Telephone............................................................................................................................................................. TEXTB963 CONF 2.c.

d. FAX....................................................................................................................................................................... TEXTB964 CONF 2.d.

3. Emergency Contact Information 3.

a. Primary Contact 3.a.

1. Name............................................................................................................................................................ TEXTC366 CONF 3.a.1.

2. Title............................................................................................................................................................... TEXTC367 CONF 3.a.2.

3. E-mail Address.............................................................................................................................................. TEXTC368 CONF 3.a.3.

4. Telephone...................................................................................................................................................... TEXTC369 CONF 3.a.4.

5. FAX............................................................................................................................................................... TEXTC370 CONF 3.a.5.

b. Secondary Contact 3.b.

1. Name............................................................................................................................................................ TEXTC371 CONF 3.b.1.

2. Title............................................................................................................................................................... TEXTC372 CONF 3.b.2.

3. E-mail Address.............................................................................................................................................. TEXTC373 CONF 3.b.3.

4. Telephone...................................................................................................................................................... TEXTC374 CONF 3.b.4.

5. FAX............................................................................................................................................................... TEXTC375 CONF 3.b.5.

4. USA PATRIOT Act Section 314(a) Anti-Money Laundering Contact Information 4.

a. Primary Contact 4.a.

 DISCOVER BANK FFIEC 031
RSSD-ID 30810 Report Date 12/31/2023
Last Updated on 2/5/2024 7

Dollar amounts in thousands

1. Name............................................................................................................................................................ TEXTC437 CONF 4.a.1.

2. Title............................................................................................................................................................... TEXTC438 CONF 4.a.2.

3. E-mail Address.............................................................................................................................................. TEXTC439 CONF 4.a.3.

4. Telephone...................................................................................................................................................... TEXTC440 CONF 4.a.4.

b. Secondary Contact 4.b.

1. Name............................................................................................................................................................ TEXTC442 CONF 4.b.1.

2. Title............................................................................................................................................................... TEXTC443 CONF 4.b.2.

3. E-mail Address.............................................................................................................................................. TEXTC444 CONF 4.b.3.

4. Telephone...................................................................................................................................................... TEXTC445 CONF 4.b.4.

c. Third Contact 4.c.

1. Name............................................................................................................................................................ TEXTC870 CONF 4.c.1.

2. Title............................................................................................................................................................... TEXTC871 CONF 4.c.2.

3. E-mail Address.............................................................................................................................................. TEXTC872 CONF 4.c.3.

4. Telephone...................................................................................................................................................... TEXTC873 CONF 4.c.4.

d. Fourth Contact 4.d.

1. Name............................................................................................................................................................ TEXTC875 CONF 4.d.1.

2. Title............................................................................................................................................................... TEXTC876 CONF 4.d.2.

3. E-mail Address.............................................................................................................................................. TEXTC877 CONF 4.d.3.

4. Telephone...................................................................................................................................................... TEXTC878 CONF 4.d.4.

5. Chief Executive Officer Contact Information 5.

a. Chief Executive Officer 5.a.

1. Name............................................................................................................................................................ TEXTFT42 CONF 5.a.1.

2. E-mail Address.............................................................................................................................................. TEXTFT44 CONF 5.a.2.

3. Telephone...................................................................................................................................................... TEXTFT43 CONF 5.a.3.

4. FAX............................................................................................................................................................... TEXTFT45 CONF 5.a.4.

 DISCOVER BANK FFIEC 031
RSSD-ID 30810 Report Date 12/31/2023
Last Updated on 2/5/2024 8

Schedule RI - Income Statement(Form Type - 031)

All Report of Income schedules are to be reported on a calendar year-to-date basis in thousands of dollars.

Dollar amounts in thousands

1. Interest income: 1.

a. Interest and fee income on loans: 1.a.

1. In domestic offices: 1.a.1.

a. Loans secured by real estate: 1.a.1.a.

1. Loans secured by 1-4 family residential properties........................................................................ RIAD4435 324,622 1.a.1.a.1.

2. All other loans secured by real estate............................................................................................ RIAD4436 0 1.a.1.a.2.

b. Loans to finance agricultural production and other loans to farmers..................................................... RIAD4024 0 1.a.1.b.

c. Commercial and industrial loans............................................................................................................ RIAD4012 12,233 1.a.1.c.

d. Loans to individuals for household, family, and other personal expenditures: 1.a.1.d.

1. Credit cards.................................................................................................................................... RIADB485 15,040,057 1.a.1.d.1.

2. Other (includes revolving credit plans other than credit cards, automobile loans, and other consumer
RIADB486 2,195,061 1.a.1.d.2.
loans).................................................................................................................................................
e. Loans to foreign governments and official institutions........................................................................... RIAD4056 0 1.a.1.e.

f. All other loans in domestic offices.......................................................................................................... RIADB487 1,729 1.a.1.f.

2. In foreign offices, Edge and Agreement subsidiaries, and IBFs................................................................... RIAD4059 NR 1.a.2.

3. Total interest and fee income on loans (sum of items 1.a.(1)(a) through 1.a.(2)).......................................... RIAD4010 17,573,702 1.a.3.

b. Income from lease financing receivables............................................................................................................. RIAD4065 0 1.b.

1 RIAD4115 387,596 1.c.
c. Interest income on balances due from depository institutions ............................................................................
d. Interest and dividend income on securities: 1.d.

1. U.S. Treasury securities and U.S. Government agency obligations (excluding mortgage-backed securities). RIADB488 423,533 1.d.1.

2. Mortgage-backed securities.......................................................................................................................... RIADB489 25,581 1.d.2.

3. All other securities (includes securities issued by states and political subdivisions in the U.S.)................... RIAD4060 9,645 1.d.3.

e. Interest income from trading assets..................................................................................................................... RIAD4069 0 1.e.

f. Interest income on federal funds sold and securities purchased under agreements to resell............................... RIAD4020 0 1.f.

g. Other interest income........................................................................................................................................... RIAD4518 12,957 1.g.

h. Total interest income (sum of items 1.a.(3) through 1.g)...................................................................................... RIAD4107 18,433,014 1.h.

2. Interest expense: 2.

a. Interest on deposits: 2.a.

1. Interest on deposits in domestic offices: 2.a.1.

a.Transaction accounts (interest-bearing demand deposits, NOW accounts, ATS accounts, and telephone
RIAD4508 18,796 2.a.1.a.
and preauthorized transfer accounts)........................................................................................................
b. Nontransaction accounts: 2.a.1.b.

1. Savings deposits (includes MMDAs).............................................................................................. RIAD0093 2,449,037 2.a.1.b.1.

2. Time deposits of $250,000 or less.................................................................................................. RIADHK03 1,357,120 2.a.1.b.2.

3. Time deposits of more than $250,000............................................................................................ RIADHK04 91,539 2.a.1.b.3.

2. Interest on deposits in foreign offices, Edge and Agreement subsidiaries, and IBFs................................... RIAD4172 NR 2.a.2.

b. Expense of federal funds purchased and securities sold under agreements to repurchase................................ RIAD4180 48 2.b.

c. Interest on trading liabilities and other borrowed money...................................................................................... RIAD4185 643,250 2.c.

d. Interest on subordinated notes and debentures................................................................................................... RIAD4200 108,035 2.d.

e. Total interest expense (sum of items 2.a through 2.d).......................................................................................... RIAD4073 4,667,825 2.e.

3. Net interest income (item 1.h minus 2.e)..................................................................................................................... RIAD4074 13,765,189 3.

1 RIADJJ33 6,018,441 4.
4. Provision for loan and lease losses ............................................................................................................................
5. Noninterest income: 5.
2 RIAD4070 0 5.a.
a. Income from fiduciary activities ..........................................................................................................................
b. Service charges on deposit accounts in domestic offices.................................................................................... RIAD4080 2,278 5.b.

1. Includes interest income on time certificates of deposit not held for trading.
1. Institutions that have adopted ASU 2016-13 should report in item 4, the provisions for credit losses for all financial assets and off-balance-sheet credit exposures that fall within the scope of
the standard.
2. For banks required to complete Schedule RC-T, items 14 through 22, income from fiduciary activities reported in Schedule RI, item 5.a, must equal the amount reported in Schedule RC-T, item
22.
 DISCOVER BANK FFIEC 031
RSSD-ID 30810 Report Date 12/31/2023
Last Updated on 2/5/2024 9

Dollar amounts in thousands

3 RIADA220 0 5.c.
c. Trading revenue ...................................................................................................................................................
d. Income from securities-related and insurance activities: 5.d.

1. Fees and commissions from securities brokerage........................................................................................ RIADC886 0 5.d.1.

2. Investment banking, advisory, and underwriting fees and commissions....................................................... RIADC888 0 5.d.2.

3. Fees and commissions from annuity sales................................................................................................... RIADC887 0 5.d.3.

4. Underwriting income from insurance and reinsurance activities................................................................... RIADC386 0 5.d.4.

5. Income from other insurance activities......................................................................................................... RIADC387 72,731 5.d.5.

e. Venture capital revenue........................................................................................................................................ RIADB491 0 5.e.

f. Net servicing fees.................................................................................................................................................. RIADB492 0 5.f.

g. Net securitization income..................................................................................................................................... RIADB493 0 5.g.

h. Not applicable 5.h.

i. Net gains (losses) on sales of loans and leases................................................................................................... RIAD5416 0 5.i.

j. Net gains (losses) on sales of other real estate owned......................................................................................... RIAD5415 1 5.j.
4 RIADB496 0 5.k.
k. Net gains (losses) on sales of other assets ........................................................................................................
* RIADB497 976,108 5.l.
l. Other noninterest income .....................................................................................................................................
m. Total noninterest income (sum of items 5.a through 5.l)...................................................................................... RIAD4079 1,051,118 5.m.

6. Not available 6.

a. Realized gains (losses) on held-to-maturity securities......................................................................................... RIAD3521 0 6.a.

b. Realized gains (losses) on available-for-sale debt securities............................................................................... RIAD3196 0 6.b.

7. Noninterest expense: 7.

a. Salaries and employee benefits........................................................................................................................... RIAD4135 1,433,941 7.a.

b. Expenses of premises and fixed assets (net of rental income) (excluding salaries and employee benefits and
RIAD4217 40,924 7.b.
mortgage interest)....................................................................................................................................................
c. Not available 7.c.

1. Goodwill impairment losses.......................................................................................................................... RIADC216 0 7.c.1.

2. Amortization expense and impairment losses for other intangible assets.................................................... RIADC232 0 7.c.2.
* RIAD4092 3,856,193 7.d.
d. Other noninterest expense ..................................................................................................................................
e. Total noninterest expense (sum of items 7.a through 7.d).................................................................................... RIAD4093 5,331,058 7.e.

8. Not available 8.

a. Income (loss) before change in net unrealized holding gains (losses) on equity securities not held for trading,
RIADHT69 3,466,808 8.a.
applicable income taxes, and discontinued operations (item 3 plus or minus items 4, 5.m, 6.a, 6.b, and 7.e)........
5 RIADHT70 0 8.b.
b. Change in net unrealized holding gains (losses) on equity securities not held for trading .................................
c. Income (loss) before applicable income taxes and discontinued operations (sum of items 8.a and 8.b)............. RIAD4301 3,466,808 8.c.

9. Applicable income taxes (on item 8.c)......................................................................................................................... RIAD4302 817,086 9.

10. Income (loss) before discontinued operations (item 8.c minus item 9)...................................................................... RIAD4300 2,649,722 10.
* RIADFT28 0 11.
11. Discontinued operations, net of applicable income taxes (Describe on Schedule RI-E - Explanations) ..................
12. Net income (loss) attributable to bank and noncontrolling (minority) interests (sum of items 10 and 11)................. RIADG104 2,649,722 12.

13. LESS: Net income (loss) attributable to noncontrolling (minority) interests (if net income, report as a positive value;
RIADG103 0 13.
if net loss, report as a negative value).............................................................................................................................
14. Net income (loss) attributable to bank (item 12 minus item 13)................................................................................. RIAD4340 2,649,722 14.

1. Interest expense incurred to carry tax-exempt securities, loans, and leases acquired after August 7, 1986, that is
RIAD4513 0 M.1.
not deductible for federal income tax purposes...............................................................................................................
Memorandum item 2 is to be completed by banks with $1 billion or more in total assets
2. Income from the sale and servicing of mutual funds and annuities in domestic offices (included in Schedule RI, item RIAD8431 0 M.2.
8).....................................................................................................................................................................................
3. Income on tax-exempt loans and leases to states and political subdivisions in the U.S. (included in Schedule RI,
RIAD4313 0 M.3.
items 1.a and 1.b)............................................................................................................................................................
4. Income on tax-exempt securities issued by states and political subdivisions in the U.S. (included in Schedule RI,
RIAD4507 0 M.4.
item 1.d.(3)).....................................................................................................................................................................
5. Number of full-time equivalent employees at end of current period (round to nearest whole number)....................... RIAD4150 13916 M.5.

6. Not applicable M.6.

3. For banks required to complete Schedule RI, Memorandum item 8, trading revenue reported in Schedule RI, item 5.c, must equal the sum of Memorandum items 8.a through 8.e.
4. Exclude net gains (losses) on sales of trading assets and held-to-maturity and available-for-sale debt securities.
*. Describe on Schedule RI-E—Explanations.
5. Item 8.b is to be completed by all institutions. See the instructions this item and the Glossary entry for "Securities Activities" for further detail on accounting for investments in equity securities.
 DISCOVER BANK FFIEC 031
RSSD-ID 30810 Report Date 12/31/2023
Last Updated on 2/5/2024 10

Dollar amounts in thousands

7. If the reporting institution has applied pushdown accounting this calendar year, report the date of the institution's
2 RIAD9106 00000000 M.7.
acquisition (see instructions) .........................................................................................................................................
8. Trading revenue (from cash instruments and derivative instruments) (sum of Memorandum items 8.a through 8.e
M.8.
must equal Schedule RI, item 5.c):
Memorandum items 8.a through 8.e are to be completed by banks that reported average trading assets (Schedule RC-K, item 7) of
$2 million or more for any quarter of the preceding calendar year. RIAD8757 NR M.8.a.
a. Interest rate exposures.........................................................................................................................................
b. Foreign exchange exposures............................................................................................................................... RIAD8758 NR M.8.b.

c. Equity security and index exposures.................................................................................................................... RIAD8759 NR M.8.c.

d. Commodity and other exposures......................................................................................................................... RIAD8760 NR M.8.d.

e. Credit exposures.................................................................................................................................................. RIADF186 NR M.8.e.

Memorandum items 8.f through 8.h are to be completed by banks with $100 billion or more in total assets that are required to complete
Schedule RI, Memorandum items 8.a through 8.e, above.
M.8.f.
f. Impact on trading revenue of changes in the creditworthiness of the bank's derivatives counterparties on the
bank's derivative assets (year-to-date changes) (included in Memorandum items 8.a through 8.e above):
1. Gross credit valuation adjustment (CVA)...................................................................................................... RIADFT36 NR M.8.f.1.

2. CVA hedge.................................................................................................................................................... RIADFT37 NR M.8.f.2.

g. Impact on trading revenue of changes in the creditworthiness of the bank on the bank's derivative liabilities
M.8.g.
(year-to-date changes) (included in Memorandum items 8.a through 8.e above):
1. Gross debit valuation adjustment (DVA)....................................................................................................... RIADFT38 NR M.8.g.1.

2. DVA hedge.................................................................................................................................................... RIADFT39 NR M.8.g.2.

h. Gross trading revenue, before including positive or negative net CVA and net DVA............................................ RIADFT40 NR M.8.h.

9. Net gains (losses) recognized in earnings on credit derivatives that economically hedge credit exposures held outside
M.9.
the trading account:
a. Net gains (losses) on credit derivatives held for trading....................................................................................... RIADC889 0 M.9.a.

b. Net gains (losses) on credit derivatives held for purposes other than trading...................................................... RIADC890 0 M.9.b.

10. Credit losses on derivatives (see instructions).......................................................................................................... RIADA251 0 M.10.

11. Does the reporting bank have a Subchapter S election in effect for federal income tax purposes for the current tax
RIADA530 No M.11.
year?...............................................................................................................................................................................
12. Not applicable M.12.

Memorandum item 13 is to be completed by banks that have elected to account for assets and liabilities under a fair value option.
13. Net gains (losses) recognized in earnings on assets and liabilities that are reported at fair value under a fair value M.13.
option:
a. Net gains (losses) on assets................................................................................................................................ RIADF551 NR M.13.a.

1. Estimated net gains (losses) on loans attributable to changes in instrument-specific credit risk.................. RIADF552 NR M.13.a.1.

b. Net gains (losses) on liabilities............................................................................................................................. RIADF553 NR M.13.b.

1. Estimated net gains (losses) on liabilities attributable to changes in instrument-specific credit risk............. RIADF554 NR M.13.b.1.
2 RIADJ321 NR M.14.
14. Other-than-temporary impairment losses on held-to-maturity and available-for-sale debt securities ......................
Memorandum item 15 is to be completed by institutions with $1 billion or more in total assets that answered "Yes" to Schedule RC-E, Part
I, Memorandum item 5.
M.15.
15. Components of service charges on deposit accounts in domestic offices (sum of Memorandum items 15.a through
15.d must equal Schedule RI, item 5.b):
a. Consumer overdraft-related service charges levied on those transaction account and nontransaction savings
RIADH032 0 M.15.a.
account deposit products intended primarily for individuals for personal, household, or family use........................
b. Consumer account periodic maintenance charges levied on those transaction account and nontransaction
RIADH033 0 M.15.b.
savings account deposit products intended primarily for individuals for personal, household, or family use...........
c. Consumer customer automated teller machine (ATM) fees levied on those transaction account and nontransaction
RIADH034 0 M.15.c.
savings account deposit products intended primarily for individuals for personal, household, or family use...........
d. All other service charges on deposit accounts..................................................................................................... RIADH035 2,278 M.15.d.

2. Report the date in YYYYMMDD format. For example, a bank acquired on March 1, 2023, would report 20230301.
2. Memorandum item 14 is to be completed only by institutions that have not adopted ASU 2016-13.
 DISCOVER BANK FFIEC 031
RSSD-ID 30810 Report Date 12/31/2023
Last Updated on 2/5/2024 11

Schedule RI-A - Changes in Bank Equity Capital(Form Type - 031)

Dollar amounts in thousands
1. Total bank equity capital most recently reported for the December 31, 2022, Reports of Condition and Income (i.e.,
RIAD3217 11,684,875 1.
after adjustments from amended Reports of Income).....................................................................................................
* RIADB507 51,577 2.
2. Cumulative effect of changes in accounting principles and corrections of material accounting errors .......................
3. Balance end of previous calendar year as restated (sum of items 1 and 2)................................................................ RIADB508 11,736,452 3.

4. Net income (loss) attributable to bank (must equal Schedule RI, item 14).................................................................. RIAD4340 2,649,722 4.

5. Sale, conversion, acquisition, or retirement of capital stock, net (excluding treasury stock transactions)................... RIADB509 0 5.

6. Treasury stock transactions, net.................................................................................................................................. RIADB510 0 6.

7. Changes incident to business combinations, net......................................................................................................... RIAD4356 0 7.

8. LESS: Cash dividends declared on preferred stock.................................................................................................... RIAD4470 0 8.

9. LESS: Cash dividends declared on common stock..................................................................................................... RIAD4460 1,700,000 9.

1 RIADB511 104,925 10.
10. Other comprehensive income ..................................................................................................................................
11. Other transactions with stockholders (including a parent holding company) (not included in items 5, 6, 8, or 9
* RIAD4415 0 11.
above) ............................................................................................................................................................................
12. Total bank equity capital end of current period (sum of items 3 through 11) (must equal Schedule RC, item 27.a).. RIAD3210 12,791,099 12.

*. Describe on Schedule RI-E—Explanations

1. Includes, but is not limited to, changes in net unrealized holding gains (losses) on available-for-sale debt securities, changes in accumulated net gains (losses) on cash flow hedges, foreign
currency translation adjustments, and pension and other postretirement plan-related changes other than net periodic benefit cost.
 DISCOVER BANK FFIEC 031
RSSD-ID 30810 Report Date 12/31/2023
Last Updated on 2/5/2024 12

Schedule RI-B Part I - Charge-offs and Recoveries on Loans and Leases(Form Type -
031)
Part I includes charge-offs and recoveries through the allocated transfer risk reserve.

(Column A) Charge-offs (Column B) Recoveries Calendar

Dollar amounts in thousands Calendar year-to-date year-to-date

1. Loans secured by real estate: 1.

a. Construction, land development, and other land loans in domestic offices: 1.a.

1. 1-4 family residential construction loans................................................................. RIADC891 0 RIADC892 0 1.a.1.

2. Other construction loans and all land development and other land loans............... RIADC893 0 RIADC894 0 1.a.2.

b. Secured by farmland in domestic offices........................................................................ RIAD3584 0 RIAD3585 0 1.b.

c. Secured by 1-4 family residential properties in domestic offices: 1.c.

1. Revolving, open-end loans secured by 1-4 family residential properties and extended
RIAD5411 0 RIAD5412 0 1.c.1.
under lines of credit.....................................................................................................
2. Closed-end loans secured by 1-4 family residential properties: 1.c.2.

a. Secured by first liens........................................................................................ RIADC234 38 RIADC217 43 1.c.2.a.

b. Secured by junior liens..................................................................................... RIADC235 1,245 RIADC218 275 1.c.2.b.

d. Secured by multifamily (5 or more) residential properties in domestic offices................ RIAD3588 0 RIAD3589 0 1.d.

e. Secured by nonfarm nonresidential properties in domestic offices: 1.e.

1. Loans secured by owner-occupied nonfarm nonresidential properties................... RIADC895 0 RIADC896 0 1.e.1.

2. Loans secured by other nonfarm nonresidential properties.................................... RIADC897 0 RIADC898 0 1.e.2.

f. In foreign offices.............................................................................................................. RIADB512 NR RIADB513 NR 1.f.

2. Not applicable 2.

3. Loans to finance agricultural production and other loans to farmers..................................... RIAD4655 0 RIAD4665 0 3.

4. Commercial and industrial loans: 4.

a. To U.S. addressees (domicile)........................................................................................ RIAD4645 4,410 RIAD4617 448 4.a.

b. To non-U.S. addressees (domicile)................................................................................. RIAD4646 0 RIAD4618 0 4.b.

5. Loans to individuals for household, family, and other personal expenditures: 5.

a. Credit cards.................................................................................................................... RIADB514 4,476,698 RIADB515 806,884 5.a.

b. Automobile loans............................................................................................................ RIADK129 0 RIADK133 0 5.b.

c. Other (includes revolving credit plans other than credit cards and other consumer
RIADK205 445,723 RIADK206 78,023 5.c.
loans).................................................................................................................................
6. Loans to foreign governments and official institutions........................................................... RIAD4643 0 RIAD4627 0 6.

7. All other loans........................................................................................................................ RIAD4644 0 RIAD4628 0 7.

8. Lease financing receivables: 8.

a. Leases to individuals for household, family, and other personal expenditures............... RIADF185 0 RIADF187 0 8.a.

b. All other leases............................................................................................................... RIADC880 0 RIADF188 0 8.b.

9. Total (sum of items 1 through 8)............................................................................................ RIAD4635 4,928,114 RIAD4605 885,673 9.

1. Loans to finance commercial real estate, construction, and land development activities (not
RIAD5409 0 RIAD5410 0 M.1.
secured by real estate) included in Schedule RI-B, part I, items 4 and 7, above......................
2. Loans secured by real estate to non-U.S. addressees (domicile) (included in Schedule RI-B,
RIAD4652 0 RIAD4662 0 M.2.
part I, item 1, above)..................................................................................................................
3. Not applicable M.3.

Dollar amounts in thousands

Memorandum item 4 is to be completed by banks that (1) together with affiliated institutions, have outstanding credit card receivables (as
defined in the instructions) that exceed $500 million as of the report date, or (2) are credit card specialty banks as defined for Uniform
Bank Performance Report purposes. RIADC388 930,289 M.4.
4. Uncollectible retail credit card fees and finance charges reversed against income (i.e., not included in charge-offs
2
against the allowance for loan and lease losses) ..........................................................................................................

2. Institutions that have adopted ASU 2016-13 should report in Memorandum item 4 uncollectible retail credit card fees and finance charges reversed against income (i.e. not included in charge-offs
against the allowance for credit losses on loans and leases).
 DISCOVER BANK FFIEC 031
RSSD-ID 30810 Report Date 12/31/2023
Last Updated on 2/5/2024 13

Schedule RI-B Part II - Changes in Allowances for Credit Losses(Form Type - 031)
(Column A) Loans and (Column B) (Column C)
Leases Held for Held-to-maturity Debt Available-for-sale Debt
Dollar amounts in thousands Investment Securities Securities
1. Balance most recently reported for the December 31, 2022, Reports of
Condition and Income (i.e., after adjustments from amended Reports of RIADB522 7,374,000 RIADJH88 0 RIADJH94 0 1.
Income).............................................................................................................
2. Recoveries (column A must equal Part I, item 9, column B, above)............. RIAD4605 885,673 RIADJH89 0 RIADJH95 0 2.

3. LESS: Charge-offs (column A must equal Part I, item 9, column A, above

RIADC079 4,928,114 RIADJH92 0 RIADJH98 0 3.
less Schedule RI-B, Part II, item 4, column A).................................................
3 RIAD5523 0 RIADJJ00 0 RIADJJ01 0 4.
4. LESS: Write-downs arising from transfers of financial assets .....................
4 RIAD4230 6,019,441 RIADJH90 0 RIADJH96 0 5.
5. Provisions for credit losses .........................................................................
* RIADC233 -68,000 RIADJH91 0 RIADJH97 0 6.
6. Adjustments* (see instructions for this schedule) ........................................
7. Balance end of current period (sum of items 1, 2, 5, and 6, less items 3 and
RIAD3123 9,283,000 RIADJH93 0 RIADJH99 0 7.
4) (column A must equal Schedule RC, item 4.c).............................................

Dollar amounts in thousands

1. Allocated transfer risk reserve included in Schedule RI-B, Part II, item 7, column A, above....................................... RIADC435 NR M.1.

Memorandum items 2 and 3 are to be completed by banks that (1) together with affiliated institutions, have outstanding credit card
receivables (as defined in the instructions) that exceed $500 million as of the report date, or (2) are credit card specialty banks as defined
for Uniform Bank Performance Report purposes. RIADC389 0 M.2.

2. Separate valuation allowance for uncollectible retail credit card fees and finance charges........................................
1 RIADC390 1,242,000 M.3.
3. Amount of allowance for loan and lease losses attributable to retail credit card fees and finance charges ...............
4. Amount of allowance for post-acquisition credit losses on purchased credit-impaired loans accounted for in accordance
with FASB ASC 310-30 (former AICPA Statement of Position 03-3) (included in Schedule RI-B, Part II, item 7, column RIADC781 NR M.4.
2
A, above) .......................................................................................................................................................................
3 RIADJJ02 0 M.5.
5. Provisions for credit losses on other financial assets measured at amortized cost (not included in item 5, above) ...
3 RCFDJJ03 0 M.6.
6. Allowance for credit losses on other financial assets measured at amortized cost (not included in item 7, above) ...
3 RIADMG93 -1,000 M.7.
7. Provisions for credit losses on off-balance-sheet credit exposures ...........................................................................
8. Estimated amount of expected recoveries of amounts previously written off included within the allowance for credit
losses on loans and leases held for investment (included in item 7, column A, "Balance end of current period," RIADMG94 2,052,547 M.8.
3
above) ............................................................................................................................................................................

3. Institutions that have not yet adopted ASU 2016-13 should report write-downs arising from transfers of loans to a held-for-sale account in item 4, column A.
4. Institutions that have not yet adopted ASU 2016-13 should report the provision for loan and lease losses in item 5, column A and the amount reported must equal Schedule RI, item 4.
*. Describe on Schedule RI-E - Explanations.
1. Institutions that have adopted ASU 2016-13 should report in Memorandum item 3 the amount of allowance for credit losses on loans and leases attributable to retail credit card fees and finance
charges.
2. Memorandum item 4 is to be completed only by institutions that have not yet adopted ASU 2016-13.
3. Memorandum items 5, 6, 7, and 8 are to be completed only by institutions that have adopted ASU 2016-13.
3. Memorandum items 5, 6, 7, and 8 are to be completed only by institutions that have adopted ASU 2016-13.
3. Memorandum items 5, 6, 7, and 8 are to be completed only by institutions that have adopted ASU 2016-13.
3. Memorandum items 5, 6, 7, and 8 are to be completed only by institutions that have adopted ASU 2016-13.
 DISCOVER BANK FFIEC 031
RSSD-ID 30810 Report Date 12/31/2023
Last Updated on 2/5/2024 14

Schedule RI-C Part I - Disaggregated Data on the Allowance for Loan and Lease Losses(Form Type - 031)
Schedule RI-C is to be completed by institutions with $1 billion or more in total assets.

(Column A) (Column B) (Column C) (Column D) (Column E) (Column F)

Recorded Allowance Balance: Recorded Allowance Balance: Recorded Allowance Balance:
Investment: Individually Investment: Collectively Investment: Purchased
Individually Evaluated for Collectively Evaluated for Purchased Credit-Impaired
Evaluated for Impairment and Evaluated for Impairment (ASC Credit-Impaired Loans (ASC 310-30)
Impairment and Determined to be Impairment (ASC 450-20) Loans (ASC 310-30)
Determined to be Impaired (ASC 450-20)
Impaired (ASC 310-10-35)
Dollar amounts in thousands 310-10-35)

1. Real estate loans: 1.

RCFDM708 RCFDM709 RCFDM710 RCFDM711 RCFDM712 RCFDM713

1.a.
a. Construction loans............................................................................................. NR NR NR NR NR NR
RCFDM714 RCFDM715 RCFDM716 RCFDM717 RCFDM719 RCFDM720
1.b.
b. Commercial real estate loans............................................................................. NR NR NR NR NR NR
RCFDM721 RCFDM722 RCFDM723 RCFDM724 RCFDM725 RCFDM726
1.c.
c. Residential real estate loans.............................................................................. NR NR NR NR NR NR
RCFDM727 RCFDM728 RCFDM729 RCFDM730 RCFDM731 RCFDM732
3 2.
2. Commercial loans .................................................................................................... NR NR NR NR NR NR
RCFDM733 RCFDM734 RCFDM735 RCFDM736 RCFDM737 RCFDM738
3.
3. Credit cards............................................................................................................... NR NR NR NR NR NR
RCFDM739 RCFDM740 RCFDM741 RCFDM742 RCFDM743 RCFDM744
4.
4. Other consumer loans............................................................................................... NR NR NR NR NR NR
RCFDM745
5.
5. Unallocated, if any..................................................................................................... NR
RCFDM746 RCFDM747 RCFDM748 RCFDM749 RCFDM750 RCFDM751
4 6.
6. Total (for each column, sum of items 1.a through 5) ................................................ NR NR NR NR NR NR

3. Include all loans and leases not reported as real estate loans, credit cards, or other consumer loans in items 1, 3, or 4 of Schedule RI-C.
4. The sum of item 6, columns B, D, and F, must equal Schedule RC, item 4.c. Item 6, column E, must equal Schedule RC-C, Part I, Memorandum item 7.b. Item 6, column F, must equal Schedule RI-B, Part II, Memorandum item 4.
 DISCOVER BANK FFIEC 031
RSSD-ID 30810 Report Date 12/31/2023
Last Updated on 2/5/2024 15

Schedule RI-C Part II - Disaggregated Data on the Allowances for Credit Losses(Form
Type - 031)
Dollar amounts in thousands (Column A) Amortized Cost (Column B) Allowance Balance

1. Real estate loans: 1.

a. Construction loans.......................................................................................................... RCFDJJ04 0 RCFDJJ12 0 1.a.

b. Commercial real estate loans......................................................................................... RCFDJJ05 0 RCFDJJ13 0 1.b.

c. Residential real estate loans........................................................................................... RCFDJJ06 5,890,361 RCFDJJ14 84,000 1.c.

3 RCFDJJ07 208,556 RCFDJJ15 6,000 2.
2. Commercial loans ................................................................................................................
3. Credit cards........................................................................................................................... RCFDJJ08 102,110,392 RCFDJJ16 7,613,000 3.

4. Other consumer loans........................................................................................................... RCFDJJ09 20,203,508 RCFDJJ17 1,580,000 4.

5. Unallocated, if any................................................................................................................. RCFDJJ18 0 5.

4 RCFDJJ11 128,412,817 RCFDJJ19 9,283,000 6.
6. Total (sum of items 1.a. through 5) .......................................................................................

Dollar amounts in thousands

7. Securities issued by states and political subdivisions in the U.S................................................................................. RCFDJJ20 0 7.

8. Mortgage-backed securities (MBS) (including CMOs, REMICs, and stripped MBS).................................................. RCFDJJ21 0 8.

9. Asset-backed securities and structured financial products.......................................................................................... RCFDJJ23 0 9.

10. Other debt securities................................................................................................................................................. RCFDJJ24 0 10.

5 RCFDJJ25 0 11.
11. Total (sum of items 7 through 10) .............................................................................................................................

Schedule RI-D - Income from Foreign Offices(Form Type - 031)

For all banks with foreign offices (including Edge or Agreement subsidiaries and IBFs) and total foreign office assets of $10 billion or more where foreign office revenues,
assets, or net income exceed 10 percent of consolidated total revenues, total assets, or net income.

Dollar amounts in thousands

1. Total interest income in foreign offices......................................................................................................................... RIADC899 NR 1.

2. Total interest expense in foreign offices....................................................................................................................... RIADC900 NR 2.

1 RIADKW02 NR 3.
3. Provision for loan and lease losses in foreign offices ................................................................................................
4. Noninterest income in foreign offices: 4.

a. Trading revenue.................................................................................................................................................... RIADC902 NR 4.a.

b. Investment banking, advisory, brokerage, and underwriting fees and commissions............................................ RIADC903 NR 4.b.

c. Net securitization income..................................................................................................................................... RIADC904 NR 4.c.

d. Other noninterest income..................................................................................................................................... RIADC905 NR 4.d.

5. Realized gains (losses) on held-to-maturity and available-for-sale debt securities and change in net unrealized
RIADJA28 NR 5.
holding gains (losses) on equity securities not held for trading in foreign offices............................................................
6. Total noninterest expense in foreign offices................................................................................................................. RIADC907 NR 6.

7. Adjustments to pretax income in foreign offices for internal allocations to foreign offices to reflect the effects of equity
RIADC908 NR 7.
capital on overall bank funding costs...............................................................................................................................
8. Applicable income taxes (on items 1 through 7).......................................................................................................... RIADC909 NR 8.

9. Discontinued operations, net of applicable income taxes, in foreign offices................................................................ RIADGW64 NR 9.

10. Net income attributable to foreign offices before internal allocations of income and expense (item 1 plus or minus
RIADC911 NR 10.
items 2 through 9)...........................................................................................................................................................
11. Not applicable 11.

12. Eliminations arising from the consolidation of foreign offices with domestic offices.................................................. RIADC913 NR 12.

13. Consolidated net income attributable to foreign offices (sum of items 10 and 12).................................................... RIADC914 NR 13.

3. Include all loans and leases not reported as real estate loans, credit cards, or other consumer loans in item 1, 3, or 4 of Schedule RI-C, Part II.
4. Item 6, column B must equal schedule RC, item 4.c.
5. Item 11 must equal Schedule RI-B, Part II, item 7, column B.
1. Institutions that have adopted ASU 2016-13 should report the provisions for credit losses in foreign offices for all financial assets and off-balance-sheet credit exposures that fall within the scope
of the standard in item 3.
 DISCOVER BANK FFIEC 031
RSSD-ID 30810 Report Date 12/31/2023
Last Updated on 2/5/2024 16

Schedule RI-E - Explanations (Form Type - 031)

Schedule RI-E is to be completed each quarter on a calendar year-to-date basis.

Detail all adjustments in Schedule RI-A and RI-B, all extraordinary items and other adjustments in Schedule RI, and all significant items of other noninterest income and
other noninterest expense in Schedule RI. (See instructions for details.)

Dollar amounts in thousands

1. Other noninterest income (from Schedule RI, item 5.l) Itemize and describe amounts greater than $100,000 that
1.
exceed 7 percent of Schedule RI, item 5.l:
a. Income and fees from the printing and sale of checks......................................................................................... RIADC013 NR 1.a.

b. Earnings on/increase in value of cash surrender value of life insurance.............................................................. RIADC014 NR 1.b.

c. Income and fees from automated teller machines (ATMs)................................................................................... RIADC016 NR 1.c.

d. Rent and other income from other real estate owned.......................................................................................... RIAD4042 NR 1.d.

e. Safe deposit box rent............................................................................................................................................ RIADC015 NR 1.e.

f. Bank card and credit card interchange fees.......................................................................................................... RIADF555 741,833 1.f.

g. Income and fees from wire transfers.................................................................................................................... RIADT047 NR 1.g.

h. Disclose component and the dollar amount of that component: 1.h.

1. Describe component..................................................................................................................................... TEXT4461 Click here for value 1.h.1.

2. Amount of component................................................................................................................................... RIAD4461 241,748 1.h.2.

i. Disclose component and the dollar amount of that component: 1.i.

1. Describe component..................................................................................................................................... TEXT4462 NR 1.i.1.

2. Amount of component................................................................................................................................... RIAD4462 NR 1.i.2.

j. Disclose component and the dollar amount of that component: 1.j.

1. Describe component..................................................................................................................................... TEXT4463 NR 1.j.1.

2. Amount of component................................................................................................................................... RIAD4463 NR 1.j.2.

2. Other noninterest expense (from Schedule RI, item 7.d) Itemize and describe amounts greater than $100,000 that
2.
exceed 7 percent of Schedule RI, item 7.d:
a. Data processing expenses................................................................................................................................... RIADC017 NR 2.a.

b. Advertising and marketing expenses.................................................................................................................... RIAD0497 1,085,127 2.b.

c. Directors' fees....................................................................................................................................................... RIAD4136 NR 2.c.

d. Printing, stationery, and supplies.......................................................................................................................... RIADC018 NR 2.d.

e. Postage................................................................................................................................................................ RIAD8403 NR 2.e.

f. Legal fees and expenses....................................................................................................................................... RIAD4141 NR 2.f.

g. FDIC deposit insurance assessments.................................................................................................................. RIAD4146 CONF 2.g.

h. Accounting and auditing expenses....................................................................................................................... RIADF556 NR 2.h.

i. Consulting and advisory expenses........................................................................................................................ RIADF557 NR 2.i.

j. Automated teller machine (ATM) and interchange expenses................................................................................ RIADF558 NR 2.j.

k. Telecommunications expenses............................................................................................................................. RIADF559 NR 2.k.

l. Other real estate owned expenses........................................................................................................................ RIADY923 NR 2.l.

m. Insurance expenses (not included in employee expenses, premises and fixed asset expenses, and other real
RIADY924 NR 2.m.
estate owned expenses)..........................................................................................................................................
n. Disclose component and the dollar amount of that component: 2.n.

1. Describe component..................................................................................................................................... TEXT4464 Click here for value 2.n.1.

2. Amount of component................................................................................................................................... RIAD4464 1,603,551 2.n.2.

o. Disclose component and the dollar amount of that component: 2.o.

1. Describe component..................................................................................................................................... TEXT4467 NR 2.o.1.

2. Amount of component................................................................................................................................... RIAD4467 NR 2.o.2.

p. Disclose component and the dollar amount of that component: 2.p.

1. Describe component..................................................................................................................................... TEXT4468 NR 2.p.1.

2. Amount of component................................................................................................................................... RIAD4468 NR 2.p.2.

3. Discontinued operations and applicable income tax effect (from Schedule RI, item 11) (itemize and describe each
3.
discontinued operation):
a. Disclose component, the gross dollar amount of that component, and its related income tax: 3.a.

1. Describe component..................................................................................................................................... TEXTFT29 NR 3.a.1.

2. Amount of component................................................................................................................................... RIADFT29 0 3.a.2.

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Dollar amounts in thousands

3. Applicable income tax effect......................................................................................................................... RIADFT30 0 3.a.3.

b. Disclose component, the gross dollar amount of that component, and its related income tax: 3.b.

1. Describe component..................................................................................................................................... TEXTFT31 NR 3.b.1.

2. Amount of component................................................................................................................................... RIADFT31 0 3.b.2.

3. Applicable income tax effect......................................................................................................................... RIADFT32 0 3.b.3.

4. Cumulative effect of changes in accounting principles and corrections of material accounting errors (from Schedule
4.
RI-A, item 2) (itemize and describe all such effects):
1 RIADJJ26 NR 4.a.
a. Effect of adoption of Current Expected Credit Losses Methodology - ASU 2016-13 .........................................
b. Not applicable 4.b.

c. Disclose component and the dollar amount of that component: 4.c.

1. Describe component..................................................................................................................................... TEXTB526 Click here for value 4.c.1.

2. Amount of component................................................................................................................................... RIADB526 51,577 4.c.2.

d. Disclose component and the dollar amount of that component: 4.d.

1. Describe component..................................................................................................................................... TEXTB527 NR 4.d.1.

2. Amount of component................................................................................................................................... RIADB527 0 4.d.2.

5. Other transactions with stockholders (including a parent holding company) (from Schedule RI-A, item 11) (itemize
5.
and describe all such transactions):
a. Disclose component and the dollar amount of that component: 5.a.

1. Describe component..................................................................................................................................... TEXT4498 NR 5.a.1.

2. Amount of component................................................................................................................................... RIAD4498 0 5.a.2.

b. Disclose component and the dollar amount of that component: 5.b.

1. Describe component..................................................................................................................................... TEXT4499 NR 5.b.1.

2. Amount of component................................................................................................................................... RIAD4499 0 5.b.2.

6. Adjustments to allowances for credit losses (from Schedule RI-B, part II, item 6) (itemize and describe all
3 6.
adjustments):
a. Initial allowances for credit losses recognized upon the acquisition of purchased credit-deteriorated assets on
1 RIADJJ27 0 6.a.
or after the effective date of ASU 2016-13 .............................................................................................................
1 RIADJJ28 NR 6.b.
b. Effect of adoption of current expected credit losses methodology on allowances for credit losses ....................
c. Disclose component and the dollar amount of that component: 6.c.

1. Describe component..................................................................................................................................... TEXT4521 Click here for value 6.c.1.

2. Amount of component................................................................................................................................... RIAD4521 -68,000 6.c.2.

d. Disclose component and the dollar amount of that component: 6.d.

1. Describe component..................................................................................................................................... TEXT4522 NR 6.d.1.

2. Amount of component................................................................................................................................... RIAD4522 0 6.d.2.

7. Other explanations (the space below is provided for the bank to briefly describe, at its option, any other significant
7.
items affecting the Report of Income):
a. Comments?.......................................................................................................................................................... RIAD4769 No 7.a.

b. Other explanations............................................................................................................................................... TEXT4769 NR 7.b.

(TEXT4461) Net Credit Card Fee Income

(TEXT4464) Servicing Fees Paid To Affiliates

(TEXT4521) ASU 2022-02

(TEXTB526) ASU 2022-02

1. Only institutions that have adopted ASU 2016-13 should report amounts in items 4.a, 6.a and 6.b, if applicable.
3. Institutions that have not adopted ASU 2016-13 should report the allowance for loan and lease losses in item 6, where applicable.
1. Only institutions that have adopted ASU 2016-13 should report amounts in items 4.a, 6.a and 6.b, if applicable.
1. Only institutions that have adopted ASU 2016-13 should report amounts in items 4.a, 6.a and 6.b, if applicable.
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Schedule RC - Balance Sheet(Form Type - 031)

All schedules are to be reported in thousands of dollars. Unless otherwise indicated, report the amount outstanding as of the last business day of the quarter.

Dollar amounts in thousands

1. Cash and balances due from depository institutions (from Schedule RC-A): 1.

1 RCFD0081 1,932,511 1.a.

a. Noninterest-bearing balances and currency and coin ........................................................................................
2 RCFD0071 9,331,039 1.b.
b. Interest-bearing balances ...................................................................................................................................
2. Securities: 2.
3 RCFDJJ34 252,642 2.a.
a. Held-to-maturity securities (from Schedule RC-B, column A) ............................................................................
b. Available-for-sale debt securities (from Schedule RC-B, column D).................................................................... RCFD1773 13,401,243 2.b.
4 RCFDJA22 43,241 2.c.
c. Equity securities with readily determinable fair values not held for trading .........................................................
3. Federal funds sold and securities purchased under agreements to resell: 3.

a. Federal funds sold in domestic offices................................................................................................................. RCONB987 0 3.a.

5 RCFDB989 0 3.b.
b. Securities purchased under agreements to resell ..............................................................................................
4. Loans and lease financing receivables (from Schedule RC-C): 4.

a. Loans and leases held for sale............................................................................................................................. RCFD5369 0 4.a.

b. Loans and leases held for investment.................................................................................................................. RCFDB528 128,412,817 4.b.

7 RCFD3123 9,283,000 4.c.
c. LESS: Allowance for loan and lease losses ........................................................................................................
d. Loans and leases held for investment, net of allowance (item 4.b minus 4.c)...................................................... RCFDB529 119,129,817 4.d.

5. Trading assets (from Schedule RC-D)......................................................................................................................... RCFD3545 0 5.

6. Premises and fixed assets (including capitalized leases)............................................................................................ RCFD2145 277,275 6.

7. Other real estate owned (from Schedule RC-M)......................................................................................................... RCFD2150 345 7.

8. Investments in unconsolidated subsidiaries and associated companies..................................................................... RCFD2130 3,017 8.

9. Direct and indirect investments in real estate ventures............................................................................................... RCFD3656 514,339 9.

10. Intangible assets (from Schedule RC-M)................................................................................................................... RCFD2143 0 10.

6 RCFD2160 4,467,761 11.
11. Other assets (from Schedule RC-F) ........................................................................................................................
12. Total assets (sum of items 1 through 11)................................................................................................................... RCFD2170 149,353,230 12.

13. Deposits: 13.

a. In domestic offices (sum of totals of columns A and C from Schedule RC-E, part I)........................................... RCON2200 112,624,604 13.a.
8 RCON6631 1,627,481 13.a.1.
1. Noninterest-bearing .....................................................................................................................................
2. Interest-bearing............................................................................................................................................. RCON6636 110,997,123 13.a.2.

b. In foreign offices, Edge and Agreement subsidiaries, and IBFs (from Schedule RC-E, part II)........................... RCFN2200 0 13.b.

1. Noninterest-bearing...................................................................................................................................... RCFN6631 NR 13.b.1.

2. Interest-bearing............................................................................................................................................. RCFN6636 NR 13.b.2.

14. Federal funds purchased and securities sold under agreements to repurchase: 14.
9 RCONB993 0 14.a.
a. Federal funds purchased in domestic offices .....................................................................................................
10 RCFDB995 0 14.b.
b. Securities sold under agreements to repurchase ..............................................................................................
15. Trading liabilities (from Schedule RC-D).................................................................................................................... RCFD3548 0 15.

16. Other borrowed money (includes mortgage indebtedness and obligations under capitalized leases) (from Schedule
RCFD3190 16,362,338 16.
RC-M)..............................................................................................................................................................................
17. Not applicable 17.

18. Not applicable 18.

1 RCFD3200 1,750,000 19.
19. Subordinated notes and debentures ........................................................................................................................

1. Includes cash items in process of collection and unposted debits.

2. Includes time certificates of deposit not held for trading.
3. Institutions that have adopted ASU 2016-13 should report in item 2.a, amounts net of any applicable allowance for credit losses, and should equal to Schedule RC-B, item 8, column A less
Schedule RI-B, Part II, item 7, column B.
4. Item 2.c is to be completed by all institutions. See the instructions for this item and the Glossary entry for "Securities Activities" for further detail on accounting for investments in equity securities.
5. Includes all securities resale agreements, regardless of maturity.
7. Institutions that have adopted ASU 2016-13 should report in item 4.c the allowance for credit losses on loans and leases.
6. Institutions that have adopted ASU 2016-13 should report in items 3.b and 11 amounts net of any applicable allowance for credit losses.
8. Includes noninterest-bearing demand, time, and savings deposits.
9. Report overnight Federal Home Loan Bank advances in Schedule RC, item 16, "Other borrowed money."
10. Includes all securities repurchase agreements, regardless of maturity.
1. Includes limited-life preferred stock and related surplus.
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Dollar amounts in thousands

20. Other liabilities (from Schedule RC-G)...................................................................................................................... RCFD2930 5,825,189 20.

21. Total liabilities (sum of items 13 through 20).............................................................................................................. RCFD2948 136,562,131 21.

22. Not applicable 22.

23. Perpetual preferred stock and related surplus........................................................................................................... RCFD3838 0 23.

24. Common stock........................................................................................................................................................... RCFD3230 35 24.

25. Surplus (exclude all surplus related to preferred stock)............................................................................................. RCFD3839 4,601,729 25.

26. Not available 26.

a. Retained earnings................................................................................................................................................ RCFD3632 8,234,616 26.a.

2 RCFDB530 -45,281 26.b.
b. Accumulated other comprehensive income ........................................................................................................
3 RCFDA130 0 26.c.
c. Other equity capital components ........................................................................................................................
27. Not available 27.

a. Total bank equity capital (sum of items 23 through 26.c)..................................................................................... RCFD3210 12,791,099 27.a.

b. Noncontrolling (minority) interests in consolidated subsidiaries........................................................................... RCFD3000 0 27.b.

28. Total equity capital (sum of items 27.a and 27.b)...................................................................................................... RCFDG105 12,791,099 28.

29. Total liabilities and equity capital (sum of items 21 and 28)....................................................................................... RCFD3300 149,353,230 29.

1. Indicate in the box at the right the number of the statement below that best describes the most comprehensive level
RCFD6724 NR M.1.
of auditing work performed for the bank by independent external auditors as of any date during 2022.........................
2. Bank's fiscal year-end date (report the date in MMDD format)................................................................................... RCON8678 NR M.2.

Schedule RC-A - Cash and Balances Due From Depository Institutions(Form Type -
031)
Exclude assets held for trading.

Dollar amounts in thousands (Column A) Consolidated Bank (Column B) Domestic Offices

1. Cash items in process of collection, unposted debits, and currency and coin....................... RCFD0022 1,779,915 1.

a. Cash items in process of collection and unposted debits............................................... RCON0020 1,779,651 1.a.

b. Currency and coin.......................................................................................................... RCON0080 264 1.b.

2. Balances due from depository institutions in the U.S............................................................. RCFD0082 998,284 RCON0082 998,284 2.

3. Balances due from banks in foreign countries and foreign central banks.............................. RCFD0070 0 RCON0070 0 3.

4. Balances due from Federal Reserve Banks.......................................................................... RCFD0090 8,485,351 RCON0090 8,485,351 4.

5. Total....................................................................................................................................... RCFD0010 11,263,550 RCON0010 11,263,550 5.

2. Includes, but is not limited to, net unrealized holding gains (losses) on available-for-sale securities, accumulated net gains (losses) on cash flow hedges, cumulative foreign currency translation
adjustments, and accumulated defined benefit pension and other postretirement plan adjustments.
3. Includes treasury stock and unearned Employee Stock Ownership Plan shares.
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Schedule RC-B - Securities(Form Type - 031)

Exclude assets held for trading.

(Column A) (Column B) (Column C) (Column D)

Held-to-maturity Held-to-maturity Fair Available-for-sale Available-for-sale Fair
Dollar amounts in thousands Amortized Cost Value Amortized Cost Value

1. U.S. Treasury securities.............................................................. RCFD0211 0 RCFD0213 0 RCFD1286 12,962,520 RCFD1287 12,927,891 1.

2. U.S. Government agency and sponsored agency obligations

1 RCFDHT50 0 RCFDHT51 0 RCFDHT52 8,500 RCFDHT53 7,674 2.
(exclude mortgage-backed securities) ..........................................
3. Securities issued by states and political subdivisions in the
RCFD8496 0 RCFD8497 0 RCFD8498 0 RCFD8499 0 3.
U.S..................................................................................................
4. Mortgage-backed securities (MBS): 4.

a. Residential mortgage pass-through securities: 4.a.

1. Guaranteed by GNMA.................................................. RCFDG300 197,128 RCFDG301 182,075 RCFDG302 21,663 RCFDG303 20,787 4.a.1.

2. Issued by FNMA and FHLMC...................................... RCFDG304 55,514 RCFDG305 51,752 RCFDG306 458,525 RCFDG307 444,891 4.a.2.

3. Other pass-through securities...................................... RCFDG308 0 RCFDG309 0 RCFDG310 0 RCFDG311 0 4.a.3.

b. Other residential mortgage-backed securities (include CMOs,

4.b.
REMICs, and stripped MBS):
1. Issued or guaranteed by U.S. Government agencies or
1 RCFDG312 0 RCFDG313 0 RCFDG314 0 RCFDG315 0 4.b.1.
sponsored agencies .......................................................
2. Collateralized by MBS issued or guaranteed by U.S.
1 RCFDG316 0 RCFDG317 0 RCFDG318 0 RCFDG319 0 4.b.2.
Government agencies or sponsored agencies ...............
3. All other residential MBS.............................................. RCFDG320 0 RCFDG321 0 RCFDG322 0 RCFDG323 0 4.b.3.

c. Commercial MBS: 4.c.

1. Commercial mortgage pass-through securities: 4.c.1.

a. Issued or guaranteed by FNMA, FHLMC, or

RCFDK142 0 RCFDK143 0 RCFDK144 0 RCFDK145 0 4.c.1.a.
GNMA.......................................................................
b. Other pass-through securities............................... RCFDK146 0 RCFDK147 0 RCFDK148 0 RCFDK149 0 4.c.1.b.

2. Other commercial MBS: 4.c.2.

a. Issued or guaranteed by U.S. Government

1 RCFDK150 0 RCFDK151 0 RCFDK152 0 RCFDK153 0 4.c.2.a.
agencies or sponsored agencies ............................
b. All other commercial MBS..................................... RCFDK154 0 RCFDK155 0 RCFDK156 0 RCFDK157 0 4.c.2.b.

5. Asset-backed securities and structured financial products: 5.

a. Asset-backed securities (ABS)............................................ RCFDC026 0 RCFDC988 0 RCFDC989 0 RCFDC027 0 5.a.

b. Structured financial products............................................... RCFDHT58 0 RCFDHT59 0 RCFDHT60 0 RCFDHT61 0 5.b.

6. Other debt securities: 6.

a. Other domestic debt securities............................................ RCFD1737 0 RCFD1738 0 RCFD1739 0 RCFD1741 0 6.a.

b. Other foreign debt securities................................................ RCFD1742 0 RCFD1743 0 RCFD1744 0 RCFD1746 0 6.b.

7. Unallocated portfolio layer fair value hedge basis adjustments... RCFDMG95 NR 7.

2 252,642 RCFD1771 233,827 RCFD1772 13,451,208 RCFD1773 13,401,243
8. Total (sum of items 1 through 7) ................................................ RCFD1754 8.
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Dollar amounts in thousands

1
1. Pledged securities ..................................................................................................................................................... RCFD0416 321,001 M.1.

1 M.2.
2. Maturity and repricing data for debt securities (excluding those in nonaccrual status):
a. Securities issued by the U.S. Treasury, U.S. Government agencies, and states and political subdivisions in the
U.S.; other non-mortgage debt securities; and mortgage pass-through securities other than those backed by M.2.a.
2
closed-end first lien 1-4 family residential mortgages with a remaining maturity or next repricing date of:
1. Three months or less.................................................................................................................................... RCFDA549 497,741 M.2.a.1.

2. Over three months through 12 months......................................................................................................... RCFDA550 1,595,342 M.2.a.2.

3. Over one year through three years............................................................................................................... RCFDA551 3,069,332 M.2.a.3.

4. Over three years through five years.............................................................................................................. RCFDA552 7,557,777 M.2.a.4.

5. Over five years through 15 years.................................................................................................................. RCFDA553 215,373 M.2.a.5.

6. Over 15 years................................................................................................................................................ RCFDA554 0 M.2.a.6.

b. Mortgage pass-through securities backed by closed-end first lien 1-4 family residential mortgages with a
2 M.2.b.
remaining maturity or next repricing date of:
1. Three months or less.................................................................................................................................... RCFDA555 0 M.2.b.1.

2. Over three months through 12 months......................................................................................................... RCFDA556 524 M.2.b.2.

3. Over one year through three years............................................................................................................... RCFDA557 0 M.2.b.3.

4. Over three years through five years.............................................................................................................. RCFDA558 70,473 M.2.b.4.

5. Over five years through 15 years.................................................................................................................. RCFDA559 395,466 M.2.b.5.

6. Over 15 years................................................................................................................................................ RCFDA560 251,857 M.2.b.6.

c. Other mortgage-backed securities (include CMOs, REMICs, and stripped MBS; exclude mortgage pass-through
5 M.2.c.
securities) with an expected average life of:
1. Three years or less....................................................................................................................................... RCFDA561 0 M.2.c.1.

2. Over three years........................................................................................................................................... RCFDA562 0 M.2.c.2.

d. Debt securities with a REMAINING MATURITY of one year or less (included in Memorandum items 2.a through
RCFDA248 2,093,607 M.2.d.
2.c above)................................................................................................................................................................
Memorandum item 3 is to be completed semiannually in the June and December reports only.
3. Amortized cost of held-to-maturity securities sold or transferred to available-for-sale or trading securities during the RCFD1778 0 M.3.
calendar year-to-date (report the amortized cost at date of sale or transfer)..................................................................
4. Structured notes (included in the held-to-maturity and available-for-sale accounts in Schedule RC-B, items 2, 3, 5,
M.4.
and 6):
a. Amortized cost..................................................................................................................................................... RCFD8782 0 M.4.a.

b. Fair value.............................................................................................................................................................. RCFD8783 0 M.4.b.

1. Includes Small Business Administration "Guaranteed Loan Pool Certificates"; U.S. Maritime Administration obligations; Export-Import Bank participation certificates; and obligations (other than
mortgage-backed securities) issued by the Farm Credit System, the Federal Home Loan Bank System, the Federal Home Loan Mortgage Corporation, the Federal National Mortgage Association,
the Financing Corporation, Resolution Funding Corporation, the Student Loan Marketing Association, and the Tennessee Valley Authority.
1. U.S. Government agencies include, but are not limited to, such agencies as the Government National Mortgage Association (GNMA), the Federal Deposit Insurance Corporation (FDIC), and
the National Credit Union Administration (NCUA). U.S. Government-sponsored agencies include, but are not limited to, such agencies as the Federal Home Loan Mortgage Corporation (FHLMC)
and the Federal National Mortgage Association (FNMA).
1. U.S. Government agencies include, but are not limited to, such agencies as the Government National Mortgage Association (GNMA), the Federal Deposit Insurance Corporation (FDIC), and
the National Credit Union Administration (NCUA). U.S. Government-sponsored agencies include, but are not limited to, such agencies as the Federal Home Loan Mortgage Corporation (FHLMC)
and the Federal National Mortgage Association (FNMA).
2. For institutions that have adopted ASU 2016-13, the total reported in column A must equal Schedule RC, item 2.a, plus Schedule RI-B, Part II, item 7, column B. For institutions that have not
adopted ASU 2016-13, the total reported in column A must equal Schedule RC, item 2.a. For all institutions, the total reported in column D must equal Schedule RC, item 2.b.
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(Column A) (Column B) (Column C) (Column D)

Held-to-maturity Held-to-maturity Fair Available-for-sale Available-for-sale Fair
Dollar amounts in thousands Amortized Cost Value Amortized Cost Value
Memorandum items 5.a through 5.f and 6.a through 6.g are to be completed
by banks with $10 billion or more in total assets.
5. Asset-backed securities (ABS) (for each column, sum of M.5.
Memorandum items 5.a through 5.f must equal Schedule RC-B,
1
item 5.a):
a. Credit card receivables........................................................ RCFDB838 0 RCFDB839 0 RCFDB840 0 RCFDB841 0 M.5.a.

b. Home equity lines................................................................ RCFDB842 0 RCFDB843 0 RCFDB844 0 RCFDB845 0 M.5.b.

c. Automobile loans................................................................. RCFDB846 0 RCFDB847 0 RCFDB848 0 RCFDB849 0 M.5.c.

d. Other consumer loans......................................................... RCFDB850 0 RCFDB851 0 RCFDB852 0 RCFDB853 0 M.5.d.

e. Commercial and industrial loans......................................... RCFDB854 0 RCFDB855 0 RCFDB856 0 RCFDB857 0 M.5.e.

f. Other..................................................................................... RCFDB858 0 RCFDB859 0 RCFDB860 0 RCFDB861 0 M.5.f.

6. Structured financial products by underlying collateral or reference

assets (for each column, sum of Memorandum items 6.a through M.6.
6.g must equal Schedule RC-B item 5.b):
a. Trust preferred securities issued by financial institutions...... RCFDG348 0 RCFDG349 0 RCFDG350 0 RCFDG351 0 M.6.a.

b. Trust preferred securities issued by real estate investment

RCFDG352 0 RCFDG353 0 RCFDG354 0 RCFDG355 0 M.6.b.
trusts........................................................................................
c. Corporate and similar loans................................................. RCFDG356 0 RCFDG357 0 RCFDG358 0 RCFDG359 0 M.6.c.

d. 1-4 family residential MBS issued or guaranteed by U.S.

RCFDG360 0 RCFDG361 0 RCFDG362 0 RCFDG363 0 M.6.d.
government-sponsored enterprises (GSEs)............................
e. 1-4 family residential MBS not issued or guaranteed by
RCFDG364 0 RCFDG365 0 RCFDG366 0 RCFDG367 0 M.6.e.
GSEs.......................................................................................
f. Diversified (mixed) pools of structured financial products...... RCFDG368 0 RCFDG369 0 RCFDG370 0 RCFDG371 0 M.6.f.

g. Other collateral or reference assets..................................... RCFDG372 0 RCFDG373 0 RCFDG374 0 RCFDG375 0 M.6.g.

1. Includes held-to-maturity securities at amortized cost, available-for-sale debt securities at fair value, and equity securities with readily determinable fair values not held for trading (reported in
Schedule RC, item 2.c) at fair value.
1. Includes held-to-maturity securities at amortized cost, available-for-sale debt securities at fair value, and equity securities with readily determinable fair values not held for trading (reported in
Schedule RC, item 2.c) at fair value.
2. Report fixed-rate debt securities by remaining maturity and floating-rate debt securities by next repricing date.
2. Report fixed-rate debt securities by remaining maturity and floating-rate debt securities by next repricing date.
5. Sum of Memorandum items 2.c.(1) and 2.c.(2) plus any nonaccrual “Other mortgage-backed securities” included in Schedule RC-N, item 10, column C, must equal Schedule RC-B, sum of
items 4.b and 4.c.(2), columns A and D.
1. The $10 billion asset size test is based on the total assets reported on the June 30, 2022, Report of Condition.
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Schedule RC-C Part I - Loans and Leases(Form Type - 031)

Do not deduct the allowance for loan and lease losses or the allocated transfer risk reserve from amounts reported in this schedule. Report (1) loans and leases held for
sale at the lower of cost or fair value, (2) loans and leases held for investment, net of unearned income, and (3) loans and leases accounted for at fair value under a fair
value option. Exclude assets held for trading and commercial paper.

Dollar amounts in thousands (Column A) Consolidated Bank (Column B) Domestic Offices

2
1. Loans secured by real estate ............................................................................................... RCFD1410 NR 1.

a. Construction, land development, and other land loans: 1.a.

1. 1-4 family residential construction loans................................................................. RCFDF158 0 RCONF158 0 1.a.1.

2. Other construction loans and all land development and other land loans............... RCFDF159 0 RCONF159 0 1.a.2.

b. Secured by farmland (including farm residential and other improvements).................... RCFD1420 0 RCON1420 0 1.b.

c. Secured by 1-4 family residential properties: 1.c.

1. Revolving, open-end loans secured by 1-4 family residential properties and extended
RCFD1797 0 RCON1797 0 1.c.1.
under lines of credit.....................................................................................................
2. Closed-end loans secured by 1-4 family residential properties: 1.c.2.

a. Secured by first liens........................................................................................ RCFD5367 1,317,267 RCON5367 1,317,267 1.c.2.a.

b. Secured by junior liens..................................................................................... RCFD5368 4,573,094 RCON5368 4,573,094 1.c.2.b.

d. Secured by multifamily (5 or more) residential properties.............................................. RCFD1460 0 RCON1460 0 1.d.

e. Secured by nonfarm nonresidential properties: 1.e.

1. Loans secured by owner-occupied nonfarm nonresidential properties................... RCFDF160 0 RCONF160 0 1.e.1.

2. Loans secured by other nonfarm nonresidential properties.................................... RCFDF161 0 RCONF161 0 1.e.2.

2. Loans to depository institutions and acceptances of other banks: 2.

a. To commercial banks in the U.S..................................................................................... RCONB531 0 2.a.

1. To U.S. branches and agencies of foreign banks.................................................... RCFDB532 0 2.a.1.

2. To other commercial banks in the U.S..................................................................... RCFDB533 0 2.a.2.

b. To other depository institutions in the U.S....................................................................... RCFDB534 0 RCONB534 0 2.b.

c. To banks in foreign countries.......................................................................................... RCONB535 0 2.c.

1. To foreign branches of other U.S. banks.................................................................. RCFDB536 0 2.c.1.

2. To other banks in foreign countries......................................................................... RCFDB537 0 2.c.2.

3. Loans to finance agricultural production and other loans to farmers..................................... RCFD1590 0 RCON1590 0 3.

4. Commercial and industrial loans: 4.

a. To U.S. addressees (domicile)........................................................................................ RCFD1763 147,145 RCON1763 147,145 4.a.

b. To non-U.S. addressees (domicile)................................................................................. RCFD1764 0 RCON1764 0 4.b.

5. Not applicable 5.

6. Loans to individuals for household, family, and other personal expenditures (i.e., consumer
6.
loans) (includes purchased paper):
a. Credit cards.................................................................................................................... RCFDB538 102,110,392 RCONB538 102,110,392 6.a.

b. Other revolving credit plans............................................................................................ RCFDB539 0 RCONB539 0 6.b.

c. Automobile loans............................................................................................................ RCFDK137 0 RCONK137 0 6.c.

d. Other consumer loans (includes single payment and installment loans other than
RCFDK207 20,203,508 RCONK207 20,203,508 6.d.
automobile loans, and all student loans)............................................................................
7. Loans to foreign governments and official institutions (including foreign central banks)....... RCFD2081 0 RCON2081 0 7.

8. Obligations (other than securities and leases) of states and political subdivisions in the
RCFD2107 0 RCON2107 0 8.
U.S.............................................................................................................................................
9. Loans to nondepository financial institutions and other loans............................................... RCFD1563 61,411 9.

a. Loans to nondepository financial institutions.................................................................. RCONJ454 56,410 9.a.

b. Other loans: 9.b.

1. Loans for purchasing or carrying securities (secured and unsecured)................... RCON1545 0 9.b.1.

2. All other loans (exclude consumer loans)............................................................... RCONJ451 5,001 9.b.2.

10. Lease financing receivables (net of unearned income)....................................................... RCON2165 0 10.

a. Leases to individuals for household, family, and other personal expenditures (i.e.,
RCFDF162 0 10.a.
consumer leases)...............................................................................................................
b. All other leases............................................................................................................... RCFDF163 0 10.b.

11. LESS: Any unearned income on loans reflected in items 1-9 above................................... RCFD2123 0 RCON2123 0 11.

12. Total loans and leases held for investment and held for sale (item 12, column A must equal
RCFD2122 128,412,817 RCON2122 128,412,817 12.
Schedule RC, sum of items 4.a and 4.b)...................................................................................
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2. When reporting “Loans secured by real estate,” “large institutions” and “highly complex institutions,” as defined for deposit insurance assessment purposes in FDIC regulations, should complete
items 1.a.(1) through 1.e.(2) in columns A and B (but not item 1 in column A); all other institutions should complete item 1 in column A and items 1.a.(1) through 1.e.(2) in column B (but not
items 1.a.(1) through 1.e.(2) in column A).
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Dollar amounts in thousands

1. Loans restructured in troubled debt restructurings that are in compliance with their modified terms (included in
M.1.
Schedule RC-C, part 1, and not reported as past due or nonaccrual in Schedule RC-N, Memorandum item 1):
a. Construction, land development, and other land loans in domestic offices: M.1.a.

1. 1-4 family residential construction loans....................................................................................................... RCONK158 0 M.1.a.1.

2. Other construction loans and all land development and other land loans..................................................... RCONK159 0 M.1.a.2.

b. Loans secured by 1-4 family residential properties in domestic offices................................................................ RCONF576 0 M.1.b.

c. Secured by multifamily (5 or more) residential properties in domestic offices...................................................... RCONK160 0 M.1.c.

d. Secured by nonfarm nonresidential properties in domestic offices: M.1.d.

1. Loans secured by owner-occupied nonfarm nonresidential properties......................................................... RCONK161 0 M.1.d.1.

2. Loans secured by other nonfarm nonresidential properties.......................................................................... RCONK162 0 M.1.d.2.

e. Commercial and industrial loans: M.1.e.

1. To U.S. addressees (domicile)....................................................................................................................... RCFDK163 0 M.1.e.1.

2. To non-U.S. addressees (domicile)............................................................................................................... RCFDK164 0 M.1.e.2.

f. All other loans (include loans to individuals for household, family, and other personal expenditures).................. RCFDK165 2,136,778 M.1.f.

Itemize loan categories included in Memorandum item 1.f, above that exceed 10 percent of total loans restructured in troubled
debt restructurings that are in compliance with their modified terms (sum of Memorandum items 1.a through 1.f): RCONK166 0 M.1.f.1.
1. Loans secured by farmland in domestic offices............................................................................................
2. Not applicable M.1.f.2.

3. Loans to finance agricultural production and other loans to farmers............................................................ RCFDK168 0 M.1.f.3.

4. Loans to individuals for household, family, and other personal expenditures: M.1.f.4.

a. Credit cards........................................................................................................................................... RCFDK098 1,880,318 M.1.f.4.a.

b. Automobile loans................................................................................................................................... RCFDK203 0 M.1.f.4.b.

c. Other (includes revolving credit plans other than credit cards and other consumer loans)................... RCFDK204 256,460 M.1.f.4.c.

g. Total loans restructured in troubled debt restructurings that are in compliance with their modified terms (sum
RCFDHK25 2,136,778 M.1.g.
of Memorandum items 1.a.(1) through 1.f)...............................................................................................................
2. Maturity and repricing data for loans and leases (excluding those in nonaccrual status): M.2.

a. Closed-end loans secured by first liens on 1-4 family residential properties in domestic offices (reported in
M.2.a.
Schedule RC-C, part I, item 1.c.(2)(a), column B) with a remaining maturity or next repricing date of:
1. Three months or less.................................................................................................................................... RCONA564 2 M.2.a.1.

2. Over three months through 12 months......................................................................................................... RCONA565 46 M.2.a.2.

3. Over one year through three years............................................................................................................... RCONA566 833 M.2.a.3.

4. Over three years through five years.............................................................................................................. RCONA567 2,508 M.2.a.4.

5. Over five years through 15 years.................................................................................................................. RCONA568 241,393 M.2.a.5.

6. Over 15 years................................................................................................................................................ RCONA569 1,057,328 M.2.a.6.

b. All loans and leases (reported in Schedule RC-C, part I, items 1 through 10, column A) EXCLUDING closed-end
loans secured by first liens on 1-4 family residential properties in domestic offices (reported in Schedule RC-C, M.2.b.
part I, item 1.c.(2)(a), column B) with a remaining maturity or next repricing date of:
1. Three months or less.................................................................................................................................... RCFDA570 83,745,946 M.2.b.1.

2. Over three months through 12 months......................................................................................................... RCFDA571 13,538,170 M.2.b.2.

3. Over one year through three years............................................................................................................... RCFDA572 12,494,901 M.2.b.3.

4. Over three years through five years.............................................................................................................. RCFDA573 4,431,562 M.2.b.4.

5. Over five years through 15 years.................................................................................................................. RCFDA574 6,242,891 M.2.b.5.

6. Over 15 years................................................................................................................................................ RCFDA575 6,386,755 M.2.b.6.

c. Loans and leases (reported in Schedule RC-C, part I, items 1 through 10, column A) with a REMAINING
RCFDA247 215,417 M.2.c.
MATURITY of one year or less (excluding those in nonaccrual status)...................................................................
3. Loans to finance commercial real estate, construction, and land development activities (not secured by real estate)
4 RCFD2746 0 M.3.
included in Schedule RC-C, part I, items 4 and 9, column A .........................................................................................
4. Adjustable rate closed-end loans secured by first liens on 1-4 family residential properties in domestic offices (included
RCON5370 0 M.4.
in Schedule RC-C, part I, item 1.c.(2)(a), column B).......................................................................................................
5. Loans secured by real estate to non-U.S. addressees (domicile) (included in Schedule RC-C, Part I, item 1, column
RCFDB837 0 M.5.
A, or Schedule RC-C, Part I, items 1.a.(1) through 1.e.(2), column A, as appropriate)...................................................
Memorandum item 6 is to be completed by banks that (1) together with affiliated institutions, have outstanding credit card receivables (as
defined in the instructions) that exceed $500 million as of the report date, or (2) are credit card specialty banks as defined for Uniform
Bank Performance Report purposes. RCFDC391 4,003,190 M.6.

6. Outstanding credit card fees and finance charges included in Schedule RC-C, part I, item 6.a, column A................

4. Exclude loans secured by real estate that are included in Schedule RC-C, Part I, item 1, column A.
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Dollar amounts in thousands

Memorandum items 7.a and 7.b are to be completed by all banks semiannually in the June and December reports only.
7. Purchased credit-impaired loans held for investment accounted for in accordance with FASB ASC 310-30 (former M.7.
5
AICPA Statement of Position 03-3) (exclude loans held for sale):
a. Outstanding balance............................................................................................................................................ RCFDC779 NR M.7.a.

b. Amount included in Schedule RC-C, part I, items 1 through 9............................................................................. RCFDC780 NR M.7.b.

Memorandum items 8.a, 8.b, and 8.c are to be completed semiannually in the June and December reports only.
M.8.
8. Closed-end loans with negative amortization features secured by 1-4 family residential properties in domestic offices:
a. Total amount of closed-end loans with negative amortization features secured by 1-4 family residential properties
RCONF230 0 M.8.a.
(included in Schedule RC-C, part I, items 1.c.(2)(a) and 1.c.(2)(b)).........................................................................
Memorandum items 8.b and 8.c are to be completed semiannually in the June and December reports only by banks that had
closed-end loans with negative amortization features secured by 1-4 family residential properties (as reported in Schedule RC-C,
Part I, Memorandum item 8.a) as of December 31, 2021, that exceeded the lesser of $100 million or 5 percent of total loans and
leases held for investment and held for sale in domestic offices (as reported in Schedule RC-C, Part I, item 12, column B). RCONF231 NR M.8.b.

b.Total maximum remaining amount of negative amortization contractually permitted on closed-end loans secured
by 1-4 family residential properties..........................................................................................................................
c. Total amount of negative amortization on closed-end loans secured by 1-4 family residential properties included
RCONF232 NR M.8.c.
in the amount reported in Memorandum item 8.a above.........................................................................................

5. Memorandum item 7 is to be completed only by institutions that have not yet adopted ASU 2016-13.
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Dollar amounts in thousands

9. Loans secured by 1-4 family residential properties in domestic offices in process of foreclosure (included in Schedule
RCONF577 4,216 M.9.
RC-C, part I, items 1.c.(1), 1.c.(2)(a), and 1.c.(2)(b))......................................................................................................

Dollar amounts in thousands

10. Not applicable M.10.

11. Not applicable M.11.

(Column A) Fair value of (Column B) Gross (Column C) Best estimate

acquired loans and leases contractual amounts at acquisition date of
at acquisition date receivable at acquisition contractual cash flows not
Dollar amounts in thousands date expected to be collected
Memorandum items 12.a, 12.b, 12.c, and 12.d are to be completed semiannually in the
June and December reports only.
12. Loans (not subject to the requirements of FASB ASC 310-30 (former AICPA M.12.
Statement of Position 03-3)) and leases held for investment that were acquired
1
in business combinations with acquisition dates in the current calendar year:
a. Loans secured by real estate................................................................ RCFDG091 0 RCFDG092 0 RCFDG093 0 M.12.a.

b. Commercial and industrial loans........................................................... RCFDG094 0 RCFDG095 0 RCFDG096 0 M.12.b.

c. Loans to individuals for household, family, and other personal

RCFDG097 0 RCFDG098 0 RCFDG099 0 M.12.c.
expenditures..............................................................................................
d. All other loans and all leases................................................................. RCFDG100 0 RCFDG101 0 RCFDG102 0 M.12.d.

Dollar amounts in thousands

Memoranda item 13 is to be completed by banks that had construction, land development, and other land loans in domestic offices (as
reported in Schedule RC-C, Part I, item 1.a., column B) that exceeded 100 percent of the sum of tier 1 capital (as reported in Schedule
RC-R, Part I, item 26) plus the allowance for loan and lease losses or the allowance for credit losses on loans and leases, as applicable M.13.
(as reported in Schedule RC, item 4.c) as of December 31, 2021.
13. Construction, land development, and other land loans in domestic offices with interest reserves:
a. Amount of loans that provide for the use of interest reserves (included in Schedule RC-C, part I, item 1.a, column
RCONG376 NR M.13.a.
B ) .............................................................................................................................................................................
b. Amount of interest capitalized from interest reserves on construction, land development, and other land loans
RIADG377 NR M.13.b.
that is included in interest and fee income on loans during the quarter (included in Schedule RI, item 1.a.(1)(a)(2)).
Memorandum item 14 is to be completed by all banks.
RCFDG378 103,955,350 M.14.
14. Pledged loans and leases.........................................................................................................................................
Memorandum item 15 is to be completed for the December report only.
M.15.
15. Reverse mortgages in domestic offices:
a. Reverse mortgages outstanding that are held for investment (included in Schedule RC-C, item 1.c, above)...... RCONPR04 0 M.15.a.

b. Estimated number of reverse mortgage loan referrals to other lenders during the year from whom compensation
RCONPR05 0 M.15.b.
has been received for services performed in connection with the origination of the reverse mortgages.................
c. Principal amount of reverse mortgage originations that have been sold during the year..................................... RCONPR06 0 M.15.c.

Memorandum item 16 is to be completed by all banks.

16. Revolving, open-end loans secured by 1-4 family residential properties and extended under lines of credit in RCONLE75 0 M.16.
domestic offices that have converted to non-revolving closed-end status (included in item 1.c.(1) above)....................
Amounts reported in Memorandum items 17.a and 17.b will not be made available to the public on an individual institution basis.
17. Eligible loan modifications under Section 4013, Temporary Relief from Troubled Debt Restructurings, of the 2020 M.17.
Coronavirus Aid, Relief, and Economic Security Act:
a. Number of Section 4013 loans outstanding......................................................................................................... RCONLG24 CONF M.17.a.

b. Outstanding balance of Section 4013 loans......................................................................................................... RCONLG25 CONF M.17.b.

1. Institutions that have adopted ASU 2016-13 should report only loans held for investment not considered purchased credit-deteriorated in Memorandum item 12.
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Schedule RC-C Part II - Loans to Small Businesses and Small Farms(Form Type - 031)
Report the number and amount currently outstanding as of the report date of business loans with "original amounts" of $1,000,000 or less and farm loans with "original
amounts" of $500,000 or less. The following guidelines should be used to determine the "original amount" of a loan:
(1) For loans drawn down under lines of credit or loan commitments, the "original amount" of the loan is the size of the line of credit or loan commitment when the line of
credit or loan commitment was most recently approved, extended, or renewed prior to the report date. However, if the amount currently outstanding as of the report date
exceeds this size, the "original amount" is the amount currently outstanding on the report date. (2) For loan participations and syndications, the "original amount" of the loan
participation or syndication is the entire amount of the credit originated by the lead lender. (3) For all other loans, the "original amount" is the total amount of the loan at
origination or the amount currently outstanding as of the report date, whichever is larger.

Dollar amounts in thousands

1. Not applicable 1.

2. Not applicable 2.

(Column A) Number of Loans (Column B) Amount Currently

Dollar amounts in thousands Outstanding
3. Number and amount currently outstanding of "Loans secured by nonfarm nonresidential
properties" in domestic offices reported in Schedule RC-C, part I, items 1.e.(1) and 1.e.(2), 3.
column B:
a. With original amounts of $100,000 or less..................................................................... RCON5564 0 RCON5565 0 3.a.

b. With original amounts of more than $100,000 through $250,000................................... RCON5566 0 RCON5567 0 3.b.

c. With original amounts of more than $250,000 through $1,000,000................................ RCON5568 0 RCON5569 0 3.c.

4. Number and amount currently outstanding of "Commercial and industrial loans to U.S.
4.
addressees" in domestic offices reported in Schedule RC-C, part I, item 4.a, column B:
a. With original amounts of $100,000 or less..................................................................... RCON5570 64969 RCON5571 147,145 4.a.

b. With original amounts of more than $100,000 through $250,000................................... RCON5572 0 RCON5573 0 4.b.

c. With original amounts of more than $250,000 through $1,000,000................................ RCON5574 0 RCON5575 0 4.c.

Dollar amounts in thousands

5. Not applicable 5.

6. Not applicable 6.

(Column A) Number of Loans (Column B) Amount Currently

Dollar amounts in thousands Outstanding
7. Number and amount currently outstanding of "Loans secured by farmland (including farm
residential and other improvements)" in domestic offices reported in Schedule RC-C, part I, 7.
item 1.b, column B:
a. With original amounts of $100,000 or less..................................................................... RCON5578 0 RCON5579 0 7.a.

b. With original amounts of more than $100,000 through $250,000................................... RCON5580 0 RCON5581 0 7.b.

c. With original amounts of more than $250,000 through $500,000................................... RCON5582 0 RCON5583 0 7.c.

8. Number and amount currently outstanding of "Loans to finance agricultural production and
other loans to farmers" in domestic offices reported in Schedule RC-C, part I, item 3, column 8.
B:
a. With original amounts of $100,000 or less..................................................................... RCON5584 0 RCON5585 0 8.a.

b. With original amounts of more than $100,000 through $250,000................................... RCON5586 0 RCON5587 0 8.b.

c. With original amounts of more than $250,000 through $500,000................................... RCON5588 0 RCON5589 0 8.c.
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Schedule RC-D - Trading Assets and Liabilities(Form Type - 031)

Schedule RC-D is to be completed by banks that reported total trading assets of $10 million or more in any of the four preceding calendar quarters, and all banks meeting
the FDIC's definition of a large or highly complex institution for deposit insurance assessment purposes.

Dollar amounts in thousands Consolidated Bank

1. U.S. Treasury securities............................................................................................................................................... RCFD3531 0 1.

2. U.S. Government agency obligations (exclude mortgage-backed securities).............................................................. RCFD3532 0 2.

3. Securities issued by states and political subdivisions in the U.S................................................................................. RCFD3533 0 3.

4. Mortgage-backed securities (MBS): 4.

a. Residential mortgage pass-through securities issued or guaranteed by FNMA, FHLMC, or GNMA................... RCFDG379 0 4.a.

b. Other residential MBS issued or guaranteed by U.S. Government agencies or sponsored agencies (include
1 RCFDG380 0 4.b.
CMOs, REMICs, and stripped MBS) ......................................................................................................................
c. All other residential MBS...................................................................................................................................... RCFDG381 0 4.c.
1 RCFDK197 0 4.d.
d. Commercial MBS issued or guaranteed by U.S. Government agencies or sponsored agencies .......................
e. All other commercial MBS.................................................................................................................................... RCFDK198 0 4.e.

5. Other debt securities: 5.

a. Structured financial products................................................................................................................................ RCFDHT62 0 5.a.

b. All other debt securities........................................................................................................................................ RCFDG386 0 5.b.

6. Loans: 6.

a. Loans secured by real estate 6.a.

1. Loans secured by 1-4 family residential properties....................................................................................... RCFDHT63 0 6.a.1.

2. All other loans secured by real estate........................................................................................................... RCFDHT64 0 6.a.2.

b. Commercial and industrial loans.......................................................................................................................... RCFDF614 0 6.b.

c. Loans to individuals for household, family, and other personal expenditures (i.e., consumer loans) (includes
RCFDHT65 0 6.c.
purchased paper).....................................................................................................................................................
d. Other loans........................................................................................................................................................... RCFDF618 0 6.d.

7. Not appliable 7.

8. Not applicable 8.

9. Other trading assets.................................................................................................................................................... RCFD3541 0 9.

10. Not applicable 10.

11. Derivatives with a positive fair value.......................................................................................................................... RCFD3543 0 11.

12. Total trading assets (sum of items 1 through 11) (total of column A must equal Schedule RC, item 5).................... RCFD3545 0 12.

13. Not available 13.

a. Liability for short positions.................................................................................................................................... RCFD3546 0 13.a.

b. Other trading liabilities.......................................................................................................................................... RCFDF624 0 13.b.

14. Derivatives with a negative fair value......................................................................................................................... RCFD3547 0 14.

15. Total trading liabilities (sum of items 13.a through 14) (total of column A must equal Schedule RC, item 15).......... RCFD3548 0 15.

1. Unpaid principal balance of loans measured at fair value (reported in Schedule RC-D, items 6.a through 6.d): M.1.

a. Loans secured by real estate M.1.a.

1. Loans secured by 1-4 family residential properties....................................................................................... RCFDHT66 0 M.1.a.1.

2. All other loans secured by real estate........................................................................................................... RCFDHT67 0 M.1.a.2.

b. Commercial and industrial loans.......................................................................................................................... RCFDF632 0 M.1.b.

c. Loans to individuals for household, family, and other personal expenditures (i.e., consumer loans) (includes
RCFDHT68 0 M.1.c.
purchased paper).....................................................................................................................................................
d. Other loans........................................................................................................................................................... RCFDF636 0 M.1.d.

Memorandum items 2 through 10 are to be completed by banks with $10 billion or more in total trading assets.
M.2.
1
2. Loans measured at fair value that are past due 90 days or more:
a. Fair value.............................................................................................................................................................. RCFDF639 NR M.2.a.

b. Unpaid principal balance...................................................................................................................................... RCFDF640 NR M.2.b.

1. U.S. Government agencies include, but are not limited to, such agencies as the Government National Mortgage Association (GNMA), the Federal Deposit Insurance Corporation (FDIC), and
the National Credit Union Administration (NCUA). U.S. Government-sponsored agencies include, but are not limited to, such agencies as the Federal Home Loan Mortgage Corporation (FHLMC)
and the Federal National Mortgage Association (FNMA).
1. The $10 billion trading asset-size test is based on total trading assets reported on the June 30, 2022, Report of Condition.
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Dollar amounts in thousands Consolidated Bank

Memorandum items 3 through 10 are to be completed by banks with $10 billion or more in total trading assets.
3. Structured financial products by underlying collateral or reference assets (for each column, sum of Memorandum M.3.
items 3.a through 3.g must equal Schedule RC-D, sum of items 5.a.(1) through (3)):
a. Trust preferred securities issued by financial institutions...................................................................................... RCFDG299 NR M.3.a.

b. Trust preferred securities issued by real estate investment trusts........................................................................ RCFDG332 NR M.3.b.

c. Corporate and similar loans................................................................................................................................. RCFDG333 NR M.3.c.

d. 1-4 family residential MBS issued or guaranteed by U.S. government-sponsored enterprises (GSEs)............... RCFDG334 NR M.3.d.

e. 1-4 family residential MBS not issued or guaranteed by GSEs............................................................................ RCFDG335 NR M.3.e.

f. Diversified (mixed) pools of structured financial products..................................................................................... RCFDG651 NR M.3.f.

g. Other collateral or reference assets..................................................................................................................... RCFDG652 NR M.3.g.

4. Pledged trading assets: M.4.

a. Pledged securities................................................................................................................................................ RCFDG387 NR M.4.a.

b. Pledged loans....................................................................................................................................................... RCFDG388 NR M.4.b.

Dollar amounts in thousands

5. Asset-backed securities: M.5.

a. Credit card receivables......................................................................................................................................... RCFDF643 NR M.5.a.

b. Home equity lines................................................................................................................................................. RCFDF644 NR M.5.b.

c. Automobile loans.................................................................................................................................................. RCFDF645 NR M.5.c.

d. Other consumer loans.......................................................................................................................................... RCFDF646 NR M.5.d.

e. Commercial and industrial loans.......................................................................................................................... RCFDF647 NR M.5.e.

f. Other..................................................................................................................................................................... RCFDF648 NR M.5.f.

6. Retained beneficial interests in securitizations (first-loss or equity tranches) M.6.

7. Equity securities (included in Schedule RC-D, item 9, above): M.7.

a. Readily determinable fair values.......................................................................................................................... RCFDF652 NR M.7.a.

b. Other.................................................................................................................................................................... RCFDF653 NR M.7.b.

8. Loans pending securitization....................................................................................................................................... RCFDF654 NR M.8.

9. Other trading assets (itemize and describe amounts included in Schedule RC-D, item 9, that are greater than
1 M.9.
$1,000,000 and exceed 25% of the item):
a. Disclose component and the dollar amount of that component: M.9.a.

1. Describe component..................................................................................................................................... TEXTF655 NR M.9.a.1.

2. Amount of component................................................................................................................................... RCFDF655 NR M.9.a.2.

b. Disclose component and the dollar amount of that component: M.9.b.

(TEXTF656) NR RCFDF656 NR M.9.b.1.

c. Disclose component and the dollar amount of that component: M.9.c.

(TEXTF657) NR RCFDF657 NR M.9.c.1.

10. Other trading liabilities (itemize and describe amounts included in Schedule RC-D, item 13.b, that are greater than
M.10.
$1,000,000 and exceed 25% of the item):
a. Disclose component and the dollar amount of that component: M.10.a.

1. Describe component..................................................................................................................................... TEXTF658 NR M.10.a.1.

2. Amount of component................................................................................................................................... RCFDF658 NR M.10.a.2.

b. Disclose component and the dollar amount of that component: M.10.b.

(TEXTF659) NR RCFDF659 NR M.10.b.1.

c. Disclose component and the dollar amount of that component: M.10.c.

(TEXTF660) NR RCFDF660 NR M.10.c.1.

1. Exclude equity securities.

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Schedule RC-E Part I - Deposits in Domestic Offices(Form Type - 031)

(Column A) Transaction (Column B) Transaction (Column C)
Accounts Total Accounts Memo: Total Nontransaction Accounts
Transaction accounts demand deposits Total nontransaction
(including total demand (included in column A) accounts (including
Dollar amounts in thousands deposits) MMDAs)

Deposits of:
1. Individuals, partnerships, and corporations (include all certified and official
RCONB549 2,937,329 RCONB550 109,686,915 1.
checks).............................................................................................................
2. U.S. Government.......................................................................................... RCON2202 0 RCON2520 0 2.

3. States and political subdivisions in the U.S.................................................. RCON2203 309 RCON2530 0 3.

4. Commercial banks and other depository institutions in the U.S................... RCONB551 51 RCONB552 0 4.

5. Banks in foreign countries............................................................................ RCON2213 0 RCON2236 0 5.

6. Foreign governments and official institutions (including foreign central

RCON2216 0 RCON2377 0 6.
banks)...............................................................................................................
7. Total (sum of items 1 through 6) (sum of columns A and C must equal
RCON2215 2,937,689 RCON2210 2,097,336 RCON2385 109,686,915 7.
Schedule RC, item 13.a)..................................................................................
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Dollar amounts in thousands

1. Selected components of total deposits (i.e., sum of item 7, columns A and C): M.1.

a. Total Individual Retirement Accounts (IRAs) and Keogh Plan accounts.............................................................. RCON6835 3,099,281 M.1.a.

b. Total brokered deposits......................................................................................................................................... RCON2365 23,730,452 M.1.b.

2 RCONHK05 23,730,452 M.1.c.
c. Brokered deposits of $250,000 or less (fully insured brokered deposits) ...........................................................
d. Maturity data for brokered deposits: M.1.d.

1. Brokered deposits of $250,000 or less with a remaining maturity of one year or less (included in Memorandum
RCONHK06 11,093,649 M.1.d.1.
item 1.c above).................................................................................................................................................
2. Not applicable M.1.d.2.

3. Brokered deposits of more than $250,000 with a remaining maturity of one year or less (included in
RCONK220 0 M.1.d.3.
Memorandum item 1.b above)..........................................................................................................................
e. Preferred deposits (uninsured deposits of states and political subdivisions in the U.S. reported in item 3 above
RCON5590 0 M.1.e.
which are secured or collateralized as required under state law) (to be completed for the December report only).
f. Estimated amount of deposits obtained through the use of deposit listing services that are not brokered
RCONK223 13,306,037 M.1.f.
deposits....................................................................................................................................................................
g. Total reciprocal deposits (as of the report date)................................................................................................... RCONJH83 0 M.1.g.

Memorandum items 1.h.(1)(a), 1.h.(2)(a), 1.h.(3)(a), and 1.h.(4)(a) are to be completed by banks with $100 billion or more in total
assets M.1.h.
h. Sweep deposits:
1. Fully insured, affiliate sweep deposits........................................................................................................... RCONMT87 0 M.1.h.1.

a. Fully insured, affiliate, retail sweep deposits.......................................................................................... RCONMT88 0 M.1.h.1.a.

2. Not fully insured, affiliate sweep deposits..................................................................................................... RCONMT89 0 M.1.h.2.

a. Not fully insured, affiliate, retail sweep deposits.................................................................................... RCONMT90 0 M.1.h.2.a.

3. Fully insured, non-affiliate sweep deposits................................................................................................... RCONMT91 3,481,620 M.1.h.3.

a. Fully insured, non-affiliate, retail sweep deposits.................................................................................. RCONMT92 3,481,620 M.1.h.3.a.

4. Not fully insured, non-affiliate sweep deposits.............................................................................................. RCONMT93 0 M.1.h.4.

a. Not fully insured, non-affiliate, retail sweep deposits............................................................................. RCONMT94 0 M.1.h.4.a.

i. Total sweep deposits that are not brokered deposits............................................................................................. RCONMT95 840,352 M.1.i.

2. Components of total nontransaction accounts (sum of Memorandum items 2.a through 2.d must equal item 7, column
M.2.
C above):
a. Savings deposits: M.2.a.

1. Money market deposit accounts (MMDAs)................................................................................................... RCON6810 10,860,864 M.2.a.1.

2. Other savings deposits (excludes MMDAs).................................................................................................. RCON0352 53,585,812 M.2.a.2.

b. Total time deposits of less than $100,000............................................................................................................ RCON6648 33,727,533 M.2.b.

c. Total time deposits of $100,000 through $250,000............................................................................................... RCONJ473 8,510,253 M.2.c.

d. Total time deposits of more than $250,000........................................................................................................... RCONJ474 3,002,453 M.2.d.

e. Individual Retirement Accounts (IRAs) and Keogh Plan accounts of $100,000 or more included in Memorandum
RCONF233 1,220,689 M.2.e.
items 2.c and 2.d above...........................................................................................................................................
3. Maturity and repricing data for time deposits of $250,000 or less: M.3.

a. Time deposits of $250,000 or less with a remaining maturity or next repricing date of: M.3.a.

1. Three months or less.................................................................................................................................... RCONHK07 4,822,135 M.3.a.1.

2. Over three months through 12 months......................................................................................................... RCONHK08 18,710,722 M.3.a.2.

3. Over one year through three years............................................................................................................... RCONHK09 11,762,832 M.3.a.3.

4. Over three years........................................................................................................................................... RCONHK10 6,942,097 M.3.a.4.

b. Time deposits of $250,000 or less with a REMAINING MATURITY of one year or less (included in Memorandum
3 RCONHK11 23,532,857 M.3.b.
items 3.a.(1) and 3.a.(2) above) .............................................................................................................................
4. Maturity and repricing data for time deposits of more than $250,000: M.4.

a. Time deposits of more than $250,000 with a remaining maturity or next repricing date of: M.4.a.

1. Three months or less.................................................................................................................................... RCONHK12 463,135 M.4.a.1.

2. Over three months through 12 months......................................................................................................... RCONHK13 1,565,043 M.4.a.2.

3. Over one year through three years............................................................................................................... RCONHK14 518,618 M.4.a.3.

4. Over three years........................................................................................................................................... RCONHK15 455,657 M.4.a.4.

2. The dollar amount used as the basis for reporting in Memorandum item 1.c reflects the deposit insurance limit in effect on the report date.
3. Report both fixed- and floating-rate time deposits by remaining maturity. Exclude floating rate time deposits with a next repricing date of one year or less that have a remaining maturity of over
one year.
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Dollar amounts in thousands

b. Time deposits of more than $250,000 with a REMAINING MATURITY of one year or less (included in
3 RCONK222 2,028,178 M.4.b.
Memorandum items 4.a.(1) and 4.a.(2) above) ......................................................................................................
5. Does your institution offer one or more consumer deposit account products, i.e., transaction account or nontransaction
RCONP752 Yes M.5.
savings account deposit products intended primarily for individuals for personal, household, or family use?................
Memorandum items 6 and 7 are to be completed by institutions with $1 billion or more in total assets that answered "Yes" to Memorandum
item 5 above.
M.6.
6. Components of total transaction account deposits of individuals, partnerships, and corporations (sum of Memorandum
5
items 6.a and 6.b must be less than or equal to item 1, column A, above):
a. Total deposits in those noninterest-bearing transaction account deposit products intended primarily for individuals
RCONP753 1,291,113 M.6.a.
for personal, household, or family use.....................................................................................................................
b. Total deposits in those interest-bearing transaction account deposit products intended primarily for individuals
RCONP754 0 M.6.b.
for personal, household, or family use.....................................................................................................................
7. Components of total nontransaction account deposits of individuals, partnerships, and corporations (sum of
Memorandum items 7.a.(1), 7.a.(2), 7.b.(1), and 7.b.(2) plus all time deposits of individuals, partnerships, and M.7.
corporations must equal item 1, column C, above):
a. Money market deposit accounts (MMDAs) of individuals, partnerships, and corporations (sum of Memorandum
M.7.a.
items 7.a.(1) and 7.a.(2) must be less than or equal to Memorandum item 2.a.(1) above):
1. Total deposits in those MMDA deposit products intended primarily for individuals for personal, household,
RCONP756 5,186,046 M.7.a.1.
or family use......................................................................................................................................................
2. Deposits in all other MMDAs of individuals, partnerships, and corporations................................................ RCONP757 5,674,818 M.7.a.2.

b. Other savings deposit accounts of individuals, partnerships, and corporations (sum of Memorandum items
M.7.b.
7.b.(1) and 7.b.(2) must be less than or equal to Memorandum item 2.a.(2) above):
1. Total deposits in those other savings deposit account deposit products intended primarily for individuals
RCONP758 53,585,812 M.7.b.1.
for personal, household, or family use..............................................................................................................
2. Deposits in all other savings deposit accounts of individuals, partnerships, and corporations..................... RCONP759 0 M.7.b.2.

Schedule RC-E Part II - Deposits in Foreign Offices including Edge and Agreement
subsidiaries and IBFs(Form Type - 031)
Dollar amounts in thousands
Deposits of:
1. Individuals, partnerships, and corporations (include all certified and official checks)................................................. RCFNB553 0 1.

2. U.S. banks (including IBFs and foreign branches of U.S. banks) and other U.S. depository institutions..................... RCFNB554 0 2.

3. Foreign banks (including U.S. branches and agencies of foreign banks, including their IBFs).................................... RCFN2625 0 3.

4. Foreign governments and official institutions (including foreign central banks)........................................................... RCFN2650 0 4.

5. U.S. Government and states and political subdivisions in the U.S............................................................................... RCFNB555 0 5.

6. Total............................................................................................................................................................................. RCFN2200 0 6.

1. Time deposits with a remaining maturity of one year or less (included in Schedule RC, item 13.b)........................... RCFNA245 NR M.1.

5. The $1 billion asset size test is based on the total assets reported on the June 30, 2022, Report of Condition.
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Schedule RC-F - Other Assets(Form Type - 031)

Dollar amounts in thousands
2
1. Accrued interest receivable ........................................................................................................................................ RCFDB556 1,450,157 1.

3 RCFD2148 2,548,308 2.
2. Net deferred tax assets ..............................................................................................................................................
4 RCFDHT80 0 3.
3. Interest-only strips receivable (not in the form of a security) .....................................................................................
5 RCFD1752 51,841 4.
4. Equity investments without readily determinable fair values ......................................................................................
5. Life insurance assets: 5.

a. General account life insurance assets.................................................................................................................. RCFDK201 0 5.a.

b. Separate account life insurance assets................................................................................................................ RCFDK202 0 5.b.

c. Hybrid account life insurance assets.................................................................................................................... RCFDK270 0 5.c.

6. All other assets (itemize and describe amounts greater than $100,000 that exceed 25% of this item)...................... RCFD2168 417,455 6.

a. Prepaid expenses................................................................................................................................................. RCFD2166 NR 6.a.

b. Repossessed personal property (including vehicles)........................................................................................... RCFD1578 NR 6.b.

c. Derivatives with a positive fair value held for purposes other than trading........................................................... RCFDC010 NR 6.c.

d. Not applicable 6.d.

e. Computer software............................................................................................................................................... RCFDFT33 NR 6.e.

f. Accounts receivable.............................................................................................................................................. RCFDFT34 NR 6.f.

g. Receivables from foreclosed government-guaranteed mortgage loans............................................................... RCFDFT35 NR 6.g.

h. Disclose component and the dollar amount of that component: 6.h.

1. Describe component..................................................................................................................................... TEXT3549 NR 6.h.1.

2. Amount of component................................................................................................................................... RCFD3549 NR 6.h.2.

i. Disclose component and the dollar amount of that component: 6.i.

1. Describe component..................................................................................................................................... TEXT3550 Click here for value 6.i.1.

2. Amount of component................................................................................................................................... RCFD3550 142,219 6.i.2.

j. Disclose component and the dollar amount of that component: 6.j.

1. Describe component..................................................................................................................................... TEXT3551 Click here for value 6.j.1.

2. Amount of component................................................................................................................................... RCFD3551 166,311 6.j.2.

7. Total (sum of items 1 through 6) (must equal Schedule RC, item 11)......................................................................... RCFD2160 4,467,761 7.

(TEXT3550) Investment Receivable

(TEXT3551) Income Tax Receivable

2. Include accrued interest receivable on loans, leases, debt securities, and other interest-bearing assets. Exclude accrued interest receivables on financial assets that are reported elsewhere on
the balance sheet.
3. See discussion of deferred income taxes in Glossary entry on "income taxes."
4. Report interest-only strips receivable in the form of a security as available-for-sale securities in Schedule RC, item 2.b, or as trading assets in Schedule RC, item 5, as appropriate.
5. Include Federal Reserve stock, Federal Home Loan Bank stock, and bankers' bank stock.
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Schedule RC-G - Other Liabilities(Form Type - 031)

Dollar amounts in thousands
1. Not available 1.

6 RCON3645 300,902 1.a.

a. Interest accrued and unpaid on deposits in domestic offices .............................................................................
b. Other expenses accrued and unpaid (includes accrued income taxes payable).................................................. RCFD3646 3,092,156 1.b.
2 RCFD3049 0 2.
2. Net deferred tax liabilities ...........................................................................................................................................
7 RCFDB557 41,000 3.
3. Allowance for credit losses on off-balance sheet credit exposures ............................................................................
4. All other liabilities (itemize and describe amounts greater than $100,000 that exceed 25 percent of this item)......... RCFD2938 2,391,131 4.

a. Accounts payable................................................................................................................................................. RCFD3066 0 4.a.

b. Deferred compensation liabilities.......................................................................................................................... RCFDC011 0 4.b.

c. Dividends declared but not yet payable................................................................................................................ RCFD2932 0 4.c.

d. Derivatives with a negative fair value held for purposes other than trading......................................................... RCFDC012 0 4.d.

e. Operating lease liabilities..................................................................................................................................... RCFDLB56 0 4.e.

f. Disclose component and the dollar amount of that component: 4.f.

1. Describe component..................................................................................................................................... TEXT3552 Click here for value 4.f.1.

2. Amount of component................................................................................................................................... RCFD3552 2,131,842 4.f.2.

g. Disclose component and the dollar amount of that component: 4.g.

1. Describe component..................................................................................................................................... TEXT3553 NR 4.g.1.

2. Amount of component................................................................................................................................... RCFD3553 0 4.g.2.

h. Disclose component and the dollar amount of that component: 4.h.

1. Describe component..................................................................................................................................... TEXT3554 NR 4.h.1.

2. Amount of component................................................................................................................................... RCFD3554 0 4.h.2.

5. Total............................................................................................................................................................................. RCFD2930 5,825,189 5.

(TEXT3552) Payment Services

6. For savings banks, include "dividends" accrued and unpaid on deposits.

2. See discussion of deferred income taxes in Glossary entry on "income taxes."
7. Institutions that have adopted ASU 2016-13 should report in Schedule RC-G, item 3 the allowance for credit losses on those off-balance sheet credit exposures that are not unconditionally
cancelable.
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Schedule RC-H - Selected Balance Sheet Items for Domestic Offices(Form Type - 031)
To be completed only by banks with foreign offices.

Dollar amounts in thousands

1. Not applicable 1.

2. Not applicable 2.

3. Securities purchased under agreements to resell....................................................................................................... RCONB989 NR 3.

4. Securities sold under agreements to repurchase........................................................................................................ RCONB995 NR 4.

5. Other borrowed money................................................................................................................................................ RCON3190 NR 5.

EITHER
RCON2163 NR 6.
6. Net due from own foreign offices, Edge and Agreement subsidiaries, and IBFs.........................................................
OR
RCON2941 NR 7.
7. Net due to own foreign offices, Edge and Agreement subsidiaries, and IBFs.............................................................
8. Total assets (excludes net due from foreign offices, Edge and Agreement subsidiaries, and IBFs)............................ RCON2192 NR 8.

9. Total liabilities (excludes net due to foreign offices, Edge and Agreement subsidiaries, and IBFs)............................. RCON3129 NR 9.

(Column A) Amortized Cost of (Column B) Fair Value of

Dollar amounts in thousands Held-to-Maturity Securities Available-for-Sale Securities

10. U.S. Treasury securities....................................................................................................... RCON0211 NR RCON1287 NR 10.

11. U.S. Government agency obligations (exclude mortgage-backed securities)...................... RCON8492 NR RCON8495 NR 11.

12. Securities issued by states and political subdivisions in the U.S......................................... RCON8496 NR RCON8499 NR 12.

13. Mortgage-backed securities (MBS): 13.

a. Mortgage pass-through securities: 13.a.

1. Issued or guaranteed by FNMA, FHLMC, or GNMA............................................... RCONG389 NR RCONG390 NR 13.a.1.

2. Other mortgage pass-through securities................................................................. RCON1709 NR RCON1713 NR 13.a.2.

b. Other mortgage-backed securities (include CMOs, REMICs, and stripped MBS): 13.b.
1 RCONG393 NR RCONG394 NR 13.b.1.
1. Issued or guaranteed by U.S. Government agencies or sponsored agencies .......
2. All other mortgage-backed securities...................................................................... RCON1733 NR RCON1736 NR 13.b.2.

14. Other domestic debt securities (include domestic structured financial products and domestic
RCONG397 NR RCONG398 NR 14.
asset-backed securities)............................................................................................................
15. Other foreign debt securities (include foreign structured financial products and foreign
RCONG399 NR RCONG400 NR 15.
asset-backed securities)............................................................................................................
16. Not applicable. 16.

17. Total held-to-maturity and available-for-sale debt securities (sum of items 10 through 15).. RCON1754 NR RCON1773 NR 17.

Dollar amounts in thousands

18. Equity investments not held for trading: 18.

4 RCONJA22 NR 18.a.
a. Equity securities with readily determinable fair values .......................................................................................
b. Equity investments without readily determinable fair values................................................................................ RCON1752 NR 18.b.

Items 19, 20 and 21 are to be completed by banks that reported total trading assets of $10 million or more in any of the four preceding
calendar quarters and all banks meeting the FDIC's definition of a large or highly complex institution for deposit insurance assessment
purposes. RCON3545 NR 19.

19. Total trading assets....................................................................................................................................................

20. Total trading liabilities................................................................................................................................................. RCON3548 NR 20.

21. Total loans held for trading......................................................................................................................................... RCONHT71 NR 21.

tem 22 is to be completed by banks that: (1) have elected to report financial instruments or servicing assets and liabilities at fair value
under a fair value option with changes in fair value recognized in earnings, or (2) are required to complete Schedule RC-D, Trading Assets
and Liabilities. RCONJF75 NR 22.

22. Total amount of fair value option loans held for investment and held for sale............................................................

1. U.S. Government agencies include, but are not limited to, such agencies as the Government National Mortgage Association (GNMA), the Federal Deposit Insurance Corporation (FDIC), and
the National Credit Union Administration (NCUA). U.S. Government-sponsored agencies include, but are not limited to, such agencies as the Federal Home Loan Mortgage Corporation (FHLMC)
and the Federal National Mortgage Association (FNMA).
4. Item 18.a is to be completed by all institutions. See the instructions for this item and the Glossary entry for "Securities Activities" for further detail on accounting for investments in equity securities.
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Schedule RC-I - Assets and Liabilities of IBFs(Form Type - 031)

To be completed only by banks with IBFs and other "foreign" offices.

Dollar amounts in thousands

1. Total IBF assets of the consolidated bank (component of Schedule RC, item 12)...................................................... RCFN2133 NR 1.

2. Total IBF liabilities (component of Schedule RC, item 21)........................................................................................... RCFN2898 NR 2.

Schedule RC-K - Quarterly Averages(Form Type - 031)

Dollar amounts in thousands
1. Interest-bearing balances due from depository institutions......................................................................................... RCFD3381 8,345,048 1.

2 RCFDB558 12,997,731 2.
2. U.S. Treasury securities and U.S. Government agency obligations (excluding mortgage-backed securities) ............
2 RCFDB559 744,630 3.
3. Mortgage-backed securities .......................................................................................................................................
2 RCFDB560 52,203 4.
4. All other debt securities and equity securities with readily determinable fair values not held for trading ...................
5. Federal funds sold and securities purchased under agreements to resell.................................................................. RCFD3365 0 5.

6. Loans: 6.

a. Loans in domestic offices: 6.a.

1. Total loans..................................................................................................................................................... RCON3360 125,383,828 6.a.1.

2. Loans secured by real estate: 6.a.2.

a. Loans secured by 1-4 family residential properties............................................................................... RCON3465 5,598,516 6.a.2.a.

b. All other loans secured by real estate.................................................................................................... RCON3466 0 6.a.2.b.

3. Loans to finance agricultural production and other loans to farmers ........................................................... RCON3386 0 6.a.3.

4. Commercial and industrial loans................................................................................................................... RCON3387 151,845 6.a.4.

5. Loans to individuals for household, family, and other personal expenditures: 6.a.5.

a. Credit cards........................................................................................................................................... RCONB561 99,455,454 6.a.5.a.

b. Other (includes revolving credit plans other than credit cards, automobile loans, and other consumer
RCONB562 20,122,756 6.a.5.b.
loans).........................................................................................................................................................
b. Total loans in foreign offices, Edge and Agreement subsidiaries, and IBFs......................................................... RCFN3360 NR 6.b.

Item 7 is to be completed by banks with total trading assets of $10 million or more in any of the four preceding calendar quarters and all
banks meeting the FDIC's definition of a large or highly complex institution for deposit insurance assessment purposes. RCFD3401 0 7.
7. Trading assets..............................................................................................................................................................
8. Lease financing receivables (net of unearned income)............................................................................................... RCFD3484 0 8.
4 RCFD3368 144,758,333 9.
9. Total assets ................................................................................................................................................................
10. Interest-bearing transaction accounts in domestic offices (interest-bearing demand deposits, NOW accounts, ATS
RCON3485 1,185,829 10.
accounts, and telephone and preauthorized transfer accounts)......................................................................................
11. Nontransaction accounts in domestic offices: 11.

a. Savings deposits (includes MMDAs).................................................................................................................... RCONB563 63,967,704 11.a.

b. Time deposits of $250,000 or less........................................................................................................................ RCONHK16 39,498,576 11.b.

c. Time deposits of more than $250,000.................................................................................................................. RCONHK17 2,851,386 11.c.

12. Interest-bearing deposits in foreign offices, EDGE and Agreement subsidiaries, and IBFs...................................... RCFN3404 NR 12.

13. Federal funds purchased and securities sold under agreements to repurchase....................................................... RCFD3353 3,414 13.

14. Other borrowed money (includes mortgage indebtedness and obligations under capitalized leases)...................... RCFD3355 15,641,555 14.

2. Quarterly averages for all debt securities should be based on amortized cost.
2. Quarterly averages for all debt securities should be based on amortized cost.
4. The quarterly average for total assets should reflect securities not held for trading as follows: a) Debt securities at amortized cost, b) Equity securities with readily determinable fair values at
fair value, c) Equity investments without readily determinable fair values, their balance sheet carrying values (i.e., fair value or, if elected, cost minus impairment, if any, plus or minus changes
resulting from observable price changes).
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Schedule RC-L - Derivatives and Off-Balance Sheet Items(Form Type - 031)

Please read carefully the instructions for the preparation of Schedule RC-L. Some of the amounts reported in Schedule RC-L are regarded as volume indicators and not
necessarily as measures of risk.

Dollar amounts in thousands

1. Unused commitments: 1.

a. Revolving, open-end lines secured by 1-4 family residential properties, i.e., home equity lines.......................... RCFD3814 0 1.a.

Item 1.a.(1) is to be completed for the December report only.

RCONHT72 0 1.a.1.
1. Unused commitments for reverse mortgages outstanding that are held for investment in domestic offices..
b. Credit card lines (Sum of items 1.b.(1) and 1.b.(2) must equal item 1.b)............................................................. RCFD3815 229,056,856 1.b.

Items 1.b.(1) and 1.b.(2) are to be completed by banks with either $300 million or more in total assets or $300 million or more
in credit card lines. (Sum of items 1.b.(1) and 1.b.(2) must equal item 1.b)
Items 1.b.(1) and 1.b.(2) are to be completed semiannually in the June and December reports only. RCFDJ455 228,302,314 1.b.1.

1. Unused consumer credit card lines...............................................................................................................

2. Other unused credit card lines...................................................................................................................... RCFDJ456 754,542 1.b.2.

c. Commitments to fund commercial real estate, construction, and land development loans: 1.c.

1. Secured by real estate: 1.c.1.

a. 1-4 family residential construction loan commitments........................................................................... RCFDF164 0 1.c.1.a.

b. Commercial real estate, other construction loan, and land development loan commitments................ RCFDF165 0 1.c.1.b.

2. Not secured by real estate............................................................................................................................ RCFD6550 0 1.c.2.

d. Securities underwriting......................................................................................................................................... RCFD3817 0 1.d.

e. Other unused commitments: 1.e.

1. Commercial and industrial loans................................................................................................................... RCFDJ457 0 1.e.1.

2. Loans to financial institutions........................................................................................................................ RCFDJ458 35,075 1.e.2.

3. All other unused commitments...................................................................................................................... RCFDJ459 643,803 1.e.3.

2. Financial standby letters of credit and foreign office guarantees................................................................................. RCFD3819 0 2.

Item 2.a is to be completed by banks with $1 billion or more in total assets.

1
RCFD3820 0 2.a.
a. Amount of financial standby letters of credit conveyed to others ........................................................................
3. Performance standby letters of credit and foreign office guarantees........................................................................... RCFD3821 0 3.

Item 3.a is to be completed by banks with $1 billion or more in total assets.

1
RCFD3822 0 3.a.
a. Amount of performance standby letters of credit conveyed to others .................................................................
4. Commercial and similar letters of credit...................................................................................................................... RCFD3411 0 4.

5. Not applicable 5.

6. Securities lent and borrowed: 6.

a. Securities lent (including customers' securities lent where the customer is indemnified against loss by the
RCFD3433 0 6.a.
reporting bank).........................................................................................................................................................
b. Securities borrowed.............................................................................................................................................. RCFD3432 0 6.b.

(Column A) Sold Protection (Column B) Purchased

Dollar amounts in thousands Protection

7. Credit derivatives: 7.

a. Notional amounts: 7.a.

1. Credit default swaps................................................................................................ RCFDC968 0 RCFDC969 0 7.a.1.

2. Total return swaps................................................................................................... RCFDC970 0 RCFDC971 0 7.a.2.

3. Credit options.......................................................................................................... RCFDC972 0 RCFDC973 0 7.a.3.

4. Other credit derivatives........................................................................................... RCFDC974 0 RCFDC975 0 7.a.4.

b. Gross fair values: 7.b.

1. Gross positive fair value.......................................................................................... RCFDC219 0 RCFDC221 0 7.b.1.

2. Gross negative fair value......................................................................................... RCFDC220 0 RCFDC222 0 7.b.2.

 DISCOVER BANK FFIEC 031
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Dollar amounts in thousands

1 7.c.
c. Notional amounts by regulatory capital treatment:
1. Positions covered under the Market Risk Rule: 7.c.1.

a. Sold protection.............................................................................................................................................. RCFDG401 0 7.c.1.a.

b. Purchased protection.................................................................................................................................... RCFDG402 0 7.c.1.b.

2. All other positions: 7.c.2.

a. Sold protection.............................................................................................................................................. RCFDG403 0 7.c.2.a.

b. Purchased protection that is recognized as a guarantee for regulatory capital purposes............................. RCFDG404 0 7.c.2.b.

c. Purchased protection that is not recognized as a guarantee for regulatory capital purposes....................... RCFDG405 0 7.c.2.c.

(Column A) Remaining (Column B) Remaining (Column C) Remaining

Maturity of One Year or Maturity of Over One Year Maturity of Over Five
Dollar amounts in thousands Less Through Five Years Years

d. Notional amounts by remaining maturity: 7.d.

2 7.d.1.
1. Sold credit protection:
a. Investment grade............................................................................ RCFDG406 0 RCFDG407 0 RCFDG408 0 7.d.1.a.

b. Subinvestment grade...................................................................... RCFDG409 0 RCFDG410 0 RCFDG411 0 7.d.1.b.

3 7.d.2.
2. Purchased credit protection:
a. Investment grade............................................................................ RCFDG412 0 RCFDG413 0 RCFDG414 0 7.d.2.a.

b. Subinvestment grade...................................................................... RCFDG415 0 RCFDG416 0 RCFDG417 0 7.d.2.b.

1. The asset-size tests and the $300 million credit card lines test are based on the total assets and credit card lines reported in the June 30, 2022, Report of Condition.
1. The asset-size tests and the $300 million credit card lines test are based on the total assets and credit card lines reported in the June 30, 2022, Report of Condition.
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Dollar amounts in thousands

8. Spot foreign exchange contracts................................................................................................................................. RCFD8765 0 8.

9. All other off-balance sheet liabilities (exclude derivatives) (itemize and describe each component of this item over
RCFD3430 0 9.
25% of Schedule RC, item 27.a, "Total bank equity capital")..........................................................................................
a. Not applicable 9.a.

b. Commitments to purchase when-issued securities.............................................................................................. RCFD3434 0 9.b.

c. Standby letters of credit issued by another party (e.g., a Federal Home Loan Bank) on the bank's behalf......... RCFDC978 0 9.c.

d. Disclose component and the dollar amount of that component: 9.d.

1. Describe component..................................................................................................................................... TEXT3555 NR 9.d.1.

2. Amount of component................................................................................................................................... RCFD3555 0 9.d.2.

e. Disclose component and the dollar amount of that component: 9.e.

1. Describe component..................................................................................................................................... TEXT3556 NR 9.e.1.

2. Amount of component................................................................................................................................... RCFD3556 0 9.e.2.

f. Disclose component and the dollar amount of that component: 9.f.

(TEXT3557) NR RCFD3557 0 9.f.1.

10. All other off-balance sheet assets (exclude derivatives) (itemize and describe each component of this item over
RCFD5591 0 10.
25% of Schedule RC, item 27.a, "Total bank equity capital")..........................................................................................
a. Commitments to sell when-issued securities....................................................................................................... RCFD3435 0 10.a.

b. Disclose component and the dollar amount of that component: 10.b.

1. Describe component..................................................................................................................................... TEXT5592 NR 10.b.1.

2. Amount of component................................................................................................................................... RCFD5592 0 10.b.2.

c. Disclose component and the dollar amount of that component: 10.c.

1. Describe component..................................................................................................................................... TEXT5593 NR 10.c.1.

2. Amount of component................................................................................................................................... RCFD5593 0 10.c.2.

d. Disclose component and the dollar amount of that component: 10.d.

1. Describe component..................................................................................................................................... TEXT5594 NR 10.d.1.

2. Amount of component................................................................................................................................... RCFD5594 0 10.d.2.

e. Disclose component and the dollar amount of that component: 10.e.

1. Describe component..................................................................................................................................... TEXT5595 NR 10.e.1.

2. Amount of component................................................................................................................................... RCFD5595 0 10.e.2.

Items 11.a and 11.b are to be completed semiannually in the June and December reports only.
11.
11. Year-to-date merchant credit card sales volume:
a. Sales for which the reporting bank is the acquiring bank..................................................................................... RCFDC223 0 11.a.

b. Sales for which the reporting bank is the agent bank with risk............................................................................. RCFDC224 0 11.b.

1. Sum of items 7.c.(1)(a) and 7.c.(2)(a), must equal sum of items 7.a.(1) through (4), column A. Sum of items 7.c.(1)(b), 7.c.(2)(b), and 7.c.(2)(c) must equal sum of items 7.a.(1) through (4),
column B.
2. Sum of items 7.d.(1)(a) and (b), columns A through C, must equal sum of items 7.a.(1) through (4), column A.
3. Sum of items 7.d.(2)(a) and (b), columns A through C, must equal sum of items 7.a.(1) through (4), column B.
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(Column A) Interest (Column B) Foreign (Column C) Equity (Column D)

Rate Contracts Exchange Contracts Derivative Contracts Commodity and Other
Dollar amounts in thousands Contracts

12. Gross amounts (e.g., notional amounts): 12.

a. Futures contracts................................................................. RCFD8693 0 RCFD8694 0 RCFD8695 0 RCFD8696 0 12.a.

b. Forward contracts................................................................ RCFD8697 35,000 RCFD8698 0 RCFD8699 0 RCFD8700 0 12.b.

c. Exchange-traded option contracts: 12.c.

1. Written options............................................................. RCFD8701 0 RCFD8702 0 RCFD8703 0 RCFD8704 0 12.c.1.

2. Purchased options........................................................ RCFD8705 0 RCFD8706 0 RCFD8707 0 RCFD8708 0 12.c.2.

d. Over-the-counter option contracts: 12.d.

1. Written options............................................................. RCFD8709 0 RCFD8710 0 RCFD8711 0 RCFD8712 0 12.d.1.

2. Purchased options........................................................ RCFD8713 0 RCFD8714 0 RCFD8715 0 RCFD8716 0 12.d.2.

e. Swaps.................................................................................. RCFD3450 19,300,000 RCFD3826 0 RCFD8719 0 RCFD8720 0 12.e.

13. Total gross notional amount of derivative contracts held for

RCFDA126 0 RCFDA127 0 RCFD8723 0 RCFD8724 0 13.
trading.............................................................................................
14. Total gross notional amount of derivative contracts held for
RCFD8725 19,335,000 RCFD8726 0 RCFD8727 0 RCFD8728 0 14.
purposes other than trading............................................................
a. Interest rate swaps where the bank has agreed to pay a
RCFDA589 500,000 14.a.
fixed rate..................................................................................
15. Gross fair values of derivative contracts: 15.

a. Contracts held for trading: 15.a.

1. Gross positive fair value............................................... RCFD8733 0 RCFD8734 0 RCFD8735 0 RCFD8736 0 15.a.1.

2. Gross negative fair value.............................................. RCFD8737 0 RCFD8738 0 RCFD8739 0 RCFD8740 0 15.a.2.

b. Contracts held for purposes other than trading: 15.b.

1. Gross positive fair value............................................... RCFD8741 4,168 RCFD8742 0 RCFD8743 0 RCFD8744 0 15.b.1.

2. Gross negative fair value.............................................. RCFD8745 579 RCFD8746 0 RCFD8747 0 RCFD8748 0 15.b.2.

(Column A) (Column B) (Column C) (Column D) (Column E)

Banks and Hedge Funds Sovereign Corporations
Securities Firms Governments and All Other
Dollar amounts in thousands Counterparties
Item 16 is to be completed only by banks with total assets of $10 billion or more.
16.
1
16. Over-the counter derivatives:
RCFDG418 RCFDG420 RCFDG421 RCFDG422
16.a.
a. Net current credit exposure........................................................ 4,168 0 0 0

b. Fair value of collateral: 16.b.

RCFDG423 RCFDG425 RCFDG426 RCFDG427
16.b.1.
1. Cash - U.S. dollar................................................................ 0 0 0 0
RCFDG428 RCFDG430 RCFDG431 RCFDG432
16.b.2.
2. Cash - Other currencies...................................................... 0 0 0 0
RCFDG433 RCFDG435 RCFDG436 RCFDG437
16.b.3.
3. U.S. Treasury securities....................................................... 0 0 0 0
4. U.S. Government agency and U.S. Government-sponsored RCFDG438 RCFDG440 RCFDG441 RCFDG442
16.b.4.
agency debt securities............................................................ 0 0 0 0
RCFDG443 RCFDG445 RCFDG446 RCFDG447
16.b.5.
5. Corporate bonds................................................................. 0 0 0 0
RCFDG448 RCFDG450 RCFDG451 RCFDG452
16.b.6.
6. Equity securities.................................................................. 0 0 0 0
RCFDG453 RCFDG455 RCFDG456 RCFDG457
16.b.7.
7. All other collateral................................................................ 0 0 0 0
8. Total fair value of collateral (sum of items 16.b.(1) through RCFDG458 RCFDG460 RCFDG461 RCFDG462
16.b.8.
(7)).......................................................................................... 0 0 0 0

1. The $10 billion asset-size test is based on the total assets reported on the June 30, 2022, Report of Condition.
 DISCOVER BANK FFIEC 031
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Schedule RC-M - Memoranda(Form Type - 031)

Dollar amounts in thousands
1. Extensions of credit by the reporting bank to its executive officers, directors, principal shareholders, and their related
1.
interests as of the report date:
a. Aggregate amount of all extensions of credit to all executive officers, directors, principal shareholders, and their
RCFD6164 302 1.a.
related interests........................................................................................................................................................
b. Number of executive officers, directors, and principal shareholders to whom the amount of all extensions of
credit by the reporting bank (including extensions of credit to related interests) equals or exceeds the lesser of RCFD6165 0 1.b.
$500,000 or 5 percent of total capital as defined for this purpose in agency regulations........................................
2. Intangible assets: 2.

a. Mortgage servicing assets................................................................................................................................... RCFD3164 0 2.a.

1. Estimated fair value of mortgage servicing assets........................................................................................ RCFDA590 0 2.a.1.

b. Goodwill................................................................................................................................................................ RCFD3163 0 2.b.

c. All other intangible assets..................................................................................................................................... RCFDJF76 0 2.c.

d. Total (sum of items 2.a, 2.b, and 2.c) (must equal Schedule RC, item 10)........................................................... RCFD2143 0 2.d.

3. Other real estate owned: 3.

a. Construction, land development, and other land in domestic offices................................................................... RCON5508 0 3.a.

b. Farmland in domestic offices................................................................................................................................ RCON5509 0 3.b.

c. 1-4 family residential properties in domestic offices............................................................................................. RCON5510 345 3.c.

d. Multifamily (5 or more) residential properties in domestic offices......................................................................... RCON5511 0 3.d.

e. Nonfarm nonresidential properties in domestic offices........................................................................................ RCON5512 0 3.e.

f. In foreign offices.................................................................................................................................................... RCFN5513 NR 3.f.

g. Total (sum of items 3.a through 3.g) (must equal Schedule RC, item 7).............................................................. RCFD2150 345 3.g.

4. Cost of equity securities with readily determinable fair values not held for trading (the fair value of which is reported
1 RCFDJA29 43,241 4.
in Schedule RC, item 2.c) ..............................................................................................................................................
5. Other borrowed money: 5.

a. Federal Home Loan Bank advances: 5.a.

1 5.a.1.
1. Advances with a remaining maturity or next repricing date of:
a. One year or less.................................................................................................................................... RCFDF055 525,000 5.a.1.a.

b. Over one year through three years........................................................................................................ RCFDF056 0 5.a.1.b.

c. Over three years through five years....................................................................................................... RCFDF057 0 5.a.1.c.

d. Over five years....................................................................................................................................... RCFDF058 523,000 5.a.1.d.

2 RCFD2651 525,000 5.a.2.
2. Advances with a remaining maturity of one year or less (included in item 5.a.(1)(a) above) ......................
3. Structured advances (included in items 5.a.(1)(a) - (d) above)..................................................................... RCFDF059 0 5.a.3.

b. Other borrowings: 5.b.

3 5.b.1.
1. Other borrowings with a remaining maturity or next repricing date of:
a. One year or less.................................................................................................................................... RCFDF060 4,041,739 5.b.1.a.

b. Over one year through three years........................................................................................................ RCFDF061 9,864,594 5.b.1.b.

c. Over three years through five years....................................................................................................... RCFDF062 910,846 5.b.1.c.

d. Over five years....................................................................................................................................... RCFDF063 497,159 5.b.1.d.

4 RCFDB571 3,976,457 5.b.2.
2. Other borrowings with a remaining maturity of one year or less (included in item 5.b.(1)(a) above) ...........
c. Total (sum of items 5.a.(1)(a)-(d) and items 5.b.(1)(a)-(d)) (must equal Schedule RC, item 16).......................... RCFD3190 16,362,338 5.c.

6. Does the reporting bank sell private label or third party mutual funds and annuities?................................................ RCFDB569 No 6.

7. Assets under the reporting bank's management in proprietary mutual funds and annuities....................................... RCFDB570 0 7.

8. Internet Web site addresses and physical office trade names: 8.

a. Uniform Resource Locator (URL) of the reporting institution's primary Internet Web site (home page), if any
TEXT4087 Click here for value 8.a.
(Example: www.examplebank.com):........................................................................................................................

1. Item 4 is to be completed only by insured state banks that have been approved by the FDIC to hold grandfathered equity investments. See instructions for this item and the Glossary entry for
"Securities Activities" for further detail on accounting for investments in equity securities.
1. Report fixed-rate advances by remaining maturity and floating-rate advances by next repricing date.
2. Report both fixed- and floating-rate advances by remaining maturity. Exclude floating-rate advances with a next repricing date of one year or less that have a remaining maturity of over one
year.
3. Report fixed-rate other borrowings by remaining maturity and floating-rate other borrowings by next repricing date.
4. Report both fixed- and floating-rate other borrowings by remaining maturity. Exclude floating rate other borrowings with a next repricing date of one year or less that have a remaining maturity
of over one year.
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Dollar amounts in thousands

b. URLs of all other public-facing Internet Web sites that the reporting institution uses to accept or solicit deposits
1 8.b.
from the public, if any (Example: www.examplebank.biz):
1. URL 1............................................................................................................................................................ TE01N528 Click here for value 8.b.1.

2. URL 2............................................................................................................................................................ TE02N528 Click here for value 8.b.2.

3. URL 3............................................................................................................................................................ TE03N528 Click here for value 8.b.3.

4. URL 4............................................................................................................................................................ TE04N528 Click here for value 8.b.4.

5. URL 5............................................................................................................................................................ TE05N528 Click here for value 8.b.5.

6. URL 6............................................................................................................................................................ TE06N528 Click here for value 8.b.6.

7. URL 7............................................................................................................................................................ TE07N528 NR 8.b.7.

8. URL 8............................................................................................................................................................ TE08N528 NR 8.b.8.

9. URL 9............................................................................................................................................................ TE09N528 NR 8.b.9.

10. URL 10........................................................................................................................................................ TE10N528 NR 8.b.10.

c. Trade names other than the reporting institution's legal title used to identify one or more of the institution's
8.c.
physical offices at which deposits are accepted or solicited from the public, if any:
1. Trade name 1................................................................................................................................................ TE01N529 NR 8.c.1.

2. Trade name 2................................................................................................................................................ TE02N529 NR 8.c.2.

3. Trade name 3................................................................................................................................................ TE03N529 NR 8.c.3.

4. Trade name 4................................................................................................................................................ TE04N529 NR 8.c.4.

5. Trade name 5................................................................................................................................................ TE05N529 NR 8.c.5.

6. Trade name 6................................................................................................................................................ TE06N529 NR 8.c.6.

Item 9 is to be completed annually in the December report only.

9. Do any of the bank's Internet Web sites have transactional capability, i.e., allow the bank's customers to execute RCFD4088 Yes 9.
transactions on their accounts through the Web site?.....................................................................................................
10. Secured liabilities: 10.

a. Amount of "Federal funds purchased in domestic offices" that are secured (included in Schedule RC, item
RCONF064 0 10.a.
14.a).........................................................................................................................................................................
b. Amount of "Other borrowings" that are secured (included in Schedule RC-M, items 5.b.(1)(a) - (d)).................. RCFDF065 11,743,195 10.b.

11. Does the bank act as trustee or custodian for Individual Retirement Accounts, Health Savings Accounts, and other
RCONG463 Yes 11.
similar accounts?.............................................................................................................................................................
12. Does the bank provide custody, safekeeping, or other services involving the acceptance of orders for the sale or
RCONG464 No 12.
purchase of securities?...................................................................................................................................................
13. Assets covered by loss-sharing agreements with the FDIC:..................................................................................... RCFDK192 0 13.

Items 14.a and 14.b are to be completed annually in the December report only.
14.
14. Captive insurance and reinsurance subsidiaries:
2 RCFDK193 0 14.a.
a. Total assets of captive insurance subsidiaries ....................................................................................................
2 RCFDK194 0 14.b.
b. Total assets of captive reinsurance subsidiaries .................................................................................................
Item 15 is to be completed by institutions that are required or have elected to be treated as a Qualified Thrift Lender.
15.
15. Qualified Thrift Lender (QTL) test:
a. Does the institution use the Home Owners' Loan Act (HOLA) QTL test or the Internal Revenue Service Domestic
Building and Loan Association (IRS DBLA) test to determine its QTL compliance? (for the HOLA QTL test, enter RCONL133 NR 15.a.
1; for the IRS DBLA test, enter 2).............................................................................................................................
b. Has the institution been in compliance with the HOLA QTL test as of each month end during the quarter or the
RCONL135 NR 15.b.
IRS DBLA test for its most recent taxable year, as applicable?...............................................................................
Item 16.a and, if appropriate, items 16.b.(1) through 16.b.(3) are to be completed annually in the December report only.
16.
1
16. International remittance transfers offered to consumers:
a. Estimated number of international remittance transfers provided by your institution during the calendar year
RCONN523 6813 16.a.
ending on the report date.........................................................................................................................................
Items 16.b.(1) through 16.b.(3) are to be completed by institutions that reported 501 or more international remittance transfers in
item 16.a in either or both of the current report or the most recent prior report in which item 16.a was required to be completed.
16.b.
b. Estimated dollar value of remittance transfers provided by your institution and usage of regulatory exceptions
during the calendar year ending on the report date:
1. Estimated dollar value of international remittance transfers......................................................................... RCONN524 154,827 16.b.1.

1. Report only highest level URLs (for example, report www.examplebank.biz, but do not also report www.examplebank.biz/checking). Report each top level domain name used (for example,
report both www.examplebank.biz and www.examplebank.net).
2. Report total assets before eliminating intercompany transactions between the consolidated insurance or reinsurance subsidiary and other offices or consolidated subsidiaries of the reporting
bank.
1. Report information about international electronic transfers of funds offered to consumers in the United States that: (a) are "remittance transfers" as defined by subpart B of Regulation E (12
CFR § 1005.30(e)), or (b) would qualify as "remittance transfers" under subpart B of Regulation E (12 CFR § 1005.30(e)) but are excluded from that definition only because the provider is not
providing those transfers in the normal course of its business. See 12 CFR § 1005.30(f). For purposes of this item 16, such trans
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Dollar amounts in thousands

2. Estimated number of international remittance transfers for which your institution applied the permanent
RCONMM07 0 16.b.2.
exchange rate exception...................................................................................................................................
3. Estimated number of international remittance transfers for which your institution applied the permanent
RCONMQ52 0 16.b.3.
covered third-party fee exception......................................................................................................................
17. U.S. Small Business Administration Paycheck Protection Program (PPP) loans and the Federal Reserve PPP
3 17.
Liquidity Facility (PPPLF):
a. Number of PPP loans outstanding....................................................................................................................... RCONLG26 0 17.a.

b. Outstanding balance of PPP loans....................................................................................................................... RCONLG27 0 17.b.

c. Outstanding balance of PPP loans pledged to the PPPLF................................................................................... RCONLG28 0 17.c.

d. Outstanding balance of borrowings from Federal Reserve Banks under the PPPLF with a remaining maturity
17.d.
of:
1. One year or less............................................................................................................................................ RCONLL59 0 17.d.1.

2. More than one year....................................................................................................................................... RCONLL60 0 17.d.2.

e. Quarterly average amount of PPP loans pledged to the PPPLF and excluded from "Total assets for the leverage
RCONLL57 0 17.e.
ratio" reported in Schedule RC-R, Part I, item 30....................................................................................................

(TE01N528) www.discover.com/

(TE02N528) www.mydiscoverbank.com/

(TE03N528) aaa.discoverbank.com/

(TE04N528) aaii.discoverbank.com/

(TE05N528) www.discoverbank.com/

(TE06N528) bank.discover.com/

(TEXT4087) www.discover.com

3. Paycheck Protection Program (PPP) covered loans as defined in sections 7(a)(36) and 7(a)(37) of the Small Business Act (15 U.S.C. 636(a)(36) and (37)). The PPP was established by Section
1102 of the 2020 Coronavirus Aid, Relief, and Economic Security Act.
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Schedule RC-N - Past Due and Nonaccrual Loans Leases and Other Assets(Form Type
- 031)
(Column A) Past due 30 (Column B) Past due 90 (Column C) Nonaccrual
through 89 days and still days or more and still
Dollar amounts in thousands accruing accruing

1. Loans secured by real estate: 1.

a. Construction, land development, and other land loans in domestic

1.a.
offices:
1. 1-4 family residential construction loans........................................ RCONF172 0 RCONF174 0 RCONF176 0 1.a.1.

2. Other construction loans and all land development and other land
RCONF173 0 RCONF175 0 RCONF177 0 1.a.2.
loans..................................................................................................
b. Secured by farmland in domestic offices............................................... RCON3493 0 RCON3494 0 RCON3495 0 1.b.

c. Secured by 1-4 family residential properties in domestic offices: 1.c.

1. Revolving, open-end loans secured by 1-4 family residential

RCON5398 0 RCON5399 0 RCON5400 0 1.c.1.
properties and extended under lines of credit....................................
2. Closed-end loans secured by 1-4 family residential properties: 1.c.2.

a. Secured by first liens............................................................... RCONC236 5,677 RCONC237 683 RCONC229 15,157 1.c.2.a.

b. Secured by junior liens............................................................ RCONC238 18,713 RCONC239 2,423 RCONC230 38,303 1.c.2.b.

d. Secured by multifamily (5 or more) residential properties in domestic

RCON3499 0 RCON3500 0 RCON3501 0 1.d.
offices........................................................................................................
e. Secured by nonfarm nonresidential properties in domestic offices: 1.e.

1. Loans secured by owner-occupied nonfarm nonresidential

RCONF178 0 RCONF180 0 RCONF182 0 1.e.1.
properties...........................................................................................
2. Loans secured by other nonfarm nonresidential properties........... RCONF179 0 RCONF181 0 RCONF183 0 1.e.2.

f. In foreign offices..................................................................................... RCFNB572 NR RCFNB573 NR RCFNB574 NR 1.f.

2. Loans to depository institutions and acceptances of other banks: 2.

a. To U.S. banks and other U.S. depository institutions............................. RCFD5377 0 RCFD5378 0 RCFD5379 0 2.a.

b. To foreign banks..................................................................................... RCFD5380 0 RCFD5381 0 RCFD5382 0 2.b.

3. Loans to finance agricultural production and other loans to farmers............ RCFD1594 0 RCFD1597 0 RCFD1583 0 3.

4. Commercial and industrial loans: 4.

a. To U.S. addressees (domicile)............................................................... RCFD1251 1,077 RCFD1252 1,294 RCFD1253 355 4.a.

b. To non-U.S. addressees (domicile)........................................................ RCFD1254 0 RCFD1255 0 RCFD1256 0 4.b.

5. Loans to individuals for household, family, and other personal expenditures: 5.

a. Credit cards........................................................................................... RCFDB575 1,971,791 RCFDB576 1,879,734 RCFDB577 196,970 5.a.

b. Automobile loans................................................................................... RCFDK213 0 RCFDK214 0 RCFDK215 0 5.b.

c. Other (includes revolving credit plans other than credit cards and other
RCFDK216 298,315 RCFDK217 105,041 RCFDK218 19,697 5.c.
consumer loans)........................................................................................
6. Loans to foreign governments and official institutions.................................. RCFD5389 0 RCFD5390 0 RCFD5391 0 6.

7. All other loans............................................................................................... RCFD5459 7,851 RCFD5460 0 RCFD5461 0 7.

8. Lease financing receivables: 8.

a. Leases to individuals for household, family, and other personal

RCFDF166 0 RCFDF167 0 RCFDF168 0 8.a.
expenditures..............................................................................................
b. All other leases...................................................................................... RCFDF169 0 RCFDF170 0 RCFDF171 0 8.b.

9. Total loans and leases (sum of items 1 through 8.b).................................... RCFD1406 2,303,424 RCFD1407 1,989,175 RCFD1403 270,482 9.

10. Debt securities and other assets (exclude other real estate owned and
RCFD3505 0 RCFD3506 0 RCFD3507 0 10.
other repossessed assets)...............................................................................
11. Loans and leases reported in items 1 through 8 above that are wholly or
partially guaranteed by the U.S. Government, excluding loans and leases RCFDK036 0 RCFDK037 0 RCFDK038 0 11.
covered by loss-sharing agreements with the FDIC:........................................
a. Guaranteed portion of loans and leases included in item 11 above,
RCFDK039 0 RCFDK040 0 RCFDK041 0 11.a.
excluding rebooked "GNMA loans"...........................................................
b. Rebooked "GNMA loans" that have been repurchased or are eligible
RCFDK042 0 RCFDK043 0 RCFDK044 0 11.b.
for repurchase included in item 11 above..................................................
12. Portion of covered loans and leases reported in item 9 above that is
RCFDK102 0 RCFDK103 0 RCFDK104 0 12.
protected by loss-sharing agreements with the FDIC.......................................
1. Loans restructured in troubled debt restructurings included in Schedule
RC-N, items 1 through 7, above (and not reported in Schedule RC-C, Part 1, M.1.
Memorandum item 1):
a. Construction, land development, and other land loans in domestic
M.1.a.
offices:
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(Column A) Past due 30 (Column B) Past due 90 (Column C) Nonaccrual

through 89 days and still days or more and still
Dollar amounts in thousands accruing accruing
1. 1-4 family residential construction loans........................................ RCONK105 0 RCONK106 0 RCONK107 0 M.1.a.1.

2. Other construction loans and all land development and other land
RCONK108 0 RCONK109 0 RCONK110 0 M.1.a.2.
loans..................................................................................................
b. Loans secured by 1-4 family residential properties in domestic offices.. RCONF661 0 RCONF662 0 RCONF663 0 M.1.b.

c. Secured by multifamily (5 or more) residential properties in domestic

RCONK111 0 RCONK112 0 RCONK113 0 M.1.c.
offices........................................................................................................
d. Secured by nonfarm nonresidential properties in domestic offices: M.1.d.

1. Loans secured by owner-occupied nonfarm nonresidential

RCONK114 0 RCONK115 0 RCONK116 0 M.1.d.1.
properties...........................................................................................
2. Loans secured by other nonfarm nonresidential properties........... RCONK117 0 RCONK118 0 RCONK119 0 M.1.d.2.

e. Commercial and industrial loans: M.1.e.

1. To U.S. addressees (domicile)........................................................ RCFDK120 0 RCFDK121 0 RCFDK122 0 M.1.e.1.

2. To non-U.S. addressees (domicile)................................................. RCFDK123 0 RCFDK124 0 RCFDK125 0 M.1.e.2.

f. All other loans (include loans to individuals for household, family, and
RCFDK126 286,287 RCFDK127 206,057 RCFDK128 8,182 M.1.f.
other personal expenditures).....................................................................
Itemize loan categories included in Memorandum item 1.f, above that exceed
10 percent of total loans restructured in troubled debt restructurings that are past
due 30 days or more or in nonaccrual status (sum of Memorandum items 1.a RCONK130 0 RCONK131 0 RCONK132 0 M.1.f.1.
through 1.f, columns A through C):
1. Loans secured by farmland in domestic offices.............................
2. Not applicable M.1.f.2.

3. Loans to finance agricultural production and other loans to

RCFDK138 0 RCFDK139 0 RCFDK140 0 M.1.f.3.
farmers...............................................................................................
4. Loans to individuals for household, family, and other personal
M.1.f.4.
expenditures:
a. Credit cards............................................................................. RCFDK274 248,691 RCFDK275 193,956 RCFDK276 7,190 M.1.f.4.a.

b. Automobile loans..................................................................... RCFDK277 0 RCFDK278 0 RCFDK279 0 M.1.f.4.b.

c. Other (includes revolving credit plans other than credit cards

RCFDK280 37,596 RCFDK281 12,101 RCFDK282 992 M.1.f.4.c.
and other consumer loans).........................................................
g. Total loans restructured in troubled debt restructurings included in
Schedule RC-N, items 1 through 7, above and not reported in Schedule
RC-C, Part I, Memorandum item 1 (sum of items Memorandum item 1.a.(1) RCFDHK26 286,287 RCFDHK27 206,057 RCFDHK28 8,182 M.1.g.
1
through Memorandum item 1.f) ...............................................................
2. Loans to finance commercial real estate, construction, and land development
activities (not secured by real estate) included in Schedule RC-N, items 4 and RCFD6558 0 RCFD6559 0 RCFD6560 0 M.2.
7, above............................................................................................................
3. Loans secured by real estate to non-U.S. addressees (domicile) (included
RCFD1248 0 RCFD1249 0 RCFD1250 0 M.3.
in Schedule RC-N, item 1, above)....................................................................
4. Not applicable M.4.

1. Exclude amounts reported in Memorandum items 1.f.(1) through 1.f.(4) when calculating the total in Memorandum item 1.g.
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(Column A) Past due 30 (Column B) Past due 90 (Column C) Nonaccrual

through 89 days and still days or more and still
Dollar amounts in thousands accruing accruing
5. Loans and leases held for sale (included in Schedule RC-N, items 1 through
RCFDC240 0 RCFDC241 0 RCFDC226 0 M.5.
8, above)...........................................................................................................

(Column A) Past due 30 through (Column B) Past due 90 days or

Dollar amounts in thousands 89 days more

6. Derivative contracts: Fair value of amounts carried as assets............................................... RCFD3529 0 RCFD3530 0 M.6.

Dollar amounts in thousands

Memorandum items 7, 8, 9.a, and 9.b are to be completed semiannually in the June and December reports only.
RCFDC410 977,587 M.7.
7. Additions to nonaccrual assets during the previous six months..................................................................................
8. Nonaccrual assets sold during the previous six months.............................................................................................. RCFDC411 0 M.8.

(Column A) Past due 30 (Column B) Past due 90 (Column C) Nonaccrual

through 89 days and still days or more and still
Dollar amounts in thousands accruing accruing
9. Purchased credit-impaired loans accounted for in accordance with FASB
2 M.9.
ASC 310-30 (former AICPA Stament of Position 03-3):
a. Outstanding balance............................................................................. RCFDL183 NR RCFDL184 NR RCFDL185 NR M.9.a.

b. Amount included in Schedule RC-N, items 1 through 7, above............. RCFDL186 NR RCFDL187 NR RCFDL188 NR M.9.b.

2. Memorandum items 9.a and 9.b should be completed only by institutions that have not yet adopted ASU 2016-13.
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Schedule RC-O - Other Data for Deposit Insurance and FICO Assessments(Form Type
- 031)
All FDIC-insured depository institutions must complete items 1 through 9, 10, and 11, Memorandum item 1, and, if applicable, item 9.a, Memorandum items 2, 3, and 6
through 18 each quarter. Unless otherwise indicated, complete items 1 through 11 and Memorandum items 1 through 3 on an "unconsolidated single FDIC certificate number
basis" (see instructions) and complete Memorandum items 6 through 18 on a fully consolidated basis.

Dollar amounts in thousands

1. Total deposit liabilities before exclusions (gross) as defined in Section 3(l) of the Federal Deposit Insurance Act and
RCFDF236 112,925,506 1.
FDIC regulations.............................................................................................................................................................
2. Total allowable exclusions, including interest accrued and unpaid on allowable exclusions (including foreign
RCFDF237 0 2.
deposits)..........................................................................................................................................................................
3. Total foreign deposits, including interest accrued and unpaid thereon (included in item 2 above).............................. RCFNF234 0 3.

4. Average consolidated total assets for the calendar quarter......................................................................................... RCFDK652 144,758,333 4.

a. Averaging method used (for daily averaging, enter 1; for weekly averaging, enter 2).......................................... RCFDK653 1 4.a.
1 RCFDK654 13,928,108 5.
5. Average tangible equity for the calendar quarter .......................................................................................................
6. Holdings of long-term unsecured debt issued by other FDIC-insured depository institutions..................................... RCFDK655 0 6.

7. Unsecured "Other borrowings" with a remaining maturity of (sum of items 7.a through 7.d must be less than or equal
7.
to Schedule RC-M, items 5.b.(1)(a)-(d) minus item 10.b):
a. One year or less................................................................................................................................................... RCFDG465 751,695 7.a.

b. Over one year through three years....................................................................................................................... RCFDG466 1,411,443 7.b.

c. Over three years through five years..................................................................................................................... RCFDG467 910,846 7.c.

d. Over five years..................................................................................................................................................... RCFDG468 497,159 7.d.

8. Subordinated notes and debentures with a remaining maturity of (sum of items 8.a through 8.d must equal Schedule
8.
RC, item 19):
a. One year or less................................................................................................................................................... RCFDG469 0 8.a.

b. Over one year through three years....................................................................................................................... RCFDG470 500,000 8.b.

c. Over three years through five years..................................................................................................................... RCFDG471 500,000 8.c.

d. Over five years..................................................................................................................................................... RCFDG472 750,000 8.d.

9. Brokered reciprocal deposits (included in Schedule RC-E, Part I, Memorandum item 1.b)........................................ RCONG803 0 9.

Item 9.a is to be completed on a fully consolidated basis by all institutions that own another insured depository institution.
RCONL190 NR 9.a.
a. Fully consolidated brokered reciprocal deposits..................................................................................................
10. Banker's bank certification: Does the reporting institution meet both the statutory definition of a banker's bank and
the business conduct test set forth in FDIC regulations? If the answer to item 10 is "YES," complete items 10.a and RCFDK656 No 10.
10.b..................................................................................................................................................................................
If the answer to item 10 is "YES," complete items 10.a and 10.b.
RCFDK657 NR 10.a.
a. Banker's bank deduction......................................................................................................................................
b. Banker's bank deduction limit............................................................................................................................... RCFDK658 NR 10.b.

11. Custodial bank certification: Does the reporting institution meet the definition of a custodial bank set forth in FDIC
RCFDK659 No 11.
regulations? If the answer to item 11 is "YES," complete items 11.a and 11.b...............................................................
If the answer to item 11 is "YES," complete items 11.a and 11.b.
RCFDK660 NR 11.a.
a. Custodial bank deduction.....................................................................................................................................
b. Custodial bank deduction limit.............................................................................................................................. RCFDK661 NR 11.b.

1. Total deposit liabilities of the bank (including related interest accrued and unpaid) less allowable exclusions (including
related interest accrued and unpaid) (sum of Memorandum items 1.a.(1), 1.b.(1), 1.c.(1), and 1.d.(1) must equal M.1.
Schedule RC-O, item 1 less item 2):
1 M.1.a.
a. Deposit accounts (excluding retirement accounts) of $250,000 or less:
1. Amount of deposit accounts (excluding retirement accounts) of $250,000 or less....................................... RCONF049 91,243,700 M.1.a.1.

2. Number of deposit accounts (excluding retirement accounts) of $250,000 or less....................................... RCONF050 7162341 M.1.a.2.
1 M.1.b.
b. Deposit accounts (excluding retirement accounts) of more than $250,000:
1. Amount of deposit accounts (excluding retirement accounts) of more than $250,000................................. RCONF051 18,577,791 M.1.b.1.

2. Number of deposit accounts (excluding retirement accounts) of more than $250,000................................. RCONF052 40460 M.1.b.2.
1 M.1.c.
c. Retirement deposit accounts of $250,000 or less:
1. Amount of retirement deposit accounts of $250,000 or less......................................................................... RCONF045 2,761,232 M.1.c.1.

2. Number of retirement deposit accounts of $250,000 or less........................................................................ RCONF046 101779 M.1.c.2.

1 M.1.d.
d. Retirement deposit accounts of more than $250,000:

1. See instructions for averaging methods. For deposit insurance assessment purposes, tangible equity is defined as Tier 1 capital as set forth in the banking agencies' regulatory capital standards
and reported in Schedule RC-R, Part I, item 26, except as described in the instructions.
1. The dollar amounts used as the basis for reporting in Memorandum items 1.a through 1.d reflect the deposit insurance limits in effect on the report date.
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Dollar amounts in thousands

1. Amount of retirement deposit accounts of more than $250,000................................................................... RCONF047 342,783 M.1.d.1.

2. Number of retirement deposit accounts of more than $250,000................................................................... RCONF048 1041 M.1.d.2.

Memorandum item 2 is to be completed by banks with $1 billion or more in total assets.

2. Estimated amount of uninsured deposits in domestic offices of the bank and in insured branches in Puerto Rico and RCON5597 7,034,610 M.2.
3
U.S. territories and possessions, including related interest accrued and unpaid (see instructions) ..............................
3. Has the reporting institution been consolidated with a parent bank or savings association in that parent bank's or
parent savings association's Call Report? If so, report the legal title and FDIC Certificate Number of the parent bank M.3.
or parent savings association:
a. Legal title.............................................................................................................................................................. TEXTA545 NR M.3.a.

b. FDIC Certificate Number...................................................................................................................................... RCONA545 0 M.3.b.

4. Dually payable deposits in the reporting institution's foreign branches....................................................................... RCFNGW43 NR M.4.

Memorandum items 5 through 12 are to be completed by "large institutions" and "highly complex institutions" as defined in FDIC regulations.
5. Applicable portion of the CECL transitional amount or modified CECL transitional amount that has been added to RCFDMW53 1,074,052 M.5.
retained earnings for regulatory capital purposes as of the current report date and is attributable to loans and leases
held for investment..........................................................................................................................................................
6. Criticized and classified items: M.6.

a. Special mention.................................................................................................................................................... RCFDK663 CONF M.6.a.

b. Substandard......................................................................................................................................................... RCFDK664 CONF M.6.b.

c. Doubtful................................................................................................................................................................ RCFDK665 CONF M.6.c.

d. Loss...................................................................................................................................................................... RCFDK666 CONF M.6.d.

7. "Nontraditional 1-4 family residential mortgage loans" as defined for assessment purposes only in FDIC regulations: M.7.

a. Nontraditional 1-4 family residential mortgage loans........................................................................................... RCFDN025 CONF M.7.a.

b. Securitizations of nontraditional 1-4 family residential mortgage loans................................................................ RCFDN026 CONF M.7.b.

8. "Higher-risk consumer loans" as defined for assessment purposes only in FDIC regulations: M.8.

a. Higher-risk consumer loans................................................................................................................................. RCFDN027 CONF M.8.a.

b. Securitizations of higher-risk consumer loans...................................................................................................... RCFDN028 CONF M.8.b.

9. "Higher-risk commercial and industrial loans and securities" as defined for assessment purposes only in FDIC
M.9.
regulations:
a. Higher-risk commercial and industrial loans and securities................................................................................. RCFDN029 CONF M.9.a.

b. Securitizations of higher-risk commercial and industrial loans and securities..................................................... RCFDN030 CONF M.9.b.

10. Commitments to fund construction, land development, and other land loans secured by real estate for the
M.10.
consolidated bank:
a. Total unfunded commitments................................................................................................................................ RCFDK676 0 M.10.a.

b. Portion of unfunded commitments guaranteed or insured by the U.S. government (including the FDIC)............ RCFDK677 0 M.10.b.

11. Amount of other real estate owned recoverable from the U.S. government under guarantee or insurance provisions
RCFDK669 0 M.11.
(excluding FDIC loss-sharing agreements).....................................................................................................................
12. Nonbrokered time deposits of more than $250,000 in domestic offices (included in Schedule RC-E, Memorandum
RCONK678 3,002,453 M.12.
item 2.d)..........................................................................................................................................................................
Memorandum item 13.a is to be completed by "large institutions" and "highly complex institutions" as defined in FDIC regulations.
Memorandum items 13.b through 13.h are to be completed by "large institutions" only.
M.13.
13. Portion of funded loans and securities in domestic and foreign offices guaranteed or insured by the U.S. government
(including FDIC loss-sharing agreements):
a. Construction, land development, and other land loans secured by real estate.................................................... RCFDN177 0 M.13.a.

b. Loans secured by multifamily residential and nonfarm nonresidential properties................................................ RCFDN178 0 M.13.b.

c. Closed-end loans secured by first liens on 1-4 family residential properties........................................................ RCFDN179 0 M.13.c.

d. Closed-end loans secured by junior liens on 1-4 family residential properties and revolving, open-end loans
RCFDN180 0 M.13.d.
secured by 1-4 family residential properties and extended under lines of credit.....................................................
e. Commercial and industrial loans.......................................................................................................................... RCFDN181 0 M.13.e.

f. Credit card loans to individuals for household, family, and other personal expenditures...................................... RCFDN182 0 M.13.f.

g. All other loans to individuals for household, family, and other personal expenditures.......................................... RCFDN183 0 M.13.g.

h. Non-agency residential mortgage-backed securities........................................................................................... RCFDM963 0 M.13.h.

Memorandum items 14 and 15 are to be completed by "highly complex institutions" as defined in FDIC regulations.
RCFDK673 CONF M.14.
14. Amount of the institution's largest counterparty exposure.........................................................................................
15. Total amount of the institution's 20 largest counterparty exposures.......................................................................... RCFDK674 CONF M.15.

3. Uninsured deposits should be estimated based on the deposit insurance limits set forth in Memorandum items 1.a through 1.d.
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Dollar amounts in thousands

Memorandum item 16 is to be completed by “large institutions” and “highly complex institutions” as defined in FDIC regulations.
16. Portion of loans restructured in troubled debt restructurings that are in compliance with their modified terms and RCFDL189 0 M.16.
are guaranteed or insured by the U.S. government (including the FDIC) (included in Schedule RC-C, part I, Memorandum
item 1).............................................................................................................................................................................
Memorandum item 17 is to be completed on a fully consolidated basis by those “large institutions” and “highly complex institutions” as
defined in FDIC regulations that own another insured depository institution. M.17.
17. Selected fully consolidated data for deposit insurance assessment purposes:
a. Total deposit liabilities before exclusions (gross) as defined in Section 3(l) of the Federal Deposit Insurance
RCFDL194 NR M.17.a.
Act and FDIC regulations.........................................................................................................................................
b. Total allowable exclusions, including interest accrued and unpaid on allowable exclusions (including foreign
RCFDL195 NR M.17.b.
deposits)...................................................................................................................................................................
c. Unsecured "Other borrowings" with a remaining maturity of one year or less..................................................... RCFDL196 NR M.17.c.

d. Estimated amount of uninsured deposits in domestic offices of the institution and in insured branches in Puerto
RCONL197 NR M.17.d.
Rico and U.S. territories and possessions, including related interest accrued and unpaid......................................
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(Column (Column (Column (Column (Column (Column (Column (Column (Column I) (Column (Column (Column (Column (Column (Column
A) B) C) D) E) F) G) H) Two-Year J) K) L) M) N) O) PDs
Two-Year Two-Year Two-Year Two-Year Two-Year Two-Year Two-Year Two-Year Probability Two-Year Two-Year Two-Year Two-Year Two-Year Were
Probability Probability Probability Probability Probability Probability Probability Probability of Default Probability Probability Probability Probability Probability Derived
of Default of Default of Default of Default of Default of Default of Default of Default (PD) of Default of Default of Default of Default of Default Using
(PD) <= (PD) (PD) (PD) (PD) (PD) (PD) (PD) 20.01–22% (PD) (PD) (PD) > (PD) (PD) Total
Dollar amounts in thousands 1% 1.01–4% 4.01–7% 7.01–10% 10.01–14% 14.01–16% 16.01–18% 18.01–20% 22.01–26% 26.01–30% 30% Unscoreable
18. Outstanding balance of 1-4 family
residential mortgage loans, consumer loans,
M.18.
and consumer leases by two-year probability
of default:
a. "Nontraditional 1-4 family residential
mortgage loans" as defined for
M.18.a.
assessment purposes only in FDIC RCFDM964 RCFDM965 RCFDM966 RCFDM967 RCFDM968 RCFDM969 RCFDM970 RCFDM971 RCFDM972 RCFDM973 RCFDM974 RCFDM975 RCFDM976 RCFDM977 RCFDM978
regulations.............................................. CONF CONF CONF CONF CONF CONF CONF CONF CONF CONF CONF CONF CONF CONF CONF
b. Closed-end loans secured by first liens RCFDM979 RCFDM980 RCFDM981 RCFDM982 RCFDM983 RCFDM984 RCFDM985 RCFDM986 RCFDM987 RCFDM988 RCFDM989 RCFDM990 RCFDM991 RCFDM992 RCFDM993
M.18.b.
on 1-4 family residential properties........ CONF CONF CONF CONF CONF CONF CONF CONF CONF CONF CONF CONF CONF CONF CONF
c. Closed-end loans secured by junior
liens on 1-4 family residential RCFDM994 RCFDM995 RCFDM996 RCFDM997 RCFDM998 RCFDM999 RCFDN001 RCFDN002 RCFDN003 RCFDN004 RCFDN005 RCFDN006 RCFDN007 RCFDN008 RCFDN009 M.18.c.
properties............................................... CONF CONF CONF CONF CONF CONF CONF CONF CONF CONF CONF CONF CONF CONF CONF
d. Revolving, open-end loans secured by
1-4 family residential properties and RCFDN010 RCFDN011 RCFDN012 RCFDN013 RCFDN014 RCFDN015 RCFDN016 RCFDN017 RCFDN018 RCFDN019 RCFDN020 RCFDN021 RCFDN022 RCFDN023 RCFDN024 M.18.d.
extended under lines of credit................ CONF CONF CONF CONF CONF CONF CONF CONF CONF CONF CONF CONF CONF CONF CONF
RCFDN040 RCFDN041 RCFDN042 RCFDN043 RCFDN044 RCFDN045 RCFDN046 RCFDN047 RCFDN048 RCFDN049 RCFDN050 RCFDN051 RCFDN052 RCFDN053 RCFDN054
M.18.e.
e. Credit cards........................................ CONF CONF CONF CONF CONF CONF CONF CONF CONF CONF CONF CONF CONF CONF CONF
RCFDN055 RCFDN056 RCFDN057 RCFDN058 RCFDN059 RCFDN060 RCFDN061 RCFDN062 RCFDN063 RCFDN064 RCFDN065 RCFDN066 RCFDN067 RCFDN068 RCFDN069
M.18.f.
f. Automobile loans................................. CONF CONF CONF CONF CONF CONF CONF CONF CONF CONF CONF CONF CONF CONF CONF
RCFDN070 RCFDN071 RCFDN072 RCFDN073 RCFDN074 RCFDN075 RCFDN076 RCFDN077 RCFDN078 RCFDN079 RCFDN080 RCFDN081 RCFDN082 RCFDN083 RCFDN084
M.18.g.
g. Student loans...................................... CONF CONF CONF CONF CONF CONF CONF CONF CONF CONF CONF CONF CONF CONF CONF
h. Other consumer loans and revolving RCFDN085 RCFDN086 RCFDN087 RCFDN088 RCFDN089 RCFDN090 RCFDN091 RCFDN092 RCFDN093 RCFDN094 RCFDN095 RCFDN096 RCFDN097 RCFDN098 RCFDN099
M.18.h.
credit plans other than credit cards........ CONF CONF CONF CONF CONF CONF CONF CONF CONF CONF CONF CONF CONF CONF CONF
RCFDN100 RCFDN101 RCFDN102 RCFDN103 RCFDN104 RCFDN105 RCFDN106 RCFDN107 RCFDN108 RCFDN109 RCFDN110 RCFDN111 RCFDN112 RCFDN113 RCFDN114
M.18.i.
i. Consumer leases................................. CONF CONF CONF CONF CONF CONF CONF CONF CONF CONF CONF CONF CONF CONF CONF
RCFDN115 RCFDN116 RCFDN117 RCFDN118 RCFDN119 RCFDN120 RCFDN121 RCFDN122 RCFDN123 RCFDN124 RCFDN125 RCFDN126 RCFDN127 RCFDN128
M.18.j.
j. Total..................................................... CONF CONF CONF CONF CONF CONF CONF CONF CONF CONF CONF CONF CONF CONF
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Schedule RC-P - 1-4 Family Residential Mortgage Banking Activities in Domestic

Offices(Form Type - 031)
Schedule RC-P is to be completed by banks at which either 1-4 family residential mortgage loan originations and purchases for resale from all sources, loan sales, or
quarter-end loans held for sale or trading in domestic offices exceed $10 million for two consecutive quarters.

Dollar amounts in thousands

1
1. Retail originations during the quarter of 1-4 family residential mortgage loans for sale ............................................ RCONHT81 NR 1.

2 RCONHT82 NR 2.
2. Wholesale originations and purchases during the quarter of 1-4 family residential mortgage loans for sale ............
3. 1-4 family residential mortgage loans sold during the quarter..................................................................................... RCONFT04 NR 3.

4. 1-4 family residential mortgage loans held for sale or trading at quarter-end (included in Schedule RC, items 4.a
RCONFT05 NR 4.
and 5)..............................................................................................................................................................................
5. Noninterest income for the quarter from the sale, securitization, and servicing of 1-4 family residential mortgage
RIADHT85 NR 5.
loans (included in Schedule RI, items 5.c, 5.f, 5.g, and 5.i).............................................................................................
6. Repurchases and indemnifications of 1-4 family residential mortgage loans during the quarter................................ RCONHT86 NR 6.

7. Representation and warranty reserves for 1-4 family residential mortgage loans sold: 7.

a. For representations and warranties made to U.S. government agencies and government-sponsored agencies.. RCONL191 CONF 7.a.

b. For representations and warranties made to other parties................................................................................... RCONL192 CONF 7.b.

c. Total representation and warranty reserves (sum of items 7.a and 7.b)............................................................... RCONM288 NR 7.c.

Schedule RC-Q - Assets and Liabilities Measured at Fair Value on a Recurring

Basis(Form Type - 031)
Schedule RC-Q is to be completed by banks that:

(1) Have elected to report financial instruments or servicing assets and liabilities at fair value under a fair value option with changes in fair value recognized in earnings, or
(2) Are required to complete Schedule RC-D, Trading Assets and Liabilities.

(Column A) Total (Column B) (Column C) (Column D) (Column E)

Fair Value LESS: Amounts Level 1 Fair Level 2 Fair Level 3 Fair
Reported on Netted in the Value Value Value
Schedule RC Determination of Measurements Measurements Measurements
Dollar amounts in thousands Total Fair Value
1. Available-for-sale debt securities and equity securities with readily RCFDJA36 RCFDG474 RCFDG475 RCFDG476 RCFDG477
1 1.
determinable fair values not held for trading ........................................ 13,444,483 0 12,971,131 473,352 0
2. Federal funds sold and securities purchased under agreements to RCFDG478 RCFDG479 RCFDG480 RCFDG481 RCFDG482
2.
resell...................................................................................................... 0 0 0 0 0
RCFDG483 RCFDG484 RCFDG485 RCFDG486 RCFDG487
3.
3. Loans and leases held for sale.......................................................... 0 0 0 0 0
RCFDG488 RCFDG489 RCFDG490 RCFDG491 RCFDG492
4.
4. Loans and leases held for investment............................................... 0 0 0 0 0

5. Trading assets: 5.
RCFD3543 RCFDG493 RCFDG494 RCFDG495 RCFDG496
5.a.
a. Derivative assets........................................................................ 0 0 0 0 0
RCFDG497 RCFDG498 RCFDG499 RCFDG500 RCFDG501
5.b.
b. Other trading assets................................................................... 0 0 0 0 0
1. Nontrading securities at fair value with changes in fair value
reported in current earnings (included in Schedule RC-Q, item RCFDF240 RCFDF684 RCFDF692 RCFDF241 RCFDF242 5.b.1.
5.b, above).............................................................................. 0 0 0 0 0
RCFDG391 RCFDG392 RCFDG395 RCFDG396 RCFDG804
6.
6. All other assets.................................................................................. 4,168 0 0 4,168 0
7.Total assets measured at fair value on a recurring basis (sum of items RCFDG502 RCFDG503 RCFDG504 RCFDG505 RCFDG506
7.
1 through 5.b plus item 6)...................................................................... 13,448,651 0 12,971,131 477,520 0
RCFDF252 RCFDF686 RCFDF694 RCFDF253 RCFDF254
8.
8. Deposits............................................................................................. 0 0 0 0 0
9. Federal funds purchased and securities sold under agreements to RCFDG507 RCFDG508 RCFDG509 RCFDG510 RCFDG511
9.
repurchase............................................................................................ 0 0 0 0 0

10. Trading liabilities: 10.

RCFD3547 RCFDG512 RCFDG513 RCFDG514 RCFDG515
10.a.
a. Derivative liabilities..................................................................... 0 0 0 0 0
RCFDG516 RCFDG517 RCFDG518 RCFDG519 RCFDG520
10.b.
b. Other trading liabilities................................................................ 0 0 0 0 0

1. Exclude originations and purchases of 1–4 family residential mortgage loans that are held for investment.
1. The amount reported in item 1, column A, must equal the sum of Schedule RC, items 2.b and 2.c.
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(Column A) Total (Column B) (Column C) (Column D) (Column E)

Fair Value LESS: Amounts Level 1 Fair Level 2 Fair Level 3 Fair
Reported on Netted in the Value Value Value
Schedule RC Determination of Measurements Measurements Measurements
Dollar amounts in thousands Total Fair Value
RCFDG521 RCFDG522 RCFDG523 RCFDG524 RCFDG525
11.
11. Other borrowed money.................................................................... 0 0 0 0 0
RCFDG526 RCFDG527 RCFDG528 RCFDG529 RCFDG530
12.
12. Subordinated notes and debentures............................................... 0 0 0 0 0
RCFDG805 RCFDG806 RCFDG807 RCFDG808 RCFDG809
13.
13. All other liabilities............................................................................. 579 0 0 579 0
14. Total liabilities measured at fair value on a recurring basis (sum of RCFDG531 RCFDG532 RCFDG533 RCFDG534 RCFDG535
14.
items 8 through 13)............................................................................... 579 0 0 579 0
1. All other assets (itemize and describe amounts included in Schedule
RC-Q, item 6, that are greater than $100,000 and exceed 25% of item M.1.
6):
RCFDG536 RCFDG537 RCFDG538 RCFDG539 RCFDG540
M.1.a.
a. Mortgage servicing assets......................................................... NR NR NR NR NR
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(Column A) Total (Column B) (Column C) (Column D) (Column E)

Fair Value LESS: Amounts Level 1 Fair Level 2 Fair Level 3 Fair
Reported on Netted in the Value Value Value
Schedule RC Determination of Measurements Measurements Measurements
Dollar amounts in thousands Total Fair Value
RCFDG541 RCFDG542 RCFDG543 RCFDG544 RCFDG545
M.1.b.
b. Nontrading derivative assets...................................................... 4,168 NR NR 4,168 NR

Dollar amounts in thousands

c. Disclose component and the dollar amount of that component: M.1.c.

1. Describe component.................................................................................................................................................... TEXTG546 NR M.1.c.1.

(Column A) Total (Column B) (Column C) (Column D) (Column E)

Fair Value LESS: Amounts Level 1 Fair Level 2 Fair Level 3 Fair
Reported on Netted in the Value Value Value
Schedule RC Determination of Measurements Measurements Measurements
Dollar amounts in thousands Total Fair Value
RCFDG546 RCFDG547 RCFDG548 RCFDG549 RCFDG550
M.1.c.2.
2. Amount of component....................................................................... NR NR NR NR NR

Dollar amounts in thousands

d. Disclose component and the dollar amount of that component: M.1.d.

1. Describe component.................................................................................................................................................... TEXTG551 NR M.1.d.1.

(Column A) Total (Column B) (Column C) (Column D) (Column E)

Fair Value LESS: Amounts Level 1 Fair Level 2 Fair Level 3 Fair
Reported on Netted in the Value Value Value
Schedule RC Determination of Measurements Measurements Measurements
Dollar amounts in thousands Total Fair Value
RCFDG551 RCFDG552 RCFDG553 RCFDG554 RCFDG555
M.1.d.2.
2. Amount of component....................................................................... NR NR NR NR NR

Dollar amounts in thousands

e. Disclose component and the dollar amount of that component: M.1.e.

1. Describe component.................................................................................................................................................... TEXTG556 NR M.1.e.1.

(Column A) Total (Column B) (Column C) (Column D) (Column E)

Fair Value LESS: Amounts Level 1 Fair Level 2 Fair Level 3 Fair
Reported on Netted in the Value Value Value
Schedule RC Determination of Measurements Measurements Measurements
Dollar amounts in thousands Total Fair Value
RCFDG556 RCFDG557 RCFDG558 RCFDG559 RCFDG560
M.1.e.2.
2. Amount of component....................................................................... NR NR NR NR NR

Dollar amounts in thousands

f. Disclose component and the dollar amount of that component: M.1.f.

1. Describe component.................................................................................................................................................... TEXTG561 NR M.1.f.1.

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(Column A) Total (Column B) (Column C) (Column D) (Column E)

Fair Value LESS: Amounts Level 1 Fair Level 2 Fair Level 3 Fair
Reported on Netted in the Value Value Value
Schedule RC Determination of Measurements Measurements Measurements
Dollar amounts in thousands Total Fair Value
RCFDG561 RCFDG562 RCFDG563 RCFDG564 RCFDG565
M.1.f.2.
2. Amount of component....................................................................... NR NR NR NR NR
2. All other liabilities (itemize and describe amounts included in Schedule
RC-Q, item 13, that are greater than $100,000 and exceed 25% of item M.2.
13):
RCFDF261 RCFDF689 RCFDF697 RCFDF262 RCFDF263
M.2.a.
a. Loan commitments (not accounted for as derivatives)............... NR NR NR NR NR
RCFDG566 RCFDG567 RCFDG568 RCFDG569 RCFDG570
M.2.b.
b. Nontrading derivative liabilities................................................... 579 NR NR 579 NR

Dollar amounts in thousands

c. Disclose component and the dollar amount of that component: M.2.c.

1. Describe component.................................................................................................................................................... TEXTG571 NR M.2.c.1.

(Column A) Total (Column B) (Column C) (Column D) (Column E)

Fair Value LESS: Amounts Level 1 Fair Level 2 Fair Level 3 Fair
Reported on Netted in the Value Value Value
Schedule RC Determination of Measurements Measurements Measurements
Dollar amounts in thousands Total Fair Value
RCFDG571 RCFDG572 RCFDG573 RCFDG574 RCFDG575
M.2.c.2.
2. Amount of component....................................................................... NR NR NR NR NR

Dollar amounts in thousands

d. Disclose component and the dollar amount of that component: M.2.d.

1. Describe component.................................................................................................................................................... TEXTG576 NR M.2.d.1.

(Column A) Total (Column B) (Column C) (Column D) (Column E)

Fair Value LESS: Amounts Level 1 Fair Level 2 Fair Level 3 Fair
Reported on Netted in the Value Value Value
Schedule RC Determination of Measurements Measurements Measurements
Dollar amounts in thousands Total Fair Value
RCFDG576 RCFDG577 RCFDG578 RCFDG579 RCFDG580
M.2.d.2.
2. Amount of component....................................................................... NR NR NR NR NR

Dollar amounts in thousands

e. Disclose component and the dollar amount of that component: M.2.e.

1. Describe component.................................................................................................................................................... TEXTG581 NR M.2.e.1.

(Column A) Total (Column B) (Column C) (Column D) (Column E)

Fair Value LESS: Amounts Level 1 Fair Level 2 Fair Level 3 Fair
Reported on Netted in the Value Value Value
Schedule RC Determination of Measurements Measurements Measurements
Dollar amounts in thousands Total Fair Value
RCFDG581 RCFDG582 RCFDG583 RCFDG584 RCFDG585
M.2.e.2.
2. Amount of component....................................................................... NR NR NR NR NR

Dollar amounts in thousands

f. Disclose component and the dollar amount of that component: M.2.f.

1. Describe component
M.2.f.1.
(TEXTG586) NR
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(Column A) Total (Column B) (Column C) (Column D) (Column E)

Fair Value LESS: Amounts Level 1 Fair Level 2 Fair Level 3 Fair
Reported on Netted in the Value Value Value
Schedule RC Determination of Measurements Measurements Measurements
Dollar amounts in thousands Total Fair Value
RCFDG586 RCFDG587 RCFDG588 RCFDG589 RCFDG590
M.2.f.2.
2. Amount of component....................................................................... NR NR NR NR NR

Dollar amounts in thousands Consolidated Bank

3. Loans measured at fair value (included in Schedule RC-C, Part I, items 1 through 9): M.3.

a. Loans secured by real estate: M.3.a.

1. Secured by 1-4 family residential properties................................................................................................. RCFDHT87 0 M.3.a.1.

2. All other loans secured by real estate........................................................................................................... RCFDHT88 0 M.3.a.2.

b. Commercial and industrial loans.......................................................................................................................... RCFDF585 0 M.3.b.

c. Loans to individuals for household, family, and other personal expenditures (i.e., consumer loans) (includes
RCFDHT89 0 M.3.c.
purchased paper).....................................................................................................................................................
d. Other loans........................................................................................................................................................... RCFDF589 0 M.3.d.

4. Unpaid principal balance of loans measured at fair value (reported in Schedule RC-Q, Memorandum item 3): M.4.

a. Loans secured by real estate: M.4.a.

1. Secured by 1-4 family residential properties................................................................................................. RCFDHT91 0 M.4.a.1.

2. All other loans secured by real estate........................................................................................................... RCFDHT92 0 M.4.a.2.

b. Commercial and industrial loans.......................................................................................................................... RCFDF597 0 M.4.b.

c. Loans to individuals for household, family, and other personal expenditures (i.e., consumer loans) (includes
RCFDHT93 0 M.4.c.
purchased paper).....................................................................................................................................................
d. Other loans........................................................................................................................................................... RCFDF601 0 M.4.d.
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Schedule RC-R Part I - Regulatory Capital Components and Ratios(Form Type - 031)
Part I is to be completed on a consolidated basis.

Dollar amounts in thousands

1. Common stock plus related surplus, net of treasury stock and unearned employee stock ownership plan (ESOP)
RCFAP742 4,601,764 1.
shares..............................................................................................................................................................................
1 RCFAKW00 9,308,668 2.
2. Retained earnings ......................................................................................................................................................
To be completed only by institutions that have adopted ASU 2016-13:
a. Does your institution have a CECL transition election in effect as of the quarter-end report date? (enter "0" for RCOAJJ29 2 2.a.
No; enter "1" for Yes with a 3-year CECL transition election; enter "2" for Yes with a 5-year 2020 CECL transition
election.)...................................................................................................................................................................
3. Accumulated other comprehensive income (AOCI)..................................................................................................... RCFAB530 -45,281 3.

a. AOCI opt-out election (enter "1" for Yes; enter "0" for No.) (Advanced approaches institutions must enter "0"
RCOAP838 1 3.a.
for No.).....................................................................................................................................................................
4. Common equity tier 1 minority interest includable in common equity tier 1 capital..................................................... RCFAP839 0 4.

5. Common equity tier 1 capital before adjustments and deductions (sum of items 1 through 4)................................... RCFAP840 13,865,151 5.

6. LESS: Goodwill net of associated deferred tax liabilities (DTLs)................................................................................. RCFAP841 0 6.

7. LESS: Intangible assets (other than goodwill and mortgage servicing assets (MSAs)), net of associated DTLs....... RCFAP842 0 7.

8. LESS: Deferred tax assets (DTAs) that arise from net operating loss and tax credit carryforwards, net of any related
RCFAP843 5 8.
valuation allowances and net of DTLs.............................................................................................................................
9. AOCI-related adjustments (items 9.a through 9.e are effective January 1, 2015) (if entered "1" for Yes in item 3.a,
9.
complete only items 9.a through 9.e; if entered "0" for No in item 3.a, complete only item 9.f):
a. LESS: Net unrealized gains (losses) on available-for-sale debt securities (if a gain, report as a positive value;
RCFAP844 -38,151 9.a.
if a loss, report as a negative value)........................................................................................................................
b. Not applicable. 9.b.

c. LESS: Accumulated net gains (losses) on cash flow hedges (if a gain, report as a positive value; if a loss, report
RCFAP846 -7,130 9.c.
as a negative value).................................................................................................................................................
d. LESS: Amounts recorded in AOCI attributed to defined benefit postretirement plans resulting from the initial
and subsequent application of the relevant GAAP standards that pertain to such plans (if a gain, report as a RCFAP847 0 9.d.
positive value; if a loss, report as a negative value).................................................................................................
e. LESS: Net unrealized gains (losses) on held-to-maturity securities that are included in AOCI (if a gain, report
RCFAP848 0 9.e.
as a positive value; if a loss, report as a negative value).........................................................................................
f. LESS: Accumulated net gain (loss) on cash flow hedges included in AOCI, net of applicable income taxes, that
relate to the hedging of items that are not recognized at fair value on the balance sheet (if a gain, report as a
RCFAP849 NR 9.f.
positive value; if a loss, report as a negative value) (To be completed only by institutions that entered "0" for No
in item 3.a)...............................................................................................................................................................
10. Other deductions from (additions to) common equity tier 1 capital before threshold-based deductions: 10.

a. LESS: Unrealized net gain (loss) related to changes in the fair value of liabilities that are due to changes in own
RCFAQ258 0 10.a.
credit risk (if a gain, report as a positive value; if a loss, report as a negative value)..............................................
b. LESS: All other deductions from (additions to) common equity tier 1 capital before threshold-based deductions. RCFAP850 0 10.b.
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(Column A) Non-advanced (Column B) Advanced

Dollar amounts in thousands Approaches Institutions Approaches Institutions
11. LESS: Non-significant investments in the capital of unconsolidated financial institutions in
the form of common stock that exceed the 10 percent threshold for non-significant RCFWP851 NR 11.
investments................................................................................................................................
12. Subtotal (for column A, item 5 minus items 6 through 10.b; for column B, item 5 minus
RCFAP852 13,910,427 RCFWP852 NR 12.
items 6 through 11)....................................................................................................................
13. Not available 13.

a. LESS: Investments in the capital of unconsolidated financial institutions, net of associated

RCFALB58 0 13.a.
DTLs, that exceed 25 percent of item 12...........................................................................
b. LESS: Significant investments in the capital of unconsolidated financial institutions in
the form of common stock, net of associated DTLs, that exceed the 10 percent common RCFWP853 NR 13.b.
equity tier 1 capital deduction threshold.............................................................................
14. Not available 14.

a. LESS: MSAs, net of associated DTLs, that exceed 25 percent of item 12..................... RCFALB59 0 14.a.

b. LESS: MSAs, net of associated DTLs, that exceed the 10 percent common equity tier
RCFWP854 NR 14.b.
1 capital deduction threshold.............................................................................................
15. Not available 15.

a. LESS: DTAs arising from temporary differences that could not be realized through net
operating loss carrybacks, net of related valuation allowances and net of DTLs, that exceed RCFALB60 0 15.a.
25 percent of item 12.........................................................................................................
b. LESS: DTAs arising from temporary differences that could not be realized through net
operating loss carrybacks, net of related valuation allowances and net of DTLs, that exceed RCFWP855 NR 15.b.
the 10 percent common equity tier 1 capital deduction threshold......................................
16. LESS: Amount of significant investments in the capital of unconsolidated financial institutions
in the form of common stock, net of associated DTLs; MSAs, net of associated DTLs; and
DTAs arising from temporary differences that could not be realized through net operating loss RCFWP856 NR 16.
carrybacks, net of related valuation allowances and net of DTLs; that exceeds the 15 percent
common equity tier 1 capital deduction threshold.....................................................................
17. LESS: Deductions applied to common equity tier 1 capital due to insufficient amounts of
RCFAP857 0 RCFWP857 NR 17.
additional tier 1 capital and tier 2 capital to cover deductions...................................................
3 RCFAP858 0 RCFWP858 NR 18.
18. Total adjustments and deductions for common equity tier 1 capital ...................................
19. Common equity tier 1 capital (item 12 minus item 18)......................................................... RCFAP859 13,910,427 RCFWP859 NR 19.

Dollar amounts in thousands

20. Additional tier 1 capital instruments plus related surplus.......................................................................................... RCFAP860 0 20.

21. Non-qualifying capital instruments subject to phase out from additional tier 1 capital ............................................. RCFAP861 0 21.

22. Tier 1 minority interest not included in common equity tier 1 capital......................................................................... RCFAP862 0 22.

23. Additional tier 1 capital before deductions (sum of items 20, 21, and 22)................................................................. RCFAP863 0 23.

24. LESS: Additional tier 1 capital deductions................................................................................................................. RCFAP864 0 24.

25. Additional tier 1 capital (greater of item 23 minus item 24, or zero).......................................................................... RCFAP865 0 25.
1 RCFA8274 13,910,427 26.
26. Tier 1 capital .............................................................................................................................................................
2 RCFAKW03 145,832,385 27.
27. Average total consolidated assets ...........................................................................................................................
28. LESS: Deductions from common equity tier 1 capital and additional tier 1 capital (sum of items 6, 7, 8, 10.b, 13
3 RCFAP875 5 28.
through 15, 17, and certain elements of item 24 - see instructions) ..............................................................................
29. LESS: Other deductions from (additions to) assets for leverage ratio purposes....................................................... RCFAB596 0 29.

30. Total assets for the leverage ratio (item 27 minus items 28 and 29).......................................................................... RCFAA224 145,832,380 30.

31. Leverage ratio (item 26 divided by 30)....................................................................................................................... RCFA7204 9.5386% 31.

a. Does your institution have a community bank leverage ratio (CBLR) framework election in effect as of the
RCOALE74 0 31.a.
quarter-end report date? (enter "1" for Yes; enter "0" for No)...................................................................................
Item 31.b is to be completed only by non-advanced approaches institutions that elect to use the Standardized Approach for Counterparty
Credit Risk (SA-CCR) for purposes of the standardized approach and supplementary leverage ratio. RCOANC99 NR 31.b.
4
b. Standardized Approach for Counterparty Credit Risk opt-in election (enter "1" for Yes; leave blank for No.) ......

1. Institutions that have adopted ASU 2016-13 and have elected to apply the 3-year or the 5-year 2020 CECL transition provision should include the applicable portion of the CECL transitional
amount or the modified CECL transitional amount, respectively, in this item.
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Dollar amounts in thousands (Column A) Amount (Column B) Percentage

32. Total assets (Schedule RC, item 12); (must be less than $10 billion).................................. RCFA2170 NR 32.

33. Trading assets and trading liabilities (Schedule RC, sum of items 5 and 15). Report as a
RCFAKX77 NR RCFAKX78 NR 33.
dollar amount in Column A and as a percentage of total assets (5% limit) in Column B...........
34. Off-balance sheet exposures: 34.

a. Unused portion of conditionally cancellable commitments............................................. RCFAKX79 NR 34.a.

b. Securities lent and borrowed (Schedule RC-L, sum of items 6.a and 6.b)..................... RCFAKX80 NR 34.b.

c. Other off-balance sheet exposures................................................................................. RCFAKX81 NR 34.c.

d. Total off-balance sheet exposures (sum of items 34.a through 34.c). Report as a dollar
RCFAKX82 NR RCFAKX83 NR 34.d.
amount in Column A and as a percentage of total assets (25% limit) in Column B...........

Dollar amounts in thousands

35. Unconditionally cancellable commitments................................................................................................................. RCFAS540 NR 35.

36. Investments in the tier 2 capital of unconsolidated financial institutions.................................................................... RCFALB61 NR 36.

37. Allocated transfer risk reserve................................................................................................................................... RCFA3128 NR 37.

1 38.
38. Amount of allowances for credit losses on purchased credit-deteriorated assets:
a. Loans and leases held for investment.................................................................................................................. RCFAJJ30 NR 38.a.

b. Held-to-maturity debt securities............................................................................................................................ RCFAJJ31 NR 38.b.

c. Other financial assets measured at amortized cost............................................................................................. RCFAJJ32 NR 38.c.

39. Tier 2 capital instruments plus related surplus.......................................................................................................... RCFAP866 1,250,000 39.

40. Non-qualifying capital instruments subject to phase-out from tier 2 capital............................................................... RCFAP867 0 40.

41. Total capital minority interest that is not included in tier 1 capital.............................................................................. RCFAP868 0 41.

42. Allowance for loan and lease losses and eligible credit reserves includable in tier 2 capital 42.
3 RCFA5310 1,695,608 42.a.
a. Allowance for loan and lease losses includable in tier 2 capital .........................................................................
b. (Advanced approaches institutions that exit parallel run only): Eligible credit reserves includable in tier 2 capital. RCFW5310 NR 42.b.

43. Not applicable. 43.

44. Tier 2 capital before deductions 44.

a. Tier 2 capital before deductions (sum of items 39 through 42)............................................................................ RCFAP870 2,945,608 44.a.

b. (Advanced approaches institutions that exit parallel run only): Tier 2 capital before deductions (sum of items
RCFWP870 NR 44.b.
39 through 41, plus item 42.b).................................................................................................................................
45. LESS: Tier 2 capital deductions................................................................................................................................. RCFAP872 0 45.

46. Tier 2 capital 46.

a. Tier 2 capital (greater of item 44.a minus item 45, or zero).................................................................................. RCFA5311 2,945,608 46.a.

b. (Advanced approaches institutions that exit parallel run only): Tier 2 capital (greater of item 44.b minus item
RCFW5311 NR 46.b.
45, or zero)...............................................................................................................................................................
47. Total capital 47.

a. Total capital (sum of items 26 and 46.a)............................................................................................................... RCFA3792 16,856,035 47.a.

b. (Advanced approaches institutions that exit parallel run only): Total capital (sum of items 26 and 46.b)............. RCFW3792 NR 47.b.

48. Total risk-weighted assets 48.

a. Total risk-weighted assets (from Schedule RC-R, Part II, item 31)...................................................................... RCFAA223 129,395,056 48.a.

b. (Advanced approaches institutions that exit parallel run only): Total risk-weighted assets using advanced
RCFWA223 NR 48.b.
approaches rule (from FFIEC 101 Schedule A, item 60).........................................................................................

3. Beginning with the June 30, 2020, report date, all non-advanced approaches institutions should report in item 18, column A, the sum of items 13.a, 14.a, 15.a, and 17, column A; all advanced
approaches institutions should report in item 18, column B, the sum of items 13.b, 14.b, 15.b, 16, and 17, column B.
1. Beginning with the June 30, 2020, report date, all non-advanced approaches institutions should report the sum of item 19, column A, and item 25 in item 26; all advanced approaches institutions
should report the sum of item 19, column B, and item 25 in item 26.
2. Institutions that have adopted ASU 2016-13 and have elected to apply the 3-year or the 5-year 2020 CECL transition provision should include the applicable portion of the CECL transitional
amount or the modified CECL transitional amount, respectively, in item 27.
3. Beginning with the June 30, 2020, report date, all non-advanced approaches institutions should report in item 28 the sum of items 6, 7, 8, 10.b, 13.a, 14.a, 15.a, 17 (column A), and certain
elements of item 24 - see instructions; all advanced approaches institutions should report in item 28, the sum of items 6, 7, 8, 10.b, 11, 13.b, 14.b, 15.b, 16, 17 (column B), and certain elements
of item 24 - see instructions.
4. For the December 31, 2021, report date only, advanced approaches institutions that adopt SA-CCR prior to the mandatory compliance date should enter "1" in item 31.b.
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Dollar amounts in thousands (Column A) Percentage (Column B) Percentage

49. Common equity tier 1 capital ratio (Column A: item 19, column A or B, as applicable, divided
by item 48.a) (Advanced approaches institutions that exit parallel run only: Column B: item 19, RCFAP793 10.7504% RCFWP793 NR 49.
column B, divided by item 48.b).................................................................................................
50. Tier 1 capital ratio (Column A: item 26 divided by item 48.a) (Advanced approaches
RCFA7206 10.7504% RCFW7206 NR 50.
institutions that exit parallel run only: Column B: item 26 divided by item 48.b)........................
51. Total capital ratio (Column A: item 47.a divided by item 48.a) (Advanced approaches
RCFA7205 13.0268% RCFW7205 NR 51.
institutions that exit parallel run only: Column B: item 47.b divided by item 48.b).....................

Dollar amounts in thousands

52. Institution-specific capital buffer necessary to avoid limitations on distributions and discretionary bonus payments: 52.

a. Capital conservation buffer................................................................................................................................... RCFAH311 4.7504% 52.a.

b. Advanced approaches institutions and institutions subject to Category III capital standards only: Total applicable
RCFWH312 NR 52.b.
capital buffer.............................................................................................................................................................
1 RCFAH313 NR 53.
53. Eligible retained income ...........................................................................................................................................
2 RCFAH314 NR 54.
54. Distributions and discretionary bonus payments during the quarter ........................................................................
55. Advanced approaches institutions and institutions subject to Category III capital standards only: Supplementary
55.
leverage ratio information:
3 RCFAH015 NR 55.a.
a. Total leverage exposure ......................................................................................................................................
b. Supplementary leverage ratio............................................................................................................................... RCFAH036 NR 55.b.

1. Items 38.a through 38.c should be completed only by institutions that have adopted ASU 2016-13.
3. Institutions that have adopted ASU 2016-13 should report the amount of adjusted allowances for credit losses (AACL), as defined in the regulatory capital rule, includable in tier 2 capital in item
42.a.
1. Institutions must complete item 53 only if the amount reported in item 52.a above is less than or equal to 2.5000 percent (plus any other applicable buffer if the institution is an advanced
approaches institution or a Category III institution).
2. Institutions must complete item 54 only if the amount reported in Schedule RC-R, Part I, item 46.a, in the Call Report for the December 31, 2019, report date was less than or equal to 2.5000
percent (plus any other applicable buffer if the institution is an advanced approaches institution or a Category III institution).
3. Institutions that have adopted ASU 2016-13 and have elected to apply the 3-year or the 5-year 2020 CECL transition provision should include the applicable portion of the CECL transitional
amount or the modified CECL transitional amount, respectively, in item 55.a.
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Schedule RC-R Part II - Risk-Weighted Assets(Form Type - 031)

Institutions are required to assign a 100 percent risk weight to all assets not specifically assigned a risk weight under Subpart D of the federal banking agencies' regulatory capital rules and not deducted from tier 1 or tier 2 capital.

(Column A) (Column B) (Column C) (Column D) (Column E) (Column F) (Column G) (Column H) (Column I) (Column J)
Totals from Adjustments Allocation by Allocation by Allocation by Allocation by Allocation by Allocation by Allocation by Allocation by
Schedule RC to Totals Risk-Weight Risk-Weight Risk-Weight Risk-Weight Risk-Weight Risk-Weight Risk-Weight Risk-Weight
Reported in Category 0% Category 2% Category 4% Category 10% Category 20% Category 50% Category Category
Dollar amounts in thousands Column A 100% 150%
RCFDD957 RCFDS396 RCFDD958 RCFDD959 RCFDS397 RCFDD960 RCFDS398
1.
1. Cash and balances due from depository institutions........... 11,263,550 0 8,485,615 2,777,935 0 0 0

2. Securities: 2.
RCFDD961 RCFDS399 RCFDD962 RCFDHJ74 RCFDHJ75 RCFDD963 RCFDD964 RCFDD965 RCFDS400
3 2.a.
a. Held-to-maturity securities ......................................... 252,642 0 197,128 0 0 55,514 0 0 0
b. Available-for-sale debt securities and equity securities
with readily determinable fair values not held for RCFDJA21 RCFDS402 RCFDD967 RCFDHJ76 RCFDHJ77 RCFDD968 RCFDD969 RCFDD970 RCFDS403 2.b.
trading.............................................................................. 13,444,484 -49,965 12,984,183 0 0 509,553 0 713 0
3. Federal funds sold and securities purchased under
3.
agreements to resell:
RCOND971 RCOND972 RCOND973 RCONS410 RCOND974 RCONS411
3.a.
a. Federal funds sold in domestic offices......................... 0 0 0 0 0 0
RCFDH171 RCFDH172
3.b.
b. Securities purchased under agreements to resell........ 0 0

4. Loans and leases held for sale: 4.

RCFDS413 RCFDS414 RCFDH173 RCFDS415 RCFDS416 RCFDS417
4.a.
a. Residential mortgage exposures................................. 0 0 0 0 0 0
RCFDS419 RCFDS420 RCFDH174 RCFDH175 RCFDH176 RCFDH177 RCFDS421
4.b.
b. High volatility commercial real estate exposures......... 0 0 0 0 0 0 0
c. Exposures past due 90 days or more or on RCFDS423 RCFDS424 RCFDS425 RCFDHJ78 RCFDHJ79 RCFDS426 RCFDS427 RCFDS428 RCFDS429
3 4.c.
nonaccrual ..................................................................... 0 0 0 0 0 0 0 0 0

(Column K) (Column L) (Column M) (Column N) (Column O) (Column P) (Column Q) (Column R) (Column S)

Allocation by Allocation by Allocation by Allocation by Allocation by Allocation by Allocation by Application of Application of
Risk-Weight Risk-Weight Risk-Weight Risk-Weight Risk-Weight Risk-Weight Risk-Weight Other Other
Category 250% Category 300% Category 400% Category 600% Category 625% Category Category Risk-Weighting Risk-Weighting
937.5% 1,250% Approaches Approaches
Exposure Risk-Weighted
Dollar amounts in thousands Amount Asset Amount

1. Cash and balances due from depository institutions 1.

2. Securities: 2.

a. Held-to-maturity securities 2.a.

b. Available-for-sale debt securities and equity securities with RCFDH270 RCFDS405 RCFDS406 RCFDH271 RCFDH272
2.b.
readily determinable fair values not held for trading................ NR 0 0 0 0
3. Federal funds sold and securities purchased under agreements
3.
to resell:
a. Federal funds sold in domestic offices 3.a.

3. Institutions that have adopted ASU 2016-13 should report as a negative number allowances eligible for inclusion in tier 2 capital in Column B, which excludes PCD allowances.
3. For loans and leases held for sale, exclude residential mortgage exposures, high volatility commercial real estate exposures, or sovereign exposures that are past due 90 days or more or on nonaccrual.
 DISCOVER BANK FFIEC 031
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(Column K) (Column L) (Column M) (Column N) (Column O) (Column P) (Column Q) (Column R) (Column S)

Allocation by Allocation by Allocation by Allocation by Allocation by Allocation by Allocation by Application of Application of
Risk-Weight Risk-Weight Risk-Weight Risk-Weight Risk-Weight Risk-Weight Risk-Weight Other Other
Category 250% Category 300% Category 400% Category 600% Category 625% Category Category Risk-Weighting Risk-Weighting
937.5% 1,250% Approaches Approaches
Exposure Risk-Weighted
Dollar amounts in thousands Amount Asset Amount
b. Securities purchased under agreements to resell 3.b.

4. Loans and leases held for sale: 4.

RCFDH273 RCFDH274
4.a.
a. Residential mortgage exposures......................................... 0 0
RCFDH275 RCFDH276
4.b.
b. High volatility commercial real estate exposures................. 0 0
 DISCOVER BANK FFIEC 031
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(Column K) (Column L) (Column M) (Column N) (Column O) (Column P) (Column Q) (Column R) (Column S)

Allocation by Allocation by Allocation by Allocation by Allocation by Allocation by Allocation by Application of Application of
Risk-Weight Risk-Weight Risk-Weight Risk-Weight Risk-Weight Risk-Weight Risk-Weight Other Other
Category 250% Category 300% Category 400% Category 600% Category 625% Category Category Risk-Weighting Risk-Weighting
937.5% 1,250% Approaches Approaches
Exposure Risk-Weighted
Dollar amounts in thousands Amount Asset Amount
RCFDH277 RCFDH278
6 4.c.
c. Exposures past due 90 days or more or on nonaccrual ..... 0 0

(Column A) (Column B) (Column C) (Column D) (Column E) (Column F) (Column G) (Column H) (Column I) (Column J)
Totals from Adjustments Allocation by Allocation by Allocation by Allocation by Allocation by Allocation by Allocation by Allocation by
Schedule RC to Totals Risk-Weight Risk-Weight Risk-Weight Risk-Weight Risk-Weight Risk-Weight Risk-Weight Risk-Weight
Reported in Category 0% Category 2% Category 4% Category 10% Category 20% Category 50% Category Category
Dollar amounts in thousands Column A 100% 150%

4. Loans and leases held for sale (continued): 4.

RCFDS431 RCFDS432 RCFDS433 RCFDHJ80 RCFDHJ81 RCFDS434 RCFDS435 RCFDS436 RCFDS437

4.d.
d. All other exposures...................................................... 0 0 0 0 0 0 0 0 0

5. Loans and leases held for investment: 5.

RCFDS439 RCFDS440 RCFDH178 RCFDS441 RCFDS442 RCFDS443
5.a.
a. Residential mortgage exposures................................. 5,890,361 0 0 0 1,300,612 4,589,749
RCFDS445 RCFDS446 RCFDH179 RCFDH180 RCFDH181 RCFDH182 RCFDS447
5.b.
b. High volatility commercial real estate exposures......... 0 0 0 0 0 0 0
c. Exposures past due 90 days or more or on RCFDS449 RCFDS450 RCFDS451 RCFDHJ82 RCFDHJ83 RCFDS452 RCFDS453 RCFDS454 RCFDS455
7 5.c.
nonaccrual ..................................................................... 2,203,090 0 0 0 0 0 0 0 2,203,090
RCFDS457 RCFDS458 RCFDS459 RCFDHJ84 RCFDHJ85 RCFDS460 RCFDS461 RCFDS462 RCFDS463
5.d.
d. All other exposures...................................................... 120,319,366 0 0 0 0 0 0 120,319,366 0
RCFD3123 RCFD3123
6.
6. LESS: Allowance for loan and lease losses........................ 9,283,000 9,283,000
RCFDD976 RCFDS466 RCFDD977 RCFDHJ86 RCFDHJ87 RCFDD978 RCFDD979 RCFDD980 RCFDS467
7.
7. Trading assets..................................................................... 0 0 0 0 0 0 0 0 0
RCFDD981 RCFDS469 RCFDD982 RCFDHJ88 RCFDHJ89 RCFDD983 RCFDD984 RCFDD985 RCFDH185
8 8.
8. All other assets .................................................................. 5,262,737 305,865 83,346 0 0 49,055 3,125 4,065,371 0

a. Separate account bank-owned life insurance 8.a.

b. Default fund contributions to central counterparties 8.b.

 DISCOVER BANK FFIEC 031
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(Column K) (Column L) (Column M) (Column N) (Column O) (Column P) (Column Q) (Column R) (Column S)

Allocation by Allocation by Allocation by Allocation by Allocation by Allocation by Allocation by Application of Application of
Risk-Weight Risk-Weight Risk-Weight Risk-Weight Risk-Weight Risk-Weight Risk-Weight Other Other
Category 250% Category 300% Category 400% Category 600% Category 625% Category Category Risk-Weighting Risk-Weighting
937.5% 1,250% Approaches Approaches
Exposure Risk-Weighted
Dollar amounts in thousands Amount Asset Amount

4. Loans and leases held for sale (continued): 4.

RCFDH279 RCFDH280
4.d.
d. All other exposures.............................................................. 0 0

5. Loans and leases held for investment: 5.

RCFDH281 RCFDH282
5.a.
a. Residential mortgage exposures......................................... 0 0
RCFDH283 RCFDH284
5.b.
b. High volatility commercial real estate exposures................. 0 0
RCFDH285 RCFDH286
11 5.c.
c. Exposures past due 90 days or more or on nonaccrual .... 0 0
RCFDH287 RCFDH288
5.d.
d. All other exposures.............................................................. 0 0

6. LESS: Allowance for loan and lease losses 6.

RCFDH289 RCFDH186 RCFDH290 RCFDH187 RCFDH291 RCFDH292
7.
7. Trading assets............................................................................. NR 0 0 0 0 0
RCFDH293 RCFDH188 RCFDS470 RCFDS471 RCFDH294 RCFDH295
12 8.
8. All other assets ........................................................................ 755,975 0 0 0 0 0
RCFDH296 RCFDH297
8.a.
a. Separate account bank-owned life insurance...................... 0 0
RCFDH298 RCFDH299
8.b.
b. Default fund contributions to central counterparties............ 0 0

6. For loans and leases held for sale, exclude residential mortgage exposures, high volatility commercial real estate exposures, or sovereign exposures that are past due 90 days or more or on nonaccrual.
7. For loans and leases, net of unearned income, exclude residential mortgage exposures, high volatility commercial real estate exposures, or sovereign exposures that are past due 90 days or more or on nonaccrual.
8. Includes premises and fixed assets; other real estate owned; investments in unconsolidated subsidiaries and associated companies; direct and indirect investments in real estate ventures; intangible assets; and other assets.
11. For loans and leases, net of unearned income, exclude residential mortgage exposures, high volatility commercial real estate exposures, or sovereign exposures that are past due 90 days or more or on nonaccrual.
12. Includes premises and fixed assets; other real estate owned; investments in unconsolidated subsidiaries and associated companies; direct and indirect investments in real estate ventures; intangible assets; and other assets.
 DISCOVER BANK FFIEC 031
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(Column A) (Column B) (Column Q) (Column T) Total (Column U) Total

Totals Adjustments to Exposure Risk-Weighted Risk-Weighted
Totals Reported Amount 1,250% Asset Amount Asset Amount
in Column A by Calculation by Calculation
Methodology Methodology
Dollar amounts in thousands SSFA Gross-Up

9. On-balance sheet securitization exposures: 9.

RCFDS475 RCFDS476 RCFDS477 RCFDS478 RCFDS479

9.a.
a. Held-to-maturity securities......................................................... 0 0 0 0 0
RCFDS480 RCFDS481 RCFDS482 RCFDS483 RCFDS484
9.b.
b. Available-for-sale securities........................................................ 0 0 0 0 0
RCFDS485 RCFDS486 RCFDS487 RCFDS488 RCFDS489
9.c.
c. Trading assets............................................................................. 0 0 0 0 0
RCFDS490 RCFDS491 RCFDS492 RCFDS493 RCFDS494
9.d.
d. All other on-balance sheet securitization exposures.................. 0 0 0 0 0
RCFDS495 RCFDS496 RCFDS497 RCFDS498 RCFDS499
10.
10. Off-balance sheet securitization exposures..................................... 0 0 0 0 0
 DISCOVER BANK FFIEC 031
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(Column A) (Column B) (Column C) (Column D) (Column E) (Column F) (Column G) (Column H) (Column I) (Column J)
Totals From Adjustments Allocation by Allocation by Allocation by Allocation by Allocation by Allocation by Allocation by Allocation by
Schedule RC to Totals Risk-Weight Risk-Weight Risk-Weight Risk-Weight Risk-Weight Risk-Weight Risk-Weight Risk-Weight
Reported in Category 0% Category 2% Category 4% Category 10% Category 20% Category 50% Category Category
Dollar amounts in thousands Column A 100% 150%
RCFD2170 RCFDS500 RCFDD987 RCFDHJ90 RCFDHJ91 RCFDD988 RCFDD989 RCFDD990 RCFDS503
14 11.
11. Total balance sheet assets ............................................. 149,353,230 -9,027,100 21,750,272 0 0 3,392,057 1,303,737 128,975,199 2,203,090

(Column K) (Column L) (Column M) (Column N) (Column O) (Column P) (Column Q) (Column R)

Allocation by Allocation by Allocation by Allocation by Allocation by Allocation by Allocation by Application of
Risk-Weight Risk-Weight Risk-Weight Risk-Weight Risk-Weight Risk-Weight Risk-Weight Other
Category 250% Category 300% Category 400% Category 600% Category 625% Category 937.5% Category 1,250% Risk-Weighting
Approaches
Exposure
Dollar amounts in thousands Amount
RCFDS504 RCFDS505 RCFDS506 RCFDS507 RCFDS510 RCFDH300
14 11.
11. Total balance sheet assets ............................................................. 755,975 0 0 0 0 0

(Column A) (Column B) (Column C) (Column D) (Column E) (Column F) (Column G) (Column H) (Column I) (Column J)
Face, Credit Allocation by Allocation by Allocation by Allocation by Allocation by Allocation by Allocation by Allocation by
Notional, or Equivalent Risk-Weight Risk-Weight Risk-Weight Risk-Weight Risk-Weight Risk-Weight Risk-Weight Risk-Weight
Other Amount Amount Category 0% Category 2% Category 4% Category 10% Category 20% Category 50% Category Category
Dollar amounts in thousands 100% 150%
RCFDD991 RCFDD992 RCFDD993 RCFDHJ92 RCFDHJ93 RCFDD994 RCFDD995 RCFDD996 RCFDS511
12.
12. Financial standby letters of credit...................................... 0 0 0 0 0 0 0 0 0
13. Performance standby letters of credit and RCFDD997 RCFDD998 RCFDD999 RCFDG603 RCFDG604 RCFDG605 RCFDS512
13.
transaction-related contingent items....................................... 0 0 0 0 0 0 0
14. Commercial and similar letters of credit with an original RCFDG606 RCFDG607 RCFDG608 RCFDHJ94 RCFDHJ95 RCFDG609 RCFDG610 RCFDG611 RCFDS513
14.
maturity of one year or less..................................................... 0 0 0 0 0 0 0 0 0
15. Retained recourse on small business obligations sold with RCFDG612 RCFDG613 RCFDG614 RCFDG615 RCFDG616 RCFDG617 RCFDS514
15.
recourse.................................................................................. 0 0 0 0 0 0 0

(Column A) (Column B) (Column C) (Column D) (Column E) (Column F) (Column G) (Column H) (Column I) (Column J)
Face, Credit Allocation by Allocation by Allocation by Allocation by Allocation by Allocation by Allocation by Allocation by
Notional, or Equivalent Risk-Weight Risk-Weight Risk-Weight Risk-Weight Risk-Weight Risk-Weight Risk-Weight Risk-Weight
Other Amount Amount Category 0% Category 2% Category 4% Category 10% Category 20% Category 50% Category Category
Dollar amounts in thousands 100% 150%
RCFDS515 RCFDS516 RCFDS517 RCFDS518 RCFDS519 RCFDS520 RCFDS521 RCFDS522 RCFDS523
21 16.
16. Repo-style transactions ................................................. 0 0 0 0 0 0 0 0 0
RCFDG618 RCFDG619 RCFDG620 RCFDG621 RCFDG622 RCFDG623 RCFDS524
17.
17. All other off-balance sheet liabilities.................................. 0 0 0 0 0 0 0
* 18.
18. Unused commitments:
RCFDS525 RCFDS526 RCFDS527 RCFDHJ96 RCFDHJ97 RCFDS528 RCFDS529 RCFDS530 RCFDS531
18.a.
a. Original maturity of one year or less............................ 636,630 127,326 0 0 0 0 0 127,326 0

14. For each of columns A through R of item 11, report the sum of items 1 through 9. For item 11, the sum of columns B through R must equal column A. Item 11, column A, must equal Schedule RC, item 12.
21. Includes securities purchased under agreements to resell (reverse repos), securities sold under agreements to repurchase (repos), securities borrowed, and securities lent.
*. Excludes unused commitments to asset-backed commercial paper conduits.
 DISCOVER BANK FFIEC 031
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(Column A) (Column B) (Column C) (Column D) (Column E) (Column F) (Column G) (Column H) (Column I) (Column J)
Face, Credit Allocation by Allocation by Allocation by Allocation by Allocation by Allocation by Allocation by Allocation by
Notional, or Equivalent Risk-Weight Risk-Weight Risk-Weight Risk-Weight Risk-Weight Risk-Weight Risk-Weight Risk-Weight
Other Amount Amount Category 0% Category 2% Category 4% Category 10% Category 20% Category 50% Category Category
Dollar amounts in thousands 100% 150%
RCFDG624 RCFDG625 RCFDG626 RCFDHJ98 RCFDHJ99 RCFDG627 RCFDG628 RCFDG629 RCFDS539
18.b.
b. Original maturity exceeding one year........................... 42,247 21,124 0 0 0 0 0 21,124 0
RCFDS540 RCFDS541
19.
19. Unconditionally cancelable commitments......................... 229,056,857 0
RCFDS542 RCFDS543 RCFDHK00 RCFDHK01 RCFDS544 RCFDS545 RCFDS546 RCFDS547 RCFDS548
20.
20. Over-the-counter derivatives............................................. 0 0 0 0 0 0 0 0 0
RCFDS549 RCFDS550 RCFDS551 RCFDS552 RCFDS554 RCFDS555 RCFDS556 RCFDS557
21.
21. Centrally cleared derivatives............................................. 4,168 0 0 4,168 0 0 0 0
RCFDH191 RCFDH193 RCFDH194 RCFDH195 RCFDH196 RCFDH197
22 22.
22. Unsettled transactions (failed trades) ............................. 0 0 0 0 0 0

22. For item 22, the sum of columns C through Q must equal column A.
 DISCOVER BANK FFIEC 031
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(Column O) (Column P) (Column Q) (Column R) (Column S)

Allocation by Allocation by Allocation by Application of Application of
Risk-Weight Risk-Weight Risk-Weight Other Other
Category 625% Category 937.5% Category 1,250% Risk-Weighting Risk-Weighting
Approaches Approaches
Credit Risk-Weighted
Equivalent Asset Amount
Dollar amounts in thousands Amount
RCFDH301 RCFDH302
24 16.
16. Repo-style transactions ................................................................ 0 0

17. All other off-balance sheet liabilities 17.

* 18.
18. Unused commitments:
RCFDH303 RCFDH304
18.a.
a. Original maturity of one year or less........................................... 0 0
RCFDH307 RCFDH308
18.b.
b. Original maturity exceeding one year......................................... 0 0

19. Unconditionally cancelable commitments 19.

RCFDH309 RCFDH310
20.
20. Over-the-counter derivatives........................................................... 0 0

21. Centrally cleared derivatives 21.

RCFDH198 RCFDH199 RCFDH200
25 22.
22. Unsettled transactions (failed trades) ........................................... 0 0 0

24. Includes securities purchased under agreements to resell (reverse repos), securities sold under agreements to repurchase (repos), securities borrowed, and securities lent.
*. Excludes unused commitments to asset-backed commercial paper conduits.
25. For item 22, the sum of columns C through Q must equal column A.
 DISCOVER BANK FFIEC 031
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(Column C) (Column D) (Column E) (Column F) (Column G) (Column H) (Column I) (Column J)

Allocation by Allocation by Allocation by Allocation by Allocation by Allocation by Allocation by Allocation by
Risk-Weight Risk-Weight Risk-Weight Risk-Weight Risk-Weight Risk-Weight Risk-Weight Risk-Weight
Dollar amounts in thousands Category 0% Category 2% Category 4% Category 10% Category 20% Category 50% Category 100% Category 150%
23. Total assets, derivatives, off-balance sheet items, and other items
subject to risk weighting by risk-weight category (for each of columns C
23.
through P, sum of items 11 through 22; for column Q, sum of items 10 RCFDG630 RCFDS558 RCFDS559 RCFDS560 RCFDG631 RCFDG632 RCFDG633 RCFDS561
through 22).............................................................................................. 21,750,272 0 4,168 0 3,392,057 1,303,737 129,123,649 2,203,090

24. Risk weight factor 24.

25. Risk-weighted assets by risk-weight category (for each column, item RCFDG634 RCFDS569 RCFDS570 RCFDS571 RCFDG635 RCFDG636 RCFDG637 RCFDS572
25.
23 multiplied by item 24)......................................................................... 0 0 167 0 678,411 651,869 129,123,649 3,304,635

(Column K) (Column L) (Column M) (Column N) (Column O) (Column P) (Column Q)

Allocation by Allocation by Allocation by Allocation by Allocation by Allocation by Allocation by
Risk-Weight Risk-Weight Risk-Weight Risk-Weight Risk-Weight Risk-Weight Risk-Weight
Dollar amounts in thousands Category 250% Category 300% Category 400% Category 600% Category 625% Category 937.5% Category 1,250%
23. Total assets, derivatives, off-balance sheet items, and other items subject
to risk weighting by risk-weight category (for each of columns C through P, RCFDS562 RCFDS563 RCFDS564 RCFDS565 RCFDS566 RCFDS567 RCFDS568 23.
sum of items 11 through 22; for column Q, sum of items 10 through 22)......... 755,975 0 0 0 0 0 0

24. Risk weight factor 24.

25. Risk-weighted assets by risk-weight category (for each column, item 23 RCFDS573 RCFDS574 RCFDS575 RCFDS576 RCFDS577 RCFDS578 RCFDS579
25.
multiplied by item 24)........................................................................................ 1,889,938 0 0 0 0 0 0
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Dollar amounts in thousands

26. Risk-weighted assets base for purposes of calculating the allowance for loan and lease losses 1.25 percent
RCFDS580 135,648,669 26.
threshold..........................................................................................................................................................................
27. Standardized market-risk weighted assets (applicable only to banks that are covered by the market risk capital
RCFDS581 0 27.
rule).................................................................................................................................................................................
28. Risk-weighted assets before deductions for excess allowance of loan and lease losses and allocated risk transfer
27 RCFDB704 135,648,669 28.
risk reserve ..................................................................................................................................................................
29. LESS: Excess allowance for loan and lease losses.................................................................................................. RCFDA222 6,253,613 29.

30. LESS: Allocated transfer risk reserve........................................................................................................................ RCFD3128 0 30.

31. Total risk-weighted assets (item 28 minus items 29 and 30)..................................................................................... RCFDG641 129,395,056 31.

1. Current credit exposure across all derivative contracts covered by the regulatory capital rules................................. RCFDG642 4,168 M.1.

(Column A) With a (Column B) With a (Column C) With a

remaining maturity of One remaining maturity of Over remaining maturity of Over
year or less one year through five five years
Dollar amounts in thousands years

2. Notional principal amounts of over-the-counter derivative contracts: M.2.

a. Interest rate........................................................................................... RCFDS582 35,000 RCFDS583 0 RCFDS584 0 M.2.a.

b. Foreign exchange rate and gold............................................................ RCFDS585 0 RCFDS586 0 RCFDS587 0 M.2.b.

c. Credit (investment grade reference asset)............................................. RCFDS588 0 RCFDS589 0 RCFDS590 0 M.2.c.

d. Credit (non-investment grade reference asset)..................................... RCFDS591 0 RCFDS592 0 RCFDS593 0 M.2.d.

e. Equity..................................................................................................... RCFDS594 0 RCFDS595 0 RCFDS596 0 M.2.e.

f. Precious metals (except gold)................................................................ RCFDS597 0 RCFDS598 0 RCFDS599 0 M.2.f.

g. Other..................................................................................................... RCFDS600 0 RCFDS601 0 RCFDS602 0 M.2.g.

3. Notional principal amounts of centrally cleared derivative contracts: M.3.

a. Interest rate........................................................................................... RCFDS603 19,300,000 RCFDS604 0 RCFDS605 0 M.3.a.

b. Foreign exchange rate and gold............................................................ RCFDS606 0 RCFDS607 0 RCFDS608 0 M.3.b.

c. Credit (investment grade reference asset)............................................. RCFDS609 0 RCFDS610 0 RCFDS611 0 M.3.c.

d. Credit (non-investment grade reference asset)..................................... RCFDS612 0 RCFDS613 0 RCFDS614 0 M.3.d.

e. Equity..................................................................................................... RCFDS615 0 RCFDS616 0 RCFDS617 0 M.3.e.

f. Precious metals (except gold)................................................................ RCFDS618 0 RCFDS619 0 RCFDS620 0 M.3.f.

g. Other..................................................................................................... RCFDS621 0 RCFDS622 0 RCFDS623 0 M.3.g.

Dollar amounts in thousands

1 M.4.
4. Amount of allowances for credit losses on purchased credit-deteriorated assets:
a. Loans and leases held for investment.................................................................................................................. RCFDJJ30 0 M.4.a.

b. Held-to-maturity debt securities............................................................................................................................ RCFDJJ31 0 M.4.b.

c. Other financial assets measured at amortized cost............................................................................................. RCFDJJ32 0 M.4.c.

27. Sum of items 2.b through 20, column S; items 9.a, 9.b, 9.c, 9.d, and 10, columns T and U; item 25, columns C through Q; and item 27 (if applicable).
1. Memorandum items 4.a through 4.c should be completed only by institutions that have adopted ASU 2016-13.
 DISCOVER BANK FFIEC 031
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Schedule RC-S - Servicing Securitization and Asset Sale Activities(Form Type - 031)
(Column A) 1-4 (Column B) Home (Column C) Credit (Column D) Auto (Column E) Other (Column F) (Column G) All
Family Residential Equity Lines Card Receivables Loans Consumer Loans Commercial and Other Loans, All
Loans Industrial Loans Leases, and All
Dollar amounts in thousands Other Assets
1. Outstanding principal balance of assets sold and securitized by the reporting
bank with servicing retained or with recourse or other seller-provided credit RCFDB705 RCFDB706 RCFDB707 RCFDB708 RCFDB709 RCFDB710 RCFDB711 1.
enhancements................................................................................................... 0 0 0 0 0 0 0
2. Maximum amount of credit exposure arising from recourse or other
seller-provided credit enhancements provided to structures reported in item RCFDHU09 RCFDHU10 RCFDHU11 RCFDHU12 RCFDHU13 RCFDHU14 RCFDHU15 2.
1 ........................................................................................................................ 0 0 0 0 0 0 0
Item 3 is to be completed by banks with $100 billion or more in total assets.
3. Reporting bank's unused commitments to provide liquidity to structures RCFDB726 RCFDB727 RCFDB728 RCFDB729 RCFDB730 RCFDB731 RCFDB732
3.
1
reported in item 1 ............................................................................................ 0 0 0 0 0 0 0

4. Past due loan amounts included in item 1: 4.

RCFDB733 RCFDB734 RCFDB735 RCFDB736 RCFDB737 RCFDB738 RCFDB739
4.a.
a. 30-89 days past due............................................................................... 0 0 0 0 0 0 0
RCFDB740 RCFDB741 RCFDB742 RCFDB743 RCFDB744 RCFDB745 RCFDB746
4.b.
b. 90 days or more past due...................................................................... 0 0 0 0 0 0 0
5. Charge-offs and recoveries on assets sold and securitized with servicing
retained or with recourse or other seller-provided credit enhancements (calendar 5.
year-to-date):
RIADB747 RIADB748 RIADB749 RIADB750 RIADB751 RIADB752 RIADB753
5.a.
a. Charge-offs............................................................................................ 0 0 0 0 0 0 0
RIADB754 RIADB755 RIADB756 RIADB757 RIADB758 RIADB759 RIADB760
5.b.
b. Recoveries............................................................................................. 0 0 0 0 0 0 0
Item 6 is to be completed by banks with $10 billion or more in total assets.
6. Total amount of ownership (or seller's) interest carried as securities or RCFDHU16 RCFDHU17 RCFDHU18
6.
1
loans ................................................................................................................ 0 0 0

7. Not applicable 7.

8. Not applicable 8.

9. Maximum amount of credit exposure arising from credit enhancements

provided by the reporting bank to other institutions' securitization structures in
9.
the form of standby letters of credit, purchased subordinated securities, and RCFDB776 RCFDB779 RCFDB780 RCFDB781 RCFDB782
other enhancements......................................................................................... 0 0 0 0 0
Item 10 is to be completed by banks with $10 billion or more in total assets.
10. Reporting bank's unused commitments to provide liquidity to other RCFDB783 RCFDB786 RCFDB787 RCFDB788 RCFDB789
10.
1
institutions' securitization structures ................................................................ 0 0 0 0 0
11. Assets sold with recourse or other seller-provided credit enhancements RCFDB790 RCFDB796
11.
and not securitized by the reporting bank......................................................... 0 0
12. Maximum amount of credit exposure arising from recourse or other RCFDB797 RCFDB803
12.
seller-provided credit enhancements provided to assets reported in item 11.... 0 0

1. The $100 billion asset-size test is based on the total assets reported on the June 30, 2022, Report of Condition.
1. The $10 billion asset-size test is based on the total assets reported on the June 30, 2022, Report of Condition.
1. The $10 billion asset-size test is based on the total assets reported on the June 30, 2022, Report of Condition.
 DISCOVER BANK FFIEC 031
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Dollar amounts in thousands

1. Not applicable M.1.

2. Outstanding principal balance of assets serviced for others (includes participations serviced for others): M.2.

a. Closed-end 1-4 family residential mortgages serviced with recourse or other servicer-provided credit
RCFDB804 0 M.2.a.
enhancements..........................................................................................................................................................
b. Closed-end 1-4 family residential mortgages serviced with no recourse or other servicer-provided credit
RCFDB805 0 M.2.b.
enhancements..........................................................................................................................................................
1 RCFDA591 0 M.2.c.
c. Other financial assets (includes home equity lines) ............................................................................................
d. 1-4 family residential mortgages serviced for others that are in process of foreclosure at quarter-end (includes
RCFDF699 0 M.2.d.
closed-end and open-end loans)..............................................................................................................................
Memorandum item 3 is to be completed by banks with $10 billion or more in total assets.
M.3.
2
3. Asset-backed commercial paper conduits:
a. Maximum amount of credit exposure arising from credit enhancements provided to conduit structures in the
M.3.a.
form of standby letters of credit, subordinated securities, and other enhancements:
1. Conduits sponsored by the bank, a bank affiliate, or the bank's holding company....................................... RCFDB806 0 M.3.a.1.

2. Conduits sponsored by other unrelated institutions...................................................................................... RCFDB807 0 M.3.a.2.

b. Unused commitments to provide liquidity to conduit structures: M.3.b.

1. Conduits sponsored by the bank, a bank affiliate, or the bank's holding company....................................... RCFDB808 0 M.3.b.1.

2. Conduits sponsored by other unrelated institutions...................................................................................... RCFDB809 0 M.3.b.2.

2 RCFDC407 0 M.4.
4. Outstanding credit card fees and finance charges included in Schedule RC-S, item 1, column C ............................

Schedule RC-T - Fiduciary and Related Services(Form Type - 031)

Dollar amounts in thousands
1. Does the institution have fiduciary powers? (If "NO," do not complete Schedule RC-T.)............................................ RCFDA345 No 1.

2. Does the institution exercise the fiduciary powers it has been granted?..................................................................... RCFDA346 No 2.

3. Does the institution have any fiduciary or related activity (in the form of assets or accounts) to report in this schedule?
RCFDB867 No 3.
(If "NO," do not complete the rest of Schedule RC-T.)....................................................................................................

(Column A) Managed (Column B) (Column C) Number of (Column D) Number of

Assets Non-Managed Assets Managed Accounts Non-Managed
Dollar amounts in thousands Accounts

4. Personal trust and agency accounts........................................... RCFDB868 NR RCFDB869 NR RCFDB870 NR RCFDB871 NR 4.

5. Employee benefit and retirement-related trust and agency

5.
accounts:
a. Employee benefit - defined contribution.............................. RCFDB872 NR RCFDB873 NR RCFDB874 NR RCFDB875 NR 5.a.

b. Employee benefit - defined benefit...................................... RCFDB876 NR RCFDB877 NR RCFDB878 NR RCFDB879 NR 5.b.

c. Other employee benefit and retirement-related accounts..... RCFDB880 NR RCFDB881 NR RCFDB882 NR RCFDB883 NR 5.c.

6. Corporate trust and agency accounts......................................... RCFDB884 NR RCFDB885 NR RCFDC001 NR RCFDC002 NR 6.

7. Investment management and investment advisory agency

RCFDB886 NR RCFDJ253 NR RCFDB888 NR RCFDJ254 NR 7.
accounts.........................................................................................
8. Foundation and endowment trust and agency accounts............ RCFDJ255 NR RCFDJ256 NR RCFDJ257 NR RCFDJ258 NR 8.

9. Other fiduciary accounts............................................................. RCFDB890 NR RCFDB891 NR RCFDB892 NR RCFDB893 NR 9.

10. Total fiduciary accounts (sum of items 4 through 9).................. RCFDB894 NR RCFDB895 NR RCFDB896 NR RCFDB897 NR 10.

11. Custody and safekeeping accounts.......................................... RCFDB898 NR RCFDB899 NR 11.

12. Fiduciary accounts held in foreign offices (included in items 10

RCFNB900 NR RCFNB901 NR RCFNB902 NR RCFNB903 NR 12.
and 11)............................................................................................
13. Individual Retirement Accounts, Health Savings Accounts, and
RCFDJ259 NR RCFDJ260 NR RCFDJ261 NR RCFDJ262 NR 13.
other similar accounts (included in items 5.c and 11).....................

1. Memorandum item 2.c is to be completed if the principal balance of other financial assets serviced for others is more than $10 million.
2. The $10 billion asset-size test is based on the total assets reported on the June 30, 2022, Report of Condition.
2. Memorandum item 4 is to be completed by banks that (1) together with affiliated institutions, have outstanding credit card receivables (as defined in the instructions) that exceed $500 million
as of the report date, or (2) are credit card specialty banks as defined for Uniform Bank Performance Report purposes.
 DISCOVER BANK FFIEC 031
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Dollar amounts in thousands

14. Personal trust and agency accounts.......................................................................................................................... RIADB904 NR 14.

15. Employee benefit and retirement-related trust and agency accounts: 15.

a. Employee benefit - defined contribution............................................................................................................... RIADB905 NR 15.a.

b. Employee benefit - defined benefit....................................................................................................................... RIADB906 NR 15.b.

c. Other employee benefit and retirement-related accounts..................................................................................... RIADB907 NR 15.c.

16. Corporate trust and agency accounts....................................................................................................................... RIADA479 NR 16.

17. Investment management and investment advisory agency accounts....................................................................... RIADJ315 NR 17.

18. Foundation and endowment trust and agency accounts........................................................................................... RIADJ316 NR 18.

19. Other fiduciary accounts............................................................................................................................................ RIADA480 NR 19.

20. Custody and safekeeping accounts........................................................................................................................... RIADB909 NR 20.

21. Other fiduciary and related services income............................................................................................................. RIADB910 NR 21.

22. Total gross fiduciary and related services income (sum of items 14 through 21) (must equal Schedule RI, item
RIAD4070 0 22.
5.a)..................................................................................................................................................................................
a. Fiduciary and related services income - foreign offices (included in item 22)...................................................... RIADB912 NR 22.a.

23. Less: Expenses......................................................................................................................................................... RIADC058 NR 23.

24. Less: Net losses from fiduciary and related services................................................................................................ RIADA488 NR 24.

25. Plus: Intracompany income credits for fiduciary and related services....................................................................... RIADB911 NR 25.

26. Net fiduciary and related services income................................................................................................................. RIADA491 NR 26.

(Column A) Personal Trust (Column B) Employee (Column C) All Other

and Agency and Benefit and Accounts
Investment Management Retirement-Related Trust
Dollar amounts in thousands Agency Accounts and Agency Accounts

1. Managed assets held in fiduciary accounts: M.1.

a. Noninterest-bearing deposits................................................................ RCFDJ263 NR RCFDJ264 NR RCFDJ265 NR M.1.a.

b. Interest-bearing deposits....................................................................... RCFDJ266 NR RCFDJ267 NR RCFDJ268 NR M.1.b.

c. U.S. Treasury and U.S. Government agency obligations....................... RCFDJ269 NR RCFDJ270 NR RCFDJ271 NR M.1.c.

d. State, county, and municipal obligations................................................ RCFDJ272 NR RCFDJ273 NR RCFDJ274 NR M.1.d.

e. Money market mutual funds.................................................................. RCFDJ275 NR RCFDJ276 NR RCFDJ277 NR M.1.e.

f. Equity mutual funds................................................................................ RCFDJ278 NR RCFDJ279 NR RCFDJ280 NR M.1.f.

g. Other mutual funds................................................................................ RCFDJ281 NR RCFDJ282 NR RCFDJ283 NR M.1.g.

h. Common trust funds and collective investment funds........................... RCFDJ284 NR RCFDJ285 NR RCFDJ286 NR M.1.h.

i. Other short-term obligations................................................................... RCFDJ287 NR RCFDJ288 NR RCFDJ289 NR M.1.i.

j. Other notes and bonds........................................................................... RCFDJ290 NR RCFDJ291 NR RCFDJ292 NR M.1.j.

k. Investments in unregistered funds and private equity investments....... RCFDJ293 NR RCFDJ294 NR RCFDJ295 NR M.1.k.

l. Other common and preferred stocks...................................................... RCFDJ296 NR RCFDJ297 NR RCFDJ298 NR M.1.l.

m. Real estate mortgages......................................................................... RCFDJ299 NR RCFDJ300 NR RCFDJ301 NR M.1.m.

n. Real estate............................................................................................ RCFDJ302 NR RCFDJ303 NR RCFDJ304 NR M.1.n.

o. Miscellaneous assets............................................................................ RCFDJ305 NR RCFDJ306 NR RCFDJ307 NR M.1.o.

p. Total managed assets held in fiduciary accounts (for each column, sum
RCFDJ308 NR RCFDJ309 NR RCFDJ310 NR M.1.p.
of Memorandum items 1.a through 1.o)....................................................

(Column A) Managed Assets (Column B) Number of Managed

Dollar amounts in thousands Accounts

q. Investments of managed fiduciary accounts in advised or sponsored mutual funds............. RCFDJ311 NR RCFDJ312 NR M.1.q.
 DISCOVER BANK FFIEC 031
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(Column A) Number of Issues (Column B) Principal Amount

Dollar amounts in thousands Outstanding

2. Corporate trust and agency accounts: M.2.

a. Corporate and municipal trusteeships............................................................................ RCFDB927 NR RCFDB928 NR M.2.a.

1. Issues reported in Memorandum item 2.a that are in default.................................. RCFDJ313 NR RCFDJ314 NR M.2.a.1.

b. Transfer agent, registrar, paying agent, and other corporate agency............................. RCFDB929 NR M.2.b.

(Column A) Number of Funds (Column B) Market Value of

Dollar amounts in thousands Fund Assets
Memoranda items 3.a through 3.g are to be completed by banks with collective investment funds and common
trust funds with a total market value of $1 billion or more as of the preceding December 31. M.3.
3. Collective investment funds and common trust funds:
a. Domestic equity.............................................................................................................. RCFDB931 NR RCFDB932 NR M.3.a.

b. International/Global equity.............................................................................................. RCFDB933 NR RCFDB934 NR M.3.b.

c. Stock/Bond blend............................................................................................................ RCFDB935 NR RCFDB936 NR M.3.c.

d. Taxable bond.................................................................................................................. RCFDB937 NR RCFDB938 NR M.3.d.

e. Municipal bond............................................................................................................... RCFDB939 NR RCFDB940 NR M.3.e.

f. Short term investments/Money market............................................................................ RCFDB941 NR RCFDB942 NR M.3.f.

g. Specialty/Other............................................................................................................... RCFDB943 NR RCFDB944 NR M.3.g.

h. Total collective investment funds (sum of Memorandum items 3.a through 3.g)............ RCFDB945 NR RCFDB946 NR M.3.h.

(Column A) Gross Losses (Column B) Gross Losses (Column C) Recoveries

Dollar amounts in thousands Managed Accounts Non-Managed Accounts

4. Fiduciary settlements, surcharges, and other losses: M.4.

a. Personal trust and agency accounts..................................................... RIADB947 NR RIADB948 NR RIADB949 NR M.4.a.

b. Employee benefit and retirement-related trust and agency accounts..... RIADB950 NR RIADB951 NR RIADB952 NR M.4.b.

c. Investment management agency accounts........................................... RIADB953 NR RIADB954 NR RIADB955 NR M.4.c.

d. Other fiduciary accounts and related services...................................... RIADB956 NR RIADB957 NR RIADB958 NR M.4.d.

e. Total fiduciary settlements, surcharges, and other losses (sum of

Memorandum items 4.a through 4.d) (sum of columns A and B minus RIADB959 NR RIADB960 NR RIADB961 NR M.4.e.
column C must equal Schedule RC-T, item 24)........................................

Schedule RC-V - Variable Interest Entities(Form Type - 031)

(Column A) Securitization (Column B) Other VIEs
Dollar amounts in thousands Vehicles
1. Assets of consolidated variable interest entities (VIEs) that can be used only to settle
1.
obligations of the consolidated VIEs:
a. Cash and balances due from depository institutions...................................................... RCFDJ981 0 RCFDJF84 0 1.a.

b. Securities not held for trading......................................................................................... RCFDHU20 43,241 RCFDHU21 0 1.b.

c. Loans and leases held for investment, net of allowance, and held for sale.................... RCFDHU22 29,242,746 RCFDHU23 0 1.c.

d. Other real estate owned................................................................................................. RCFDK009 0 RCFDJF89 0 1.d.

e. Other assets................................................................................................................... RCFDJF91 1,110 RCFDJF90 0 1.e.

2. Liabilities of consolidated VIEs for which creditors do not have recourse to the general credit
2.
of the reporting bank:
a. Other borrowed money................................................................................................... RCFDJF92 11,790,435 RCFDJF85 0 2.a.

b. Other liabilities................................................................................................................ RCFDJF93 19,279 RCFDJF86 0 2.b.

3. All other assets of consolidated VIEs (not included in items 1.a. through 1.e above)............ RCFDK030 1,444 RCFDJF87 0 3.

4. All other liabilities of consolidated VIEs (not included in items 2.a through 2.b above)......... RCFDK033 -47,240 RCFDJF88 0 4.

Dollar amounts in thousands

5. Total assets of asset-backed commercial paper (ABCP) conduit VIEs........................................................................ RCFDJF77 0 5.

6. Total liabilities of ABCP conduit VIEs........................................................................................................................... RCFDJF78 0 6.

 DISCOVER BANK FFIEC 031
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Optional Narrative Statement Concerning the Amounts Reported in the Consolidated

Reports of Condition and Income(Form Type - 031)
Dollar amounts in thousands
1. Comments?................................................................................................................................................................. RCON6979 No 1.

2. Bank Management Statement..................................................................................................................................... TEXT6980 NR 2.

 (;+,%,7

AGREEMENT AND PLAN OF MERGER

Discover Bank
with and into
Capital One, National Association
under the charter of
Capital One, National Association
under the title of
“Capital One, National Association”

THIS AGREEMENT AND PLAN OF MERGER (this “Agreement”) is made on this 19th day of
February, 2024, between Capital One, National Association (“Capital One Bank” or the “Resulting
Bank”), a national banking association, with its main office located at 1680 Capital One Drive, McLean,
Virginia 22102, and Discover Bank (“Discover Bank”), a Delaware-chartered bank, with its main office
located at 502 East Market Street, Greenwood, DE 19950. Collectively, Capital One Bank and Discover
Bank are referred to as the “Banks.”

WHEREAS, the Board of Directors of Capital One Bank has unanimously approved this
Agreement and authorized its execution pursuant to the authority given by and in accordance with the
provisions of the National Bank Act (the “Act”);

WHEREAS, the Board of Directors of Discover Bank has unanimously approved this Agreement
and authorized its execution pursuant to the authority given by and in accordance with the laws of the State
of Delaware;

WHEREAS, Capital One Financial Corporation (“Capital One”), which owns all of the
outstanding shares of Capital One Bank, Vega Merger Sub, Inc. (“Merger Sub”), a Delaware corporation
and a direct, wholly owned subsidiary of Capital One, and Discover Financial Services (“Discover”), which
owns all of the outstanding shares of Discover Bank, have entered into an Agreement and Plan of Merger
(the “Holding Company Agreement”), which, among other things, provides for (i) the merger of Merger
Sub with and into Discover (“First Merger”), with Discover continuing as the surviving corporation (the
“Surviving Company”), and (ii) immediately after the First Merger and as part of a single, integrated
transaction, Capital One shall cause the Surviving Company to be merged with and into Capital One (the
“Second Step Merger”), all subject to the terms and conditions of such Holding Company Agreement;

WHEREAS, Capital One, as the sole shareholder of Capital One Bank, and Discover, as the sole
stockholder of Discover Bank, have approved this Agreement; and

WHEREAS, each of the Banks is entering into this Agreement to provide for the merger of
Discover Bank with and into Capital One Bank, with Capital One Bank being the surviving bank of such
merger transaction (the “Bank Merger”) under the name of Capital One Bank, National Association,
pursuant to the provisions of, and with the effect provided in, 12 U.S.C. § 215a, 12 U.S.C. § 1828(c), the
regulations of the Office of the Comptroller of the Currency (the “OCC”) and, to the extent applicable, the
relevant banking statutes of the State of Delaware and the regulations of the Office of the State Bank
Commissioner of the State of Delaware and subject to, and immediately following, the closing of the Second
Step Merger.

NOW, THEREFORE, for and in consideration of the premises and the mutual promises and
agreements herein contained, the parties hereto agree as follows:
 SECTION 1

Subject to the terms and conditions of this Agreement and those set forth in the Holding Company
Agreement, at the Effective Time (as defined below) and pursuant to the Act, Discover Bank shall be
merged with and into Capital One Bank in the Bank Merger. Capital One Bank shall continue its existence
as the Resulting Bank under the charter of Capital One Bank, and the separate corporate existence of
Discover Bank shall cease. The closing of the Bank Merger shall become effective following the
satisfaction or effective waiver of all of the conditions precedent to the consummation of the Bank Merger
specified in this Agreement and at the time specified in the letter issued by the OCC in connection with the
Bank Merger (such time when the Bank Merger becomes effective, the “Effective Time”).

It is intended that the Bank Merger shall qualify as a “reorganization” within the meaning of Section
368(a) of the Internal Revenue Code of 1986, as amended (the “Code”), and that this Agreement is intended
to be and is adopted as a plan of reorganization for the purposes of Sections 354 and 361 of the Code.

SECTION 2

The name of the Resulting Bank at the Effective Time shall be “Capital One, National Association”
The Resulting Bank will exercise trust powers.

SECTION 3

The business of the Resulting Bank from and after the Effective Time shall be that of a national
banking association. This business of the Resulting Bank shall be conducted at its main office, which shall
be located at 1680 Capital One Drive, McLean, Virginia 22102, as well as at its legally established branches
and at the banking offices of Discover Bank, all of which shall be acquired in the Bank Merger, in each
case without limiting the authority under applicable law of the Resulting Bank to close, relocate, or
otherwise make any changes regarding any such branch. The deposit accounts of the Resulting Bank will
be insured by the Federal Deposit Insurance Corporation in accordance with the Federal Deposit Insurance
Act.

SECTION 4

At the Effective Time, the amount of issued and outstanding capital stock of the Resulting Bank
shall be the amount of capital stock of Capital One Bank issued and outstanding immediately before the
Effective Time.

SECTION 5

All assets of Discover Bank and Capital One Bank, as they exist at the Effective Time, shall pass
to and vest in the Resulting Bank without any conveyance or other transfer; the Resulting Bank shall be
considered the same business and corporate entity as each constituent bank with all the rights, powers and
duties of each constituent bank; and the Resulting Bank shall be responsible for all of the liabilities of every
kind and description, of Discover Bank and Capital One Bank existing as of the Effective Time, all in
accordance with the provisions of the Act.

SECTION 6

At the Effective Time, each outstanding share of common stock of Discover Bank shall be canceled
with no cash, shares of common stock or other property being paid therefor.

-2-
 Outstanding certificates representing shares of the common stock of Discover Bank shall, at the
Effective Time, be canceled.

SECTION 7

Upon the Effective Time, the then-outstanding shares of Capital One Bank’s common stock shall
continue to remain outstanding shares of Capital One Bank’s common stock, all of which shall continue to
be owned by Capital One.

SECTION 8

Effective as of the Effective Time: (i) the directors of the Resulting Bank shall be the persons
serving as directors of Capital One Bank immediately before the Effective Time as well as any persons duly
appointed as directors by Capital One as set forth in Section 6.12 of the Holding Company Agreement; and
(ii) the officers of the Resulting Bank shall be the persons serving as officers of Capital One Bank
immediately before the Effective Time as well any persons duly appointed as officers by Capital One Bank.

SECTION 9

This Agreement has been approved by Capital One, which owns all of the outstanding shares of
Capital One Bank, and by Discover, which owns all of the outstanding shares of Discover Bank.

SECTION 10

The Bank Merger and the respective obligations of each party hereto to consummate the Bank
Merger are subject to the fulfillment or effective waiver of each of the following conditions:

(a) Each of the First Merger and the Second Step Merger shall have become effective.

(b) The OCC shall have approved the Bank Merger and shall have issued all other necessary
authorizations and approvals for the Bank Merger, and any statutory waiting period shall
have expired or been terminated.

This Agreement may be amended or terminated, and the Bank Merger may be abandoned, only by
the mutual written agreement of Capital One Bank and Discover Bank at any time, whether before or after
filings are made for regulatory approval of the Bank Merger and notwithstanding the prior approval of this
Agreement and the Bank Merger by the sole shareholder of Capital One Bank or Discover Bank.

SECTION 11

Effective as of the Effective Time, the Articles of Association and Bylaws of the Resulting Bank
shall consist of the Articles of Association and Bylaws of Capital One Bank as in effect immediately before
the Effective Time.

SECTION 12

This Agreement shall automatically terminate in the event and at the time of any termination of the
Holding Company Agreement.

-3-
 SECTION 13

Each of the parties hereto represents and warrants that this Agreement has been duly authorized,
executed and delivered by such party and (assuming due authorization, execution and delivery by the other
party) constitutes a valid and binding obligation of such party, enforceable against it in accordance with the
terms hereof (except in all cases as such enforceability may be limited by bankruptcy, insolvency,
fraudulent transfer, moratorium, reorganization or similar laws of general applicability affecting the rights
of creditors generally and the availability of equitable remedies).

Subject in all respects to Section 6.1 of the Holding Company Agreement, each of the parties shall
use its reasonable best efforts to take, or cause to be taken, all actions necessary, proper or advisable to
comply promptly with all legal requirements that may be imposed on such party or its Subsidiaries with
respect to the Bank Merger and, subject to the conditions set forth in Section 10 hereof, to consummate the
transactions contemplated by this Agreement.

None of the representations, warranties or agreements in this Agreement, or in any instrument

delivered pursuant to this Agreement, shall survive the Effective Time or valid termination of this
Agreement.

This Agreement embodies the entire agreement and understanding of the Banks with respect to the
transactions contemplated hereby, and supersedes all other prior commitments, arrangements or
understandings, both oral and written, among the Banks with respect to the subject matter hereof, other than
the Holding Company Agreement.

The provisions of this Agreement are intended to be interpreted and construed in a manner so as to
make such provisions valid, binding and enforceable. If any provision of this Agreement is determined to
be partially or wholly invalid, illegal or unenforceable, then such provision shall be deemed to be modified
or restricted to the extent necessary to make such provision valid, binding and enforceable; or, if such
provision cannot be modified or restricted in a manner so as to make such provision valid, binding and
enforceable, then such provision shall be deemed to be excised from this Agreement and the validity,
binding effect and enforceability of the remaining provisions of this Agreement shall not be affected or
impaired in any manner.

No waiver, amendment, modification or change of any provision of this Agreement shall be

effective unless and until made in writing and signed by the Banks. No waiver, forbearance or failure by
any Bank of its rights to enforce any provision of this Agreement shall constitute a waiver or estoppel of
such Bank’s right to enforce any other provision of this Agreement or a continuing waiver by such Bank of
compliance with any provision hereof.

All notices and other communications hereunder shall be in writing and shall be deemed given (a)
on the date of delivery if delivered personally, or if by e-mail transmission (with confirmation of receipt
requested), (b) on the earlier of confirmed receipt or the fifth (5th) business day following the date of
mailing if mailed by registered or certified mail (return receipt requested) or (c) on the first (1st) business
day following the date of dispatch if delivered utilizing a next-day service by a recognized next-day courier
(with confirmation) to the parties at the following addresses (or at such other address for a party as shall be
specified by like notice):

-4-
 (a) if to Discover Bank, to:

Discover Bank
2500 Lake Cook Road
Riverwoods, Illinois 60015

Attention: Chief Executive Officer and President

Executive Vice President, Chief Legal Officer, General
Counsel and Secretary

With a copy (which shall not constitute notice) to:

Sullivan & Cromwell LLP

125 Broad Street
New York, New York 10004

Attention: H. Rodgin Cohen

Mitchell S. Eitel
Jared M. Fishman
Email: [email protected]
[email protected]
[email protected]

and

(b) if to Capital One Bank, to:

Capital One, National Association

1680 Capital One Drive
McLean, VA 22102

Attention: Executive Vice President, Corporate Development

Chief Counsel, Corporate and Strategic Transactions

With a copy (which shall not constitute notice) to:

Wachtell, Lipton, Rosen & Katz

51 West 52nd Street
New York, NY 10019

Attention: Edward D. Herlihy

Matthew M. Guest
Brandon C. Price
E-mail: [email protected]
[email protected]
[email protected]

Each Bank agrees that it will bring any action or proceeding in respect of any claim arising out of
or related to this Agreement or the transactions contemplated hereby exclusively in the Delaware Court of
Chancery and any state appellate court therefrom within the State of Delaware or, if the Delaware Court of
Chancery declines to accept jurisdiction over a particular matter, any federal or state court of competent

-5-
jurisdiction located in the State of Delaware (the “Chosen Courts”), and, solely in connection with claims
arising under this Agreement or the transactions that are the subject of this Agreement, (i) irrevocably
submits to the exclusive jurisdiction of the Chosen Courts, (ii) waives any objection to laying venue in any
such action or proceeding in the Chosen Courts, (iii) waives any objection that the Chosen Courts are an
inconvenient forum or do not have jurisdiction over any party and (iv) agrees that service of process upon
such party in any such action or proceeding will be effective if notice is given in accordance with this
Section 13.

Except to the extent federal law is applicable, this Agreement shall be governed by and construed
and enforced in accordance with the laws of the State of Delaware without regard to conflicts of laws
principles. EACH OF THE PARTIES HERETO WAIVES ANY RIGHT TO REQUEST A TRIAL BY
JURY IN ANY LITIGATION WITH RESPECT TO THIS AGREEMENT AND REPRESENTS THAT
COUNSEL HAS BEEN CONSULTED SPECIFICALLY AS TO THIS WAIVER.

Neither this Agreement nor any of the rights, interests or obligations may be assigned by any of the
parties hereto (whether by operation of law or otherwise) and any attempted assignment in contravention
hereof shall be null and void. Subject to the preceding sentence, this Agreement will be binding upon, inure
to the benefit of, and be enforceable by, the Banks’ respective successors and permitted assigns. Unless
otherwise expressly stated herein, this Agreement shall not benefit or create any right of action in or on
behalf of any person or entity other than the Banks.

This Agreement may be executed in counterparts (including by facsimile or optically scanned

electronic mail attachment), each of which shall be deemed to be original, but all of which together shall
constitute one and the same instrument.

[Signature page follows]

-6-
 (;+,%,7

Summary of the Agreement and Plan of Merger

February 18, 2024

Structure Capital One Financial Corporation (“Capital One”) will acquire Discover Financial
Services (“Discover”) through a merger of a newly formed merger subsidiary with and
into Discover, with Discover continuing as the surviving corporation and a subsidiary
of Capital One (the “Merger”). Immediately following the Merger and as part of a
single, integrated transaction, Discover will merge with and into Capital One, with
Capital One continuing as the surviving corporation (the “Second-Step Merger” and,
together with the Merger, the “Mergers”).
Immediately following the Second-Step Merger, Discover’s wholly-owned bank
subsidiary, Discover Bank, will merge with and into Capital One’s wholly-owned bank
subsidiary, Capital One, National Association (“CONA”), with CONA continuing as
the surviving bank.

Consideration At the closing, each outstanding share of Discover’s common stock will be converted
into the right to receive 1.0192 shares of Capital One common stock (the “Exchange
Ratio”).

Treatment of At the closing, each outstanding share of Discover preferred stock will be converted
Discover Preferred into the right to receive one share of a newly created series of Capital One preferred
Stock stock having materially the same terms as the applicable series of Discover preferred
stock.

Treatment of At the closing, each outstanding Discover restricted stock unit award will be converted
Discover Equity into a corresponding restricted stock unit award with respect to Capital One common
Awards and the stock, with the number of shares adjusted based on the Exchange Ratio.
Discover Employee
At the closing, each outstanding Discover performance stock unit award will be
Stock Purchase Plan
converted into a cash-based award based upon the average value of Capital One
common stock for the five trading days prior to the closing, with the number of shares
underlying the Discover performance stock unit awards to be determined at the closing
based on (1) the greater of target and actual performance through the last quarter
ending prior to the closing, if more than one year of the performance period has
elapsed as of the closing, and (2) target performance, if one year or less of the
performance period has elapsed as of the closing.
The converted awards will generally have the same terms and conditions (including
vesting) as applied to the corresponding Discover performance stock unit awards, with
the converted cash-based performance stock unit awards to vest solely based on
continued service following the closing.
Discover will continue to operate the Discover Employee Stock Purchase Plan (the
“ESPP”), with the final purchase under the ESPP to occur no later than five business
days prior to the closing.

No Appraisal Rights Holders of Discover common stock and holders of Discover preferred stock will not be
entitled to appraisal rights in the Mergers.

Governance At the closing, the size of the Capital One board will be increased to accommodate the
appointment of current Discover directors, determined by mutual agreement of
Discover and Capital One, to the Capital One board.

Conditions to Each party’s obligation to close will be subject to the following conditions:
Closing x Discover stockholder approval. Approval by Discover’s stockholders of the
Merger Agreement;
x Capital One stockholder approval. Approval by Capital One’s stockholders of
the issuance of Capital One common stock to Discover stockholders;
x Required regulatory approvals. Receipt of required regulatory approvals,
without any approval resulting in a condition that would reasonably be
expected to have a Material Adverse Effect (as defined below) on the
surviving corporation and its subsidiaries, taken as a whole, after giving effect
to the Mergers (a “Materially Burdensome Regulatory Condition”);
x No injunction. Absence of any law or injunction prohibiting the completion of
the Mergers;
x Registration statement. Effectiveness of the S-4 registration statement for the
shares of Capital One stock to be issued in the Mergers;
x Exchange listing. Authorization for listing on the NYSE of the shares of
Capital One common stock to be issued in the Merger;
x Tax opinion. Receipt of a tax opinion from the party’s counsel to the effect that
the Mergers, taken together, qualify as a “reorganization” for tax purposes;
x Accuracy of representations. The accuracy of the other party’s representations
and warranties as of the date of the Merger Agreement and as of the closing
date, generally subject to a “Material Adverse Effect” standard (described
below); and
x Compliance with covenants. Material performance of the other party’s
obligations, covenants and agreements under the Merger Agreement.

MAE Standard For purposes of the conditions to closing, breaches of each party’s representations and
warranties will, with certain exceptions, be deemed not to have occurred unless such
breaches, individually or in the aggregate, have had, or would reasonably be expected
to have, a Material Adverse Effect on that party.
“Material Adverse Effect” with respect to Discover or Capital One is defined as any
effect, change, event, circumstance, condition, occurrence or development that, either
individually or in the aggregate, has had or would reasonably be expected to have a
material adverse effect on (i) the business, properties, assets, results of operations or
financial condition of such party and its subsidiaries taken as a whole or (ii) the ability
of such party to timely consummate the Mergers.
However, in the case of clause (i), a “Material Adverse Effect” excludes:
x the following changes if they occur after the date of the Merger Agreement,
except to the extent that they affect the party materially disproportionately, in
the case of both parties, compared to banking organizations substantially
engaged in the credit card lending business or, in the case of Discover, also as
compared to banking organizations engaged in the funds transfer network or
transaction processing network businesses:
x changes in GAAP or applicable regulatory accounting requirements;
x changes in laws, rules or regulations generally applicable to companies in
the industry in which the party operates;
x changes in global, national or regional political conditions (including the
outbreak of war or acts of terrorism) or in economic or market (including
equity, credit and debt markets and interest rate changes) conditions
affecting the financial services industry generally; and
 x changes resulting from hurricanes, earthquakes, tornados, floods or other
natural disasters or from any outbreak of any disease or other public health
events;
x the public disclosure of the Mergers or actions required by the Merger
Agreement or taken with the prior written consent of the other party;
x any stockholder litigation arising out of the Merger Agreement or the Mergers
that is brought or threatened against a party or any party’s Board of Directors
between signing and closing; and
x declines in the trading price of the party’s common stock or the failure, in and
of itself, to meet earnings projections or internal financial forecasts (excluding
the underlying causes).

Regulatory Efforts Each of Discover and Capital One agrees to use reasonable best efforts to promptly
make all necessary filings and to obtain all required regulatory approvals, provided that
no party will be required to, and no party may, commit to any Materially Burdensome
Regulatory Condition or be required to contest any action or proceeding by a bank
regulatory agency.

No Shop; Each of Discover and Capital One agrees to non-solicitation covenants restricting each
Stockholder from soliciting or negotiating competing business combination proposals or changing
Recommendation its recommendation that its stockholders approve the transaction.
Each party’s non-solicitation commitments are subject to a customary fiduciary duty
exception permitting its board of directors to engage in discussions regarding an
unsolicited proposal prior to the receipt of approval by such party’s stockholders of the
transaction to the extent that the board determines in good faith that failure to do so
would more likely than not result in a violation of its fiduciary duties.
Each party’s board of directors is required to recommend approval of the transaction to
its stockholders and is not permitted to change its recommendation unless it determines
that failure to do so would more likely than not result in a violation of its fiduciary
duties.
Neither party may terminate the Merger Agreement on account of a competing
business combination proposal, and each party is required to submit the transaction to a
vote at its stockholder meeting, even if its board of directors changes its
recommendation to stockholders.

Termination Rights The Merger Agreement will be terminable at any time prior to the closing by mutual
consent, and in the following limited circumstances:
x Permanent injunction. By Discover or Capital One if there is a final injunction
prohibiting the closing or if a required regulatory approval has been finally denied
(unless the failure to obtain a regulatory approval is due to the terminating party’s
breach of its covenants in the Merger Agreement);
x Outside date. By Discover or Capital One if the Merger has not been consummated
by the date that is 12 months after the date of the Merger Agreement, to be
automatically extended to 15 months after the date of the Merger Agreement if the
regulatory conditions have not been satisfied but all other conditions have been
satisfied as of such date (the “Outside Date”) (so long as the terminating party’s
breach of its covenants in the Merger Agreement is not the cause of the delay);
x Breach. By Discover or Capital One if there is an uncured or incurable breach by
the other party of any of its covenants or representations that would result in the
failure of a closing condition; or
 x Recommendation change. By Discover or Capital One if the other party or its
board of directors has withdrawn its recommendation that its stockholders approve
the Merger Agreement, failed to make such recommendation in the joint proxy
statement, recommended a competing business combination, or failed to
recommend against a competing business combination or reaffirm its
recommendation of the Merger Agreement upon the other party’s request (any of
the foregoing, a “Recommendation Change”) or materially breached its no-shop or
other related covenants.

Restructuring Discover and Capital One agree, in the event that either party fails to obtain the
Efforts requisite vote of its stockholders at its stockholder meeting, to in good faith use its
reasonable best efforts to negotiate a restructuring of the transaction (other than any
material terms, including the amount or kind of merger consideration) and/or resubmit
the transaction to its stockholders for approval. This covenant means that each party is
required to continue to seek stockholder approvals (if not obtained the first time) for
the full term of the Merger Agreement.

Termination Fee A cash termination fee of $1.38 billion will be payable by either Discover or Capital
One (the “first party”) to the other party in the following situations:
x Entry into an alternative transaction after a termination that followed a competing
proposal. If (1) the first party receives (or there is publicly announced and not
withdrawn at least 2 business days before the first party’s stockholders meeting) a
competing business combination proposal, (2) the Merger Agreement is then
terminated (A) because the closing has not occurred by the Outside Date (and the
first party’s stockholders have not approved the Merger Agreement but all other
conditions to the first party’s obligation to close were satisfied or capable of being
satisfied) or (B) because the first party willfully breached its covenants or
representations, and (3) the first party consummates or enters into an agreement
with respect to any competing business combination proposal within 12 months of
the termination of the Merger Agreement, then the termination fee is payable upon
the earlier of entering into the agreement or consummating the competing
proposal; or
x Recommendation change or breach of no-shop. If the Merger Agreement is
terminated by the other party because the first party or its board of directors has (1)
made a Recommendation Change or (2) breached its no-shop or other related
covenants in any material respect, then the termination fee is payable within 2
business days of termination.
The Merger Agreement does not require payment of any “reverse termination fee” for
a failure to obtain a regulatory approval.

Employee Matters For one year following the closing, Capital One will provide to each continuing
Discover employee: (1) base salary or wages that are no less favorable than that
provided to such Discover employee immediately prior to closing, (2) target annual
cash incentive compensation and target long-term incentive compensation
opportunities, that are, in the aggregate, no less favorable than those provided to such
Discover employee immediately prior to the closing, (3) employee benefits that are
substantially comparable in the aggregate to those provided to such Discover employee
immediately prior to the closing, and (4) severance benefits that are no less favorable
than the benefits provided under the Discover severance plans.
Effective as of the closing, Capital One will assume and honor the Discover benefit
and compensation plans in accordance with their terms.
 In connection with the transaction, a retention program, in an amount still being
negotiated, will be established, allocable by Discover subject to certain parameters.
Capital One has offered to enter into a letter agreement with Michael Rhodes that will
provide for his continued employment for one year following the closing as a Special
Advisor to the Chief Executive Officer, with a salary of $1 million and the opportunity
to earn a $4 million retention bonus at the end of the term (or an earlier qualifying
termination). Pursuant to the letter, at closing, Mr. Rhodes would receive the cash
severance payment that he would be entitled to under his existing Discover
employment letter.

Other Agreements The Merger Agreement also contains customary covenants of the parties with respect
to access to information, SEC filings (including the filing of a joint proxy statement for
the meetings of Capital One and Discover stockholders and a registration statement for
the Capital One shares to be issued in connection with the Mergers), Capital One’s
commitment to provide customary D&O insurance and indemnity to Discover directors
and officers, public announcements, stockholder litigation, coordination as to
declaration of dividends, and assumption of Discover’s outstanding indebtedness.

Conduct of Business Until the closing, Discover and Capital One will each be subject to customary
Covenants covenants and restrictions requiring them to conduct their business in the ordinary
course and to refrain from certain specified actions. The restrictions applicable to
specific actions of Capital One are more limited than those applicable to Discover.

Representations and Each of Discover and Capital One will make customary public company
Warranties; No representations and warranties with respect to its and its subsidiaries’ business. As is
Indemnification customary in public company transactions, there is no post-closing survival of
representations and warranties and no post-closing indemnification provision (as there
is no surviving seller entity against which to seek recourse).
 
   
  


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Index to:
Certain Resolutions
Presented to
the Board of Directors of
Capital One Financial Corporation
on February 18, 2024

RESOLUTIONS RELATED TO TOPIC 6: EXECUTIVE SESSION

1. Approval of the Merger Agreement, the Mergers, and the Stock Issuance
2. Approval of Submission to Stockholders
3. Approval of Regulatory Filings
4. Approval of Listing Matters
5. Approval of Employee Matters and Section 16 Exemption
6. Approval of Joint Proxy Statement, Prospectus and Other Securities Law Filings
7. Approval of Agent for Service
8. Approval of Blue Sky Procedures
9. Approval of Ancillary Agreements
10. Approval of Supplemental Indentures
11. Appointment of Agents and Advisors
12. Approval of All Appropriate Actions
 Certain Resolutions
of the
Board of Directors of
Capital One Financial Corporation
February 18, 2024

1. Approval of the Merger Agreement, the Mergers, and the Stock Issuance

WHEREAS, Capital One Financial Corporation, a Delaware corporation (the “Corporation”), proposes to
enter into an Agreement and Plan of Merger (the “Merger Agreement”), by and among the Corporation,
Vega Merger Sub, Inc., a Delaware corporation and a direct, wholly-owned subsidiary of the Corporation
(“Merger Sub”), and Discover Financial Services, a Delaware corporation (“Discover”) (capitalized terms
used in these resolutions and not otherwise defined herein shall have the meaning ascribed thereto in the
Merger Agreement);

WHEREAS, the Merger Agreement provides for, among other things, subject to the conditions and
limitations set forth therein and on the terms thereof, (a) the merger of Merger Sub with and into Discover
(the “Merger”), with Discover continuing as the surviving corporation (the “Surviving Company”), (b)
immediately following the Merger and as part of a single, integrated transaction, the merger of the Surviving
Company with and into the Corporation (the “Second Step Merger”), with the Corporation continuing as
the surviving corporation, (c) the conversion at the effective time of the Merger (the “Effective Time”) of
each outstanding share of common stock, par value $0.01 per share, of Discover (such shares, collectively,
the “Discover Common Stock”) (other than certain specified shares as set forth in the Merger Agreement)
into the right to receive 1.0192 shares (the “Exchange Ratio,” and such shares, collectively, the “Merger
Consideration”) of common stock, par value $0.01 per share, of the Corporation (such shares, collectively,
the “Corporation Common Stock”) and (d) the conversion at the effective time of the Second Step Merger
(the “Second Effective Time”) of each outstanding share of (i) Fixed-to-Floating Rate Non-Cumulative
Perpetual Preferred Stock, Series C, par value $0.01 per share, of Discover (such shares, collectively, the
“Discover Series C Preferred Stock”) and (ii) 6.125% Fixed-Rate Reset Non-Cumulative Perpetual
Preferred Stock, Series D, par value $0.01 per share, of Discover (such shares together with the Discover
Series C Preferred Stock, the “Discover Preferred Stock”) into the right to receive, without interest, a share
of a newly created series of preferred stock of the Corporation, on the terms set forth in the Merger
Agreement (such shares of the newly created series of preferred stock of the Corporation collectively, the
“New Corporation Preferred Stock”);

WHEREAS, the Merger Agreement provides for the treatment of (a) each restricted stock unit award in
respect of Discover Common Stock that is outstanding immediately prior to the Effective Time, (b) each
performance stock unit award in respect of shares of Discover Common Stock that is outstanding
immediately prior to the Effective Time (collectively, the “Discover Equity Awards”), and (c) the Discover
Employee Stock Purchase Plan, in each case as set forth in Section 1.9 of the Merger Agreement
(collectively, the “Discover Equity Award Treatment”);

WHEREAS, the Merger Agreement also contemplates the merger of Discover Bank, a Delaware-chartered
bank and wholly-owned subsidiary of Discover (“Discover Bank”), with and into Capital One, National
Association, a national banking association and wholly owned subsidiary of the Corporation (“CONA”),
with CONA continuing as the surviving entity (the aforementioned merger transaction, the “Bank Merger”
and, together with the Merger and Second Step Merger, the “Mergers”), following the Second Step Merger,
which Bank Merger shall be effectuated pursuant to the terms of an agreement and plan of merger to be

2
entered into by Discover Bank and CONA (the “Bank Merger Agreement”) in substantially the form
attached to the Merger Agreement;

WHEREAS, it is intended that the Merger and the Second Step Merger, taken together, shall qualify as a
“reorganization” within the meaning of Section 368(a) of the Internal Revenue Code of 1986, as amended;

WHEREAS, the Board of Directors of the Corporation (the “Board of Directors”) has received an opinion
from Centerview Partners LLC to the effect that as of the date thereof and based upon and subject to the
matters set forth therein, the Exchange Ratio pursuant to the Merger Agreement is fair from a financial
point of view to the Corporation;

WHEREAS, at this meeting and prior meetings, the Board of Directors has reviewed and discussed with
the Corporation’s and CONA’s management and with their financial and legal advisors the terms of the
Merger Agreement, the terms of the Bank Merger Agreement and the transactions contemplated thereby,
including, without limitation, the Mergers, the issuance of shares of Corporation Common Stock (including,
without limitation, authorized and unissued shares or treasury shares of Corporation Common Stock) (the
“Common Stock Issuance”) and New Corporation Preferred Stock in the Mergers on the terms and
conditions set forth in the Merger Agreement and the authorization, creation and designation of such New
Corporation Preferred Stock (including depositary shares in respect thereof) (collectively, together with the
Common Stock Issuance, the “Stock Issuance”) and the assumption by the Corporation or CONA or their
respective subsidiaries, as applicable, of the outstanding debt, guarantees and other agreements of Discover,
Discover Bank or its subsidiaries to the extent required by the terms of such debt, guarantees and other
agreements (the “Debt Assumption”), and considering such terms and such other factors as the Board of
Directors considers pertinent, the Board of Directors has determined that the Merger Agreement, the
Mergers and the other transactions contemplated thereby are advisable and in the best interests of the
Corporation and its stockholders; and

WHEREAS, at this meeting and prior meetings, the Board of Directors has reviewed and discussed with
the Corporation’s management and with the Corporation’s advisors the compensation and benefits matters
set forth in (or related to) the Merger Agreement, including, without limitation, the Discover Equity Award
Treatment.

NOW, THEREFORE, BE IT:

RESOLVED, that based upon the presentations made to and discussions held by the Board of Directors at
this meeting and documents provided, the Board of Directors (a) determines that the Merger Agreement
and the transactions contemplated thereby (including, without limitation, the Mergers, the Stock Issuance,
the Debt Assumption and the Discover Equity Award Treatment) are advisable and fair to and in the best
interests of the Corporation and its stockholders and declares it advisable to enter into the Merger
Agreement, and (b) adopts and approves the Merger Agreement and the other transactions contemplated
thereby (including, without limitation, the Mergers, the Stock Issuance, the Debt Assumption and the
Discover Equity Award Treatment) with the foregoing approval to be deemed to constitute, without
limitation, the requisite approval of the Board of Directors for purposes of the applicable provisions of the
Restated Certificate of Incorporation of the Corporation (the “Charter”), the Amended and Restated Bylaws
of the Corporation (the “Bylaws”) and the Delaware General Corporation Law (the “DGCL”);

FURTHER RESOLVED, that the President and Chief Executive Officer, Chief Financial Officer and
General Counsel and Corporate Secretary of the Corporation (the “Authorized Executives”) be, and each
of them hereby is, authorized and empowered for and on behalf of the Corporation and/or its subsidiaries
(with all such references to subsidiaries to include, without limitation, CONA) to negotiate, execute, deliver
and cause to be performed the Merger Agreement in substantially the form presented to the Board of

3
Directors at this meeting, with such changes as such Authorized Executive executing the same may approve,
the execution and delivery of the Merger Agreement by any such Authorized Executive to be deemed
conclusive evidence that each of the Board of Directors and the Corporation has adopted and approved such
agreement as executed;

FURTHER RESOLVED, that the Authorized Executives, or any of them acting alone, be, and each of them
hereby is, authorized to sign, execute and deliver, for and on behalf of the Corporation, consents evidencing
the approval of the Corporation, as the sole stockholder of CONA, of the Bank Merger and the other
transactions contemplated by the Bank Merger Agreement, and the approval of the Corporation, as the sole
stockholder of the Merger Sub, of the Merger and the other transactions contemplated by the Merger
Agreement, in each case, the execution and delivery of such consent by such Authorized Executive to be
deemed conclusive evidence that each of the Board of Directors and the Corporation has authorized such
action;

FURTHER RESOLVED, that the Proper Officers (as defined below), or any of them acting alone, be, and
each of them hereby is, authorized to file, execute, attest, verify, acknowledge and deliver, for and on behalf
of the Corporation, any and all articles, notices, certificates, agreements, amendments, instruments and
other documents and to perform and do or cause to be performed or done any and all such acts or things
and to pay or cause to be paid all necessary consideration, fees and expenses, in each case in the name and
on behalf of the Corporation, as they or any of them may deem necessary or advisable to effectuate or carry
out the provisions of the Merger Agreement, the Bank Merger Agreement, and the transactions
contemplated thereby (including, without limitation, the Mergers, the Stock Issuance, the Debt Assumption,
the Discover Equity Award Treatment, and including a customary depositary agreement related to
depositary shares to be issued in connection with the New Corporation Preferred Stock and the Stock
Issuance) or the intent and purposes of these resolutions in connection with such agreements or the
transactions contemplated thereby, the taking of any such action to be deemed conclusive evidence that
each of the Board of Directors and the Corporation has authorized such action;

FURTHER RESOLVED, that the Board of Directors hereby classifies (i) 5,700 shares of New Corporation
Preferred Stock as a new series of fixed-to-floating rate non-cumulative perpetual preferred stock, par value
$0.01 per share, of the Corporation, and (ii) 5,000 shares of New Corporation Preferred Stock as a new
series of 6.125% fixed-rate reset non-cumulative perpetual preferred stock, par value $0.01 per share, of
the Corporation, and in connection therewith, hereby constitutes a committee of the Board of Directors
consisting of the Chairman and Chief Executive Officer of the Corporation, and that such committee be,
and hereby is, authorized and directed, subject to the terms of the Merger Agreement, to determine the
preferences, designations, rights and other terms of such New Corporation Preferred Stock and to take any
other actions in connection therewith that such committee considers necessary or advisable in connection
with the issuance of such New Corporation Preferred Stock, the determination of any such terms and the
taking of any such action to be deemed conclusive evidence that each of the Board of Directors and the
Corporation has approved such terms and authorized such action, with the issuance of such New
Corporation Preferred Stock to be subject to the occurrence of the Second Effective Time;

FURTHER RESOLVED, that each of the Proper Officers shall take any and all actions necessary to reserve
for issuance, or cause to be reserved for issuance, such number of shares of Corporation Common Stock
and of New Corporation Preferred Stock as is necessary to effectuate the Stock Issuance (including any
shares of Corporation Common Stock issuable in respect of Discover Equity Awards in accordance with
the Discover Equity Award Treatment), which shares, when issued and delivered in accordance with the
Merger Agreement, shall be duly authorized and issued, fully paid and nonassessable and free of any
stockholder preemptive or similar rights;

4
FURTHER RESOLVED, that the Board of Directors hereby approves and adopts the Merger Agreement
and the transactions contemplated thereby, including the Mergers, for the express purpose of exempting the
execution, delivery and performance of the Merger Agreement and the transactions contemplated thereby,
including the Mergers, from the operation of Section 203 of the DGCL and any other applicable
“moratorium,” “control share acquisition,” “fair price,” “supermajority,” “affiliate transactions” or
“business combination statute or regulation” or other similar state anti-takeover laws or regulations, or any
similar provisions of the Charter and the Bylaws, and hereby takes all action necessary to exempt such
agreement and transactions therefrom;

2. Approval of Submission to Stockholders

FURTHER RESOLVED, that the Board of Directors directs that the Common Stock Issuance be submitted
to a vote of the holders of shares of Corporation Common Stock entitled to vote thereon at a meeting of
such stockholders (the “Meeting”) along with the Board of Directors’ recommendation that such
stockholders approve the Common Stock Issuance and any related proposals described in the Joint Proxy
Statement (as defined below) and that the Proper Officers, or any of them acting alone, be, and each of them
hereby is, authorized and directed, in the name and on behalf of the Corporation, to communicate such
recommendation to, and to solicit proxies on behalf of the Board of Directors from, such stockholders
entitled to vote at the Meeting in favor of such approvals;

FURTHER RESOLVED, that in connection with the Meeting, the Board of Directors hereby constitutes a
committee of the Board of Directors (the “Meeting Committee”) consisting of the Chairman and Chief
Executive Officer of the Corporation, and that such Meeting Committee be, and hereby is, authorized and
directed, subject to the terms of the Merger Agreement, to fix hereafter the date, time and place (if any) of
the Meeting and the record date for determining the stockholders entitled to notice of and to vote at the
Meeting (the “Record Date”), to appoint proxies as appropriate and to select the inspector of election for
the Meeting, and to take any other actions in connection therewith that such Meeting Committee considers
desirable or appropriate, in its discretion, the taking of any such action to be deemed conclusive evidence
that each of the Board of Directors and the Corporation has authorized such action;

FURTHER RESOLVED, that the Proper Officers, or any of them acting alone, be, and each of them hereby
is, authorized and directed, in the name and on behalf of the Corporation, to mail to the stockholders of
record as of the close of business on the Record Date a notice of the Meeting, accompanied by the Joint
Proxy Statement and a form of proxy card, and any subsequent soliciting materials as may be necessary or
advisable;

3. Approval of Regulatory Filings

FURTHER RESOLVED, that the Proper Officers be, and each of them hereby is, authorized and directed,
on behalf of and in the name of the Corporation and/or its subsidiaries, to prepare, sign and file, or cause to
be filed, with any applicable federal, state, local or foreign country regulatory or supervisory body,
including, without limitation, the Federal Reserve Board, the Office of the Comptroller of the Currency,
the Office of the State Bank Commissioner of the State of Delaware, the Federal Deposit Insurance
Corporation, the Securities and Exchange Commission (the “Commission”), the Department of Justice and
all appropriate state, local, federal or foreign banking, financial, trade, insurance, consumer lending,
securities or other regulatory authorities and appropriate stock exchanges, stock markets and self-regulatory

5
organizations, including, without limitation, The New York Stock Exchange (the “NYSE”), as applicable,
all applications, filings, requests for approval, consents, interpretations, or other determinations, notices
and other information and documents, and any modifications or supplements thereto, as may be necessary
or appropriate in connection with the Merger Agreement, the Bank Merger Agreement, any ancillary
agreement and the transactions contemplated thereby (including, without limitation, the Mergers, the Stock
Issuance, the Debt Assumption and the Discover Equity Award Treatment), together with all agreements
and other information and documents required or appropriate, and any publications required, in connection
therewith, the taking of any such action to be deemed conclusive evidence that each of the Board of
Directors and the Corporation has authorized such action;

FURTHER RESOLVED, that, without limiting the foregoing, the Proper Officers be, and each of them
hereby is, authorized and directed, in the name and on behalf of the Corporation and/or its subsidiaries, to
prepare all documentation, to effect all filings and to obtain all permits, consents, approvals and
authorizations of all third parties, regulatory and self-regulatory authorities and other governmental
authorities necessary to consummate the transactions contemplated by the Merger Agreement, the Bank
Merger Agreement and any ancillary agreement (including, without limitation, the Mergers, the Stock
Issuance, the Debt Assumption and the Discover Equity Award Treatment), to execute personally or by
attorney-in-fact any such required filings or amendments or supplements to any of the foregoing, and to
cause any such required filings and any amendments thereto to become effective or otherwise approved,
the taking of any such action to be deemed conclusive evidence that each of the Board of Directors and the
Corporation has authorized such action;

4. Approval of Listing Matters

FURTHER RESOLVED, that the Proper Officers of the Corporation be, and each of them hereby is,
authorized and directed, in the name and on behalf of the Corporation, to prepare, execute, and cause to be
filed with the NYSE any and all applications, agreements, forms or other papers as may be necessary or
advisable with respect to the listing on the NYSE of the shares of Corporation Common Stock and, as
applicable, New Corporation Preferred Stock (or depositary shares in respect thereof) to be issued in
connection with the Mergers and the delisting of the Discover Common Stock and the Discover Preferred
Stock (including depositary shares in respect thereof) from the NYSE, such applications, agreements, forms
or other papers to be in such form as may be approved by the Proper Officer executing the same, the
execution thereof by such Proper Officer to be conclusive evidence that each of the Board of Directors and
the Corporation has authorized such action;

5. Approval of Employee Matters and Section 16 Exemption

FURTHER RESOLVED, that based upon the presentations made to the Board of Directors and upon such
other matters as were deemed relevant by the Board of Directors, the Board of Directors hereby authorizes
and approves the Discover Equity Award Treatment;

FURTHER RESOLVED, that any acquisitions of Corporation Common Stock, New Corporation Preferred
Stock (including depositary shares in respect thereof), Corporation equity awards (including any such
awards issued pursuant to the Discover Equity Award Treatment) or other equity securities (including
derivative securities) of the Corporation in each case pursuant to the transactions contemplated by the
Merger Agreement and by an individual who is a “director” or “officer” of Discover or of Discover Bank
subject to the reporting requirements of Section 16(a) of the Securities Exchange Act of 1934, as amended,
and the rules and regulations thereunder (the “Exchange Act”), and, immediately following the Mergers,

6
will be a “director” or “officer” of the Corporation subject to the reporting requirements of Section 16(a)
of the Exchange Act, are hereby approved for all purposes of Rule 16b-3 of the Commission, it being the
intent of the Board of Directors to exempt such acquisitions or deemed acquisitions from any liability under
Section 16 of the Exchange Act and to adopt any further specific enabling resolutions required by Rule
16b-3;

6. Approval of Joint Proxy Statement, Prospectus and Other Securities Law Filings

FURTHER RESOLVED, that the Proper Officers of the Corporation be, and each of them hereby is,
authorized and directed, in the name and on behalf of the Corporation, to prepare, sign and file, or cause to
be filed, with the Commission any and all statements, reports or other information concerning the Merger
Agreement, the Bank Merger Agreement, any ancillary agreement and the transactions contemplated
thereby (including, without limitation, the Mergers, the Stock Issuance, the Debt Assumption and the
Discover Equity Award Treatment), that may be deemed advisable or may be required under the Exchange
Act or the Securities Act of 1933, as amended, and the rules and regulations thereunder (the “Securities
Act”), including (a) a joint proxy statement/prospectus relating to the meetings of the Corporation’s and
Discover’s stockholders to be held in connection with the Merger Agreement and the transactions
contemplated thereby (including any amendments or supplements thereto, the “Joint Proxy Statement”) and
(b) a registration statement on Form S-4, which shall include such Joint Proxy Statement as a prospectus,
and any amendments, including post-effective amendments or supplements, relating to the shares of
Corporation Common Stock or New Corporation Preferred Stock (or depositary shares in respect thereof)
issuable in connection with the Mergers (the “S-4”), together with any other documents required or
appropriate in connection therewith;

FURTHER RESOLVED, that the Proper Officers of the Corporation be, and each of them hereby is,
authorized and directed in the name and on behalf of the Corporation, to take all such other actions and to
execute all such documents as such officer may deem necessary or appropriate for compliance with the
Securities Act, the Exchange Act or any applicable state securities or similar laws, in connection with the
Merger Agreement, the Bank Merger Agreement, any ancillary agreement and the transactions
contemplated thereby (including, without limitation, the Mergers, the Stock Issuance, the Debt Assumption
and the Discover Equity Award Treatment), the taking of any such action to be deemed conclusive evidence
that each of the Board of Directors and the Corporation has authorized such action;

FURTHER RESOLVED, that the Proper Officers be, and each of them hereby is, authorized and directed
in the name and on behalf of the Corporation, to prepare all documentation and to effect all filings (and
requests for no-action letters) as may be necessary or advisable under the various securities laws,
regulations and rules of the United States or any state or foreign jurisdiction in connection with the Merger
Agreement and the transactions contemplated thereby, to execute personally or by attorney-in-fact such
documentation and filings or amendments or supplements to any of the foregoing, and to cause such
documentation and filings and any amendments and supplements thereto to become effective or otherwise
approved, the taking of any such action to be deemed conclusive evidence that each of the Board of
Directors and the Corporation has authorized such action;

FURTHER RESOLVED, that each officer or director of the Corporation who may be required to sign the
S-4 or any amendment, exhibit or other document related thereto, whether on behalf of the Corporation, as
an officer or director of the Corporation, or in any other capacity, be, and each hereby is, authorized to
execute a power of attorney appointing Richard D. Fairbank and Matthew W. Cooper, and each of them,
severally, and their duly elected or appointed successors in office, as his or her attorney and agent, with full

7
power of substitution and resubstitution, on his or her behalf in any such capacity to sign and file the S-4
and any and all amendments, exhibits and other documents related thereto that any such attorney or
substitute may deem necessary or advisable to be filed with the Commission, with full power and authority
to perform and do any and all acts and things whatsoever that any such attorney or substitute may deem
necessary or advisable to be performed or done in connection with any or all of the matters described in
these resolutions, as fully as such officer or director might or could do if personally present and acting and
as fully as the Corporation might or could do by a properly authorized agent;

7. Approval of Agent for Service

FURTHER RESOLVED, that the Chief Executive Officer or the General Counsel and Corporate Secretary
of the Corporation, or such Proper Officer as either of them may designate be, and hereby is, appointed as
“Agent for Service” of the Corporation to receive notices, orders, communications and other documents
from the Commission in connection with the S-4 and any and all amendments and supplements thereto,
with all the powers incident to such appointment;

8. Approval of Blue Sky Procedures

FURTHER RESOLVED, that the Proper Officers be, and each of them hereby is, authorized in the name
and on behalf of the Corporation to take any and all actions that such Proper Officer may deem necessary
or advisable in order to obtain a permit for, or register or qualify, the Corporation Common Stock or the
New Corporation Preferred Stock (or depositary shares in respect thereof) that may be issued in connection
with the Mergers, for the Stock Issuance or to request an exemption from registration of the Corporation
Common Stock or the New Corporation Preferred Stock (or depositary shares in respect thereof), or to
register or obtain a license for the Corporation as a dealer or broker under the securities laws of such states
of the United States of America and of such foreign jurisdictions as such officers or any of them may deem
advisable, and in connection with such registrations, permits, licenses, qualifications and exemptions, to
execute, acknowledge, verify, deliver, file and publish or cause to be published all such applications,
reports, resolutions, surety bonds, consents to service of process, appointments of attorneys to receive
service of process, powers of attorney and other papers and instruments and to take any and all further
action that they or any of them may deem necessary or advisable in order to maintain such registrations,
permits, licenses, qualifications and exemptions in effect for as long as they may deem to be in the best
interests of the Corporation, the execution by any such officer of any such document or the taking of any
such action to be deemed conclusive evidence that each of the Board of Directors and the Corporation has
authorized such action;

FURTHER RESOLVED, that the Proper Officers be, and each of them hereby is, authorized in the name
and on behalf of the Corporation to execute and file irrevocable written consents on the part of the
Corporation to be used in such states of the United States of America wherein such consents to service of
process may be requisite under the securities laws thereof in connection with said registrations, permits,
licenses, qualifications or exemptions, and to appoint the appropriate state official agent of the Corporation
for the purpose of receiving and accepting process;

9. Approval of Ancillary Agreements

8
FURTHER RESOLVED, that the Proper Officers be, and each of them hereby is, authorized to approve
such ancillary agreements related to the Merger Agreement, the Bank Merger Agreement and the
transactions contemplated thereby (including, without limitation, the Mergers, the Stock Issuance, the Debt
Assumption and the Discover Equity Award Treatment) as are in the judgment of the Proper Officers
necessary or appropriate to effect any of the Mergers, and the Proper Officers are hereby authorized and
directed to execute and deliver any such ancillary agreements in the name and on behalf of the Corporation
and its subsidiaries as any such Proper Officer deems necessary or appropriate to effect any of the Mergers
or the other transactions contemplated by the Merger Agreement, and the Corporation is authorized to pay
any and all expenses and fees arising in connection therewith, the execution and delivery of any such
ancillary agreements by such Proper Officer to be deemed conclusive evidence that the same has been
authorized and approved by each of the Board of Directors and the Corporation;

10. Approval of Supplemental Indentures

FURTHER RESOLVED, that the Proper Officers, or any of them acting alone, be, and each of them hereby
is, authorized, for and on behalf of the Corporation, to execute and deliver such supplemental indentures,
certificates, opinions of counsel, guarantees and other instruments as are determined by such Proper Officer
to be necessary or appropriate for the Debt Assumption, the execution and delivery of any such
supplemental indentures, certificates, opinions of counsel, guarantees and other instruments by such Proper
Officer to be deemed conclusive evidence that the same has been authorized and approved by each of the
Board of Directors and the Corporation;

11. Appointment of Agents and Advisors

FURTHER RESOLVED, that the Proper Officers be, and each of them hereby is, authorized and directed,
in the name and on behalf of the Corporation and/or its subsidiaries, to appoint an exchange agent as
contemplated in the Merger Agreement (the “Exchange Agent”), and to execute and deliver such
agreements, documents, certificates and instruments as may be reasonably requested by the Exchange
Agent in connection with its appointment or in connection with the delivery of the Merger Consideration
or the New Corporation Preferred Stock (or depositary shares in respect thereof), the execution thereof by
any such Proper Officer to be deemed conclusive evidence that each of the Board of Directors and the
Corporation has authorized such action;

FURTHER RESOLVED, that the Proper Officers be, and each of them hereby is, authorized and directed,
in the name and on behalf of the Corporation and/or its subsidiaries, to retain such legal, financial,
accounting and other advisors, proxy solicitors agents with respect to the Merger Agreement, the Bank
Merger Agreement and the transactions contemplated thereby, including the Mergers, the Stock Issuance,
the Debt Assumption and the Discover Equity Award Treatment, as such Proper Officers shall deem
necessary or advisable, and the Corporation and/or its subsidiaries is hereby authorized to execute and
deliver such agreements or other documents with such agents and advisors on such terms as such Proper
Officers may deem necessary or appropriate, and that the Corporation and/or its subsidiaries is hereby
authorized to pay any and all expenses and fees arising in connection therewith, the execution by any such
Proper Officer of any such document or the taking of any such action to be deemed conclusive evidence
that each of the Board of Directors and the Corporation has authorized such action, and without limiting
the foregoing, the retention of Centerview Partners LLC, be, and hereby is, ratified, confirmed and
approved;

9
12. Approval of All Appropriate Actions

FURTHER RESOLVED, that the Proper Officers or any of them acting alone be, and each of them hereby
is, authorized and directed, for and on behalf of the Corporation, to take or cause to be taken any and all
action that they may deem necessary or appropriate to communicate the position of the Board of Directors,
as set forth in these resolutions, to the Corporation’s stockholders, including, without limitation, the
dissemination of such position by means of press releases and letters to stockholders of the Corporation,
the taking of any such action conclusively to evidence the due authorization and approval thereof by the
Board of Directors;

FURTHER RESOLVED, that the Proper Officers be, and each of them hereby is, authorized, in the name
and on behalf of the Corporation and/or its subsidiaries, to prepare, execute, deliver and file, or cause to be
prepared, executed, delivered and filed, such agreements, amendments, certificates, reports, applications,
notices, letters, opinions, documents, instruments or other papers and to do or cause to be done all such acts
and things as the Proper Officers, or each of them, may deem necessary or appropriate to effect fully the
intent and purposes of these resolutions;

FURTHER RESOLVED, that the Authorized Executives be, and each of them hereby is, authorized,
directed and empowered to authorize the execution by the Proper Officers of the Corporation of any and all
agreements, instruments and other documents necessary or desirable to effect the transactions contemplated
by the Merger Agreement or any ancillary agreement, in the name and on behalf of the Corporation and/or
its subsidiaries, as such Proper Officer may deem appropriate to effectuate or carry out the purpose and
intent of the foregoing resolutions and to perform the obligations of the Corporation and/or its subsidiaries
in connection with the foregoing resolutions;

FURTHER RESOLVED, that the signature of any Proper Officer on any document requiring the signature
of a Proper Officer shall conclusively evidence his or her approval of such document;

FURTHER RESOLVED, that any and all actions heretofore or hereafter taken by any of the directors,
officers, representatives or agents of the Corporation or any of its subsidiaries in connection with the Merger
Agreement or the Bank Merger Agreement or otherwise referred to in these resolutions, be, and each of the
same hereby is, ratified, confirmed and approved as the act and deed of the Corporation and/or such
subsidiary, as applicable;

FURTHER RESOLVED, that the “Proper Officers” for purposes of the foregoing resolutions, be, and they
hereby are, as follows: each Authorized Executive; the President, U.S. Card; the Executive Vice President,
Corporate Development; the Treasurer; their respective assistant officers; and any other executives of the
Corporation designated by any Authorized Executive for the purpose of carrying out the foregoing
resolutions;

FURTHER RESOLVED, that the Board of Directors hereby adopts and incorporates by reference any form
of specific resolution to carry into effect the purpose and intent of the foregoing resolutions, or covering
authority included in matters authorized in the foregoing resolutions, including, without limitation, forms
of resolutions in connection therewith that may be required by any authority or third party to be adopted or
filed in connection with any application, consent to service or other reports, documents or filings relating
to these resolutions, if, in the opinion of any Proper Officer, the adoption of such resolution is necessary or
advisable, and the Secretary of the Corporation hereby is directed to insert a copy thereof in the minute
books of the Corporation following any such action and to certify the same as having been duly adopted
thereby; and

10
FURTHER RESOLVED, that any resolutions inconsistent with the foregoing or with any action of any
Proper Officer pursuant to the foregoing are hereby modified or rescinded so as to be consistent herewith
and therewith.

11
 (;+,%,7

Index to:
Certain Resolutions
Presented to
the Board of Directors of
Capital One, National Association
on February 18, 2024

RESOLUTIONS RELATED TO TOPIC 6: EXECUTIVE SESSION

1. Approval of Bank Merger Agreement and the Bank Merger
2. Approval of Regulatory Filings
3. Approval of Ancillary Agreements
4. Approval of Supplemental Indentures
5. Appointment of Agents and Advisors
6. Approval of All Appropriate Actions
 Certain Resolutions
of the
Board of Directors of
Capital One, National Association
February 18, 2024

1. Approval of the Bank Merger Agreement and the Bank Merger

WHEREAS, Capital One Financial Corporation, a Delaware corporation (the “Corporation”) proposes to
enter into an Agreement and Plan of Merger (the “Merger Agreement”), by and among the Corporation,
Vega Merger Sub, Inc., a Delaware corporation and a direct, wholly-owned subsidiary of the Corporation
(“Merger Sub”), and Discover Financial Services, a Delaware corporation (“Discover”) (capitalized terms
used in these resolutions and not otherwise defined herein shall have the meaning ascribed thereto in the
Merger Agreement);

WHEREAS, the Merger Agreement provides for, among other things, subject to the conditions and
limitations set forth therein and on the terms thereof, (a) the merger of Merger Sub with and into Discover
(the “Merger”), with Discover continuing as the surviving corporation (the “Surviving Company”) and (b)
immediately following the Merger and as part of a single, integrated transaction, the merger of the Surviving
Company with and into the Corporation (the “Second Step Merger”), with the Corporation continuing as
the surviving corporation;

WHEREAS, the Merger Agreement also contemplates the merger of Discover Bank , a Delaware-chartered
bank and wholly-owned subsidiary of Discover (“Discover Bank”), with and into Capital One, National
Association, a national banking association and wholly-owned subsidiary of the Corporation (“CONA”)
(the aforementioned merger transaction, the “Bank Merger” and, together with the Merger and Second Step
Merger, the “Mergers”), following the Second Step Merger, which Bank Merger shall be effectuated
pursuant to the terms of an agreement and plan of merger to be entered into by Discover Bank and CONA
(the “Bank Merger Agreement”) in substantially the form attached to the Merger Agreement; and

WHEREAS, at this meeting and prior meetings, the Board of Directors of CONA (the “Board of Directors”)
has reviewed and discussed with the Corporation’s and CONA’s management and with their financial and
legal advisors the terms of the Merger Agreement, the terms of the Bank Merger Agreement and the
transactions contemplated thereby, including, without limitation, the Bank Merger and the assumption by
CONA of Discover Bank’s outstanding debt, guarantees and other agreements to the extent required by the
terms of such debt, guarantees and other agreements (the “Debt Assumption”), and considering such terms
and such other factors as the Board of Directors considers pertinent, the Board of Directors has determined
that the Bank Merger Agreement, the Bank Merger and the other transactions contemplated thereby are
advisable and in the best interests of CONA and its sole stockholder.

NOW, THEREFORE, BE IT:

RESOLVED, that based upon the presentations made to and upon such other matters as were deemed
relevant by the Board of Directors at this meeting and documents provided, the Board of Directors (a)
determines that the Bank Merger Agreement and the transactions contemplated thereby (including, without
limitation, the Bank Merger and the Debt Assumption) are advisable and fair to and in the best interests of
CONA and its sole stockholder and declares it advisable to enter into the Bank Merger Agreement, and (b)
adopts and approves the Bank Merger Agreement and the transactions contemplated thereby (including,

2
without limitation, the Bank Merger and the Debt Assumption) with the foregoing approval to be deemed
to constitute, without limitation, the requisite approval of the Board of Directors for purposes of the
applicable provisions of the Amended and Restated Articles of Association of CONA, the Amended and
Restated Bylaws of CONA, and the laws, regulations, and rules of the United States of America (including,
without limitation, Chapter 2 of Title 12 of the United States Code and the rules and regulations
promulgated thereunder);

FURTHER RESOLVED, that the President and Chief Executive Officer, the Chief Financial Officer, and
the General Counsel and Corporate Secretary of CONA (the “Authorized Executives”) be, and each of them
hereby is, authorized and empowered, for and on behalf of CONA and/or its subsidiaries to negotiate,
execute, deliver and cause to be performed the Bank Merger Agreement in substantially the form presented
to the Board of Directors at this meeting, with such changes as such Authorized Executive executing the
same may approve, the execution and delivery of the Bank Merger Agreement by any such Authorized
Executive to be deemed conclusive evidence that each of the Board of Directors and CONA has adopted
and approved such agreement as executed;

FURTHER RESOLVED, that the Proper Officers (as defined below), or any of them acting alone, be, and
each of them hereby is, authorized to file, execute, attest, verify, acknowledge and deliver, for and on behalf
of CONA, any and all articles, notices, certificates, agreements, amendments, instruments and other
documents and to perform and do or cause to be performed or done any and all such acts or things and to
pay or cause to be paid all necessary consideration, fees and expenses, in each case in the name and on
behalf of CONA, as they or any of them may deem necessary or advisable to effectuate or carry out the
provisions of the Bank Merger Agreement and the transactions contemplated thereby (including, without
limitation, the Bank Merger and the Debt Assumption) or the intent and purposes of these resolutions in
connection with such agreements or the transactions contemplated thereby, the taking of any such action to
be deemed conclusive evidence that each of the Board of Directors and CONA has authorized such action;

FURTHER RESOLVED, that the Board of Directors hereby recommends that the Bank Merger Agreement
be approved by the Corporation in its capacity as the sole stockholder of CONA;

2. Approval of Regulatory Filings

FURTHER RESOLVED, that the Proper Officers be, and each of them hereby is, authorized and directed,
on behalf of and in the name of CONA, to prepare, sign and file, or cause to be filed, with any applicable
federal, state, local or foreign country regulatory or supervisory body, including, without limitation, the
Federal Reserve Board, the Office of the Comptroller of the Currency, the Office of the State Bank
Commissioner of the State of Delaware, the Federal Deposit Insurance Corporation, the Department of
Justice and all appropriate state, local, federal or foreign banking, financial, trade, insurance, consumer
lending, securities or other regulatory authorities and appropriate stock exchanges, stock markets and self-
regulatory organizations, as applicable, all applications, filings, requests for approval, consents,
interpretations, or other determinations, notices and other information and documents, and any
modifications or supplements thereto, as may be necessary or appropriate in connection with the Bank
Merger Agreement, any ancillary agreement and the transactions contemplated thereby (including, without
limitation, the Bank Merger and the Debt Assumption), together with all agreements and other information
and documents required or appropriate, and any publications required, in connection therewith, the taking
of any such action to be deemed conclusive evidence that each of the Board of Directors and CONA has
authorized such action;

3
FURTHER RESOLVED, that, without limiting the foregoing, the Proper Officers be, and each of them
hereby is, authorized and directed, in the name and on behalf of CONA and/or its subsidiaries, to prepare
all documentation, to effect all filings and to obtain all permits, consents, approvals and authorizations of
all third parties, regulatory and self-regulatory authorities and other governmental authorities necessary to
consummate the transactions contemplated by the Bank Merger Agreement and any ancillary agreement
(including, without limitation, the Bank Merger and the Debt Assumption), to execute personally or by
attorney-in-fact any such required filings or amendments or supplements to any of the foregoing, and to
cause any such required filings and any amendments thereto to become effective or otherwise approved,
the taking of any such action to be deemed conclusive evidence that each of the Board of Directors and
CONA has authorized such action;

3. Approval of Ancillary Agreements

FURTHER RESOLVED, that the Proper Officers be, and each of them hereby is, authorized to approve
such ancillary agreements related to the Bank Merger Agreement and the transactions contemplated thereby
(including, without limitation, the Bank Merger and the Debt Assumption) as are in the judgment of the
Proper Officers necessary or appropriate, and the Proper Officers are hereby authorized and directed to
execute and deliver any such ancillary agreements in the name and on behalf of CONA and its subsidiaries
as any such Proper Officer deems necessary or appropriate to effect the Bank Merger, the Debt Assumption
or the other transactions contemplated by the Bank Merger Agreement and CONA is authorized to pay any
and all expenses and fees arising in connection therewith, the execution and delivery of any such ancillary
agreements by such Proper Officer to be deemed conclusive evidence that the same have been authorized
and approved by each of the Board of Directors and CONA;

4. Approval of Supplemental Indentures

FURTHER RESOLVED, that the Proper Officers, or any of them acting alone, be, and each of them hereby
is, authorized, for and on behalf of CONA, to execute and deliver such supplemental indentures, certificates,
opinions of counsel guarantees and other instruments as are determined by such Proper Officer to be
necessary or appropriate for the Debt Assumption, the execution and delivery of any such supplemental
indentures, certificates, opinions of counsel, guarantees and other instruments by such Proper Officer to be
deemed conclusive evidence that the same have been authorized and approved by each of the Board of
Directors and CONA;

5. Appointment of Agents and Advisors

FURTHER RESOLVED, that the Proper Officers be, and each of them hereby is, authorized and directed,
in the name and on behalf of CONA and/or its subsidiaries, to retain such legal, financial, accounting and
other advisors, proxy solicitors and agents with respect to the Bank Merger Agreement and the transactions
contemplated thereby, including the Bank Merger and the Debt Assumption, as such Proper Officers shall
deem necessary or advisable, and CONA and/or its subsidiaries is hereby authorized to execute and deliver
such agreements or other documents with such agents and advisors on such terms as such Proper Officers
may deem necessary or appropriate, and that CONA and/or its subsidiaries is hereby authorized to pay any
and all expenses and fees arising in connection therewith, the execution by any such Proper Officer of any
such document or the taking of any such action to be deemed conclusive evidence that each of the Board
of Directors and CONA has authorized such action;

4
6. Approval of All Appropriate Actions

FURTHER RESOLVED, that the Proper Officers be, and each of them hereby is, authorized, in the name
and on behalf of CONA and/or its subsidiaries, to prepare, execute, deliver and file, or cause to be prepared,
executed, delivered and filed, such agreements, amendments, certificates, reports, applications, notices,
letters, opinions, documents, instruments or other papers and to do or cause to be done all such acts and
things as the Proper Officers, or each of them, may deem necessary or appropriate to effect fully the intent
and purposes of these resolutions;

FURTHER RESOLVED, that the Authorized Executives be, and each of them hereby is, authorized,
directed and empowered to authorize the execution by the Proper Officers of CONA of any and all
agreements, instruments and other documents necessary or desirable to effect the transactions contemplated
by the Bank Merger Agreement or any ancillary agreement, in the name and on behalf of CONA and/or its
subsidiaries, as such Proper Officer may deem appropriate to effectuate or carry out the purpose and intent
of the foregoing resolutions and to perform the obligations of CONA and/or its subsidiaries in connection
with the foregoing resolutions;

FURTHER RESOLVED, that the signature of any Proper Officer on any document requiring the signature
of a Proper Officer shall conclusively evidence his or her approval of such document;

FURTHER RESOLVED, that any and all actions heretofore or hereafter taken by any of the directors,
officers, representatives or agents of CONA or any of its subsidiaries, in connection with the Bank Merger
Agreement or otherwise referred to in these resolutions, be, and each of the same hereby is, ratified,
confirmed and approved as the act and deed of CONA and/or such subsidiary, as applicable;

FURTHER RESOLVED, that the “Proper Officers” for purposes of the foregoing resolutions, be, and they
hereby are, as follows: each Authorized Executive; the President, U.S. Card; the Executive Vice President,
Corporate Development; the Treasurer; their respective assistant officers, if applicable; and any other
executives of CONA designated by any Authorized Executive for the purpose of carrying out the foregoing
resolutions;

FURTHER RESOLVED, that the Board of Directors hereby adopts and incorporates by reference any form
of specific resolution to carry into effect the purpose and intent of the foregoing resolutions, or covering
authority included in matters authorized in the foregoing resolutions, including, without limitation, forms
of resolutions in connection therewith that may be required by any authority or third party to be adopted or
filed in connection with any application, consent to service or other reports, documents or filings relating
to these resolutions, if, in the opinion of any Proper Officer, the adoption of such resolution is necessary or
advisable, and the Secretary of CONA hereby is directed to insert a copy thereof in the minute books of
CONA following any such action and to certify the same as having been duly adopted thereby; and

FURTHER RESOLVED, that any resolutions inconsistent with the foregoing or with any action of any
Proper Officer pursuant to the foregoing are hereby modified or rescinded so as to be consistent herewith
and therewith.

5
 (;+,%,7

EXECUTION VERSION

WRITTEN CONSENT OF THE SOLE STOCKHOLDER OF

CAPITAL ONE, NATIONAL ASSOCIATION
The undersigned, being the sole stockholder (the “Sole Stockholder”) of Capital One, National
Association (“Capital One Bank”), a national banking association and a wholly-owned subsidiary of
Capital One Financial Corporation, a Delaware corporation (“Capital One”), hereby waives any and all
requirements of notice of a meeting of the stockholders of Capital One Bank and any other notices that
may be required by law, Capital One Bank’s Amended and Restated Bylaws (the “Bylaws”) or otherwise,
and hereby consents to and adopts the following resolutions in lieu of holding a meeting of the
stockholders of Capital One Bank pursuant to Section 2.11 of the Bylaws:
WHEREAS, Capital One, Vega Merger Sub, Inc., a Delaware corporation and a direct, wholly-
owned subsidiary of Capital One (“Merger Sub”), and Discover Financial Services, a Delaware
corporation (“Discover”), have entered into an Agreement and Plan of Merger, dated as of February 19,
2024 (as amended or supplemented from time to time, the “Holding Company Agreement”);
WHEREAS, the Holding Company Agreement provides for, among other things, on the terms
and subject to the conditions thereof, (1) the merger of Merger Sub with and into Discover (the “First
Merger”), with Discover continuing as the surviving corporation (the “Surviving Company”) in the First
Merger, (2) immediately following the First Merger and as part of a single, integrated transaction, the
merger of the Surviving Company with and into Capital One (the “Second Step Merger”), with Capital
One continuing as the surviving corporation and (3) following the Second Step Merger, the merger of
Discover Bank, a Delaware-chartered bank and wholly-owned subsidiary of Discover (“Discover Bank”),
with and into Capital One Bank (the “Bank Merger”), with Capital One Bank as the surviving entity in
the Bank Merger, pursuant to an Agreement and Plan of Merger (as amended or supplemented from time
to time, the “Bank Merger Agreement”) between Capital One Bank and Discover Bank, which is attached
hereto as Exhibit A; and
WHEREAS, the Board of Directors of Capital One Bank determined that the Bank Merger
Agreement and the transactions contemplated thereby (including, without limitation, the Bank Merger)
are advisable and fair to and in the best interests of Capital One Bank and its sole stockholder, declared it
advisable to enter into the Bank Merger Agreement, and adopted and approved the transactions
contemplated thereby (including, without limitation, the Bank Merger).
NOW, THEREFORE, BE IT RESOLVED, that the Bank Merger Agreement and the
consummation of the transactions contemplated thereby, including, without limitation, the Bank Merger,
be, and hereby are, approved.

Executed effective as of February 19, 2024

 Exhibit A
Bank Merger Agreement
 (;+,%,7

VEGA MERGER SUB, INC.

WRITTEN CONSENT OF THE SOLE STOCKHOLDER

February 19, 2024

____________________

The undersigned, Capital One Financial Corporation, a Delaware corporation (“Parent”),

being the stockholder of record of all of the issued and outstanding shares of common stock, par
value $0.01 per share, of Vega Merger Sub, Inc., a Delaware corporation (“Merger Sub”), does
hereby consent to, approve and adopt, as of the date first written above, the following
resolutions, in accordance with Section 228(a) of the General Corporation Law of the State of
Delaware and Article II, Section 6 of the Bylaws of Merger Sub:

WHEREAS, the Board of Directors of Merger Sub has declared it advisable and in the
best interests of Merger Sub and its sole stockholder that (a) Merger Sub merge with and into
Discover Financial Services, a Delaware corporation (“Discover,” and such Merger, the
“Merger”) with Discover continuing as the surviving corporation (thereinafter, the “Surviving
Company”) in the Merger and (b) immediately following the Merger and as part of a single,
integrated transaction, Parent will cause the Surviving Company to be merged with and into
Parent (the “Second Step Merger”, and together with the Merger, the “Mergers”), with Parent
continuing as the surviving corporation in the Second Step Merger, upon the terms and subject to
the conditions set forth in the Agreement and Plan of Merger by and among Parent, Merger Sub,
and Discover, a form of which is attached hereto as Exhibit A (the “Merger Agreement”);

WHEREAS, the Board of Directors of Merger Sub has approved, adopted, and declared
advisable the Merger Agreement and the transactions contemplated thereby (including, without
limitation, the Mergers), with such amendments and modifications as the officers of Merger Sub
may approve from time to time; and

WHEREAS, the Board of Directors of Merger Sub has recommended to its sole
stockholder the approval and adoption of the Merger Agreement and the transactions
contemplated thereby (including, without limitation, the Mergers), with such amendments and
modifications as the officers of Merger Sub may approve from time to time.

NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS:

RESOLVED, that Parent, in its capacity as the sole stockholder of Merger Sub, hereby
approves and adopts the Merger Agreement and the transactions contemplated thereby
(including, without limitation, the Mergers) in all respects, with such amendments and
modifications as the officers of Merger Sub may approve from time to time, and such approval
and adoption shall constitute approval and adoption of the transactions contemplated by the
Merger Agreement for purposes of Section 251 of the DGCL; and

RESOLVED, further, that the resolutions dated as of February 19, 2024 and
unanimously adopted by the Board of Directors of Merger Sub, a true copy of which is attached
hereto as Exhibit B, are hereby approved in all respects.
 [Signature page to follow]

[Signature Page to Written Consent of the Sole Stockholder of Vega Merger Sub, Inc.]
 EXHIBIT A

Form of Merger Agreement

A-1
 Exhibit A

Form of Bank Merger Agreement

 EXHIBIT B

Resolutions of Vega Merger Sub, Inc.

B-1
 (;+,%,7

VEGA MERGER SUB, INC.

UNANIMOUS WRITTEN CONSENT
OF THE SOLE DIRECTOR

February 19, 2024

____________________

The undersigned, being the sole director of Vega Merger Sub, Inc., a Delaware
corporation (the “Corporation”), acting by written consent and in accordance with the provisions
of Section 141(f) of the General Corporation Law of the State of Delaware and Article III,
Section 9 of the Bylaws of the Corporation, does hereby adopt the following resolutions:

WHEREAS, as a result of the acceptance of the subscription of Capital One Financial

Corporation, a Delaware corporation (“Parent”), Parent directly owns all of the outstanding
shares of stock of the Corporation;

WHEREAS, the Board of Directors of the Corporation (the “Board of Directors”) has
determined that it is advisable and in the best interests of the Corporation and Parent, the sole
stockholder of the Corporation (the “Sole Stockholder”), that (a) Merger Sub merge with and
into Discover Financial Services, a Delaware corporation (“Discover,” and such Merger, the
“Merger”) with Discover continuing as the surviving corporation (thereinafter, the “Surviving
Company”) in the Merger and (b) immediately following the Merger and as part of a single,
integrated transaction, Parent will cause the Surviving Company to be merged with and into
Parent (the “Second Step Merger”, and together with the Merger, the “Mergers”), with Parent
continuing as the surviving corporation in the Second Step Merger, upon the terms and subject to
the conditions set forth in the Agreement and Plan of Merger by and among Parent, the
Corporation, and Discover, substantially in the form attached hereto as Exhibit A (the “Merger
Agreement”); and

WHEREAS, the Board of Directors has reviewed and considered the terms of the
Merger Agreement and the transactions contemplated thereby and finds that the Mergers and the
other transactions contemplated thereby are advisable and are fair to and in the best interests of
the Corporation and the Sole Stockholder.

NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS:

Approval of the Mergers

RESOLVED, that the Board of Directors determines that the terms of the Merger
Agreement and the transactions contemplated thereby (including the Mergers) are fair to and in
the best interests of the Corporation and the Sole Stockholder, and declares it advisable to enter
into the Merger Agreement in the form attached hereto as Exhibit A, with such amendments and
modifications as the officers of the Corporation may approve from time to time;

RESOLVED, further, that the Board of Directors hereby approves, adopts, and declares
advisable the Merger Agreement and the transactions contemplated thereby (including, without
limitation, the Mergers) in all respects;
 RESOLVED, further, that the Board of Directors hereby recommends to the Sole
Stockholder the approval, and adoption of the Merger Agreement and the transactions
contemplated thereby (including, without limitation, the Mergers), and directs that the approval
and adoption of the Merger Agreement be submitted to the Sole Stockholder;

RESOLVED, further, that the officers of the Corporation be, and each hereby is,
authorized to execute the Merger Agreement, with such changes thereto or amendments thereof
as the officer or officers executing the same shall approve, the execution and delivery thereof to
be deemed conclusive evidence of such approval, submit the Merger Agreement to the Sole
Stockholder for its approval and adoption, and, subject to the requisite approval and adoption of
the Merger Agreement by the Sole Stockholder, to take any and all other actions they may deem
necessary or advisable in order to make the Mergers effective, including, but not limited to, filing
a Certificate of Merger in the Office of the Secretary of State of the State of Delaware, and to
complete the transactions contemplated thereby (including, without limitation, the Mergers);

Regulatory Matters

RESOLVED, further, that the officers of the Corporation be, and each hereby is,
authorized, in the name and on behalf of the Corporation, to prepare, sign and file, or cause to be
filed, with any applicable federal, state, local or foreign country executive, legislative, regulatory
or supervisory body, including any stock exchanges, all applications, requests for approval,
consents, interpretations or other notices, determinations and other information and documents,
and any modifications or supplements thereto, as and to the extent required, applicable or
advisable in connection with the Merger Agreement (as may be amended from time to time) and
the transactions contemplated therein, including the Mergers, the taking of any such action to be
deemed conclusive evidence that the Board of Directors and the Corporation have authorized
such action;

RESOLVED, that, without limiting the foregoing, the officers of the Corporation be, and
each of them hereby is, authorized and directed, in the name and on behalf of the Corporation to
prepare all documentation, to effect all filings and to obtain all permits, consents, approvals and
authorizations of all third parties, regulatory and self-regulatory authorities and other
governmental authorities necessary to consummate the transactions contemplated by the Merger
Agreement (including, without limitation, the Mergers), to execute personally or by attorney-in-
fact any such required filings or amendments or supplements to any of the foregoing, and to
cause any such required filings and any amendments thereto to become effective or otherwise
approved, the taking of any such action to be deemed conclusive evidence that each of the Board
of Directors and the Corporation has authorized such action;

Securities Law Filings

RESOLVED, further, that the proper officers of the Corporation be, and each of them
hereby is, authorized, in the name and on behalf of the Corporation, to take all such other actions
and to execute all such documents as such proper officer(s) may deem necessary or appropriate
for compliance with the Securities Act of 1933, the Securities Exchange Act of 1934 or any
applicable state securities or similar laws, in each case, as may be amended from time and time
and together with any rules or regulations promulgated thereunder, in connection with the
Merger Agreement (as may be amended from time to time) and transactions contemplated
thereby, including the Mergers, the taking of any such action to be deemed conclusive evidence
that the Board of Directors and the Corporation have authorized such action;

Payment of Fees and Expenses

RESOLVED, further, that the proper officers of the Corporation, or any of them acting
alone be, and each of them hereby is, authorized, to file, execute, affix the Corporation’s seal to,
verify, acknowledge and deliver any and all notices, certificates, amendments, agreements,
instruments and other documents, and to perform and do or cause to be performed or done any
and all such acts or things and to pay or cause to be paid all necessary fees and expenses, in each
case in the name and on behalf of the Corporation, as they or any of them may deem necessary or
advisable to effectuate or carry out the provisions of the Merger Agreement;

Additional Actions

RESOLVED, further, that all actions heretofore taken by any of the directors, officers,
representatives or agents of the Corporation or any of its affiliates in connection with the Merger
Agreement, the Mergers and any other transactions contemplated in the Merger Agreement, or
otherwise referred to in the foregoing resolutions be, and each of the same hereby is, ratified,
confirmed and approved in all respects as the act and deed of the Corporation; and

RESOLVED, further, that any resolutions inconsistent with the foregoing or with any
action of any officer pursuant to the foregoing are hereby modified or rescinded so as to be
consistent herewith and therewith.

[Signature page to follow]

 Exhibit A

Form of Merger Agreement

A-1
 Exhibit A

Form of Bank Merger Agreement

 EXHIBIT B

Resolutions of Vega Merger Sub, Inc.

B-1
 (;+,%,7

RESOLUTIONS OF

THE BOARDS OF DIRECTORS OF

DISCOVER FINANCIAL SERVICES AND DISCOVER BANK

February 19, 2024

WHEREAS, a transaction has been proposed for consideration by the Board of Directors (the
“Board”) of Discover Financial Services, a Delaware corporation (the “Company”), and the Board of
Directors (the “Bank Board”) of Discover Bank, a Delaware-chartered bank and wholly-owned subsidiary of
the Company (the “Bank”), in which (i) Vega Merger Sub, Inc., a Delaware corporation (“Merger Sub”) and
wholly-owned subsidiary of Capital One Financial Corporation (“Capital One”), would merge with and into
the Company (the “Merger”), with the Company surviving the Merger (the “Surviving Entity”),
(ii)immediately following the Merger, the Surviving Entity would merge with and into Capital One, a
Delaware corporation (“Capital One”), with Capital One surviving the Merger (the “Second Step Merger”
and, together with the Merger, the “Mergers”), and (iii) promptly following the Second Step Merger, the Bank
would merge with and into Capital One, National Association, a national banking association and wholly-
owned subsidiary of Capital One (“Capital One Bank”), with Capital One Bank as the surviving bank (the
“Bank Merger” and, together with the Mergers, the “Proposed Mergers”);

WHEREAS, pursuant to the terms of the proposed agreement and plan of merger, substantially in
the form set forth as Exhibit A hereto (the “Merger Agreement”), by and among the Company, Capital One
and Merger Sub, the Mergers, taken together, shall qualify as a “reorganization” within the meaning of
Section 368(a) of the Internal Revenue Code of 1986, as amended;

WHEREAS, pursuant to the terms of the proposed agreement and plan of merger, substantially in
the form set forth as Exhibit B hereto (the “Bank Merger Agreement”), by and between the Bank and Capital
One Bank, promptly following the Mergers, the Bank and Capital One Bank will effect the Bank Merger;

WHEREAS, at the effective time of the Merger (the “Effective Time”), each issued and outstanding
share of common stock, par value $0.01 per share, of the Company (“Company Common Stock”), except
for shares of Company Common Stock owned by the Company or Capital One (in each case other than
shares of Company Common Stock (i) held in trust accounts, managed accounts, mutual funds and the
like, or otherwise held in a fiduciary or agency capacity that are beneficially owned by third parties or (ii)
held, directly or indirectly, by the Company or Capital One in respect of debts previously contracted) (sub-
clauses (i) and (ii) being “Excluded Shares”), shall be converted into the right to receive 1.0192 shares (the
“Exchange Ratio”) of common stock, par value $0.01 of Capital One (“Capital One Common Stock”)
(the “Merger Consideration”) in accordance with the terms and subject to the conditions contemplated by
the Merger Agreement;

WHEREAS, all shares of Company Common Stock that are owned by the Company, Capital One
or Merger Sub (in each case other than Excluded Shares) shall be cancelled and shall cease to exist and
no Capital One Common Stock or other consideration shall be delivered in exchange therefor;

WHEREAS, at the effective time of the Second Step Merger (the “Second Effective Time”), each
share of Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series C, par value $0.01 per
share of the Company (“Company Series C Preferred Stock”) issued and outstanding immediately prior to
the Second Effective Time shall be converted into the right to receive one share of a newly created series
of preferred stock of Capital One having terms that are not materially less favorable to the holders of
Company Series C Preferred Stock immediately prior to the Second Effective Time (the “New Capital One
Series C Preferred Stock”);

WHEREAS, at the Second Effective Time, each share of 6.125% Fixed-Rate Reset Non-
Cumulative Perpetual Preferred Stock, Series D, par value $0.01 per share, of the Company (“Company
Series D Preferred Stock”, and together with the Company Series C Preferred Stock, the “Company
Preferred Stock”) issued and outstanding immediately prior to the Second Effective Time shall be converted
into the right to receive one share of a newly created series of preferred stock of Capital One having terms
that are not materially less favorable to the holders of Company Series D Preferred Stock immediately prior
to the Second Effective Time (the “New Capital One Series D Preferred Stock”, and together with the New
Capital One Series C Preferred Stock, the “New Capital One Preferred Stock”);

WHEREAS, at the Effective Time, each restricted stock unit award in respect of a share of
Company Common Stock that is outstanding immediately prior to the Effective Time (a “Company RSU
Award”) shall, automatically and without any required action on the part of the holder thereof, be converted
into a Capital One restricted stock unit award in respect of that number of shares of Capital One Common
Stock (rounded to the nearest whole share) equal to the product of (i) the total number of shares of
Company Common Stock subject to the Company RSU Award immediately prior to the Effective Time
multiplied by (ii) the Exchange Ratio (as it may be adjusted if necessary pursuant to the last sentence of
Section Error! Reference source not found. of the Merger Agreement), and shall otherwise be subject to
the same terms and conditions as applied to the corresponding Company RSU Award immediately prior to
the Effective Time;

WHEREAS, at the Effective Time, each performance-based restricted share unit award in respect
of shares of Company Common Stock (a “Company PSU Award”) that is outstanding immediately prior to
the Effective Time shall, automatically and without any required action on the part of the holder thereof, be
converted into a Capital One cash-based award in respect of an amount in cash equal to the product of
(i)the total number of shares of Company Common Stock subject to the Company PSU Award immediately
prior to the Effective Time, with the number of shares of Company Common Stock determined based on
(A)the greater of target and actual performance through the last quarter ending simultaneously with or prior
to the Effective Time for the Company PSU Awards for which as of the Effective Time more than one year
of the performance period has elapsed, with such performance level to be determined consistent with past
practice by the compensation committee of the Board (the “Company Compensation Committee”) based
on information available through the last quarter ending simultaneously with or prior to the Effective Time,
and (B) target performance for the Company PSU Awards for which as of the Effective Time one year or
less of the performance period has elapsed, multiplied by (ii) the product of (1) the Exchange Ratio (as it
may be adjusted if necessary pursuant to the last sentence of Section Error! Reference source not found.
of the Merger Agreement), multiplied by (2) the average of the closing sale prices of Capital One Common
Stock for the five full trading days ending on the day preceding the Closing Date, shall be settleable in cash,
and shall otherwise be subject to the same terms and conditions (including service-based vesting terms)
as applied to the corresponding Company PSU Award immediately prior to the Effective Time;

WHEREAS, the Merger Agreement provides that, prior to the Effective Time, the Board will take
action with respect to the Company Employee Stock Purchase Plan (the “Company ESPP”) (i) to provide
that the final exercise date (including for purposes of determining the Purchase Price (as defined in the
Company ESPP)) for the Purchase Period (as defined in the Company ESPP) that would otherwise be in
effect on the Closing will be no later than five (5) Business Days prior to the Effective Time and (ii) to
terminate the Company ESPP as of no later than immediately prior to the Effective Time;

WHEREAS, the Merger Agreement provides that, at or prior to the Effective Time, the Board will
adopt resolutions to approve the treatment of the Company RSU Awards and Company PSU Awards
(collectively, the “Company Equity Awards”)

WHEREAS, the Board wishes to provide for the grant of cash retention awards to employees of
the Company for the purpose of retaining and incentivizing such employees;

WHEREAS, the Board has been presented, in writing and orally, with financial and other
information with respect to the Proposed Mergers, and has reviewed such information, including the
principal terms of the Merger Agreement and management’s recommendation that in its opinion the
Proposed Mergers would be in the best interests of the Company and its stockholders;

WHEREAS, the Company’s financial advisor, PJT Partners LP (the “Financial Advisor”), has made
a separate presentation to the Board concerning the financial implications of the Proposed Mergers,
including its opinion that, as of the date of such opinion and based upon and subject to the factors,
assumptions, limitations and other matters set forth therein, the Exchange Ratio in the Merger is fair to
holders of Company Common Stock from a financial point of view;

WHEREAS, the Company’s outside counsel, Sullivan & Cromwell LLP (the “Outside Counsel”),
has discussed the fiduciary duties of the Board generally as well as with respect to mergers and acquisitions
specifically and has discussed with the Board the material provisions of the Merger Agreement;

WHEREAS, after due consideration and discussion of, among other things, the advice of the
Financial Advisor, the advice of Outside Counsel, the presentations and other information provided by
management of the Company and such other factors as the Board has deemed relevant, the Board has
determined that the Merger Agreement and the transactions contemplated thereby are advisable and in the
best interests of the Company and its stockholders;

WHEREAS, the Bank Board has been presented, in writing and orally, with information with respect
to the Bank Merger, and has reviewed such information, including the principal terms of the Bank Merger
Agreement; and

WHEREAS, after due consideration and discussion of the factors the Bank Board has deemed
relevant, the Bank Board has determined that the Bank Merger Agreement and the transactions
contemplated thereby are advisable and in the best interests of the Bank and its sole shareholder.

Authorization of Merger Agreement and the Proposed Mergers

NOW, THEREFORE, BE IT RESOLVED, that the Board, after full discussion and deliberation and
after review of the terms and conditions of the Proposed Mergers, (a) has determined that the Merger
Agreement and the transactions contemplated thereby are advisable and in the best interests of the
Company and its stockholders and (b) hereby approves and adopts the Merger Agreement, and the
transactions contemplated thereby, with the foregoing approval to be deemed to constitute, without
limitation, the requisite approval of the Board for purposes of the Delaware General Corporate Law (the
“DGCL”);

BE IT FURTHER RESOLVED, that the Merger Agreement and the transactions and other matters
contemplated thereby, each be, and the same hereby are, authorized and approved substantially on the
terms and conditions presented to the Board, including, without limitation, (a) the Proposed Mergers, (b)
the conversion of each issued and outstanding share of Company Common Stock into the right to receive
the Merger Consideration in accordance with the terms and conditions contemplated by the Merger
Agreement, (c) the conversion of each issued and outstanding share of the applicable series of Company
Preferred Stock into the right to receive one share of the applicable series of New Capital One Preferred
Stock and (d) the cancellation of all shares of Company Common Stock that are owned by the Company,
Capital One or Merger Sub (other than Excluded Shares);

BE IT FURTHER RESOLVED, that (a) the Chief Executive Officer and President, the Chief
Financial Officer, and the Chief Legal Officer, General Counsel and Corporate Secretary of the Company
or any designee of any of them (collectively, the “Authorized Officers”), be, and each of them hereby is, in
the name and on behalf of the Company (including on behalf of the Company as the sole shareholder of
the Bank), authorized to execute and deliver the Merger Agreement substantially in the form presented to
the Board, subject to such modifications or amendments (other than any amendment to the Exchange
Ratio, which amendment shall be approved by the Board) thereto as the Authorized Officer executing the
same shall approve as being necessary, advisable or appropriate, such approval to be conclusively
evidenced by such Authorized Officer’s execution thereof, and (b) the Board hereby authorizes the
Authorized Officers, and each of them, or any designee of them, to make such amendments (other than
any amendment to the Exchange Ratio, which amendment shall be approved by the Board) to the Merger
Agreement after its execution as such Authorized Officer shall deem necessary, advisable or appropriate,
such execution to be conclusive evidence of such approval and of the authorization thereof by the Board;

BE IT FURTHER RESOLVED, that the Board hereby authorizes and approves the performance
by the Company of its obligations under the Merger Agreement in all respects, provided that the Proposed
Mergers shall be contingent upon and shall not be consummated until the appropriate regulatory approvals
are received and all applicable regulatory conditions to consummation of the Proposed Mergers are
satisfied or appropriately provided for;

BE IT FURTHER RESOLVED, that, upon satisfaction of the conditions to closing of the Proposed
Mergers stated in the Merger Agreement (except such as may be waived in the discretion of the Authorized
Officers), the Authorized Officers and their designees be, and each of them hereby is, authorized, in the
name and on behalf of the Company, to cause the Proposed Mergers to become effective and to take all
such other action and execute all such documents as any of them may deem necessary, advisable or
appropriate in connection therewith, all without further action by the Board;

BE IT FURTHER RESOLVED, that the Authorized Officers and their designees be, and each of
them hereby is authorized, in the name and on behalf of the Company, to make any of the filings, to obtain
all consents, approvals, authorizations and waivers of, and to give all notices to, any person, and to enter
into any contract, agreement or indenture, and to take such other actions as they deem necessary,
advisable or appropriate, in each case in furtherance of the Proposed Mergers and the other transactions
contemplated by the Merger Agreement; and
 BE IT FURTHER RESOLVED, that the Board intends that the foregoing approval be deemed to
constitute the approval of the Board for purposes of, and hereby exempts to the extent necessary, and
directs and empowers the Authorized Officers to take all necessary actions as required to render
inapplicable to the Merger Agreement and the transactions contemplated thereby, the provisions of any
potentially applicable takeover laws of any state, including any “moratorium,” “control share,” “fair price,”
“takeover” or “interested shareholder” law or any similar provisions of the Restated Certificate of
Incorporation of the Company (the “Charter”) or the Amended and Restated Bylaws of the Company.

Treatment of Company Equity Awards and Company ESPP; Cash Retention Awards

BE IT FURTHER RESOLVED, that the treatment of the Company Equity Awards and the Company
ESPP in connection with the Proposed Mergers, as set forth in the Merger Agreement, is hereby authorized
and approved and the Company Compensation Committee is hereby directed to, prior to the Effective Time,
take any actions or pass any such resolutions that it deems appropriate to provide for such treatment.

BE IT FURTHER RESOLVED, that, the Chief Executive Officer and President may approve cash
retention awards to such employees of the Company, the Bank (and their subsidiaries) as the Chief
Executive Officer and President identifies, in such amounts and on such terms and conditions as the Chief
Executive Officer and President deems appropriate; provided, however, that (i) such awards shall not
exceed $125MM in the aggregate, (ii) the amount of any individual award will not exceed one hundred
percent (100%) of the recipient’s annual base salary, (iii) the terms of each award will provide that such
award shall vest and become payable in installments on the following schedule: fifty percent (50%) on the
Closing Date (as defined in the Merger Agreement) and fifty percent (50%) on the date that is six months
after the Closing Date, in each case subject to continued employment through the applicable vesting date,
and (iv) such awards will be granted in accordance with the other terms and conditions set forth in
Section 5.2(f) of the Disclosure Schedule delivered by the Company in connection with the Merger
Agreement.

SEC Filings

BE IT FURTHER RESOLVED, that the Authorized Officers and their designees, with the assistance
of the Company’s accountants and counsel, be, and each of them hereby is, authorized, in the name and
on behalf of the Company, as appropriate, to prepare, execute, and file with the Securities and Exchange
Commission (the “SEC”) a joint proxy statement and prospectus and any other SEC filings necessary,
advisable or appropriate in connection with the Proposed Mergers and the other transactions contemplated
by the Merger Agreement, in each case, including any and all exhibits, amendments and other documents
relating thereto, all in such form as such Authorized Officers and their designees executing the same, on
the advice of counsel, may deem necessary, advisable or appropriate;

BE IT FURTHER RESOLVED, that each officer and director who executes such SEC filings or any
amendments thereto (whether on behalf of the Company or as an officer or director thereof or by attesting
to the seal of the Company or otherwise) be, and each of them hereby is, authorized to execute powers of
attorney appointing the Chief Executive Officer and President, the Chief Financial Officer, and the Chief
Legal Officer, General Counsel and Corporate Secretary and each of them, severally, his or her true and
lawful attorney and agent to execute in his or her name, place and stead (in any such capacity) and on
behalf of the Company, such SEC filings and any and all amendments thereto, and all instruments
necessary, advisable or appropriate or in connection therewith, and to file the same with the SEC, each
such attorney and agent to have the power and authority to do and perform in the name and on behalf of
such officers and directors, or both, as the case may be, and on behalf of the Company every act
whatsoever necessary, advisable or appropriate to be done in the premises as fully and to all intents and
purposes as any such officer or director might or could do in person;

BE IT FURTHER RESOLVED, that the Authorized Officers be, and each of them hereby is,
authorized in the name and on behalf of the Company, to take all such actions and to execute all such
documents as such Authorized Officer may deem necessary or advisable for compliance with the Securities
Exchange Act of 1934, as amended (the “Exchange Act”), or the Securities Act of 1933 (the “Securities
Act”), as amended, and the rules and regulations thereunder or any applicable state securities or similar
laws, in connection with the Merger Agreement and the transactions contemplated thereby, the taking of
any such action to be deemed conclusive evidence that the Board has authorized such action; and

Regulatory Filings

BE IT FURTHER RESOLVED, that the Authorized Officers, the Bank Authorized Officers (as
defined below) and their respective designees be, and each such of them hereby is, authorized (a) to take,
or cause the Company or the Bank, as applicable, or any of their respective direct or indirect subsidiaries
to take, any actions they deem necessary, advisable or appropriate in order to effect all filings, applications
and notices, and to obtain all permits, authorizations, consents, orders, non-objections, interpretations,
determinations and approvals of any applicable federal, state or local regulatory or supervisory body, and
all appropriate federal, state or local securities, banking, financial, insurance, trade or other regulatory
authorities and appropriate stock exchanges, stock markets and self-regulatory organizations, including,
without limitation, the Board of Governors of the Federal Reserve System or the Federal Reserve Bank of
Chicago, the Office of the Comptroller of the Currency, the Financial Industry Regulatory Authority, the
Delaware Office of the State Bank Commissioner, the SEC, the New York Stock Exchange and all other
third parties, and (b) to make all other filings with, and seek all exemptive relief from, such third parties or
authorities as may be necessary, advisable or appropriate to effectuate or carry out the purpose and intent
of these resolutions and to effectuate the Proposed Mergers and the terms and conditions of the Merger
Agreement and the Bank Merger Agreement and the other transactions contemplated thereby, including
making all filings, providing all notices and obtaining all consents, waivers, licenses, registrations, permits,
authorizations, tax rulings, orders and approvals; and

BE IT FURTHER RESOLVED, that, in connection with the various filings, applications, and notices
in connection with the foregoing, to the extent any federal or state governmental or administrative body,
securities exchange or financial institution requires the adoption of form resolutions and authorizations
consistent with the authorizations herein granted, such resolutions are hereby adopted as if fully set forth
herein, and the Chief Legal Officer, General Counsel and Corporate Secretary of the Company or any
Assistant Secretary of the Company or the Bank, as applicable, may so certify if requested.

Delisting Matters

BE IT FURTHER RESOLVED, that the Authorized Officers be, and each of them hereby is,
authorized and directed to take all such other actions and to execute all such documents as any such
Authorized Officer may deem necessary or appropriate to cause the delisting of Company Common Stock
from the New York Stock Exchange in connection with the consummation of the Mergers, and to respond
to all requests for additional information and to meet and confer or to cause counsel to meet and confer
with officials of the New York Stock Exchange in connection with such delisting of the Company Common
Stock from the New York Stock Exchange; and

BE IT FURTHER RESOLVED, that the Authorized Officers be, and each of them hereby is,
authorized and directed to take all such other actions and to execute all such documents as any such
Authorized Officer may deem necessary or appropriate to cause the registration of Company Common
Stock under the Exchange Act to be terminated upon the effectiveness of the Mergers.

Legal Proceedings

BE IT FURTHER RESOLVED, that the Authorized Officers be, and each of them hereby is,
authorized and directed to take any and all steps in connection with initiating or defending legal proceedings
in any court or agency as any such Authorized Officer, after consulting with counsel for the Company, shall
deem necessary or appropriate, in connection with the Merger Agreement including the Mergers and the
other transactions contemplated thereby.

Agreements with Advisors; Expenses

BE IT FURTHER RESOLVED, that the actions of the directors and officers of the Company with
respect to the engagement of the Company’s financial, accounting, legal and other advisors, including the
engagement of any additional advisors, consultants or experts as deemed necessary or appropriate, in
connection with the Merger Agreement, the Merger and the other transactions contemplated by the Merger
Agreement are hereby authorized, approved, ratified and confirmed in all respects;

BE IT FURTHER RESOLVED, that the engagement of the Financial Advisor as the Company’s
financial advisor in connection with the Merger is hereby approved in all respects and the Company hereby
ratifies the execution of the engagement letter between the Company and the Financial Advisor; and

BE IT FURTHER RESOLVED, that the Authorized Officers be, and each of them hereby is,
authorized and directed, in the name and on behalf of the Company, to pay all fees and expenses incurred
by the Company in connection with Merger Agreement, the Merger and the other transactions contemplated
by the Merger Agreement, including all fees and expenses payable to the financial, accounting, legal and
other advisors, consultants or experts engaged by the Company in connection with the Merger Agreement,
the Merger and the other transactions contemplated by the Merger Agreement and all filing fees and printing
expenses that may arise or occur in connection with the Merger Agreement, the Merger and the other
transactions contemplated by the Merger Agreement.

Submission of Merger Agreement; Stockholders’ Meeting

BE IT FURTHER RESOLVED, that an annual meeting or special meeting of the stockholders of

the Company (the “Company Meeting”) shall be called for the purpose of obtaining the approval of the
Merger Agreement and such other matters that are submitted to the stockholders of the Company in
accordance with the Merger Agreement by the Company’s stockholders who are entitled to vote thereon;

BE IT FURTHER RESOLVED, that the Board hereby (a) directs that the approval of the Merger
Agreement and such other matters that are required to be approved by the stockholders of the Company
in accordance with the Merger Agreement or required by applicable law or regulation be submitted to a vote
of the stockholders of the Company entitled to vote thereon at the Company Meeting, (b) recommends the
approval by the stockholders of the Company entitled to vote at the Company Meeting of all such matters
that are submitted for their approval or adoption in accordance with the Merger Agreement (including that
the stockholders of the Company approve any proposal to adjourn the Company Meeting if necessary or
appropriate to permit further solicitation of proxies if there are not sufficient votes at the time of the Company
Meeting to adopt the Merger Agreement or approve the other matters submitted to a vote of the
stockholders at the Company Meeting), and (c) authorizes, directs and empowers the Company, acting
through the Authorized Officers or their designees, to solicit proxies on behalf of the Board from the
stockholders of the Company entitled to vote at the Company Meeting, in favor of such adoption and
approval;

Authorization of Bank Merger Agreement

BE IT FURTHER RESOLVED, that the Bank Board, after full discussion and deliberation and after
review of the terms and conditions of the Bank Merger, (a) has determined that the Bank Merger Agreement
and the transactions contemplated thereby (including the Bank Merger) are advisable and in the best
interests of the Bank and its sole stockholder and (b) hereby approves and adopts the Bank Merger
Agreement, and the transactions contemplated thereby (including the Bank Merger);

BE IT FURTHER RESOLVED, that the Bank Merger Agreement and the transactions and other
matters contemplated thereby, each be, and the same hereby are, authorized and approved substantially
on the terms and conditions presented to the Bank Board, including, without limitation, the Bank Merger, in
accordance with the terms and conditions contemplated by the Bank Merger Agreement;

BE IT FURTHER RESOLVED, that the Bank Board hereby recommends the approval by the
Company, as the sole stockholder of the Bank, of the principal terms of the Bank Merger, the Bank Merger
Agreement and such other matters that are submitted for their approval in accordance with the Bank Merger
Agreement, and that the principal terms of the Bank Merger and the Bank Merger Agreement be submitted
for approval of the sole shareholder of the Bank;

BE IT FURTHER RESOLVED, that (a) the Chief Executive Officer and President, Chief Financial
Officer, and Chief Legal Officer, General Counsel and Corporate Secretary of the Bank, or any designee of
any of them (collectively, the “Bank Authorized Officers”), be, and each of them hereby is, in the name and
on behalf of the Bank, authorized to execute and deliver the Bank Merger Agreement substantially in the
form presented to the Bank Board, subject to such modifications or amendments thereto as the Bank
Authorized Officer executing the same shall approve as being necessary, advisable or appropriate, such
approval to be conclusively evidenced by such Bank Authorized Officer’s execution thereof, and (b) the
Bank Board hereby authorizes the Bank Authorized Officers, and each of them, or any designee of them,
to make such amendments to the Bank Merger Agreement after its execution as such Bank Authorized
Officer shall deem necessary, advisable or appropriate, such execution to be conclusive evidence of such
approval and of the authorization thereof by the Bank Board;

BE IT FURTHER RESOLVED, that the Bank Board hereby authorizes and approves the
performance by the Bank of its obligations under the Bank Merger Agreement in all respects, provided that
the Bank Merger shall be contingent upon and shall not be consummated until the appropriate regulatory
approvals are received and all applicable regulatory conditions to consummation of the Bank Merger are
satisfied or appropriately provided for;

BE IT FURTHER RESOLVED, that, upon satisfaction of the conditions to closing of the Bank
Merger stated in the Bank Merger Agreement (except such as may be waived in their discretion), the Bank
Authorized Officers and their designees be, and each of them hereby is, authorized, in the name and on
behalf of the Bank, to cause the Bank Merger to become effective and to take all such other action and
execute all such documents as any of them may deem necessary, advisable or appropriate in connection
therewith, all without further action by the Bank Board; and

BE IT FURTHER RESOLVED, that the Bank Authorized Officers and their designees be, and are
hereby authorized, in the name and on behalf of the Bank, to make any of the filings, to obtain all consents,
approvals, authorizations and waivers of, and to give all notices to, any person, and to enter into any
contract, agreement or indenture, and to take such other actions as they deem necessary, advisable or
appropriate, in each case in furtherance of the Bank Merger and the other transactions contemplated by
the Bank Merger Agreement.

Other Bank Actions

BE IT FURTHER RESOLVED, that, for the avoidance of doubt, the Bank Board adopts and
approves all the actions in these resolutions applicable to the Bank in support of the Merger Agreement
and the Bank Merger Agreement and the transactions contemplated thereby.

General Authorizations

BE IT FURTHER RESOLVED, that the Authorized Officers, the Bank Authorized Officers and their
respective designees be, and each of them hereby is, authorized to take, or cause to be taken, any and all
action, to pay or cause to be paid any and all charges, fees or expenses and to make, execute and deliver,
or cause to be made, executed and delivered, all agreements, undertakings, documents, instruments or
certificates in the name and on behalf of the Company or the Bank, as applicable, or any of their respective
subsidiaries as each of them may deem necessary, advisable or appropriate to carry out the purpose and
intent of the foregoing resolutions, any agreements relating to divestitures of assets, liabilities or branches
in connection with the consummation of the Proposed Mergers, any agreements, instruments or other
documents entered into in connection with or to effect the assumption of any debt obligations in connection
with the consummation of the Proposed Mergers, including in respect of the filing of one or more certificates,
agreements or articles of merger with the Secretary of State of the State of Delaware in such form as the
executing officer may approve, and to perform, or cause to be performed, the obligations of the Company
or the Bank, as applicable, or any of their respective subsidiaries under any such agreement, undertaking,
document, instrument or certificate referred to herein, and that the execution by any such officer of any
such agreement, undertaking, document, instrument or certificate or the doing by any of them of any act in
connection with the foregoing matters shall establish conclusively their authority thereof or from the
Company or the Bank, as applicable, and the approval and ratification by the Company or the Bank, as
applicable, of such agreement, undertaking, document, instrument or certificate and the actions so taken;

BE IT FURTHER RESOLVED, that the omission from these resolutions of any agreement or other
arrangement contemplated by any of the agreements, instruments, documents, government filings and/or
notices described in the foregoing resolutions or any action to be taken in accordance with any requirements
of any of the agreements, instruments, documents, government filings and/or notices described in the
foregoing resolutions shall in no manner derogate from the authority of the Authorized Officers and the
Bank Authorized Officers to take all actions necessary, desirable or appropriate to consummate, effectuate,
carry out or further the transactions contemplated by and the intent and purposes of the foregoing
resolutions;
 BE IT FURTHER RESOLVED, that the necessity, advisability and appropriateness of any action
taken, any approval given or any amendment or change to any document or agreement made by the
Authorized Officers and the Bank Authorized Officers pursuant to the authority granted under these
resolutions shall be conclusively evidenced by the taking of any such action, or the execution, delivery or
filing of any such document or agreement; and

BE IT FURTHER RESOLVED, that any and all actions heretofore taken and any and all things
heretofore done by any of the Authorized Officers, the Bank Authorized Officers or their respective
designees in furtherance of and consistent with the matters authorized by the foregoing resolutions be, and
they hereby are, ratified, approved and confirmed as authorized and valid acts taken on behalf of the
Company or the Bank, as applicable.
 (;+,%,7

ACTION BY WRITTEN CONSENT OF

THE SOLE STOCKHOLDER

OF

DISCOVER BANK

February 19, 2024

The undersigned, being the sole stockholder of Discover Bank, a Delaware-chartered bank (the
“Bank”), hereby adopts the following resolutions by written consent, in lieu of a meeting, pursuant to Section
228(a) of the General Corporation Law of the State of Delaware, as amended, and directs that this written
consent be filed with the minutes of the proceedings of the sole stockholder.

APPROVAL OF BANK MERGER AGREEMENT AND BANK MERGER

WHEREAS, Discover Financial Services, a Delaware corporation (the “Stockholder”), Capital One
Financial Corporation, a Delaware corporation, (“Capital One”) and Vega Merger Sub, Inc., a Delaware
corporation (“Merger Sub”) have entered into an Agreement and Plan of Merger, dated as of February 19,
2024, pursuant to which (i) Merger Sub would merge with and into the Stockholder (the “Merger”), with the
Stockholder surviving the Merger (the “Surviving Entity”), (ii) immediately following the Merger, the Surviving
Entity would merge with and into Capital One with Capital One surviving the Merger (the “Second Step
Merger”), and (iii) promptly following the Second Step Merger, the Bank would merge with and into Capital
One, National Association (the “Surviving Bank”), a national banking association and wholly-owned
subsidiary of Capital One, with the Surviving Bank as the surviving bank (the “Bank Merger”);

WHEREAS, the Board of Directors of the Bank has (i) determined that the terms of the Agreement
and Plan of Merger by and between the Bank and the Surviving Bank, a form of which was distributed to
the Stockholder and is attached hereto as Exhibit A (the “Bank Merger Agreement”), and the Bank Merger
and other actions contemplated thereby are advisable and in the best interests of the Bank, (ii) authorized,
adopted, and approved the Bank Merger Agreement, substantially in the form of Exhibit A hereto, and the
Bank Merger, (iii) directed that the Bank Merger Agreement and the Bank Merger be submitted for
consideration by the Stockholder and (iv) recommended that the Stockholder approve the Bank Merger
Agreement and consent to and approve the Bank Merger; and

WHEREAS, the Stockholder has determined to adopt the Bank Merger Agreement and consent to
and approve the Bank Merger.

NOW, THEREFORE, BE IT RESOLVED, that the Bank Merger Agreement, substantially in the
form of Exhibit A hereto, be, and hereby is, adopted and approved, and the Bank Merger is also approved;
and

RESOLVED FURTHER, that any and all actions heretofore or hereafter taken by the officers or
agents of the Bank, on or prior to the date of the adoption of the foregoing resolutions, within the terms of
the foregoing resolutions are hereby consented to, approved, ratified and adopted in all respects as the act
and deed of the Bank.
       
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 (;+,%,7

NoticeofApplicationfortheMergerof

DiscoverBank
into
CapitalOne,NationalAssociation

Notice is given that application has been made to the OfficeoftheComptrolleroftheCurrency,
Director for Large Bank Licensing,7TimesSquare,10thFloorMailroom,NewYork,NewYork
10036, on or about March 20, 2024, for consent to merge DiscoverBank,mainofficelocatedat
502E.MarketStreet,Greenwood,DE19950,intoCapitalOne,NationalAssociation(“CONA”),
main office located at 1680 Capital One Drive, Mc/ean, VA 22102 (the“BankMerger”),with
CONAasthesurvivingbank.

Discover Bank is a wholly owned subsidiary of Discover Financial Services (“Discover”),
headquarters located at 2500 Lake Cook Road, Riverwoods, IL 60015. CONA is a wholly
owned subsidiary of Capital One Financial Corporation(“COFC”),headquarterslocatedat1680
Capital One Drive, McLean, VA 22102. PriortotheBankMerger,Discoverwillbemergedinto
COFC, with COFC as the surviving entity. It is contemplated that the main offices and branch
offices of CONA and Discover Bank will continue to operate. Specifically, in connection with
the Bank Merger, the main office of Discover Bank willbeestablishedandoperatedasabranch
ofCONA.

This notice is published pursuant to 12 USC § 1828(c) and 12 CFR 5. Anyone may submit
written comments on this application by April 20, 2024to:Director forLargeBankLicensing,
Office of the Comptroller of the Currency, 7 Times Square, 10th Floor Mailroom,
New York, NY 10036 or by emailing
[email protected].

The public may find information on this application, including the date of the end of the
comment period, in the OCC WeeklyBulletinavailableatwww.occ.gov. Requestsforacopyof
the public file on the application should be made to the Director for Large Bank Licensing,
Office oftheComptrolleroftheCurrency,7TimesSquare,10thFloorMailroom,NewYork,NY
10036orbyemailing[email protected].

March21,2024

TargetBank: DiscoverBank,Greenwood,DE
AcquiringBank: CapitalOne,NationalAssociation,McLean,VA
 (;+,%,7

Pro Forma and Projected Financials, Capital Ratios and Asset Quality of COFC and CONA

Exhibit
Page

Capital One Financial Corporation – Pro Forma and Projected Balance Sheet (Consolidated) 2

Capital One, National Association – Pro Forma and Projected Balance Sheet 3

Capital One Financial Corporation – Pro Forma and Projected Balance Sheet (Parent Only) 4

Capital One Financial Corporation – Pro Forma and Projected Income Statements 5
(Consolidated)

Capital One, National Association – Pro Forma and Projected Income Statements 6

Capital One Financial Corporation – Regulatory Capital and RWAs 7-8

Capital One, National Association – Regulatory Capital and RWAs 9-10

/LTXLGLW\&RYHUDJH5DWLRDQGAdditional Financial Information 11-1

 Capital One Financial Corporation
Liquidity Coverage Ratio

December 29, 2023

(Pro Forma) (1)
Capital One Financial
Corporation
(Dollar amounts in millions) (Consolidated)
LCR 161%
HQLA ($M) 65,231
Adjusted Net Cash Outflows ($M) (85% outflow rate) 40,607

Capital One, National Association

Liquidity Coverage Ratio

December 29, 2023

(Pro Forma) (1)

Capital One, N.A.

(Dollar amounts in millions) (Consolidated)
LCR 189%
HQLA ($M) 123,267
Adjusted Net Cash Outflows ($M) (85% outflow rate) 65,231

Footnotes:
(1) Balances for Capital One and Discover are from internally reported LCR data as of December 29, 2023 The last business day of 2023 was December 29, 2023

1 LCR
Discover and Discover Bank Goodwill & Intangibles

1
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Name Address Principal Occupation

Rob Alexander 1680 Capital One Drive Chief Information Officer, Capital One
McLean, VA 22102

Neal Blinde 1680 Capital One Drive President, Commercial Banking, Capital One
McLean, VA 22102

Jory Berson 1680 Capital One Drive Senior Advisor to the CEO, Capital One
McLean, VA 22102

Kevin Borgmann 1680 Capital One Drive Senior Advisor to the CEO, Capital One
McLean, VA 22102

Steve Crawford 1680 Capital One Drive Senior Advisor to the CEO, Capital One
McLean, VA 22102

Matthew Cooper 1680 Capital One Drive General Counsel and Corporate Secretary, Capital One
McLean, VA 22102
Lia Dean 1680 Capital One Drive President, Banking and Premium Products, Capital One
McLean, VA 22102

Kaitlin Haggerty 1680 Capital One Drive Chief Human Resources Officer, Capital One
McLean, VA 22102

Trip Hall 1680 Capital One Drive Senior Advisor to the CEO, Capital One
McLean, VA 22102

Celia Edwards Karam 1680 Capital One Drive President, Retail Bank, Capital One
McLean, VA 22102

Frank LaPrade 1680 Capital One Drive Chief Enterprise Services Officer and Chief of Staff to the CEO,
McLean, VA 22102 Capital One
Name Address Principal Occupation

Daniel Mouadeb 1680 Capital One Drive President, U.S. Card, Capital One
McLean, VA 22102

Steve Otero 1680 Capital One Drive Chief Audit Officer, Capital One
McLean, VA 22102

Ravi Raghu 1680 Capital One Drive President, Capital One Software, International, and Small
McLean, VA 22102 Business Products, Capital One

Kara West 1680 Capital One Drive Chief Enterprise Risk Officer, Capital One
McLean, VA 22102

Sanjiv Yajnik 1680 Capital One Drive President, Financial Services, Capital One
McLean, VA 22102

Andrew Young 1680 Capital One Drive Chief Financial Officer, Capital One
McLean, VA 22102

Michael Zamsky 1680 Capital One Drive Chief Credit and Financial Risk Officer, Capital One
McLean, VA 22102
 (;+,%,7

Additional Information regarding Board of Directors Training

All new directors participate in Capital One’s Director Orientation Program, during which they
have a series of meetings over time with management representatives from all business and staff
areas, including the Chief Risk Officers and Chief Auditor, as well as Board Committee Chairs,
the Lead Independent Director, and the CEO and Chairman of the Board to review and discuss
information about the Company, the business, the boardroom, and director roles and
responsibilities. The Director Orientation Program includes written materials, one-on-one
meetings, and presentations to familiarize new directors on a variety of topics, including the
Company’s legal structure, mission, values, culture, strategic plans, customer and community
impacts, accounting policies, financial reporting, risk management, lines of business, code of
conduct, key regulatory issues, competition and industry dynamics, and Board Committee
structure and responsibilities.

Capital One has also established a Continuing Education Program for the Board of Directors.
The objective of the Continuing Education Program is to assist Directors in keeping current on
industry, corporate and other developments relevant to their work as directors by:

● Providing updates on director education programs offered by applicable regulators,

professional organizations and academic institutions;
● Providing internal director education programs, including optional site visits;
● Providing various board publications to Board members; and
● Peer-to-peer networks.

Directors attend education sessions internally through the Company or externally through other
sources, including conferences arranged by our prudential regulators.
 (;+,%,7

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(1) both a post-merger HHI of over 1,800 and an HHI increase of more than 200 points; or (2) a
post-merger share of 35% are unlikely to warrant further review.4

As described in greater detail below, concentration and share levels for the Proposed
Transaction fall within these safe harbor thresholds in all markets in which the parties compete.
These preliminary screens compellingly support a finding that a transaction is unlikely to
substantially lessen competition. Moreover, the highly competitive and dynamic nature of the
markets at issue and relative positions and shares of COFC, Discover, and the combined firm
demonstrate that the Proposed Transaction will not result in any lessening of competition in any
market. With respect to payments networks, where COFC is not active today, the potential
transaction will deconcentrate the markets at issue and improve competition for these products.

The Parties5

COFC is a financial holding company headquartered in McLean, Virginia that provides

retail and commercial banking products and services through 259 bank branch and 55 café
locations, as well as through digital channels.6 COFC held approximately $478.5 billion in total
assets as of December 31, 2023,7 and had a market capitalization of $51.6 billion as of March 15,
2024.

Discover is a digital banking and payment services company headquartered in

Riverwoods, Illinois. It provides digital banking products and services, including credit cards,
personal loans, home loans, and deposit products. Discover held approximately $151.5 billion in
total assets as of December 31, 2023, and had a market capitalization of $30.1 billion as of
March 15, 2014. Discover owns and operates three payments networks: Discover, PULSE, and
the Diners Club International.8

Competitive Analysis

The Federal Reserve assesses the likely competitive impact of a merger on the cluster of
banking products (various kinds of credit) and services (such as checking and savings accounts)
within local geographic markets defined by the Federal Reserve Banks.9 These local markets

4
See Bank Merger Guidelines, supra note 3; Board of Governors of the Federal Reserve, FAQs (Oct. 9, 2014),
https://www.federalreserve.gov/bankinforeg/competitive-effects-mergers-acquisitions-faqs htm. The DOJ’s and
Federal Trade Commission’s joint 2023 Merger Guidelines (“2023 Merger Guidelines”) presume that transactions
resulting in HHI greater than 1,800 and a change of more than 100 points or a combined share in excess of 30% and
an increase in HHI of more than 100 points may substantially lessen competition or tend to create a monopoly. See
U.S. Department of Justice & Federal Trade Commission, Merger Guidelines § 2.1 (Dec. 18, 2023),
https://www.justice.gov/d9/2023-12/2023%20Merger%20Guidelines.pdf. The proposed transaction does not exceed
the relevant thresholds under either the Bank Merger Guidelines or the 2023 Merger Guidelines.
5
For a more detailed description of the parties activities, see “The Companies” section of the Application.
6
As of June 2024, reflecting previously determined actions unrelated to the proposed transaction.
7
Financials in this Exhibit reflect regulatory reports (Call Reports and FR Y-9Cs) and may not match GAAP-
reported financials (10-Ks and 10-Qs) cited elsewhere in the Application.
8
The Diners Club International is not discussed here, as its activities are outside the United States. All Diners Club
cards issued in the United States are issued on the Mastercard network by BMO Bank, N.A.
9
See United States v. Philadelphia National Bank, 374 U.S. 321, 356 (1963); FAQs, supra note 4, Nos. 9-10.

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reflect “commercial and banking realities and must consist of the local area where the banks
involved offer their services and where local customers can practically turn for alternatives.”10

In reviewing certain applications, the Federal Reserve will also “investigate the
competitive effects in other, more specific product markets” where the products “may be
obtained separately from other commercial banking products or services, and whose geographic
markets may be regional or national in scope.”11 Although credit card issuing is generally
viewed as part of this cluster of banking services, the Federal Reserve also considers credit card
issuing as a separate, national market,12 which we separately evaluate below. Finally, in view of
prior federal court and DOJ precedent, we also discuss the Proposed Transaction’s
procompetitive effects with respect to credit and debit networks.13

I. Banking

A. The Proposed Transaction will not substantially lessen competition in any local
banking market.

There is no overlap in any local banking market. Discover receives deposits nationally
but its sole branch (Greenwood, Delaware) is in the Sussex County, Delaware Banking Market,14
where COFC has no branches. COFC has a single location in Delaware, located in the
Wilmington, Delaware-Maryland Banking Market,15 where Discover has no branches.16
COFC’s Wilmington location receives deposits nationally, is not open to the public, and does not
offer retail banking services. The transaction will thus have no competitive impact in any local
banking market.

10
North Fork Bancorporation, Inc., 81 Fed. Res. Bull. 734, 736 (1995).
11
See FAQs, supra note 4, No. 9.
12
See Bank of America Corp., 92 Fed. Res. Bull. C5, at 9 (Mar. 22, 2005),
https://www.federalreserve.gov/boarddocs/press/orders/2005/20051215/attachment.pdf (“Although the Board
believes that the cluster of services appropriately defines the market for analyzing competitive effects of bank
acquisitions, the Board has also reviewed the competitive effects of this proposal based on an alternative approach
that recognizes that the business of MBNA is focused narrowly on issuing credit cards.”); JPMorgan Chase & Co.,
90 Fed. Res. Bull. 352, at 7 n.14 (June 14, 2004),
https://www.federalreserve.gov/boarddocs/press/orders/2004/20040614/attachment.pdf (“The Board continues to
believe that the appropriate product market for analyzing the competitive effects of bank mergers and acquisitions is
the cluster of products and services offered by banking institutions [including credit cards].” Even if credit cards
were to be treated separately, “the Board concludes that the proposal would not result in significantly adverse
competitive effects on credit card issuance, because that activity is conducted on a national or global scale, with
numerous other large financial organizations providing the service.”).
13
See, e.g., Ohio v. American Express Co., 585 U.S. 529 (2018); Complaint for the United States at 17, United
States v. Visa U.S.A., Inc., 3:20-cv-07810 at 17 (N.D. Ca. Nov. 5, 2020) (national debit payments networks); United
States v. American Express, 88 F. Supp. 3d 143, 170 (E.D.N.Y. 2015) (national credit payments networks),
overruled on other grounds, 838 F.3d 179 (2d Cir. 2016); United States v. Visa U.S.A., Inc., 163 F. Supp. 2d 322,
339-40 (S.D.N.Y. 2001), aff’d, 344 F.3d 229 (2d Cir. 2003) (“The United States is the appropriate geographic scope
for . . . the general purpose card product market”).
14
Defined as Sussex County, Delaware, excluding the city of Milford.
15
Defined as New Castle County, Delaware and Cecil County, Maryland.
16
Discover has an administrative office in Wilmington, Delaware, but that office does not hold or receive deposits.

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 B. The Proposed Transaction will not substantially lessen competition for banking
services at the national level.

In view of Discover’s digital banking business model, the only relevant geographic
market in which to analyze banking competition for the Proposed Transaction is nationwide. In
this context, COFC and Discover are small players, holding 2.14% and 0.64% of total adjusted
U.S. bank and thrift deposits, respectively. The combined firm will hold less than 3% of total
national adjusted deposits, roughly one-third to one-quarter of deposits held by each of the three
largest U.S. banks, JPMC, BOA, and Wells Fargo. It would also trail Citigroup and U.S.
Bancorp (“USB”). Concentration levels in any such national market fall well below the safe
harbor thresholds, as the HHI will increase a de minimis three points from 402 to 405.17

This finding holds even when considering savings and checking accounts separately,
rather than as part of the cluster of banking products and services in which the Federal Reserve
typically evaluates the competitive effects of a proposed transaction. Concentration levels and
the parties’ combined share are well below safe harbor thresholds for each of these products.
The combined COFC and Discover will hold 3.5% of the nation’s savings account deposits
(including money market deposit accounts)—approximately one-fifth the size of each of JPMC
and BOA. HHI levels for savings and money market deposits would increase only four points to
593. The combined COFC and Discover will hold only 1.1% of the nation’s transaction or
checking account deposits and rank 16th—approximately one-twelfth the size of Wells Fargo.
Concentration levels for transaction account deposits would remain virtually unchanged as a
result of the transaction at an HHI of 440.18 The transaction will therefore not diminish
competition in any banking market.

This is particularly true in view of increased competition in the industry by fintech firms
and digital banks. The prevalence of digital banking has increased significantly over the last
decade,19 and a number of digital-only financial institutions have flourished as digital banking
17
This calculation is based on December 31, 2023 adjusted nationwide deposits as calculated for the deposit cap to
be consistent with market shares reported in this Application. The national deposit cap does not include credit
unions. See Annex 1. If calculated based on total domestic deposits reported on call reports consolidated to holding
companies, the HHI would increase only three points to 405. Intercompany deposits would not be netted under this
methodology. See Annex 2. This calculation would not differ meaningfully if calculated based on Summary of
Deposits data, which are only available as of June 30, 2023. Even these low concentration levels exaggerate actual
market conditions because they exclude credit union deposits and deposit substitutes (including money market
funds).
18
HHIs for savings and transaction deposits are calculated from call reports of individual banks and thrifts
consolidated to holding companies as of December 31, 2023. Some companies’ deposits may be overstated for
intercompany deposit eliminations. See Annex 2. Although credit unions aggressively price their checking and
savings accounts to compete with banks, they are not included in these share calculations; were they to be included,
the HHI would be even lower.
19
Forbes reports that 78% of adults in the United States prefer to bank using a mobile application or online. See
Jenn Underwood & Elizabeth Aldrich, U.S. Consumer Banking Statistics 2024, FORBES (Jan. 31, 2024),
https://www forbes.com/advisor/banking/banking-trends-and-statistics/. The American Bankers Association
similarly found that over 70% of bank customers use mobile or online applications as their preferred method of
banking. See Press Release, American Bankers Association, National Survey: Bank Customers Use Mobile Apps
More Than Any Other Channel to Manage Their Accounts (Oct. 26, 2023), https://www.aba.com/about-us/press-
room/press-releases/consumer-survey-banking-methods-2023. See also René Bennett, Digital banking trends in
2024, BANKRATE (Jan. 12, 2024), https://www.bankrate.com/banking/digital-banking-trends-and-statistics/ (“Use of
mobile banking as the primary method of account access . . . increased from 15.1 percent of consumers in 2017 to 48

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adoption has improved. These include, in addition to Discover, Chime Financial, SoFi
Technologies, Ally Financial, Everbank Financial, Synchrony Financial, and Varo Money. As a
result, consumers now have innumerable banking products and services at their fingertips in
addition to those offered by local banks.

Competition for consumers’ deposits has intensified in recent years, as increasing interest
rates demonstrated the industry’s robust and dynamic nature. In March 2022, the Federal
Reserve announced the first federal funds rate increase in over three years. Since March 2022,
the Federal Reserve raised the federal funds rate eleven times; in aggregate, 525 basis points.20
These rate increases corresponded with more than $1 trillion in deposits leaving the nation’s
banks for money market funds, Treasury bonds and other higher-yield products.21

To retain or grow deposits in support of their loan portfolios, most banks responded by
increasing deposit yields.22 Many banks now market high-yield deposit accounts with rates in
excess of 4% annual percentage yield (“APY”), well above prevailing rates prior to the Federal
Reserve rate increases, including Discover (4.25% APY),23 Ally Bank (4.25% APY),24 American
Express (4.35% APY),25 Barclays (4.35% APY),26 Capital One (4.35% APY),27 Marcus by

percent in 2023.”); Andrew P. Meyer, FEDERAL RESERVE BANK OF ST. LOUIS, HOW CYBER DEPOSITS AFFECT
PERCEIVED COMPETITION IN BANKING MARKETS, (May 11, 2020), https://www.stlouisfed.org/publications/regional-
economist/first-quarter-2020/cyber-deposits-perceived-competition-banking (survey reports that 91.5% of
community banks offer mobile banking).
20
See Taylor Tepper, Federal Funds Rate History 1990 to 2023, FORBES ADVISOR (Jan. 26, 2024),
https://www forbes.com/advisor/investing/fed-funds-rate-history/.
21
See, e.g., Alexandra Harris, How the Banks Gave Up $1 Trillion to Money Market Funds: QuickTake,
BLOOMBERG NEWS (Nov. 28, 2023), https://news.bloomberglaw.com/banking-law/how-banks-gave-up-1-trillion-to-
money-market-funds-quicktake; Emily Mason, The Great Yield Chase: Why a Trillion Has Fled Traditional Bank
Accounts, FORBES (May 15, 2023), https://www.forbes.com/sites/emilymason/2023/05/15/the-great-yield-chase-
why-a-trillion-has-fled-traditional-bank-accounts/?sh=1ac9b48e13cc; Alex Harris, Why US Banks Are
Hemorrhaging Deposits to Money Funds: QuickTake, BLOOMBERG NEWS (Mar. 31, 2023),
https://www.bloomberg.com/news/articles/2023-03-31/why-us-bank-deposits-are-moving-to-money-market-funds;
Gara Afonso et al., Monetary Policy Transmission and the Size of the Money Market Fund Industry: An Update,
LIBERTY STREET ECONOMICS (Apr. 3, 2023), https://libertystreeteconomics newyorkfed.org/2023/04/monetary-
policy-transmission-and-the-size-of-the-money-market-fund-industry-an-update/.
22
See Jenn Underwood, History of Savings Account Interest Rates, FORBES ADVISOR (Jan. 1, 2023),
https://www.forbes.com/advisor/banking/savings/history-of-savings-account-interest-rates/; Alex Graf & Syed
Muhammed Ghaznavi, Banks leverage high-cost products to attract deposits as competition intensifies, S&P
GLOBAL MARKET INTELLIGENCE (June 27, 2023), https://www.spglobal.com/marketintelligence/en/news-
insights/latest-news-headlines/banks-leverage-high-cost-products-to-attract-deposits-as-competition-intensifies-
76215128; Polo Rocha, How deposit concentration reignited and why it should continue in 2023, AMERICAN
BANKER (Dec. 28, 2022), https://www.americanbanker.com/list/how-deposit-competition-reignited-and-why-it-
should-continue-in-2023; Itzhak Ben-David et al., Banks’ Internal Capital Markets and Deposit Rates, 52 J. FIN. &
QUANT. ANALYSIS 5 (2017) (finding evidence supporting banks actively setting deposit rates higher in order to
attract depositors).
23
See Discover Bank, Savings, https://www.discover.com/online-banking/savings-account/ (last accessed Mar. 17,
2024).
24
See Ally Bank, Savings Account, https://www.ally.com/bank/online-savings-account (last accessed Mar. 8, 2024).
25
See American Express, Savings, https://www.americanexpress.com/en-us/banking/online-savings/account/ (last
accessed Mar. 8, 2024).
26
Barclays, Online Savings, https://www.banking.barclaysus.com/online-savings (last accessed Mar. 8, 2024).
27
See Capital One, 360 Performance Savings, https://www.capitalone.com/bank/savings-accounts/online-
performance-savings-account/ (last accessed Mar. 8, 2024).

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Goldman Sachs (4.5% APY),28 Sallie Mae (4.5% APY),29 Citizens (4.5% APY),30 SoFi
(4.6% APY),31 CIT Bank (4.65% APY),32 Betterment (4.75% APY),33 Synchrony Bank
(4.75% APY),34 Wealthfront (5.0% APY),35 and Bask Bank (5.1% APY),36 among others.
JPMC, BOA, and Wells Fargo are the exceptions, as these banks did not or were significantly
slower to increase rates. JPMC, BOA, and Wells Fargo each currently offer 0.01% APY on their
standard interest-bearing savings accounts, and their highest yield savings accounts offer 0.01%,
0.04%, and 2.5% APY, respectively.37 Although deposits at these larger institutions have
declined to an extent, they benefited from significant deposit inflows following the 2023 Silicon
Valley Bank and Signature Bank failures, as consumers shifted deposits held at smaller or digital
banks to larger institutions that were perceived to be safer;38 these institutions continue to hold
an outsized share of savings deposits, despite these differences.

Savings accounts also compete with money market funds, whose assets are estimated to
have surged by approximately $1.3 trillion in the past two years to about $6.4 trillion, since the
Federal Reserve started raising the federal funds rate.39 Like high-yield savings accounts, money
market funds appeal to businesses and consumers seeking higher returns on their cash, but with
the ability to access their cash at any time. Vanguard, JPMC, Charles Schwab, Invesco, Fidelity,
T. Rowe Price, and BlackRock are among the largest managers of money market funds in the

28
See Marcus by Goldman Sachs, Savings Account, https://www.marcus.com/us/en/savings/high-yield-
savings2?adobe mc sdid=SDID%3D1AF1DCD385972247-
22D2CAF77E99FE6C%7CMCORGID%3D51857BAF56FBC1EC7F000101%40AdobeOrg%7CTS%3D17107880
22&adobe mc ref=https%3A%2F%2Fround-lake.dustinice.workers.dev%3A443%2Fhttps%2Fwww.marcus.com%2Fus%2Fen%2Fsavings%2Fhigh-yield-saving (last
accessed Mar. 17, 2024).
29
See Sallie Mae, High Yield Savings Account, https://www.salliemae.com/banking/high-yield-savings-account/
(last accessed Mar. 8, 2024).
30
See Citizens Bank, High-yield online savings account,
https://www.secure.citizensaccess.com/Citizens/savings.page? (last accessed Mar. 8, 2024).
31
See Sofi Banking, Sofi Checking and Savings, https://www.sofi.com/banking/ (last accessed Mar. 8, 2024).
32
See CIT Bank, Savings Connect Account, https://www.cit.com/cit-bank/savings-connect (last accessed Mar. 8,
2024).
33
See Betterment, Cash Reserve, https://www.betterment.com/cash-reserve (last accessed Mar. 8, 2024).
34
See Synchrony Bank, High Yield Savings, https://www.synchronybank.com/banking/high-yield-savings/ (last
accessed Mar. 8, 2024).
35
See Wealthfront, Cash, https://www.wealthfront.com/cash (last accessed Mar. 8, 2024).
36
See Bask Bank, Interest Savings Account, https://www.baskbank.com/products/interest-savings-account (last
accessed Mar. 8, 2024).
37
See Chase Savings Account Interest Rate, https://www.chase.com/personal/savings/savings-account/interest-rates
(last accessed Mar. 8, 2024) (savings interest rate of 0.01%) (enter zip code data in search query); Bank of America
Savings Interest Rate Missouri, Deposit Interest Rates & Annual Percentage Yields, https://media.bac-
assets.com/DigitalDeposit MO MO Eastern.pdf?cacheBuster=2710 (last accessed Mar. 8, 2024) (savings interest
rate of 0.01%); Wells Fargo Savings Rate, https://www.wellsfargo.com/savings-cds/way2save/ (last accessed Mar.
8, 2024) (savings interest rates of 0.01%) (enter zip code data in search query). BOA offers 0.04% APY for
preferred rewards Diamond Honors accounts holding over $2,500 in deposits; Wells Fargo offers 2.5% APY for
Platinum Savings customers holding $1 million in balances; JPMC only offers 0.01% APY. See id.
38
See, e.g., Hugh Son, Deposit drain from smaller banks into financial giants like JPMorgan Chase has slowed,
sources say, CNBC (Mar. 25, 2023), https://www.cnbc.com/2023/03/25/banking-crisis-deposit-drain-from-small-
banks-into-jpm-wfc-c-slowed html.
39
See St. Louis Federal Reserve Economic Data, Money Market Funds; Total Financial Assets, Level,
https://fred.stlouisfed.org/series/MMMFFAQ027S; Alex Harris, Why US Banks Are Hemorrhaging Deposits to
Money Funds, BLOOMBERG (Mar. 31, 2023), https://www.bloomberg.com/news/articles/2023-03-31/why-us-bank-
deposits-are-moving-to-money-market-funds.

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COFC ranked 16th in total transaction account deposits among banks and thrifts—not only
behind the nation’s largest banks, but also behind PNC Financial Services Group (“PNC”),
KeyCorp, Citizens Financial Group (“Citizens”), Huntington Bancshares, and Regions Financial,
among others—and the combined COFC-Discover will remain 16th after the Proposed
Transaction.45

C. The Proposed Transaction will improve access to consumer-friendly banking

products.

As a result of the Proposed Transaction, Discover customers will immediately gain

access to COFC’s branch and café locations and associated services. Investments in Discover’s
payments networks will also facilitate improved products and services for COFC’s banking
customers.46 The combined COFC-Discover will thus be better positioned to grow its banking
presence; make more attractive its and Discover’s consumer-friendly banking products,
including no-minimum-balance, no-overdraft-fee checking accounts and higher-yield checking
accounts;47 and introduce new innovative products and services.

II. Credit Card Issuance

In recent transactions, the Federal Reserve has also considered the potential competitive
effects of transactions in the national market for issuance of credit cards. The Proposed
Transaction will not result in any substantial lessening of competition in this market.

A. Credit card issuing is not a concentrated industry.

The Federal Reserve and OCC have recognized that any market for credit card issuing is
national in scope, intensely competitive, and not concentrated.48 When COFC acquired HSBC’s

Deposit Rate Advantages at the Largest Banks, 53 J. FIN. SERVS. RSCH. 1 (2018) (finding that the perception of
lower risk at large banks led to large banks paying a lower risk premium).
45
See Annex 2.
46
See discussion infra notes 1736-183.
47
See supra notes 27 & 43.
48
See, e.g., Capital One, National Association, CRA Decision #149, at 3 (Mar. 9, 2012) (“CONA and COBNA are
two of roughly 5000-plus institutions that offer credit cards in a highly competitive market”),
https://www.occ.gov/topics/charters-and-licensing/interpretations-and-actions/2012/crad149.pdf; Bank of America
Corporation, Conditional Approval #625, at 2-3 (Feb. 24, 2004), https://www.occ.gov/topics/charters-and-
licensing/interpretations-and-actions/2004/ca625.pdf (“The OCC and the FRB have recognized that the market for
credit card services is national in scope. Credit card companies compete in soliciting and serving customers
throughout the United States. This national market is highly competitive and not concentrated.”); Citibank USA,
National Association, CRA Decision #117, at 3 (Oct. 16, 2003), https://www.occ.gov/topics/charters-and-
licensing/interpretations-and-actions/2003/crad117.pdf (“The OCC and the Federal Reserve Board have recognized
that the market for credit card services is national in scope . . . This national market is highly competitive and
unconcentrated. . . . The nationwide population of credit card issuing depository institutions is extensive, and there
are numerous alternative card lenders in the national marketplace”); HSBC Holdings, plc, Corporate Decision
#2003-2, at 2 (Mar. 27, 2003), https://www.occ.gov/topics/charters-and-licensing/interpretations-and-
actions/2003/cd03-2.pdf (same); First USA Bank, N.A., et al., Corporate Decision #2001-16, at 3 (June 14, 2001),
https://www.occ.gov/topics/charters-and-licensing/interpretations-and-actions/2001/cd01-16.pdf (“The OCC
recognizes that the relevant geographic market for credit card services is national in scope.”); Citigroup Inc.,
Corporate Decision #2000-21, at 2 (Nov. 30, 2000), https://www.occ.gov/topics/charters-and-
licensing/interpretations-and-actions/2000/cd00-21.pdf (same); Bank of America, National Association, Corporate

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credit card portfolio in 2012, for example, the OCC stated that the parties “are two of roughly
5,000-plus institutions that offer credit cards in a highly competitive market.”49 Courts have
similarly recognized the intensity of competition among issuers for credit cards. In the DOJ’s
lawsuit against Visa and Mastercard, which began in 1998 and ended in 2003, the Second Circuit
characterized competition among credit and charge card issuers in the United States as “robust,”
where “[thousands of] separate issuers compete to provide products to consumers.”50 The
district court in the same litigation found that “no single issuer dominates the industry; the
largest credit and charge card issuers have only small shares of total industry output.”51 The
DOJ acknowledged in that litigation that “[n]o one disputes that the issuer market is
unconcentrated.”52

These facts remain unchanged today. Thousands of credit card issuers compete to attract
customers,53 and all relevant metrics confirm that no single issuer dominates the market. The
market is unconcentrated, concentration levels have not increased since 1998,54 and, in the last

Decision No. 98-14, at 2 (Feb. 10, 1998), https://www.occ.gov/topics/charters-and-licensing/interpretations-and-

actions/1998/cd98-14.pdf (“The [credit card servicing] market is very fragmented where even the leading lenders
have relatively modest market shares.”); and Associates National Bank (Delaware), Corporate Decision #97-23 at 3
(Apr. 9, 1997), https://www.occ.gov/topics/charters-and-licensing/interpretations-and-actions/1997/cd97-23.pdf
(“Competition between issuers of major credit cards is intense”). For the Federal Reserve’s decisions, see Bank of
America Corporation, supra note 12, at 9-10 (“[I]ssuing credit cards is an activity that is conducted on a national or
global scale, with relatively low barriers to entry and with numerous other large financial organizations providing
these services.”); JPMorgan Chase & Co., supra note 12; Travelers Group Inc., 84 Fed. Res. Bull. 985, at 75 (Sept.
23, 1998), https://www federalreserve.gov/boarddocs/press/bhc/1998/19980923/19980923.pdf (“The record
indicates that there are numerous, active competitors providing each of these products and services, [including credit
card operations,] and that the markets for these products and services are unconcentrated.”); Banc One Corporation,
84 Fed. Res. Bull. 961, at 62 n.65 (Sept. 14, 1998),
https://www.federalreserve.gov/boarddocs/press/bhc/1998/19980914/19980914.pdf (“The Board previously has
determined that the markets for credit card issuers and credit card processors are national and are not
concentrated.”); and Banc One Corporation, 83 Fed. Res. Bull. 602 (May 14, 1997),
https://www.federalreserve.gov/boarddocs/press/bhc/1997/19970514/ (“Credit card issuers compete nationally for
credit card customers. . . . The market would remain unconcentrated . . . and numerous competitors would
remain.”).
49
Capital One, National Association, CRA Decision #149, at 3 (Mar. 9, 2012), https://www.occ.gov/topics/charters-
and-licensing/interpretations-and-actions/2012/crad149.pdf.
50
United States v. Visa U.S.A., Inc., 344 F.3d 229, 240 (2d Cir. 2003).
51
United States v. Visa U.S.A., Inc., 163 F. Supp. 2d at 333.
52
Brief for the United States at 48 n.43, United States v. Visa U.S.A., Inc., 344 F.3d 229, 240 (2d Cir. 2003) (No.
02-6074(L)).
53
CFPB, The Consumer Credit Card Market, at 18 (Oct. 2023) (hereinafter, “2023 CFPB Report”),
https://files.consumerfinance.gov/f/documents/cfpb consumer-credit-card-market-report 2023.pdf (“About 4,000
financial institutions offer credit cards.”); BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM, REPORT TO
THE CONGRESS ON THE PROFITABILITY OF CREDIT CARD OPERATIONS OF DEPOSITORY INSTITUTIONS 7 n.7 (July
2018), https://www federalreserve.gov/publications/files/ccprofit2018.pdf (noting that, as of 2018, there were “over
5,000 depository institutions, including commercial banks, credit unions, and savings institutions” that “issue Visa
and Mastercard credit cards and independently set the terms and conditions on their plans. Many thousands of other
institutions act as agents for card-issuing institutions. In addition to the firms issuing cards through the Visa and
Mastercard networks, a few institutions issue cards on two other large networks, American Express and Discover.”).
54
See Bank of America, National Association, Corporate Decision No. 98-14, supra note 48, at 2 (HHI would
increase to approximately 873 as a result of the transaction); Banc One Corporation, 84 Fed. Res. Bull. 961, supra
note 48, at 62 n.65 (HHI would increase 104 points to less than 1,000 as a result of the transaction). As of
December 31, 2023, the HHI based on credit card outstanding balances was 882, comparable to HHI concentration

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ten years, outstanding balance and purchase volume concentration levels have in fact declined.55
At the same time, purchase volume has grown significantly, further demonstrating that the
industry is highly competitive, with no single competitor or group of competitors exercising
market power.56 The Federal Reserve has measured concentration in the credit card issuing
market based on national “receivables” (that is, outstanding balances).57 Under that metric, the
market is unconcentrated. Shares based on purchase volume are likewise unconcentrated.

levels in 1998. The post-merger HHI of 1,060 remains less than that in 2010 (1,091). The Nilson Report, Issue Nos.
1258, 1257.
55
The Nilson Report, Issue Nos. 1258, 1257, 1236, 1235, 1214, 1213, 1192, 1191, 1170, 1169, 1148, 1147, 1126,
1125, 1104, 1103, 1081, 1080, 1058, 1057, 1035, 1034, 1012, 1011, 989, 988, 966, 965.
56
Outstanding balances, unlike purchasing volume, may be impacted by regulated leverage and other capital ratios.
Banks may securitize or sell credit card assets to satisfy these regulatory requirements, thereby lowering total
outstanding credit card balances held by the bank, which may explain why outstanding balances have not grown at
the same rate as purchasing volume. Nevertheless, concentration levels for outstanding balances have declined,
driven in significant part by a decline in share held by the top 10 credit card issuers, demonstrating the lack of
market power by any given issuer. See 2023 CFPB Report, supra note 53, at 19 fig. 3 (top 10 issuer share has
declined from 87.0% in 2016 to 82.9% in 2022, while the next top 20 issuer share has increased from 7.6% to
11.6%).
57
See, e.g., First Chicago Corp., 73 Fed. Res. Bull. 600, 601, 1987 WL 119316, at *1, n.4 (July 1, 1987) (analyzing
competition for credit card issuers based on each issuer’s overall national share of “bank credit card and check credit
receivables”); MNC Financial, Inc., 76 Fed. Res. Bull. 89, 93, 1990 WL 319504, at *4 (Feb. 1, 1990) (market shares
based on “bank credit card receivables in the United States”).

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 B. The credit card industry is intensely competitive and dynamic as issuers are
readily able to introduce new products and services and change existing
products and services to meet consumer demands.

The persistently low and decreasing concentration level in credit card issuing reflects
dynamism, innovation, and competition in the industry.58 Thousands of issuers compete for new
originations and increased purchasing through a multitude of packages and programs based on,
inter alia, interest rates and fees59; point programs that can be redeemed for merchandise, airline
tickets, travel, and entertainment (or all of them); cash back programs; amenities such as
purchase protection and airport lounges; early spend and sign-up bonuses; and interest-free
promotional periods.

These packages can be developed or refined quickly in response to changes in consumer

demand or spend. USB’s Bank’s Cash+ card and the Chase Freedom Flex card, for example,
allow consumers to choose and activate categories that are important to them for added cash
back.60 Citigroup’s Custom Cash card will automatically adjust rewards based on categories of
actual spend.61 Wells Fargo’s Autograph card targets travelers with unlimited 3X points for
travel expenses.62 Airline-specific cards let consumers earn more miles on purchases,63 and

58
See, e.g., Susan Herbst-Murphy, FEDERAL RESERVE BANK OF PHILADELPHIA, CREDIT CARD LANDSCAPE UPDATE
2 (Jan. 2018), https://www.philadelphiafed.org/-/media/frbp/assets/consumer-finance/discussion-papers/dp18-01.pdf
(“The credit card industry is nothing if not dynamic. . . . New technologies, changes to funding or other costs, and
new consumer entrants alter the status quo.”).
59
In 2009, the Credit Card Accountability Responsibility and Disclosure (CARD) Act set certain caps and
limitations on the fees credit card issuers could charge and limited certain interest rate hikes. In March 2024, the
Consumer Financial Protection Bureau issued a final rule pursuant to the CARD Act that lowers the immunity
provision dollar amount for late fees to $8 down from $32. See Press Release, CFPB, CFPB Bans Excessive Credit
Card Late Fees, Lowers Typical Fee from $32 to $8 (Mar. 5, 2024), https://www.consumerfinance.gov/about-
us/newsroom/cfpb-bans-excessive-credit-card-late-fees-lowers-typical-fee-from-32-to-8/. As a result, the ability for
issuers to compete on rates and fees has been significantly constrained. In general, credit card interest rates are
pegged to and have followed the federal funds rate. See American Bankers Association, Consumer Bankers
Association & National Association of FederallyíInsured Credit Unions, Comment to the CFPB Request for
Information Regarding Consumer Credit Market, at 2-3, Docket No. CFPB-2023-0009 (Apr. 24, 2023),
https://www.nafcu.org/system/files/files/CFPB-2023-
0009%20Joint%20Trades%20Letter%20to%20CFPB%20re%20Consumer%20Credit%20Card%20Market.pdf.
Overall profitability, however, has been relatively stable despite fluctuating interest rates. See Robert Adams, Vitaly
Bord & Bradley Katcher, BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM, CREDIT CARD PROFITABILITY
(Sept. 9, 2022), https://www federalreserve.gov/econres/notes/feds-notes/credit-card-profitability-20220909.html;
BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM, REPORT TO CONGRESS: PROFITABILITY OF CREDIT CARD
OPERATIONS OF DEPOSITORY INSTITUTIONS 3, Table 1 (July 2023) (hereinafter, “Profitability of Credit Card”),
https://www.federalreserve.gov/publications/files/ccprofit2023.pdf.
60
See U.S. Bank, U.S. Bank Cash+ Visa Signature Card, https://www.usbank.com/credit-cards/cash-plus-visa-
signature-credit-card.html (last accessed Mar. 16, 2024); Chase, Chase Credit Cards, https://creditcards.chase.com/
(last accessed Mar. 16, 2024).
61
See Citigroup, View and Compare All Credit Cards, https://www.citi.com/credit-cards/compare/view-all-credit-
cards (last accessed Mar. 16, 2024).
62
See Wells Fargo, Credit Cards,
https://creditcards.wellsfargo.com/?RCTTST=RCTCTL1&sub channel=WEB&vendor code=WF (last accessed
Mar. 16, 2024).
63
See, e.g., United Airlines, Rewards Cards, https://www2.theexplorercard.com/rewards-cards (last accessed Mar.
16, 2024).

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many others offer even more niche benefits, like the NFL Extra Points card.64

Issuers can retool their existing offerings with ease. For example, American Express
(“Amex”) recently moved its co-branded Morgan Stanley brokerage card from a points-based
rewards program to a cash-back offering65; BOA recently revamped its Customized Cash
Rewards card to allow cardholders, among other changes, to earn 3% cash back on electric
vehicle charging stations66; and in 2024, Citigroup changed its credit guidelines for two of its
cards to make them more accessible.67

Credit card issuers can appeal to consumers with aggressive no- or low-interest offerings
for new purchases or balance transfers for a promotional period. The new TD FlexPay card, for
example, is offering consumers a 0% introductory APR on balance transfers for 18 billing
cycles,68 and Amex’s Blue Cash Preferred Card offers 0% APR on purchases and balance
transfers for 12 months.69

Other card offerings, including recently developed products, are specifically designed to
help consumers build credit. “Some providers are offering new types of secured credit cards to
consumers lacking credit scores or credit files. For example, issuer Varo Bank introduced a
credit card which reserves the amount spent from a linked bank account to ensure users never
miss a payment,” allowing users to build credit and improve their credit score with limited bank

64
See NFL Extra Points, https://www nflextrapoints.com/ (last accessed Mar. 16, 2024).
65
See Kate Fitzgerald, American Express launches cash-back card for investors, AMERICAN BANKER (Nov. 10,
2021), https://www.americanbanker.com/news/american-express-launches-cash-back-card-for-investors.
66
See John Adams, How Bank of America, Barclays make loyalty about more than reward points, AMERICAN
BANKER (Sept. 8, 2023), https://www.americanbanker.com/payments/news/how-bofa-barclays-make-loyalty-about-
more-than-reward-points.
67
See Becky Pokora, Citi Adds Two Cash-Back Credit Cards for Fair Credit, FORBES (Feb. 5, 2024),
https://www forbes.com/advisor/credit-cards/citi-adds-two-cash-back-credit-cards-for-fair-credit/.
68
See TD Bank, TD FlexPay Credit Card, https://www.td.com/us/en/personal-banking/credit-cards/flex-pay (last
accessed Mar. 16, 2024). TD Bank is actively expanding its credit card offerings. Kate Fitzgerald, TD Bank
launches a credit card with zero interest and a monthly fee, AMERICAN BANKER (May 9, 2023),
https://www.americanbanker.com/payments/news/td-bank-launches-a-credit-card-with-zero-interest-and-a-monthly-
fee (announcing launch of two new credit cards, one that eliminates interest and charges a monthly fee —the first of
its kind—and another that gives cash-strapped customers a periodic break on payments and fees); TD Stories, TD
Bank Introduces Two New Credit Cards with Launch of Revamped Portfolio (May 9, 2023),
https://stories.td.com/us/en/article/td-bank-introduces-two-new-credit-cards-with-launch-of-revamped-portfolio
(announcing launch of two new cards and enhancements to existing TD Double Up and TD Cash credit cards);
Dawn Furnas, TD Bank extends Target credit card deal, NJ BIZ (Sept. 22, 2022), https://njbiz.com/td-bank-extends-
target-credit-card-deal/ (announcing extension of Target co-branding deal).
69
See Amex Blue Cash Preferred, https://www.americanexpress.com/us/credit-cards/card/blue-cash-preferred/ (last
accessed Mar. 16, 2024).

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risk.70 Chime, Self, and TomoCredit also offer secured credit cards that applicants can obtain
without a credit check,71 and Nerd Wallet recently announced the launch of its own such card.72

Competition in the industry has intensified as data and information collection and
solicitation and issuing technology have improved. Credit card issuers, including new entrants,
are well-positioned to identify an unmet demand, develop a product to meet the demand, and
deploy efficient marketing tactics that target specific populations.73 And the Federal Reserve has
previously recognized, “issuing credit cards is an activity . . . with relatively low barriers to entry
and with numerous . . . large financial organizations providing these services.”74 New “card-as-
a-service” offerings, in particular, have accelerated the timeline for product launches, providing
an avenue for smaller banks and issuers to quickly modernize and improve their digital offerings
and technology stack.75

Nor do mandated capital ratios limit a bank’s capacity to expand or grow its credit card
portfolios. Credit card assets represent a relatively small percentage of assets or deposits at some

70
CFPB, The Credit Card Market, at 160 (Sept. 2021) (hereinafter “2021 CFPB Study”),
https://files.consumerfinance.gov/f/documents/cfpb consumer-credit-card-market-report 2021.pdf.
71
Id.; see also Steve Cocheo, Battle for Credit Cards Waged with Innovation and Sheer Marketing Muscle, THE
FINANCIAL BRAND (Aug. 11, 2021), https://thefinancialbrand.com/news/payments-trends/innovation-and-sheer-
marketing-muscle-powering-credit-card-battle-120044/.
72
See Miriam Cross, NerdWallet explains how its credit card will help vast swath of users, AMERICAN BANKER
(Oct. 30, 2023), https://www.americanbanker.com/news/nerdwallet-explains-how-its-credit-card-will-help-vast-
swathe-of-users.
73
See Mark Furletti, THE FEDERAL RESERVE BANK OF PHILADELPHIA, CREDIT CARD PRICING DEVELOPMENTS AND
THEIR DISCLOSURE 1 (Jan. 2003) (hereinafter, “Credit Card Pricing”), https://www.philadelphiafed.org/-
/media/frbp/assets/consumer-finance/discussion-
papers/creditcardpricing 012003.pdf?la=en&hash=C681C5E95BF6626D8C0FDB0EFFBE052 (“Advances in credit
scoring, response modeling, and solicitation technologies (e.g., e-mail, direct mail, telemarketing) have allowed
experienced issuers to more efficiently market their products and enabled new issuers to enter the card market and
grow quickly.”); Sandra F. Braunstein, BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM, CREDIT
SCORING, BEFORE THE COMMITTEE ON FINANCIAL SERVICES, SUBCOMMITTEE ON FINANCIAL INSTITUTIONS AND
CONSUMER CREDIT, (Mar. 24, 2010),
https://www.federalreserve.gov/newsevents/testimony/37519B46AB684C1F91B30089062203E1 htm (“Credit
scoring also has increased access to credit for consumers, enhanced competition, and improved market efficiency”);
Terri Bradford, FEDERAL RESERVE BANK OF KANSAS CITY, GIVE ME SOME CREDIT: USING ALTERNATIVE DATA TO
EXPAND CREDIT ACCESS (June 28, 2023), https://www kansascityfed.org/research/payments-system-research-
briefings/give-me-some-credit-using-alternative-data-to-expand-credit-access/ (“[U]sing alternative financial data to
assess consumers’ creditworthiness resulted in both a higher probability of a consumer being approved for credit and
a more favorable interest rate for that credit.”); 2023 CFPB Report, supra note 53, at 169 (“New data sources for
underwriting, such as the use of consumer-permissioned data from bank accounts,” could improve access to credit).
74
Bank of America Corporation, supra note 12, at 9-10.
75
See, e.g., Christine Gibson, How ‘credit cards as a service’ is helping banks charge ahead, MASTERCARD
NEWSROOM (Dec. 6, 2023), https://www mastercard.com/news/perspectives/2023/how-credit-cards-as-a-service-is-
helping-banks-charge-ahead/ (“Brim’s modular customizable platform can significantly accelerate the deployment
of a credit card program for issuers of any size from months to weeks, fully empowering the institution to run and
evolve that program according to their customer and market needs.”); Suman Bhattacharyya, Inside Marqeta’s plans
to grow its ‘card-as-a-service’ offering, PAYMENTS DIVE (Mar. 2, 2021),
https://www.paymentsdive.com/news/inside-marqetas-plans-to-grow-its-card-as-a-service-offering/595965/ (API-
based platform that helps clients launch card offerings in months instead of years); Press Release, First National
Bank of Omaha, First National Bank of Omaha Launches Credit Card-as-a-Service Solution (Aug. 30, 2022),
https://www.businesswire.com/news/home/20220830005403/en/First-National-Bank-of-Omaha-Launches-Credit-
Card-as-a-Service-Solution.

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of the most active and largest issuers, including JPMC, Citigroup, BOA, USB and Wells Fargo.76
To the extent any issuer may be capital-constrained, it may sell or securitize credit card
balances,77 thereby expanding available capacity to issue and extend credit. In this environment
of a highly elastic supply curve, the Proposed Transaction raises no competitive concern.

C. Consumers can easily switch credit card products and can switch to other
transaction or lending products that compete for credit card spend.

Just as credit card issuers can flexibly respond to changing industry and competitive
dynamics, so too can consumers. As the OCC has previously noted, “[i]n addition to the
numerous [card issuer] alternatives, the market is characterized by the ability of card customers
to switch among those card providers with ease and rapidity.”78 Product innovations, such as
balance transfer, cash-back programs and no annual fee cards, facilitate and incentivize
switching and multi-homing, together with low introductory APRs or balance transfer APRs. 79
Rewards programs, which are prevalent, also incentivize switching.80 Because the U.S.
consumer holds an average of three to four credit cards, this switching occurs not just when a
consumer closes an account with one issuer and opens one with another, but also from one
transaction to the next.81

Increased digitization and availability of data in the industry has further facilitated
consumer switching. Credit card applications can be submitted quickly online or on a mobile
device,82 and some issuers approve applicants based on a “soft” credit inquiry (which does not
affect a credit rating), thereby eliminating any downside to submitting several credit card

76
See Annex 3.
77
See, e.g., Sifma, US Asset Backed Securities Statistics, https://www.sifma.org/resources/research/us-asset-backed-
securities-statistics/ (approximately $20.3 billion in credit card receivables were newly securitized in 2023); Press
Release, Barclays, Barclays and Blackstone Credit & Insurance Agree to Sale of Credit Card Receivables (Feb. 27,
2024), https://home.barclays/news/press-releases/2024/02/barclays-and-blackstone-credit---insurance-agree-to-sale-
of-cred/.
78
Citibank USA, National Association, CRA Decision #117, supra note 48, at 3; see also United States v. Visa
U.S.A., Inc., 163 F. Supp. 2d at 334 (“Cardholders today can choose from thousands of different card products with
varying terms and features, including a wide variety of rewards and co-branding programs . . . Consumers in the
United States also have extensive information available to them about card offerings and can readily switch cards
and issuers.”); 2023 CFPB Report, supra note 53, at 88 (“Since consumers often carry more than one card, credit
card issuers compete to acquire and retain ‘top-of-wallet’ status as consumers’ primary method of payment. Issuers
must refresh product offerings and provide new benefits regularly to ensure cardholders reach for their product first
at checkout or keep their card as the default option in a mobile wallet.”).
79
Credit Card Pricing, supra note 73, at 2.
80
2023 CFPB Report, supra note 53, at 98 (“Rewards frequently drive originations, as consumer report rewards and
sign-up offers are the top factors influencing their shopping decisions. After a consumer chooses to open a card,
rewards continue to play a major role, often determining card choice at point-of-sale. The fight for both new
customers and ‘top-of-wallet’ status for existing cardholders has intensified competition on rewards offerings in the
past two years.”); Sumit Agarwal, Sujit Chakravorti & Anna Lunn, Why Do Banks Reward Their Customers to Use
their Credit Cards? (Fed. Reserve Bank of Chi., WP No. 2010-19, 2010),
http://www.chicagofed.org/digital assets/publications/working papers/2010/wp2010 19.pdf (“[R]ewards have [a]
significant impact on credit card debt especially via substitution from another issuer’s credit card suggesting that
rewards are an effective tool to steal customers from a financial institution’s competitors.”).
81
See Stefan Lembo Stolba, What is the Average Number of Credit Cards per US Consumer?, EXPERIAN (Apr. 8,
2021), https://www.experian.com/blogs/ask-experian/average-number-of-credit-cards-a-person-has/.
82
2021 CFPB Study, supra note 70, at 66.

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applications.83 The increased use of digital wallets has eliminated physical limitations to the
number of cards an individual can hold.84 These digital wallets allow cardholders to switch card
usage based on a particular purchase, and new mobile applications help consumers quickly
identify which card provides the best reward for any particular purchase.85

Consumers also have an increasing wealth of available payment and credit options that
compete for each consumer transaction; those payment and credit options are a significant
constraint on credit card issuers. Debit cards are a preferred payment card of choice86 and debit
card transactions are growing proportionally faster than credit card transactions.87
Advancements in real-time payments networks have made bank-to-bank transfers seamless, and
peer-to-peer payment providers such as Venmo, Zelle and Apple Cash are growing in popularity
and use.88 Payments technology is likely only to become more competitive with Real Time
Payments from The Clearing House89 and the launch of FedNow, which enables instant
payments among participating financial institutions.90

Consumer lending has also become more competitive. Although other forms of
consumer lending have always competed to some degree with credit card lending,91 newer
83
See 2023 CFPB Report, supra note 53, at 162-63; Ben Luthi, Amex Introduces Soft Pull Credit Card Approval
Feature, FORBES (Nov. 30, 2022), https://www forbes.com/advisor/credit-cards/amex-introduces-credit-card-pre-
approval-feature/ (reporting on Amex’s introduction of a soft pull credit card approval feature).
84
See Amanda Claypool, 53% of Americans Use Digital Wallets More than Traditional Payment Methods: Poll,
FORBES ADVISOR (Aug. 23, 2023), https://www.forbes.com/advisor/banking/digital-wallets-payment-apps/; Vaibhav
Goel et al., McKinsey & Co., New trends in US consumer digital payments (Oct. 26, 2021),
https://www mckinsey.com/industries/financial-services/our-insights/banking-matters/new-trends-in-us-consumer-
digital-payments (“More than four in five Americans used some form of digital payment in 2021”); Julie L.
Stackhouse, FEDERAL RESERVE BANK OF ST. LOUIS, FINTECH: HOW DIGITAL WALLETS WORK (June 24, 2019),
https://www.stlouisfed.org/on-the-economy/2019/june/fintech-digital-wallets-work (“Experian reports that digital
payments topped $720 billion in 2017.”).
85
See, e.g., Jaime Catmull, 3 Top Credit Card Rewards Tracking Apps, FORBES (Jan. 19, 2022),
https://www forbes.com/sites/jaimecatmull/2022/01/19/3-top-credit-card-rewards-tracking-apps/?sh=20386bd144bc
(reporting on uThrive); KUDOS, https://www.joinkudos.com/ (last accessed Mar. 16, 2024).
86
See McKayla Wooldridge, Debit surpasses credit as consumers’ preferred payment card, S&P GLOB. MKT.
INTEL. (Sept. 27, 2022), https://www.spglobal.com/marketintelligence/en/news-insights/research/debit-surpasses-
credit-as-consumers-preferred-payment-card.
87
See Ling Ling Ang et al., Fintech Developments and Antitrust Considerations in Payments, 35 ANTITRUST 69, 71-
72 (Spring 2021) (noting blurring between credit card and bank payments as improvements in ACH and peer-to-peer
payment applications allowed real-time bank transfers); THE FEDERAL RESERVE PAYMENTS STUDY: 2022 TRIENNIAL
INITIAL DATA RELEASE, https://www federalreserve.gov/paymentsystems/fr-payments-study.htm (last updated July
27, 2023); The Nilson Report, Issue No. 1257, at 10-12 (2024) (showing Visa and Mastercard debit growth as
compared to credit growth).
88
See Kevin Foster et al., FEDERAL RESERVE BANK OF ATLANTA, 2022 SURVEY AND DIARY OF CONSUMER
PAYMENT CHOICE: SUMMARY RESULTS 1 (2023), https://www.atlantafed.org/-/media/documents/banking/consumer-
payments/survey-diary-consumer-payment-choice/2022/sdcpc 2022 report.pdf (“Two-thirds of consumers reported
that they had adopted an online payment account such as PayPal, Venmo, or Zelle.”).
89
See RTP, THE CLEARING HOUSE, https://www.theclearinghouse.org/payment-systems/rtp (“RTP from The
Clearing House is a real-time payments platform that all federally insured U.S. depository institutions are eligible to
use for payments innovation”) (last accessed Mar. 10, 2024).
90
About the FedNow Service, FRBSERVICES.ORG, https://www frbservices.org/financial-services/fednow/about html
(last accessed Mar. 16, 2024).
91
See Profitability of Credit Card, supra note 59, at 6.
https://www.federalreserve.gov/publications/files/ccprofit2023.pdf (“[S]ome borrowers have turned to personal
loans for debt consolidation, including the refinancing of credit card debt.”).

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product innovations have made switching across products even easier. For example, access to
personal loans, which serve as a means for consumers to consolidate credit card debt, has
expanded with new fintech offerings, including from SoFi92 and Upgrade,93 intensifying credit
card lending competition.94 Most notably, “buy now, pay later” (“BNPL”) products such as
Affirm, Afterpay and Klarna—which offer consumers the ability to make a single purchase using
a point-of-sale, short-term, and typically interest-free or low-interest loan with predetermined
repayment schedules—have, as reported by the Federal Reserve Bank of Kansas City, “the
potential to replace credit card payments,” accounting for $8 billion to $10 billion in lost bank
revenue annually.95 Credit card issuers have responded to these innovations by offering their
own installment payment plans using a cardholder’s existing line of credit.96 Banks have also
introduced new small-dollar loans, which can be deposited and used in a matter of minutes.
Wells Fargo’s Flex Loan, for example, is a digital-only small dollar loan ($250 or $500)
available for a flat fee, with funds deposited within seconds after acceptance, enabling Wells
Fargo debit card holders to immediately complete a transaction.97 The ease with which
consumers can switch credit cards or other forms of payment or credit, particularly in a market
with so many competitors, makes the exercise of market power—whether unilaterally or through
coordinated interaction—implausible.

D. The Proposed Transaction will not substantially lessen competition for credit
card issuing.

The Proposed Transaction will not reduce competition in this fragmented and dynamic
industry. Concentration and share levels as a result of the Proposed Transaction are well below

92
See Credit Card Debt Consolidation Loans, SOFI, https://www.sofi.com/personal-loans/credit-card-consolidation-
loans/ (last accessed Mar. 16, 2024).
93
See Personal Loans, UPGRADE, https://www.upgrade.com/personal-loans/ (touting benefit of refinancing credit
card debt) (last accessed Mar. 16, 2024).
94
See Eldar Beiseitov, FEDERAL RESERVE BANK OF SAINT LOUIS, THE ROLE OF FINTECH IN UNSECURED CONSUMER
LENDING TO LOW- AND MODERATE-INCOME INDIVIDUALS: HOW HAS FINTECH CHANGED ACCESS TO UNSECURED
CONSUMER LOANS 2, 4 (Sept. 2022),
https://www.newyorkfed.org/medialibrary/media/newsevents/events/regional outreach/2022/092922/2022-09-29-
eldar-beiseitov-fintech-personal-loans-ny-fed.
95
Julian Alcazar & Terri Bradford, FEDERAL RESERVE BANK OF KANSAS CITY, PAYMENT SYSTEMS RESEARCH
BRIEFING, THE RISE OF BUY NOW, PAY LATER: BANK AND PAYMENT NETWORK PERSPECTIVES AND REGULATORY
CONSIDERATIONS (Dec. 1, 2021), https://www.kansascityfed.org/research/payments-system-research-briefings/the-
rise-of-buy-now-pay-later-bank-and-payment-network-perspectives-and-regulatory-considerations/. See also Tom
Akana, FEDERAL RESERVE BANK PHILADELPHIA, BUY NOW, PAY LATER: SURVEY EVIDENCE OF CONSUMER
ADOPTION AND ATTITUDES (2022), https://www.philadelphiafed.org/-/media/frbp/assets/consumer-
finance/discussion-papers/dp22-02.pdf (reporting on survey relating to BNPL usage with 31% of respondents having
used BNPL in the previous 12 months); Profitability of Credit Card, supra note 5991, at 6 (“[T]he buy-now-pay-
later (BNPL) market has grown significantly over the past several years as an alternative payment method for
consumers at point of sale.”).
96
See 2023 CFPB Report, supra note 53, at 106-07 (“At the time of writing, five of the ten largest general purpose
credit card issuers offer this feature in some capacity. Each of these programs was launched between 2017 and
2021, coinciding with the increasing popularity of ‘buy now, pay later’ (‘BNPL’) loans.”).
97
See Rica Dela Cruz, Wells Fargo unveils digital-only, small-dollar loan, S&P GLOB. MKT. INTEL. (Nov. 16,
2022).

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relevant safe harbor thresholds.98 Based on current data,99 the parties’ combined share of credit
card purchase volume in the U.S. credit card issuing market is 13.6%, and the combined share of
credit card outstanding balances is 19.0%. HHI levels are similarly well within safe harbor
levels, whether measured by purchase volume or outstanding balances.100

Credit Card Issuers101 Change in Post-merger Combined

HHI HHI Share
Purchase Volume 74 1,226 13.6%

Outstanding Balances 178 1,060 19.0%

While the combined COFC-Discover will be a leading credit card issuer, the company
will continue to face many significant competitors, including Amex and large financial
institutions such as JPMC, Citigroup, BOA, Wells Fargo, USB, and Barclays PLC through its
U.S. subsidiary, Barclays Bank Delaware (“Barclays”), which are profiled with their holding
companies further below. Numerous other banks and financial institutions also compete in the
credit card issuing market, including, among others, Credit One Financial, First National of
Nebraska, Inc., First Premier Bank, CardWorks, Inc. (through Merrick Bank), Navy Federal
Credit Union, PNC, Synchrony Financial (“Synchrony”), Toronto-Dominion Bank (through its
U.S. subsidiary TD Bank, N.A. (“TD Bank”)), Truist Financial Corporation (“Truist”), and
United Services Automobile Association (through its subsidiary USAA Federal Savings Bank).

COFC is presently the twelfth largest bank holding company by total assets. As a result
of the transaction, COFC will rank eighth, behind industry leaders JPMC, BOA, Citigroup, Wells
Fargo, Goldman Sachs, Morgan Stanley, and USB. These large financial institutions have and
will continue to have significantly greater resources than COFC to invest in and develop new or
existing products and services in competition with COFC. Other large banks such as PNC,
Truist, TD Bank, and Barclays are of comparable or larger size and will also continue to compete
with COFC. Amex, the second largest card issuer in the United States in terms of both
98
See Bank Merger Guidelines and 2023 Merger Guidelines, discussed supra note 3.
99
These data are based on The Nilson Report, Issue Nos. 1257 and 1258 (2024), and limited to the top 20 U.S.
general purpose credit card issuers (excluding private label). Volumes for Amex are assigned to the issuing bank
where Amex itself is not the issuer. Outstanding balances refers to total ending outstandings as of December 31,
2023 of on-balance and off-balance sheet figures. Purchase volume refers to purchase volume initiated by all
general purpose credit cards issued in the United States.
100
The parties’ shares and industry concentration levels are comparable and similarly safe harbor when looking at
mid-year balances as of June 30, 2023 or purchasing volume for the first six months ending June 30, 2023. Based
on June 2023 data, the parties’ combined share by purchase volume was 13.4% and concentration levels by purchase
volume would increase 72 points to 1,213 as a result of the transaction. The parties’ combined share by outstanding
credit card balances was 18.7% and concentration levels by outstanding balances would increase 172 points to 1,046
as a result of the transaction. See The Nilson Report, Issue Nos. 1248 and 1249 (2023).
101
The HHI is calculated as the sum of the square of the shares of the largest 20 U.S. credit card issuers, with shares
determined as a percent of the entire market. As shares of issuers beyond the top 20 are relatively small, this
accurately measures the HHI for all credit card issuers.

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outstanding balances and purchase volume, will also continue to compete fiercely after the
transaction. Amex, like Discover, operates a payments network in competition with Visa and
Mastercard. Both Amex’s credit card portfolio and credit card network are significantly larger
than Discover’s today,102 and Amex has continuously invested and innovated within the credit
card space.103

In addition to the numerous competitors actively issuing credit cards today, other newer
and innovative forms of payment and credit present significant competitive threats to credit card
issuers. The Proposed Transaction will not change these dynamics as the combined COFC-
Discover faces competition from these numerous and varied competitors.

E. The Proposed Transaction will increase access to credit and improve services for
consumers and merchants.

The Proposed Transaction will likely increase access to credit. COFC’s distinct
underwriting capabilities—which facilitate expanded access to credit for all consumers—will
enable card offers to some consumers who do not satisfy Discover’s credit requirements today,104
resulting in more overall credit card issuance by the combined company. The Proposed
Transaction also has the potential to further improve COFC’s underwriting abilities to expand
access even further. As a result of the transaction, COFC will have access to differentiated
information and data on its customers’ credit card use through Discover’s integrated payments
platform, reducing information sharing costs. As Amex touts, its “integrated payments platform
allows [it] to analyze information on Card Member spending and build algorithms and other
analytical tools that we use to underwrite risk . . .”105

COFC’s additional scale in card issuing and access to the Discover payments networks
will also enable it to better connect consumers and merchants across new offers, rewards, and
opportunities. For example, the networks will give COFC access to transactional data that can
be used to improve the Capital One Shopping and Capital One Travel experiences, more
seamlessly bring relevant and timely offers to consumers, and provide merchants with greater
visibility thereby facilitating more sales.106 As Amex touts that its integrated payments platform

102
In 2023, Amex had $149.9 billion in credit card balances outstanding compared to Discover’s $102.3 billion.
Including all volumes on Amex cards issued by others, Amex had $157.7 billion in balances outstanding. The
Amex payments network accounts for almost 20% of credit card purchasing volume as compared to Discover’s
credit card network, which accounted for only 4% of such purchasing volume. The Nilson Report, Issue Nos. 1257
and 1258 (2024); cf. Ohio v. Am. Express Co., 585 U.S. at 537.
103
See discussion infra notes 146-156.
104
Per the CFPB’s Terms of Credit Card Plans data for January 1, 2023 through June 30, 2023, Capital One offered
several unsecured credit cards in target credit tiers of borrowers with a credit score of 619 or less or no score,
whereas Discover only offered one secured credit card with a target credit tier of borrowers with a credit score of
619 or less and did not offer any credit card with a target credit tier of borrowers with no score. CFPB, Terms of
Credit Card Plans (TCCP) Survey, https://files.consumerfinance.gov/f/documents/cfpb tccp-data 2023-01-
01 2023-06-30.xlsx.
105
Amex, Form 10-K for year ended December 31, 2023, at 4 (hereinafter “Amex 2023 Form 10-K”),
https://s26.q4cdn.com/747928648/files/doc financials/2023/ar/American-Express-Annual-Report-2023.pdf.
106
See Your Personalized Deals, CAPITAL ONE SHOPPING, https://capitaloneshopping.com/ (last accessed Mar. 16,
2024); CAPITAL ONE TRAVEL, https://capitalonetravel.com/ (last accessed Mar. 16, 2024).

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allows it to “provide targeted marketing and other information services for merchants and
partners and special offers and services to Card Members,”107 so too can COFC post-merger.

F. Select Competitor Profiles

JPMC is the largest bank holding company in the United States headquartered in New York,
New York, with $3,875 billion in assets as of December 31, 2023, and a market capitalization of
$548.1 billion as of March 15, 2024. JPMC has a full-service bank and financial services
company with over 4,500 branches, a leading digital banking platform,108 and the leading credit
card issuing business in the United States by all metrics.109 Its credit card business touts an
impressive retention rate of 98%.110 Its leadership in credit card issuance, however, has been the
product of continual and persistent investment and innovation. Since 2019, JPMC has launched
or refreshed 24 credit card products, and in 2023 alone, opened five airport lounges as it makes
further investments in lifestyle benefits and experiences.111 During its 2023 Investor Day
presentation, JPMC noted its strategy to “[g]row our card member base across key segments” by
“launch[ing] new, tailored products” and “fuel[ing] continued growth through our world-class
marketing and distribution engine.”112 From 2019 to 2022, JPMC increased its credit card
acquisition spend nearly 40% from $3.1 billion to $4.3 billion translating to a 23% increase in
new accounts. The company also continued to invest in card benefits, increasing its benefits
spend (including co-branding efforts) from $1.3 billion in 2019 to $1.6 billion in 2022.113

Citigroup is the third largest bank holding company in the United States, headquartered in New
York, New York, with $2,412 billion in assets as of December 31, 2023, and a market
capitalization of $110.1 billion as of March 15, 2024. Citigroup has a full-service bank offering
commercial and retail banking together with wealth management and investment products and
services in its 647 retail branches and online.114 Citigroup is a leading credit card issuer and
ranked third in outstanding credit card balances and purchase volume as of December 31,
2023.115 It presently offers eight different Citi® branded credit cards,116 including the Custom
Cash card, which it launched in 2021.117 As noted above, the Custom Cash card adjusts reward
categories based on a cardholder’s actual spend. In 2024, Citigroup updated its guidelines for
credit scores eligible for the Custom Cash card, as well as its Double Cash card, which are now

107
See Amex 2023 Form 10-K, supra note 105, at 2.
108
See JPMC, Consumer & Community Banking, Investor Day 2023 Presentation, at 5, 34 (May 22, 2023)
https://www.jpmorganchase.com/content/dam/jpmc/jpmorgan-chase-and-co/investor-
relations/documents/events/2023/jpmc-investor-day-2023/consumer-community-banking.pdf.
109
110
Id. at 51-52.
111
Id. at 53.
112
Id. at 52.
113
Id. at 55-56.
114
See Citigroup, Form 10-K for year ended December 31, 2023,
https://www.citigroup.com/rcs/citigpa/storage/public/10k20231231.pdf.
115
116
See View and Compare All Credit Cards, CITI, https://www.citi.com/credit-cards/compare/view-all-credit-cards
(last accessed Mar. 16, 2024).
117
See Press Release, Citigroup, Citi Launches Custom Cash—A Next-Gen Cash Back Credit Card (June 10, 2021),
https://www.citigroup.com/global/news/press-release/2021/citi-launches-custom-cash-a-next-gen-cash-back-credit-
card.

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available to applicants with “fair” credit.118 Citigroup also issues co-branded credit cards,
including American Airlines,119 AT&T,120 Brooks Brothers,121 Costco,122 and Tractor Supply.123

BOA is the second largest bank holding company in the United States, headquartered in
Charlotte, North Carolina, with $3,180 billion in assets as of December 31, 2023,124 and a market
capitalization of $279.4 billion as of March 15, 2024. BOA has a full-service bank with 3,800
retail financial centers and a network of 15,000 ATMs, complemented by its digital offerings. Its
Consumer Banking business segment offers a range of consumer and commercial deposit and
lending products and services,125 including a robust credit card offering. As of December 31,
2023, BOA ranked fifth by outstanding credit card balances and purchasing volume.126 BOA
recently noted that it is “investing more in [credit] card[s], and it’s growing a bit in response,”127
consistent with efforts in recent years to revamp its credit card portfolio.128 This has included
retooling the Customized Cash Rewards Card, as noted above, which touts an impressive 98%
retention rate,129 and adding new credit card offerings, including the Premium Rewards Elite
card, Executive Explorer card, and Business Advantage Unlimited Cash Rewards card (including
a secured version).130

118
See Becky Pokora, Citi Adds Two Cash-Back Credit Cards for Fair Credit, FORBES ADVISOR (Feb. 5, 2024),
https://www.forbes.com/advisor/credit-cards/citi-adds-two-cash-back-credit-cards-for-fair-credit/.
119
View and Compare All Credit Cards, CITI, supra note 116.
120
See Press Release, Citigroup, Citi and AT&T Renew Long-Standing Credit Card Collaboration (June 4, 2021),
https://www.citigroup.com/global/news/press-release/2021/citi-and-att-renew-long-standing-credit-card-
collaboration.
121
Press Release, Citigroup, Citi Retail Services and Brooks Brothers Extend Consumer Credit Card Relationship
(Jan. 28, 2022), https://www.citigroup.com/global/news/press-release/2022/citi-retail-services-and-brooks-brothers-
extend-consumer-credit-card-relationship.
122
Citi Costco Card, CITI, https://www.citi.com/usc/LPACA/COSTCO/cards/Dual/ps/index html (last accessed Mar.
16, 2024).
123
Press Release, Citigroup, Citi Retail Services and Tractor Supply Company Extend 20+ Year Credit Card
Relationship (May 24, 2021), https://www.citigroup.com/global/news/press-release/2021/citi-retail-services-and-
tractor-supply-company-extend-20-year-credit-card-relationship.
124
See Bank of America Corp., Form 10-K for year ended December 31, 2023,
https://investor.bankofamerica.com/regulatory-and-other-filings/all-sec-filings/content/0000070858-24-
000122/0000070858-24-000122.pdf.
125
Id. at 34-35.
126
127
See Brian Moynihan, Chair and CEO, Bank of Am., Remarks at the Goldman Sachs US Financial Services
Conference 3 (Dec. 5, 2023),
https://d1io3yog0oux5.cloudfront net/ 7df4f14ecc26670a17a4902079294191/bankofamerica/db/775/9990/webcast
transcript/2023-1205+Goldman+Sachs+Conference BAC.pdf.
128
See Katherine Doherty, Bank of America to Make Its Credit Cards From Recycled Plastic, BLOOMBERG (Apr. 21,
2022), https://www.bloomberg.com/news/articles/2022-04-21/bank-of-america-to-make-its-credit-cards-from-
recycled-plastic.
129
See John Adams, How Bank of America, Barclays make loyalty about more than reward points, AMERICAN
BANKER (Sept. 8, 2023), https://www.americanbanker.com/payments/news/how-bofa-barclays-make-loyalty-about-
more-than-reward-points.
130
See Katherine Doherty & Jennifer Surane, BofA Leans on Private Jets, Supercars to Draw Big Card Spenders,
BLOOMBERG (Dec. 9, 2021), https://www.bloomberg.com/news/articles/2021-12-09/bofa-leans-on-private-jets-
supercars-to-draw-big-card-spenders?embedded-checkout=true; Katherine Doherty, Bank of America Unveils New
Credit Card for High-Flying Business Travelers, BLOOMBERG (Aug. 4, 2021),
https://www.bloomberg.com/news/articles/2021-08-04/bofa-unveils-new-credit-card-for-high-flying-business-
travelers?embedded-checkout=true; Press Release, Bank of America, Bank of America Launches Business

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USB is the seventh largest bank holding company in the United States, headquartered in
Minneapolis, Minnesota, with $663 billion in assets as of December 31, 2023,131 and a market
capitalization of $65.6 billion as of March 15, 2024. As a full service bank operating over 2,200
branches and 4,500 ATMs nationwide, together with a strong digital offering, USB provides
consumer and business banking; wealth, corporate commercial and institutional banking, and
payment services,132 including a leading line of credit card offerings.133 At the end of 2023, USB
ranked seventh by outstanding credit card balances and purchasing volume.134 USB has
consistently expanded and improved its credit card solutions. For example, in 2021, USB rolled
out two new secured credit cards;135 in 2022, USB launched the Altitude Connect Card offering
rewards with extra rewards for travel, gas, and grocery spend;136 in 2023, USB launched its
Commercial Rewards Card targeting middle market companies, which, in addition to offering
credit, provides travel spend management for businesses;137 and in 2024, USB launched a new
cash-back credit card, the U.S. Bank Shopper Cash Rewards Card.138 USB also operates a
separate payment services business unit which recently launched USB’s own BNPL offering.139

Wells Fargo is the fourth largest bank holding company in the United States, headquartered in
San Francisco, California, with $1,932 billion in assets as of December 31, 2023,140 and a market
capitalization of $205.7 billion as of March 15, 2024. Wells Fargo offers a full portfolio of
financial products and services, including investment and mortgage products as well as retail and
commercial banking products and services, which includes credit card issuing.141 At the end of

Advantage Unlimited Cash Rewards Card for Entrepreneurs (Oct. 21, 2021),
https://newsroom.bankofamerica.com/content/newsroom/press-releases/2021/10/bank-of-america-launches-
business-advantage-unlimited-cash-rewar html; Press Release, Bank of America, Bank of America Announces New
Secured Credit Offerings and Digital Resources to Help Entrepreneurs Start and Grow Their Businesses (Mar. 23,
2022), https://newsroom.bankofamerica.com/content/newsroom/press-releases/2022/03/bank-of-america-announces-
new-secured-credit-offerings-and-digit html https://www.prnewswire.com/news-releases/bank-of-america-
announces-new-secured-credit-offerings-and-digital-resources-to-help-entrepreneurs-start-and-grow-their-
businesses-301508970 html.
131
See USB, 2023 ANNUAL REPORT 3-4, https://ir.usbank.com/files/doc financials/2023/ar/US-Bancorp-2023-
Annual-Report ADA.pdf.
132
Id. at 3.
133
See id. at 11.
134
135
See US Bank Debuts Two Secured Credit Cards, PYMNTS (Oct. 12, 2021), https://www.pymnts.com/credit-
cards/2021/us-bank-debuts-two-secured-credit-cards/.
136
See Elizabeth Gravier, U.S. Bank launches new credit card with 50k-point welcome bonus, plus earn rewards on
travel, gas, groceries and more, CNBC SELECT (Mar. 11, 2022), https://www.cnbc.com/select/us-bank-launches-
new-altitude-connect-visa-signature-credit-card/.
137
See John Adams, U.S. Bank adds AI to business travel payments as competition heats up, AMERICAN BANKER
(June 27, 2023), https://www.americanbanker.com/payments/news/u-s-bank-adds-ai-to-business-travel-payments-
as-competition-heats-up.
138
See Tessa Campbell, U.S. Bank Shopper Cash Rewards Card Review 2024, BUSINESS INSIDER (Feb. 7, 2024),
https://www.businessinsider.com/personal-finance/us-bank-shopper-cash-rewards-card-review.
139
See John Adams, U.S. Bank is leaning on Elavon for BNPL reach, AMERICAN BANKER (Nov. 13, 2023),
https://www.americanbanker.com/payments/news/u-s-bank-is-leaning-on-elavon-for-bnpl-reach.
140
See Wells Fargo, 4Q 2023 FINANCIAL RESULTS 6 (2024),
https://www08.wellsfargomedia.com/assets/pdf/about/investor-relations/earnings/fourth-quarter-2023-financial-
results.pdf.
141
See Wells Fargo, Form 10-K for year ended Dec. 31, 2023,
https://www08.wellsfargomedia.com/assets/pdf/about/investor-relations/sec-filings/2023/10k.pdf.

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2023, Wells Fargo ranked eighth in outstanding balances and purchasing volume.142 Wells
Fargo offers credit cards under its own brand, including the launch of Reflect and Active Cash
Card in 2021 and its Autograph card in 2022,143 and, in recent years, has made a push to issue
even more co-branded cards.144 The company’s large balance sheet and diversified offerings
allow Wells Fargo to invest significantly across varied financial products and services, including
in new technologies that can improve services across different products. In 2024, Wells Fargo
plans to launch new credit cards, including a new travel card and a new small business credit
card, while improving its digital offerings including the launch of a new digital wallet.145

Amex is a leading U.S. credit card issuer and operates a leading credit network with $261 billion
in total assets as of December 31, 2023, and a market capitalization of $158.1 billion as of March
15, 2024. Headquartered in New York, New York, Amex is the second largest credit card issuer
by outstanding credit card balances and purchase volume.146 Unlike most other credit card
issuers—Discover being the other exception—Amex negotiates directly with merchants to
increase and maintain acceptance of its cards.147 Amex issues credit cards under the American
Express brand and partners with others to co-brand cards on the Amex network, such as Delta
Air Lines, Marriott International, Hilton Worldwide Holdings, and British Airways.148 Amex
has consistently innovated within the credit card space: it was the first to introduce a “Gold”
premium credit card, one of the early adopters of BNPL with the launch of Plan It in 2017,149 one
of the first to add non-fungible tokens as a card reward,150 has integrated with Paypal to offer
consumers the ability to split payments across credit and debit solutions,151 and is the first issuer
to pilot facial and fingerprint recognition for online checkouts.152 In recent years, Amex has also

142
143
See Polo Rocha, Wells Fargo’s new rewards card is latest move in lagging unit’s revamp, AMERICAN BANKER
(June 27, 2022), https://www.americanbanker.com/news/wells-fargos-new-rewards-card-is-latest-move-in-lagging-
units-revamp; Daniel Wolfe, Wells Fargo to launch Reflect 0% APR card in October, AMERICAN BANKER (Sept. 29,
2021), https://www.americanbanker.com/payments/news/wells-fargo-to-launch-reflect-0-apr-card-in-october; Polo
Rocha, Wells Fargo’s 2% cash-back card is a bid to bolster lagging unit, AMERICAN BANKER (June 8, 2021),
https://www.americanbanker.com/news/wells-fargos-2-cash-back-card-is-a-bid-to-bolster-lagging-unit.
144
See, e.g., Arpita Banerjee, Choice Hotels to launch co-branded credit card with Wells Fargo, Mastercard, S&P
GLOB. MKT. INTEL. (Feb. 14, 2023); Polo Rocha, Wells Fargo, eyeing growth in credit cards, lands hotel chain as
partner, AMERICAN BANKER (Feb. 14, 2023), https://www.americanbanker.com/news/wells-fargo-eyeing-growth-in-
credit-cards-lands-hotel-chain-as-partner (Choice, Bilt Rewards, Dillards, and Hotel.com); Jennifer Surane, New
Wells Fargo Credit Card Gives Customer Rewards for Rent Payments, BLOOMBERG (Mar. 28, 2022),
https://www.bloomberg.com/news/articles/2022-03-28/wells-fargo-to-give-apartment-dwellers-rewards-for-rent-
payments.
145
Wells Fargo, 4Q 2023 FINANCIAL RESULTS 20, supra note 140.
146
147
See Amex, 2023 Form 10-K, supra note 105, at 1-2.
148
Id. at 4.
149
See Polo Rocha, American Express launches new ‘buy now, pay later’ option for air travel, AMERICAN BANKER
(May 13, 2021), https://www.americanbanker.com/news/american-express-launches-new-buy-now-pay-later-option-
for-air-travel.
150
See Laura Alix, American Express turns NFTs into a credit card perk, AMERICAN BANKER (July 12, 2021),
https://www.americanbanker.com/news/american-express-turns-nfts-into-a-credit-card-perk.
151
See Kate Fitzgerald, American Express debuts in-app connection to PayPal, AMERICAN BANKER (Oct. 7, 2021),
https://www.americanbanker.com/payments/news/american-express-debuts-in-app-connection-to-paypal.
152
See Press Release, Amex, American Express is First Card Issuer to Pilot Facial and Fingerprint Recognition for
Safer Online Checkouts (Oct. 5, 2023), https://www.americanexpress.com/en-
us/newsroom/articles/innovation/american-express-is-first-card-issuer-to-pilot-facial-and-finger.html.

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expanded its suite of banking products and services. In 2021, Amex introduced a new, fully
digital business checking account for small and midsized businesses,153 and, in 2022, launched a
rewards-based consumer checking account.154 Amex has also made recent investments,
including through its acquisition of Nipendo in 2023, to improve B2B digitization.155 In 2023,
Amex generated $60.5 billion in revenues, an increase of 14% from the prior year, reflecting, in
part, “the high levels of new card acquisition and Card Member retention, as well as [its] cycle of
product refreshes.”156

Barclays PLC is a UK-based financial services company with a market capitalization of $34.6
billion as of March 15, 2024, that operates a leading U.S. consumer bank—Barclays Bank
Delaware—specialized in credit card servicing.157 The U.S. operations of Barclays US LLC held
$187 billion in assets as of December 31, 2023. Barclays is the ninth largest U.S. card issuer by
balances and purchase volume.158 In 2023, Barclay’s Consumer, Cards, and Payments division
generated £5.3 billion in revenue with its U.S. business reporting a 24% increase year over
year.159 Barclays specializes in co-branded credit cards, partnering with retailers and others, to
issue and service cards. Significant partners include American Airlines, Frontier, Carnival,
Barnes & Noble, UPromise, and Xbox, among others.160 Barclays is continuously updating its
partner programs and, in 2023, announced changes to its award-winning JetBlue partnership,
launching a new loyalty program to improve the card’s points offering and accelerated path to
higher airline status.161 Responding to the growth of BNPL offerings and usage, Barclays

153
See Maitree Christian, American Express launches checking account for small, midsize US businesses, S&P
GLOB. MKT. INTEL. (Oct. 28, 2021).
154
See Kate Fitzgerald, American Express launches consumer checking with rewards, AMERICAN BANKER (Feb. 8,
2022), https://www.americanbanker.com/payments/news/american-express-launches-consumer-checking-with-
rewards.
155
See John Adams, Inside Amex’s quest to digitize business payments, AMERICAN BANKER (May 11, 2023),
https://www.americanbanker.com/payments/news/inside-amexs-quest-to-digitize-business-payments; Kate
Fitzgerald, American Express buying invoicing firm to boost B2B payments, AMERICAN BANKER (Jan. 12, 2023),
https://www.americanbanker.com/payments/news/american-express-buying-invoicing-firm-to-boost-b2b-payments;
Robin Arnfield, How American Express has bulked up its B2B services, AMERICAN BANKER (Oct. 11, 2022),
https://www.americanbanker.com/payments/news/how-american-express-has-bulked-up-its-b2b-services; Robin
Arnfield, Amex pushing beyond cards to woo small businesses, AMERICAN BANKER (May 10, 2021),
https://www.americanbanker.com/news/amex-pushing-beyond-cards-to-woo-small-businesses.
156
Amex, 2023 Form 10-K, supra note 105.
157
See Barclays PLC, ANNUAL REPORT 2023, 1, 21, https://home.barclays/content/dam/home-
barclays/documents/investor-relations/reports-and-events/annual-reports/2023/Barclays-PLC-Annual-Report-
2023.pdf.
158
159
Id. at 21.
160
See Barclays, US CONSUMER BANK INVESTOR UPDATE 92 (Feb. 20, 2024),
https://home.barclays/content/dam/home-barclays/documents/investor-
relations/ResultAnnouncements/FullYear2023Results/20240220-Barclays-US-Consumer-Bank-Investor-
Update.pdf.
161
See John Adams, How Bank of America, Barclays make loyalty about more than reward points, AMERICAN
BANKER (Sept. 8, 2023), https://www.americanbanker.com/payments/news/how-bofa-barclays-make-loyalty-about-
more-than-reward-points.

-23-
launched its own BNPL product in 2020,162 and has announced plans to develop a white-label
BNPL product with fintech company, Amount.163

Synchrony is a financial services company that offers private label, patented dual, co-brand and
general purpose credit cards, as well as short- and long-term installment loans and other
consumer banking products.164 It reported $117.0 billion in assets as of December 31, 2023, and
had a market capitalization of $17.0 billion as of March 15, 2024. It is a digital-only bank and is
the eleventh largest credit card issuer by outstanding balances and tenth by purchase volume.165
Synchrony specializes in co-branded credit cards, partnering with retailers, manufacturers, and
others, to issue and service credit cards. Significant co-branding partners include Walgreens,
Lowe’s, Sam’s Club, Amazon, and Paypal.166 In 2023, Synchrony added 16 new partners to its
portfolio, including Albertsons, Roto Rooter, and J.Crew,167 and launched a new Synchrony
branded credit card for outdoor vehicle owners.168

III. Payments Networks

The Proposed Transaction will not substantially lessen competition in any payments
network market, and will instead promote competition by deconcentrating these highly
concentrated markets, over which Visa and Mastercard tower. As noted above, Discover
operates three payments networks; COFC does not own or operate any payments network. The
transaction will thus not increase share in any payments network market, will not increase
concentration levels in any such market, and in fact will deconcentrate and improve competition
in credit and debit payments network markets. Post-transaction, COFC plans to grow payments
volumes on Discover’s credit and debit networks. Given the reduced and declining share—and
limited current competitive significance—of Discover’s networks today, the Proposed
Transaction will increase competition among payments networks.

162
See Kate Fitzgerald, Barclays issuing private-label cards to reach more retailers, AMERICAN BANKER (Jan. 31,
2022), https://www.americanbanker.com/payments/news/why-barclays-has-begun-issuing-private-label-credit-cards.
163
See Kate Fitzgerald, Barclays, Amount add installment loans, AMERICAN BANKER (Apr. 27, 2021),
https://www.americanbanker.com/payments/news/barclays-amount-add-installment-loans-for-cobranded-credit-
cards.
164
See Synchrony Financial, Form 10-K for year ended December 31, 2023 at 7, 17-19,
https://investors.synchrony.com/filings-regulatory/sec-filings/all-sec-filings/content/0001601712-24-
000047/0001601712-24-000047.pdf.
165
Rankings from The Nilson Report are determined with Amex volumes distributed to its issuing banks. If its
volumes were not distributed, Synchrony would rank tenth largest by balances above Navy Federal Credit Union.
See The Nilson Report, Issue No. 1258.
166
See id.; Synchrony, INVESTOR PRESENTATION (Feb. 2023),
https://d1io3yog0oux5.cloudfront net/ 521a66dd58871e0d41cb981c8b55799b/synchrony/db/3583/33295/pdf/synch
rony-investor-slides-final.pdf.
167
Id.
168
See Press Release, Synchrony, New Synchrony Outdoors Credit Card Delivers Comprehensive Payments
Solution for Powersports Dealers and Enthusiasts (Mar. 8, 2023),
https://www.synchrony.com/contenthub/newsroom/new-synchrony-outdoors-credit-card-delivers.html.

-24-
and the HHI changes and post-merger HHIs resulting in these categories, are well within safe
harbor levels.

The competitive characteristics of the credit card industry—including the heterogeneity

of products and issuers, the ease with which issuers may change or expand their product
offerings, and the ease with which consumers may add credit cards or switch credit cards or
between credit cards and other payment and lending solutions—prevent the exercise of market
power or successful coordinated anticompetitive behavior in any segment of the industry. In
sum, even if the Federal Reserve were to assess the proposed acquisition’s effect on credit cards
separately from the cluster of banking products and services provided by Capital One and
Discover, the proposed acquisition will not have any adverse impact on competition among the
myriad credit card issuers in the United States.

Indeed, the transaction has meaningful procompetitive effects by deconcentrating the

debit and credit network industries, which sorely need an injection of competitive rivalry. As a
result of the transaction, COFC will be better able to invest in and grow its banking products, to
innovate and bring to market new products and services, and make Discover’s payments
networks more attractive through, inter alia, increased payment volumes and improved
compliance and risk management. By vertically integrating a more scaled credit card portfolio
with Discover’s payments networks, the Proposed Transaction will strengthen competition in the
industry. Accordingly, the competitive considerations of the Proposed Transaction are consistent
with approval of the Application.

-29-
ANNEX1

NationalAdjustedDepositsasof12/31/2023
CalculatedaspertheNationalDepositsCap

Company AdjustedDeposits %ofTotal

CapitalOneFinancialCorporation 379,858,095 2.14

DiscoverFinancialServices 113,226,408 0.64
Combined 493,084,503 2.78

HHI 401.8
ChangeinHHI 2.7
PostͲmergerHHI 404.5

AllInstitutions
JPMorganChase&Co. 2,059,464,500 11.61
BankofAmericaCorporation 1,977,297,000 11.15
WellsFargo&Company 1,445,115,943 8.15
CitigroupInc. 787,601,000 4.44
U.S.Bancorp 525,454,648 2.96
ThePNCFinancialServicesGroup,Inc. 434,085,030 2.45
TruistFinancialCorporation 417,351,000 2.35
CapitalOneFinancialCorporation 379,858,095 2.14
TheGoldmanSachsGroup,Inc. 365,781,000 2.06
MorganStanley 363,903,000 2.05
TheTorontoͲDominionBank 341,047,219 1.92
TheCharlesSchwabCorporation 292,307,000 1.65
TheBankofNewYorkMellonCorporation 225,156,794 1.27
BankofMontreal 209,139,471 1.18
CitizensFinancialGroup,Inc. 193,434,082 1.09
FifthThirdBancorp 182,009,000 1.03
M&TBankCorporation 170,556,104 0.96
AllyFinancialInc. 161,575,000 0.91
StateStreetCorporation 159,065,000 0.90
HuntingtonBancsharesIncorporated 156,280,992 0.88
KeyCorp 155,332,930 0.88
FirstCitizensBancshares,Inc. 150,341,702 0.85
AmericanExpressCompany 147,874,253 0.83
HSBCHoldingsplc 134,299,682 0.76
RegionsFinancialCorporation 133,553,000 0.75
DiscoverFinancialServices 113,226,408 0.64
UnitedServicesAutomobileAssociation 97,324,000 0.55
UBSGroupAG 91,600,214 0.52
Others 5,808,192,275 32.75

TotalBanks/Thrifts 17,678,226,342 99.67

InsuredForeignBranches 57,931,930 0.33
GrandTotal 17,736,158,272 100.00

Source:CallReportData(DepositInsuranceSection)asprovidedbyS&PMarketIntelligence
Totalscalculatedataninstitutionlevelaggregatedtothetopholdingcompany.
AdjustedDeposits=TotalDepositLiabilitiesBeforeExclusionsͲTotal
AllowableExclusions+InterestAccruedandUnpaidonDeposits
ANNEX2

SelectedDepositsasof12/31/2023
Calculatedataninstitutionlevelandaggregatedtoholdingcompany

MMDA&Other TotalTransaction
TotalDomestic SavingsDeposits AccountDeposits
ParentName Deposits($000) % Rank ($000) % Rank ($000) % Rank

CapitalOneFinancialCorporation 374,037,440 2.2 8 226,479,871 2.7 7 64,544,040 1.1 16
DiscoverFinancialServices 112,624,604 0.6 26 64,446,676 0.8 21 2,937,689 0.0 142
Combined 486,662,044 2.8 6 290,926,547 3.5 6 67,481,729 1.1 16

HHI 403 589 440

ChangeinHHI 3 4 0
PostͲmergerHHI 405 593 440

AllInstitutions 17,336,881,336 100.0 8,350,678,203 100.0 6,120,075,345 100.0

WellsFargo&Company 1,407,626,039 8.1 3 358,416,000 4.3 4 853,632,224 13.9 1
CitigroupInc. 747,614,000 4.3 4 153,831,000 1.8 9 464,020,000 7.6 2
JPMorganChase&Co. 2,037,915,500 11.8 1 1,282,309,000 15.4 2 463,202,000 7.6 3
BankofAmericaCorporation 1,921,122,000 11.1 2 1,317,322,000 15.8 1 447,507,000 7.3 4
MorganStanley 361,236,000 2.1 10 28,645,000 0.3 32 271,643,000 4.4 5
TruistFinancialCorporation 407,515,000 2.4 7 145,565,000 1.7 11 218,389,000 3.6 6
TheGoldmanSachsGroup,Inc. 363,006,000 2.1 9 85,433,000 1.0 16 184,453,000 3.0 7
TheBankofNewYorkMellonCorporation 214,168,794 1.2 13 22,382,000 0.3 40 181,829,794 3.0 8
StateStreetCorporation 158,902,000 0.9 19 7,633,000 0.1 92 145,167,000 2.4 9
FifthThirdBancorp 175,648,000 1.0 16 52,588,000 0.6 24 107,301,000 1.8 10
ThePNCFinancialServicesGroup,Inc. 428,490,983 2.5 6 302,432,068 3.6 5 94,490,102 1.5 11
KeyCorp 148,528,430 0.9 22 42,373,093 0.5 27 91,386,857 1.5 12
CitizensFinancialGroup,Inc. 181,058,662 1.0 15 73,607,660 0.9 18 80,770,716 1.3 13
HuntingtonBancsharesIncorporated 155,523,945 0.9 20 66,497,929 0.8 20 73,901,342 1.2 14
RegionsFinancialCorporation 130,154,000 0.8 25 45,968,000 0.6 25 69,189,000 1.1 15
CapitalOneFinancialCorporation 374,037,440 2.2 8 226,479,871 2.7 7 64,544,040 1.1 16
U.S.Bancorp 517,223,585 3.0 5 406,778,123 4.9 3 59,409,296 1.0 17
HSBCHoldingsplc 130,184,217 0.8 24 58,814,869 0.7 23 47,311,992 0.8 18
ZionsBancorporation,NationalAssociation 74,960,838 0.4 32 19,482,796 0.2 48 45,482,433 0.7 19
TheTorontoͲDominionBank 334,268,615 1.9 11 261,955,515 3.1 6 43,582,048 0.7 20
M&TBankCorporation 167,293,851 1.0 17 104,013,061 1.2 13 42,521,566 0.7 21
FirstCitizensBancShares,Inc. 149,562,994 0.9 21 91,714,769 1.1 15 40,730,477 0.7 22
NewYorkCommunityBancorp,Inc. 81,523,024 0.5 30 21,514,614 0.3 43 37,533,892 0.6 23
Popular,Inc. 64,044,637 0.4 36 17,554,546 0.2 49 37,409,628 0.6 24
ComericaIncorporated 67,983,506 0.4 34 24,046,000 0.3 35 35,663,506 0.6 25
WesternAllianceBancorporation 55,689,308 0.3 39 14,790,510 0.2 55 30,792,380 0.5 26
TheCharlesSchwabCorporation 290,411,000 1.7 12 214,460,000 2.6 8 27,654,000 0.5 27
SynovusFinancialCorp. 51,343,156 0.3 41 15,285,653 0.2 53 25,275,022 0.4 28
Cullen/FrostBankers,Inc. 42,410,482 0.2 46 12,903,744 0.2 67 24,021,671 0.4 29
DeutscheBankAktiengesellschaft 26,281,027 0.2 65 2,922,000 0.0 179 23,139,000 0.4 30
Others 6,071,154,303 35.0 2,872,959,382 34.4 1,788,122,359 29.2

Source:CallReportData(DepositSection)asprovidedbyS&PMarketIntelligence.
U.S.regulatorydataataninstitutionlevelaggregatedtothetopholdingcompany.
ANNEX3

CreditCardLoanstoAssets(%)
December31,2023

Credit
CreditCard Cards
Loans Loans/
Outstanding Total
Company TotalAssets($000) ($000) Assets(%)
JPMorganChase&Co. 3,875,393,000 185,793,000 4.8
BankofAmericaCorporation 3,180,151,000 102,200,000 3.2
CitigroupInc. 2,411,834,000 173,014,000 7.2
WellsFargo&Company 1,932,472,000 53,047,000 2.7
U.S.Bancorp 663,491,000 28,711,000 4.3

Source:FRYͲ9CasprovidedbyS&PCapitalIQPro.
IncludesonͲbalancesheetbalancesonly.
Last Update: 20240221.174513 RSSD ID: 2277860
FR Y-15
OMB Number 7100-0352
Approval expires December 31, 2025
Page 1 of 14
(;+,%,7
Board of Governors of the Federal Reserve System

Systemic Risk Report—FR Y-15

Report at the close of business as of the last calendar day of the quarter.
This Report is required by law: Sections 163 and 165 of the The Federal Reserve may not conduct or sponsor, and an
Dodd-Frank Wall Street Reform and Consumer Protection Act; organization (or a person) is not required to respond to, a
Section 5 of the Bank Holding Company Act of 1956; section 10 collection of information unless it displays a currently valid OMB
(b) of the Homeowners' Loan Act; and section 8 of the control number.
International Banking Act of 1978.

NOTE: Each banking organization's board of directors and senior Date of Report: December 31, 2023
management are responsible for establishing and maintaining an Month / Day / Year (RISK 9999)
effective system of internal control, including controls over the
Systemic Risk Report. The Systemic Risk Report is to be prepared in
accordance with instructions provided by the Federal Reserve System.
The Systemic Risk Report must be signed and attested by the Chief
Financial Officer (CFO) of the reporting banking organization (or by
the individual performing this equivalent function). For foreign bank-
ing organizations, the Systemic Risk Report must be signed and
attested by an authorized officer of the foreign banking organization.

I, the undersigned CFO (or equivalent/authorized officer) of the

named banking organization, attest that the Systemic Risk Report
(including the supporting schedules) for this report date has been
prepared in conformance with the instructions issued by the
Federal Reserve System and is true and correct to the best of my
knowledge and belief.
Andrew M. Young CAPITAL ONE FINANCIAL CORPORATION

Printed Name of Chief Financial Officer (or Equivalent/Authorized Officer) (RISK C490) Legal Title of Holding Company or Foreign Banking Organization (RSSD 9017)
1680 CAPITAL ONE DRIVE
Signature of Chief Financial Officer (or Equivalent/Authorized Officer) (RISK H321) (Mailing Address of the Holding Company or Foreign Banking Organization)
Street / PO Box (RSSD 9028)

02/16/2024 MCLEAN
Date of Signature (MM/DD/YYYY) (RISK J196) City (RSSD 9130) Country (RSSD 9005)
VA 22102
State (RSSD 9200) Zip Code (RSSD 9220)

Person to whom questions about this report should be directed:

Is confidential treatment requested for any 0=No RISK
portion of this report submission? .................. 1=Yes C447 0 Kendall Long
In accordance with the General Instructions for this report Name / Title (RISK 8901)
(check only one), (804) 205-4758
1. a letter justifying this request is being provided along Area Code / Phone Number (RISK 8902)
with the report (RISK KY38) .........................................
N/A
2. a letter justifying this request has been provided Area Code / FAX Number (RISK 9116)
separately (RISK KY38)............................................... [email protected]
E-mail Address of Contact (RISK 4086)

Banking organizations must maintain in their files a manually signed and attested printout of the data submitted.

The ongoing public reporting burden for this information collection is estimated to average 405 hours per response, including time to gather and maintain data in the required form and to
review instructions and complete the information collection. Comments regarding this burden estimate or any other aspect of this information collection, including suggestions for reducing
the burden, may be sent to Secretary, Board of Governors of the Federal Reserve System, 20th and C Streets, NW, Washington, DC 20551, and to the Office of Management and Budget,
Paperwork Reduction Project (7100-0352), Washington, DC 20503.
12/2022
Last Update: 20240221.174513 RSSD ID: 2277860
FR Y-15
Page 2 of 14

Schedule A—Size Indicator

U.S. Dollar Amounts in Thousands RISK Amount
Total Exposures
1. Derivative exposures:
a. Current exposure of derivative contracts ......................................................................... M337 1,489,913 1.a.
b. Potential future exposure (PFE) of derivative contracts ...................................................... M339 7,420,548 1.b.
c. Gross-up for derivatives collateral.................................................................................. Y822 0 1.c.
d. Effective notional amount of written credit derivatives ........................................................ M340 3,051,905 1.d.
e. Cash variation margin included as an on-balance sheet receivable ...................................... Y823 0 1.e.
f. Exempted central counterparty legs of client-cleared transactions included in items 1(a) and 1(b)......... Y824 0 1.f.
g. Effective notional amount offsets and PFE adjustments for sold credit protection..................... Y825 0 1.g.
h. Total derivative exposures (sum of items 1.a. through 1.d, minus the sum of
items 1.e through 1.g)................................................................................................. Y826 11,962,366 1.h.
2. Securities financing transaction (SFT) exposures:
a. Gross SFT assets ...................................................................................................... M334 421,184 2.a.
b. Counterparty credit risk exposure for SFTs ...................................................................... N507 8,424 2.b.
c. SFT indemnification and other agent-related exposures ..................................................... Y827 0 2.c.
d. Gross value of offsetting cash payables .......................................................................... Y828 0 2.d.
e. Total SFT exposures (sum of items 2.a through 2.c, minus item 2.d) ..................................... Y829 429,608 2.e.
3. Other on-balance sheet exposures:
a. Other on-balance sheet assets ..................................................................................... Y830 480,720,335 3.a.
b. Regulatory adjustments............................................................................................... M349 15,119,574 3.b.
4. Other off-balance sheet exposures:
a. Gross notional amount of items subject to a 0% credit conversion factor (CCF) ...................... M342 393,125,747 4.a.
b. Gross notional amount of items subject to a 20% CCF....................................................... M718 1,535,480 4.b.
c. Gross notional amount of items subject to a 50% CCF....................................................... M346 42,814,701 4.c.
d. Gross notional amount of items subject to a 100% CCF ..................................................... M347 7,889,561 4.d.
e. Credit exposure equivalent of other off-balance sheet items (sum of 0.1 times item 4.a,
0.2 times item 4.b, 0.5 times item 4.c, and item 4.d) .......................................................... Y831 68,916,582 4.e.
5. Total exposures prior to regulatory deductions (sum of items 1.h, 2.e, 3.a, and 4.e) .................... Y832 562,028,891 5.

0=No RISK
6. Does item 5 represent an average value over the reporting period? (Enter "1" for Yes; enter "0" for No.) ... 1=Yes FC52 1 6.

Memoranda
U.S. Dollar Amounts in Thousands RISK Amount
1. Securities received as collateral in securities lending ............................................................ M335 0 M.1.
2. Cash collateral received in conduit securities lending transactions ........................................... M336 0 M.2.
3. Credit derivatives sold net of related credit protection bought ................................................. M341 3,136,862 M.3.
4. Total consolidated assets................................................................................................ 2170 481,433,137 M.4.
5. Total off-balance sheet exposures (item 5 minus M.4.) .......................................................... KW01 80,595,754 M.5.
6. Total nonbank assets. .................................................................................................... KY47 5,291,908 M.6.

Schedule B—Interconnectedness Indicators

U.S. Dollar Amounts in Thousands RISK Amount

Intra-Financial System Assets
1. Funds deposited with or lent to other financial institutions ...................................................... M351 60,637,179 1.
a. Certificates of deposit ................................................................................................. M355 0 1.a.
2. Unused portion of committed lines extended to other financial institutions ................................. J458 11,233,111 2.
3. Holdings of securities issued by other financial institutions:
a. Secured debt securities ............................................................................................... M352 0 3.a.
b. Senior unsecured debt securities .................................................................................. M353 0 3.b.
c. Subordinated debt securities ........................................................................................ M354 0 3.c.
d. Commercial paper...................................................................................................... M345 0 3.d.

06/2020
Last Update: 20240221.174513 RSSD ID: 2277860
FR Y-15
Page 3 of 14

Schedule B—Continued
U.S. Dollar Amounts in Thousands RISK Amount
Intra-Financial System Assets—Continued
e. Equity securities ......................................................................................................... M356 865,238 3.e.
f. Offsetting short positions in relation to the specific equity securities included in item 3.e ............ M357 0 3.f.
4. Net positive current exposure of securities financing transactions (SFTs) with other financial institutions .. M358 601 4.
5. Over-the-counter (OTC) derivative contracts with other financial institutions that have a net positive
fair value:
a. Net positive fair value .................................................................................................. M359 11,349 5.a.
b. Potential future exposure .............................................................................................. M360 532,124 5.b.
6. Total intra-financial system assets (sum of items 1, 2 through 3.e, 4, 5.a, and 5.b, minus item 3.f) ... M362 73,279,602 6.
Intra-Financial System Liabilities
7. Deposits due to other financial institutions:
a. Deposits due to depository institutions............................................................................. M363 3,913 7.a.
b. Deposits due to non-depository financial institutions ........................................................... M364 2,984,443 7.b.
8. Borrowings obtained from other financial institutions............................................................... Y833 30,030 8.
9. Unused portion of committed lines obtained from other financial institutions................................. M365 0 9.
10. Net negative current exposure of SFTs with other financial institutions ...................................... M366 0 10.
11. OTC derivative contracts with other financial institutions that have a net negative fair value:
a. Net negative fair value .................................................................................................. M367 23,568 11.a.
b. Potential future exposure .............................................................................................. M368 277,575 11.b.
12. Total intra-financial system liabilities (sum of items 7.a through 11.b) ........................................ M370 3,319,529 12.
Securities Outstanding
13. Secured debt securities ................................................................................................... M371 0 13.
14. Senior unsecured debt securities ....................................................................................... M372 27,516,934 14.
15. Subordinated debt securities ............................................................................................ M373 3,731,337 15.
16. Commercial paper .......................................................................................................... 2309 0 16.
17. Certificates of deposit...................................................................................................... M374 83,013,529 17.
18. Common equity ............................................................................................................. M375 49,876,684 18.
19. Preferred shares and other forms of subordinated funding not captured in item 15 ....................... N509 3,613,285 19.
20. Total securities outstanding (sum of items 13 through 19) ....................................................... M376 167,751,769 20.

Memoranda
U.S. Dollar Amounts in Thousands RISK Amount
1. Standby letters of credit extended to other financial institutions ................................................. Y834 105,855 M.1.

Schedule C—Substitutability Indicators

U.S. Dollar Amounts in Thousands RISK Amount

Payments Activity
1. Payments made in the last four quarters:
a. Australian dollars (AUD) ............................................................................................... M377 885,280 1.a.
b. Brazilian real (BRL) ..................................................................................................... M378 198 1.b.
c. Canadian dollars (CAD) ............................................................................................... M379 7,795,904 1.c.
d. Swiss francs (CHF) ..................................................................................................... M380 288,343 1.d.
e. Chinese yuan (CNY).................................................................................................... M381 134,399 1.e.
f. Euros (EUR) .............................................................................................................. M382 12,282,986 1.f.
g. British pounds (GBP) ................................................................................................... M383 8,789,771 1.g.
h. Hong Kong dollars (HKD) ............................................................................................. M384 48,210 1.h.
i. Indian rupee (INR)....................................................................................................... M385 2,928 1.i.
j. Japanese yen (JPY) .................................................................................................... M386 159,679 1.j.
k. Mexican pesos (MXN) ................................................................................................... Y835 949,959 1.k.
l. Swedish krona (SEK)................................................................................................... M387 393,516 1.l.
m. United States dollars (USD) ......................................................................................... M388 1,245,264,448 1.m.
2. Payments activity (sum of items 1.a through 1.m) ................................................................. M390 1,276,995,621 2.

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Schedule C—Continued
U.S. Dollar Amounts in Thousands RISK Amount
Assets Under Custody
3. Assets held as a custodian on behalf of customers................................................................ M405 9 3.
Underwritten Transactions in Debt and Equity Markets
4. Equity underwriting activity ............................................................................................... M406 266,483 4.
5. Debt underwriting activity ................................................................................................. M407 4,645,700 5.
6. Total underwriting activity (sum of items 4 and 5) .................................................................. M408 4,912,183 6.

Memoranda
U.S. Dollar Amounts in Thousands RISK Amount
1. New Zealand dollars (NZD)............................................................................................... Y836 221,502 M.1.
2. Russian rubles (RUB) ...................................................................................................... Y837 18 M.2.
3. Payments made in the last four quarters in all other currencies ................................................. M389 1,332,878 M.3.
4. Unsecured settlement/clearing lines provided ....................................................................... M436 20,842,724 M.4.
5. Securities traded in the last four quarters: M.5.
a. Securities issued by public sector entities ........................................................................ KW46 5,053,527 M.5.a.
b. Other fixed income securities ........................................................................................ KW48 7,525,492 M.5.b.
c. Listed equities ............................................................................................................ KW50 5,344,647 M.5.c.
d. Other securities .......................................................................................................... KW52 35,350 M.5.d.
6. Trading volume - fixed income (sum of items M.5.a and M.5.b) ................................................ MV93 12,579,019 M.6.
7. Trading volume - equities and other securities (sum of items M.5.c and M.5.d)............................ MV95 5,379,997 M.7.

Schedule D—Complexity Indicators

U.S. Dollar Amounts in Thousands RISK Amount
Notional Amount of Over-the-Counter (OTC) Derivative Contracts
1. OTC derivative contracts cleared through a central counterparty .............................................. M409 157,254,048 1.
2. OTC derivative contracts settled bilaterally .......................................................................... M410 111,066,956 2.
3. Total notional amount of OTC derivative contracts (sum of items 1 and 2) .................................. M411 268,321,004 3.
Trading and Available-for-Sale (AFS) Securities
4. Trading securities ........................................................................................................... M412 0 4.
5. AFS securities ............................................................................................................... 1773 79,116,905 5.
6. Equity securities with readily determinable fair values not held for trading .................................. JA22 878,854 6.
7. Total trading, AFS and equity securities with readily determinable fair values not held for trading
(sum of items 4, 5, and 6) ................................................................................................ M414 79,995,759 7.
8. Trading, AFS and equity securities with readily determinable fair values not held for trading that
meet the definition of level 1 liquid assets ........................................................................... N510 32,832,508 8.
9. Trading, AFS and equity securities with readily determinable fair values not held for trading that
meet the definition of level 2 liquid assets, with haircuts ......................................................... N511 37,531,884 9.
10. Total adjusted trading, AFS and equity securities with readily determinable fair values not held
for trading (item 7 minus items 8 and 9) .............................................................................. N255 9,631,367 10.
Level 3 Assets
11. Assets valued for accounting purposes using Level 3 measurement inputs ................................ G506 1,152,372 11.

Memoranda

U.S. Dollar Amounts in Thousands RISK Amount

1. Held-to-maturity securities ................................................................................................ 1754 0 M.1.

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Schedule E—Cross-Jurisdictional Activity Indicators

U.S. Dollar Amounts in Thousands RISK Amount
Cross-Jurisdictional Claims
1. Foreign claims on an ultimate-risk basis .............................................................................. M422 8,127,000 1.
Cross-Jurisdictional Liabilities
2. Foreign liabilities (excluding local liabilities in local currency) ................................................... M423 14,772 2.
a. Any foreign liabilities to related offices included in item 2.................................................... M424 5,801 2.a.
3. Local liabilities in local currency......................................................................................... M425 591,000 3.
4. Total cross-jurisdictional liabilities (sum of items 2 and 3, minus item 2.a) .................................. M426 599,971 4.
5. Cross-jurisdictional activity (sum of items 1 and 4) ................................................................ KY49 8,726,971 5.

Memoranda
U.S. Dollar Amounts in Thousands RISK Amount
1. Foreign derivative claims on an ultimate-risk basis ................................................................. KW54 100,000 M.1.
2. Total cross-jurisdictional claims (sum of items 1 and M.1) ........................................................ KW55 8,227,000 M.2.
3. Foreign derivative liabilities on an immediate-counterparty basis ............................................... KW56 92,402 M.3.
4. Consolidated foreign liabilities on an immediate-counterparty basis excluding derivative liabilities .... KW57 591,000 M.4.
5. Total cross-jurisdictional liabilities, including derivatives (sum of items M.3 and M.4) ..................... KY50 683,402 M.5.

Schedule F—Ancillary Indicators

U.S. Dollar Amounts in Thousands RISK Amount
Ancillary Indicators
1. Total liabilities................................................................................................................ 2948 420,374,942 1.
2. Retail funding ................................................................................................................ M427 286,509,517 2.
3. Total gross revenue ........................................................................................................ M430 49,462,679 3.
4. Total net revenue ........................................................................................................... M428 36,765,615 4.
5. Foreign net revenue........................................................................................................ M429 1,583,941 5.
6. Gross value of cash provided and gross fair value of securities provided in securities financing
transactions (SFTs) ........................................................................................................ M432 538,345 6.
7. Gross value of cash received and gross fair value of securities received in SFTs......................... M433 549,017 7.
8. Gross positive fair value of over-the-counter (OTC) derivative contracts .................................... M434 2,057,507 8.
9. Gross negative fair value of OTC derivative contracts ............................................................ M435 2,453,189 9.

Number in Single Units RISK

10. Number of jurisdictions .................................................................................................................... M437 7 10.

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Schedule G—Short-Term Wholesale Funding Indicator

(Column A) (Column B) (Column C) (Column D)
Remaining Maturity of Remaining Maturity of Remaining Maturity of Remaining Maturity of
30 Days or Less 31 to 90 Days 91 to 180 Days 181 to 365 Days
U.S. Dollar Amounts in Thousands RISK Amount RISK Amount RISK Amount RISK Amount
Short-term Wholesale Funding
1. First tier:
a. Funding secured by level 1 liquid assets ......................................... Y838 271,422 Y839 3,294 Y840 1,423 Y841 1,300 1.a.
b. Retail brokered deposits and sweeps ............................................. Y842 1,160,204 Y843 430,776 Y844 770,430 Y845 3,377,960 1.b.
c. Unsecured wholesale funding obtained outside of the financial sector ... Y846 17,962,435 Y847 34,955 Y848 49,506 Y849 56,103 1.c.
d. Firm short positions involving level 2B liquid assets or non-HQLA ........ Y850 0 Y851 0 Y852 0 Y853 0 1.d.
e. Total first tier short-term wholesale funding (sum of items 1.a through 1.d).. Y854 19,394,061 Y855 469,025 Y856 821,359 Y857 3,435,363 1.e.
2. Second tier:
a. Funding secured by level 2A liquid assets ....................................... Y858 3,987,222 Y859 38,759 Y860 17,034 Y861 16,481 2.a.
b. Covered asset exchanges (level 1 to level 2A) ................................. Y862 0 Y863 0 Y864 0 Y865 0 2.b.
c. Total second tier short-term wholesale funding (sum of items 2.a. and 2.b).. Y866 3,987,222 Y867 38,759 Y868 17,034 Y869 16,481 2.c.
3. Third tier:
a. Funding secured by level 2B liquid assets ....................................... Y870 0 Y871 0 Y872 0 Y873 0 3.a.
b. Other covered asset exchanges .................................................... Y874 0 Y875 0 Y876 0 Y877 0 3.b.
c. Unsecured wholesale funding obtained within the financial sector ........ Y878 2,974,353 Y879 433,760 Y880 691,550 Y881 1,769,719 3.c.
d. Total third tier short-term wholesale funding (sum of items 3.a through 3.c).. Y882 2,974,353 Y883 433,760 Y884 691,550 Y885 1,769,719 3.d.
4. All other components of short-term wholesale funding........................... Y886 196,264 Y887 348,492 Y888 426,472 Y889 2,093,952 4.
5. Total short-term wholesale funding, by maturity
(weighted sum of items 1.e, 2.c, 3.d, and 4) ........................................ Y890 9,269,155 Y891 534,841 Y892 387,827 Y893 700,460 5.

U.S. Dollar Amounts in Thousands RISK Amount

6. Total short-term wholesale funding (sum of item 5, Columns A through D) ................................................................................................ Y894 10,892,283 6.
7. Average risk-weighted assets .......................................................................................................................................................... Y895 361,965,107 7.

RISK Percentage
8. Short-term wholesale funding metric (item 6 divided by item 7) ............................................................................................................... Y896 3.01 8.

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Schedule H—FBO Size Indicator

(Column A) (Column B)
U.S. Intermediate Combined U.S.
Holding Company Operations
U.S. Dollar Amounts in Thousands RISI Amount RISO Amount
Total Exposures
1. Derivative exposures:
a. Current exposure of derivative contracts ......................................... M337 M337 1.a.
b. Potential future exposure (PFE) of derivative contracts ...................... M339 M339 1.b.
c. Gross-up for derivatives collateral.................................................. Y822 Y822 1.c.
d. Effective notional amount of written credit derivatives ........................ M340 M340 1.d.
e. Cash variation margin included as an on-balance sheet receivable ...... Y823 Y823 1.e.
f. Exempted central counterparty legs of client-cleared transactions included in
items 1(a) and 1(b) ....................................................................... Y824 Y824 1.f.
g. Effective notional amount offsets and PFE adjustments for sold
credit protection ......................................................................... Y825 Y825 1.g.
h. Total derivative exposures (sum of items 1.a. through 1.d, minus the
sum of items 1.e through 1.g) ....................................................... Y826 Y826 1.h.
2. Securities financing transaction (SFT) exposures:
a. Gross SFT assets ...................................................................... M334 M334 2.a.
b. Counterparty credit risk exposure for SFTs ...................................... N507 N507 2.b.
c. SFT indemnification and other agent-related exposures ..................... Y827 Y827 2.c.
d. Gross value of offsetting cash payables .......................................... Y828 Y828 2.d.
e. Total SFT exposures (sum of items 2.a through 2.c, minus item 2.d) ..... Y829 Y829 2.e.
3. Other on-balance sheet exposures:
a. Other on-balance sheet assets ..................................................... Y830 Y830 3.a.
b. Regulatory adjustments............................................................... M349 M349 3.b.
4. Other off-balance sheet exposures:
a. Gross notional amount of items subject to a 0% credit conversion 4.a.
factor (CCF).............................................................................. M342 M342
b. Gross notional amount of items subject to a 20% CCF....................... M718 M718 4.b.
c. Gross notional amount of items subject to a 50% CCF....................... M346 M346 4.c.
d. Gross notional amount of items subject to a 100% CCF ..................... M347 M347 4.d.
e. Credit exposure equivalent of other off-balance sheet items (sum of 0.1
times item 4.a, 0.2 times item 4.b, 0.5 times item 4.c, and item 4.d) ...... Y831 Y831 4.e.
5. Total exposures prior to regulatory deductions (sum of items 1.h, 2.e, 3.a,
and 4.e) ...................................................................................... Y832 Y832 5.

6. Does item 5 represent an average value over the reporting period? 0=No RISI 0=No RISO
(Enter "1" for Yes; enter "0" for No.)............................................................. 1=Yes FC52 1=Yes FC52 6.

(Column A) (Column B)
U.S. Intermediate Combined U.S.
Memoranda Holding Company Operations
U.S. Dollar Amounts in Thousands RISI Amount RISO Amount
1. Securities received as collateral in securities lending ............................ M335 M335 M.1.
2. Cash collateral received in conduit securities lending transactions ........... M336 M336 M.2.
3. Credit derivatives sold net of related credit protection bought ................. M341 M341 M.3.
4. Total assets ................................................................................. 2170 2170 M.4.
5. Total off-balance sheet exposures (item 5 minus M.4.) .......................... KW01 KW01 M.5.
6. Total nonbank assets. .................................................................... KY47 KY47 M.6.

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Schedule I—FBO Interconnectedness Indicators

(Column A) (Column B)
U.S. Intermediate Combined U.S.
Holding Company Operations
U.S. Dollar Amounts in Thousands RISI Amount RISO Amount
Intra-Financial System Assets
1. Funds deposited with or lent to other financial institutions ...................... M351 M351 1.
a. Certificates of deposit ................................................................. M355 M355 1.a.
2. Unused portion of committed lines extended to other financial institutions .. J458 J458 2.
3. Holdings of securities issued by other financial institutions:
a. Secured debt securities ............................................................... M352 M352 3.a.
b. Senior unsecured debt securities .................................................. M353 M353 3.b.
c. Subordinated debt securities ........................................................ M354 M354 3.c.
d. Commercial paper...................................................................... M345 M345 3.d.
e. Equity securities ........................................................................ M356 M356 3.e.
f. Offsetting short positions in relation to the specific equity securities
included in item 3.e .................................................................... M357 M357 3.f.
4. Net positive current exposure of securities financing transactions (SFTs) with
other financial institutions.................................................................. M358 M358 4.
5. Over-the-counter (OTC) derivative contracts with other financial
institutions that have a net positive fair value:
a. Net positive fair value ................................................................. M359 M359 5.a.
b. Potential future exposure ............................................................. M360 M360 5.b.
6. Total intra-financial system assets (sum of items 1, 2 through 3.e, 4, 5.a,
and 5.b, minus item 3.f) .................................................................. M362 M362 6.
Intra-Financial System Liabilities
7. Deposits due to other financial institutions:
a. Deposits due to depository institutions............................................ M363 M363 7.a.
b. Deposits due to non-depository financial institutions .......................... M364 M364 7.b.
8. Borrowings obtained from other financial institutions ............................. Y833 Y833 8.
9. Unused portion of committed lines obtained from other financial institutions... M365 M365 9.
10. Net negative current exposure of SFTs with other financial institutions ..... M366 M366 10.
11. OTC derivative contracts with other financial institutions that have a net
negative fair value:
a. Net negative fair value ................................................................. M367 M367 11.a.
b. Potential future exposure ............................................................. M368 M368 11.b.
12. Total intra-financial system liabilities (sum of items 7.a through 11.b) ....... M370 M370 12.
Securities Outstanding
13. Secured debt securities .................................................................. M371 M371 13.
14. Senior unsecured debt securities ...................................................... M372 M372 14.
15. Subordinated debt securities ........................................................... M373 M373 15.
16. Commercial paper ......................................................................... 2309 2309 16.
17. Certificates of deposit..................................................................... M374 M374 17.
18. Common equity ............................................................................ M375 M375 18.
19. Preferred shares and other forms of subordinated funding not captured in
item 15........................................................................................ N509 N509 19.
20. Total securities outstanding (sum of items 13 through 19) ...................... M376 M376 20.

Memoranda
U.S. Dollar Amounts in Thousands RISI Amount RISO Amount
1. Standby letters of credit extended to other financial institutions ................ Y834 Y834 M.1.

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Schedule J—FBO Substitutability Indicators

(Column A) (Column B)
U.S. Intermediate Combined U.S.
Holding Company Operations
U.S. Dollar Amounts in Thousands RISI Amount RISO Amount
Payments Activity
1. Payments made in the last four quarters:
a. Australian dollars (AUD) .............................................................. M377 M377 1.a.
b. Brazilian real (BRL) .................................................................... M378 M378 1.b.
c. Canadian dollars (CAD) .............................................................. M379 M379 1.c.
d. Swiss francs (CHF) .................................................................... M380 M380 1.d.
e. Chinese yuan (CNY)................................................................... M381 M381 1.e.
f. Euros (EUR) ............................................................................. M382 M382 1.f.
g. British pounds (GBP) .................................................................. M383 M383 1.g.
h. Hong Kong dollars (HKD) ............................................................ M384 M384 1.h.
i. Indian rupee (INR)...................................................................... M385 M385 1.i.
j. Japanese yen (JPY) ................................................................... M386 M386 1.j.
k. Mexican pesos (MXN) .................................................................. Y835 Y835 1.k.
l. Swedish krona (SEK).................................................................. M387 M387 1.l.
m. United States dollars (USD) ......................................................... M388 M388 1.m.
2. Payments activity (sum of items 1.a through 1.m) ................................ M390 M390 2.
Assets Under Custody
3. Assets held as a custodian on behalf of customers............................... M405 M405 3.
Underwritten Transactions in Debt and Equity Markets
4. Equity underwriting activity .............................................................. M406 M406 4.
5. Debt underwriting activity ................................................................ M407 M407 5.
6. Total underwriting activity (sum of items 4 and 5) ................................. M408 M408 6.

Memoranda
U.S. Dollar Amounts in Thousands RISI Amount RISO Amount
1. New Zealand dollars (NZD).............................................................. Y836 Y836 M.1.
2. Russian rubles (RUB) ..................................................................... Y837 Y837 M.2.
3. Payments made in the last four quarters in all other currencies ................ M389 M389 M.3.
4. Unsecured settlement/clearing lines provided ...................................... M436 M436 M.4.
5. Securities traded in the last four quarters: M.5.
a. Securities issued by public sector entities ....................................... KW46 KW46 M.5.a.
b. Other fixed income securities ....................................................... KW48 KW48 M.5.b.
c. Listed equities ........................................................................... KW50 KW50 M.5.c.
d. Other securities ......................................................................... KW52 KW52 M.5.d.
6. Trading volume - fixed income (sum of items M.5.a and M.5.b) ............... MV93 MV93 M.6.
7. Trading volume - equities and other securities
(sum of items M.5.c and M.5.d) ........................................................ MV95 MV95 M.7.

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Schedule K—FBO Complexity Indicators

(Column A) (Column B)
U.S. Intermediate Combined U.S.
Holding Company Operations
U.S. Dollar Amounts in Thousands RISI Amount RISO Amount
Notional Amount of Over-the-Counter (OTC) Derivative Contracts
1. OTC derivative contracts cleared through a central counterparty ............. M409 M409 1.
2. OTC derivative contracts settled bilaterally ......................................... M410 M410 2.
3. Total notional amount of OTC derivative contracts (sum of items 1 and 2).. M411 M411 3.
Trading and Available-for-Sale (AFS) Securities
4. Trading securities .......................................................................... M412 M412 4.
5. AFS securities .............................................................................. 1773 1773 5.
6. Equity securities with readily determinable fair values not held
for trading ................................................................................... JA22 JA22 6.
7. Total trading, AFS and equity securities with readily determinable fair
values not held for trading (sum of items 4, 5, and 6) ............................ M414 M414 7.
8. Trading, AFS and equity securities with readily determinable fair values
not held for trading that meet the definition of level 1 liquid assets ........... N510 N510 8.
9. Trading, AFS and equity securities with readily determinable fair values
not held for trading that meet the definition of level 2 liquid assets,
with haircuts ................................................................................ N511 N511 9.
10. Total adjusted trading, AFS and equity securities with readily determinable
fair values not held for trading (item 7 minus items 8 and 9) ................... N255 N255 10.
Level 3 Assets
11. Assets valued for accounting purposes using Level 3
measurement inputs ...................................................................... G506 G506 11.

Memoranda
U.S. Dollar Amounts in Thousands RISI Amount RISO Amount
1. Held-to-maturity securities ............................................................... 1754 1754 M.1.

Schedule L—FBO Cross-Jurisdictional Activity Indicators

(Column A) (Column B)
U.S. Intermediate Combined U.S.
Holding Company Operations
U.S. Dollar Amounts in Thousands RISI Amount RISO Amount
Cross-Jurisdictional Claims
1. Foreign claims on an ultimate-risk basis ............................................. M422 M422 1.
a. Adjusted foreign claims on an ultimate-risk basis .............................. LA95 LA95 1.a.
Cross-Jurisdictional Liabilities
2. Foreign liabilities (excluding local liabilities in local currency) .................. M423 M423 2.
a. Any foreign liabilities to foreign offices included in item 2.................... M424 M424 2.a.
3. Local liabilities in local currency........................................................ M425 M425 3.
4. Total cross-jurisdictional liabilities (sum of items 2 and 3, minus item 2.a) .. M426 M426 4.
5. Cross-jurisdictional activity (sum of items 1(a) and 4) ............................ KY49 KY49 5.

Memoranda
U.S. Dollar Amounts in Thousands RISI Amount RISO Amount
1. Foreign derivative claims on an ultimate-risk basis ................................ KW54 KW54 M.1.
2. Total cross-jurisdictional claims (sum of items 1 and M.1) ....................... KW55 KW55 M.2.
3. Foreign derivative liabilities on an immediate-counterparty basis .............. KW56 KW56 M.3.
4. Consolidated foreign liabilities on an immediate-counterparty basis
excluding derivative liabilities ........................................................... KW57 KW57 M.4.
5. Total cross-jurisdictional liabilities, including derivatives (sum of
items M.3 and M.4) ........................................................................ KY50 KY50 M.5.
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Schedule M—FBO Ancillary Indicators

(Column A) (Column B)
U.S. Intermediate Combined U.S.
Holding Company Operations
U.S. Dollar Amounts in Thousands RISI Amount RISO Amount
Ancillary Indicators
1. Total liabilities............................................................................... 2948 2948 1.
2. Retail funding ............................................................................... M427 M427 2.
3. Total gross revenue ....................................................................... M430 M430 3.
4. Total net revenue .......................................................................... M428 M428 4.
5. Foreign net revenue....................................................................... M429 M429 5.
6. Gross value of cash provided and gross fair value of securities provided in
securities financing transactions (SFTs) ............................................. M432 M432 6.
7. Gross value of cash received and gross fair value of securities
received in SFTs ........................................................................... M433 M433 7.
8. Gross positive fair value of over-the-counter (OTC) derivative contracts ... M434 M434 8.
9. Gross negative fair value of OTC derivative contracts ........................... M435 M435 9.

Number in Single Units RISI RISO

10. Number of jurisdictions ................................................................................... M437 M437 10.

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Schedule N—FBO Short-Term Wholesale Funding Indicator

Part I

Remaining Maturity of 30 Days or Less Remaining Maturity of 31 to 90 Days

(Column A) (Column B) (Column C) (Column D)
U.S. Dollar Amounts in Thousands RISI Amount RISO Amount RISI Amount RISO Amount
Short-term Wholesale Funding
1. First tier:
a. Funding secured by level 1 liquid assets ......................................... Y838 Y838 Y839 Y839 1.a.
b. Retail brokered deposits and sweeps ............................................. Y842 Y842 Y843 Y843 1.b.
c. Unsecured wholesale funding obtained outside of the financial sector ... Y846 Y846 Y847 Y847 1.c.
d. Firm short positions involving level 2B liquid assets or non-HQLA ........ Y850 Y850 Y851 Y851 1.d.
e. Total first tier short-term wholesale funding (sum of items 1.a through 1.d).. Y854 Y854 Y855 Y855 1.e.
2. Second tier:
a. Funding secured by level 2A liquid assets ....................................... Y858 Y858 Y859 Y859 2.a.
b. Covered asset exchanges (level 1 to level 2A) ................................. Y862 Y862 Y863 Y863 2.b.
c. Total second tier short-term wholesale funding (sum of items 2.a. and 2.b).. Y866 Y866 Y867 Y867 2.c.
3. Third tier:
a. Funding secured by level 2B liquid assets ....................................... Y870 Y870 Y871 Y871 3.a.
b. Other covered asset exchanges .................................................... Y874 Y874 Y875 Y875 3.b.
c. Unsecured wholesale funding obtained within the financial sector ........ Y878 Y878 Y879 Y879 3.c.
d. Total third tier short-term wholesale funding (sum of items 3.a through 3.c).. Y882 Y882 Y883 Y883 3.d.
4. All other components of short-term wholesale funding........................... Y886 Y886 Y887 Y887 4.
5. Total short-term wholesale funding, by maturity
(weighted sum of items 1.e, 2.c, 3.d, and 4) ........................................ Y890 Y890 Y891 Y891 5.

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Schedule N—Continued

Part II

Remaining Maturity of 91 to 180 Days Remaining Maturity of 181 to 365 Days

(Column E) (Column F) (Column G) (Column H)
U.S. Dollar Amounts in Thousands RISI Amount RISO Amount RISI Amount RISO Amount
Short-term Wholesale Funding
1. First tier:
a. Funding secured by level 1 liquid assets ......................................... Y840 Y840 Y841 Y841 1.a.
b. Retail brokered deposits and sweeps ............................................. Y844 Y844 Y845 Y845 1.b.
c. Unsecured wholesale funding obtained outside of the financial sector ... Y848 Y848 Y849 Y849 1.c.
d. Firm short positions involving level 2B liquid assets or non-HQLA ........ Y852 Y852 Y853 Y853 1.d.
e. Total first tier short-term wholesale funding (sum of items 1.a through 1.d).. Y856 Y856 Y857 Y857 1.e.
2. Second tier:
a. Funding secured by level 2A liquid assets ....................................... Y860 Y860 Y861 Y861 2.a.
b. Covered asset exchanges (level 1 to level 2A) ................................. Y864 Y864 Y865 Y865 2.b.
c. Total second tier short-term wholesale funding (sum of items 2.a. and 2.b).. Y868 Y868 Y869 Y869 2.c.
3. Third tier:
a. Funding secured by level 2B liquid assets ....................................... Y872 Y872 Y873 Y873 3.a.
b. Other covered asset exchanges .................................................... Y876 Y876 Y877 Y877 3.b.
c. Unsecured wholesale funding obtained within the financial sector ........ Y880 Y880 Y881 Y881 3.c.
d. Total third tier short-term wholesale funding (sum of items 3.a through 3.c).. Y884 Y884 Y885 Y885 3.d.
4. All other components of short-term wholesale funding........................... Y888 Y888 Y889 Y889 4.
5. Total short-term wholesale funding, by maturity
(weighted sum of items 1.e, 2.c, 3.d, and 4) ........................................ Y892 Y892 Y893 Y893 5.

(Column A) (Column B)
U.S. Dollar Amounts in Thousands RISI Amount RISO Amount
6. Total short-term wholesale funding (Column A: sum of A, C, E, and G in item 5; Column B: sum of B, D, F, and H in item 5) .. Y894 Y894 6.
7. Average risk-weighted assets .......................................................................................................................... Y895 Y895 7.

RISI Percentage RISO Percentage

8. Short-term wholesale funding metric (item 6 divided by item 7) ............................................................................... Y896 Y896 8.

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Last Update: 20240221.174513 RSSD ID: 2277860
FR Y-15
Page 14 of 14

Optional Narrative Statement

The management of the reporting banking organization has the 750 characters with no notice to the respondent. Other than the
option to submit a public statement regarding the values reported truncation of statements exceeding the character limit, the state-
on the FR Y-15. The statement must not contain any confidential ment will appear on agency computerized records and in
information that would compromise customer privacy or that the releases to the public exactly as submitted. Public disclosure of
respondent is not willing to have made public. Furthermore, the the statement shall not signify that a federal supervisory agency
information in the narrative statement must be accurate and must has verified the accuracy or relevance of the information con-
not be misleading. tained therein.
The statement may not exceed 750 characters, including punctu- If the respondent elects not to make a statement, the item should
ation, indentation, and standard spacing between words and sen- be left blank (i.e., do not enter phrases such as "No statement,"
tences. Statements exceeding this limit will be truncated at "Not applicable," "N/A," "No comment," or "None").

RISK
1. Narrative statement ....................... 6980 1.

06/2020
 (;+,%,7

Discover Financial Services

Banking Organization Systemic Risk Report—FR Y-15
12/31/2023 12/31/2023

U.S. Dollar Amounts in Thousands

Schedule A—Size Indicator

U.S. Dollar Amounts in Thousands
Total Exposures
1. Derivative exposures:
a. Current exposure of derivative contracts M337 4,184 1.a
b. Potential future exposure (PFE) of derivative contracts M339 291 1.b
c. Gross-up for derivatives collateral Y822 - 1.c
d. Effective notional amount of written credit derivatives M340 - 1.d
e. Cash variation margin included as an on-balance sheet receivable Y823 - 1.e
f. Exempted central counterparty legs of client-cleared transactions included i Y824 - 1.f
g. Effective notional amount offsets and PFE adjustments for sold credit proteY825 - 1.g
h. Total derivative exposures (sum of items 1.a. through 1.d, minus the sum of Y826 4,475 1.h
2. Securities financing transaction (SFT) exposures:
a Gross value of SFTs M334 - 2.a
b Counterparty credit risk exposure for SFTs N507 - 2.b
c SFT indemnification and other agent-related exposures Y827 - 2.c
d Gross value of offsetting cash payables Y828 - 2.d
e Total SFT exposures (sum of items 2.a through 2.c, minus item 2.d) Y829 - 2.e
3. Other on-balance sheet exposures:
a. Other on-balance sheet assets Y830 151,518,188 3.a
b. Regulatory adjustments M349 30,320 3.b
4. Other off-balance sheet exposures:
a. Gross notional amount of items subject to a 0% credit conversion factor (CCM342 229,103,182 4.a
b Gross notional amount of items subject to a 20% CCF M718 636,630 4.b
c Gross notional amount of items subject to a 50% CCF M346 42,247 4.c
d Gross notional amount of items subject to a 100% CCF M347 - 4.d
e. Credit exposure equivalent of other off-balance sheet items...sum of (0.1 Y831 23,058,768 4.e
5. Total exposures prior to regulatory deductions (sum of items 1.h, 2.e, 3.a, and 4.e) Y832 174,581,431 5

FRY-15
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 RISK
6. Does item 5 represent an average value over the reporting period? (Enter "1" for Yes; enter "0" for No.) FC52 0 10

Memoranda
U.S. Dollar Amounts in Thousands
1. Securities received as collateral in securities lending M335 - M.1
2. Cash collateral received in conduit securities lending transactions M336 - M.2
3. Credit derivatives sold net of related credit protection bought M341 - M.3
4. Total consolidated assets 2170 147,065,362 M.4
5. Total off-balance sheet exposures (item 5 minus M.4.) KW01 27,516,069 M.5
6. Total nonbank assets. KY47 3,887,065 M.6

Schedule B - Interconnectedness Indicators

U.S. Dollar Amounts in Thousands
Intra-Financial System Assets
1. Funds deposited with or lent to other financial institutions M351 3,256,997 1.
a. Certificates of deposit M355 500 1.a
2. Unused portion of committed lines extended to other financial institutions J458 35,075 2.
3. Holdings of securities issued by other financial institutions:
a. Secured debt securities M352 - 3.a
b. Senior unsecured debt securities M353 - 3.b
c. Subordinated debt securities M354 - 3.c
d. Commercial paper M345 - 3.d
e. Equity securities M356 43,241 3.e
f. Offsetting short positions in relation to the specific stock holdings included M357 - 3.f
4. Net positive current exposure of securities financing transactions (SFTs) with unaffiliated financial
institutions M358 - 4.
5. Over-the-counter (OTC) derivatives with other financial institutions that have a net positive fair value:
a. Net positive fair value M359 4,184 5.a
b. Potential future exposure M360 43 5.b
6. Total intra-financial system assets (sum of items 1, 2 through 3.e, 4, 5.a, and 5.b, minus 3.f) M362 3,339,540 6.

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Intra-Financial System Liabilities
7. Deposits due to other financial institutions:
a. Deposits due to depository institutions M363 51 7.a
b. Deposits due to non-depository financial institutions M364 - 7.b
8. Borrowings obtained from other financial institutions Y833 750,000 8
9. Unused portion of committed lines obtained from other financial institutions M365 2,750,000 9
10. Net negative current exposure of SFTs with other financial institutions M366 - 10
11. OTC derivatives with unaffiliated financial institutions that have a net negative fair value:
a. Net negative fair value M367 687 11.a
b. Potential future exposure M368 248 11.b
12. Total intra-financial system liabilities (sum of items 7.a through 11.b) M370 3,500,986 12

Securities outstanding
13. Secured debt securities M371 10,993,195 13
14. Senior unsecured debt securities M372 8,039,328 14
15. Subordinated debt securities M373 500,000 15
16. Commercial paper 2309 - 16
17. Certificates of deposit M374 45,240,239 17
18. Common Equity M375 28,111,561 18
19. Preferred shares and other forms of subordinated funding not captured in item 13 N509 - 19
20. Total securities outstanding (sum of items 13 through 19) M376 92,884,323 20

Memoranda
U.S. Dollar Amounts in Thousands
1. Standby letters of credit extended to other financial institutions Y834 - M.1

Schedule C—Substitutability Indicators

U.S. Dollar Amounts in Thousands
Payments Activity
1. Payments made in the last four quarters:
AUD a. Australian dollars (AUD) M377 67,004 1.a
BRL b. Brazilian real (BRL) M378 - 1.b
CAD c. Canadian dollars (CAD) M379 60,276 1.c
CHF d. Swiss francs (CHF) M380 20,376 1.d

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CNY e. Chinese yuan (CNY) M381 22,129 1.e
EUR f. Euros (EUR) M382 379,696 1.f
GBP g. British pounds (GBP) M383 275,952 1.g
HKD h. Hong Kong dollars (HKD) M384 321 1.h
INR i. Indian rupee (INR) M385 9,703 1.i
JPY j. Japanese yen (JPY) M386 127,230 1.j
MXN k. Mexican pesos (MXN) Y835 - 1.k
SEK l. Swedish krona (SEK) M387 100,960 1.l
USD m. United States dollars (USD) M388 532,091,330 1.m
2. Payments activity (sum of items 1.a through 1.l) M390 533,154,977 2.

Assets Under Custody

3. Assets held as a custodian on behalf of customers M405 - 3.
Underwritten Transactions in Debt and Equity Markets
4. Equity underwriting activity M406 - 4.
5. Debt underwriting activity M407 - 5.
6. Total underwriting activity (sum of items 4 and 5) M408 - 6.

Memoranda
U.S. Dollar Amounts in Thousands
NZD 1. New Zealand dollars (NZD) Y836 211 M.1
RUB 2. Russian rubles (RUB) Y837 - M.2
Other 3. Payments made in the last four quarters in all other currencies Y839 263,781 M.3
4. Unsecured settlement/clearing lines provided M436 - M.4
5. Securities traded in the last four quarters: M.5
a. Securities issued by public sector entities KW46 12,564 M.5.a
b. Other fixed income securities KW48 5,630,236 M.5.b
c. Listed equities KW50 41,169 M.5.c
d. Other securities KW52 - M.5.d
6. Trading volume - fixed income (sum of items M.5.a and M.5.b) MV93 5,642,800 M.6
7. Trading volume - Equities and securities (sum of items M.5.c and M.5.d) MV95 41,169 M.7

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Schedule D—Complexity Indicators
U.S. Dollar Amounts in Thousands
Notional Amount of Over-the-Counter (OTC) Derivative Contracts
1. OTC derivative contracts cleared through a central counterparty M409 19,300,000 1.
2. OTC derivative contracts settled bilaterally M410 64,139 2.
3. Total notional amount of OTC derivatives (sum of items 1 and 2) M411 19,364,139 3.

Trading and Available-for-Sale (AFS) Securities

4. Trading Securities M412 - 4.
5. AFS securities 1773 13,401,243 5.
6. Equity securities with readily determinable fair values not held for trading JA22 44,125 6
7. Total trading and AFS and equity securities (sum of items 4, 5 and 6) M414 13,445,368 7
8. Trading , AFS securities and equity securities with readily determinable fair values not held for trading that N510 12,948,678 8
9. Trading , AFS securities and equity securities with readily determinable fair values not held for trading that N511 384,680 9
10. Trading , AFS securities and equity securities with readily determinable fair values not held for trading N255 112,010 10
Level 3 Assets
11. Assets valued for accounting purposes using Level 3 measurement inputs G506 - 11
Memoranda
U.S. Dollar Amounts in Thousands
1. Held-to-maturity securities 1754 252,642 M.1

Schedule E—Cross-Jurisdictional Activity Indicators

U.S. Dollar Amounts in Thousands
Cross-Jurisdictional Claims
1.Foreign claims on an ultimate risk basis M422 89,000 1.

Cross-Jurisdictional Liabilities
2. Foreign liabilities (excluding local liabilities in local currency) M423 - 2.
a. Any foreign liabilities to related offices included in item 2 M424 - 2.a
3. Local liabilities in local currency M425 34,000 3.
4. Total cross-jurisdictional liabilities (sum of items 2 and 3, minus item 2.a.) M426 34,000 4.
5. Cross-jurisdictional activity (sum of items 1 and 4) KY49 123,000 5
Memoranda
1. Foreign derivative claims on an ultimate-risk basis KW54 -
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2. Total cross-jurisdictional clams( sum of items 1 and M.1 ) KW55 89,000
3. Foreign derivative liabilities on an immediate-counterparty basis KW56 -
4 Consolidated foreign liabilities on an immediate counterparty basis, excluding derivative liabilities. KW57 -
5. Total cross jurisdictional liabilities, including derivatives (sum of items M.3 and M.4). KW50 -

Schedule F—Ancillary Indicators

U.S. Dollar Amounts in Thousands
Ancillary Indicators
1. Total liabilities 2948 136,694,461 1.
2. Retail funding M427 84,338,860 2.
3. Total gross revenue M430 20,570,396 3
4. Total net revenue M428 15,916,046 4
5. Foreign net revenue M429 664 5
6. Gross value of cash provided and gross fair value of securities provided in securities financing transactions (SFM432 - 6
7. Gross value of cash received and gross fair value of securities received in SFTs M433 - 7
8. Gross positive fair value of over-the-counter (OTC) derivatives transactions M434 4,184 8
9. Gross negative fair value of OTC derivatives transactions M435 687 9

Number in Single Units

10. Number of jurisdictions M437 13 10

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Schedule G—Short-term Wholesale Funding Indicator
4Q 2023 (Column A) (Column B) (Column C) (Column D)
Remaing Maturity of 30 Remaing Maturity of 31 Remaing Maturity of 91 Remaing Maturity of 181
days or less to 90 days to 180 days to 365 days
U.S. Dollar Amounts in Thousands RISK Amount RISK Amount RISK Amount RISK Amount
Short-Term Wholesale Funding
1. First tier:
a. Funding secured by level 1 liquid assets………………………………Y838 - Y838 - Y838 - Y841 - 1.a.
b. Retail brokered deposits and sweeps………………………………… Y842 3,876,906 Y842 1,146,160 Y842 1,696,846 Y845 3,000,037 1.b.
c. Unsecured wholesale funding obtained outside of the Y846 - Y846 - Y846 - Y849 - 1.c.
Firm short positions involving level 2B liquid assets or non-
d. Y850 - Y850 - Y850 - Y853 - 1.d.
HQLA
e. Total first tier short-term wholesale funding (sum of items 1.a Y854 3,876,906 Y854 1,146,160 Y854 1,696,846 Y857 3,000,037 1.e.
2. Second tier:
a. Funding secured by level 2A liquid Y858 - Y858 - Y858 - Y861 - 2.a.
b. Covered asset exchanges (level 1 to level Y862 - Y862 - Y862 - Y865 - 2.b.
c. Total second tier short-term wholesale funding (sum of items Y866 - Y866 - Y866 - Y869 - 2.c.
3. Third tier:
a. Funding secured by level 2B liquid assets…………………………… Y870 - Y870 - Y870 - Y873 - 3.a.
b. Other covered asset Y874 - Y874 - Y874 - Y877 - 3.b.
c. Unsecured wholesale funding obtained within the financial Y878 151,092 Y878 168,851 Y878 253,121 Y881 420,010 3.c.
d. Total third tier short-term wholesale funding (sum of items 3.a Y882 151,092 Y882 168,851 Y882 253,121 Y885 420,010 3.d.
4. All other components of short-term wholesale funding…………………………… Y886 166,667 Y886 200,000 Y886 383,333 Y889 1,358,333 4.
5. Total short-term wholesale funding, by maturity. (weighted sum of items Y890 1,249,213 Y890 349,042 Y890 254,947 Y893 381,584 5.

U.S. Dollar Amounts in Thousands RISK Amount

6. Total short-term wholesale funding (sum of item 5, Columns A through Y894 2,234,786 6.
7. Average risk-weighted assets……………………………………………………………………………………………………………………………………………………………… Y895 123,387,727 7.

RISK Percentange
8. Short-term wholesale funding metric (item 6 divided by item Y896 1.81% 8.

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 (;+,%,7

Additional Information on Community Development Lending and Investing Activities

A. New York CSA

Provided more than $58 million in financing, including a loan of $32.9 million and a
LIHTC equity investment of $25.2 million, to help finance the new construction of a 105-unit
senior affordable housing development in the Bronx. A majority of units (104 out of 105) will be
restricted to LMI seniors earning up to 50% and 60% of AMI (18 and 86 units, respectively) and
supported by project-based Section 8 vouchers; there will be one manager’s unit. Thirty-two
units will be set aside for formerly homeless seniors and supported by New York City project-
based rental assistance. In addition to providing financing for the property’s construction, CONA
also contributed a $150,000 grant to fund resident services. The nonprofit developer, which has a
longstanding history of serving LMI seniors, will provide services to residents including, but not
limited to, case management, services coordination, crisis intervention, counseling, and
nutritional services. In addition to funding from CONA, this complex project involved
significant public financing, including over $20 million from city and state-wide entities such as
New York City’s Department of Housing Preservation and Development and New York State’s
Homeless Housing and Assistance Program. This development provides much-needed affordable
housing coupled with supportive services for LMI seniors, including the formerly homeless, in a
market with a very high cost of living.

Provided $12.5 million to convert a construction loan on an affordable housing property

in Essex County to permanent financing. The property contains 96 units, including 69 units
reserved for LMI seniors earning up to 30%, 60%, and 80% of AMI (11, 49, and 9 units,
respectively). There are also 26 unrestricted units and one manager’s unit. The property is
subject to agreements with three government agencies and a charitable organization.
Collectively, these agreements require that four units be reserved for those with developmental
disabilities, and another five units be reserved for formerly homeless residents. These nine
special-needs units receive rental assistance. CONA’s financing addresses a pressing need for
affordable housing in Northern New Jersey, illustrated by the fact that the vacancy rate is 1.6%
for affordable units but 7% for the broader rental market.

In 2022 and 2023, CONA provided LIHTC equity investments totaling $58.9 million to
help finance the new construction of a 218-unit affordable housing property on Long Island. This
residential property is one of five buildings included in a larger development community
intended to revitalize the local area by providing housing, a transportation hub, retail storefronts
and public spaces. CONA also financed two other buildings located within the same
development community in 2013, demonstrating CONA’s ongoing commitment. Almost all units
(217 out of 218) will be restricted to LMI households earning up to 30%, 50%, 60% and 80% of
AMI (38, 32, 78 and 69 units, respectively); there is one manager’s unit. Seven units will be
reserved for tenants with intellectual or developmental disabilities (IDD) and supported by
subsidies from Suffolk County. Eight units will be supported by project-based HUD contracts. A
nonprofit organization with a longstanding history of supporting individuals with IDD will
provide services to the residents of the seven units set aside for persons with disabilities. These
services will include skills development and habilitation services such as socialization,
recreation, problem solving, personal development, activities of daily living, travel training,
health care, and medication maintenance. In addition to funding from CONA, this complex
transaction involved financing from the New York State Housing Finance Agency, a HOME
Loan from the Town of Babylon, and an infrastructure development loan from Suffolk County.
This development will provide much-needed affordable housing for LMI households, including
tenants with intellectual or developmental disabilities, and help to revitalize an economically
distressed community.

Provided over $101 million in financing, including a $55.6 million LIHTC equity
investment and a $46 million participation in a letter of credit, for the construction of a 236-unit
affordable housing development in Brooklyn. CONA was the lead bank in the letter of credit
participation, and has a 51% interest in the participation with another major bank having 49%.
Of the 236 total units, 12 units are reserved for households earning up to 30% of AMI, 65 for
households earning up to 40%, 131 for up to 60%, and 27 for up to 80%. One unit is reserved for
the property’s superintendent. Project-based subsidies will be provided for 142 units to serve as
supportive housing for chronically homeless adults and families experiencing mental illness or
substance abuse disorders. All residents will have access to complimentary services including
on-site case management, behavioral health counseling, benefits assistance, job placement
services, and life-skills classes. Residents will also receive high-speed broadband internet service
at no cost. The development involves a Voluntary Brownfield Cleanup Agreement, which will
turn contaminated land into productive and usable space. A solar-powered electricity generating
facility will be installed on the roof, providing renewable, cost-effective energy to residents, and
allowing for the generation of energy tax credits. Other financing sources for this complex
transaction include loans and bonds from the New York State Housing Finance Agency, and
loans from the New York State Energy Research and Development Authority and the New York
City Department of Housing Preservation and Development. In addition, CONA demonstrated
leadership by being the lead bank in the letter of credit participation, which also led to an
additional $30 million equity investment by the other bank. This large and complex transaction
addresses the need for affordable housing, with supportive services for residents, in a very high-
cost market.

In 2021, CONA provided two loans totaling $17 million to the New York chapter of a
national nonprofit organization that offers social services to LMI individuals. For example, it
provides assistance for the homeless, families recovering from domestic violence, veterans, the
elderly, at-risk youth, and those with intellectual and/or developmental disabilities. One of the
loans, a $7 million line of credit, provided working capital and bridged the receipt of government
receivables benefiting LMI populations in the AA. The other loan, for $10 million, was PPP
financing to help stabilize the organization during the COVID-19 pandemic. In 2023, CONA
increased the line of credit from $7 million to $10 million. In addition, in 2022 and 2023, CONA
provided $20,000 in grants to support a financial education program and the organization’s
general operations. CONA’s efforts are part of a longstanding partnership between CONA and
the organization.

Provided a $5 million loan to a small business through the SBA 7(a) Loan Program. This
program is designed to help small businesses that are creditworthy but cannot qualify for a
conventional loan. The proceeds will refinance existing debt for a Queens company that provides
services to clean up and repair damages to residential and commercial properties due to water
damage, fires, mold, and natural disasters. CONA’s loan addresses the need for small business
financing.

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B. Philadelphia MMSA

Provided a construction loan in the amount of $10 million and an investment of $13.4
million in LIHTC equity for the new construction of a 46-unit mixed-use affordable housing
development in Philadelphia for LMI seniors (62+) with incomes up to 60% of AMI. All units
receive rent subsidies under a HUD contract, effectively limiting rents to 30% of tenant income.
Five of the units at the lowest income tier are set aside for formerly homeless individuals.
Supportive services include case management, health services and recreational activities. A
social worker works on-site with the residents to conduct geriatric assessments, create
comprehensive care plans, and provide referrals for additional care or services. The services are
designed to support residents’ ability to continue to live independently in the community of their
choosing. The ground floor commercial space is occupied by a nonprofit organization whose
mission is to serve those in the community impacted by violence. The organization provides an
array of social services including counseling and psychotherapy, conflict resolution,
neighborhood reconciliation and senior citizen lunches. The development is transit-oriented as it
is adjacent to a bus hub/subway station. This was a complex transaction. In addition to CONA’s
loan and LIHTC investment, there were five additional funding sources, including municipal
government and Federal Home Loan Bank funds and funding from various nonprofit
organizations. This development meets many identified community needs including increasing
the stock of decent, affordable housing for seniors and the homeless, increasing affordable
housing in low- poverty areas, the provision of social services that support a senior population,
housing for very low- income populations, and transit-based housing.

Provided a loan of $10 million and invested $10.6 million in LIHTC equity to finance the
rehabilitation of a 201-unit affordable housing development in Montgomery County. All 199
units for rent are reserved for LMI seniors (62+) and benefit from development-based Section 8
contracts. (There are also two manager units.) The development targets very low-, low- and
moderate- income seniors, with 10 units restricted to 20% AMI; 90 units restricted to 50% AMI;
and 99 units restricted to 60% AMI. The nonprofit developer provides supportive services that
enable residents to age in-place, such as counseling, education, and in-home services; and to
maintain health through screenings, fitness programs, and assistance in accessing health services.
Residents also benefit from close proximity to public transportation and neighborhood amenities
such as shopping centers. The development involved numerous sources of financing, including
private activity bonds from the Pennsylvania Housing Finance Agency and solar tax credits to
fund enhancements that will create energy efficiencies and reduce residents’ utility costs. This
complex development addresses rising housing-cost burdens facing seniors in a market where the
demand for affordable senior housing is expected to grow over the next five years.

Provided NMTC financing in the amount of $9.8 million for the renovation of an existing
facility to create a state-of-the-art complex to expand a nonprofit organization’s youth programs
in Philadelphia. The rehabilitation was expected to enable the organization to expand its reach of
services by increasing the number of children served from 600 to over 3,000. The exterior of the
building was retained to preserve the historical appearance and nature of the building. The
renovated facility has several new athletic fields and new or updated programs involving internet
and literacy education, STEM labs, and access to healthy meals. The facility’s service area
includes areas of Low Supermarket Access and limited or no access to broadband or high-speed
internet. The expansion of services was expected to create 18 new full-time jobs. This financing

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addresses many critical community needs including providing the foundation for early workforce
development, addressing the digital divide, improving access to healthy food, and improving life
skills for LMI youth.

Provided a loan of $32.1 million to refinance a 264-unit mixed-income housing

development located in the Stanton community, midway between Wilmington and Newark. This
loan supports affordable housing in a high-cost area as almost all units (261 out of 264) are
considered affordable to households earning less than 120% of AMI. The site is conveniently
located close to a range of amenities such as employment centers, public transportation, retail
shopping and services, schools and major roadways. This development helps preserve much-
needed affordable housing for LMI and middle-income households, in a market characterized by
an overabundance of single-family homes and high demand for multifamily housing to keep up
with the influx of new residents.

C. Washington, DC CSA

Provided $82 million in financing, including a $54.1 million loan and $27.9 million in
LIHTC equity, for the construction of a mixed-use, affordable housing development for seniors,
in Washington, DC. All 179 units will be reserved for LMI seniors aged 55 and over. Forty-three
units will be reserved for households earning up to 30% of AMI, another 119 units for
households earning up to 50% AMI, and the remaining 17 units will be reserved for households
earning up to 80% of AMI. Eighteen of the units will serve as Permanent Supportive Housing,
targeting formerly homeless seniors or seniors at risk of becoming homeless, and there will be a
soft set-aside of 36 units for grandfamilies (grandparents raising their grandchildren). The
grandfamily units will receive special supportive services tailored to their unique needs.
Additionally, 25 units will be subsidized through the DC Local Rent Supplement Program. All
residents will receive supportive services through a local social services organization, and a full-
time service coordinator will operate on site. The development is anchored by the headquarters
of a non-profit organization focused on developing and managing housing for the elderly and
those with disabilities. The property will be sustainably built to green building standards, and
will be eligible for the Enterprise Green Communities certification. This very complex
transaction involves additional funding sources including solar credits to construct the building’s
solar panels, tax-exempt bonds from the DC Housing Finance Agency (DCHFA), and a loan
from the Housing Protection Trust Fund of the DC Department of Housing and Community
Development (DHCD). Further, CONA was required to navigate through a permit approval
process with Washington Metropolitan Area Transit Authority, and a bond collateralization
arrangement with DCHFA and DHCD. The development location is highly desirable, close to
many walkable amenities and public transportation. This highly responsive development
contributes to achieving the Mayor’s goal of creating 12,000 units of affordable housing in the
District by 2025.

Provided a $14.7 million loan and invested $15.8 million in LIHTC equity for the
construction of an affordable multifamily housing complex, and the rehabilitation of a two-story
detached home, in Brunswick, Maryland (Frederick County). The multifamily complex will
contain 43 units and the detached home will contain two separate units, for a total of 45 units, all
reserved for low-income households. There will be nine units for households earning up to 30%
of AMI, 18 units for households earning up to 40%, and another 18 units up to 50% of AMI.

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Fourteen units will have three bedrooms, providing comfortable accommodations for larger
families. The development will include on-site supportive services provided by a nonprofit
affordable housing organization that has a well-established history of collaborating with other
nonprofit organizations, local business partners, and governments to provide services to
residents. Nearby walkable attractions include a library, heritage museum, and park. In addition
to CONA’s financing, this complex transaction included funding from local government sources
and another bank. The development addresses a critical need for affordable housing in a high-
rent market where only two other tax credit developments exist, with a total of only 92 units.

Provided a loan of $12 million and LIHTC equity investments totalling $46.8 million to
help finance the rehabilitation of a 300-unit senior affordable housing development in Northeast
Washington, DC. All units are restricted to LMI households earning up to 30%, 60% and 80% of
AMI (88, 155 and 57 units, respectively). Over one-third of the units (103 out of 300) will be
supported by project-based rental subsidies. A nonprofit organization will provide resident
services for all tenants, focusing on childhood and youth development, health and wellness,
economic mobility and stability, and aging in community. When faced with a substantial
funding shortfall during construction, CONA stepped in to provide additional financing that
balanced the budget, demonstrating CONA’s leadership and commitment to the development’s
success. This development preserves 300 units of affordable housing for tenants who would
otherwise be at risk of displacement, given that the original LIHTC compliance period and
housing subsidy contract term expired and the property is considered prime real estate in a high-
cost market with significant market-rate development activity. A significant percentage of renter
households spend more than 30% of their incomes on housing expenses (i.e., 41.9%) in
Washington, DC, further demonstrating the critical need for affordable housing preservation in
this area.

Provided a loan of $26.3 million and invested $37.2 million in LIHTC equity for the new
construction of a 160-unit affordable housing development in Arlington, Virginia. All units are
reserved for LMI households earning up to 30%, 50%, 60%, and 80% of AMI (8, 52, 82, and 18,
respectively). Sixteen units are covered by Permanent Supportive Housing subsidies from the
Arlington County Department of Human Services and are set aside for people with disabilities,
with a priority given to those with critical housing needs who face complex challenges such as
homelessness, substance abuse, mental illness and HIV/AIDS; these households also receive
tailored supportive services and individualized case management to help them live more stable,
productive lives. Fifty percent of units (80 out of 160) have a leasing preference for veterans; this
is the first leasing preference of its kind in Arlington County. The development includes an
office of a veteran’s advocacy organization, consistent with the nonprofit developer’s mission to
enhance the well-being of veterans and their families. The developer provides a range of services
for all residents including after-school programs, financial and employment counseling, language
skills training, health and wellness screenings, and referrals to outside service providers. CONA
has a longstanding partnership with the nonprofit developer and provided $65,000 in grants to
support its COVID relief and resident programs during the evaluation period. The unit mix
includes 25 three-bedroom units, making the development attractive to larger families. This
financing was particularly complex as it included multiple sources of financing and the
“twinning” of 9% and 4% LIHTCs. This innovative transaction meets several identified
community needs including increasing decent, affordable housing coupled with supportive
services for vulnerable populations, including veterans and people with disabilities.

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 Provided NMTC financing in the amount of $11.8 million for the construction of a
hospice facility in Baltimore, to replace an existing hospice facility that operated out of several
structures that were over 130 years old. The facility primarily serves LMI patients. Other
financing was provided by a minority-controlled depository institution that was the first financial
institution to receive both CDE and CDFI certifications. The new facility better serves the unique
needs of seriously ill residents of Baltimore City, which has a large LMI population. It is located
in a community that was developed by a local nonprofit agency that currently serves over 500
adults aged 62 and older and addresses poverty, homelessness, hunger, and affordable housing.
This addition to the community provides a continuum of care for the aging population in one
location, and meets the growing need for hospice care in Baltimore as identified by the Maryland
Health Care Commission.

Provided two PPP loans totaling $1.5 million to a nonprofit social advocacy organization
that partners with under-resourced communities to better prepare LMI children, youth, adults,
and families for postsecondary education and training, rewarding careers, and civic and
community engagement. Its work improves opportunity and outcomes and closes gaps in access
and achievement in education and workforce development through innovation and leadership
development. The organization employs LMI workers, as the average income in Washington DC
for social advocacy workers is 58% of the area’s 2019 median family income (per Bureau of
Labor Statistics). CONA’s loans addressed the needs for pandemic-related financing, and
retention of jobs and educational and workforce development for LMI populations.

D. Arizona

Provided a loan of $18.2 million and invested $17.4 million in LIHTC equity to finance
the construction of a new 80-unit affordable housing development in Glendale. All units are set
aside for LMI households, with 54 of the units specifically reserved for low-income residents.
Thirty-six units have three bedrooms, making the development attractive to families. Computer
training, literacy improvement, nutrition and wellness education, after-school assistance, job
training and search assistance, financial literacy courses, and credit counseling are provided by
the development sponsor free of charge. The sponsor is a full-service, nonprofit development
organization that builds, owns, and operates high-quality, service-enhanced affordable housing
for working families, seniors, and special-needs populations. Additional financing was provided
by the City of Glendale. This complex transaction addresses the important community needs of
affordable housing with resident services for LMI populations, and units sized for families.

Provided bridge and permanent financing totaling $30.4 million for the purchase and
rehabilitation of a 164-unit affordable housing development for special-needs households. The
property is encumbered by a LIHTC agreement and a Land Use Restrictive Agreement requiring
that all units be occupied by LMI tenants whose incomes are 60% of AMI or less. Additionally,
98 units are reserved for seniors and 64 for veterans. The bridge loan allowed time for the
borrower to arrange the long-term financing for the rehabilitation of the property, which required
an equity investor in addition to CONA’s permanent loan. This was a complex transaction that
addresses the need to retain and upgrade affordable housing units for LMI populations, including
veterans and seniors.

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 Provided loans totaling $6.5 million to three small businesses through the SBA 7(a) Loan
Program. This program is designed to help small businesses that are creditworthy but cannot
qualify for a conventional loan. These three businesses, all located in Phoenix, are a landscaping
service, a manufacturer of animal collars and hospital identification bracelets, and a machine
shop. This financing addresses economic development needs by supporting jobs and helping
bring revenue to the community.

E. California

Provided $19.4 million in LIHTC equity and a $16.9 million loan for construction of a
39-unit affordable housing development in El Monte, California (Los Angeles County). Thirty-
eight units will be restricted to tenants earning less than 30% of AMI, and there is one manager’s
unit. All affordable units will be restricted to individuals who are, or were formerly, homeless
and will benefit from project-based Section 8 rental assistance. The units will be outfitted with
Energy Star appliances, reducing the development’s greenhouse gas emissions. Tenants will
receive complimentary on-site supportive services including case management, mental and
physical health care, benefits assistance, education and wellness support, substance use services,
domestic violence services, and housing retention/stability services. This complex transaction
also received significant city, county, and regional financing support totaling over $7.1 million.
Los Angeles County has a large homeless population; as of June 2023, there were more than
75,000 unhoused individuals on any given night in the county. Permanent supportive housing
developments such as these, particularly in such a high-rent market, help meet a critical need in
the area’s affordable housing efforts.

Provided NMTC financing in the amount of $9.5 million for the renovation of an
abandoned supermarket into a new Hispanic supermarket in Los Angeles County. The site is
located in a food desert. The store features a heavy emphasis on fresh fruit, vegetables, lean
meats, and fresh baked and prepared foods. As a unique element, the store includes space for a
medical clinic that offers free on-site health screenings, vaccinations, nutrition counseling,
cooking demonstrations, and educational outreach to elementary school students. The business is
expected to create 100 full-time and 120 part-time jobs, hired directly from the surrounding area
and will pay a living wage. This financing addresses several important community needs,
including providing access to healthy, fresh foods in an area lacking in these options; creating up
to 220 jobs at a living wage; and providing access to healthcare for a medically underserved
population.

A construction loan in the amount of $8.5 million and an investment in LIHTC equity of
$10.5 million for the new construction of a 27-unit permanent supportive housing development
for low-income, homeless transitional-aged youth (TAY) ages 18-25 with income up to 30% of
AMI. Los Angeles County’s Department of Mental Health defines TAY as youth ages 16-25
with severe mental health issues, many of whom have aged out of the foster care or juvenile
justice systems. Of the total units, one is reserved for a resident manager and the remaining 26
units have rents subsidized by a development-based Section 8 contract. Onsite services are
provided by a nonprofit organization whose mission is to help homeless youth become active and
integrated members of the community. Services include intensive case management that focuses
on healthcare, education, employment and trauma recovery. The loan included a conversion-to-
permanent option that gave the developer flexibility, knowing that long-term financing was in

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place prior to groundbreaking. Additional financing was provided by the Los Angeles County
Development Authority. This complex financing addresses a critical community need by
providing permanent, supportive housing for homeless youth, addressing root causes of
homelessness, and helping LMI youth learn life skills and improve self-sufficiency.

Provided two loans totaling $17.8 million, and $19.6 million in LIHTC equity, to help
finance the comprehensive rehabilitation of a 32-unit affordable housing complex in San
Francisco. The property, owned by a nonprofit affordable housing developer, is part of a multi-
investor fund containing 20 other properties and 11 other investors, thus requiring extensive due
diligence by CONA. One of CONA’s loans, for $12.4 million, is for construction purposes. The
other loan, for $5.4 million, supported the fund's working capital and acquisition of investments
into the fund. Of the San Francisco property’s 32 units, one unit is reserved for the manager, 23
units are reserved for low-income residents earning below 50% of AMI, and the other eight are
for LMI households earning up to 60% of AMI. Eight units are subsidized by project-based
Section 8 credits. As part of the property rehabilitation, four units will be converted to accessible
apartments, and all units will have free Wifi and convert to renewable energy. The complex will
also include a community room, along with space to provide supportive services to residents.
Services will promote housing stability and independent living skills, and address medical and
behavioral health needs. The property is within short walking distance of grocery shopping,
pharmacies, a hospital, restaurants, and other retail services. It is located across the street from a
bus stop and approximately 1,600 feet from the nearest BART transit station, which connects to
all major high-speed rail lines in the Bay Area. In addition to CONA’s financing, this complex
transaction included soft loans from the City of San Francisco and San Francisco County. This
transaction provides much-needed affordable, transit-oriented housing, in a very high-rent
market, that includes resident supportive services. It also addresses the need for retention of
existing affordable housing.

Provided more than $80 million, including a $42.3 million loan and $38.2 million in
LIHTC equity, for the construction of an 81-unit, mixed use, affordable and special needs
housing development in San Jose. The development will include studio, one-, two-, and three-
bedroom units at up to 30%, 50%, and 60% of AMI. Of the 81 units, 40 will be reserved for
Transitional Aged Youth, ages 14-29 (20 for formerly chronically homeless and 20 for currently
homeless or at risk of homelessness). Sixty-one of the units will be subsidized. The local housing
authority will provide project-based Section 8 vouchers for 21 of the units reserved for families
up to 50% of AMI and 20 of the units for Transitional Aged Youth. The remaining 20
Transitional Aged Youth units will be subsidized through Santa Clara County’s Rapid Rehousing
program. The ground floor of the development will house a youth community center operated by
the county, offering a computer room and free clothes, backpacks and hygiene products, medical
services, mental health support and counseling, and parenting, educational, and employment
resources and legal services. The residential portion will feature a full-time Service Coordinator
and intensive case management supportive services. Residents will have access to educational
programming, peer support activities, mental health care, substance use services, benefits
counseling and advocacy, recreational and social activities, education classes, employment
services, and referrals to third party service providers. Additionally, the construction is expected
to receive a LEED Silver rating, and is GreenPoint Platinum Rated, built to sustainable and
efficient environmental standards. This complex transaction included significant public finance
support totaling more than $35.7 million, including a $15.7 million City of San Jose loan, a $20

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million County of Santa Clara loan, and another $12.6 million in soft funding from the county
for the youth community center. This development provides quality affordable housing for a
particularly vulnerable population, as estimates suggest that nearly 30% of the nation’s entire
homeless youth population is located in California.

In 2020, CONA provided a $500,000 loan to an Oakland CDFI that supports small
business owners and their communities. The CDFI helps small business owners provide
equitable jobs through access to capital and pro bono business advice. In 2023, CONA increased
and renewed the loan in the amount of $1 million. The Bank has also provided grant support to
the CDFI since 2014.

Provided a loan of $11.6 million to finance the acquisition of a 91-unit affordable

housing development in San Diego. All units are restricted to LMI households earning up to
30%, 65% and 80% of AMI (8, 2, and 81 units, respectively). Special set-asides include eight
units restricted to formerly homeless veterans. These eight units are also supported by
development -based Section 8 subsidies and receive supportive services through VA San Diego
Healthcare System, including assistance with the lease up and move-in process; case
management; crisis resolution; group education and counseling; benefits assistance; and
referrals. The property is well-located in downtown San Diego with two major public transit
stops less than one mile away. This transaction addresses the critical need for affordable housing,
including supportive housing for formerly homeless veterans, an especially vulnerable
population.

F. Colorado

Provided a loan of $10 million to help finance the acquisition and rehabilitation of a 78-
unit affordable housing development in Boulder. A majority of units (75 out of 78) are restricted
to LMI seniors earning up to 40%, 50% and 60% of AMI (15, 30 and 30 units, respectively); the
remaining three units are market rate. All residents have access to high-speed WiFi, cable TV,
and all utilities at no additional cost. The property manager organizes regular social activities for
residents, such as yoga classes and monthly potlucks and partners with a local nonprofit to offer
subsidized meals. The property is well-located, as a range of community amenities are within
walking distance, including a public library, bus station and senior center. In addition to funding
from CONA, this complex project involved federal historic tax credits and tax-exempt bonds
from the Colorado Housing and Finance Agency. This development provides much-needed
affordable housing for LMI households, and seniors (62+) in particular, in a market characterized
by high occupancy rates, low vacancy rates, and lengthy waitlists for vacant units, indicating
pent-up demand for affordable housing.

Provided an investment of $4.9 million in LIHTC equity and a loan of $4.4 million for
the rehabilitation and adaptive reuse of a vacant historic school building consisting of 72 housing
units, all of which are now set aside for LMI households. This was the first phase of a large
redevelopment effort to convert a 70-acre former college campus into mixed uses. Of the 72
units, 18 are set aside for very low-income households earning up to 30% of AMI. Seventeen
units have three or four bedrooms, making this development attractive for larger families. The
Denver Housing Authority serves as property manager. This transaction was very complex, with
eight additional financing sources including federal, state, municipal, and private sources. In

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addition, this property is part of a multi-investor fund that includes five other properties, further
increasing the required due diligence. This development addresses several community needs
including increasing the stock of affordable housing for LMI households of all sizes, providing
housing for very low-income households, and helping to retain the character of an existing
historical site while simultaneously addressing blight.

G. Florida

Provided almost $55 million in financing, including a $29.5 million loan and $25.3
million in LIHTC equity, for the construction of a 113-unit affordable housing development in
Miami. The units will be reserved for households with incomes at or below 30%, 50% and 80%
of AMI (29, 39, and 45 units, respectively). Twelve units will have three bedrooms, ideal for
ODUJHUIDPLOLHV6L[W\ဨHLJKWXQLWVZLOOEHQHILWIUom Section 8 project-based vouchers. Another 20
units, restricted at 30% AMI, will have a soft set-aside for households considered homeless or
having a survivor of domestic violence, a person with a disability, or a youth aging out of foster
care. Property amenities include a playground, fitness center, and community room. Residents of
the property will be offered supportive services including quarterly employment assistance and
counseling, family support coordination (on-site programming and activities to build
community), and financial management programming on topics such as budgeting, tax
preparation, retirement planning, and homebuyer education. In addition to CONA’s very
significant financing, this complex transaction included funding from another commercial bank,
state and local agencies, and the Federal Home Loan Bank. The transaction is highly responsive
to the need for affordable housing, including for households with special needs.

Provided a loan of $5 million and a LIHTC equity investment of $13.1 million to help
finance the new construction of a 30-unit affordable housing development in Tampa. All units
will be restricted to LMI households earning up to 22%, 30%, 33%, 50% and 60% of AMI (3, 5,
3, 5 and 14 units, respectively). Fifteen units will be set aside for persons with intellectual or
developmental disabilities. Eight units will be supported by HUD Section 8 project-based
vouchers. A nonprofit organization with a long history of serving individuals with developmental
disabilities will provide services to residents including, but not limited to, referrals and ongoing
services to help special-needs residents maintain independent living; and ongoing services for all
residents will include innovative, certificated-based job training, employment placement, life
skills, and residential community living programs. In addition to the debt funding from CONA,
this complex project involved public financing at the federal, state and county levels (i.e., federal
LIHTCs, loans from the Florida Housing Finance Corporation, and a loan from Hillsborough
County.) This development will provide much-needed affordable housing for LMI households
and, in particular, persons with intellectual or developmental disabilities.

H. Georgia

In 2023, CONA provided two loans totaling $13.5 million to help finance the new
construction and lease-up costs of a 42-unit affordable housing development, which will be part
of a larger mixed-use master-planned development that includes office and retail space. CONA
also provided $10.5 million in equity investments for this property in 2021 and 2022; this
demonstrates CONA’s multi-year commitment to the success of this development, which has
encountered delays and higher-than-expected construction costs due to the COVID-19 pandemic.

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All units will be restricted to LMI households earning up to 30%, 50%, 60% and 80% of AMI
(10, 9, 14 and 9 units, respectively). Eight units will be set-aside for formerly homeless persons
and supported by project-based vouchers funded by Atlanta Housing's “Haven” Program. A
nonprofit organization will provide services to residents of the subsidized units including, but not
limited to, case management, service plan development, clinical services, and substance abuse
services; these services are funded and staffed by the Fulton County Department of Behavioral
Health. The property will include 29 three-bedroom units, appropriate for larger households. In
addition to funding from CONA, this complex project involved state LIHTC equity; a HOME
loan from the Georgia Department of Community Affairs; and a Partners for HOME Permanent
Supportive Housing Grant. This property is responsive to the need for affordable housing in a
high-cost market, which the developer identified from a survey of 600 residents of the
surrounding community. It will also serve the formerly homeless, in support of the Mayor’s goal
to reduce homelessness by building or preserving 20,000 affordable housing units by 2030.

Provided a loan in the amount of $26.4 million to provide permanent long-term financing
for the acquisition and rehabilitation of 181 units of family housing located in one high rise and
11 town-house style buildings in Atlanta. Of the total, 154 units have rent subsidized by a
Section 8 HAP contract, effectively limiting rent to 30% of household income. The remaining
unsubsidized units are affordable to tenants earning a maximum of 80% of AMI. The
construction resulted in an increase to the unit count by one (from 180 to 181), and repairs
included hazardous materials abatement and energy efficiency upgrades to doors, windows,
lighting and appliances. Because of the extensive nature of the work, tenants were temporarily
relocated during renovation. The development sponsor was responsible for securing decent, safe
and sanitary off-site temporary housing for each tenant and paid all costs associated with the
short-term relocation, including transportation to school, as necessary. Onsite social and
recreational services are provided and include classes on exercise, health and nutrition,
budgeting, and computer tutoring. Units range in size from one to five bedrooms, making this
development attractive for families of all sizes. This complex transaction involved both the
acquisition and rehabilitation of a property with tax credits, a HAP contract, and bridge loan
financing provided by another lender. The financing addresses several important community
needs including retaining and upgrading existing affordable housing, providing housing for low-
income families, improving the energy efficiency of existing units, and providing services that
improve self- sufficiency for LMI households.

Provided a loan of $7.5 million and a LIHTC equity investment of $11.5 million to help
finance the new construction of a 60-unit mixed-income housing development. Most units are
restricted to LMI households earning up to 50% and 60% of AMI (10 and 40 units, respectively;
the remaining 10 units are market-rate). Two nonprofit organizations provide a unique range of
services for all residents, including a social service agency that offers healthy meals, nutrition
education, counseling, and public services enrollment; and a nonprofit theater company that
offers animation, writing, music, acting, filmmaking, and visual arts classes. The development is
considered “transit-oriented” as it is located next to a MARTA transit station, making it
convenient for individuals who work in downtown Atlanta, less than 10 miles away. In addition,
the property is only one light rail stop away from the Atlanta Airport, which offers numerous
employment opportunities for residents at wages qualifying for both affordable and market-rate
units. This development transformed a former church parking lot that was essentially
underutilized real estate into much-needed affordable housing for LMI households in a market

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characterized by high demand. It also contributed to the city of Atlanta’s goal to create or
preserve 20,000 affordable homes by 2026. CONA’s funding addressed the needs for affordable
housing with resident services for LMI households, and for transit-oriented developments.

I. Illinois

Provided a LIHTC equity investment of $7.7 million to help finance the rehabilitation of
a 107 -unit affordable housing development built in 1973, which was one of the first
subsidized developments in Evanston, Illinois. The developer included funds to assist tenants
with temporary relocation, as needed, during the renovations to minimize any potential negative
impacts or disruptions. Almost all units (106 of 107) are restricted to LMI seniors earning up to
60% of AMI; there is one manager's unit. In addition, twelve units are reserved for persons with
mobility and/or sensory impairments. A large majority of units (101of 107) are supported by
project-based Section 8 rental subsidies funded by HUD. A part-time Service Coordinator
employed by the property assesses resident needs, identifies and links residents to appropriate
services, and monitors the delivery of services involving activities of residents' daily living, such
as eating, dressing, bathing, grooming, transferring, and home management. The property is well-
located and walkable, given its location within a half mile of restaurants, retailers, pharmacies,
banks, convenience and grocery stores, and downtown Evanston. In addition to funding from
CONA, this complex transaction involved bonds issued by the Illinois Housing Development
Authority. This development provides much-needed affordable housing for LMI households and,
in particular, disabled seniors (62+), in a market characterized by strong demand as evidenced by
a waiting list of over 100 applicants.

In 2020, CONA provided a $500,000 working capital line of credit to a local CDFI
whose mission is to provide flexible, affordable, and responsible financing and technical
assistance for community stabilization and development initiatives that benefit LMI communities
in metropolitan Chicago. The organization was created to ensure that Chicagoland CD
organizations (including small and emerging organizations) would have a lender to turn to for
difficult-to-underwrite developments and enterprises. The CDFI carries out its mission through
three key programs that provide (1) small for-profit and nonprofit developers with the support
and capital needed to acquire, rehabilitate and own 1-4 unit buildings to help stabilize low-
wealth communities impacted by foreclosures; (2) technical assistance and loans for commercial
development in LMI communities; and (3) fixed-rate loans for organizations engaged in
community-based social service, housing, or economic development. In addition, CONA
provided $45,000 in grants to support the organization’s general operations, technical assistance
for small businesses, and assistance for households seeking to purchase or maintain affordable
housing in LMI neighborhoods. In 2023, CONA renewed and increased the credit line to $1.5
million. CONA’s financing illustrates its willingness to originate small loans for CD purposes
and addresses the need to support CDFIs with funding for general and specific CD purposes.

J. Louisiana

Provided a $19.5 million loan for the redevelopment and adaptive reuse of an office
building into a federally qualified health center (FQHC) in New Orleans. The project will bring
affordable healthcare and community services to the neighborhood, create jobs, and make
efficient use of the existing historic structure. The borrowing entity was founded in 1983 in

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response to the HIV epidemic in New Orleans, and has since expanded its mission to include
case management, mental health services, a meal delivery program, community prevention and
education projects, and a community health center. The project will allow the borrower to
relocate its operations from an inadequate and leased space into a larger, newly renovated, more
efficient, owned facility. At the new facility, the borrower will have increased capacity for
providing high-quality primary medical and behavioral healthcare services, health education, and
supportive services. It expects to serve over 6,300 clients annually, of which approximately 80%
are anticipated to be low-income individuals. The health center will be located in a moderate-
income tract. This loan addresses a significant need for quality health care in New Orleans,
where 41% of adults have a chronic health condition.

Provided a $10.7 million loan and invested $15.6 million in LIHTC equity to finance an
affordable housing development in New Orleans. The borrower and project sponsor is a
nonprofit firm operated by two nonprofit affordable housing developers. The transaction
involves the construction and adaptive reuse of a historic building into an affordable housing
development. The 46-unit development will be entirely reserved for tenants earning up to 30%,
50%, and 60% of AMI (5, 17, and 24 units, respectively). Additionally, 14 units will be set aside
for households with special needs, including single parents, large families, foster parents,
veterans, and households with victims of domestic violence. Residents will have access to
supportive services including financial literacy training, substance abuse and mental health
treatment, medical and dental care, life skills training, vocational counseling, and transportation.
The development is located in a highly desirable location close to many of the city’s famous
restaurants, parks, historic buildings, and other popular destinations. In addition to private
financing, this complex transaction received public financing support in the form of a $3.5
million HUD HOME Program loan. This adaptive reuse development offers a sustainable
solution to providing much-needed affordable housing in a city that is experiencing high rental
rates and is still in the process of rebuilding its affordable housing stock following Hurricane
Katrina.

Provided two loans totaling $17.4 million and two LIHTC equity investments totaling
$20.9 million to help finance the new construction of a 110-unit mixed-income housing
development in downtown Lake Charles. A majority of units (89 out of 110) will be restricted to
LMI households earning up to 20%, 30%, 50%, 60%, and 80% of AMI (4, 10, 33, 34 and 8 units,
respectively); there will be 21 market-rate units, which will be marketed to households earning
up to 75% of AMI. Ten units will be subsidized, including six units supported by project-based
voucher HUD Section 8 contracts and four units supported by HUD Section 811 Rental
Assistance contracts; six of the ten subsidized units will be set aside as permanent supportive
housing units. A nonprofit organization will provide services to residents including, but not
limited to, daycare and afterschool programs; financial and budgeting seminars; job training and
continued education; preventive healthcare programs; and coordination with local veterans
service providers. In addition to funding from CONA, this highly complex financing structure
involved numerous public sources including the federal Community Development Block Grant
(CDBG) Disaster Recovery Program, the state of Louisiana’s energy tax credit program, and the
City of Lake Charles. The property also received funds from a CDFI loan fund. This
development will be constructed to meet disaster-resiliency standards to withstand severe
weather such as hurricanes. It will provide much-needed affordable housing for LMI households,
including very low-income households earning up to 20% and 30% of AMI, in a region that has

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experienced several natural disasters in recent years, persistently high poverty rates, and an acute
shortage of quality affordable housing.

Provided an investment of $9.7 million in LIHTC equity to finance a mix of new

FRQVWUXFWLRQDQGUHKDELOLWDWLRQZRUNRQDဨXQLWIDPLO\GHYHORSPHQWIRU/0,KRXVHKROGV7KH
site, located in East Carroll Parish in CONA’s Louisiana Non-Metro AA, had a vacant
community center structure that was rehabilitated to become part of the overall development. Of
the 45 units, three are reserved for households earning up to 20% of AMI; two for up to 30%; 13
for up to 50%; and 27 units are reserved for households earning up to 60 of AMI. Twenty-eight
units are supported by HUD Section 8 subsidies, effectively limiting rent to 30% of household
income. In addition, 28 units are 3- or 4- bedroom units, making this complex attractive for
larger families. On-site services are provided by a local nonprofit CDC and include GED and
computer training, ESL instruction, career advisement and life skills classes, interview skills
training, resume writing and job readiness classes. This complex transaction is part of a
syndicated investment that includes this and 20 other properties and involved multiple sources of
financing. This development addresses several important community needs including increasing
the stock of decent, affordable housing for LMI households, including those that are very low-
income; providing housing for larger families; and providing self-sufficiency and life skills for
LMI populations.

Provided a loan of $4.5 million and a LIHTC equity investment of the same amount ($4.5
million) to help finance the rehabilitation of a 40-unit affordable housing development in a small
town in a rural part of the Bank’s Shreveport AA. All units are restricted to LMI households
earning up to 30%, 50% and 60% of AMI (3, 14 and 23 units, respectively). Twelve units are set
aside for single-parent households. In addition, two units are set aside for low-income
households earning up to 30% of AMI with a preference for veterans, disabled, and elderly
persons on the public housing waiting list. A nonprofit organization provides services to
residents including a local Meals on Wheels program for elderly tenants, computer training,
referrals to local agencies, and tutoring for school-age children, which is especially responsive to
the single-parent households. This complex development involved significant public financing
including two federal loans, one from the U.S. Department of Agriculture and another from the
U.S. Department of Housing and Urban Development’s Home Investment Partnerships Program.
This development, paired with supportive services, directly addresses the need for affordable
housing, including the needs of LMI single parents and their children.

K. Massachusetts

Provided a $12 million loan for the rehabilitation of two affordable housing
developments in Middlesex County. The properties are located close to one another and will
operate as a single entity. The developments consist of 60 total units. Eighteen units are
restricted to households earning up to 30% of AMI and are subsidized with HUD project-based
vouchers. Three units are restricted to households up to 50% of AMI, and are part of HUD’s
HOME Investment Partnerships Program, which provides grants to state and local governments
to create affordable housing for low-income households. The remaining 39 units are reserved for
households earning up to 60% of AMI. Additionally, 13 units are 3-bedroom, and two are 4-
bedroom, providing ideal accommodations for larger families. The rehabilitation will include
building accessibility upgrades and other quality of life and aesthetic improvements that will

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make the units more comfortable for residents. The properties are located in a highly walkable
area, near public transportation and desirable recreational and retail amenities. The sponsor is a
nonprofit organization with a strong history of support and advocacy for affordable housing and
social services in the area. The development is located in a high-cost area in the Cambridge
market, and the preservation and modernization of existing housing is one of the City’s stated
housing goals in its Comprehensive Plan.

Provided a $7 million loan for the construction of a mixed-use, 100-unit affordable

housing development in Boston. Units are set aside for households earning up to 30%, 50%,
60%, and 80% of AMI (25, 33, 18, and 24 units, respectively). Forty-four units, a subset of the
30% and 50% AMI units, will be subsidized by HUD Section 8 project-based rental assistance.
An additional four units will be subsidized by a state agency and set aside for persons with
mental disabilities. Seventeen units will be set aside for homeless households. The
development features 11 three-bedroom, 13 four-bedroom, and 5 five-bedroom units, making it
ideal and comfortable for larger families. A community center will anchor the ground floor of the
development and provide flexible community space, including a function hall, multi-purpose
rooms, offices, and recreation areas to meet the diverse needs of residents of all ages and
abilities. Additionally, a revitalized plaza space with pedestrian paths, seating areas, and
additional landscaping will be provided and designed to be conducive to resident interaction and
outdoor informal gatherings. The community center will serve as a site for supportive service
activities offered to residents, including housing stabilization support, financial mobility, health
and wellness support, job readiness coaching, counseling, clothing and food security assistance,
early and school-aged educational programs for youth, community engagement and leadership
opportunities, and chronic disease self-management support. The property developer is a
nonprofit organization with significant experience across the northeast, midwest, and mid-
Atlantic. In addition to CONA’s loan, this complex transaction involved a mix of public and
private funding, including a loan from another bank and Community Development Block Grant
funds. In addition, the development will receive energy tax credits. The bank’s support for this
development addresses the need for affordable housing, including for those with special needs, in
a market where incomes for LMI households are relatively flat while household costs are rising.

Provided an investment of $10.4 million in LIHTC equity and a construction loan in the
amount of $10.5 million for the new construction of a 44-unit affordable development for LMI
households. Seventeen units are specifically for low-income households and have rent subsidies
provided by HUD Section 8 and the Massachusetts Rental Voucher Program (MRVP),
effectively limiting rent to 30% of household income. The remaining 27 units are reserved for
LMI households with incomes up to 60% of AMI. Ten units have set-asides to serve special-
needs populations including homeless, mentally ill, and physically disabled persons. The
development has a resident service coordinator to assist the special-needs population to identify
and procure needed services from outside providers. The site, developed by a nonprofit
developer, is part of the Jackson Square Redevelopment Initiative, a phased mixed-use
neighborhood development to replace several existing vacant and under- utilized public and
private parcels located in the area surrounding the Jackson Square MBTA Station in the Roxbury
and Jamaica Plain communities of Boston. The Jackson Square redevelopment was planned and
designed to promote a pedestrian-oriented community that integrates smart growth, transit-

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oriented development, and green design (LEED Silver). This financing was extremely complex,
employing nine other funding sources besides CONA’s loan and LIHTC equity. The due
diligence needed to ensure that the restrictions of each funding source were acceptable and
sustainable required significant effort and expertise. This transaction addressed many identified
community needs including increasing the stock of decent, affordable housing for low-income
and special-needs populations; revitalizing and stabilizing a blighted area in a targeted
redevelopment zone; and transit-oriented housing.

L. Michigan

Provided a loan of $5 million and a LIHTC equity investment of $11.7 million to help
finance the rehabilitation of a 200-unit mixed-income housing development in Detroit. A
majority of units (146 out of 200) are restricted to LMI households earning up to 30%, 50% and
60% of AMI (17, 25 and 104 units, respectively). The remaining 54 units are occupied by tenants
with incomes that exceed 60% of AMI, as the developer decided to make these units unrestricted
instead of imposing income restrictions that could lead to eviction and displacement of these
tenants. One of the property’s co-developers is a local nonprofit organization with a mission to
connect affordable housing residents to resources that help break generational poverty; this
includes programs centered around topics such as financial literacy, career development and
adult education/GED assistance. This development preserves and upgrades high-quality
affordable housing for LMI households, a critical need in Detroit, a city with persistently high
poverty rates and an aging housing stock.

Provided NMTC financing in the amount of $16.6 million to a Detroit-area food bank
for the acquisition and rehabilitation of a warehouse into a high-capacity hub for food
distribution operations, replacing two existing rented facilities. The increased space will allow
the organization to take advantage of bulk donations that would otherwise be turned away,
extensive space for volunteers, and 24 dock doors to improve inflow and outflow. The food bank
distributes food to LMI individuals and families via 660 partner food pantries, soup kitchens,
shelters, and other organizations, as well as direct-to-client initiatives, including food drop-offs
at schools. It also operates a pop-up retail grocery market at 18 sites in senior- and veteran-
focused communities, allowing customers to stretch their dollars further than at a traditional
grocery store. Due to the pandemic, 2020 was a record year as food distribution increased by
39% over 2019. CONA’s financing enabled the organization to sustain pandemic-level activity
through increased space and greater efficiency. It also addressed shortfalls in the food ecosystem
that limit the ability to provide LMI families with access to healthy food.

M. Minnesota

Provided a LIHTC equity investment of $25 million to help finance the new construction
of a 160-unit affordable housing development located near Downtown Minneapolis. The site is
conveniently located in the popular Arts District, within walking distance to a range of amenities
including schools, a grocery store, shopping center, pharmacy, bank, post office, recreational
park, library, and senior/community center, as well as a bus stop with routes to Downtown
Minneapolis and surrounding areas. The unit mix includes 67 three-bedroom units, making it
appropriate for families. All units will be restricted to LMI households earning up to 30%, 60%
and 80% of AMI (24, 100 and 36 units, respectively). Sixteen units will be subsidized, as eleven

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units will benefit from project-based vouchers from the Minneapolis Public Housing Authority,
and five units will target the formerly homeless and benefit from subsidies and supportive
services, such as case management, job placement, life skills training, educational training and
referral services, from a local nonprofit organization (via a contract with Hennepin County). In
addition to funding from CONA, this complex transaction involved solar tax credits. This
development will provide much-needed affordable housing for LMI households and, in
particular, the homeless, which is aligned with Minnesota’s statewide plan to reduce
homelessness by 15 percent by 2026.

Provided a loan of $8 million and a LIHTC equity investment of $10 million to help fund
the new construction of a mixed-income 71-unit housing development in Brooklyn Park, a
suburb of Minneapolis. Most units (63 out of 71) are restricted to LMI households earning up to
30%, 50% and 60% of AMI (13, 24, and 26, respectively); the remaining 8 units are market-rate.
Five units are set aside for people with disabilities and supported by development-based Section
8 subsidies. Eight units are set aside for high-priority homeless through Minnesota’s Coordinated
Entry System, a process that assesses and matches eligible households to housing opportunities,
supported by Hennepin County’s rental assistance vouchers. The unit mix includes three- and
four-bedroom units and family-friendly amenities such as a playground, a community room and
ample parking spots, making it suitable for larger households. Unit amenities also include high-
speed internet, directly addressing a need for digital access among LMI communities. In addition
to funding from CONA, this very complex development received funds from the Greater
Minnesota Housing Fund, Brooklyn Park Economic Development Authority, and Hennepin
County Housing and Redevelopment Authority. This development provides much-needed
affordable housing in a prime location, adjacent to a community college and rail line, providing
LMI households not only with high-quality affordable housing, but also with opportunities for
education and jobs. This development also aligns with the City of Brooklyn Park’s stated goals
(per its 2040 twenty-year Consolidated Plan) to increase the supply of housing, especially for
households that are cost-burdened or earning up to 50% of AMI.

N. Nevada

Provided a $24 million loan and invested $19.4 million in LIHTC equity for the
construction of a senior affordable housing development in Las Vegas. All 125 units will
be age-restricted to tenants 55+ earning less than 60% of the area’s AMI, including five units
restricted to tenants earning less than 50% AMI. Eight units will benefit from Section-8
project based vouchers, restricted to seniors 62+ earning up to 30% of AMI. The project sponsor
is a well-established, nonprofit affordable housing developer. Residents will receive
complimentary supportive services including transportation services via an on-site van service
with minimum two-day operating schedule, recreational and educational services, an annual
assessment to determine individual resident social, medical, and other needs, and a resident
services coordinator for 20 hours per week. The location is well suited for its senior residents,
close to public transportation, grocery-anchored shopping centers, and emergency services. The
property will feature solar panels installed on the carports, making the building more sustainable
and reducing energy costs. In addition to CONA’s financing, this complex transaction included
significant public financing commitments totaling more than $17.7 million, along with a loan
from another bank. Seniors make up 30% of all extremely low-income renter households in the
state of Nevada. This development aids in reducing Las Vegas’s large affordable housing gap,

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and provides tailored services for seniors, both of which are stated needs in the City’s 2020-2025
Consolidated Plan.

In 2022, CONA provided a loan of $1.7 million and invested $2 million in LIHTC equity
to help finance the new construction of a 171-unit senior affordable housing development in Las
Vegas. In 2023, the Bank increased its LIHTC equity investment by another $10.7 million. Most
units (130 out of 171) are reserved for low-income households earning up to 30% and 50% of
AMI (4 and 126 units, respectively). Forty units will have rents affordable to moderate-income
households earning up to 70% of AMI; and there is one manager’s unit. In addition, 17 units
(10% of total units) are set aside for veterans. The developer’s nonprofit partner will provide
supportive services free of charge, offered on-site, to all residents, including health and wellness
screenings; doctor visits; transportation; weekly food distribution from a local food bank;
employment counseling; a computer literacy program; and planned social and educational
activities. This was a complex transaction that received significant public support, including a $6
million loan from Clark County’s Community Housing Fund and a $1.4 million loan from Clark
County’s HOME Investment Partnerships Program (funded by the U.S. Department of Housing
and Urban Development), in addition to federal LIHTCs. This development addresses a
particularly acute need for affordable senior housing in Clark County, where there is a shortage
of nearly 60,000 homes for low-income households.

O. Ohio

Provided a LIHTC equity investment of $5 million to help finance the acquisition and
rehabilitation of a 75-unit senior affordable housing development located five miles east of
Downtown Columbus. All units are restricted to LMI seniors earning up to 60% of AMI and are
supported by a HUD Section 8 Housing Assistance Payments contract. The property manager
will coordinate services for residents to help connect them with other local agencies that provide
a wide range of offerings, including educational classes, ride assistance, medical care, and
assistance applying for Medicaid and other governmental benefits. In addition to funding from
CONA, this complex transaction involved two loans from HUD. This development preserves and
upgrades much-needed affordable housing for LMI households, and seniors in particular, in a
market characterized by a senior population that is growing rapidly, while high occupancy rates
and long waiting lists at comparable properties ranging from 18 to 60 months indicate a supply-
constrained market.

In 2022, CONA provided NMTC financing in the amount of $15.6 million for the
expansion of a university medical center’s emergency department in Cincinnati. The
hospital’s mission is to provide care for the aged, indigent, and orphaned, and it serves as a first-
line resource for the community. The financing will facilitate the addition of 46,000 square feet
of new emergency department space, the renovation of the existing 30,000 square-foot space,
and the creation of an ICU and an observation unit. Prior to the expansion, the emergency
department had been operating at an unsafe patient capacity on at least two days of each week,
for the last 10 years. The physical expansion will improve patient care and accommodate patient
surges. The project is expected to retain 131 existing full-time employees, create an additional 42
full-time roles, and create 150 full-time construction jobs. Jobs created and maintained will have
above-average wages and benefits for hourly employees. Due to the pandemic, the medical
center experienced an increase in operating expenses to protect staff, and a decrease in revenues

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due to elective procedures being temporarily shut down. This caused a strain on its capitalization
strategy for the development, making NMTC allocations critical in moving the development
forward without deferring elements of expansion or impacting patient programs. This complex
financing addressed the need for expanded healthcare for LMI families, the creation and
retention of living-wage jobs, and pandemic-related assistance for a critical community facility.
In 2023, CONA provided another $10 million in NMTC financing to expand the medical
center’s intensive care unit. This second transaction demonstrates CONA’s ongoing commitment
to addressing community needs.

P. Oregon

Provided NMTC financing in the amount of $8.8 million for the construction of Phase II
of a commercial/retail development in Gresham, Oregon to create almost 200,000 square feet of
space, providing much-needed goods and services to this LMI community. The development is
designed to attract a wide variety of tenants providing workforce training, job placement
services, education, early childhood learning, healthy food, and other services requested by the
public. The overall development is part of an urban renewal plan managed by the City of
Gresham’s Redevelopment Commission. Phase II involves construction of Building C, occupied
by a fresh food market and office space. The bottom floor is dedicated to healthy local food and
entrepreneurial food vendors and was expected to create an estimated 112 jobs. One of the key
tenants of the development is an SBA-certified microlender and CDFI that works with small
businesses through every stage, from asset building and credit preparedness, to loans and
business expansion. CONA also helped fund Phase I of this development in 2019, which
involved a $19.8 million loan secured by NMTCs for the new construction of Building A, a four-
story commercial building and the substantial rehabilitation of Building D, a single-story
commercial structure. This development addresses several community needs including the
creation/retention of jobs for LMI individuals, assistance to and opportunities for small
businesses, and access to healthy food and other critical goods and services to the residents of
this community. The transaction also demonstrates CONA’s commitment to funding multiple
stages of a development.

Provided a construction loan in the amount of $12.1 million and an investment of $14.9
million in LIHTC equity for the new construction of a 56-unit affordable housing development
for LMI households earning 30-60% of AMI. Of the 55 rental units (there is also a manager’s
unit), 20 give preference to Tribal Member households and have rent subsidies such that rent
does not exceed 30% of household income. Ten units have three bedrooms, making this
development suitable for larger families. The co-developer, a Portland nonprofit organization
that serves Native Americans, provides on-site resident services to include life and wellness,
career, and technical assistance services such as financial wellness classes, business development
coaching and classes, home ownership and workforce development training, after-school and
summer programs, and community engagement for all residents. This transaction was
exceptionally complex with many layers of financing from state, local and municipal sources.
These sources included, for example, an Indian Housing Block Grant (IHBG), a grant from the
Oregon Housing and Community Services Department’s Multifamily Energy Program for
developments that provide weatherization and energy conservation services, and a Portland
Metro Transit-Oriented Development grant to stimulate private development of high-density,
affordable, and mixed-use developments near public transit. The development is located

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approximately 500 feet from the Tri-Met bus line. In addition, the transaction was innovative as
it was only the second in the country to combine IHBG and LIHTC funding in the same
development. This transaction meets many identified community needs including affordable
housing targeted to the Native American population, use of green building techniques, transit-
oriented developments, and social services that include self- sufficiency training for LMI people.

Q. Texas

Provided a loan of $16.9 million and $18.1 million in LIHTC equity for the construction
of a 128-unit senior affordable housing property in Houston. Of the 128 units, 115 will be
restricted to tenants earning up to 30%, 50%, and 60% of AMI (14, 44, and 57 units
respectively). The other 13 units will be at market rate. Supportive services offered to residents
will include employment assistance, credit counseling, transportation assistance, social activities,
education programs, and health screenings. This complex transaction also included significant
public financing support at the state and local levels. It also required a modification to the
community association’s covenant to allow such a property to be built, and will be the first
affordable housing development in the local community. According to the 2020-2024 City of
Houston Consolidated Plan, “The [housing] market may be meeting the need for high-end
housing, but it is falling short in addressing the need for quality affordable housing, especially
housing for special needs populations.” The Plan specifically speaks to the need for more senior
housing, given the aging population, and this affordable housing development is a positive
contribution toward meeting that need.

Provided over $65 million in funding, including a $28.7 million loan and $36.9 million in
LIHTC equity, for the construction of a 247-unit affordable housing development in Austin.
Thirteen units will be reserved for households earning up to 30% of AMI, while the remaining
234 will be reserved for households earning up to 60% AMI. The development contains 48 three-
bedroom units, and 24 four-bedroom units, making it ideal for larger families. Seventeen units
will be set aside for mobility, hearing, or visually impaired persons. In accordance with a Land
Use Restrictive Agreement, residents will receive onsite supportive services including
educational services, health and nutrition, recreational activity, personal development, and family
skills. Units will be equipped with energy-efficient refrigerators, dishwashers, HVAC system,
ceiling fans, and windows, improving the efficiency of the units and reducing the impact on the
environment. The developer partnership includes a local nonprofit entity, which allows the
development to receive 100% property tax abatement. This complex transaction was made
possible through a mix of public and private financing, including a tax-exempt loan from Freddie
Mac. The complexity was further increased by the fact that CONA’s debt financing amounted to
51% of a participation with another lender. As large corporate offices have moved into Austin
bringing high-paying jobs, housing costs have risen considerably and many in the Austin
community struggle to afford market rental prices. More than 47% of renter households in the
Austin market are cost-burdened, spending more than 30% of income on rent and utilities.
Developments such as this provide opportunities for households to comfortably afford housing
costs and save for other expenses.

Provided a LIHTC equity investment of $16.3 million to help finance the new
construction of a 96-unit affordable housing development in Collin County. The property will
replace two aging sites that were previously built as public housing in the 1950s with updated

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apartments with modern, energy-efficient features as well as an onsite community center and
playground. The unit mix will include 54 three-bedroom and 10 four-bedroom units, making it
suitable for families. All units will be restricted to LMI households earning up to 50% and 60%
of AMI (50 and 46 units, respectively). Fifty units will be subsidized; ten units will benefit from
a long-term Rental Assistance Demonstration (RAD) contract and 40 units will benefit from a
long-term HUD project-based voucher contract. (RAD is a HUD program designed to provide
stable financing to public housing agencies to make property improvements.) All 50 subsidized
units will be designated as “HOME-American Rescue Plan qualifying population” units,
meaning that they must serve households that meet the definition of a qualifying population,
which includes populations who are: 1) homeless; 2) at risk of homelessness; 3) fleeing or
attempting to flee domestic violence, dating violence, sexual assault, stalking, or human
trafficking; or 4) other populations where providing supporting services or assistance would
prevent the family’s homelessness or serve those with the greatest risk of housing instability.
This development is highly responsive to a critical community need for affordable housing,
particularly for large families and the homeless. It will also contribute to a larger initiative by the
city of McKinney and the McKinney Housing Authority to revitalize the city’s housing stock and
add units to the growing city.

Provided a loan of $9.5 million and invested $16.7 million in LIHTC equity to help
finance the transformation of an old car dealership into the new construction of an 80-unit
affordable housing development in Austin. All units will be reserved for LMI households earning
up to 30%, 50%, 60% and 80% of AMI (10, 32, 32 and 6 units respectively). Six units will be
reserved for households with special housing needs. These needs may include a broad range of
populations, such as persons with alcohol or drug addictions, persons with disabilities, persons
with HIV/AIDS, and several other categories approved by Texas Department of Housing &
Community Affairs. The unit mix includes two- and three-bedroom units (24 and 14,
respectively), making it appropriate for families. The development sponsor, a certified Women-
Owned Business and state-designated Historically Underutilized Business, will provide tailored
supportive services for all tenants, including financial literacy, workforce training and after
school tutoring. The development received significant public financing, including a $3.7 million
soft subordinate loan from the City of Austin Rental Housing Development Assistance Program
and a $3 million construction loan from the Texas State Affordable Housing Corporation. This
development provides much-needed affordable housing in a market characterized by rising rents
and growing demand for a limited supply of quality housing options, especially for LMI
households. The development’s location also makes it attractive in that it is located in a part of
the city where affordable housing has historically been less present, contributing to greater
accessibility to affordable housing dispersed throughout the city.

Provided $18.7 million in NMTC financing for the construction of a new facility to
support victims of domestic abuse in Dallas. CONA also provided $60,000 in grants to support
the center’s general operating expenses. The center is operated by an organization that offers the
most comprehensive domestic violence recovery program in Dallas, including an emergency
shelter; transitional housing; on-site schooling, daycare, and afterschool programming; mental
health counseling; and legal support. This full continuum of care for women and children who
are escaping domestic violence is provided at no cost to its clients. The new center increased the
organization's overall capacity by 40% and legal service provision by 100%, assists children
traumatized by domestic violence, and provides education opportunities for advocates and

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therapists. The new center was estimated to create 40 or more new jobs and will retain 30 or
more current jobs. This financing addresses the critical community credit need of providing crisis
intervention and long-term solutions for women and children who are survivors of domestic
violence. It helps to prevent homelessness by offering an alternative to those needing to escape
abusive surroundings.

R. Virginia

In 2023, CONA provided a loan of $10.5 million to help finance the acquisition and
rehabilitation of an existing 216-unit family and senior tenancy, affordable housing development
located in Chester, Virginia. CONA also provided a loan of $29.4 million and a LIHTC equity
investment of $2.1 million to support this property in 2022, demonstrating CONA’s ongoing
commitment. All units are restricted to LMI households earning up to 50% and 60% of AMI (22
and 194 units, respectively). The original site consisted of multiple buildings containing a total of
184 family units built in 2005 and 32 senior units built in 2006. The renovated property will
maintain the original structures and design of the overall site, while providing significant updates
including new roofing, siding, and landscaping; repair/replacement of parking surfaces and
sidewalks, gutters and downspouts; full renovations of the public spaces and amenities; and in-
unit improvements such as new air conditioning units, kitchen appliances and cabinetry. The
updated property will include 65 three-bedroom units and amenities such as a fitness center,
playground, and recreational area, making it appropriate for families. It will also include 22
accessible and hearing/visually impaired units, making it appropriate for seniors and/or disabled
persons. This development preserves and upgrades affordable housing for LMI households and,
in particular, families, seniors, and special-needs populations, in a market characterized by high
occupancy rates and long waiting lists.

Invested a total of $18 million in LIHTC equity in two transactions to help finance the
rehabilitation of 204 public housing units in Richmond. The public housing was converted into
affordable units under the LIHTC program. All units are reserved for low-income families
(below 50% of AMI) and benefit from HUD Section 8 rental subsidies that limit rent to 30% of
resident income. Ninety units have two bedrooms, 72 are 3-bedroom units, 35 have four
bedrooms, and seven units have five bedrooms. The units are in 48 buildings at scattered sites.
The Richmond Redevelopment and Housing Authority is a co-developer and provides all tenants
with supportive services such as transportation, case management, and workshops on
employment, education, and health. Additional financing was provided by the Virginia Housing
Development Authority. These properties are part of a national multi-investor fund containing 20
other properties around the country, and 10 other investors, further increasing the level of due
diligence work required by CONA staff. This very complex transaction addresses the critical
community needs for upgraded affordable housing, supportive services for low-income residents,
and affordable units for larger families.

Provided NMTC financing in the amount of $8.7 million to expand a school campus in
Richmond to include additional classrooms, a gym, and a community center (including a stage
and fine arts area). The development eliminated a blighted vacant lot by expanding the existing
campus to include grades K-3, nearly doubling the total student population. The previously
existing facility only housed grades 4-8. The development was expected to create 15 new jobs
and expand after- school programming. The school, which serves LMI students, is in a low-

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income census tract where the median income is just 16% of AMI and the poverty rate is 65%.
This financing meets important community needs in that it provides education and after-school
programs for LMI youth, transforms a blighted vacant lot into a productive community facility,
and contributes to revitalization efforts in Richmond’s East End.

S. Washington

Provided a LIHTC equity investment of $14 million to help finance the new construction
of a 130-unit affordable housing development in SeaTac, Washington. All units are restricted to
LMI households earning up to 30%, 50% and 60% of AMI (13, 65 and 52 units, respectively).
Twenty-six units will be set aside for persons with intellectual or developmental disabilities
(IDD) and include a range of accessibility elements. In addition, eight of the 26 units will be
subsidized by project-based vouchers funded through the King County Housing Authority to
serve non-elderly persons with disabilities. A nonprofit organization with a longstanding history
of serving disabled persons will occupy the ground floor of the property as its headquarters; the
organization will also provide services to residents living with IDD who reside in the 26 units set
aside for persons with disabilities. These services will feature individualized programming
designed to support residents’ housing stability, health, financial wellness, and employment
success. The property’s developer, one of the strongest nonprofit development and property
management companies in the region, will also provide services to all residents under its “Family
Services Model” which focuses on health and wellness, success in schools, financial literacy,
housing stability and community participation. The development is considered “transit-oriented”
as the site is located within a half-mile of a bus stop and light rail station; it is also conveniently
located to other amenities such as a grocery store, shopping area, fire department, elementary
school, park, childcare, and senior center. The property will also include 27 three-bedroom units
targeting large families. In addition to funding from CONA, this complex project involved public
financing from the Washington State Housing Trust Fund and King County. This development
provides much-needed affordable housing for LMI households and, in particular, large families
and tenants with intellectual or developmental disabilities, in a high-cost market with a growing
renter population.

Provided $44.9 million in financing for the construction of a six-story, mixed-use

development in Seattle, providing 156 units of affordable housing, childcare, and other co-
located community resources for LMI residents. CONA’s financing included two separate
construction loans totaling $23.4 million, and an additional $21.5 million in LIHTC equity. Of
the 156 units, 64 are reserved for residents with incomes up to 60% AMI. The remaining 92 units
are reserved for very low- income residents with incomes up to 30% AMI, supported by
development-based Section 8 subsidies. Thirty-one units are set aside for persons with
disabilities. The unit mix includes 25 three-bedroom and seven four-bedroom units, providing
affordable housing for larger families. The development includes a childcare and early education
facility that serves residents, as well as a commercial space available for use by community
organizations. This transaction involved a particularly complex financial structure that leveraged
significant public financing from federal, state and city levels as well as three private financial
institutions (including CONA). In addition, CONA demonstrated flexibility by making an
advance commitment to provide the permanent loan through Freddie Mac with a rate lock good
for 30 months. This deal structure provided much-needed stability during the construction and
lease-up phases. The development sponsors, which have been approved by the Seattle Public

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Development Authority, have substantial experience developing and preserving affordable
housing in Seattle. Rising rents in surrounding neighborhoods have priced out many residents,
creating a critical need for affordable housing to stave off further displacement of LMI
households. Located on the site of Seattle’s first-ever publicly subsidized housing community
dating back to the 1940s, this development not only continues the tradition of providing high
quality affordable housing but elevates it by providing childcare and other much-needed
community resources.

T. National / Outside AA

Provided a loan of $41.6 million to a public school district in Mississippi to finance

capital improvements at various schools in the district. Almost all (99.9%) of the students in the
district are from LMI families. This financing was especially important due to the district’s
declining enrollment and, consequently, declining support from the state. The decreases in
enrollment resulted from declining population in the area (due at least partly to lower birth rates)
and competition from charter schools. This transaction illustrates CONA’s willingness to help
address critical needs in areas beyond its footprint.

Provided a $2 million loan to a CDFI that works to improve housing conditions for the
rural poor, with an emphasis on the poorest of the poor in the most rural places. The organization
will utilize the loan proceeds to capitalize its lending program, which lends to affordable housing
developers operating in rural communities. CONA’s loan contributes to efforts to increase the
supply of housing, and improve the conditions of rural communities, throughout the country.

Provided NMTC financing in the amount of $24.9 million for the construction of a new
hospital in a rural county in Mississippi. The new facility replaced an existing hospital that was
old and in poor condition. The new hospital has, among other features, an emergency room,
health and specialty clinics, an outpatient surgery center, and a 40-bed nursing home facility. The
site is 25 miles from the nearest emergency room. The facility was replaced rather than
renovated because the latter would have required difficult staging, planning, and working around
existing operations. In addition, construction of a new facility was found to be cheaper, and it
allowed for existing operations to continue without disruption or inconvenience during the 24-
month construction period of the new facility. Without NMTC financing, the county would have
needed to rely on the passing of a much larger bond issuance, which has been repeatedly
unsuccessful in the past 40 years because the county is economically distressed, and the public is
not inclined to support additional taxation via general obligation bond financing. CONA’s
financing was highly responsive to a community’s need for modern health care facilities.

Provided loans totaling $7.3 million and invested the same amount ($7.3 million) in
LIHTC equity to help finance the rehabilitation of two affordable housing properties in
Louisiana and one in Mississippi. The properties have a total of 87 units, 84 of which are LIHTC
units and restricted to LMI households with incomes up to 60% of AMI. All 84 LIHTC units
receive subsidies from USDA Rural Development. Each property was an “occupied
rehabilitation,” meaning that residents were not displaced during the rehabilitation process.
These properties are part of an investment fund that includes 22 other properties and nine other
investors, resulting in added complexity in underwriting. The bank’s financing addressed the

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need for retention and upgrading of affordable housing properties, including in rural and semi-
rural areas.

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 (;+,%,7

Additional Information on Grants and Philanthropic Activities

A. New York CSA

Provided $2.05 million in grants to support New York City’s largest organization fighting
poverty. CONA has supported the organization since 2017. Most recently, in 2023, CONA
provided a grant of $500,000 to holistically support young adults in the Bronx, the most
impoverished county in New York State. As part of CONA’s partnership with the organization,
the grant will support four Bronx-based grantees, each of which addresses challenges faced by
at-risk youth. The first of these grantees addresses the challenge of low bachelor's degree
attainment among the City’s low-income and other underserved students through
comprehensive academic, counseling and holistic support over four years. The second grantee
addresses the challenges faced by disconnected Bronx youth with college-access and job
placement services. The third grantee is an alternative-to-incarceration program designed to
provide comprehensive support to prevent youth from being reconvicted within two years of the
program. The fourth grantee connects Bronx young adults to food and nutrition assistance,
housing support, income support, and health-care programs. The overarching goal of CONA’s
$500,000 grant is to provide a comprehensive and coordinated set of services that address the
unique challenges of at-risk young adults. Over three decades, CONA’s partner organization has
invested more than $3 billion in support of LMI families.

Provided $168,000 in grants to a nonprofit organization dedicated to creating pathways to

prosperity for underserved New York entrepreneurs, supporting them as they launch and grow
their businesses through access to credit and financial education, among other services. The
organization provides loans of $1,000 to $75,000 for start-up, business expansion, and
refinancing. It also provides a broad range of technical assistance services including pre-loan
counseling, financial literacy, business planning, post-loan counseling, and workshops. CONA’s
grants supported the organization’s technical assistance programs. To illustrate the
organization’s impact, from 2017 through 2022 it provided technical assistance to 2,869 clients
through 21,361 hours of training and counseling. As a result, 141 new businesses were started
and 1,857 existing businesses expanded, creating 352 new full-time jobs and 233 part time-jobs,
and retaining 2,936 jobs.

CONA associates provided 401 hours total of CD service to a New York nonprofit
organization whose mission is to close the opportunity divide by ensuring that LMI young adults
gain the skills, experiences, and support that will empower them to reach their potential in higher
education and their careers. Classroom training in technical courses, and soft-skills training such
as time management and networking, equip students with the attitudes, behaviors, and versatility
needed to excel in the 21st century economy. Students then enter an internship with a corporate
partner in order to put their classroom training into practice. The volunteer service hours, most of
which were pro bono services provided by associates from CONA’s human resources and
technology areas, trained program participants on resume writing and interviewing skills. CONA
also provided the organization with $65,000 in grants. CONA’s efforts served the critical
community needs of workforce development and increasing self-sufficiency for the LMI
population.
 Provided grants totaling $190,000 to support a New York City nonprofit organization
whose mission is to aid historically disadvantaged individuals create thriving and resilient small
businesses to help close economic disparities. A portion of the grants supported the
organization’s program that addresses the needs of vulnerable small businesses throughout all
phases of a disaster, from pre-disaster preparation to post-disaster recovery, including
strengthening business operations. Specifically, this portion of the grants supported COVID-19
pandemic relief and the organization’s core mission to promote economic development through
small business lending and technical assistance for underserved small businesses . The
remainder of the grants supported the organization’s technical assistance program for small
businesses. In addition, CONA design associates provided 74 hours of pro bono service to help
the organization better evaluate its customers’ needs, and to identify opportunities to improve the
customer experience. Community needs addressed by CONA include providing support and
technical assistance for small businesses, including pandemic relief.

B. Philadelphia MMSA

Provided grants totaling $110,000 to support a Wilmington organization that serves as a

community center for LMI teens. CONA’s grants support a program that provides career
pathways to participants in sustainable and growing fields. The program, delivered by
organization staff and partner organizations, begins with personal development and soft skills
training, followed by career-specific training and work experience. Specifically, CONA’s
funding provides stipends for very-low income young adults to encourage participation and
program completion. In 2022, the organization exceeded its goals with 172 enrolled young
adults and a 90% completion rate. In addition, 90% of those who completed the program went on
to work experience.

Provided a grant of $125,000 to support the programs of the Philadelphia chapter of an

organization that works to increase economic opportunities for formerly incarcerated people, in
order to improve their lives and help them remain in their communities. The organization
provides low-interest loans and financial coaching to formerly incarcerated people, helping them
build credit and achieve their self-determined goals. CONA’s funding helps address a critical
need, as people who have been incarcerated face often-permanent barriers to securing
transportation, housing, employment, and capital for building a business. When individuals are
released from jail or prison, they are further burdened by court-ordered debt. Most are ineligible
for traditional bank financing or are subject to prohibitively high interest rates. These combined
hurdles limit the economic opportunity of formerly incarcerated people and prevent them from
reaching their potential. As a result, some return to criminal behavior, increasing the likelihood
of reincarceration and damaging the stability of their families and communities.

A CONA executive provided 241 hours of service on the Board of Directors of a

Wilmington nonprofit organization that offers transformational programs that positively impact
LMI individuals, families, and communities. This executive has served as a Director of the
organization for over 11 years and as the Board Treasurer for eight years. Many of the hours
were incurred during 2020, as the Board steered the organization through the COVID-19
pandemic. The organization’s programs and services include an early learning center, along with
youth development, family services, and comprehensive housing counseling programs, all of
which are designed to empower LMI populations by providing them with the tools and resources

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they need to be self-sustaining. The early learning center is a “5- star” (highest rating) program
according to Delaware Stars for Early Success, whose mission is to assess, improve, and
communicate the level of quality in early care and education and school-age settings. CONA also
provided $25,000 in grants to the organization to help support its programs. CONA’s ongoing
activities demonstrate a close, long-term partnership with an organization that addresses a variety
of critical needs of LMI populations.

C. Washington, DC CSA

CONA provided a total of $330,000 in grants to an organization that serves as a business

accelerator and expert network serving socially and economically disadvantaged businesses. It
educates businesses on becoming bankable; equips businesses to pursue government contracts;
and elevates business performance in all areas during rapid growth and expansion. Most recently,
in 2023, CONA provided $175,0000 to fund a six-week program to help small businesses win
federal government contracts. The program offers access to mentoring and networking, along
with in-person and online training focused on the development of a compelling value proposition
and a capture strategy for federal government contract awards. The program is for government
contractors certified in the SBA 8(a) business development program for small and economically
underserved businesses. The organization has conducted six 8(a) program sessions since 2019,
with CONA providing support each year. The 125 SBA 8(a) companies that have graduated from
the sessions to date reported generating $36 million in new contract revenues.

CONA provided $300,000 in grants to a youth organization with a mission to improve

the lives of runaway, homeless, abused, and neglected at-risk youth and their families within the
District of Columbia and inner-beltway communities in Prince George’s County, Maryland. The
organization provides shelter, counseling, life skills training and positive youth development
activities for approximately 1,500 youth and 5,000 family members each year. The
organization’s services have always welcomed LGBTQ+ youth, and it has increased its efforts to
provide services to this population in recent years. CONA provided a $150,000 grant in 2023
that will enable the enhancement of these efforts. In 2022, CONA provided a $100,000 grant to
support the organization’s Emergency and Extended Transitional Housing for Homeless Youth
program. CONA has also supported the organization by providing $50,000 in grants to support
financial education. In addition, CONA Data, Human Resources, and Design associates provided
529 hours of pro bono services to the youth organization to automate, streamline, and improve
the organization’s programs.

Provided grants totaling $214,000 in support of a Baltimore nonprofit organization

whose mission is to restore the history and prosperity of neighborhoods and create inclusive
and equitable communities where all residents have access to opportunity. It accomplishes this
mission by rebuilding homes and fostering enduring community relationships. Since 2008, the
organization has invested over $114 million in homes and developments that revitalize
communities without displacing people. These investments have provided decent homes to
hundreds of families in need. Of CONA’s $214,000 in grants, $75,000 supported the
predevelopment of scattered-site affordable housing in Baltimore. Another $50,000 helped
fund the revitalization of East Baltimore’s Johnston Square neighborhood. The remainder of

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the funds supported other organization initiatives, including another scattered-site
development. In addition, CONA associates provided eight hours of financial and homebuyer
education for the organization’s clients. The bank’s support addressed the critical needs of
affordable housing and financial and homebuyer education for LMI populations.

Provided grants totaling $700,000 to support the local chapter of a national nonprofit
organization whose mission is to advance economic equity through rigorous training in
technology careers and to connect skilled talent to leading businesses. It believes a thriving
workforce starts with equitable access to education. The organization focuses on motivated and
curious adults who are unemployed or underemployed, providing technical and business skills
to launch successful careers in technology. In response to the impact the COVID-19 pandemic
had on LMI women, the organization launched a virtual software engineering apprenticeship.
The training is delivered remotely and on a modified schedule, providing flexibility and support
for parents or others with caregiving responsibilities. The bank took a leadership role in the
program by providing seed funding of $400,000. The remaining $300,000 in grant funds
supported general operations and program expansion. In addition to grant funding, CONA
provided 223 hours of CD service support for participants in the organization’s various
programs, helping them with mock interviews, resume preparation, and informational
interviews. Of the 223 hours, 114 represented pro bono service provided by CONA technology
and human resources associates. As an illustration of the organization’s impact, in 2022 the
national organization supported more than 4,500 learners and alumni on their journeys. In
addition, 80% of the national organization’s graduates from 2021 have launched careers
earning nearly three times their pre-training wage. CONA’s comprehensive efforts have helped
address the need for workforce development and self-sufficiency skills for LMI populations.

CONA partnered with a school district to deliver computer science skills to six middle
schools. The bank recognizes that the pathway to a career in computer science begins with
education in the early years, yet access to early opportunities in computer science is limited. A
study published in December 2020 found that while 47% of high schools in the United States
offer computer science education, the majority are not in LMI communities. Even where
computer science courses are available, the number of minority and female students enrolled in
those courses remains disproportionately low. In response, CONA continued to provide
significant resources to Capital One Coders, a signature program designed to teach valuable
computer science skills. Launched in 2014, the program connects Capital One technologists with
students at a critical period in their development. Together they explore mobile app
development, web design, artificial intelligence, cybersecurity, and other emerging technologies
through engaging, hands-on mentorship. During the four-year period from 2020 through 2023,
CONA technology associates provided 13,608 hours of pro bono assistance, working with
students from schools that primarily serve LMI populations. Many of these hours were provided
virtually during the pandemic.
D. Arizona

Provided grants totaling $228,500 to a Phoenix nonprofit organization whose mission is

to drive economic and political empowerment for traditionally underserved people. It
accomplishes this by offering programs that help small and emerging businesses, and by helping
individuals and families achieve self-sufficiency by providing accessible healthcare, affordable

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housing, quality education, access to meaningful work, and political representation. A majority
($206,000) of the grants supported the organization’s CDFI, whose mission is to build stronger
communities by providing access to affordable capital through nontraditional small business
financing resources. The CDFI is committed to addressing the lack of access to affordable capital
and provides economic opportunities for small and emerging small businesses to start and grow.
The remaining portion of CONA’s grants ($22,500) supported an innovative pilot project to
provide youth aged 17- 24 with the opportunity to explore STEM-focused careers through virtual
reality headsets. CONA’s funding addresses the needs for capital for small and emerging small
businesses and for workforce development for LMI youth.

CONA technology associates provided 242 hours of pro bono service to benefit a
Phoenix nonprofit financial counseling agency that helps people transform their financial
situation with one-on-one guidance to pay off debts, regain financial independence, and save for
the future. Most of the organization’s clients are LMI. An industry pioneer and leader, it has
supported consumers in financial distress since 1987. Bank associates helped develop technology
applications for the organization.

E. California

CONA provided grants totaling $182,053 to an organization that strives to combat

poverty, prevent homelessness and end financial and housing crises in Los Angeles. The
organization integrates effective financial capability, housing, and supportive services that are
essential for LMI individuals and families to achieve economic inclusion, mobility and,
ultimately, financial security. CONA’s funding supports financial counseling for individuals and
families that seek to establish or repair their credit. Services include helping clients identify and
access responsible financial products and services, establish or improve their credit, increase
their savings, and lower their debt. Clients also have access to housing and supportive services
and the organization’s Volunteer Income Tax Assistance (VITA) program for free tax
preparation. In addition, CONA Brand and Human Resource associates provided 119 hours of
pro bono service to enhance the organization’s brand positioning and human resource policies to
attract new talent, donors, and community members who could benefit from their services.
CONA associates also provided six hours of financial education in both English and Spanish for
organization clients.

CONA provided a total of $115,000 in grants to a CDC with a mission to provide a

comprehensive array of social welfare and community development services to assist LMI
individuals and other persons in need, and to contribute to community revitalization and cultural
preservation in the Little Tokyo neighborhood in Los Angeles. Grants totaling $80,000 will
provide funding for a resident services support program, which provides bilingual case
management, employment preparedness, childcare referrals and financial wellness programs to
empower people to achieve greater self-sufficiency. In addition to these services, the Program
assists clients with their deferred rent and connects clients to landlords to establish payment
plans. The provision of these services is intended to reduce the number of evictions and allow
more families to maintain their housing. The remaining $35,000 of CONA’s grant funds
supported a small business program and pandemic emergency relief.

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 Provided $145,000 in grants to the San Francisco chapter of a national nonprofit housing
organization that creates stable, vibrant, and healthy communities by developing, financing, and
operating affordable, program-enriched housing for LMI families, seniors, and people with
special needs. CONA’s most recent grant, for $50,000 in 2023, supports a program designed to
increase housing and financial stability for at-risk, low-income, homeless residents living in the
organization’s affordable housing communities in San Francisco. Recognizing that housing alone
cannot address complex challenges, the organization also provides comprehensive resident
services including a focus on housing and financial stability, health and wellness, and education.
CONA has supported the San Francisco organization since 2019.

In 2023, CONA provided a $50,000 grant to a CDFI that makes small business loans
ranging from $5,000 to $100,000 to financially marginalized entrepreneurs. The CDFI’s loans
offer affordable rates and include a restorative approach, which includes modifications on a case-
by-case basis if the business runs into challenges. The organization also offers business
consulting and training. CONA’s 2023 funding supports small businesses in Oakland.
Previously, during the period 2020 through 2022, CONA provided $60,000 in grants to support
the CDFI’s programs, including pandemic response, in San Francisco and Oakland.

In 2022 and 2023, CONA provided a total of $90,000 in grants to a nonprofit health
system to support its workforce training program in Placer County. The program trains LMI
individuals to enter the healthcare field in areas such as business data analysis for healthcare
administration. In addition, CONA associates provided a total of 11 hours of financial education
for LMI clients of the health system.

F. Colorado

CONA associates provided 201 hours of CD service, and CONA made $65,000 in grants,
to support a Denver nonprofit organization whose mission is to create sustainable housing
opportunities for LMI households through outreach, education, and housing development. The
services involved providing financial education in various subjects including understanding
credit reports, savings success, and tax basics. The grants supported the organization’s post-
purchase counseling and homeownership retention program. CONA’s support addressed the
community need for housing stability for LMI households.

Provided a grant of $50,000 to the Boulder chapter of a nonprofit organization that

provides opportunities for Native Americans to develop financial assets and create wealth by
assisting in the establishment of strong, permanent institutions and programs for all Native
American communities. As a CDFI, it provides Native American communities with the tools and
capital support required for real and sustainable job creation, small business development,
commercial real estate development, and affordable housing. The organization also offers basic
banking services and financial literacy training to underbanked Native Americans. This grant
helped the CDFI provide COVID-19 relief for Native Americans in the AA, a critical need. In
addition, CONA provided $100,000 in grants to support the parent organization’s national
financial education and related programs.

G. Florida

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 Provided $175,000 in grants to the Miami chapter of a nonprofit organization dedicated
to helping LMI entrepreneurs build successful businesses that provide for their families and
improve their communities. The organization offers a variety of programs involving financial
education, mentoring, and access to capital. Of CONA’s total grant funding, $120,000 supported
these programs. The remaining $55,000 supported the organization’s efforts to provide COVID-
19 relief to small businesses. CONA’s support addresses the community need to support
underserved small businesses, including during the pandemic.

CONA associates dedicated 285 hours of pro bono service to benefit an organization that
provides food and other services to LMI individuals and families in the Tampa area. Of these
hours, CONA data scientists provided 208 hours to help the organization identify its clients’
behavior patterns. The remaining 77 hours were devoted by bank technology associates who
conducted an external network vulnerability test for the organization. CONA also provided
$80,000 in grants to support the organization’s mobile pantries and its workforce development
program for individuals facing barriers to employment. CONA’s support addresses the need to
provide food and other necessities to LMI populations.

H. Georgia

Provided a $1 million grant to a foundation whose mission is to drive economic progress

through public policy, advocacy, and political engagement. CONA’s grant funded the
organization’s program that supports underserved small businesses and emerging entrepreneurs
in Fulton County. The funds were used to support curriculum development and technical
assistance for the organization’s clients. CONA’s very substantial grant helped address the need
to support underserved small businesses and entrepreneurs.

CONA associates from human resources, technology, and other areas provided 1, 412
hours of virtual pro bono service to benefit the clients of an organization that empowers
promising LMI, underrepresented young people, including first-generation college students and
students of color, with the skills, confidence, experiences and networks necessary to transition
from college to strong first jobs, which lead to meaningful careers and lives of impact. Through
partnerships with universities and employers, the organization implements innovative career
teaching and learning into the undergraduate experience for these students. The CONA
associates helped students with workforce development training, specifically career mentoring
and mock interviews. CONA’s very substantial pro bono services addressed the need for career
development support for LMI young adults.

I. Illinois

Provided $125,000 in grants to a social service organization that supports LMI

populations with child and elder services, employment training, family counseling, and housing
and financial education. The organization’s objective is that all clients become thriving residents
of the greater Chicago community. CONA’s funding supported the organization’s secured credit
card program, which is specifically designed to help participants improve their credit and savings
as well as their overall financial literacy. The program is supported by a suite of employment and
training programs that further help LMI residents achieve a higher standard of living and a more
balanced family budget.

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 Provided $250,000 in grants to a nonprofit organization with a mission to create
community ownership and build community wealth among LMI individuals and families living
in southwest Chicago and suburban Melrose Park. CONA has supported the organization since
2018. Most of CONA’s funding provided support for a program that combats the displacement
of LMI families by increasing and sustaining homeownership and wealth. The program includes
financial wellness education and coaching, affordable lending products, and realty services. The
remainder of CONA’s funding supported the organization’s development of 45 permanently
affordable housing units.

CONA associates provided 5,847 hours of CD service for a Chicago nonprofit

organization that supports inner-city schools. The organization accomplishes its mission by
providing scholarships, operational improvements, academic programs, and leadership
development with the goal of strengthening schools and whole communities and preparing
students for life-long success. Almost all (5,808) of the CD service hours were pro bono services
provided by CONA technology associates to teach coding skills to LMI students served by the
organization. The remaining 39 hours involved financial education provided by CONA
associates to LMI students. Many of the service hours were delivered virtually during the
pandemic. In addition, CONA provided the organization with $253,000 in grants to support
various programs and the organization’s pandemic emergency fund to facilitate virtual learning.
These efforts addressed important community needs of increasing financial education and
STEM-related learning opportunities for LMI youth, and pandemic support for nonprofit
organizations and their clients.

J. Louisiana

Provided a $50,000 grant to a New Orleans organization whose mission is to respond to

the affordable housing needs of women who are single and head of a household by building
affordable, tiny homes. CONA’s grant will directly support a home build, which will be sold to
an LMI individual at a price far below market rate. The proceeds from the sale of the house will
be used to build another home and to fund the organization’s educational programs.

CONA associates provided a total of 803 hours of financial education for school-age
children in the Baton Rouge area. The children were students from schools, or clients of
nonprofit organizations, that primarily serve children from LMI families. The CONA associates
presented a program that makes financial education fun, engaging, and connected to real life.

Provided $300,000 in grants to a nonprofit health system that serves Louisiana. A

majority of the grant funds support the organization’s workforce development program to close
the nursing shortage in Louisiana by creating more opportunities for aspiring nurses of all
backgrounds. The organization partners with colleges, universities, and high schools around the
state to identify nursing candidates. This innovative program, the only of its kind in the state, is a
free, four-year dual enrollment program that provides students from various parishes the
opportunity to earn college requirements for Licensed Practical Nurse (LPN) programs. The
program launched in 2023 with a cohort of 20 students. Trainees complete coursework and
clinical requirements equivalent to other state-approved LPN programs. In addition to the
intensive healthcare and medical coursework, trainees complete “impact training” provided by
the health system, which includes workplace ethics training, communications, and problem-

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solving strategies. In addition to supporting the LPN program, CONA helped fund a program
that trains both incumbent workers and job seekers from non-traditional or under-skilled entry
level career pathways for roles in the healthcare industry. In addition, CONA associates provided
financial education training for the organization.

Since 2006, CONA has supported a local foundation with a mission to drive positive
impact through philanthropy, leadership, and action in the greater New Orleans region. The
foundation provides grants, guidance, and technical assistance to area nonprofits that serve a
variety of needs for the underserved. Key among the initiatives the foundation supports is
workforce development. CONA made a total of $625,000 in grants to the foundation during the
years 2020-2023 to support workforce development and job creation and retention, and relief
efforts related to the COVID-19 pandemic and Hurricane Ida. A key program focused on
retraining workers from the hospitality and other tourism-related industries who were hit hard by
the pandemic. The foundation and its partners identified areas where there was a shortage of
qualified employees and created a program to provide training in those skill sets (e.g.,
construction, healthcare and childcare). CONA’s partnership with this foundation addressed
critical and urgent CD needs of a community that had been devastated by natural disasters and
the pandemic.

K. Massachusetts

In 2023, CONA provided a $75,000 grant to a Cambridge CDC with a mission to

promote equity by creating access to stable housing and building pathways to economic
opportunity. The organization’s programs include affordable housing, education, job training,
and comprehensive support services. Its adult training program, Career Connect, is an intensive,
nine-month education and training program that helps adults develop knowledge and skills in the
biomedical and technology fields. Its Financial Opportunity Program provides free on-site and
mobile programming in tax preparation, credit education and asset building. The bank’s $75,000
grant supports the Career Connect and Financial Opportunity Programs. CONA provided the
CDC with additional grants from 2020 through 2023 totaling $135,000, including $25,000 to
support the Financial Opportunity Program and $110,000 to support job training. In addition,
through 99 hours of pro bono engagement, CONA’s Communications team developed a content
and channel strategy for the CDC and held a media training session for its executive committee.

CONA has partnered since 2015 with a Boston organization that empowers
communities to access and use digital tools to overcome barriers and advance lives. Its
programs teach digital skills, provide the opportunity for program graduates to receive a new
computer, and help participants acquire low-cost, high-quality internet service. The bank has
provided the organization with a total of $804,875 in grants since December 31, 2019. Of this
amount, $444,875 supported its virtual learning program. Another $100,000 was in the form of
capacity-building grants to help the organization build for the future. The remaining $260,000
supports the organization’s programs and operations. In addition, CONA associates provided
18 hours of financial education (including three hours virtually during the pandemic) for
organization clients. During 2023, 74% of students leveraged their digital skills and tools to
improve their grades; and 54% of graduates got a new or better job, had a pay raise, entered a
work training or new education program, or started a business. The bank’s very substantial

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assistance to the organization addressed the critical community needs of (1) closing the digital
divide by providing hardware, internet access and web skills training to the LMI community,
and (2) enabling nonprofit organizations to continue providing their services during the
COVID-19 pandemic.

In 2023, CONA provided a $75,000 grant to a CDC whose mission is to transform the
lives and amplify the voices of Boston residents who have been excluded from prosperity. The
organization develops affordable housing, provides services that help people build on their
strengths, and helps small businesses formalize, stabilize, and grow. The bank’s funding will be
used to provide individualized technical assistance to small businesses and aspiring
entrepreneurs in Boston and adjacent communities. The vast majority of the organization’s
clients have fewer than 20 employees, with 80% employing fewer than five individuals.
Common challenges include limited business networks, poor or limited credit, limited access to
capital, linguistic barriers, and demographic and market challenges. During the 2020-2022
period, CONA provided an additional $110,000 to support the organization’s small business
services and pre-development of a 58-unit affordable housing complex. In addition, CONA
technology associates devoted 211 hours of pro bono service to strengthen the organization’s
fundraising and reporting abilities.

L. Michigan

Provided $150,000 to a microloan fund to support underserved entrepreneurs who cannot

qualify for a CDFI loan or mainstream financing sources. The mission of the fund is to provide
access to capital to historically underserved populations and/or populations located in LMI
neighborhoods in Detroit, Hamtramck, and Highland Park who have been excluded from
traditional and alternative capital sources. The fund’s mission includes small business education,
building credit scores, and encouraging financial stability that will help aspiring entrepreneurs to
transition to mainstream banking. The fund provides access to capital to small businesses in the
form of loans ranging from $5,000 to $50,000. It also offers pre-loan technical assistance for
aspiring entrepreneurs that includes but is not limited to business plan development, the pre-loan
application process, understanding financial statements and the need for projections, and
financial education to existing and emerging underserved entrepreneurs. CONA’s funds have
supported counseling, financial education and training services for small businesses.

Provided $70,000 in grants to support the workforce development program of a nonprofit

organization in Detroit. The program includes skills building, education, career counseling, and
retention support. The organization’s mission is to enhance the quality of life, success, and self-
sufficiency of individuals and families in Detroit. One of the many ways the organization
accomplishes its mission is by providing a broad range of programs and services such as
workforce development, affordable and supportive housing, homeownership services, small
business development, financial coaching, and adult literacy. In addition, CONA associates
provided pro bono services by conducting mock interviews for clients of the organization.

M. Minnesota

A CONA associate serves on the Board of Directors of a nonprofit organization that

partners with parents or guardians, volunteers, and others in the community to create and support

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one-to-one mentoring relationships with children and teens. It aims to help each child achieve
higher aspirations, greater confidence, better relationships, and educational success; and to avoid
risky behaviors. Most of the youth served by the organization are from LMI families. CONA has
also provided the organization with $85,000 in grants. One grant for $20,000, made early in the
COVID-19 pandemic, helped equip the organization’s staff with the tools they needed to provide
virtual programming. The remainder of the grant funds supported mentoring programs. CONA’s
activities have helped address the needs for pandemic relief and support for LMI children and
teens.

CONA has provided $100,000 in grants to support a nonprofit organization that provides
affordable housing for LMI families in the St. Cloud area. It seeks to make simple, decent,
affordable shelter for all people a priority. A portion of CONA’s grants supported the
organization’s general operations during the COVID-19 pandemic, and the remainder supported
the construction of residential properties. In addition, CONA associates have provided 117 hours
of volunteers services for the organization. Of these hours, 100 involved pro bono service by
CONA technology associates who helped the organization evaluate the cost-effectiveness of
various technology platforms. In addition, CONA associates provided 17 hours of financial
education for the organization’s clients. These classes covered money basics, budgeting, and
smart spending. CONA’s activities addressed the need for affordable housing, combined with
financial education, for LMI households.

N. Nevada

CONA associates provided 219 hours of virtual CD service to support a nonprofit

organization that is a nationwide leader in information technology service delivery and education
exclusively for the nonprofit sector. Through one of its programs, the organization also helps
young adults train for entry-level technology jobs. The CD services were technology-focused
career training for LMI young adults in the AA, and 204 of the hours were pro bono services
provided by CONA specialists in technology and human resources. In addition, CONA provided
a $25,000 grant to support the organization’s vocational training and job placement programs in
the Las Vegas AA. CONA’s activities helped address the need for technology workforce training
for LMI populations.

In 2022 and 2023, CONA provided a total of $73,000 in grants to a Las Vegas
organization that assists LMI families and individuals in overcoming barriers and attaining self-
sufficiency through direct services, training, and referrals to community resources. It responds to
the needs of the poor, the homeless, and those in crisis who come to the organization as a place
of last resort. CONA’s grants supported a center for homeless youth operated by the
organization. In addition, CONA associates provided 77 hours of virtual pro bono service to
benefit clients of the organization. Bank associates helped the organization’s clients with
interviewing skills and resume writing. CONA’s actions helped address the critical need for
services for the homeless and others in crisis.

O. Ohio

In 2022 and 2023, CONA provided a total of $45,000 in grants to a Columbus

organization that supports the Central Ohio community by helping people find good jobs;

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supporting older adults and caregivers in navigating the challenges of aging; providing services
for refugees.; connecting people to community resources; empowering family self-sufficiency
through financial counseling; and engaging volunteers. CONA’s grants will support 600 clients
in obtaining new employment and 100 in obtaining emergency financial assistance in order to
maintain housing stability. The organization offers wraparound services while utilizing its
workforce programs to eliminate barriers that keep clients from achieving family stabilization.
Its integrated service delivery brings interdisciplinary staff together to collaborate on client needs
and goal setting, resulting in life-changing impact.

CONA technology associates provided 168 hours of pro bono service for a
Cincinnati nonprofit organization whose mission is to promote individual self-sufficiency
and community economic development by stimulating and supporting entrepreneurship
among LMI people. The organization is a partnership between human service agencies,
local banks, and other businesses. It provides financial education, business coaching, and
financing for entrepreneurs. The CONA associates helped the organization complete a
project by providing expertise in data integration, data access, and data reporting. The
bank’s support addresses the need to promote economic development for LMI populations.

P. Oregon

From 2020 through 2023, CONA provided $122,500 in grants to a Portland CDC that
strengthens the community by providing affordable housing, home ownership and small business
support, economic advancement, and educational opportunities. A portion of CONA’s funds
supported a program that provides one-on-one business support services including access to
capital, financial coaching, branding, marketing, and connections to direct sales opportunities.
Another portion funded micro-grants for small businesses served by the organization, awarded
according to priority based on need for financial assistance. The remainder of the grant funds
supported the organization’s launch of a mortgage lending program for first-time home buyers,
and expansion of its Individual Development Account program. To illustrate the organization’s
impact, during the 2020-2022 evaluation period its business support program provided 3,069
business advising hours for 70 entrepreneurs; 15 entrepreneurs were connected to direct sales
opportunities; and 20 entrepreneurs were connected with COVID-19 relief assistance. CONA’s
funding addressed the community’s needs for support for small businesses and microenterprises,
promoting homeownership, and encouraging savings to improve financial stability for LMI
populations.

CONA provided 49 hours of virtual CD service and made $55,000 in grants to support
the Portland chapter of a nonprofit organization that empowers women to achieve economic
independence by providing a network of support, professional attire, and development tools to
help them thrive in work and in life. Rather than underwriting a specific program, the grants
were flexible and provided general operating support during the COVID-19 pandemic and
helped fund the organization’s key programs. Twenty-seven of the volunteer hours involved pro
bono service provided by CONA associates who helped organization clients with resume-writing
and interviewing skills. The remaining 22 CD service hours supported the organization's Virtual
Financial Education Program, a six-week program jointly created by CONA and the
organization. This virtual program was tailored to meet the needs of participants during the

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pandemic. These efforts were highly responsive to the community’s needs to increase financial
education for the LMI community (primarily women heads- of-household) and access to
employment assistance.

Q. Texas

Provided grants totaling $130,000 to a Dallas nonprofit organization that provides vehicle
selection assistance and coaching to help LMI individuals and families overcome transportation
barriers so they can get to work, lead healthier lives, and avoid predatory lending. The
organization helps people improve their credit and purchase fuel-efficient, reliable cars,
financing them through its loan fund with a low-cost loan. CONA’s funding supported financial
coaching and vehicle selection, as well as a pilot apprenticeship program for people
underrepresented in the vehicle repair and service field.

Provided a $200,000 grant to a Houston organization whose mission is to unlock

opportunity by connecting families in underserved communities to affordable internet service
and computers, and delivering digital skills training. CONA’s grant supports a digital skills
training program designed to engage LMI adults, including those 65DQGRYHU. CONA’s efforts
address the critical need to close the digital divide.

Provided a $25,000 grant to a Community Development Corporation (CDC) that offers

housing opportunities, financial counseling, supportive services, and referrals to create stable,
self-sufficient LMI families in southeast Texas. The CDC has development contracts with
several cities, owns an affordable rental complex, and has been overseeing a downtown
revitalization program. CONA’s grant supports the maintenance of the CDC’s affordable rental
units.

A CONA executive dedicated 73 hours to serving on the Board of Directors of a

nonprofit organization whose mission is to close the hunger gap in North Texas by providing
access to nutritious food. In addition, CONA provided $142,000 in grants to support the food
bank’s programs, including but not limited to COVID-19 relief and weekend food distribution
for school children. Further, CONA technology associates provided 50 hours of pro bono service
helping the organization determine proper levels of user access to its applications.

CONA legal associates provided 954 hours of pro bono service to benefit the clients of
an Austin nonprofit organization that advocates for immigration justice through educating
communities, mobilizing volunteers, and legal mentoring. CONA’s attorneys helped families
gain asylum and resident status. CONA’s substantial efforts addressed the need to provide
assistance and stability for new immigrants.

R. Virginia

CONA is a founding board member and supporter of a Richmond nonprofit business

incubator and entrepreneurial hub where innovators can learn, collaborate, and grow. Founded in
2019, the organization supports startups and innovators with an engaged community, holistic
programs, targeted resources, and dynamic workspace to help them reach their full potential and
positively impact Virginia’s economic landscape. The incubator serves startup companies and
supports them with an expansive network of mentors, investors, corporate partners, and donors.

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CONA associates provided a total of 1,957 CD service hours to benefit the organization and
its clients. Eighty-two of the hours were in the form of board service provided by a CONA
technology executive. The remaining hours involved providing small business technical
assistance for incubator clients, including 401 pro bono hours provided by associates from
CONA’s technology and digital product management areas. Most of the services were performed
during the pandemic and were therefore delivered virtually. CONA demonstrated a high degree
of leadership by serving as a founding board member and supporter of the organization. CONA
also provided $250,000 in grants to support the organization’s operations and programs,
including during the COVID-19 pandemic. To illustrate the organization’s impact, during 2022
(1) it served 3,130 entrepreneurs and 173 companies; (2) its 46 post-revenue startup members
(those that have begun to generate sales and are working through the stages of efficiency and
scale) had a total of $111 million in revenue, a 41% increase from 2021; and (3) the organization
provided $450,000 in grants to support entrepreneurs from underrepresented groups. CONA’s
very substantial efforts have addressed the need to support startup businesses, including during
the pandemic.

During the period 2020 through 2023, CONA provided $650,000 in grants to a nonprofit
community-based organization that works to ensure high-quality affordable housing for LMI
residents of metropolitan Richmond. The organization, a longstanding partner of Capital One,
combines long-term solutions in affordable housing with ongoing support services to revitalize
neighborhoods. One of the grants, for $500,000, enabled the organization to provide three years
of free internet access and related training for all 823 residents (474 households) of one of its
affordable housing communities for seniors. The other grants helped the organization deliver
comprehensive support services for residents of another affordable housing development. In
addition to grant funding, associates from CONA’s Design team devoted 158 hours of pro bono
service in 2023 to help the organization analyze the efficiency of its scholarship program. This
program provides financial assistance to adult residents of the organization’s rental communities
seeking higher education. CONA’s ongoing support of this nonprofit partner has addressed the
critical community needs of closing the digital divide and increasing on-line access for LMI
senior populations, and comprehensive support services for LMI households.

Two CONA associates provided a total of 743 hours of service on the Board of Directors
of a local nonprofit organization whose mission is to assist individuals and families experiencing
homelessness to secure and maintain a home again. In support of this mission, each family’s
unique needs are matched with the best housing solution. These programs include emergency
shelters, bridge housing, and permanent supportive housing. The organization operates two full-
time shelters providing temporary housing and case management for families and individuals
experiencing a housing crisis. The board services were provided by two CONA associates,
including one executive, at different times during the evaluation period. In that capacity, they
assisted with numerous projects such as COVID-19 relief, fundraising, and the search for a new
executive director. In addition, CONA provided $61,092 in grants to support one of the
emergency shelters. CONA’s very substantial efforts addressed several important community
needs including the provision of housing and services for the homeless, pandemic relief, and
capacity building for nonprofit organizations.

S. Washington

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 Provided grants totaling $115,000 to a nonprofit organization that empowers individuals
with limited resources to improve their lives through small business ownership. In support of this
mission, the organization provides education and technical assistance to microenterprises and
aspiring small businesses. CONA’s funding supported the organization’s COVID-19 response
program, general operations, and technical assistance program, and addressed the community
need to support development of small businesses, including those started by LMI entrepreneurs.

CONA associates provided 176 hours of pro bono service in their field of expertise
(Data) to support an organization dedicated to providing credit and debt counseling and financial
education to consumers in order to help them make sound financial decisions and find debt
solutions to improve their financial futures. A large majority of the organization’s clients are
LMI. In delivering these services, bank associates helped the organization by recommending and
designing a data pipeline and central store for ongoing reporting needs. CONA’s efforts address
the community need for credit and debt counseling and financial education for LMI consumers.

T. National / Outside AA

From 2020 through 2023, CONA provided $2.9 million in grants and 580 pro bono
service hours to improve college access for LMI students nationally. This multi-year effort
started during the COVID-19 pandemic, which exacerbated the phenomenon of “summer melt,”
when high school graduates cancel their plans to attend college before classes begin. A major
barrier to improving college access, particularly for LMI and first-generation students, involves a
lack of information, in part due to overloaded school counselors who juggle caseloads of nearly
500 students per counselor, on average. Students’ lack of awareness about financial aid options
and the overall cost of college contributes to low completion rates of the Free Application for
Federal Student Aid (FAFSA) form and billions of dollars in federal student aid left on the table
each year. Capital One responded to this critical need by investing in a free virtual assistant
powered by artificial intelligence that served approximately 773,000 LMI and first-generation
students across the country from 2020 through 2022. Capital One associates also volunteered 580
pro bono hours to help optimize the virtual assistant’s technology. Early results demonstrated the
effectiveness of this intervention, including an engagement rate (i.e., the percentage of students
who sent at least one message to the virtual assistant) of 62.7%, significantly higher than the
average of 15% for similar interventions; and 18,000 hours saved that traditionally would have
been spent consulting with a college advisor. Capital One, in partnership with several community
organizations, has continued the positive momentum generated by the program’s promising early
results by expanding the virtual assistant and continuing to refine the technology to ensure
equitable access to different groups of students, including English language learners and students
of color. These efforts demonstrate CONA’s innovation in addressing the problem of college
access at scale; its responsiveness, in tailoring the technology to meet the needs of specific
student populations, with a focus on LMI and first-generation students; and its thought leadership
in the field of education and technology, in partnering with research institutions to publish white
papers and share the program’s learnings to further expand its impact and improve its
effectiveness.

During the COVID-19 pandemic, CONA provided grants totaling $1,029,521 to a

nonprofit organization that feeds the hungry through a nationwide network of food banks,

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pantries, and meal programs. CONA’s funding supported the organization’s pandemic response
efforts.

-16-
 APPLICATION

to the

OFFICE OF THE COMPTROLLER OF THE CURRENCY

by

CAPITAL ONE, NATIONAL ASSOCIATION

for prior approval to merge with

DISCOVER BANK

pursuant to
the Federal Deposit Insurance Act,
12 U.S.C. §§ 1828(c) and 1831u, and
the National Bank Act, 12 U.S.C. §§ 24, 36(d), 215a-1 and
12 CFR part 5

March 20, 2024

W/4848410v28
 INTERAGENCY BANK MERGER ACT APPLICATION
Check all that apply:
Type of Filing Form of Transaction Filed Pursuant to

‫ ܈‬Affiliate/Corporate Reorganization ց Merger ց 12 U.S.C. 1828(c)

տ Combination with Interim տ Consolidation ց 12 U.S.C. 215, 215a-c
Depository Institution տ Purchase and Assumption տ 12 U.S.C. 1815(a)
տ Non-affiliate Combination ‫܈‬ Branch Purchase and Assumption ց Other: 12 U.S.C. 24,
36(d) & 1831u
տ Other ______ տ Other ______

Applicant Depository Institution

Capital One, National Association OCC Charter # 13688

Name FDIC Cert # 4297
Charter/Docket Number
1680 Capital One Drive
Street

McLean VA 22102
City State Zip Code
Target Institution

Discover Bank FDIC Cert # 5649

Name Charter/Docket Number

502 E. Market Street

Street

Greenwood DE 19950
City State Zip Code

Resultant Institution (if different than Applicant)

N/A
Name Charter/Docket Number

Street

City State Zip Code

Contact Person
Of Counsel/Wachtell, Lipton,
Rosemary Spaziani Rosen & Katz
Name Title/Employer
51 West 52nd Street
Street
New York NY 10019
City State Zip Code
(212) 403-1342 [email protected]
Telephone Number Email

-ii-
 Table of Contents

Page

PRELIMINARY STATEMENT .....................................................................................................1

Executive Summary .........................................................................................................................2

The Companies and the Banks .........................................................................................................4

Terms of the Proposed Transaction .................................................................................................7

Required Approvals .........................................................................................................................8

Public Notice ....................................................................................................................................9

Factors for OCC Review ..................................................................................................................9

I. Interstate Banking Requirements ........................................................................................ 9

II. Financial and Managerial Resources and Future Prospects .............................................. 13
A. Financial, Capital and Liquidity Strength ..............................................................14
B. Managerial Resources ............................................................................................16
1. Governance Structure.................................................................................18
2. Employees ..................................................................................................19
3. Integration Planning and Experience .........................................................19
4. Risk Management ......................................................................................20
III. Anti-Money Laundering Compliance Record .................................................................. 37
IV. Competitive Effects .......................................................................................................... 38
V. Financial Stability Risk Considerations ............................................................................ 40
VI. Convenience and Needs Considerations of the Bank Merger .......................................... 48
VII. Commitment to the CRA .................................................................................................. 51
A. CONA CRA Performance Record .........................................................................52
1. CONA CRA Evaluation .............................................................................52
2. COBNA CRA Evaluation ..........................................................................55
B. Discover Bank’s CRA Performance Record..........................................................57
C. CONA/COBNA’s and Discover Bank’s CRA Activity Since Their Last
CRA Evaluations ...................................................................................................62
1. CONA/COBNA’s CRA Activity Since Their Last CRA
Evaluations .................................................................................................63

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 2. Discover Bank’s CRA Activity Since Their Last CRA Evaluations .........76
D. Pro Forma CRA Program at CONA ......................................................................81
Conclusion .....................................................................................................................................82

INTERAGENCY BANK MERGER ACT APPLICATION FORM

INFORMATION REQUESTS ................................................................................................84

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 Request for Confidential Treatment

Confidential treatment is being requested under the federal Freedom of Information Act,
5 U.S.C. § 552 (the “FOIA”), and the implementing regulations of the Office of the Comptroller
of the Currency (the “OCC”), for the information contained in the Confidential Exhibits Volume
to this application (the “Confidential Materials”). The Confidential Materials include, for
example, non-public pro forma financial information and information regarding the business
strategies and plans of (1) Capital One Financial Corporation (“COFC”), Vega Merger Sub, Inc.
(“Merger Sub”) and Capital One, National Association (“CONA”) and (2) Discover Financial
Services (“Discover”) and Discover Bank (“Discover Bank”), and other information regarding
additional matters of a similar nature, which is commercial or financial information that is both
customarily and actually treated as private by COFC, Merger Sub, CONA, Discover and
Discover Bank and provided to the government under an assurance of privacy. Certain
information in the Confidential Materials also includes confidential supervisory information,
which is protected from disclosure. None of this information is the type of information that
would otherwise be made available to the public under any circumstances. All such information,
if made public, could result in substantial and irreparable harm to COFC, Merger Sub, CONA,
Discover and Discover Bank. Other exemptions from disclosure under the FOIA may also
apply. In addition, investors and potential investors could be influenced or misled by such
information, which is not reported in any documents filed or to be filed in accordance with the
disclosure requirements of applicable securities laws, as a result of which COFC, Merger Sub,
CONA, Discover and Discover Bank could be exposed to potential inadvertent violations of law
or exposure to legal claims. Accordingly, confidential treatment is respectfully requested for the
Confidential Materials under the FOIA and the OCC’s implementing regulations.

Please contact Rosemary Spaziani (212-403-1342) or Richard K. Kim (212-403-1354)

before any public release of any of this information pursuant to a request under the FOIA or a
request or demand for disclosure by any governmental agency, congressional office or
committee, court or grand jury. Such prior notice is necessary so that COFC, Merger Sub,
CONA, Discover and Discover Bank may take appropriate steps to protect such information
from disclosure.

-v-
 PRELIMINARY STATEMENT

Introduction

Capital One, National Association (“CONA”) is hereby submitting this application (the
“OCC Application”) to the Office of the Comptroller of the Currency (the “OCC”), respectfully
requesting approval to merge Discover Bank (“Discover Bank”), a Delaware state-chartered non-
member bank, with and into CONA, with CONA as the surviving institution (the “Bank
Merger”). CONA’s parent holding company, Capital One Financial Corporation (“COFC” or the
“Company”) will acquire Discover Financial Services, the parent company of Discover Bank,
through a merger of Vega Merger Sub, Inc. (“Merger Sub”), a wholly owned merger subsidiary
of COFC, with and into Discover, with Discover continuing as the surviving corporation (the
“First Step Merger”). Immediately following the First Step Merger and as part of a single,
integrated transaction, Discover will merge with and into COFC, with COFC continuing as the
surviving corporation (the “Second Step Merger”). Immediately following the Second Step
Merger, Discover’s wholly-owned bank subsidiary, Discover Bank, will merge with and into
COFC’s wholly-owned bank subsidiary, CONA, with CONA continuing as the surviving bank
(the “Bank Merger,” and together with the First Step Merger and the Second Step Merger, the
“Proposed Transaction”). A copy of the Agreement and Plan of Merger on February 19, 2024
(the “Agreement”), for the Potential Transaction is in Exhibit 1.

CONA is submitting this OCC Application to the OCC for approval of the Bank Merger,
pursuant to 12 U.S.C. §§ 215a-1, 1828(c) (the “Bank Merger Act”) and 1831u (“Section
1831u”), and 12 CFR part 5. CONA is also seeking permission, pursuant to 12 U.S.C. §§ 36(d)
and 1831u(d) and 12 CFR part 5, to retain and operate the main office of Discover Bank as a
licensed branch of CONA.

In addition, CONA is seeking OCC permission to retain and operate as operating

subsidiaries Discover Bank’s subsidiaries, pursuant to 12 U.S.C. § 24 and 12 CFR § 5.34. More
detailed information about the subsidiaries of Discover Bank is provided below.

As of December 31, 2023, CONA had total consolidated assets of approximately $475.6
billion and total deposits of approximately $374.2 billion. CONA was well-capitalized as of
December 31, 2023. As of December 31, 2023, Discover Bank had total consolidated assets of
$1 billion and total consolidated deposits of $112.6 billion. Discover Bank was well-
capitalized as of December 31, 2023.

The Proposed Transaction will substantially enhance Capital One’s ability to distribute its
broad suite of consumer and business banking products and services, and better position the
combined organization to compete with the largest banking organizations in the United States.
Capital One will scale and leverage the benefits of its eleven-year technology transformation
across all of Discover’s businesses and the Discover payments networks to provide customers
and merchants expanded products and services within Capital One’s robust risk management
framework. These investments in the Discover payments networks also promise to promote
competition and financial stability by deconcentrating these already concentrated markets.

-1-
 Executive Summary

With this OCC Application, CONA is seeking the OCC’s prior approval for the Bank
Merger and permission, upon consummation of the Bank Merger, to: (1) retain and operate the
main office of Discover Bank as a branch of CONA; and (2) retain the subsidiaries of Discover
Bank as operating subsidiaries of CONA. As noted, the Bank Merger will occur immediately
following the Second Step Merger.

For all the reasons discussed herein, CONA submits that the Bank Merger and OCC
Application satisfy each of the criteria that the OCC is required to consider. The discussion in
this Preliminary Statement focuses on the required factors and considerations under the Bank
Merger Act and its implementing regulations, in light of the overlapping criteria under the
relevant regulatory provisions governing the Related Transactions.

In acting on this OCC Application, the OCC must consider the requirements for an
interstate transaction, the statutory limit on deposit concentrations, the financial and managerial
resources and future prospects of the institutions involved and their effectiveness in combatting
money laundering, the competitive effects of the Bank Merger, the extent to which the
transaction would result in greater or more concentrated risks to the stability of the U.S. banking
or financial system, the effects of the Bank Merger on the convenience and needs of the
communities to be served, and the relevant banks’ records of performance under the Community
Reinvestment Act of 1977 (the “CRA”).

The Bank Merger would meet the requirements for an interstate banking transaction
under Section 1831u. For purposes of that provision, the home state of CONA is Virginia and
the home state of Discover Bank is Delaware. The Bank Merger would result in CONA
controlling less than 3% of deposits nationwide – far less than the 10% nationwide deposit cap
under Section 1831u. In addition, the Bank Merger would be consistent with relevant deposit
cap concentration limits, age limits and community reinvestment statute requirements for a
permissible interstate transaction.

CONA and COFC are financially strong and well-managed and are committed to
maintaining their strong and prudent financial, operating and risk profiles upon consummation of
the Proposed Transaction. They have ample financial and managerial resources to consummate
the Proposed Transaction and successfully integrate Discover Bank and its subsidiaries.

CONA and Discover Bank, and their respective parent bank holding companies, are each
well-capitalized. CONA and Discover Bank, and their respective parent bank holding
companies, have capital ratios well in excess of the minimum capital ratios required for well-
capitalized status. On consummation of the Proposed Transaction, the capital and liquidity
resources of CONA and COFC would remain well above regulatory requirements and
supervisory expectations. CONA and COFC would continue to maintain prudent capital and
liquidity planning and associated risk management practices, including capital and liquidity
stress testing programs.

Capital One will continue to have strong managerial resources and risk management
systems to continue operating in a safe and sound manner and complete a successful integration

-2-
of Discover. Capital One has a robust risk management program in place, including for capital,
liquidity, credit, market, operational and compliance risks. To assist in the decision-making
process for the Proposed Transaction and planning for a successful integration, CONA and
COFC management led a comprehensive due diligence review of all lines of business and
functional areas of Discover and Discover Bank, including credit, compliance, risk management,
Bank Secrecy Act/anti-money laundering (“BSA/AML”), cyber security, liquidity, operations,
human resources, finance, internal audit and legal. A summary of key findings is included as
Confidential Exhibit A.

Capital One has implemented and maintains a strong and effective compliance risk
management program, including for compliance with the BSA and other AML laws; sanctions
restrictions issued by the U.S. Department of Treasury’s Office of Foreign Assets Control
(together, “BSA/AML/Sanctions Compliance”); and fair lending and other consumer protection
laws (“Consumer Compliance”). Capital One also has a strong Enterprise Risk Management
Framework that is applied across all risk categories and all three Lines of Defense to ensure
effective risk identification, management and reporting. Capital One will begin to apply its Risk
Management Framework and policies to Discover’s businesses and risk management functions
immediately upon closing, and will fully integrate Discover’s risk management functions into
Capital One’s programs through a comprehensive integration plan.

The Proposed Transaction will not substantially lessen competition in any market. To the
contrary, it promises to promote competition in two significant segments of the financial services
industry – debit and credit card networks – that would meaningfully benefit from the injection of
investment that COFC promises to bring. The parties do not overlap in any local banking market
as defined by the Federal Reserve Banks, and competition for deposits nationwide will remain
robust after the Bank Merger.

The Bank Merger will similarly not lessen competition with respect to credit card issuing.
Share and concentration levels for credit card issuing are well below safe harbor thresholds and
the industry is intensely competitive and dynamic – in part due to the ease with which issuers
and consumers can switch among products and services. In fact, the Proposed Transaction will
increase competition among credit and debit networks by strengthening Discover’s payments
networks to the benefit of the network users (both cardholders and merchants), thereby
facilitating more robust competition against Visa and Mastercard, the two leading operators of
debit and credit networks.

Following the Proposed Transaction, CONA’s pro forma assets will be approximately
$640 billion, which is still less than one-third of the average domestic assets held by each of the
four largest U.S. banks.

In addition, the Proposed Transaction would not pose any significant risk to the stability
of the U.S. banking or financial system. Capital One is a highly diversified financial services
provider based in the United States, subject to the oversight of the Federal Reserve and the OCC.
Both CONA and Discover Bank provide traditional banking services, for which there are
numerous competitors in all cases. Upon consummation of the Bank Merger, Capital One would

-3-
be less than one-third of the average size of the four largest U.S. banks1 and would remain a
Category III banking organization for regulatory purposes; and its globally systemically
important bank (“GSIB”) score would remain well below the threshold to be considered
systemically important. CONA’s insured deposits would be approximately 79% of its total
deposits, which is expected to be the highest insured deposit percentage amongst the 10 largest
U.S. banks. Moreover, while the Proposed Transaction would result in adjustments to Capital
One’s overall resolution planning, it would not complicate any resolution process in the event of
serious financial distress.

The resulting institution will benefit the convenience and needs of the communities
served by CONA and Discover Bank, including their customers, communities and employees, by
combining two organizations with strong customer-oriented cultures and compatible business
models. Both CONA and Discover Bank have a strong commitment to serving the needs of their
communities as demonstrated by each bank’s strong CRA performance record, as well as each
organization’s ongoing community engagement activities. Moreover, CONA is committed to
integrating Discover Bank and its activities into Capital One’s risk, compliance and CRA
framework. Both organizations are committed to supporting the needs of historically
underrepresented groups and continue to innovate solutions to support diversity within their
businesses and each of their respective geographies. There are no planned branch closures in
connection with the Proposed Transaction and Discover Bank customers will have access to a
broader set of financial products and services, including, but not limited to, full service digital
banking products and a robust network of 259 branches (as of June 2024, reflecting previously
determined actions unrelated to the Proposed Transaction), and 55 Capital One Cafés (as of June
2024, reflecting previously determined actions unrelated to the Proposed Transaction). CONA
has a long and proud history of innovation designed to benefit the consumer, and its flagship 360
Checking account is BankOn certified. CONA was also the first major bank to completely
eliminate overdraft fees.

Based on the foregoing and as explained in more detail below and in the exhibits to the
OCC Application, the Bank Merger and related transactions will satisfy all of the factors the
OCC must consider and, accordingly, this OCC Application is fully consistent with approval and
should be approved as soon as possible.

The Companies and the Banks

Capital One, National Association

CONA is a national bank with its headquarters and main office in McLean, Virginia.
CONA is a wholly owned subsidiary of COFC and currently operates licensed, domestic
branches in seven states (Connecticut, Louisiana, Maryland, New Jersey, New York, Texas and
Virginia) and the District of Columbia. CONA offers a broad spectrum of financial products and
services directly to consumers, small businesses and commercial clients, including retail and
commercial deposits, credit cards, auto loans, small business and commercial loans and cash
management services.

1
Based on consolidated asset size as of December 31, 2023.

-4-
 Capital One also offers products and services outside of the United States principally
through COEP, an indirect subsidiary of CONA organized and located in the United Kingdom,
and through a branch of CONA in Canada. Both COEP and the Canadian branch of CONA have
the authority to provide credit card loans.

As of December 31, 2023, CONA had total consolidated assets of approximately $475.6
billion and total consolidated deposits of approximately $374.2 billion.

CONA exceeds the requirements to be “well capitalized” under the regulations of the
OCC.2 As of December 31, 2023, CONA had a Common Equity Tier 1 risk-based capital ratio
of 13.1%, Tier 1 risk-based capital ratio of 13.1%, a total risk-based capital ratio of 14.3% and a
leverage ratio of 10.3%.

For additional information regarding CONA, please refer to Exhibit 2 for the public
portions of the Consolidated Report of Condition and Income for CONA for the quarter ended
December 31, 2023.

Capital One Financial Corporation

COFC is a Delaware corporation and the top-tier holding company for the Capital One
organization, a leading financial services provider headquartered in McLean, Virginia.

Established in 1994, Capital One is a diversified financial services provider with a history
of strong and sustainable financial performance that strategically positions it for growth across
its core businesses. Capital One offers a broad array of financial products and services to
consumers, small businesses and commercial clients through digital channels, branch locations,
cafés and other distribution channels. Capital One has continued to bring technological
innovations to the world of finance by being one of the first large enterprises to move entirely to
the public cloud.

Capital One is registered as a bank holding company under the BHC Act and a financial
holding company under the Gramm-Leach-Bliley Act amendments to the BHC Act. COFC
operates through CONA, its national bank subsidiary, and other nonbank subsidiaries. Capital
One’s international activities are performed primarily through Capital One (Europe) plc
(“COEP”), an indirect subsidiary of CONA that provides consumer lending products in the
United Kingdom, and Capital One Bank (Canada Branch), a foreign branch office of CONA that
provides consumer lending products in Canada.

At December 31, 2023, COFC had total assets on a consolidated basis of approximately
$478.5 billion, consolidated total deposits of approximately $348.4 billion, and consolidated total
shareholders’ equity of approximately $58.1 billion. Capital One exceeds the requirements to be
“well capitalized” under the Federal Reserve’s regulations for bank holding companies.3 As of
December 31, 2023, COFC had, on a consolidated basis, a Tier 1 risk-based capital ratio of

2
See 12 CFR § 6.4(b)(1).
3
See 12 CFR § 225.2(r)(1).

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14.2%, a total risk-based capital ratio of 16.0%, a leverage ratio of 11.2%, and a common equity
tier 1 risk-based capital ratio of 12.9%.

COFC’s common stock trades on the New York Stock Exchange under the symbol
“COF” and is included in the S&P 500 Index.

Discover Bank

Discover Bank is a Delaware state-chartered nonmember bank that is a wholly owned

direct subsidiary of Discover. Discover Bank is regulated by the Federal Deposit Insurance
Corporation (“FDIC”) and the Delaware State Bank Commissioner. Discover Bank offers
Discover-branded credit cards to individuals and small businesses, as well as home and personal
loans, related add-on products, and obtains deposits from customers directly or through affinity
relationships. Discover previously provided student loans, but stopped accepting new
applications for private student loans as of February 1, 2024. Discover is targeting to complete
the sale of its student loan business in the second half of 2024 but the sale process remains in the
early stages. Discover Bank has a single retail location at its main office address in Greenwood,
Delaware, and operates as a direct bank on a national basis. As a direct bank, Discover Bank
offers and services its lending and deposit products and services nationwide primarily through
use of digital channels, telephone, print materials, email, arrangements with third parties, and
direct mail channels.

As of December 31, 2023, Discover Bank had $149.4 billion in assets representing 98.6%
of Discover’s assets on a consolidated basis. The asset portfolio primarily consists of $119.1
billion in net loan receivables, with net credit card receivables representing 79.4% of the net loan
portfolio and 63.3% of total assets. Discover Bank had total liabilities of $136.6 billion, of
which deposits accounted for approximately $112.6 billion. Discover Bank earned $2.6 billion
in net income for the year ending December 2023, which represents approximately 90.1% of
Discover’s consolidated net income. For additional information regarding Discover Bank, please
refer to Exhibit 3 for the public portions of the Consolidated Report of Condition and Income for
Discover Bank for the quarter ended December 31, 2023.

Discover Financial Services

Discover is a Delaware corporation, bank holding company and financial holding

company, headquartered in Riverwoods, Illinois. Discover provides digital banking and payment
services through its subsidiaries, including Discover Bank, and had total consolidated assets of
approximately $151.5 billion and total deposits of approximately $109.0 billion as of December
31, 2023. Discover operates vertically integrated global payments networks.

As part of its payment services, Discover, through its subsidiaries, operates the Discover
Network, the PULSE network (“PULSE”) and Diners Club International (“Diners Club”),
collectively known as the “Discover Global Network.” The Discover Network processes
transactions for Discover-branded credit and debit cards and provides payment transaction
processing and settlement services. PULSE operates an electronic funds transfer network,
providing financial institutions issuing debit cards on the PULSE network with access to ATMs
domestically and internationally, as well as merchant acceptance throughout the United States

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for debit card transactions. Diners Club is a global payments network of licensees, which are
generally financial institutions, that issue Diners Club branded charge cards and/or provide card
acceptance services. Discover provides Diners Club licensees with payment processing and
settlement services for transactions as well as a centralized service center and technological
services.

Terms of the Proposed Transaction

Merger Agreement and Bank Merger Agreement

Concurrently with the execution of the Agreement, CONA and Discover Bank entered
into an Agreement and Plan of Merger providing for the Bank Merger to occur following the
effectiveness of the First Step Merger and the Second Step Merger and subject to the approval of
the OCC and all other necessary authorizations and approvals. A copy of the Agreement is
provided in Exhibit 1 and a copy of the Bank Merger Agreement is provided in Exhibit 4.

In the Proposed Transaction, there will be three mergers. First, Merger Sub will merge
with and into Discover, with Discover continuing as the surviving corporation to effectuate the
First Step Merger. Immediately following the First Step Merger, and as part of a single,
integrated transaction, the Second Step Merger will occur in which Discover will merge with and
into COFC, with COFC continuing as the surviving corporation and, following the Second Step
Merger, the separate corporate existence of Discover will cease. Immediately following the
Second Step Merger, the Bank Merger will take place in which Discover Bank will merge with
and into CONA, with CONA continuing as the surviving entity and the separate corporate
existence of Discover Bank will cease to exist.

Each outstanding share of Discover Common Stock will be converted into the right to
receive the Exchange Ratio. Each share of Discover preferred stock will be automatically
converted into the right to receive one (1) share of the applicable series of new COFC preferred
stock and each outstanding Discover depositary share will be automatically converted into a new
COFC depositary share. Each Discover RSU award that is outstanding immediately prior to the
effective time will be converted into a COFC RSU award, with the number of shares underlying
such award adjusted based on the Exchange Ratio. Each such COFC RSU award will otherwise
continue to be subject to the same terms and conditions (including vesting terms) as applied to
the corresponding Discover RSU award. Each Discover PSU award that is outstanding
immediately prior to the effective time will be converted into a COFC cash-based award in
respect of an amount in cash equal to the product of (i) the total number of shares subject to the
Discover PSU award, with the number of shares of Discover Common Stock determined based
on the greater of target and actual performance through the last quarter ending simultaneously
with or prior to the effective time for Discover PSU awards for which as of the effective time
more than one year of the performance period has elapsed, and target performance for Discover
PSU awards for which as of the effective time one year or less of the performance period has
elapsed, multiplied by the product of the Exchange Ratio and the average of the closing sale
prices of COFC Common Stock for the five full trading days ending on the day preceding the
closing date. Each converted COFC cash-based award will otherwise continue to be subject to
the same terms and conditions (including service-based vesting terms) as applied to the

-7-
corresponding Discover PSU award. See the summary of terms of the Proposed Transaction
provided in Exhibit 5.

On consummation of the Proposed Transaction, the subsidiaries of Discover Bank will

become subsidiaries of CONA (“Bank Subsidiaries”) and the other direct and indirect
subsidiaries of Discover will become direct or indirect subsidiaries of COFC. In Exhibit 6, and
Exhibit 7 please find: (i) the current organizational structure of Discover and (ii) the current
organizational structure of COFC, respectively. A pro forma organizational chart of COFC is
provided in Confidential Exhibit B.

Resolutions approving the Proposed Transaction by COFC’s Board of Directors and

resolutions of the Board of Directors of CONA approving the Bank Merger and the filing of the
related regulatory filings, as well as the related consent of COFC as the sole stockholder of
CONA approving the Bank Merger, are provided in Exhibit 8, Exhibit 9 and Exhibit 10,
respectively. Stockholder consent of COFC, as the sole stockholder of Merger Sub, and
resolutions of Merger Sub’s Board of Directors approving the First Step Merger are provided in
Exhibit 11 and Exhibit 12, respectively.

Joint resolutions of the Boards of Directors of Discover and Discover Bank approving the
Proposed Transaction, including the Bank Merger, and the filing of the Bank Merger application,
as well as the related consent of Discover as the sole stockholder of Discover Bank, are provided
in Exhibit 13 and Exhibit 14, respectively.

On February 22, 2024, COFC filed a Current Report on Form 8-K announcing the
Proposed Transaction in connection with entering into the Agreement, which is provided in
Exhibit 15. The Agreement contains customary representations and warranties from both COFC
and Discover, and each party has agreed to customary covenants, including, among others,
covenants relating to (1) the conduct of its business during the interim period between the
execution of the Agreement and the Proposed Transaction closing, (2) its obligations to call a
meeting of its stockholders to, in the case of Discover, adopt the Agreement and the transactions
contemplated thereby (the “Discover Stockholder Approval”), and, in the case of COFC, approve
the issuance of shares of COFC Common Stock constituting the consideration to be received by
Discover common stockholders in the Mergers, in accordance with applicable New York Stock
Exchange rules and regulations (the “Capital One Stockholder Approval”) and, subject to certain
exceptions, for the Board of Directors of each of COFC and Discover to recommend that its
stockholders vote in favor of such approvals, and (3) its non-solicitation obligations relating to
alternative acquisition proposals.

Required Approvals

In addition to the OCC Application, applications to regulatory agencies will include:

x An application to the Federal Reserve by COFC and Merger Sub, requesting approval
to acquire Discover and thereby Discover Bank, pursuant to sections 3(a)(3) and (5)

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 of the BHC Act, and section 225.15 of Regulation Y (the “FRB Application”);4

x A notice to the Federal Reserve by COFC under section 4(c)(8) of the BHC Act to
acquire nonbanking activities and companies as part of the Proposed Transaction; and

x An application to the Delaware State Bank Commissioner for prior approval to

acquire control of Discover Bank immediately prior to the Bank Merger, pursuant to
Title 5 Del. C. § 843, and for a waiver of the 30% state deposit concentration limit
pursuant to Title 5 Del. C. § 795H.

In addition, Capital One and Discover will submit appropriate filings or notices of the
Proposed Transaction to any state or foreign regulatory bodies that may be required in
connection with the Proposed Transaction.

Public Notice

The form of newspaper notice for the OCC Application is provided in Exhibit 16. Notice
will be published in each of: (1) Washington Post, a newspaper of general circulation in
McLean, Virginia, the community in Fairfax County, Virginia in which the headquarters of
COFC and the main office of CONA are located and (2) The News Journal, a newspaper of
general circulation in Greenwood, Delaware, the city in which the main office of Discover Bank
is located. Copies of the publication affidavits from those newspapers will be provided to the
OCC once they become available.

Factors for OCC Review

I. Interstate Banking Requirements

Section 1831u, as added by The Riegle-Neal Interstate Banking and Branching Efficiency
Act of 1994, as amended, permits the OCC to authorize mergers between insured banks with
different home states, subject to certain requirements. For purposes of this provision, CONA’s
home state is Virginia, the state in which its main office is located.5 Discover Bank’s home state
is Delaware, the state in which its main office is located.6

Approval of an application to engage in an interstate merger transaction under Section

1831u is subject to certain requirements and conditions set forth in Sections §§ 1831u(a)(5) and
1831u(b). These conditions relate to: (1) compliance with state filing requirements;
(2) compliance with state-imposed age limits, subject to Section 1831u’s limitations;
(3) compliance with nationwide concentration limits and, to the extent applicable, state
concentration limits; (4) community reinvestment compliance; (5) adequacy of capital and
management skills; and (6) surrender of the charter, upon request, after the transaction. The
Bank Merger satisfies or will satisfy all of these conditions to the extent applicable.

4
12 U.S.C. §§ 24, 36(d), 1828(c) and 1831u; 12 CFR §§ 5.33 and 5.34. This OCC Application will also cover the
operating subsidiaries of the Bank Merger.
5
12 U.S.C. § 1831u(g)(4)(A)(i).
6
12 U.S.C. § 1831u(g)(4)(A)(ii).

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 Compliance with State Filing Requirements. The Bank Merger will comply with
applicable state filing requirements. An acquiring bank in an interstate merger transaction must
(1) comply with the filing requirements of any state that will become a host state as a result of
the transaction and (2) submit a copy of the application to the state bank supervisor of the host
state.7 Discover Bank has its main office in Delaware and that location will become a branch of
CONA upon consummation of the Bank Merger. Accordingly, Delaware will become a “host
state” as a result of the Bank Merger. As discussed above, an application is being filed with the
Delaware State Bank Commissioner for prior approval for COFC and Merger Sub to acquire
control of Discover Bank immediately prior to the Bank Merger, pursuant to Title 5 Del. C.
§ 160. CONA will also comply with any other Delaware state filing requirements and it will
send a copy of the OCC Application to the Delaware State Bank Commissioner.

Age of the Acquired Bank. Under Section § 1831u(a)(5), the OCC may not approve a
merger if the effect would be to permit “an out-of-State bank or out-of-State bank holding
company to acquire a bank in a host State that has not been in existence for the minimum period
of time, if any, specified in the statutory law of the host State,” subject to a cap of five-years.8
Discover Bank was established as a Delaware state-chartered trust company in 1911 (under the
name of Greenwood Trust Company). That institution converted to a Delaware state-chartered
credit card bank in 1985 and changed its name to Discover Bank in 2000. Accordingly, the bank
has been in existence much longer than five years. Therefore, the OCC is authorized under
Section 1831u(a)(5) to approve the Bank Merger regardless of any state law age requirements.9

Nationwide Concentration Limit. Section 1831u(b)(2)(A) provides that an interstate

acquisition may not be approved, if, upon consummation, the applicant would control “more than
10% of the total amount of deposits of insured depository institutions in the United States”
(“nationwide deposits”).10 As of December 31, 2023, CONA and Discover Bank had nationwide
deposits totaling $374.2 billion and $112.6 billion, respectively. Upon consummation, COFC
would be holding $486.9 billion, which is less than 3% of nationwide deposits as of December
31, 2023 and, thus, would be well under the nationwide deposits concentration limit.11

Statewide Concentration Limit. Section 1831u(b)(2)(B) has provisions regarding state

concentration limits. However, this provision is inapplicable both because (a) the Bank Merger
involves affiliated banks12 and (b) this is an “initial entry” by CONA into Delaware as it does not
currently have a licensed branch in the state.13 Accordingly, the OCC is authorized to approve
the Bank Merger under Section 1831u’s statewide concentration limit provision.

7
12 U.S.C. § 1831u(b)(1). The term “host State” means, “With respect to a bank, a State, other than the home State
of the bank, in which the bank maintains, or seeks to establish and maintain, a branch.” 12 U.S.C. § 1831u(g)(5).
8
12 U.S.C. § 1831u(a)(5)(A).
9
Delaware does not have a state age requirement of more than five years.
10
12 U.S.C. §1831u(b)(2)(A).
11
Calculation represents Total Liabilities Before Exclusions less Total Allowable Exclusions plus Interest Accrued
and Unpaid on Deposits aggregated for all FDIC-insured banks and thrifts and reported on their Consolidated Report
of Condition and Income for the quarter ended December 31, 2023. As of December 31, 2023, banks and thrifts
held $17.7 trillion in adjusted domestic deposits.
12
See 12 USC 1831u(b)(2)(E).
13
See 12 USC 1831u(b)(2)(B)(i) (the statewide concentration limit applies only where the resulting bank already has
a branch in the state where the acquired branch has a branch).

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 However, it is worth noting that for the purposes of the statewide concentration limit,
CONA’s operational facility that accepts and reports internet-based deposits is located in
Delaware. Even if the statewide concentration limit were applicable, the Bank Merger would
comply with the limitation. Section 1831u(b)(2) has two subparagraphs that place limits on
statewide deposit concentrations in applicable transactions:

x Section 1831u(b)(2)(B) (“Subparagraph B”) provides that an interstate merger may

not be approved if (1) any bank involved in the transaction (including all insured
depository institutions that are affiliates of any such bank) has a branch in any state in
which any other bank involved in the transaction has a branch and (2) the resulting
bank (including all insured depository institutions that would be affiliates of the
resulting bank), upon consummation of the transaction, would control 30% or more of
the total amount of deposits in any such state.14

x Section 1831u(b)(2)(C) (“Subparagraph C”) provides that state law caps on the total
amount of deposits in the state that a single banking organization may hold must also
be complied with, provided that the cap does not discriminate against out-of-state
banking organizations.15

Discover Bank’s home state is Delaware and it does not have a branch in any other state.
Discover Bank operates a digital bank and accepts deposits nationwide. CONA has a location in
Delaware, which is an operational facility and accepts deposits16 via the CONA website from
customers nationwide. As of December 31, 2023, approximately 64% of CONA’s deposits are
attributable to its location in the State of Delaware for purposes of Section 3(d) of the BHC Act.

As of June 30, 2023, CONA and Discover Bank had deposits totaling $224.2 billion and
$101.2 billion, respectively, booked in these Delaware locations. Thus, reflecting that both
CONA and Discover Bank book deposits from customers nationwide at locations in Delaware,
on a combined basis, CONA would hold approximately $325.4 billion or 64.9% of the $501.4
billion total amount of the reported deposits of insured depository institutions in Delaware.17
Although on a combined basis, CONA would exceed 30% of the deposits in Delaware, Section
1831u(b)(2)(D) (“Subparagraph D”) provides that the OCC may approve an application for an
interstate merger transaction without regard to the concentration limit in Subparagraph B if
either: (a) there is a State statute, regulation, or order which has the effect of permitting a bank
or bank holding company to control more than 30% of total deposits of all insured depository
institutions in the State (“Exception A”); or (b) the transaction is approved by the appropriate
State bank supervisor of such State and the standard on which such approval is based does not

14
12 U.S.C. §1831u(b)(2)(B).
15
12 U.S.C. §1831u(b)(2)(C).
16
While this CONA location is not a branch, it is conservatively assumed that an operational facility that accepts
deposits is deemed to be a branch solely for the purposes of Section 3(d)’s state concentration limit.
17
Importantly, (a) less than 1% of CONA’s deposits that are booked in Delaware and (b) slightly over 1% of the
Discover Bank deposits that are booked in Delaware are owned by depositors who provide CONA and Discover
Bank, respectively, with a primary address in the State of Delaware. Counting only these Delaware-based
depositors, CONA would hold slightly over $3 billion in deposits, representing less than 2% of Delaware deposits
on an adjusted basis (i.e., deducting CONA’s and Discover Bank’s non-Delaware-based depositors from the
denominator as well).

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have the effect of discriminating against out-of-State banking organizations (“Exception B”). As
discussed below, both Exception A and Exception B apply in this case.

As discussed above, applications to regulatory agencies will include an application to the

Delaware State Bank Commissioner for prior approval to acquire ownership or control of
Discover and Discover Bank immediately prior to the Bank Merger, pursuant to Title 5 Del. C. §
844, and for a waiver of the 30% state deposit concentration limit pursuant to Title 5 Del. C. §
795H. Therefore, provided such approval from the Delaware State Bank Commissioner is
received, the Proposed Transaction would comply with Exception B.

Further, Delaware state law expressly authorizes the State Banking Commissioner to
approve a proposed transaction that would result in a banking organization that holds more than
30% of the deposits in the state.18 Accordingly, Delaware law permits a bank or bank holding
company to control a more than 30% of total deposits of all insured depository institutions in
Delaware with the approval of the Delaware Banking Commissioner. Accordingly, provided that
approval of the Proposed Transaction by the Delaware State Bank Commissioner is received, the
Bank Merger would also comply with Exception A.

Accordingly, even if the state concentration limit is applicable, the OCC is authorized to
approve the Bank Merger under Section 1831u’s state concentration limit provision.

Community Reinvestment Act Compliance. Section 1831u requires the OCC to consider
an applicant’s record under the CRA and take into account its record of compliance under state
community reinvestment laws.19 CONA currently has an overall CRA rating of “Outstanding”
and Discover Bank currently has an overall CRA performance rating of “Satisfactory.” Detailed
information about the CRA compliance records of CONA and Discover Bank are in the
Commitment to the CRA section below. CONA and Discover Bank are in compliance with
applicable state community reinvestment statutes and related requirements.20

Capital and Managerial Conditions. The Bank Merger will comply with Section
1831u’s capital and managerial conditions. Section 1831u requires that each bank involved in
the Bank Merger be “adequately capitalized” as of the date the merger application is filed and
that the responsible agency determines that the resultant bank will be “well capitalized” and
“well managed.”21 Each of CONA and Discover Bank is “well capitalized” and the resultant
bank will be “well capitalized” and “well managed.” Please see the discussion below in the
Introductory Statement—Financial and Managerial Resources and Future Prospects section and
the exhibits referenced therein.

18
See 5 Del. C. § 843(b).
19
See 12 U.S.C. § 1842(d)(3).
20
Discover Bank has its main office in Delaware, which does not have a state CRA law. CONA has branches in
three jurisdictions (i.e., Connecticut, the District of Columbia and New York) that have enacted state CRA statutes.
See CT Gen. Stat. § 36a-30; D.C. Code § 26-431; N.Y. Banking Law § 28-b. To the extent that they are applicable
to CONA, CONA is in compliance with such CRA laws.
21
12 U.S.C. § 1831u(b)(4).

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 Conclusion under Section 1831u. The Bank Merger would satisfy each of the
conditions for an interstate acquisition under the Section 1831u.22 Accordingly, the OCC is
permitted to approve the Bank Merger.

II. Financial and Managerial Resources and Future Prospects

In acting on the OCC Application, the Bank Merger Act requires the OCC to consider the
financial and managerial resources and future prospects of the organizations involved. The Bank
Merger represents a strategic transaction to increase Capital One’s product offerings to better
serve its and Discover’s customers.

Capital One will benefit from the compatible business lines and diversification of
customers and geographies acquired through the Proposed Transaction. The Proposed
Transaction will introduce the Discover Global Network to Capital One. Currently, Discover
processes approximately 5% of total debit purchase volume and 4% of total credit purchase
volume in the United States. Capital One expects to utilize its strong credit card issuance
platform to drive increased volume to the Discover Global Network, which, coupled with
expected additional investments in the Discover Global Network, position the Discover Global
Network to compete more effectively with Visa, Mastercard, and Amex.

Capital One, including CONA, has strong financial, capital, liquidity and managerial
resources, including a robust risk management framework (“RMF”), that will enable it to
consummate the Proposed Transaction, successfully integrate the operations of Discover into
Capital One and Discover Bank into CONA, and ensure the continued safe and sound operation
of Capital One, including CONA, going forward.

Senior management of Capital One will continue to take steps to ensure that COFC and
CONA maintain suitable capital planning, liquidity management, managerial resources,
corporate governance, enterprise risk management programs, compliance and technological
infrastructure commensurate with its size, complexity, risk profile, and scope of operations and
otherwise meet the Federal Reserve’s and OCC’s supervisory expectations. As a Category III
organization under the Federal Reserve’s prudential standards for large bank holding companies
(Regulation YY, 12 CFR part 252), COFC has already been subject to enhanced prudential
supervisory standards, including the Supplementary Leverage Ratio, Countercyclical Capital
Buffer requirements of the banking agencies’ regulatory capital rules, company-run capital stress
testing and single counterparty credit limits, as well as the liquidity coverage ratio requirement
(the “LCR”) and net stable funding requirement (the “NSFR”) and resolution planning
requirements.23 COFC has satisfactorily met all these requirements and standards and will
continue to have the governance, infrastructure and systems to meet all the relevant regulatory
requirements and supervisory expectations for a Category III banking organization.
Furthermore, the Proposed Transaction will have the effect of bringing the assets, liabilities and

22
As part of these conditions, the charter of Discover Bank will be surrendered on consummation of the Bank
Merger.
23
See Prudential Standards for Large Bank Holding Companies, Savings and Loan Holding Companies, and Foreign
Banking Organizations, 84 Fed. Reg. 59032 (Nov. 1, 2019).

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operations of the Discover organization under the heightened requirements applicable to
Category III organizations, described above.

Based on all the information below and in the exhibits, it is evident that the financial,
managerial and future prospects factors that the OCC must consider all support approval of the
this OCC Application.

A. Financial, Capital and Liquidity Strength

Since January 1, 2020, the federal banking agencies’ capital and liquidity rules classify
all banking organizations with $100 billion or more in total consolidated assets into one of four
categories (Category I, II, III or IV), based on the banking organization’s asset size and risk
profile, with the most stringent capital and liquidity requirements applicable to Category I firms
and the least restrictive requirements applying to Category IV firms. Based on this regulatory
framework, COFC currently qualifies as a Category III organization. Following the Proposed
Transaction, COFC will have approximately $646 billion24 in total consolidated assets and will
remain well under $75 billion in cross-jurisdictional activity. For additional information on
cross-jurisdictional activities see “Financial Stability Risk Considerations – Cross-Border
Activity.” Capital One would become subject to Category II standards if it has $700 billion or
more in total consolidated assets or $75 billion or more in cross-jurisdictional activity, each as
measured based on the average for the four most recent calendar quarters.25 Accordingly, upon
consummation of the Proposed Transaction, the combined organization will continue to be a
Category III firm. Capital One understands the additional regulatory requirements applicable to
Category II firms and will be prepared to meet such additional requirements to the extent future
growth results in Capital One exceeding the applicable thresholds for classification as a Category
II firm.

Capital. Capital One employs comprehensive and rigorous capital planning and capital
stress testing programs, and the acquired operations of Discover will be covered by these
effective programs. The respective capital and leverage ratios of COFC, CONA, Discover and
Discover Bank exceed the minimum ratios necessary for “well capitalized” status and, on
consummation of the Proposed Transaction, the capital ratios and leverage ratios of COFC and
CONA are projected to exceed the required minimum levels necessary for “well capitalized”
status and meet supervisory expectations. The Proposed Transaction is expected to result in a
holding company and bank with stronger financial and operating metrics, and increased
profitability and scale that will permit the combined organization to better compete against the
largest banking organizations and larger regional banking organizations in the United States. For
more detailed information on the current, pro forma and projected financials, capital ratios and
asset quality of COFC and CONA, please see Exhibit 17 and Confidential Exhibit D.

Liquidity. COFC and CONA are subject to the LCR as implemented by the Federal
Reserve and OCC (the “LCR Rule”).26 The LCR Rule requires each of COFC and CONA to

24
This pro forma total consolidated asset amount includes Discover’s student loan portfolio. As discussed below,
Discover is targeting to complete the sale of its student loan business prior to the consummation of the Proposed
Transaction.
25
12 CFR §§ 252.2 and 252.5.
26
12 CFR § 50 (OCC) and 12 CFR § 249 (Federal Reserve).

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hold an amount of eligible high quality liquid assets that equals or exceeds 100% of its respective
projected adjusted net cash outflows over a 30-day period, each as calculated in accordance with
the LCR Rule. As a Category III institution with less than $75 billion in weighted average short-
term wholesale funding, COFC’s and CONA’s total net cash outflows are subject to an outflow
adjustment percentage of 85%. The LCR Rule requires each of COFC and CONA to calculate
its respective LCR daily.

The NSFR requires COFC and CONA to maintain an amount of available stable funding,
which is a weighted measure of a company’s funding sources over a one-year time horizon,
calculated by applying standardized weightings to equity and liabilities based on their expected
stability, that is no less than a specified percentage of its required stable funding, which is
calculated by applying standardized weightings to assets, derivatives exposures and certain other
items based on their liquidity characteristics. As a Category III institution, COFC and CONA
are each required to maintain available stable funding in an amount at least equal to 85% of its
required stable funding.

Capital One maintains a robust liquidity risk management program and manages liquidity
risk at the consolidated company level to help ensure that it (1) can obtain cost-effective funding
to meet current and future obligations under both normal “business as usual” and stressful
circumstances, and (2) maintains an appropriate level of contingent liquidity. Management
monitors liquidity through a series of early warning indicators that may indicate a potential
market or Capital One-specific liquidity stress event, performs liquidity stress tests over multiple
time horizons with varying levels of severity, and maintains a contingency funding plan to
address a potential liquidity stress event. Capital One’s liquidity guidelines and liquidity-related
risk limits are established at an enterprise level, as well as managed and monitored at various
entity levels, including CONA. Capital One’s liquidity risk management program will cover the
acquired operations of Discover and Discover Bank on consummation of the Proposed
Transaction. Substantial focus has been placed by regulators, the markets and, the banks
themselves on a bank’s level of insured deposits in absolute terms and relative to total deposits.
On a pro forma, Capital One’s insured deposits would be approximately 79% of its total
deposits, which is expected to be the highest insured deposit percentage amongst the 10 largest
U.S. banks.

Resolution Planning. COFC is a Category III organization for purposes of the Federal
Reserve’s resolution planning requirements and CONA is an insured depository institution with
more than $50 billion in total assets that is subject to the FDIC’s resolution planning
requirements.27 Following consummation of the Proposed Transaction, COFC will continue to
be a Category III organization, subject to the Federal Reserve’s resolution planning rules, and
CONA will continue to be subject to the FDIC’s resolution planning rules.

Capital One does not expect that the Proposed Transaction will make COFC or CONA
materially more difficult to resolve if they fail or experience financial distress. The Proposed
Transaction does not involve the acquisition or assumption of complex assets or liabilities.
Although Capital One will have a larger asset base after consummation of the Proposed
Transaction, approximately 99% of the combined organization’s total assets will be held by or

27
See 12 CFR § 360.10.

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through CONA. The introduction of the new operations, legal entities, and activities related to
the Discover Global Network is not expected to increase the relatively low level of complexity of
Capital One’s operations from a resolution standpoint, especially given that the Discover Global
Network could be viewed as a standalone and marketable asset.

Capital One anticipates that its existing resolution planning processes and governance
framework, including ongoing enhancements designed to address regulatory rules and
expectations, are appropriate to incorporate Discover, including the Discover Global Network,
into Capital One’s resolution and recovery planning strategy. Discover’s most significant
business lines and the significant majority of its assets and liabilities consist of activities at
Discover Bank, namely credit card lending and direct banking. Capital One has extensive
existing operations, expertise and experience, including extensive resolution planning experience
with respect to those activities. The services provided by the Discover Global Network to
CONA’s material entities and core business lines will be appropriately mapped and evaluated as
part of Capital One’s resolution strategy. Capital One is currently evaluating the impact of the
Proposed Transaction on its resolution plans and resolution strategy, and expects to submit
interim updates to its resolution plans within a reasonable timeframe following the
consummation of the Proposed Transaction.

B. Managerial Resources

COFC and CONA have diverse, highly accomplished and experienced Boards of
Directors and senior executive management teams, which provide them with outstanding
managerial resources to ensure their safe and sound operation.

Boards of Directors

COFC and CONA. The COFC and CONA Boards of Directors and management will
evaluate the proposed composition of the Boards of COFC and CONA following the Proposed
Transaction, considering the appropriate size, skill sets, geographic representation, diversity as
well as other governance considerations. The Board of COFC will add three members of the
Discover Board of Directors and expand from 12 to 15 directors. These individuals will be
named at a later date. The current directors of COFC and CONA are set forth in Exhibit 18.

The independent directors of the COFC Board (the “Independent Directors”), each year
in conjunction with the Board of Directors’ self-assessment, evaluate the continued effectiveness
of its leadership structure in the context of Capital One’s specific circumstances, culture,
strategic objectives, and challenges.

The Board of Directors has determined that the existing leadership structure with a
combined Chairman/CEO and a Lead Independent Director provides the most effective
governance framework and allows Capital One to benefit from Mr. Fairbank’s talent, knowledge,
and leadership as the founder of Capital One and allows him to use the in-depth focus and
perspective gained in running Capital One to effectively and efficiently lead the Board. As CEO,
Mr. Fairbank oversees Capital One’s day-to-day operations and strategic planning, and as
Chairman of the Board he leads the Board in its oversight role, including with respect to strategic
matters and risk management.

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 COFC and the Board of Directors also benefit from an active and empowered Lead
Independent Director who provides strong, independent leadership for the Board. Recognizing
the importance of independent perspectives to the Board to balance the combined Chairman and
CEO roles, Capital One appropriately maintains strong independent and effective oversight of its
business and affairs through its Lead Independent Director; fully-independent Board committees
with independent chairs that oversee Capital One’s operations, risks, performance, compliance
and business strategy; experienced and committed directors; and regular executive sessions.

The COFC Board of Directors currently have four standing committees: (i) Audit
Committee, (ii) Risk Committee, (iii) Governance and Nominating Committee, and (iv)
Compensation Committee. The standing committees of the COFC Board of Directors also act as
committees of the CONA Board of Directors. In addition, the CONA Board of Directors has
another standing committee, the Trust Committee, which oversees the wind-down of the legacy
wealth management and trust activities of CONA. Each committee chair provides recurring
reports to the Board regarding its discussions and activities.

COFC Board Committee Structure

Management

Capital One does not anticipate material changes to the management structure and team
of COFC or CONA. Mr. Fairbank will remain Chairman and Chief Executive Officer of COFC
and Chairman, President and Chief Executive Officer of CONA. The current Senior Executive
Officers of COFC and CONA are set forth in Exhibit 19. As part of the integration planning, the
management structure and team will be reviewed for any appropriate changes.

As part of its management structure, Capital One has senior management committees,
which are governance forums established to advise and assist the CEO and other accountable
executives, as subject matter expert advisory panels, in the management of Capital One’s
strategy, financial results, business operations, compliance with laws and regulations (including
those pertaining to consumer protection), and enterprise risk matters, including the Company’s
performance against risk appetites and limits. The senior management committee structure is an
important part of Capital One’s broader governance framework.

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Senior Management Committee Structure

1. Governance Structure

Capital One is dedicated to strong and effective corporate governance that provides the
appropriate framework for the COFC and CONA Boards of Directors to engage with and oversee
the management of the organization. Robust and dynamic corporate governance policies and
practices are the foundation of an effective and well-functioning Boards, and are vital to
preserving the trust Capital One has built with its stakeholders, including customers,
stockholders, regulators, suppliers, associates, communities, and the general public.

The COFC and CONA Boards of Directors and its committees are accountable for
oversight of Capital One’s business affairs and operations. In carrying out this responsibility,
among other things, the Boards and their committees oversee management’s development and
implementation of the Company’s (i) corporate culture; (ii) corporate strategy; (iii) financial
performance and associated risks; (iv) the enterprise-wide RMF, including cybersecurity and
technology risk; (v) succession planning for the Company’s CEO and other key executives; (vi)
compensation policies and practices; and (vi) policies, programs, and strategies related to
Environmental, Social, and Governance matters.

The COFC and CONA Boards of Directors and their committees regularly review and
approve key governance policies and plans. The Corporate Governance Guidelines adopted by
the COFC and CONA Boards of Directors formalize Capital One’s key corporate governance
practices and facilitate efficient and effective Board oversight. The Guidelines enable the COFC
and CONA Boards of Directors to engage in responsible decision-making, work with
management to pursue Capital One’s strategic objectives and promote the long-term interests of
its stockholders. The Corporate Governance Guidelines embody many of Capital One’s long-

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standing practices, policies, and procedures, which collectively form a corporate governance
framework that promotes the long-term interests of its stockholders, promotes responsible
decision-making and accountability, and fosters a culture that allows the COFC and CONA
Boards of Directors and management to pursue Capital One’s strategic objectives.

To maintain and enhance independent oversight, the COFC and CONA Boards of
Directors regularly reviews and refreshes its governance policies and practices as changes in
corporate strategy, the regulatory environment and financial market conditions occur, and in
response to stakeholder feedback and engagement.

The COFC and CONA Boards of Directors has also adopted Capital One’s Code of
Conduct, which applies to Capital One’s directors, executives and associates, including Capital
One’s CEO, CFO, Principal Accounting Officer, and other persons performing similar functions.
The Code of Conduct reflects Capital One’s commitment to honesty, fair dealing, and integrity,
and guides the ethical actions and working relationships of Capital One’s directors, executives,
and associates.

The COFC and CONA Boards of Directors receive both initial and ongoing training and
education to ensure they remain current on the industry and relevant developments. Additional
information on director training is provided in Exhibit 20.

Capital One’s governance framework is supported by policies, standards, and procedures

across the enterprise, including a Corporate Governance Framework Policy approved by the
COFC and CONA Boards of Directors. These policies, standards, and procedures are designed
to capture how Capital One’s governance operates in each function and to support a culture of
good corporate governance. The governance framework also incorporates legal entities to ensure
oversight meets legal and supervisory expectations. Capital One’s policies, standards, and
procedures are regularly reviewed and updated to support continued effectiveness. 

Capital One’s governance structure is designed to ensure that its business is conducted in
compliance with all legal and regulatory requirements and, where appropriate, taking into
consideration entity-level requirements, e.g., the OCC Heightened Standards. As part of the
integration process, Capital One will maintain its governance framework in order to continue
providing strong and effective oversight of the combined operations.

2. Employees

Acquiring and investing in great talent is a key competitive differentiator for Capital One,
and Capital One is dedicated to a successful transition for both Capital One and Discover
employees. Through the course of the integration, workforce planning will be done to evaluate
the combined organization as synergies and efficiencies are identified while retaining and
investing in key destination talent.

3. Integration Planning and Experience

Capital One’s leadership is dedicated to ensuring that the integration of Discover into the
Capital One organization is well-planned and effectively managed and implemented. Capital
One conducted extensive due diligence on Discover. Capital One’s management led a cross-

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divisional team who conducted a thorough review of Discover’s lines of business, and functional
areas, including human relations, finance, internal audit, legal and risk management, including
credit, compliance, operational and market risks. A summary of the due diligence conducted by
Capital One is provided in Confidential Exhibit A. Capital One is an experienced acquirer,
having completed over 40 acquisitions over the last 15 years, and will devote significant
management resources to the full integration of Discover with and into Capital One. Capital One
will plan to operate its disciplined integration process, focused on deploying enterprise-wide
processes and capabilities and managing risk at all stages.

Key to the execution of a seamless integration, Capital One has committed some of its
most senior executives to the integration process, who will be accountable for delivering a timely
closing and well managed integration. Specifically, Capital One has established an Integration
Leadership Team (“ILT”) and supporting integration management office (“IMO”) that will
support the integration effort across the enterprise. The ILT reports to Capital One’s General
Counsel, the Integration Executive Officer, who is overseeing all integration activities beginning
immediately and continuing through the estimated two-year post-closing integration period. The
Integration Executive Officer reports directly to COFC’s Chief Executive Officer. The ILT will
provide regular reporting to the Board and appropriate Board and Management committees on
the status of the integration, work streams and associated risks. In addition, leadership will
provide regular integration updates to local examination representatives, including to
representatives of the Federal Reserve and OCC. For additional information on Capital One’s
ILT, see Confidential Exhibit D.

The ILT has senior representatives of Capital One’s business lines and its Risk, Human
Resources, Legal, Finance, Technology, Cyber and Audit functions. Subject to certain
information sharing restrictions, each workstream is responsible for conducting a gap assessment
and developing a detailed project plan and timeline and supporting communication of
information and decisions about the integration across relevant stakeholders. The broad, cross-
functional integration team has commenced the integration efforts and defining of end-state
destinations across all of the impacted businesses and enterprise teams. The current integration
timeline is scheduled to be materially completed within two years following the closing of the
Proposed Transaction.

For additional information on Capital One’s integration plan, see Confidential Exhibit E.

4. Risk Management

Capital One dedicates significant resources to Risk Management and maintains a robust
RMF, including coverage of liquidity and funding, credit, market, operational (including data
and technology), strategic, reputational, and compliance risks. The RMF is rooted in the Risk
Appetite Statement for Capital One, which is established by the COFC and CONA Boards of
Directors and sets forth the high-level principles that govern risk taking at Capital One. The
Risk Appetite Statement defines the Boards of Directors’ tolerance for certain risk outcomes at
an enterprise level and enables senior management to manage and report within these
boundaries. This Risk Appetite Statement is also supported by specific risk appetite statements
for each risk category as well as metrics and qualitative factors and, where appropriate, Board
Limits and Board Notification Thresholds. Capital One’s Risk Appetite Statement and

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associated metrics will be reviewed with the COFC and CONA Boards of Directors and adjusted
to reflect necessary changes, upon integration of Discover’s businesses (e.g., Card
Concentration). For additional information on Capital One’s current Risk Appetite Statement,
see Confidential Exhibit F.

The RMF is codified in the Enterprise Risk Management Policy, which is reviewed and
approved at least annually by the Board of Directors. Capital One maintains a robust structure of
policies and supporting documents, which collectively establish clear and specific risk
management requirements, commensurate with Capital One’s complexity, size, and risk profile.

Risk Officer Structure

Capital One utilizes a dual Chief Risk Officer (“CRO”) structure. The Chief Enterprise
Risk Officer (“CERO”), oversees Compliance Risk, Operational Risk, Reputation Risk, and
Strategic Risk, and leads the Enterprise Risk Management function. The Chief Credit and
Financial Risk Officer (“CCFRO”), oversees Credit Risk, Liquidity Risk, and Market Risk and
leads the Model Risk Management function.

Each CRO reports directly to the CEO and Risk Committee Chair, has unrestricted access
to the Board and its committees, is responsible for Risk Committee planning and debriefing
interactions with the Chair, and holds membership in all Senior Management Committees. In
addition, the CCFRO provides administrative oversight to the Credit Review function, which
independently reports to the Risk Committee of the Board.

Lines of Defense

The RMF sets consistent expectations for Capital One’s “Three Lines of Defense” model,
which defines the roles, responsibilities and accountabilities for taking and managing risk across
Capital One. Accountability for overseeing an effective RMF resides with COFC’s Board of
Directors either directly or through its committees. CONA has adopted COFC’s RMF as
permitted by the OCC’s Heightened Standards.

First Line Second Line Third Line

Identifies and Owns Risk Advises & Challenges Provides Independent

First Line Assurance

Key Responsibilities Identify, assess, measure, Independent Risk Provides independent and
monitor, control, and Management (“IRM”): objective assurance to the
report the risks associated Independently oversees, Board of Directors and
with their business. challenges, and assesses senior management that the
risk taking activities for systems and governance
the First Line. processes are designed and
working as intended and that
the RMF is appropriate for
the size, complexity, and
risk profile of Capital One.

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 The First Line consists of any line of business or function that is accountable for risk-
taking and is responsible for: (1) engaging in activities designed to generate revenue or reduce
expenses; (2) providing operational support or servicing to any business function for the delivery
of products or services to customers; or (3) providing technology services in direct support of
first line business areas. Each Capital One line of business or First Line function must manage
the risks associated with their activities, including identifying, assessing, measuring, monitoring,
controlling, and reporting the risks within its business activities consistent with the RMF.

The Second Line consists of two types of functions: IRM and support functions that are
centers of specialized experts (“Support Functions”). IRM oversees risk-taking activities and
assesses risks and issues independent of the First Line. IRM functions play a central role in
defining the risk management standards that guide the risk taking activities of the First Line, in
addition to providing effective challenge to first line risk taking activities. IRM is responsible
for designing and updating the RMF; setting policies and standards for risk identification,
assessment, measurement, monitoring, control, and reporting by the First Line; identifying and
assessing material aggregate risks consistent with Capital One’s risk appetite; establishing and
adhering to enterprise risk policies that include concentration risk limits; and monitoring the risk
profile relative to the approved risk appetite. No First Line executive may oversee an IRM unit.
IRM functions provide effective challenge across the relevant risk categories to the first line of
defense and, when appropriate, certain activities conducted by support functions. Support
Functions include Human Resources, Accounting and Legal, which leverage their skills and
expertise to advise Capital One across all lines of defense in performing their respective
activities or in identifying, assessing, measuring, monitoring, controlling, and reporting the risks
associated with business activities owned by the First Line.

The Third Line is comprised of Capital One’s Internal Audit and Credit Review
functions. The third line provides independent and objective assurance to senior management
and the Board that the first and second lines of defense have systems and governance processes
which are well-designed and working as intended and that the RMF is appropriate for the size,
complexity, and risk profile of Capital One. Additionally, in carrying out its responsibilities, the
third line maintains a complete and current inventory of Capital One’s material processes,
product lines, services, and functions, and assesses the risks, including emerging risks, associated
with each, which collectively provide a basis for the audit plan. No First Line executive may
oversee any Internal Audit or Credit Review units. Third Line functions provide effective
challenge and determine how and when effective challenge is conducted, including the
evidentiary requirements.

Elements of the RMF

The RMF consists of the following nine elements:

x Governance and Accountability. The RMF sets the foundation for the methods for
governing risk taking and the interactions within and among the three lines of
defense. Capital One’s risk governance structure and culture of accountability is a
core focus to effectively and consistently oversee the management of risks across the
Company. The Board of Directors, CEO, and management team establish the tone at
the top regarding the culture of the Company, including management of risk, which is

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 reinforced throughout the various levels of the organization. Senior Management
Committees are governance forums established to assist the CEO and other
management team accountable executives in the management of the strategy,
financial results, business operations, and enterprise risk management for Capital
One.

x Strategy and Risk Alignment. Capital One’s strategy is informed by and aligned with
its risk appetite, from development to execution, including how initiatives may
impact Capital One’s overall risk profile. The strategy is developed with input from
teams in the First, Second, and Third Lines, as well as the Board of Directors.

x Risk Identification. The First Line is responsible for identifying risks, including
concentration and emerging risks, across the relevant risk categories associated with
their current and proposed business activities and objectives. IRM and certain
Support Functions, where appropriate, provide effective challenge in the risk
identification process. IRM is also responsible for identifying material aggregate
risks on an ongoing basis.

x Assessment, Measurement and Response. Risks are assessed to understand their

severity and likelihood of occurrence under both normal and stressful conditions.
Risk severity is measured through modeling and other quantitative estimation
approaches, as well as qualitative approaches, based on management judgment. As
part of the risk assessment process, the First Line also evaluates the effectiveness of
the existing control environment and mitigation strategies. Management determines
the appropriate risk response, which may include implementing new controls,
enhancing existing controls, developing additional mitigation strategies to reduce the
impact of the risk, and/or monitoring the risk. These risk assessments and mitigation
strategies are challenged by the Second Line.

x Monitoring and Testing. Management monitors risks to ensure alignment with

Capital One’s risk appetite and to evaluate how the risk is affecting Capital One’s
strategy, business objectives and resilience. The First Line is required to evaluate the
effectiveness of risk management practices and controls through testing and other
activities. IRM and Support Functions, as appropriate, assess the First Line’s
evaluation of risk management, which may include providing effective challenge,
performing independent monitoring, or conducting risk or control validations.

x Aggregation, Reporting and Escalation. Capital One’s risk aggregation processes

aggregate risk information from lower levels of the business hierarchy to higher
levels to determine material risk themes across the Enterprise and provide a
comprehensive view of performance against risk appetite. Material risks are reported
to the Risk Committee of the Board of Directors and the appropriate senior
management committees no less than quarterly.

x Capital and Liquidity Management (including stress testing). Capital One’s risk
management practices inform key aspects of Capital One’s capital planning,
including the development of stress scenarios, the assessment of the adequacy of

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 post-stress capital levels, and the appropriateness of potential capital actions. In
assessing its capital adequacy at both COFC and CONA, Capital One identifies how
and where its material risks are accounted for within the capital planning process.
Monitoring and escalation processes exist for key capital thresholds and metrics to
continuously monitor capital adequacy. Prudent balance sheet management is a
critical component of Capital One’s overall business strategy as it enables
management to manage risk and allows Capital One to achieve its long-term financial
objectives. Capital One identifies and manages funding and liquidity risks that could
affect its earnings, balance sheet strength, and investor confidence. Capital One also
manages its liquidity position to satisfy regulatory requirements.

x Risk Data and Enabling Technology. Risk data and technology are utilized for risk
reporting and to monitor changes to Capital One’s risk profile. Core governance and
risk systems are used as the systems of record to monitor risks, controls, issues, and
events and support the analysis, aggregation, and reporting capabilities across the risk
categories.

x Culture and Talent Management. The RMF relies on the culture, talent, and skills of
Capital One’s employees. Every associate at the Company is responsible for risk
management; however, associates with specific risk management skills and expertise
within the first, second, and third lines of defense are critical to execute appropriate
risk management across the enterprise.

Enterprise Risk Management and Categories of Risk

Enterprise Risk Management

Capital One devotes significant resources to maintaining and continuously improving the
company’s Risk Management Capabilities. A key component of its Risk Management system is
the Enterprise Risk Management function and the role it plays in developing, implementing,
maintaining, and monitoring adherence to the RMF and the supporting Enterprise Risk
Management Policy.

Capital One’s Enterprise Risk Management function is led by the Head of Enterprise
Risk Management and reports directly to the CERO as well as maintains a seat on the senior
leadership team of the Credit and Financial Risk Management organization. The Enterprise Risk
Management function is responsible for the following:

x Setting enterprise guidelines and frameworks to support the identification,

assessment, measurement, monitoring, controlling, and reporting of risks including
concentrations of risk.

x Establishing enterprise risk management governance and strategy; providing advice

to the three lines of defense, as the advice relates to enterprise risk management; and
communicating significant risk management trends and insights from the enterprise
level.

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 x Conducting oversight, including review and challenge by providing effective
challenge; independently monitoring enterprise risk management activities; and
independently escalating enterprise risk management gaps and issues.

x Driving risk aggregation, including maintaining a complete and current inventory of

material risks; and analyzing and independently assessing the Enterprise Risk Profile
across all categories.

x Driving holistic reporting of risk to senior management and the Board through the
Enterprise Risk Profile report and other reporting.

x Administering, monitoring, and supporting enterprise-wide communication of the

Risk Appetite Program.

The Enterprise Risk Management function fulfills these responsibilities through the
establishment of processes and capabilities which support the Enterprise Risk Management
Framework.

Capital One applies its RMF to protect itself from the major categories of risk that it is
exposed to through its business activities. Capital One has seven major categories for the
management of risk, as described below.

Categories of Risk
Compliance The risk to current or anticipated earnings or capital arising from violations of
laws, rules or regulations. Compliance risk can also arise from
nonconformance with prescribed practices, internal policies and procedures,
contractual obligations or ethical standards that reinforce those laws, rules or
regulations
Credit The risk to current or projected financial condition and resilience arising from
an obligor’s failure to meet the terms of any contract with the Company or
otherwise perform as agreed
Liquidity The risk that the Company will not be able to meet its future financial
obligations as they come due, or invest in future asset growth because of an
inability to obtain funds at a reasonable price within a reasonable time
Market The risk that an institution’s earnings or the economic value of equity could
be adversely impacted by changes in interest rates, foreign exchange rates or
other market factors
Operational The risk of loss, capital impairment, adverse customer experience or
reputational impact resulting from failure to comply with policies and
procedures, failed internal processes or systems, or from external events
Reputation The risk to market value, recruitment and retention of talented associates and
maintenance of a loyal customer base due to the negative perceptions of
internal and external constituents regarding the Company’s business
strategies and activities

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 Strategic The risk of a material impact on current or anticipated earnings, capital,
franchise or enterprise value arising from the Company’s competitive and
market position and evolving forces in the industry that can affect that
position; lack of responsiveness to these conditions; strategic decisions to
change the Company’s scale, market position or operating model; or, failure
to appropriately consider implementation risks inherent in the Company’s
strategy

Compliance Risk Management

Capital One recognizes that compliance requirements for financial institutions are
increasingly complex and that there are heightened expectations from financial services
regulators and customers. In response, Capital One continuously evaluates the regulatory
environment and proactively adjusts its compliance program to fully address these requirements
and expectations.

Capital One’s Compliance Management Program establishes expectations for

determining compliance requirements, assessing the risk of new product offerings, creating
appropriate controls and training to address requirements, monitoring for control performance,
and independently testing for adherence to compliance requirements. The program also
establishes regular compliance reporting to senior business leaders, the executive committee and
the Board of Directors.

The Chief Compliance and Ethics Officer is responsible for establishing and overseeing
Capital One’s Compliance Management Program. Business areas incorporate compliance
requirements and controls into their business policies, standards, processes and procedures.
They regularly monitor and report on the efficacy of their compliance controls and Compliance
periodically independently tests to validate the effectiveness of business controls. The Chief
Compliance and Ethics Officer also oversees the company’s Ethics Office, which administers the
Code of Conduct and provides training and guidance to ensure the company meets its high
expectations for ethical behavior and business practices.

Credit Risk Management

Capital One recognizes that it is exposed to changes in credit quality driven by economic
cycles, market pressures and other factors. Consequently, the Company follows robust risk
management practices designed to ensure its credit portfolio is resilient to economic downturns
and other drivers of changing credit performance. The tools Capital One relies on in this
endeavor include customer selection, underwriting, monitoring, remediation, and portfolio
management. In unsecured consumer loan underwriting, Capital One generally ensures lending
decisions are resilient to higher credit losses than those prevailing at the time of the underwriting.
In commercial underwriting, Capital One generally requires strong cash flow, collateral,
covenants, and guarantees. In addition to sound underwriting, Capital One continually monitors
its portfolio and takes steps to collect or work out distressed loans.

The CCFRO, in conjunction with the Chief Credit Officers, for each line of business, is
responsible for establishing credit risk policies and procedures, including underwriting and hold

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guidelines and credit approval authority, and monitoring credit exposure and performance of
Capital One’s lending-related transactions. The Chief Credit Officers are responsible for
evaluating the risk implications of credit strategy and the oversight of credit for both the existing
portfolio and any new credit investments.

Capital One’s credit policies establish standards in five areas: customer selection,
underwriting, monitoring, remediation and portfolio management. The standards in each area
provide a framework comprising specific objectives and control processes. These standards are
supported by detailed policies and procedures for each component of the credit process. Starting
with customer selection, Capital One’s goal is to generally provide credit on terms that generate
above hurdle returns. Capital One uses a number of quantitative and qualitative factors to
manage credit risk, including setting credit risk limits and guidelines for each of its lines of
business. Capital One monitors performance relative to these guidelines and reports results and
any required mitigating actions to appropriate senior management committees and its Board of
Directors.

Liquidity Risk Management

Capital One recognizes that liquidity risk is embedded within its day-to-day and strategic
decisions. Liquidity is essential for banks to meet customer withdrawals, account for balance
sheet changes, and provide funding for growth. Capital One has acquired and built deposit
gathering businesses and actively monitors its funding concentration. Capital One manages
liquidity risk, which is driven by both internal and external factors, centrally and establishes
quantitative risk limits to continually assess liquidity adequacy.

The CCFRO, in conjunction with the Head of Liquidity, Market and Capital Risk
Oversight, is responsible for the establishment of liquidity risk management policies and
standards for governance and monitoring of liquidity risk at a corporate level. Capital One
assesses liquidity strength by evaluating several different balance sheet metrics under severe
stress scenarios to ensure it can withstand significant funding degradation. Results are reported
to the Asset Liability Committee monthly and to the Risk Committee no less than quarterly.
Capital One also continuously monitors market and economic conditions to evaluate emerging
stress conditions and to develop appropriate action plans in accordance with its Contingency
Funding Plan and Recovery Plan.

Capital One uses internal and regulatory stress testing and the evaluation of other balance
sheet metrics within its Liquidity Framework to confirm that the firm maintains a fortified
balance sheet. Capital One relies on a combination of stable and diversified funding sources,
along with a stockpile of liquidity reserves, to effectively manage liquidity risk. Capital One
maintains a sizable liquidity reserve of cash and cash equivalents, high-quality unencumbered
securities and investment securities and certain loans that are either readily marketable or
pledgeable. Capital One also continues to maintain access to secured and unsecured debt
markets through regular issuance.

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 Market Risk Management

Capital One recognizes that interest rate and foreign exchange risk are present in its
business due to the nature of its assets and liabilities. Market risk is inherent from the financial
instruments associated with Capital One’s business operations and activities including loans,
deposits, securities, short-term borrowings, long-term debt and derivatives. Capital One
manages market risk exposure, which is principally driven by balance sheet interest rate risk,
centrally and establishes quantitative risk limits to monitor and control its exposure.

The CCFRO, in conjunction with the Head of Liquidity, Market, and Capital Risk
Oversight, is responsible for the establishment of market risk management policies and standards
for the governance and monitoring of market risk at a corporate level. The market risk position
is calculated and analyzed against pre-established limits. Capital One uses industry accepted
techniques to analyze and measure interest rate and foreign exchange risk and performs
sensitivity analysis to identify its risk exposures under a broad range of scenarios. Results are
reported to the Asset Liability Committee monthly and to the Risk Committee no less than
quarterly.

Management is authorized to utilize financial instruments as outlined in Capital One’s

policy to actively manage market risk exposure. Investment securities and derivatives are the
main levers for the management of interest rate risk. In addition, Capital One also uses
derivatives to manage foreign exchange risk.

Operational Risk Management

Capital One recognizes the criticality of managing operational risk on both a strategic and
day-to-day basis and that there are heightened expectations from its regulators and customers.
Capital One has implemented appropriate operational risk management policies, standards,
processes and controls to enable the delivery of high quality and consistent customer experiences
and to achieve business objectives in a controlled manner.

The Chief Operational Risk Officer (“CORO”), in collaboration with the Chief
Technology Risk Officer (“CTRO”), is responsible for establishing and overseeing Capital One’s
Operational Risk Management Program. Both the CORO and CTRO report to the CERO. The
program establishes practices for assessing the operational risk profile and executing key control
processes for operational risks. These risks include topics such as internal and external fraud,
cyber and technology risk, data management, model risk, third-party risk management, country
risk, payments risk, and business continuity. Operational Risk Management and Technology
Risk Management enforce these practices and deliver reporting of operational risk results to
senior business leaders, the executive committee and the Board of Directors.

Reputation Risk Management

Capital One recognizes that reputation risk is of particular concern for financial
institutions and, increasingly, technology companies, in the current environment. Areas of
concern have expanded to include company policies, practices and values and, with the growing
use of social and digital platforms, public corporations face a new level of scrutiny and channels
for activism and advocacy. The heightened expectations of internal and external stakeholders

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have made corporate culture, values and conduct pressure points for individuals and advocates
voicing concerns or seeking change. Capital One manages both strategic and tactical reputation
issues and builds relationships with government officials, media, community and consumer
advocates, customers and other constituencies to help strengthen the reputations of both Capital
One and the industry. Capital One’s actions include implementing pro-customer practices in its
business and serving low- to moderate-income (“LMI”) populations and communities in its
market area consistent with a quality bank and an innovative technology leader. The Executive
Vice President, Head of External Affairs is responsible for managing Capital One’s overall
reputation risk program. Day-to-day activities are controlled by the frameworks set forth in the
Reputation Risk Management Policy and other risk management policies.

Strategic Risk Management

Capital One recognizes that strategic risk is present within its business and strategy.
Capital One monitors risks for the impact on current or future earnings, capital growth or
enterprise value arising from changes to the Company’s competitive and market positions,
including as a result of evolving forces in the industry. Additionally, Capital One monitors
timely and effective responsiveness to these conditions, strategic decisions that impact the
Company’s scale, market position or operating model and failure to appropriately consider
implementation risks in the Company’s strategy. Potential areas of opportunity or risk inform
the Company’s strategy, which is led by the Chief Executive Officer and other senior executives.
The CERO, in consultation with the CCFRO, oversees the identification and assessment of risks
associated with the Company’s strategy and the monitoring of these risks throughout the year.

Capital One’s Strategic Risk Management Policy, processes and controls encompass an
ongoing assessment of risks associated with corporate or line of business specific strategies.
These risks are managed through periodic reviews, along with regular updates to senior
management and the Board.

Key Risk Management Strengths

Capital One maintains several key risk management processes that operate across risk
categories including: Capital Management, Balance Sheet Management, Model Risk
Management, Technology Risk Management, and Data Risk Management.

Capital Management

The prudent management of capital is one of Capital One’s highest priorities. Capital
One’s capital must be sufficient to support the business plans and risk profiles of its business
activities to absorb adverse shocks (systemic as well as idiosyncratic) and to protect against
unexpected losses. Capital is vital to the Company’s continued operation and ability to lend to
creditworthy businesses and consumers, both in normal market environments and in periods of
market stress and uncertainty. Capital One actively manages capital adequacy and ensures
appropriate transparency with its Board and senior management through ongoing monitoring,
reporting, and supporting analysis.

Capital Adequacy Process Framework. Capital One’s Capital Policy codifies its Capital
Adequacy Process (“CAP”) Framework, which ensures COFC’s and CONA’s capital adequacy

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and resilience to potential uncertainties, consistent with the risk appetite, capital targets, and
capital goals established by its Board. Capital One’s CAP framework establishes the oversight
roles and responsibilities for governance bodies and senior management, as well as the internal
control framework that defines the roles for the Company’s three lines of defense across the CAP
components. These internal controls ensure adherence to policies and procedures, and support
the integrity of the Company’s capital projections. Capital One monitors and reports to senior
management and the COFC and CONA Boards of Directors current and projected capital ratios
against defined targets, goals, and composition objectives for both COFC and CONA. Capital
One’s capital goals, capital targets, and respective triggers are determined using internal stress
testing, regulatory requirements (i.e., the Stress Capital Buffer, Federal Reserve minimums, and
the Prompt Corrective Action framework), and market considerations. The Capital Policy also
establishes the Company’s destination capital level, which represents the level of capital at which
management expects to operate in the long term.

Capital Planning and Stress Testing. Capital One develops its capital plan under the
Federal Reserve’s capital plan rules. Capital One’s Capital Plan describes the development and
review of capital forecasts under Bank Holding Company and supervisory baseline and stress
scenarios, and planned capital actions over the planning horizon. Capital One’s Capital Plan is
updated and approved by its Board of Directors at least annually (more frequently if there are
material changes to its risk profile, balance sheet, or anticipated capital levels). As part of capital
planning and stress testing, Capital One develops capital forecasts to assess how to maintain a
capital base and structure that adequately supports its risk exposures. While common equity is
Capital One’s predominant form of capital, the firm assesses opportunities to supplement or
replace a portion of its common equity base with additional forms of capital (e.g., Tier 2 capital)
to optimize its capital structure, adhere to regulatory requirements and to manage the associated
costs based on need. The issuance, redemption, or repurchase of common equity, non-
cumulative perpetual preferred securities, or Tier 2 capital instruments is included in Capital
One’s Capital Plan and requires the prior approval of its Board of Directors.

Capital One’s planned capital actions are consistent with effective capital distribution
limitations, ensure that the Company maintains sufficient capital to protect against identified
risks, satisfies regulatory capital requirements, and enables asset growth (as allocated through its
managerial capital process).

Balance Sheet Management

Prudent balance sheet management is a critical component of Capital One’s overall

business strategy as it enables management to manage risk and allows the Company to achieve
its long-term financial objectives. Capital One is exposed to liquidity risk primarily through its
involvement in the traditional banking activities of taking deposits and extending loans and lines
of credit, as well as through its utilization of the capital markets to raise funding. Capital One
identifies and manages funding and liquidity risks that could affect its earnings, balance sheet
strength, and investor confidence. The Company also manages its liquidity position to satisfy
regulatory requirements.

The Company implements its liquidity management philosophy through the Liquidity
Adequacy Framework (the “Liquidity Framework”). The Liquidity Framework enables Capital

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One to meet its liquidity goal of maintaining a fortified balance sheet that is resilient to
uncertainties that may arise because of systemic and/or idiosyncratic liquidity events. The
Liquidity Framework also enables the Company to manage its liquidity in accordance with
current requirements and prospective regulatory guidance.

Corporate governance, monitoring, and oversight across the three lines of defense form
the foundation that ensures the integrity of liquidity management at Capital One. Additionally,
the Liquidity Framework comprises the governing principles that apply to the management of
liquidity. These principles are used to monitor, measure, and report liquidity risk; to develop
funding and investment strategies that enable the Company to maintain an adequate level of
liquidity to support its businesses and satisfy regulatory requirements; and to protect the
Company from a broad range of liquidity events should they arise.

Model Risk Management

Model risk is the potential for adverse consequences from decisions based on incorrect or
misused model outputs and reports. Model risks may have various causes, including erroneous
implementation, model underperformance, catastrophic breakdown, or gradual degradation.
Inappropriate use may occur when models (even sound models) are used in ways that are
inconsistent with the original intent or assumptions, used outside of their range of applicability,
or when combined with other models with which they interact or depend. Balancing the
materiality of model risk along with the business decision it supports, models are expected to be
reliable, fall within reasonable performance expectations, and be conceptually as well as
technically sound. Capital One establishes and monitors risk appetite metrics for model risk
through specific model governance and model validation processes.

Model risk that exceeds established metrics and limits is reported to the CCFRO and,
where appropriate, to the relevant Risk Steward to assess if the model risk compromises the
ability to operate within the relevant risk appetite and to determine if escalation to the Board of
Directors is needed.

Capital One mitigates model risk by establishing the Model Risk Management
Framework. Capital One’s Model Risk Management Framework manages model risk by
specifically addressing the (i) identification of models and their risk through the inventory
process, acquisition, and general model governance activities; (ii) quantification of risk for all
three model components (i.e., information input, processing, and reporting) through validation;
(iii) activities on development, deployment, ongoing monitoring, and changes to the model;
(iv) mitigation of model risk through effective challenge and critical analysis by objective,
informed parties who can identify model risks, limitations, and assumptions and produce
appropriate changes; and (v) acceptance of the remaining model risk by the relevant model
owner.

Model risk is addressed within the scope of Operational Risk reporting to the Operational
and Compliance Risk Committee on a quarterly basis and reported to the Board within the
Integrated Risk Management report at least twice a year. Model risks that exceed Board risk
appetite limits or notification thresholds are reported to the Board in line with Enterprise Risk
Management policies, standards, and procedures.

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 Technology Risk Management

Strong Technology Risk Management is critical for Capital One to achieve its business
objectives, reliably meet the expectations of customers, and deliver a Cybersecurity risk is a
particularly critical subset of technology risk, as Capital One is entrusted with the safeguarding
of its customers’ sensitive information, including sensitive personal information. The second-
line CTRO is responsible for overseeing the technology and cybersecurity risk. Within Capital
One’s taxonomy, these risks are a subset of operational risk. Given their importance, however,
the CTRO is organizationally a peer to the CORO. The first line has also established a strong
central cybersecurity function, led by the Chief Information Security Officer (the “CISO”). The
CISO establishes and manages the enterprise-wide Information Security Program under the
oversight of the CTRO. While no organization can eliminate cybersecurity and technology risk
entirely, Capital One devotes significant resources to mitigate such risks.

Data Management Risk Management

Capital One also recognizes the importance of managing the risks associated with data
management. These risks include data not being readily available, data usages not being
properly understood, data having errors, or data being improperly shared, destroyed, or retained.
Capital One’s Information Data Management Policy defines data management risk and the roles
and processes to mitigate the risks. The First Line Divisional Data Risk Officers primarily
manage these risks at the divisional level and Enterprise Data Risk Management is the Second
Line oversight function.

Integration of Discover into the Capital One RMF

Immediately upon closing, Capital One will begin to apply its RMF to Discover’s
businesses and risk management functions. In parallel, Capital One will start a process to
integrate Discover’s existing risk management functions directly into their counterparts or
equivalents at Capital One. In those instances where Capital One does not currently have an
equivalent risk management function (e.g., for the Discover Global Network, discussed below),
Capital One will establish such a function with appropriate executive oversight and merge the
relevant Discover risk management function into it upon the consummation of the Proposed
Transaction.

Capital One expects that this integration will occur in phases and result in one, cohesive
and comprehensive Risk Management system for the combined entity operating under uniform
Capital One policies, standards and expectations. During the integration period, Capital One will
mitigate the risks related to the transition to a single risk management framework through the
implementation of a comprehensive integration plan. The integration plan will seek to prioritize
the highest risk areas first as well as provide a means for monitoring, reporting and escalating
progress against the plan.

With respect to the Discover Global Network, Capital One’s risk management strengths
provide a strong foundation for integration. Capital One recognizes that conducting full risk
oversight related to the Discover Global Network will require Capital One to expand its risk
management capabilities. In particular, Capital One intends to establish, prior to integration,

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dedicated teams that will oversee the Discover Global Network’s risk management upon
consummation of the Proposed Transaction. These teams will include dedicated staff with
relevant industry experience and expertise across operational risk management, technology risk
management compliance and other Second Line teams.

As a part of the integration activities, Capital One will evaluate Discover’s current risk
management approach to the Discover Global Network, ensuring continuity of oversight during
the transition while developing plans to elevate risk management practices where necessary.
This evaluation will include an assessment of the talent and skill sets in all three Lines of
Defense to oversee and manage these risks consistent with Capital One’s Enterprise Risk
Management Framework, across applicable risk management categories, and risk appetite.
Additionally, Capital One will conduct detailed risk assessments of Discover Global Network,
including critical processes, infrastructure, and products. These risk assessments will result in
risk mitigation activities where appropriate, and will inform Capital One’s enterprise-level
assessments of material risk and risk appetite performance.

In light of Discover’s present status as a Category IV bank and its public regulatory
enforcement orders, Capital One believes this integration of Discover into Capital One’s RMF
will require sustained focus, investment and effort. In particular, Capital One believes it will
need to materially strengthen and enhance Discover’s existing risk management functions, and in
particular compliance, to comply with both Capital One’s internal standards and those of its
regulators. Capital One anticipates that this improvement will include extensive work to address
outstanding remediation under the two orders and possible future supervisory findings.

Capital One has designated a team of risk officers to prepare for integration and
coordinate where appropriate with Discover officials. This team will be responsible for
integration planning pre-close and integration execution upon close. As part of the pre-close
integration planning, Capital One intends to engage in preliminary assessments of Discover’s
risk management programs, policies, standards, staffing, and areas of focus. Capital One further
intends to use these assessments to develop preliminary plans for integration, including plans for
initial program enhancements and remediation of the relevant Discover functions upon close.
Where permissible, Capital One will seek Discover’s assistance to better understand Discover’s
existing compliance and risk management programs and activities.

For additional information on Capital One’s integration planning, see Confidential

Exhibit E.

3. Compliance

Capital One manages compliance risk through its Compliance Management Program
(“CMP”), as established by its Compliance Management Policy (“Compliance Policy”). The
CMP, as outlined in the Policy, provides an enterprise-wide approach to compliance risk
management and oversight that creates and supports a culture of compliance throughout the
Company. Capital One’s CMP is designed to ensure that Capital One appropriately identifies,
manages, and oversees all compliance risk – including consumer compliance, fair lending, and
AML risk – through sound governance, rigorous controls and transaction testing, advice and
effective challenge to the First Line and staff functions, and timely risk escalation. The program

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also establishes regular compliance reporting to senior business leaders, the executive
committee, and the Board of Directors.

The Chief Compliance and Ethics Officer is responsible for establishing and overseeing
the CMP and leads the Compliance & Ethics (“C&E”) department. C&E is staffed by
compliance leaders and professionals with expertise in regulatory risk management, testing,
investigations, ethics, and data. The C&E organization fulfills IRM risk activities as a Second
Line function that advises and effectively challenges the First Line and staff operations under
Capital One’s Enterprise Risk Management Framework.

The First Line and staff operations are accountable for complying with laws and
regulations and incorporating compliance requirements and controls into their business policies,
standards, processes, and procedures. They regularly monitor and report on the efficacy of their
compliance controls; as a second line IRM function, C&E independently tests to validate the
effectiveness of first line business controls. Additionally, C&E advises the first line on
applicable regulatory requirements, compliance risks related to new and changed products, and
the assessment and remediation of issues and events. C&E both advises and effectively
challenges the first line in their development and enhancement of products, processes and
procedures to ensure they maintain effective control oversight and support adherence to
compliance requirements.

For additional information on Capital One’s Compliance Management Policy, please see
Confidential Exhibit G.

Culture of Compliance

Capital One’s culture is built on two core values: Excellence and Do the Right Thing.
To promote these values, Capital One’s Code of Conduct (“Code”) memorializes a commitment
to comply with applicable laws, regulations and internal policies governing conduct and
operations. Following these policies helps to ensure that honesty, fair dealing, and integrity are
hallmarks of Capital One’s business dealings. By adhering to the Code, associates live Capital
One’s values and ensure that Capital One is recognized for modeling the highest standards of
business conduct in everything it does. The Code is more than just a set of “do’s and don’ts.” It
provides guidance, practical information, and resources that help enhance Capital One’s
relationships with its customers, each other, and all of the people that play a role in Capital One’s
success.

The Board of Directors reviews and approves the Code. The Ethics Office, which is
managed by the Chief Compliance and Ethics Officer, has day-to-day responsibility for
administering the Code and managing Capital One’s Ethics program. In addition, the Ethics
Office is responsible for managing the Ethics Line, which is a confidential reporting tool
operated by an independent third party. Reports may be submitted to the Ethics Line online or
through a call center that operates 24 hours a day, seven days a week. Ethics Line complaints
may be submitted anonymously, and phone calls are not recorded.

All newly hired associates receive the Code with their employment offer and, within their
first 30 days, must complete a 30-minute interactive computer-based training course where they

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agree to comply with the Code and demonstrate their understanding of its content. Thereafter,
all associates are required to complete the Code training annually and agree to comply with the
Code and all related policies, standards, and procedures.

Doing the right thing includes speaking up. Capital One expects all associates to
immediately report any suspected or potential violations of law, the Code, the company’s
policies, or other actions inconsistent with Capital One’s values. Associates may report concerns
to their manager, the Associate Relations team in Human Resources, the Ethics Line, or to the
Ethics Office. Raising concerns within Capital One does not prevent associates from reporting
the same concerns to law enforcement or the relevant government entity if there is a suspected or
potential violation of law. Further, Capital One prohibits retaliation against any individual for
making good faith claims regarding possible violations of law, the Code or other Company
policies. Capital One also prohibits retaliation against any individual for participating in or
cooperating with any investigation.

In addition, as discussed in Risk Management above, Capital One expects the integration
to require a substantial amount of investment in the Risk Management team and related
infrastructure to ensure a successful transition. Capital One has historically invested in
maintaining a strong CMP and continually enhances its practices. For examples of recent
enhancements to the CMP, see Confidential Exhibit H.

Oversight, Escalation and Reporting

Compliance risk reporting is foundational in supporting Capital One’s Board of Directors

and senior management committee members in executing their compliance risk oversight
responsibilities. The Compliance Policy and Compliance Risk Reporting Standard outline the
process for compliance reporting. Through the CMP, C&E supports the enterprise’s adherence
to Capital One’s compliance risk appetite by tracking and producing data that corresponds to
Compliance Risk Appetite Metrics (as well as informational metrics) that are reported to senior
management and the Risk Committee of the Board of Directors. In addition, the charter of the
Audit Committee requires the Chief Compliance and Ethics Officer to discuss the annual
assessment of the Corporation’s enterprise-wide compliance program, including management’s
corrective actions to address any deficiencies. The update is provided at the joint Risk and Audit
Committee meeting held in July each year.

Quarterly, Compliance produces the Compliance Update within the Integrated Risk
Management Report (“IRMR”) for the Risk Committee of the Board of Directors and senior
management through the Operational and Compliance Risk Committee. Further, Compliance
produces an annual update within the IRMR for the Audit Committee of the Board of Directors,
in accordance with its charter responsibilities. Compliance also provides divisional quarterly
compliance reports to the Division Risk Oversight Committees (“ROCs”), consistent with the
Senior Management Committee Standard. For functions that are not formally governed by a
ROC, Compliance evaluates and reports any material issues to the Chief Compliance and Ethics
Officer, CERO, and Board via the IRMR.

As required by regulation and/or at the discretion of the Chief Compliance and Ethics
Officer, additional reports may be produced by Compliance to inform the Board, a Board

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Committee, and/or senior management on compliance specific topics (e.g., Regulation O, Annual
Swap Dealer Report, policy renewals, etc.).

In addition, Compliance contributes risk analysis for other risk reporting provided to
Capital One’s Board of Directors, such as the Enterprise Risk Profile (“ERP”) within the IRMR.
The CERO submits the ERP to the Risk Committee of the Board of Directors and senior
management Executive Risk Committees. Compliance also contributes risk appetite metrics and
annual risk narratives via Enterprise Risk Management’s Executive Committee Risk Scorecard.
The risk scorecards are organized by Executive Committee members to evaluate risk-taking
performance for their respective business areas.

Risk Assessments

Compliance performs and challenges First Line risk assessments at the divisional,
business unit, and process and product level to provide a formal, independent perspective on
compliance risk. Compliance also conducts Targeted Compliance Risk Assessments, which
assess specific areas of risk, or areas required to be assessed by statute, regulatory guidance, or
internal policies. Compliance performs the following risk assessments independently of those
conducted by the respective business units: AML/Economic Sanctions, Fair Lending, Identity
Theft Red Flags, and Anti-Bribery/Anti-Corruption.

Fair Lending

Capital One’s enterprise-wide consumer Fair Lending Compliance Management program

(the “Fair Lending program”) works within the CMP framework, as provided in Capital One’s
Fair Lending Compliance Policy, and includes components specifically designed to manage fair
lending risk.

The Fair Lending program has five primary components. First, it requires lending
businesses to have an oversight committee dedicated to fair lending that includes business
executives and Compliance and Legal experts; these committees meet regularly to review and
discuss fair lending risks and issues. The second and third components are independent risk
assessment processes beyond the standard risk assessments executed by the first line. The first is
a fair lending assessment of models, policies, segmentations, and any other criteria used by credit
or deposit businesses to make marketing, underwriting, pricing, or other decisions about
customer outcomes. The second is an annual report written by the Fair Lending Compliance
team that assesses the fair lending risk in each business and for the enterprise.

Fourth, in addition to these independent risk assessments, the Fair Lending Data Analysis
Standard provides guidelines for identifying areas of heightened fair lending risk for targeted
analyses according to an annual schedule. Pursuant to this process, the Fair Lending Compliance
team conducts statistical analyses in areas, for example, where Capital One associates exercise
judgment or discretion in making lending decisions, in order to assess the extent of potential fair
lending risk. These statistical analyses include the use of regression analysis when appropriate,
as well as a manual review of matched pairs, to understand if similarly situated applicants
received different decisions. Fifth, the fair lending program has fair lending training, with
content specific to different job families, taken by all associates in lending divisions.

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 For additional information on Capital One’s Fair Lending program, please see
Confidential Exhibit I.

Complaint Management

Complaint management at Capital One is executed under the framework established by

Compliance and outlined in the Enterprise Complaints Operating Standard (“ECO Standard”).
The ECO Standard sets guiding principles for the management and governance of the
operational, compliance, and reputational risk posed by complaints. Within the ECO Standard, a
clear division of responsibilities and strong collaboration between First Line and Second Line is
established in order to ensure consistent and timely complaint handling, as well as accurate and
timely complaint reporting and analysis for senior management. Primary activities for the
business consist of the maintenance of complaint intake channels, handling processes, analysis,
reporting, monitoring, and training. Primary activities for Compliance include the testing
businesses for adherence to the ECO Standard, the review of specific complaints routed to
Compliance from the business complaints teams for assessment of regulatory risk exposure, and
the management of relationships with regulators.

III. Anti-Money Laundering Compliance Record

The Bank Merger Act requires that, in considering an application under the Bank Merger
Act, the OCC shall “take into consideration the effectiveness of any insured depository
institution involved in the proposed merger transaction in combating money laundering
activities.”28

Capital One, including CONA, maintains a strong BSA/AML and Sanctions compliance
program (the “AML Program”). The AML Program is based on five pillars: internal policies,
procedures and controls; designation of an AML officer; employee training; independent testing;
and customer due diligence. The AML Program is intended to ensure that Capital One complies
with applicable laws, rules, regulations, and supervisory guidance related to anti-money
laundering, counter-terrorist financing and economic sanctions risks and controls; ensure that
Capital One is identifying and managing these risks and controls through sound governance and
oversight, and operating in a manner consistent with its business strategy and risk appetite; and
protect Capital One’s business and reputation, as well as the broader financial system, from
financial crime and/or activities prohibited by law or regulation.

The COFC and CONA Boards of Directors and senior management prioritize the
important objectives associated with maintaining the integrity of the financial system as a whole,
protecting national security, and making appropriate referrals to law enforcement. The AML
Program is administered in a safe and sustainable manner, and is sufficiently staffed with
appropriately trained and knowledgeable professionals across the BSA/AML and Sanctions
ecosystem.

Capital One maintains a written BSA/AML/Sanctions policy (including a Customer

Identification Program) approved by the COFC Board of Directors and a Board-appointed BSA
Compliance and Sanctions Officer (“Chief AML Officer”), who possesses the necessary
28
12 U.S.C. § 1828(c)(11).

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knowledge, authority and resources to effectively execute all assigned duties. The Chief AML
Officer is supported by an experienced, knowledgeable and competent team of AML, Sanctions,
Risk Management and Technology leaders and professionals. The AML Program’s execution
approach aligns with Capital One’s enterprise-wide defined risk and control framework
components, as defined by the COFC Enterprise Risk Management Policy, consistent with
heightened standards, and leverages all three lines of defense.

In addition, Capital One continues to invest in further advancing its AML Program, with
a focus on rigor, adaptability, and sustainability. The AML Program is also taking an innovative
approach to meeting compliance obligations at scale through technology investments in machine
learning for transaction monitoring, next-generation customer risk rating processes, and modern
investigator platforms.

Capital One applies a continuous improvement approach, and designs and enhances
controls to ensure adherence with both legal requirements and each applicable entity’s defined
business strategy and risk appetite; this continuous improvement approach applies to COFC’s
AML Program, as well. All Capital One associates and contractors are required to complete
enterprise-wide AML/Sanctions training annually. Specific BSA/AML/Sanctions Compliance
training courses tailored to roles, responsibilities and business segments are required for relevant
associates and contractors. Training is also provided annually to the Board of Directors. In
addition, relevant information, including Suspicious Activity Reporting information, is regularly
provided to senior management and the COFC Boards of Directors.

Between consummation of the Proposed Transaction and systems conversion, CONA

will aim to execute on integration activities promptly. The BSA/AML/OFAC compliance risk of
the combined entity will be a point of focus in this interim period. CONA will ensure prompt
oversight through the establishment and execution of business monitoring and compliance
oversight of the AML processes supporting the Discover portfolio, risk assessments and testing,
ongoing AML compliance advice and training as appropriate, and management of issues and
escalations consistent with Capital One risk management practices.

Based on all the information above and in the exhibits, it is evident that Capital One
employs a comprehensive and effective BSA/AML Program, which supports approval of the
OCC Application.

IV. Competitive Effects

The Bank Merger Act prohibits the OCC from approving a proposed merger or
acquisition if it would substantially lessen competition in any banking market, unless the agency
determines that the anticompetitive effects of the proposal are clearly by the probable effect of
the proposal in meeting the convenience and needs of the communities to be served.29 At the
time the Bank Merger is consummated, Discover Bank and CONA would be affiliates and,
therefore, a competitive effects review by the OCC should be unnecessary. However, the
competitive effects analysis that is being provided in the FRB Application is included below to

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demonstrate that the Proposed Transaction, including the Bank Merger, would not result in any
significantly adverse impact on competition in any relevant banking market.

In evaluating the competitive effects of a proposed merger or acquisition between

financial institutions, the federal banking agencies, in consultation with the Antitrust Division of
the Department of Justice (“DOJ”), considers all facts in the record. In particular, the Federal
Reserve considers the number and strength of competitors that will remain in each relevant
market, the relative shares of those competitors, market concentration levels and any increase in
those levels as a result of the transaction, and other relevant characteristics of each market.

As a preliminary screen to identify transactions that “clearly do not have significant

adverse effects on competition,” the banking agencies and DOJ calculate post-merger
concentration levels as measured by the Herfindahl-Hirschman Index (the “HHI”) and the post-
merger shares of the combined firm.30 Applying these screens, transactions that do not result in
(1) both a post-merger HHI of over 1,800 and an HHI increase of more than 200 points; or (2) a
post-merger share of 35% are unlikely to warrant further review.31

As discussed further in Exhibit 21 and Confidential Exhibit J, the Proposed Transaction

will not substantially lessen competition in any market. Concentration and share levels for the
Proposed Transaction are well below safe harbor thresholds in all markets in which the parties
compete:

U.S. (2023) Change in HHI Post-Merger HHI Combined Share

Deposits 3 405 2.8%
Checking Account Deposits 0 440 1.1%
Savings Account Deposits 4 593 3.5%
Credit Card Purchase Volume 74 1,226 13.6%
Credit Card Outstanding Balances 178 1,060 19.0%

With respect to banking, there is no overlap in any local banking market. The only
relevant geographic market in which to analyze banking competition between the parties is
nationwide. In this context, the parties are small players holding less than 3% of deposits
whether measured as a whole, by checking account, or savings account deposits, and the
Proposed Transaction will cause de minimis changes in concentration levels for these products.
The combined Capital One-Discover will continue to face robust competition for deposits from,
in some cases, substantially larger banking institutions such as JPMorgan Chase, BOA, Wells
Fargo, Citigroup, and U.S. Bancorp, as well as digital-first financial institutions like Chime
Financial, SoFi Technologies, Ally Financial, EverBank Financial, Synchrony Financial, and

30
Dept. of Just., 1995 Bank Merger Guidelines (“Bank Merger Guidelines”), (1995),
https://www.justice.gov/sites/default/files/atr/legacy/2007/08/14/6472.pdf.
31
See Board of Governors of the Fed. Res. Sys., Banking Information & Regulation, FAQs (Oct. 9, 2014),
https://www.federalreserve.gov/bankinforeg/competitive-effects-mergers-acquisitions-faqs.htm.

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Varo Money, eliminating any possibility that the Proposed Transaction will substantially lessen
competition in any banking market.

The Proposed Transaction will similarly not substantially lessen competition with respect
to credit card issuance. Credit card issuing is a highly competitive and fragmented industry.
Despite exponential purchasing growth, concentration levels have declined in the last decade,
demonstrating the competitive and dynamic nature of the industry.32 Credit card issuers can and
do readily adjust, change, and add to their credit card portfolios to attract consumers, and
consumers can and do readily add and switch among credit cards. At the same time, new
payment and lending solutions, such as “Buy Now, Pay Later,” have entered the payments and
lending landscape, competing with credit card issuers for consumers’ share of wallet and acting
as significant competitive constraints. The Proposed Transaction will not alter these competitive
dynamics. The merged Capital One-Discover will lower its combined costs and continue to
compete with the plethora of credit card issuers including JPMorgan Chase, Citibank, BOA, U.S.
Bancorp, Wells Fargo, Amex, Barclays, and Synchrony Bank, and the Proposed Transaction will
increase consumers’ overall access to credit, given Capital One’s more inclusive underwriting
standards.

With respect to payments networks, the Proposed Transaction will deconcentrate the
marketplace and greatly improve competition. Capital One does not own or operate any
payments network. Vertically integrating with Discover’s payments networks will add scale to
these credit and debit networks—which respective market shares are in long-term decline—
making the networks less costly to operate on a marginal basis and more attractive to consumers
and merchants. The combination will also allow Capital One to lower its transaction-related
costs and to reinvest those dollars in improved banking products and services, including
investments into the payments networks to reduce fraud, improve dispute resolution processes,
and lessen information sharing friction to the benefit of consumers and merchants. These
network investments will allow Capital One to further scale the networks, improve the actual and
perceived acceptance of the networks, and create a credible alternative to the Visa, Mastercard,
and Amex payments networks, which dominate the industry today.

In view of the above and as further detailed in Exhibit 21 and Confidential Exhibit J, the
competitive considerations of the Proposed Transaction are consistent with approval of the
Application.

V. Financial Stability Risk Considerations

Pursuant to the Bank Merger Act, the OCC must consider in every application whether
the Proposed Transaction would result in greater or more concentrated risks to the stability of the
U.S. banking or financial system.33 As discussed below, the Proposed Transaction will not
increase systemic risk to the U.S. banking or financial system. Instead, the Proposed Transaction
would result in a stronger banking organization that is better positioned to compete both with the
largest banking organizations and the larger regional banking organizations in the United States.

32
See Exhibit 21, n. 55.
33
12 U.S.C. § 1842(c)(7).

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 The Federal Reserve, and to a lesser extent, the OCC, have delineated five metrics
through which it has assessed the financial stability factors (“Financial Stability Factors”).34
Many of the metrics considered by the Federal Reserve seek to measure an institution’s activities
relative to the U.S. financial system. These metrics include:

x the size of the resulting banking organization;

x the availability of substitute providers for any critical products and services offered
by the resulting firm;

x the interconnectedness of the resulting firm with the banking or financial system;

x the extent of the cross-border activities of the resulting firm; and

x the extent to which the resulting firm contributes to the complexity of the financial
system.

Also interwoven into the agencies’ analysis is the relative degree of difficulty of
resolving the resulting firm if it were to experience financial distress. The Federal Reserve has
noted that the opaqueness and complexity of an institution’s internal organization are relevant to
resolvability aspects of the banking organization.35 A banking organization that can be resolved
in an orderly manner is less likely to inflict material damage to the U.S. financial system or
economy. The Federal Reserve has noted in its approvals that these categories are not exhaustive
and additional categories could impact its decision-making.

An analysis of these Financial Stability Factors and consideration further demonstrates

that the Proposed Transaction would not result in any risk to the stability of the U.S. banking
financial system.

These Financial Stability Factors are similar to the categories of systemic indicators used
by the Federal Reserve to identify banking organizations that should be considered GSIBs and to
calculate the capital surcharge applicable to a GSIB, as well as the general categories of
indicators collected in the Federal Reserve’s FR Y-15 reports (Banking Organization Systemic
Risk Report). As of December 31, 2023, COFC had a Method 1 GSIB score of 25.35. COFC’s
pro forma Method 1 GSIB score as of the same date – and reflecting its proposed combination
with Discover – would be only 33.00, an increase of only 7.65 points.

34
See Capital One Financial Corporation, FRB Order No. 2012-2 (Feb. 14, 2012) (the “Capital One Order”). See
also, e.g., First Citizens Bancshares, Inc., FRB Order No. 2021-12 (Dec. 17, 2021); The PNC Financial Services
Group, Inc., FRB Order No. 2021-04 (May 14, 2021); Huntington Bancshares Incorporated, FRB Order No. 2021-
07 (May 25, 2021); BB&T Corporation, FRB Order No. 2019-16 (Nov. 19, 2019); CIT Group, Inc., FRB Order No.
2015-20 (July 19, 2015); Letter to Jason J. Cabral, Esq. from Stephen A. Lybarger, CRA Decision #2017-186 (Oct.
16, 2017); CIT Group, Inc., FRB Order No. 2015-20 (July 19, 2015); Letter to Joseph M. Otting from Stephen A.
Lybarger (July 21, 2015) (OCC approval of CIT Bank’s acquisition of OneWest Bank, N.A.); OCC Corporate
Decision #2012-05 (April 2012); The PNC Financial Services Group, Inc., 98 Fed. Res. Bull. 16 (2012).
35
E.g., BB&T Corporation, FRB Order No. 2019-16 (Nov. 19, 2019).

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 Thus, following the Proposed Transaction, COFC would remain far below the threshold
score (130) necessary to be considered a GSIB under 12 CFR § 217.402.

Please see Exhibits 22 and 23 for copies of the public portion of COFC’s and Discover’s
FR Y-15 reports, as of December 31, 2023, respectively. Please also see Confidential Exhibit K
for, as of December 31, 2023, a pro forma GSIB score for COFC and a pro forma FR Y-15,
which reflects Discover’s operations.

In addition, COFC is a Category III organization, while Discover is currently not. As a

result of the Proposed Transaction, the assets and liabilities of these companies, including the
assets and liabilities of Discover acquired in the Proposed Transaction, would become subject to
the Supplementary Leverage Ratio and the Countercyclical Capital Buffer requirements of the
banking agencies’ regulatory capital rules, as well as the LCR and NSFR requirements that apply
to COFC as a Category III firm.36

A more detailed analysis of the Proposed Transaction under each of the Financial
Stability Factors is discussed below.

Size. The Financial Stability Factor relating to size and availability of substitute
providers of critical products may be informed by other aspects of the BHC Act’s requirements,
namely compliance with: (1) antitrust standards, (2) the 10% national deposit cap for certain
interstate acquisitions,37 and (3) the 10% national liabilities cap.38 The Proposed Transaction is
consistent with the federal banking agencies’ precedent reviewing the competitive effects of
mergers, and the Proposed Transaction does not come close to approaching either the national
deposit cap or national liabilities cap. Accordingly, as a threshold matter, the Proposed
Transaction is not likely to pose a risk to the financial stability of the U.S. banking or financial
system based on size metrics.

COFC accounts for only approximately 2.0% of total adjusted domestic deposits of all
insured banks and thrifts in the United States, as of December 31, 2023.39 The deposits of
Discover to be assumed account for only 0.6% of total adjusted domestic deposits. The pro
forma total deposits of COFC, as of December 31, 2023, would represent only 2.6% of adjusted
domestic deposits. This is far less than the domestic deposit concentrations of the largest banks
in the United States, for example, as of December 31, 2023: JPMC – 11.6%; BOA – 10.1%;
Wells Fargo – 8.1%; and Citigroup – 4.4%.

36
The Federal Reserve has previously noted that the expansion of more stringent prudential standards to the assets
and liabilities acquired as part of a Proposed Transaction is a favorable consideration under the financial stability
factor. See Morgan Stanley/E*Trade Order, FR Order 2020-05 at p. 23 (Sept. 30, 2020),
https://www.federalreserve.gov/newsevents/pressreleases/files/orders20200930b1.pdf.
37
See 12 U.S.C. § 1842(d).
38
See 12 U.S.C. § 1852.
39
Calculation represents Total Liabilities Before Exclusions less Total Allowable Exclusions plus Interest Accrued
and Unpaid on Deposits aggregated for all FDIC-insured banks and thrifts and reported on their Consolidated Report
of Condition and Income for the quarter ended December 31, 2023. As of December 31, 2023, banks and thrifts
held $17.7 trillion in adjusted domestic deposits.

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 Capital One’s pro forma total consolidated assets would be less than the total asset size of
the seven largest U.S. banking organizations as of December 31, 2023.40 The pro forma total
assets of COFC on consummation of the Proposed Transaction would be approximately $646
billion as of December 31, 2023, and represent only approximately 2.7% of the total assets of the
U.S. banking system41 and a significantly smaller share of the total assets of the U.S. financial
system. As noted, on a pro forma basis, COFC would only hold approximately 2.3% of total
liabilities on a national basis, as of December 31, 2023.42 This percentage is far less than the
nationwide liabilities concentrations of the four largest banking organizations, as of December
31, 2023: BOA – 7.7%; JPMC – 6.9%; Wells Fargo – 5.0%; and Citigroup – 5.4%.

In addition, when the pro forma asset size of COFC is measured using the total exposures
of COFC and Discover, as defined for purposes of the size indicators section of the Federal
Reserve FR Y-15 report, it becomes even clearer that the Proposed Transaction would not result
in systemic risk under the size factor. Indeed, this approach demonstrates even more accurately
than total assets the extent to which the combined company poses less systemic risk than those
banking organizations that have been classified as U.S. GSIBs. In evaluating a bank holding
company’s total exposures, the relevant measures include its total derivatives, securities
financing transactions, other on-balance sheet exposures and other off-balance sheet exposures.
Based on the Form FR Y-15 report of COFC and the Form FR Y-15 report of Discover
(“Discover FR Y-15”) as of December 31, 2023, on a pro forma basis, COFC would have total
exposures of $752.6 billion, which is approximately one-third of the average total exposures of
$2.2 trillion for the U.S. GSIBs as of that same date.43

For all these reasons, the Proposed Transaction should not raise systemic concerns under
the size factor.

Substitutability. The substitutability factor recognizes that a banking organization is

more systemically important if it provides important products and services that customers would
have difficulty replacing if the banking organization were to fail. In the United States, COFC
and Discover offer primarily retail and commercial deposit products, credit cards, payment
services, consumer and commercial loan products and treasury management services.
Additionally, although the Discover Global Network provides payment services, substitutability

40
Based on December 31, 2023 FR Y-9C reports of bank holding companies.
41
The amount of total assets of the U.S. financial system is conservatively approximated by using total assets of
FDIC-insured banks and thrifts, as of December 31, 2023, which was $23.7 trillion.
42
This percentage is estimated using the method of calculation in the Federal Reserve’s Regulation XX, 12 CFR
part 251, and the amount of Total Liabilities in effect through June 30, 2024, stated by the Federal Reserve. See 88
Fed. Reg. 38054 (Jun. 12, 2023), Announcement of Financial Sector Liabilities, Federal Reserve System Docket No.
OP-1808 (June 12, 2023), https://www.federalregister.gov/documents/2023/06/12/2023-12389/announcement-of-
financial-sector-liabilities.
43
The pro forma total exposures of the combined company were calculated based on the total exposures of such
activities reported on the COFC and Discover FR Y-15 reports (as of December 31, 2023). The total exposures as
the U.S. GSIBs were: JPMC – $4.6 trillion, BOA – $3.8 trillion, Citigroup – $3.0 trillion, Wells Fargo –
$2.3 trillion, The Goldman Sachs Group, Inc. (“Goldman Sachs”) – $2.0 trillion, Morgan Stanley – $1.5 trillion,
Bank of New York Mellon – $438.9 billion and State Street Corporation (“State Street”) – $318.0 billion as of that
same date.

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is not a concern given the substantial size of other payment providers such as Visa, Mastercard,
and Amex.

None of the products or services of Capital One or Discover can be regarded as highly
specialized or “critical” financial products or services that are available from only a small
number of providers. The fact that the Proposed Transaction would have little effect on financial
stability is reinforced by an evaluation of the substitutability indicators of the FR Y-15 report. In
evaluating a bank holding company’s substitutability, the relevant measures include a banking
organization’s total payments activity, amount of assets under custody and underwriting activity.
Based on the COFC FR Y-15 report and the Discover FR Y-15 Report (each as of December 31,
2023), COFC had total payments activity of $1.3 trillion and, on a pro forma basis, this would
increase to $1.8 trillion as a result of the Proposed Transaction. Furthermore, Capital One’s total
assets under custody and underwriting activity would remain nearly unchanged at $4.9 billion.
Each of the resultant pro forma values are only a fraction of the average activity totals reported
by the U.S. GSIBs.44

For all these reasons, the Proposed Transaction would not raise financial stability risk
concerns under the substitutability factor.

Interconnectedness. In evaluating systemic risk, the Federal Reserve evaluates the

interconnectedness of a banking organization because the failure of a bank to meet payment
obligations to other banks can accelerate the spread of financial contagion when the banking
organization is highly interconnected with other financial firms. As underscored by the
discussion above, the Proposed Transaction would not materially increase the interconnectedness
of the U.S. banking or financial system.

Neither Capital One nor Discover currently engages in business activities or participates
in markets to a degree that would pose significant risk to other institutions in the event of
financial distress at Capital One in the future. Moreover, the Proposed Transaction would not
cause Capital One to add any critical services or to increase its interconnectedness to other firms
or markets such that they would pose a significant risk to the financial system in the event of
financial distress. Instead the Proposed Transaction will enable Capital One to provide payment
services and grow its retail banking services. Therefore, the Proposed Transaction would not
increase the interconnectedness of the combined organization in any meaningful manner.

44
These pro forma activity amounts of the combined company were calculated by adding such activity amounts
reported on their respective FR Y-15 reports (as of December 31, 2023). In contrast, the respective total payments
activity, total assets under custody and total underwriting activity reported by the U.S. GSIBs on their December 31,
2023 FR Y-15 reports were as follows: JPMC – $556.1 trillion (payments), $33.3 trillion (assets under custody) and
$446.9 billion (underwriting); BOA – $170.4 trillion (payments), $4.1 trillion (assets under custody) and
$546.9 billion; Wells Fargo – $65.3 trillion (payments), $2.6 trillion (assets under custody) and $265.6 billion
(underwriting); Citigroup – $200.6 trillion (payments), $22.9 trillion (assets under custody) and $426.4 billion
(underwriting); Goldman Sachs – $17.7 trillion (payments), $1.7 trillion (assets under custody) and $253.6 billion
(underwriting); Morgan Stanley – $15.0 trillion (payments), $3.9 trillion (assets under custody) and $266.8 billion
(underwriting); Bank of New York Mellon– $243.1 trillion (payments), $36.4 trillion (assets under custody) and
$9.3 billion (underwriting); and State Street – $92.6 trillion (payments), $30.6 trillion (assets under custody) and
$0.0 billion (underwriting).

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 When the interconnectedness of the combined company is measured using the
interconnectedness indicators of the FR Y-15 report, the Proposed Transaction would not result
in a material increase in systemic risk under such indicators. In evaluating a bank holding
company’s interconnectedness, the relevant measures include the banking organization’s total
claims on the financial system, its total liabilities to the financial system and the total value of
debt and equity securities it issues. Based on COFC’s and Discover’s respective FR Y-15
reports (each as of December 31, 2023), COFC’s total intra-financial system assets would
increase only slightly (i.e., less than 5%) from $73.3 billion to $76.6 billion and its intra-financial
system liabilities would increase from $3.3 billion to $6.8 billion on a pro forma basis. These
resultant pro forma amounts for intra-financial system assets and intra-financial system liabilities
are only 35% and 3%, respectively, of the averages for such indicators reported by the U.S.
GSIBs. Based on COFC’s and Discover’s respective FR Y-15 reports (each as of December 31,
2023), COFC’s securities outstanding would increase on a pro forma basis from $167.8 billion to
$260.5 billion. Although this is a sizable increase in percentage terms (i.e., 55%), the resultant
pro forma amount of $260.5 billion securities outstanding is less than half of the average of
securities outstanding of the U.S. GSIBs.45

For all these reasons, the Proposed Transaction would not raise financial stability risk
concerns based on the interconnectedness factor.

Cross-Border Activity. In evaluating financial stability risk, the Federal Reserve

evaluates a banking organization’s cross-border activity because a banking organization with
significant international activities can transmit financial problems from one country to another
during a financial crisis. Banks with significant cross-border activities also may be more
difficult to resolve because they require coordination with foreign authorities and access to
foreign assets.

Capital One will not materially increase its limited cross-border activities as a result of
the Proposed Transaction. As of December 31, 2023, Capital One’s cross-border activities
include cross-jurisdictional claims of $8.1 billion and cross-jurisdictional liabilities of $0.6
billion. Such activities consist of credit card lending in the U.K. and Canada, local currency
liabilities associated with the U.K. and Canada credit card businesses, and de minimis cross-
border commercial lending activities. As an initial matter, COFC and CONA are not acquiring
any material entities outside the U.S. as part of the Proposed Transaction. Moreover, the cross-
border activities of Discover that Capital One would acquire as part of the Proposed Transaction
would be limited primarily to payment transaction processing and settlement services.

45
These pro forma activity amounts for the combined company were calculated by adding such activity volumes
reported by COFC and Discover, individually, on the FR Y-15 report (each as of December 31, 2023). The
respective total intra-financial system assets, intra-financial system liabilities and securities outstanding reported by
the U.S. GSIBs on their FR Y-15 reports for that same date were as follows: JPMC – $371.5 billion, $506.9 billion
and $1.1 trillion; BOA – $251.1 billion, $151.5 billion and $756.0 billion; Wells Fargo – $179.1 billion,
$125.8 billion and $545.4 billion; Citigroup – $233.8 billion, $338.2 billion and $666.3 billion; Goldman Sachs –
$310.8 billion, $83.1 billion and $542.4 billion; Morgan Stanley – $233.0 billion, $77.8 billion, and $486.2 billion;
Bank of New York Mellon – $79.8 billion, $279.5 billion and $76.9 billion; and State Street – $81.0 billion,
$231.8 billion and $48.1 billion.

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 When the cross-border activity of the combined company is measured using the cross-
border indicators of the FR Y-15 report, it is evident that the Proposed Transaction would not
result in material systemic risk under such indicators. In evaluating a bank holding company’s
cross-border activity, the relevant measures are a banking organization’s total cross-jurisdictional
claims and its total cross-jurisdictional liabilities. Based on COFC’s and Discover’s relevant
Form FR Y-15 reports (as of December 31, 2023), the COFC’s cross-jurisdictional claims on a
pro forma basis of $8.1 billion would increase only slightly (i.e., 1%) to $8.2 billion and
similarly its cross-jurisdictional liabilities would also increase only slightly (i.e., less than 6%)
from $0.60 billion to $0.63 billion. These resultant pro forma amounts for the combined
company are de minimis when compared with the amounts of the U.S. GSIBs.46

Therefore, the Proposed Transaction would not result in any meaningful increase in
Capital One’s cross-border operations or activities and would not create difficulties in
coordinating any resolution of the combined company or otherwise increase the risk to U.S.
financial stability.

Complexity. The complexity of a banking organization is relevant to the Federal

Reserve’s financial stability risk analysis because highly complex operations have a broader
impact on the financial system and generally are more difficult to resolve if they fail. The
Proposed Transaction would not contribute to the overall complexity of the U.S. banking or
financial system.

As noted, the Proposed Transaction does not involve the purchase or assumption of any
complex assets or liabilities. Accordingly, the Proposed Transaction would not cause the
resulting organization to have a complex organizational structure, add complex interrelationships
or add any unique characteristics that would complicate resolution of the firm, or otherwise pose
a significant risk to the financial system, in the event of financial distress. Capital One and
Discover have successfully designed and implemented frameworks to address applicable
regulatory requirements for resolution planning, and Capital One will apply its framework
following consummation of the Proposed Transaction.

In addition, when the complexity of the combined company is measured using the
relevant indicators of COFC’s and Discover’s respective Form FR Y-15 reports, it is also evident
that the Proposed Transaction would not result in a material increase in systemic risk under this
factor. In evaluating a bank holding company’s complexity, the relevant measures are: a
banking organization’s total notional amount of over-the-counter (“OTC”) derivatives; total
adjusted trading, available-for-sale securities and equity securities with readily determinable fair
values not held for trading (collectively, “Trading and AFS Securities”); and total illiquid and
hard-to-value assets, known as “Level 3 Assets.” Based on COFC’s and Discover’s respective
FR Y-15 reports (each as of December 31, 2023), COFC would have a pro forma total notional

46
These pro forma activity amounts for the combined company were calculated by adding such activity volumes
reported on COFC’s and Discover’s most recently published FR Y-15 reports (as of December 31, 2023). The much
larger cross-jurisdiction claims and cross-jurisdiction liabilities reported by the U.S. GSIBs on their respective FR
Y-15 reports for that same date were as follows: JPMC – $946.8 billion and $863.7 billion; BOA – $536.6 billion
and $374.8 billion; Wells Fargo – $175.5 billion and $69.4 billion; Citigroup – $1.1 trillion and $1.2 trillion;
Goldman Sachs – $684.1 billion and $577.9 billion; Morgan Stanley – $394.2 billion and $339.4 billion; Bank of
New York Mellon – $101.8 billion and $158.6 billion; and State Street – $101.2 billion and $160.6 billion.

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amount of OTC derivatives of $287.7 billion, total Trading and AFS Securities of $9.7 billion
and total Level 3 Assets of $1.2 billion. These amounts are all de minimis when compared with
the average of such indicator totals as reported by the U.S. GSIBs.47

Also, Capital One does not believe that the Proposed Transaction will make COFC or
CONA more difficult to resolve if they fail. CONA is subject to the OCC’s recovery plan
requirements which establish minimum standards for recovery planning by national banks,
federal savings associations, and insured federal branches of foreign banks. Capital One will
integrate Discover into CONA’s recovery planning framework. As previously noted, although
CONA will have a larger asset base post-closing, it does not anticipate material changes to its
resolution strategies. The acquisition of the Discover Global Network by COFC is under review
to determine what changes will be made to COFC’s resolution plan; however, those changes will
not result in a material change to the complexity of Capital One.

For all these reasons, the Proposed Transaction would not significantly increase financial
stability risk under the complexity factor.

Conclusion on Financial Stability Risk. In view of all the foregoing, the Proposed
Transaction will not result in greater or more concentrated risks to the stability of the U.S.
banking or financial system, and, therefore, the financial stability risk considerations are
consistent with approval of the Proposed Transaction.

As noted, the Proposed Transaction will enable the combined company to achieve greater
diversification of business lines, customers and geographies, enhanced earnings prospects and
operational efficiencies. These important benefits will enable the combined Capital One to
compete more effectively against the larger regional banks, as well as the exponentially larger
banking organizations that have steadily and disproportionately increased their banking and
financial service market share concentrations during the last decade. Following closing, COFC
and CONA will continue to operate within the robust Governance Framework described above.

In addition, as previously discussed, COFC is a Category III organization, while Discover

is currently not. As a result of the Proposed Transaction, the assets and liabilities of these
companies, including the assets and liabilities of Discover acquired in the Proposed Transaction,
would become subject to the Supplementary Leverage Ratio and the Countercyclical Capital
Buffer requirements of the banking agencies’ regulatory capital rules, as well as the LCR and
NSFR requirements that apply to COFC as a Category III firm.

Additional information demonstrating that the Proposed Transaction would not result in
any meaningful increase in risks to the stability of the U.S. banking or financial system is
provided in Confidential Exhibit L.

47
The volumes of these respective activities (total notional amounts of OTC derivatives, amounts of Trading and
AFS Securities, and Level 3 Assets amounts) reported by the significantly larger banking organizations on their FR
Y-15 reports for that same date were as follows: JPMC – $49.2 trillion, $252.4 billion and $23.7 billion; BOA –
$32.8 trillion, $192.4 billion and $9.3 billion; Wells Fargo – $12.6 trillion, $69.1 billion and $9.6 billion; Citigroup
– $39.0 trillion, $98.3 billion and $12.7 billion; Goldman Sachs – $38.5 trillion, $189.9 billion and $25.9 billion;
Morgan Stanley – $36.6 trillion, $163.6 billion and $10.4 billion; Bank of New York Mellon – $1.1 trillion,
$30.3 billion and $0.0 billion; and State Street – $2.5 trillion; $13.1 billion and $4.0 million.

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VI. Convenience and Needs Considerations of the Bank Merger

In acting on this OCC Application, the Bank Merger Act requires the OCC to consider
the effects of the Proposed Transaction on the convenience and needs of the communities to be
served.48 Capital One will build on the strong commercial, consumer and retail foundations of
CONA and Discover Bank to create an enhanced, more competitive financial institution. Both
CONA and Discover Bank have proud histories of commitments to their communities. CONA
has a long-standing track record of “Outstanding” Community Reinvestment Act performance
since 2007, and has ranked first or second in community development (“CD”) lending among all
banks since 2015, with over $59 billion in CRA-qualified loans over that period. CONA
appreciates the importance of Chicagoland and Delaware, and remains committed to maintaining
a strong presence in those markets, as well as maintaining service excellence across the United
States. The combined entity will benefit from the significant investments that CONA has made
over the last decade to modernize its technology and expand its suite of products and services
offered to its customers. Capital One has a suite of intuitive digital tools that provide a
personalized customer experience, including:

x Second Look: Proactively notifies customers of double charges, generous tips and
other suspicious activity

x Eno: A natural language two-way SMS assistant can monitor charges, send fraud
alerts and get answers to customer questions

x Creditwise: In addition to credit monitoring, Creditwise empowers customers to

understand, build and use their credit responsibly with a digital score improvement
tool and daily score refreshes.

Capital One is one of the nation’s largest business card franchises, offering an array of
business card options that meet the needs of small and mid-market business customers of various
credit levels and spending habits, as well as preferences in rewards such as cash back and travel.
Additionally, business customers benefit from a suite of services such as automated payments,
fraud protection, employee cards, multi-user capabilities, reporting, accounting integrations, and
virtual card offerings.

Capital One offers simple checking products, with no monthly fees or minimum balance
requirements, and was the first major bank to completely eliminate overdraft fees while still
allowing customers to retain the ability to utilize this service. Capital One’s flagship 360
Checking product is BankOn certified. Capital One has a full service digital bank offering
customers over 40 fully digitized features and services. Unique features include the ability to
add cash to checking accounts at any CVS, Walgreens, or Duane Reade by Walgreens location;
real-time alerts about checking account activity from Capital One and Eno (Capital One’s virtual
assistant); multiple overdraft options (e.g., auto-decline, free transfers, no fee overdraft). The
Proposed Transaction will allow Capital One to continue to innovate and improve its offerings,

48
12 U.S.C. § 1842(c)(5).

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and to significantly expand the availability of its flagship BankOn certified, no fee, minimum
balance and overdraft fee checking product to a broader range of consumers.

Capital One operates 259 (as of June 2024, reflecting previously determined actions
unrelated to the Proposed Transaction) bank branches across three distinct regions: (i) New
York/New Jersey (ii) Maryland/DC/Virginia, and (iii) Louisiana/Texas. Additionally, Capital
One has 55 Capital One Cafés (as of June 2024, reflecting previously determined actions
unrelated to the Proposed Transaction), located across 21 of the top 25 Metropolitan Statistical
Areas (“MSAs”), delivering a completely unique experience. Capital One operates Cafés in
several underserved communities, including Washington, DC’s historic Anacostia neighborhood,
Chicago’s South Side in Hyde Park, Downtown Detroit, and Downtown Los Angeles. In
addition, Capital One plans to open a Capital One Café next year in the South Bronx. The Cafés
are open to anyone – not just Capital One customers – for food and beverage offerings, free Wi-
Fi, and non-profit meeting spaces. The Cafés do not offer teller cash services, but do have
deposit gathering ATMs. Capital One is also currently piloting and intends to expand its
deployment of cashier’s check issuance kiosks and cardless ATM access. Café Ambassadors
provide financial literacy and wellness education, assist customers with account servicing,
account opening, and problem resolution. Capital One credit and debit cardholders receive
access to private working spaces.

Capital One has a number of businesses and associated features today that do not directly
overlap with Discover’s active businesses, including Auto Finance, Auto Navigator, Small
Business Card, Small Business Banking, Commercial Banking and more.

x Auto Finance: Auto Finance provides loans to consumers across the credit spectrum
for the purpose of purchasing or refinancing new and used automobiles. Auto
Finance originates loans primarily through two channels: direct and dealer (also
known as indirect). Through its extensive dealer relationships, Auto Finance
purchases retail contracts, which are secured by automobiles. Auto Finance’s indirect
channel products include financing for the purchase of new and used vehicles; the
direct channel’s sole product is the refinancing of existing motor vehicle loans
directly to consumers.

x Auto Navigator: Auto Navigator is a proprietary technology built by Capital One

that enables consumers to research potential vehicles to purchase, view dealer
inventory across the United States and receive vehicle pricing information.
Consumers can use Auto Navigator to receive pre-qualified offers on financing.
Capital One views Auto Navigator as a unique offering in the marketplace and,
therefore, a value driver of this specific business line.

x Small Business Card: Capital One is one of the nation’s largest business card
franchises, offering an array of business card options that meet the needs of small and
mid-market business customers of various credit levels and spending habits, as well
as preferences in rewards such as cash back and travel. Additionally, business
customers benefit from a suite of services such as automated payments, fraud
protection, employee cards, multi-user capabilities, reporting, accounting integrations,
and virtual card offerings.

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 x Small Business Banking: The Small Business Banking business provides digital and
traditional banking services including loans, both term and revolving, to small
business owners, generally in the Company’s regional markets. The business resides
within the Consumer Bank line of business.

x Commercial Banking: The Commercial Banking business provides lending, capital

markets and transaction services to corporations. To meet the product demands of
clients, Commercial Banking is divided into two primary lines of business:
Commercial Real Estate and Corporate Banking. Six horizontal business functions
support these primary lines of business: (1) treasury management, (2) capital
markets, (3) underwriting and portfolio management, (4) commercial operations, (5)
commercial risk and (6) commercial business office. Commercial Banking serves
clients at both regional and national scale depending on the line of business.

These businesses are a strategic priority and Capital One believes that there will be
opportunities to offer these compelling products and services to Discover’s customers through
Capital One. There will be no significant changes to Capital One products, which, aside from
the Discover Global Network, will remain the primary products of the combined organization.
For products or services that are not offered by Capital One, following the Proposed Transaction,
Capital One will continue to service those products for legacy customers and assess whether
there are additions to the Capital One suite of products that would align to the organization’s
overall strategy and risk profile.

For example, CONA does not offer private student loans, home equity loans, personal
loans or money market or IRA accounts. On November 29, 2023, Discover announced that its
Board of Directors had authorized management to explore the sale of the private student loan
portfolio and transfer servicing of these loans to a third-party servicer. Discover stopped
accepting new applications for private student loans on February 1, 2024. Discover is targeting
to complete the sale of its student loan business in the second half of 2024. If this sale is not
completed in advance of the Proposed Transaction, Capital One intends to pursue a sale of this
business and fully exit student lending activities after the consummation of the Proposed
Transaction. While CONA does not offer home equity loans, personal loans, money market or
IRA accounts, it plans to continue to service any such loans or accounts on its balance sheet
following the Proposed Transaction and assess whether such businesses should be offered for
new customers.

In addition to the different product lines, Capital One and Discover offer different
features in connection with their various banking products. Following the Proposed Transaction,
Capital One will evaluate all of Discover’s products and services for opportunities to optimize its
product offerings to offer a best-in-class suite of financial products. Due to the minimal changes
to the product set and the continued servicing of existing business lines, customers should
experience minimal disruption as a result of the Proposed Transaction.

As discussed in detail in the Commitment to the CRA section below, the combined CONA
is committed to continuing its strong record of CRA performance and helping to serve the needs
of its communities nationwide and within its CRA assessment areas (“AAs”). As part of the
Proposed Transaction, Capital One is proactively meeting with community groups and

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considering how best to continue to meet the needs of the communities it serves. Following
these discussions, Capital One plans to develop a community benefit plan reflecting the feedback
from the communities.

Based on all the foregoing, and the discussion below of the parties’ CRA record, it is
evident that the convenience and needs of the communities and other constituents of Capital
One, including CONA, and Discover, including Discover Bank, will be favorably served by the
Proposed Transaction.

VII. Commitment to the CRA

Both CONA and Discover Bank have a strong commitment to serving the needs of their
communities as demonstrated by each bank’s strong CRA compliance record and performance in
their most recent CRA performance evaluations as well as each organization’s ongoing
community engagement activities. The complementary nature of each bank’s business and CRA
program will result in an even stronger program with expanded opportunities moving forward.
The combination of CONA and Discover Bank brings together robust programs and unique best
practices for serving the needs of LMI and underserved communities and small businesses. The
following pages will highlight the programs, products and strengths that a combined CONA and
Discover Bank will bring together to provide an even higher level of support for LMI consumers
and neighborhoods and small businesses.

CONA is particularly proud of a number of elements of its CRA program and

governance, including its:

x Comprehensive CRA program that is fully supported by its Board of Directors and
senior executives. Senior managers who are responsible for lines of business that
impact CRA performance are charged with CRA-related accountabilities. The CRA
strategy and program management team works closely with applicable lines of
business to provide centralized oversight and subject matter expertise, and to promote
strong CRA performance. Further, Capital One’s CRA Officer reports annually to the
Board of Directors.

x Team of more than 150 full-time equivalent employees who serve functions related to
CRA strategy and program management, CD finance, community outreach, and
corporate philanthropy.

x Deep relationships with existing community partners, and continued development of

new relationships to support investments, lending, and service activities.

x Community Advisory Council (“CAC”), a diverse group of 27 of the nation’s leading

experts on consumer protection, consumer banking, fair lending, affordable housing,
small business, and financial well-being. The CAC was initiated in 2013. Members’
recommendations are informed by their own work directly serving LMI populations
as well as policy research that delivers insights on proven and emerging strategies for
helping un- and under-banked and subprime consumers improve their financial well-
being. The CAC has helped Capital One better understand the financial needs of

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 underserved consumers. Additionally, the CAC has become a forum for Capital One
leaders to solicit input from CAC members about business strategy and product
development. One prominent example of this is the role that the CAC played in
Capital One’s groundbreaking decision to eliminate overdraft fees.

x Strong collaboration and accountability across business lines on CRA investments,

lending, and services.

x Long-standing track record of “Outstanding” CRA performance, as discussed in

greater detail below. CONA has ranked first or second in CD lending among all
banks since 2015, with over $59 billion in CRA-qualified loans over that period.
CONA is in the fourth year of its five-year, $200 million Impact Initiative, supporting
non-profit organizations seeking innovative solutions to address affordable housing,
workforce development, small business creation, financial well-being and digital
access.

Capital One intends to continue this level of support and oversight following the
consummation of the Proposed Transaction. In addition, Capital One intends to review the level
of resources dedicated to community development to ensure that it is well positioned to continue
its strong commitment to this area.

A. CONA CRA Performance Record

CONA received an overall rating of “Outstanding” on its most recent CRA performance
evaluation by the OCC, dated as of August 24, 2020 (the “CONA CRA Evaluation”). The
evaluation period for the CONA CRA Evaluation was January 1, 2017 to December 31, 2019.

During that period, COFC also controlled Capital One Bank (USA), National Association
(“COBNA”), a national bank with its main office in Glen Allen, Virginia. During that period,
CONA operated as an interstate bank that offered a broad spectrum of financial products and
services to consumers, small businesses, and commercial clients through a variety of channels.
COBNA engaged exclusively in credit card operations, offering credit cards for both consumers
and small businesses, both inside the United States and, through an indirect subsidiary in the
United Kingdom, and a branch of COBNA in Canada, outside the United States. CONA and
COBNA were merged on October 1, 2022, with CONA as the surviving national bank.

Like CONA, COBNA also received an overall rating of “Outstanding” on its most recent
CRA performance evaluation by the OCC, also dated as of August 24, 2020 (the “COBNA CRA
Evaluation”). The CONA CRA Evaluation and the COBNA CRA Evaluation are summarized
separately below.

1. CONA CRA Evaluation

During the evaluation period, CONA operated as an interstate bank offering a broad
spectrum of financial products and services to consumers, small businesses, and commercial
clients through a variety of channels. CONA’s consumer banking products and services included
checking and savings accounts with no monthly fees or minimum balance requirements, auto
loans, and consumer credit cards through retailers. CONA also offered small business and

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commercial loans, including multifamily residential loans,49 commercial deposit accounts
including checking, money market, and certificates, and treasury management services. The
bank’s primary business strategy was small business lending, which comprised 97% of the
bank’s lending during the evaluation period. Farm and agricultural lending were not a primary
business strategy.

As of the conclusion of the evaluation period on December 31, 2019, CONA operated
462 retail banking branches with 135, or 29%, of those branches located in LMI geographies.
Additionally, CONA operated 39 cafés with six, or 15%, of the cafés located in LMI
geographies. CONA’s retail banking branches, deposit-taking ATMs, and cafés were located in
California, Colorado, Connecticut, Delaware, the District of Columbia, Florida, Illinois,
Louisiana, Maryland, Massachusetts, Minnesota, New Jersey, New York, Oregon, Pennsylvania,
Texas, Virginia, and Washington.

As discussed above, CONA received an overall rating of “Outstanding” in the CONA

CRA Evaluation. This was CONA’s second consecutive “Outstanding” rating on its CRA
performance evaluations. For the CONA CRA Evaluation, CONA received “Outstanding”
ratings under each of the Lending and Investment Tests and a “High Satisfactory” rating under
the Service Test.

CONA also received overall “Outstanding” ratings in each state or combined statistical
area or multistate metropolitan statistical area that was reviewed including: (a) the New York-
Newark, NY-NJ-CT-PA Combined Statistical Area (the “New York CSA”); (b) the Philadelphia-
Camden-Wilmington, PA-NJ-DE-MD Multistate Metropolitan Statistical Area (the “Philadelphia
MMSA”); (c) the Washington-Baltimore-Arlington, DC-MD-VA-PA Combined Statistical Area
(the “Washington, DC CSA”); and (d) the individual States of California, Colorado, Delaware,
Florida, Illinois, Louisiana, Massachusetts, Minnesota, Oregon, Texas, Virginia, and
Washington. The OCC also stated in the CONA CRA Evaluation that examiners did not identify
that CONA (or any affiliate of CONA whose loans had been considered as part of the
institution’s lending performance) had engaged in discriminatory or other illegal credit practices
that require consideration in the evaluation.

The New York CSA and the Washington, DC CSA represented the bank’s most
significant markets in terms of lending, deposits (after allocating Internet deposits), and branch
distribution and carried the greatest weight in the OCC’s overall conclusions. The New York
CSA AA (the “New York CSA AAs”) accounted for 24.3% of the bank’s home mortgage, small
business, and small farm lending, 26.9% of total allocated deposits, and 38.5% of the branch
network. The Washington, DC CSA AA (the “Washington, DC CSA AA”) accounted for 10.2%
of home mortgage, small business, and small farm lending, 39.9% of total allocated and
unallocated deposits, and 23.8% of the branch network. In order of significance, the states of
Texas, Louisiana, and California were the next largest markets, and when combined with the
New York CSA AA and Washington, DC CSA AA, contained 90.1% of the bank’s total

49
The OCC noted that in November 2017, due to the highly competitive marketplace and challenging rate
environment, CONA made the business decision to cease new originations of residential mortgage and home equity
loan products within the consumer banking business. Accordingly, most of the bank’s home mortgage originations
in 2018 and 2019 were multifamily loans.

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deposits, 99.7% of the branch network, and 72.9% of reportable loans during the evaluation
period.

The major factors that supported the overall “Outstanding” rating included:

(a) Lending Test – CONA’s “Outstanding” lending test rating was based on an
“Outstanding” lending rating in all the bank’s rating areas.50

(b) Investment Test – CONA’s “Outstanding” rating under the investment test was
based on an “Outstanding” investment rating in all the bank’s rating areas.

(c) Service Test – CONA’s “High Satisfactory” rating under the Service Test,
reflected, among other things that CONA received a “High Satisfactory” service
test rating in the New York CSA AA and an “Outstanding” service test rating in
the Washington, DC CSA AA, which represented CONA’s most significant
markets in terms of deposits and branch distribution and carried the greatest
weight in the OCC’s overall conclusions.

(d) Flexible and Innovative Lending Products – CONA offered flexible home
mortgage and small business lending programs in order to serve AA credit needs.
Flexible lending programs included: Community Home Buyers (“CHB”), Dream,
Federal Housing Administration (“FHA”), Veterans Affairs (“VA”), and Small
Business Administration (“SBA”) loans. The CHB and Dream loans were
portfolio products, which allowed for more flexible underwriting that considered
the individual borrower’s unique circumstances. The bank offered its Dream
product in Louisiana and Texas, and its CHB product in the Northeast and Mid-
Atlantic, to finance the purchase of homes by LMI borrowers and/or in LMI
geographies. They featured low down payment requirements without private
mortgage insurance, down payment assistance grants, consideration of
nontraditional credit history, and homebuyer education. The loans were complex
and labor-intensive.

CONA also offered loans to Community Development Financial Institutions

(“CDFIs”) and nonprofits. For example, CONA provided a loan of $750,000,
along with $277,500 in grants, to support a local CDC dedicated to providing
affordable housing and other neighborhood development programs to benefit LMI
populations in East New York. CONA also provided a $500,000 working capital
loan to a CDFI that provides affordable microloans, customized business
consulting, and community connections for underserved entrepreneurs in the San
Francisco Bay Area.

(e) Flexible and Innovative Investment Programs – CONA created and used
several innovative approaches in grant funding to respond to community needs,
including:

50
The OCC noted that an adequate percentage of CONA’s loans were made in its AAs.

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 x CONA’s Social Purpose Program – CONA developed the Social Purpose
Program as a mechanism that enhances the features of affordable housing
developments. Under this program, CONA increased its investment in select
non-profit-owned developments by providing grant funding to support social
service programs for residents.

x CONA’s Blueprints to Buildings (“B2B”) – B2B was created to provide grants

and pre-development funding to support new affordable housing. It was
intended to address the primary obstacles to building more affordable housing
such as lengthy and often unfunded preparatory steps required to jumpstart
affordable housing developments, and a lack of capital to move projects from
conception to fruition. B2B provided multi-year grants to support project
management expenses and low-cost, flexible predevelopment loans to pay for
project expenses. In addition, participants were eligible to apply for an
unsecured line of credit from CONA at a below-market rate to help move the
project from conception to closing.

x Construction Contractors College (“CCC”) – CONA partnered with a

number of non-profit organizations to develop and expand CCC. CCC was a
free, seven-month small business training and development program that
equipped qualified business owners in the construction trades business with
the knowledge, resources, and guidance they needed to successfully bid and
win public and private construction contracts. In addition to workshops, each
small business owner received one-on-one coaching and mentoring from
CONA associates and professionals from partner organizations.

x Homewards – In 2018, CONA launched Homewards, a national pilot program

that built the capacity of non-profit organizations to incorporate financial
coaching into their housing counseling programs in order to improve the
effectiveness of pre-purchase education. The program offered financial
coaching training to non-profit partners to use with clients.

(f) Bank-wide Community Development Services – During the evaluation period,

CONA associates provided CD services to many community organizations. This
included serving as financial literacy instructors for Junior Achievement (“JA”)
programs providing a total of 32,838 hours of service across CONA’s footprint.
JA programs primarily focused on teaching young people about the importance of
money management, workforce readiness, and entrepreneurial thinking. The
majority of students were from LMI communities.

2. COBNA CRA Evaluation

During the evaluation period and until its merger into CONA, COBNA engaged
exclusively in credit card operations. It offered credit cards for both U.S. consumers and small
businesses and also issued credit cards outside of the United States through COEP, an indirect
subsidiary of COBNA organized and located in the United Kingdom, and through a branch of
COBNA in Canada. COBNA had only one office located in Glen Allen, Virginia. It was

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designated as a limited purpose bank for CRA evaluation purposes, based on its overall business
strategy, primary focus, and product offerings.51

As discussed above, COBNA received an overall rating of “Outstanding” on its most

recent CRA performance evaluation by the OCC, dated as of August 24, 2020. This was
COBNA’s second consecutive “Outstanding” rating on its CRA performance evaluations. The
evaluation period for the COBNA CRA Evaluation was also January 1, 2017 to December 31,
2019.

COBNA was a limited-purpose bank for CRA purposes and was evaluated under the CD
test. The major factors that supported the overall “Outstanding” rating included:

(a) COBNA demonstrated a high level of CD loans, CD services, and qualified

investment activity, particularly investments that are not routinely provided by
private investors.52 Of the $9.9 billion in qualified CD loans, investments, and
grants originated or outstanding at the end of the evaluation period, $1.5 billion
benefited COBNA’s AA. COBNA and affiliate employees provided 26,785 hours
of qualifying CD services to over 43 organizations and programs in the AA and
6,558 hours of service to over 50 organizations outside the AA.

(b) COBNA demonstrated extensive use of innovative or complex-qualified

investments, CD loans, or CD services. The OCC noted that COBNA’s CD
strategy was to target opportunities first within its AA, then in a broader statewide
or regional area that included the AA, and finally nationally. The OCC also noted
that COBNA had considerable expertise in low-income housing tax credit
(“LIHTC”) transactions and had a large portfolio of such investments. The bank
evaluated all LIHTC opportunities in the AA, including those available in the
secondary market, and invested in those projects that met its standards. Many
LIHTC investments required close coordination among state and local
government agencies, non-profit organizations, other investors, and COBNA.
These investments illustrated COBNA’s leadership in complex transactions.

COBNA also engaged extensively in New Markets Tax Credit (“NMTC”)

transactions to support the revitalization/stabilization of LMI geographies. These
NMTC transactions are complex due to the involvement of multiple parties and
multiple layers of intricate financing, as well as the many regulatory and reporting
requirements to maintain compliance for a seven-year period. COBNA provided
$858 million in NMTC financing during the evaluation period, including $120
million that benefited the AA.

51
At the request of CONA’s and COBNA’s management, COBNA’s small loans to businesses and farms were
considered in CONA’s evaluation.
52
The OCC determined that COBNA has adequately addressed the needs of its AA. Accordingly, outside of AA
qualified investments, CD loans, and services were considered in evaluating its performance.

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 (c) COBNA exhibited excellent responsiveness to credit and CD needs in its AA.53
CD loans and investments made during the current evaluation period created
70,377 units of affordable housing for LMI families, including 11,323 units
within COBNA’s AA.

The OCC’s evaluation included a state rating of “Outstanding” for COBNA’s home state
of Virginia. The major factors that supported this rating included:

(a) COBNA demonstrated a high level of CD loans, CD services, and qualified

investment activity in the state of Virginia, particularly investments that are not
routinely provided by private investors.

(b) COBNA demonstrated extensive use of innovative or complex-qualified

investments, CD loans, or CD services in the State of Virginia.

(c) COBNA exhibited excellent responsiveness to credit and CD needs in the State of
Virginia.

B. Discover Bank’s CRA Performance Record

Discover Bank received a “Satisfactory” rating on its most recent CRA performance
evaluation by the FDIC, dated March 7, 2022 (the “Discover Bank CRA Evaluation”). The
evaluation period for the Discover Bank CRA Evaluation was January 1, 2020 to December 31,
2021. During the evaluation period, Discover Bank operated under two FDIC-approved CRA
strategic plans, the 2018-2020 CRA Strategic Plan (effective January 1, 2018 through December
31, 2020) and the 2021-2025 CRA Strategic Plan (effective January 1, 2021 through December
31, 2025).

The FDIC found that during the evaluation period, Discover Bank demonstrated
leadership and excellent responsiveness to the credit and CD needs of its AA, as well as the
greater statewide or regional area that includes the bank’s AA (“Discover Bank’s Broader
Area”). The bank provided a high level of CD investments, loans, grants, and services that
displayed extensive use of innovativeness and complexity with effective response to credit and
CD needs. Bank management had been innovative in designing and implementing the CRA
program, which included providing loans and investments through partnerships with various for-
profit and non-profit organizations and financial institutions. The bank also provided responsive
grants and significant technical expertise to address CD needs.

53
Pursuant to 12 CFR § 25.28(c), in determining a national bank’s CRA rating, the OCC considers evidence of
discriminatory or other illegal credit practices in any geography by the bank, or in any AA by an affiliate whose
loans have been considered as part of the bank’s lending performance. The OCC found evidence of a violation of
Section 5 of the Federal Trade Commission Act, 15 U.S.C. § 45(a)(1), related to the bank’s sales practices for small
business credit cards from January 2015 through December 2016. The bank provided remediation to 2,135
negatively impacted customers. Additionally, the bank provided remediation to 6,728 customers for whom the bank
was unable to confirm any impact. Remediation totaled $1.10 million. The OCC determined that the bank’s
management had taken appropriate corrective actions to strengthen controls over the bank’s sales practices and
implemented strict oversight to prevent future violations. As a result, the CRA performance rating was not lowered
as a result of these findings.

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 Importantly, Discover Bank met or exceeded its goals for “Outstanding” performance in
both 2020 and 2021; however, there were ongoing deficiencies related to student loan servicing
that resulted in the issuance of a new Consent Order by the Consumer Financial Protection
Bureau (“CFPB”). The continuing student loan servicing deficiencies negatively impacted
Discover Bank’s CRA rating, lowering the rating from “Outstanding” to “Satisfactory.”
Discover Bank achieved “Outstanding” CRA ratings in its previous three CRA performance
evaluations dated January 1, 2016, March 1, 2018, and June 1, 2020, respectively.

The goals for “Outstanding” that Discover Bank met or exceeded included:

(a) Strategic Plan Goal 1: New CD Loans and Investments – Discover Bank
provided $274.1 million in new qualified CD loans and investments, including
$134.5 million in 2020 and $139.6 million in 2021; this activity exceeded the
respective annual goals for outstanding performance.

The FDIC noted that during the evaluation period, Discover Bank took a
leadership role in preserving hundreds of affordable multi-family rental units and
used innovative approaches to finance economic development projects and
revitalization efforts throughout the assessment area and the broader area.
Notable examples of new CD loans and qualified investments provided during the
evaluation period included:

x Discover Affordable Housing Investment Fund (“DAHIF”) – The DAHIF

is a bank-created LIHTC program for financing the development and
preservation of affordable rental housing. Discover Bank’s CRA team works
with for-profit and non-profit developers to identify projects in need of tax
credit equity and seeks to provide terms and pricing that meet long-term
financing needs of the property, while balancing the benefits of the LIHTC
program. Discover Bank also provides funding to help developers offset costs
for project development, resident programs, and educational opportunities.

x DSHA Mortgage-Backed Security (“MBS”) Purchase – Discover Bank and

Delaware State Housing Authority (“DSHA”) developed the “forward” MBS
purchase commitment agreement whereby Discover Bank provides DSHA
with the liquidity and funding to (a) reduce interest rates and (b) provide down
payment and settlement assistance funds to LMI individuals seeking to
purchase or refinance a home loan. Under this agreement, Discover Bank
makes a pre-defined commitment to purchase DSHA’s MBSs at a fixed price
above market pricing, a premium of 100 basis points, and LMI borrowers
benefit directly from the premium pricing. DSHA is Delaware’s housing
finance agency, and its mission is to provide affordable housing opportunities
and supportive services to LMI individuals.

x Discover Economic Development Investment Fund – In 2018, Discover

Bank created the Discover Economic Development Investment Fund (the
“Development Fund”). The Development Fund is a bank-owned NMTC fund.
The Development Fund is a federal program incentivizing economic

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 development in LMI communities through a federal tax credit. Discover
Bank’s CRA team works with for-profit and non-profit partners to identify
projects in need of tax credit equity within Discover Bank’s assessment area
and broader area. The FDIC found that Development Fund’s projects (a)
helped revitalize local communities, spur economic development and job
growth, and (b) provided vital services to LMI individuals and geographies.
In addition to funding through the Development Fund, Discover Bank’s CRA
team worked with various non-profit organizations to inform them about the
NMTC program and the benefits it could provide.

x National Development Council (“NDC”) SBA 7(a) Program – In 2014,

Discover Bank partnered with the NDC’s Grow America Fund and leveraged
the City of Wilmington’s Urban Development Action Grant Corporation’s
portfolio of loans to launch a Grow Wilmington SBA 7(a) Loan Fund (the
“SBA Loan Fund”). The SBA Loan Fund uses this economic development
tool for the City of Wilmington to attract new small businesses and maintain
existing small businesses. The SBA 7(a) program offers below-market fixed
interest rates and longer amortizations through the leveraging of the federal
guarantee that comes with a SBA 7(a) guaranteed portion of a loan. In 2014,
Discover Bank provided a $3.0 million warehouse loan to help launch the
program and in 2019, Discover Bank provided $8.3 million. In 2021,
Discover Bank continued to increase the SBA 7(a) loan fund by $10.6 million
to provide small businesses with a total of $14.1 million in funding capacity.
To date, the SBA 7(a) loan fund has assisted 17 small businesses and helped
to create 334 jobs statewide. Furthermore, the CRA team secured an
additional $1.0 million commitment from an economic development
corporation, which increases the overall fund size.

x National Development Council (“NDC”) Delaware Technology Park

FinTech Building – NDC is a CDFI that provides capital to support (a) the
development and preservation of affordable housing, (b) the creation of jobs
through training and small business lending, and (c) the advancement of
communities through investment in social infrastructure in economically
disadvantaged urban and rural neighborhoods. In 2020, Discover Bank
provided the capital resources at a below-market interest rate needed for the
NDC Community Impact Loan Fund (“CILF”) to provide the funding for the
construction and permanent financing of the FinTech Building. The building
is to be a center of excellence for the digital sciences, FinTech, and data
management. Discover Bank invested time identifying and recruiting partners
focused on these areas, and organizations developing products and services
for LMI communities and small businesses to occupy the space. Discover
Bank identified a non-profit, which seeks to unite business leaders, policy
makers, and innovators to design and implement solutions that improve
financial health for all people, including LMI individuals. Discover Bank also
engaged a non-profit, supported by the Independent Community Bankers
Association, with a mission to help accelerate the trajectory of FinTech
companies and promote corporate innovation. Given the economic

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 development impact the projects are expected to have in Delaware, Discover
Bank agreed to purchase 100% participation in the NDC CILF CDFI’s direct
loan and NMTC leveraged loans, totaling $34.4 million. The NMTC
allocation will facilitate up to 5,000 square feet of space in the FinTech
Building dedicated to the delivery of technology solutions to meet the
financial service needs of LMI consumers and small businesses for five years
at no cost to the tenants.

(b) Strategic Plan Goal 2: Ratio of CD Loans and Qualified Investments to

Average Assets – Discover Bank achieved at least a 0.60% ratio of CD loans and
qualified investments to average assets in 2020 and 2021; this activity met the
respective annual goals for outstanding performance.

(c) Strategic Plan Goal 3: CD Grants – Discover Bank provided 130 CD grants
and in-kind contributions totaling $8.4 million, including $4.1 million in 2020 and
$4.3 million in 2021; this activity met the respective annual goals for outstanding
performance.

Discover Bank also provided grants and in-kind contributions to various

organizations, financial institutions, and governments to help meet the credit
needs of LMI persons and small businesses within the AA and Discover Bank’s
Broader Area. Qualified grants focused on issues relating to affordable housing,
small business and economic development, financial literacy, and Covid-19
response and recovery. Notable examples of qualified grants provided during the
evaluation period include:

x Discover Bank provided an organization serving LMI individuals with a

$100,000 grant for the renovation of a vacant home in the Quaker Hill
Community. The property will provide long-term housing assistance to
people who meet the Department of Housing and Urban Development’s
definition of “chronically homeless.” These individuals have at least one
member of the household with a disability that affects their housing stability.
Residents will face no minimum income requirement, pay no more than 30%
of their income for housing, and receive supportive services.

x Discover Bank provided the Delaware Community Reinvestment Action

Council a grant of $250,000 to support technology improvements at Stepping
Stones Community Federal Credit Union (“SSCFCU”). The credit union
serves low-income communities in Wilmington, DE and provides services at
no cost. The grant will enable the credit union to offer a debit card and a
social banking app to its members. Furthermore, Discover Bank facilitated a
relationship between SSCFCU and a minority- and women-owned FinTech
company, Wellthi Technologies, Inc., to provide technology for the debit card
product.

x Discover Bank provided the Community Legal Aid Society with a $25,000
grant to increase the capacity to provide eviction defense counsel for low-

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 income renters. These free services include legal defense and connecting
clients to resources available from the DSHA (for example, the DEHAP to
pay delinquent rent). Additionally, the organization counseled those facing
eviction due to the Covid-19 pandemic.

x Discover Bank afforded LMI households access to technology and remote

services through partnerships with NERDiT NOW and public libraries. In
2020, Discover Bank provided the NERDiT Foundation with a $75,000 grant
to purchase and deploy computers for non-profits that had to transition staff to
a work-from-home environment at the start of the Covid-19 pandemic. In
2021, Discover Bank provided the Seaford Library, in partnership with the
Laurel and Frankford Libraries in Sussex County, with a $25,000 grant for
technology upgrades and support for residents of LMI communities.

x Discover Bank provided several grants to support individuals and families

impacted by the Covid-19 pandemic.

x Discover Bank provided two organizations with crowd-funding technology

platforms to solicit donations for non-profits and small businesses.

x Discover Bank provided Children & Families First with a $25,000 grant to
pilot the Community of Hope Program. The program aims to stabilize
families, with an overarching goal to reduce child abuse, neglect, and referral
into the child welfare system. Employing another place-based strategy,
Discover Bank provided REACH Riverside with a $25,000 grant in support of
the Poverty to Prosperity Initiative. REACH’s areas of focus for the Riverside
neighborhood include redevelopment, education, and community health. The
program supports REACH housing residents in Wilmington, DE by offering
tools to increase economic independence, reducing neighborhood
unemployment and poverty, and providing opportunities for families to move
to new housing in the community. Additionally, the initiative will increase
retention of Riverside residents in the new development, improve community
health, and create a mixed-income community.

x During the evaluation period, Discover Bank provided approximately

$345,000 in corporate grants to organizations and programs serving LMI
people and communities.

During the evaluation period, Discover Bank also provided approximately

$265,000 of in-kind contributions to area non-profits providing services to LMI
individuals, including the following:

Ɣ In 2020, Discover Bank provided schools, homeless shelters, and libraries

with donations of unused marketing space, printing services, Google
Chromebooks, baby supplies, and kitchen items.

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 Ɣ In 2021, Discover Bank assisted with the Covid-19 response by donating
cleaning and disinfecting supplies to Delaware non-profits serving LMI
individuals.
Ɣ Following downsizing the call center in New Castle, Delaware in 2021,
Discover Bank donated office furniture and equipment to local non-profit
organizations.

(d) Strategic Plan Goal 4: CD Services – Discover Bank created a point system to
track CD services provided by personnel within the AA and Discover Bank’s
broader area. Discover Bank achieved 292 points, including 145 points in 2020
and 147 points in 2021, which exceeded the respective annual goal of 140 for
outstanding performance.

The primary purpose of services performed must meet the definition of CD and
use the financial expertise or technical assistance of the employee who provided
the service. Categories of service included: (i) technical assistance and intensive
or long-term service; (ii) board membership; (iii) committee membership; and (iv)
CD services.

(e) Strategic Plan Goal 5: Consumer Loans in Moderate-Income Census Tracts

in the Assessment Area – Discover Bank extended $5.8 million in consumer
credit to individuals who resided in moderate-income census tracts within
Discover Bank’s AA, including nearly $2.8 million in 2020 and $3.0 million in
2021. Discover Bank’s performance in 2020 substantially met the goal for
outstanding performance and exceeded the goal for outstanding performance in
2021.

The CRA requires that the FDIC consider an institution’s compliance with laws and
regulations prohibiting discrimination on a prohibited basis and other illegal credit practices
when evaluating CRA performance and assigning a CRA rating. The CFPB executed a Consent
Order against Discover Bank in 2015 due to alleged deficiencies regarding Discover Bank’s
student loan servicing practices. Due to alleged ongoing deficiencies in Discover Bank’s student
loan servicing practices, the CFPB executed a new Consent Order in December 2020.

The FDIC considered the ongoing deficiencies within Discover Bank’s student loan
servicing operation when assigning the overall CRA rating. Accordingly, although Discover
Bank met or exceeded its goals for “Outstanding” performance in 2020 and 2021, the agency
lowered the assigned rating to “Satisfactory” in recognition of the ongoing student loan servicing
deficiencies.

C. CONA/COBNA’s and Discover Bank’s CRA Activity Since Their Last CRA
Evaluations

Commitment to the communities where CONA employees live and work has always been
embedded in the culture of CONA. Since the CONA CRA Evaluation, CONA has remained
actively engaged with the communities within its AAs. CONA’s commitment to the

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communities within its AAs is evidenced in the lines of businesses’ performance and their efforts
to further strengthen their CRA impact in the communities it serves.

1. CONA/COBNA’s CRA Activity Since Their Last CRA Evaluations

As discussed above, the evaluation periods for the CONA CRA Evaluation and for the
COBNA CRA Evaluation each concluded on December 31, 2019. Since the end of its
evaluation period, CONA has demonstrated very strong CRA performance and significant
positive impacts on its communities. Similarly, COBNA also demonstrated very strong CRA
performance and significant positive impacts on its communities in the period from January 1,
2020 until it merged into CONA on October 1, 2022.

Small Business Lending

CONA understands the important role that small businesses play in the U.S. economy as
well as to individual communities. As a result, CONA strives to ensure that the bank is a
provider of small business banking products and services across all the markets and communities
it serves. CONA also offers small farm loans, although this is not a major product of the bank.

As discussed in the Convenience and Needs of the Communities section above, CONA
offers term loans, lines of credit, and credit cards to small businesses. In addition to traditional
financing, CONA offers loans guaranteed by the SBA. The bank provides financing through the
SBA 504, SBA 7(a), and SBA Express programs, which collectively offer long terms, fixed
rates, and lower equity requirements.

CONA’s suite of credit card products accommodates small business owners across the
credit spectrum, from those with fair credit to those with excellent credit. Several products have
no annual fee. In addition, there are various options relating to cash rewards and travel miles.

During the Covid-19 pandemic, CONA prioritized resources in small business lending to
participate in the SBA’s Paycheck Protection Program (“PPP”), designed to help businesses keep
their workforces employed. CONA mobilized associates across the company to create a digital
PPP process for handling customer applications. This was an exceptionally complex and
demanding, multi-week, 24/7 effort undertaken by almost 3,000 bank associates, many of whom
were not part of the small business banking team. CONA originated 21,489 PPP loans totaling
$1.1 billion in the bank’s AAs. The bank’s efforts targeted those businesses most in need, as
companies with 20 or fewer employees comprised 93% of CONA’s PPP loans. Similarly, 86%
of the PPP loans were for $100,000 or less. In fact, CONA ranked #1 in PPP customer
satisfaction in two (Northeast and South) of the four regions in the 2020 JD Power Small
Business Banking Satisfaction Study.54

CONA also took action to help existing small business customers during the pandemic,
including:

54
See J.D. Power, Press Release, Banks’ Response to Paycheck Protection Program Helps Drive Small Business
Customer Satisfaction to Record High during Pandemic, J.D. Power Finds (Oct. 29, 2020),
https://www.jdpower.com/business/press-releases/2020-us-small-business-banking-satisfaction-study.

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 x Deferring payments on 1,852 loans for a total of 5,957 payments, totaling $21.2
million. In addition, over 700 of CONA’s small business loans received six-month
loan forgiveness from the SBA (through the SBA Cares Act), totaling more than $22
million.

x For credit card customers, providing 64,000 payment deferrals for a total of $81.9
million. In addition, CONA reduced the APR to 9.99% on 662 credit card accounts
for nine months, for customers who were 60+ days past due and impacted by the
pandemic.

Below is a table outlining CONA/COBNA’s small business and small farm lending
within their respective AAs in 2020, 2021, 2022 and 2023, by number and dollar amount. Of the
752,476 loans originated during the four years, 28% were to businesses in LMI census tracts. In
addition, 98% of the loans were for $100,000 or less, a strong indicator of Capital One’s
willingness and ability to lend to the smallest businesses.

CONA/COBNA Combined (Dollar Amounts in Thousands)

2020 2021
$ # $ #
Total Loans 2,300,018 126,907 2,723,087 193,964
Loans in LMI Census Tracts 494,179 34,601 616,169 54,097
Loans of $100,000 or Less 1,303,055 123,614 1,727,540 190,463
PPP Loans 767,821 13,549 371,946 7,940
In LMI Tracts 164,772 2,950 70,749 1,799
$100,000 or Less 300,492 11,698 167,328 7,096

CONA/COBNA Combined* (Dollar Amounts in Thousands)

2022 2023
$ # $ #
Total Loans 3,925,066 239,715 3,255,822 191,890
Loans in LMI Census Tracts 968,628 66,308 804,418 54,739
Loans of $100,000 or Less 2,554,664 234,871 1,906,549 186,926
PPP Loans
In LMI Tracts
$100,000 or Less

* COBNA merged with and into CONA on October 1, 2022. Accordingly, after that date the data reflects CONA
alone.

Residential Mortgage Lending

As discussed above, in November 2017, due to the highly competitive marketplace and
challenging rate environment, CONA made the business decision to cease new originations of

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residential mortgage and home equity loan products within the consumer banking business and,
since that time, almost all of CONA’s HMDA-reportable originations have been multifamily
loans.

The table below summarizes CONA’s residential mortgage lending in its AA since
December 31, 2019. The loans originated during 2020, 2021, and 2022 were reported in
CONA’s HMDA data. In 2023, CONA did not submit a HMDA loan application register since it
did not meet the HMDA reporting threshold for 2023.

CONA
2020 2021
Total # Total $ (in Total # Total $ (in thousands)
thousands)
Total Loans 353 6,416,155 258 5,327,195
Loans in LMI
170 2,759,520 149 2,207,484
Census Tracts

CONA
2022 2023
Total # Total $ (in Total # Total $ (in thousands)
thousands)
Total Loans 202 4,356,203 N/A N/A
Loans in LMI
94 1,339,995 N/A N/A
Census Tracts

* COBNA merged with and into CONA on October 1, 2022. Accordingly, after that date the data
reflects CONA alone.

Community Development Activities

CONA is dedicated to providing support to economically disadvantaged communities

within its footprint through making qualified CD loans and investments. In fact, CONA has
been a national leader in CD lending for many years. For five consecutive years (2016 through
2020), the Bank had a higher dollar volume of CD loans than any other reporting lender in the
country. In 2021 and 2022, CONA was second only to the largest bank in the country based on
assets. This is significant considering CONA’s size and capacity in relation to other, much
larger peer banks. (Peer CD lending data for 2023 is not yet available.)

Since the CONA CRA Evaluation and the COBNA CRA Evaluation, CONA and
COBNA combined have made 2,052 CD loans totaling over $30 billion when PPP loans are
excluded. CONA and COBNA combined also made 471 CRA-qualified investments (excluding
grants), totaling $4.1 billion. See the table below for a summary of the total dollar amounts of
CONA and COBNA’s CRA qualifying CD loans, investments and grants in 2020, 2021, 2022
and 2023. These sources of CD funding amount to $34.7 billion, approximately two-thirds of
which was provided in CONA’s AAs. The loans, investments, and grants made outside CONA’s

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AAs were allocated either to COBNA or, following the CONA-COBNA merger, to broader
statewide or regional areas supporting CONA rating areas.

CONA/COBNA Combined ($ amounts)

2020 2021
CD Lending (Excludes PPP Loans) 9,010,602,250 9,251,152,146
CD Investments 822,868,982 1,059,514,891
CD Grants 46,940,760 42,209,763

CONA/COBNA Combined* ($ amounts)

2022 2023
CD Lending (Excludes PPP Loans) 7,274,390,732 4,869,920,884
CD Investments 899,069,597 1,293,229,608
CD Grants 37,192,412 43,431,510

* COBNA merged with and into CONA on October 1, 2022. Accordingly, after that date the
data reflects CONA alone.

During the 2020-2023 time period, CONA and COBNA provided large volumes of CD
loans and investments that were highly responsive to the needs of their communities. Most of
these transactions were complex, and many reflected leadership and/or innovation on the bank’s
part. Examples of these transactions follow. Some of the geographies (e.g., Michigan) are rating
areas added since the CONA CRA Evaluation of August 24, 2020.

Examples of CONA’s leadership in CD loans and investments from 2020-2023 include

the following:

x Provided more than $58 million in financing, including a loan of $32.9 million and a
LIHTC equity investment of $25.2 million, to help finance the new construction of a
105-unit senior affordable housing development in the Bronx. A majority of units
(104 out of 105) will be restricted to LMI seniors earning up to 50% and 60% of AMI
(18 and 86 units, respectively) and supported by project-based Section 8 vouchers;
there will be one manager’s unit. Thirty-two units will be set aside for formerly
homeless seniors and supported by New York City project-based rental assistance. In
addition to providing financing for the property’s construction, CONA also
contributed a $150,000 grant to fund resident services. The nonprofit developer,
which has a longstanding history of serving LMI seniors, will provide services to
residents including, but not limited to, case management, services coordination, crisis
intervention, counseling, and nutritional services. In addition to funding from
CONA, this complex project involved significant public financing, including over
$20 million from city and state-wide entities, such as New York City’s Department of
Housing Preservation and Development and New York State’s Homeless Housing
and Assistance Program. This development provides much-needed affordable

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 housing coupled with supportive services for LMI seniors, including the formerly
homeless, in a market with a very high cost of living.

x In 2021, CONA provided two loans totaling $17 million to the New York chapter of a
national nonprofit organization that offers social services to LMI individuals. For
example, it provides assistance for the homeless, families recovering from domestic
violence, veterans, the elderly, at-risk youth, and those with intellectual and/or
developmental disabilities. One of the loans, a $7 million line of credit, provided
working capital and bridged the receipt of government receivables benefiting LMI
populations in the AA. The other loan, for $10 million, was PPP financing to help
stabilize the organization during the Covid-19 pandemic. In 2023, CONA increased
the line of credit from $7 million to $10 million. In addition, in 2022 and 2023, the
bank provided $20,000 in grants to support a financial education program and the
organization’s general operations. CONA’s efforts are part of a longstanding
partnership between the bank and the organization.

x Provided a loan of $10 million and invested $10.6 million in LIHTC equity to finance
the rehabilitation of a 201-unit affordable housing development in Montgomery
County, Pennsylvania. All 199 units for rent are reserved for LMI seniors (62+) and
benefit from development-based Section 8 contracts. (There are also two manager
units.) The development targets very low income and LMI seniors, with 10 units
restricted to 20% AMI; 90 units restricted to 50% AMI; and 99 units restricted to
60% AMI. The nonprofit developer provides supportive services that enable
residents to age in-place, such as counseling, education, and in-home services; and to
maintain health through screenings, fitness programs, and assistance in accessing
health services. Residents also benefit from close proximity to public transportation
and neighborhood amenities such as shopping centers. The development involved
numerous sources of financing, including private activity bonds from the
Pennsylvania Housing Finance Agency and solar tax credits to fund enhancements
that will create energy efficiencies and reduce residents’ utility costs. This complex
development addresses rising housing-cost burdens facing seniors in a market where
the demand for affordable senior housing is expected to grow over the next five years.

x Provided a loan of $12 million and LIHTC equity investments totaling $46.8 million
to help finance the rehabilitation of a 300-unit senior affordable housing development
in Northeast Washington, DC. All units are restricted to LMI households earning up
to 30%, 60% and 80% of AMI (88, 155 and 57 units, respectively). Over one-third of
the units (103 out of 300) will be supported by project-based rental subsidies. A
nonprofit organization will provide resident services for all tenants, focusing on
childhood and youth development, health and wellness, economic mobility and
stability, and aging in community. When faced with a substantial funding shortfall
during construction, CONA stepped in to provide additional financing that balanced
the budget, demonstrating the bank’s leadership and commitment to the
development’s success. This development preserves 300 units of affordable housing
for tenants who would otherwise be at risk of displacement, given that the original
LIHTC compliance period and housing subsidy contract term expired and the
property is considered prime real estate in a high-cost market with significant market-

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 rate development activity. A large percentage of renter households spend more than
30% of their incomes on housing expenses (i.e., 41.9%) in Washington, DC, further
demonstrating the critical need for affordable housing preservation in this area.

x Provided NMTC financing in the amount of $11.8 million for the construction of a
hospice facility in Baltimore to replace an existing hospice facility that operated out
of several structures that were over 130 years old. The facility primarily serves LMI
patients. Other financing was provided by a minority-controlled depository
institution that was the first financial institution to receive both CDE and CDFI
certifications. The new facility better serves the unique needs of seriously ill
residents of Baltimore City, which has a large LMI population. It is located in a
community that was developed by a local nonprofit agency that currently serves over
500 adults aged 62 and older and addresses poverty, homelessness, hunger, and
affordable housing. This addition to the community provides a continuum of care for
the aging population in one location, and meets the growing need for hospice care in
Baltimore as identified by the Maryland Health Care Commission.

x Provided loans totaling $6.5 million to three small businesses through the SBA 7(a)
Loan Program. This program is designed to help small businesses that are
creditworthy but cannot qualify for a conventional loan. These three businesses, all
located in Phoenix, are a landscaping service, a manufacturer of animal collars and
hospital identification bracelets, and a machine shop. This financing addresses
economic development needs by supporting jobs and helping bring revenue to the
community.

x Provided more than $80 million, including a $42.3 million loan and $38.2 million in
LIHTC equity, for the construction of an 81-unit, mixed use, affordable and special
needs housing development in San Jose. The development will include studio, one-,
two-, and three-bedroom units at up to 30%, 50%, and 60% of AMI. Of the 81 units,
40 will be reserved for transitional aged youth, ages 14-29 (20 for formerly
chronically homeless and 20 for currently homeless or at risk of homelessness).
Sixty-one of the units will be subsidized. The local housing authority will provide
project-based Section 8 vouchers for 21 of the units reserved for families up to 50%
of AMI and 20 of the units for Transitional Aged Youth. The remaining 20
Transitional Aged Youth units will be subsidized through Santa Clara County’s Rapid
Rehousing program. The ground floor of the development will house a youth
community center operated by the county, offering a computer room and free clothes,
backpacks and hygiene products, medical services, mental health support and
counseling, and parenting, educational, and employment resources and legal services.
The residential portion will feature a full-time Service Coordinator and intensive case
management supportive services. Residents will have access to educational
programming, peer support activities, mental health care, substance use services,
benefits counseling and advocacy, recreational and social activities, education classes,
employment services, and referrals to third party service providers. Additionally, the
construction is expected to receive a LEED Silver rating, and is GreenPoint Platinum
Rated, built to sustainable and efficient environmental standards. This complex
transaction included significant public finance support totaling more than $35.7

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 million, including a $15.7 million City of San Jose loan, a $20 million County of
Santa Clara loan, and another $12.6 million in soft funding from the county for the
youth community center. This development provides quality affordable housing for a
particularly vulnerable population, as estimates suggest that nearly 30% of the
nation’s entire homeless youth population is located in California.

x In 2020, CONA provided a $500,000 working capital line of credit to a local CDFI
whose mission is to provide flexible, affordable, and responsible financing and
technical assistance for community stabilization and development initiatives that
benefit LMI communities in metropolitan Chicago. The organization was created to
ensure that Chicagoland CD organizations (including small and emerging
organizations) would have a lender to turn to for difficult-to-underwrite developments
and enterprises. The CDFI carries out its mission through three key programs that
provide (1) small for-profit and nonprofit developers with the support and capital
needed to acquire, rehabilitate and own 1-4 unit buildings to help stabilize low-wealth
communities impacted by foreclosures; (2) technical assistance and loans for
commercial development in LMI communities; and (3) fixed-rate loans for
organizations engaged in community-based social service, housing, or economic
development. In addition, CONA provided $45,000 in grants to support the
organization’s general operations, technical assistance for small businesses, and
assistance for households seeking to purchase or maintain affordable housing in LMI
neighborhoods. In 2023, CONA renewed and increased the credit line to $1.5
million. The bank’s financing illustrates its willingness to originate small loans for
CD purposes and addresses the need to support CDFIs with funding for general and
specific CD purposes.

x Provided two loans totaling $17.4 million and two LIHTC equity investments totaling
$20.9 million to help finance the new construction of a 110-unit mixed-income
housing development in downtown Lake Charles, Louisiana. A majority of units (89
out of 110) will be restricted to LMI households earning up to 20%, 30%, 50%, 60%,
and 80% of AMI (4, 10, 33, 34 and 8 units, respectively); there will be 21 market-rate
units, which will be marketed to households earning up to 75% of AMI. Ten units
will be subsidized, including six units supported by project-based voucher HUD
Section 8 contracts and four units supported by HUD Section 811 Rental Assistance
contracts; six of the 10 subsidized units will be set aside as permanent supportive
housing units. A nonprofit organization will provide services to residents including,
but not limited to, daycare and afterschool programs; financial and budgeting
seminars; job training and continued education; preventive healthcare programs; and
coordination with local veterans service providers. In addition to funding from
CONA, this highly complex financing structure involved numerous public sources
including the federal Community Development Block Grant (CDBG) Disaster
Recovery Program, the state of Louisiana’s energy tax credit program, and the City of
Lake Charles. The property also received funds from a CDFI loan fund. This
development will be constructed to meet disaster-resiliency standards to withstand
severe weather such as hurricanes. It will provide much-needed affordable housing
for LMI households, including very low-income households earning up to 20% and

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 30% of AMI, in a region that has experienced several natural disasters in recent years,
persistently high poverty rates, and an acute shortage of quality affordable housing.

x In 2022, CONA provided NMTC financing in the amount of $15.6 million for the
expansion of a university medical center’s emergency department in Cincinnati. The
hospital’s mission is to provide care for the aged, indigent, and orphaned, and it
serves as a first-line resource for the community. The financing will facilitate the
addition of 46,000 square feet of new emergency department space, the renovation of
the existing 30,000 square-foot space, and the creation of an ICU and an observation
unit. Prior to the expansion, the emergency department had been operating at an
unsafe patient capacity on at least two days of each week, for the last 10 years. The
physical expansion will improve patient care and accommodate patient surges. The
project is expected to retain 131 existing full-time employees, create an additional 42
full-time roles, and create 150 full-time construction jobs. Jobs created and
maintained will have above-average wages and benefits for hourly employees. Due
to the pandemic, the medical center experienced an increase in operating expenses to
protect staff, and a decrease in revenues due to elective procedures being temporarily
shut down. This caused a strain on its capitalization strategy for the development,
making NMTC allocations critical in moving the development forward without
deferring elements of expansion or impacting patient programs. This complex
financing addressed the need for expanded healthcare for LMI families, the creation
and retention of living-wage jobs, and pandemic-related assistance for a critical
community facility. In 2023, CONA provided another $10 million in NMTC
financing to expand the medical center’s intensive care unit. This second transaction
demonstrates CONA’s ongoing commitment to addressing community needs.

x Provided a construction loan in the amount of $12.1 million and an investment of

$14.9 million in LIHTC equity for the new construction of a 56-unit affordable
housing development for LMI households earning 30-60% of AMI. Of the 55 rental
units (there is also a manager’s unit), 20 give preference to Tribal Member
households and have rent subsidies such that rent does not exceed 30% of household
income. Ten units have three bedrooms, making this development suitable for larger
families. The co-developer, a Portland nonprofit organization that serves Native
Americans, provides on-site resident services to include life and wellness, career, and
technical assistance services such as financial wellness classes, business development
coaching and classes, home ownership and workforce development training, after-
school and summer programs, and community engagement for all residents. This
transaction was exceptionally complex with many layers of financing from state, local
and municipal sources. These sources included, for example, an Indian Housing
Block Grant (IHBG), a grant from the Oregon Housing and Community Services
Department’s Multifamily Energy Program for developments that provide
weatherization and energy conservation services, and a Portland Metro Transit-
Oriented Development grant to stimulate private development of high-density,
affordable, and mixed-use developments near public transit. The development is
located approximately 500 feet from the Tri-Met bus line. In addition, the transaction
was innovative as it was only the second in the country to combine IHBG and LIHTC
funding in the same development. This transaction meets many identified community

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 needs including affordable housing targeted to the Native American population, use
of green building techniques, transit-oriented developments, and social services that
include self- sufficiency training for LMI people.

x Provided $18.7 million in NMTC financing for the construction of a new facility to
support victims of domestic abuse in Dallas. CONA also provided $60,000 in grants
to support the center’s general operating expenses. The center is operated by an
organization that offers the most comprehensive domestic violence recovery program
in Dallas, including an emergency shelter; transitional housing; on-site schooling,
daycare, and afterschool programming; mental health counseling; and legal support.
This full continuum of care for women and children who are escaping domestic
violence is provided at no cost to its clients. The new center increased the
organization's overall capacity by 40% and legal service provision by 100%, assists
children traumatized by domestic violence, and provides education opportunities for
advocates and therapists. The new center was estimated to create 40 or more new
jobs and will retain 30 or more current jobs. This financing addresses the critical
community credit need of providing crisis intervention and long-term solutions for
women and children who are survivors of domestic violence. It helps to prevent
homelessness by offering an alternative to those needing to escape abusive
surroundings.

x Provided a loan of $41.6 million to a public school district in Mississippi to finance

capital improvements at various schools in the district. Almost all (99.9%) of the
students in the district are from LMI families. This financing was especially
important due to the district’s declining enrollment and, consequently, declining
support from the state. The decreases in enrollment resulted from declining
population in the area (due at least partly to lower birth rates) and competition from
charter schools. This transaction illustrates CONA’s willingness to help address
critical needs in areas beyond its physical footprint.

For additional examples of CONA’s CD lending and investing activity for the period
from 2020-2023, please see Exhibit 24.

Capital One Philanthropy

Capital One believes it has a unique responsibility to contribute to the economic well-
being of the communities in which it does business. It invests in its communities by providing
resources that support economic opportunity for residents and local businesses. By focusing on
philanthropic grants, specialized CD services and associate volunteerism on education, financial
literacy, affordable housing and small business/workforce development, Capital One helps make
communities dynamic places where families can live, work, grow and realize their dreams.

During the period 2020 through 2023, Capital One distributed 8,404 grants to non-profit
organizations totaling $370 million. Approximately half of these funds have been CRA-
qualified, serving primarily LMI populations. Capital One also shared the professional expertise
of its associates with these same community partners. CONA associates delivered more than
208,500 hours of volunteer service in 2020-2023 to further community impact. Approximately

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61% of these hours were CRA-qualified (i.e., CD services). Investing time, money and
intellectual capital into each community partnership demonstrates Capital One’s commitment to
sustainable change.

The Covid-19 pandemic had a very significant impact on Capital One’s ability to deliver
in-person services. However, the bank worked with its partners to establish virtual capabilities
so that it could continue delivering valuable CD services to partners and their clients during the
pandemic.

Many of CONA’s volunteer activities involve pro bono services contributed by CONA
associates. This type of volunteerism is particularly valuable to CD organizations and small
businesses because it gives them access to specialized talent, high-impact skills, and industry
insight and innovations. CONA provides services from a variety of practice areas, including
Brand, Communications, Cybersecurity, Data, Design, Finance, Human Resources, Legal,
Product, and Technology.

Capital One is honored to have been recognized for the 11th consecutive year as one of
America’s most community-minded companies in the Points of Light Civic 50.55 The following
are a few examples of the company’s philanthropic programs, focus areas and grants:

x CONA associates provided 401 total hours of CD service to a New York nonprofit
organization whose mission is to close the opportunity divide by ensuring that LMI
young adults gain the skills, experiences, and support that will empower them to
reach their potential in higher education and their careers. Classroom training in
technical courses, and soft-skills training such as time management and networking,
equip students with the attitudes, behaviors, and versatility needed to excel in the 21st
century economy. Students then enter an internship with a corporate partner in order
to put their classroom training into practice. The volunteer service hours, most of
which were pro bono services provided by associates from the bank’s human
resources and technology areas, trained program participants on resume writing and
interviewing skills. CONA also provided the organization with $65,000 in grants.
The bank’s efforts served the critical community needs of workforce development
and increasing self-sufficiency for the LMI population.

x Provided a grant of $125,000 to support the programs of the Philadelphia chapter of

an organization that works to increase economic opportunities for formerly
incarcerated people, in order to improve their lives and help them remain in their
communities. The organization provides low-interest loans and financial coaching to
formerly incarcerated people, helping them build credit and achieve their self-
determined goals. CONA’s funding helps address a critical need, as people who have
been incarcerated often face permanent barriers to securing transportation, housing,
employment, and capital for building a business. When individuals are released from

55
The Civic 50 is an annual initiative organized by Points of Light that recognizes the 50 most community-minded
companies in the United States. The Civic 50 winners are public and private companies with U.S. operations and
revenues of $1 billion or more and are selected based on four dimensions of their U.S. community engagement
program—investment, integration, institutionalization, and impact. For more information, see
https://ww2.pointsoflight.org/civic50/https://www.pointsoflight.org/the-civic-50/.

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 jail or prison, they are further burdened by court-ordered debt. Most are ineligible for
traditional bank financing or are subject to prohibitively high interest rates. These
combined hurdles limit the economic opportunity of formerly incarcerated people and
prevent them from reaching their potential. As a result, some return to criminal
behavior, increasing the likelihood of reincarceration and damaging the stability of
their families and communities.

x CONA technology associates provided 242 hours of pro bono service to benefit a
Phoenix nonprofit financial counseling agency that helps people transform their
financial situation with one-on-one guidance to pay off debts, regain financial
independence, and save for the future. Most of the organization’s clients are LMI.
An industry pioneer and leader, it has supported consumers in financial distress since
1987. Bank associates helped develop technology applications for the organization.

x In 2023, CONA provided a $50,000 grant to a CDFI that makes small business loans
ranging from $5,000 to $100,000 to financially marginalized entrepreneurs. The
CDFI’s loans offer affordable rates and include a restorative approach, which
includes modifications on a case-by-case basis if the business runs into challenges.
The organization also offers business consulting and training. CONA’s 2023 funding
supports small businesses in Oakland. Previously, during the period 2020 through
2022, the bank provided $60,000 in grants to support the CDFI’s programs, including
pandemic response, in San Francisco and Oakland.

x Provided a total of $115,000 in grants to a CDC with a mission to provide a

comprehensive array of social welfare and CD services to assist LMI individuals and
other persons in need, and to contribute to community revitalization and cultural
preservation in the Little Tokyo neighborhood in Los Angeles. Grants totaling
$80,000 provided funding for a resident services support program, which provides
bilingual case management, employment preparedness, childcare referrals and
financial wellness programs to empower people to achieve greater self-sufficiency.
In addition to these services, the program assists clients with their deferred rent and
connects them to landlords to establish payment plans. The provision of these
services is intended to reduce the number of evictions and allow more families to
maintain their housing. The remaining $35,000 of CONA’s grant funds supported a
small business program and pandemic emergency relief.

x Provided $300,000 in grants to a nonprofit health system that serves Louisiana. A

majority of the grant funds support the organization’s workforce development
program to close the nursing shortage in Louisiana by creating more opportunities for
aspiring nurses of all backgrounds. The organization partners with colleges,
universities, and high schools around the state to identify nursing candidates. This
innovative program, the only of its kind in the state, is a free, four-year dual
enrollment program that provides students from various parishes the opportunity to
earn college requirements for Licensed Practical Nurse (LPN) programs. The
program launched in 2023 with a cohort of 20 students. Trainees complete
coursework and clinical requirements equivalent to other state-approved LPN
programs. In addition to the intensive healthcare and medical coursework, trainees

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 complete “impact training” provided by the health system, which includes workplace
ethics training, communications, and problem-solving strategies. In addition to
supporting the LPN program, CONA helped fund a program that trains both
incumbent workers and job seekers from non-traditional or under-skilled entry level
career pathways for roles in the healthcare industry. In addition, CONA associates
provided financial education training for the organization.

x Provided $150,000 to a Detroit microloan fund to support underserved entrepreneurs

who cannot qualify for a CDFI loan or mainstream financing sources. The mission of
the fund is to provide access to capital to historically underserved populations and/or
populations located in LMI neighborhoods in Detroit, Hamtramck, and Highland Park
who have been excluded from traditional and alternative capital sources. The fund’s
mission includes small business education, building credit scores, and encouraging
financial stability that will help aspiring entrepreneurs to transition to mainstream
banking. The fund provides access to capital to small businesses in the form of loans
ranging from $5,000 to $50,000. It also offers pre-loan technical assistance for
aspiring entrepreneurs that includes but is not limited to business plan development,
the pre-loan application process, understanding financial statements and the need for
projections, and financial education to existing and emerging underserved
entrepreneurs. CONA’s funds have supported counseling, financial education and
training services for small businesses.

x Provided a $200,000 grant to a Houston organization whose mission is to unlock

opportunity by connecting families in underserved communities to affordable internet
service and computers, and delivering digital skills training. The bank’s grant
supports a digital skills training program designed to engage LMI adults, including
those 65 and older. CONA’s efforts address the critical need to close the digital
divide.

x From 2020 through 2023, CONA provided $2.9 million in grants and 580 pro bono
service hours to improve college access for LMI students nationally. This multi-year
effort started during the Covid-19 pandemic, which exacerbated the phenomenon of
“summer melt,” when high school graduates cancel their plans to attend college
before classes begin. A major barrier to improving college access, particularly for
LMI and first-generation students, involves a lack of information, in part due to
overloaded school counselors who juggle caseloads of nearly 500 students per
counselor, on average. Students’ lack of awareness about financial aid options and
the overall cost of college contributes to low completion rates of the Free Application
for Federal Student Aid (FAFSA) form and billions of dollars in federal student aid
left on the table each year. Capital One responded to this critical need by investing in
a free virtual assistant powered by artificial intelligence that served approximately
773,000 LMI and first-generation students across the country from 2020 through
2022. Capital One associates also volunteered 580 pro bono hours to help optimize
the virtual assistant’s technology. Early results demonstrated the effectiveness of this
intervention, including an engagement rate (i.e., the percentage of students who sent
at least one message to the virtual assistant) of 62.7%, significantly higher than the
average of 15% for similar interventions; and 18,000 hours saved that traditionally

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 would have been spent consulting with a college advisor. Capital One, in partnership
with several community organizations, has continued the positive momentum
generated by the program’s promising early results by expanding the virtual assistant
and continuing to refine the technology to ensure equitable access to different groups
of students, including English language learners and students of color. These efforts
demonstrate CONA’s innovation in addressing the problem of college access at scale;
its responsiveness, in tailoring the technology to meet the needs of specific student
populations, with a focus on LMI and first-generation students; and its thought
leadership in the field of education and technology, in partnering with research
institutions to publish white papers and share the program’s learnings to further
expand its impact and improve its effectiveness.

x During the Covid-19 pandemic, CONA provided grants totaling $1,029,521 to a

nonprofit organization that feeds the hungry through a nationwide network of food
banks, pantries, and meal programs. The bank’s funding supported the organization’s
pandemic response efforts.

x And beyond CRA but a vital example of Capital One’s commitment to the
community, in 2021, CONA donated a historic building on the Wilmington
Riverfront valued at $4.7 million to Delaware State University, a Historically Black
College or University, to establish a new Downtown campus. Through the DSU
Foundation, and the Delaware State University's Office of Adult and Continuing
Education, CONA is funding 30 scholarships for DSU students to participate in
technology and credentialing certification programs designed to develop critical job
skills across various industry platforms to increase employability opportunities for
TTC customers. All students who complete the program are eligible for national
certifications.

Lastly, CONA’s physical network is complemented by its digital delivery systems, such
as online and mobile banking. CONA’s overall service delivery strategy has proven extremely
effective in attracting, serving, and retaining customers in LMI geographies.

Since the last evaluation period, from 2020 through 2023, customers in LMI areas opened
approximately 1,550,000 new checking accounts with no monthly fees, no minimum balance
requirements, and over 1,200,000 new savings accounts in CONA’s AAs. Additionally,
customers in LMI areas opened more than 435,000 new checking accounts in 2023 in CONA’s
AAs, which was more than 200,000 (or 89%) above the number opened during 2019. Similarly,
customers in LMI areas opened over 390,000 new savings accounts in 2023 in CONA’s AAs,
which was about 190,000 (or 93%) more than the number opened during 2019. This represents a
significant increase in the number of accounts held by customers in LMI areas and demonstrates
the effectiveness of CONA’s overall retail strategy in serving LMI populations through a
combination of branch, cafe and digital strategies with best-in-class products.

Furthermore, there were more than 1,960,000 open (i.e., retained) checking accounts,
with no monthly fees, no minimum balance requirements and no overdraft fees, owned by
customers in LMI areas in CONA’s AAs on December 31, 2023, which was more than 910,000
(or 87%) above the number of retained checking accounts held by customers in LMI areas in

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CONA’s AAs on December 31, 2019. Similarly, there were more than 1,660,000 retained
savings accounts held by customers in LMI areas in CONA’s AAs on December 31, 2023, which
was more than 540,000 (or 49%) higher than the number of retained savings accounts held by
customers in LMI areas in CONA’s AAs on December 31, 2019. This represents a significant
increase in the number of accounts held by customers in LMI areas and the successful retention
of account holders in LMI areas reinforces the effectiveness of CONA’s overall retail strategy in
serving LMI populations through a combination of branch, cafe and digital strategies with best-
in-class products.

CONA’s consumer checking and savings accounts are designed with the customer’s
needs being foundational, having no monthly fees or minimum balance requirements, and are
particularly attractive and beneficial to LMI populations. CONA became the first top-ten retail
bank to eliminate all overdraft fees and non-sufficient fund (“NSF”) fees for its consumer
banking customers in 2022. As a result of this change, CONA’s flagship 360 Checking account
was awarded “Bank On” certification by the Cities for Financial Empowerment Fund, a national
nonprofit organization that works to ensure that everyone has access to a safe, affordable
transactional banking account. The certification standards include core and strongly
recommended features that address cost, functionality, and consumer safety. They establish an
ambitious, but achievable, baseline for safe, affordable, and appropriate accounts that meet the
needs of consumers with low incomes, particularly those outside the financial mainstream

For additional examples of CONA’s grants and philanthropic activities, please see
Exhibit 25.

2. Discover Bank’s CRA Activity Since Their Last CRA Evaluations

Discover Bank is also proud of the key attributes of its CRA program and governance.
The following illustrates Discover Bank’s performance against goals for “Outstanding” in 2022
and 2023:

(a) Strategic Plan Goal 1: New CD Loans and Investments – To meet the
“Outstanding” goal, Discover Bank needed to provide $278 million ($134 million
for 2022 and $144 million for 2023) in new financing and commitments for
qualified community development loans and investments. In total, Discover Bank
provided over $330 million with over $134 million lent, invested, and committed
in 2022 and over $196 million lent, invested, and committed in 2023.

o As noted above, Discover Bank created the DAHIF, a Discover Bank-owned

LIHTC fund, with Nationwide Mutual Insurance Company (“Nationwide”) as
the manager and guarantor of the fund. Nationwide works with syndicator
partners to originate, underwrite, and provide asset management for specific
LIHTC-eligible properties in geographical areas defined by Discover Bank.
In 2022, Discover Bank committed $62 million in equity to 13 properties in
2022 and $112 million in equity to 16 properties in 2023.

o Discover Bank continued to help the Milford Housing Development

Corporation (“MHDC”), the largest nonprofit developer in Discover Bank’s

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 AA, to acquire the funding needed for the redevelopment of 410 critical units
of affordable housing located in the highly desirable beach resort area within
Discover Bank’s AA. The projects were awarded $8 million in American
Rescue Plan Act (“ARPA”) funding in 2023 and a $8 million congressional
appropriation was approved with the 2024 federal budget, thus setting up the
projects for commencement of rehabilitation in 2025.

x As noted above, Discover Bank created the Development Fund, a NMTC fund
owned to invest in opportunities in geographical areas defined by Discover
Bank. Discover Bank committed $13 million in equity to three projects in
2022 and $31 million in equity to 10 projects in 2023. Two noted projects
Discover Bank invested in were the Justice Thurgood Marshall Center
Amenity and the East Side Charter School STEM facility.

x The Thurgood Marshall Amenity Center, a former segregated

elementary school in Baltimore’s Upton community, will be a 22,068
square foot facility consisting of 12 repurposed classrooms, which are
expected to be subleased for use as a museum and art gallery, public
event space, and office space. In addition, the Beloved Community
Services Corporation (“BCSC”) will join forces with the University of
Maryland to utilize the facility as a source for critical services related
to crime prevention for the residents of Upton and West Baltimore.

x The Chemours Community Discovery STEM HUB will be a 40,000

square foot STEM facility for a charter school located in a low-income
census tract in the City of Wilmington. The addition will be to the
existing school East Side Charter facility that currently serves 474
students in kindergarten through 8th grade. The STEM facility will be
available during non-school hours and will be managed by the
Wilmington Public Library to offer educational, employment and
cultural programs to community residents. Discover Bank contributed
greatly to enabling the project to receive two allocations of NMTCs.
In addition to the NMTC investment, Discover Bank provided a $3.6
million permanent loan facility and up to a $3.5 million bridge loan
facility in 2023. This innovative approach demonstrates Discover
Bank’s ability to utilize multiple financing channels and relationships
to support development.

x Discover Bank continues to support the DSHA MBS Purchase Program. In

2022 and 2023, Discover Bank funded (or committed to fund) $48.2 million
and $35 million, respectively.

x Discover Bank established the Discover Financial Health Improvement Fund

(“DFHIF”) in 2023, which supports start-ups and early-stage companies that
offer the type of products and services that are focused on underserved LMI
individuals and small businesses. Discover Bank committed to investing $36
million in total equity capital to facilitate the funding of companies and to

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 meet the fund’s obligations over the expected 10-year life of DFHIS. The
purpose of the DFHIF is to help entrepreneurs scale their technologies so that
they can deliver appropriate financial/payment products and services that
support LMI consumers and small businesses. Where appropriate, the fund’s
managers will emphasize supporting diverse founders (i.e., founders of color
and female founders) and founders who have lived experience as LMI
consumers.

(b) Strategic Plan Goal 2: Ratio of Community Development Loans and

Qualified Investments to Average Assets – Discover Bank achieved the 0.60%
ratio of new community development loans and qualified investments and prior
book value of investments to average its assets in 2022 and 2023; this activity met
the respective annual goals for Outstanding performance.

(c) Strategic Plan Goal 3: Community Development Grants – Discover Bank

provided $3,960,000 in community development grants in 2022. In 2023,
Discover Bank provided $4,020,000 in community development grants; this
activity met the respective annual goals for Outstanding performance.

Discover Bank continued to provide grants and in-kind contributions to various

organizations, financial institutions, and governments to help meet the credit
needs of LMI persons and small businesses within the AA and Discover Bank’s
Broader Area. Areas of emphasis continued to include qualified grants for
affordable housing, small business and economic development, financial literacy,
and Covid-19 response and recovery. Notable examples of qualified grants
provided since the last evaluation period include:

x Discover Bank provided SSCFCU $975,000 in funding needed to support

three startup minority owned fintech companies to issue the credit union’s
first debit card, secured credit card, and an investing application. The
Discover team worked with the early-stage companies to have the cards
associated with the debit card and secured credit card issued on the Discover
Global Network and provided technical assistance in helping to identify their
issuing bank partners. The debit card product is built in connection with a
mobile wallet and social networking platform that will encourage savings,
investing and other wealth building opportunities including homeownership
and entrepreneurship. Bank representatives also worked to identify a fintech
company capable of delivering a fractional share investing platform that will
allow members to buy and sell stocks of companies in amounts as low as $5
with an easy and simplified application. With these three products, SSCFCU
will now have additional tools to allow its members to participate in
mainstream financial services for free in a safe and sound environment.

x In response to the increased need for emergency shelter, Discover Bank

provided a $75,000 grant to Springboard Collaborative to make improvements
to the communal areas of their new pallet village, which provides 64 square
foot micro homes for people experiencing homelessness. The village opened

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 within Discover Bank’s AA in 2023 and serves nearly 50 people. Discover
Bank also supported a nearby transitional home that serves individuals and
families with $15,000 annual operating grants and assisted West End
Neighborhood House with a $100,000 grant to support the site acquisition of a
property within Discover Banks AA that will serve as an expansion of a
program that provides housing and supportive services to youth experiencing
homelessness and youth exiting foster care.

x Discover Bank provided a $50,000 grant to support a collaboration between

the Delaware Community Foundation, the University of Delaware’s
Partnership for Healthy Communities, and the Delaware Community
Foundation, which provides funding and technical support to LMI
communities to develop and implement approaches to address health and
economic disparities.

x To support workforce development, Discover Bank provided a $50,000 to the

NERDiT Foundation to support their apprentice and pre-apprentice programs
in electronic device repair and recycling. NERDiT operates the only
Responsible Recycling (R2) certified electronic recycling business in
Delaware, providing an environmentally friendly place for the community to
recycle old or broken technology, while providing the skills necessary for
people who are either unemployed or underemployed to get training and
establish a career in the technology repair business.

x Discover Bank made a $25,000 grant to Survivor Ventures, which addresses

the employment needs of survivors of human trafficking–an emerging issue in
Delaware. The program empowers trafficking survivors by reimbursing small
businesses for participants’ wages during the first year of employment, which
supports small businesses while lowering barriers for survivors re-entering the
workforce. The program also provides entrepreneurship training to empower
survivors to develop their own small businesses to augment their income.

x A $60,000 grant to The Pete Du Pont Freedom Foundation supports the

Equitable Entrepreneurial Ecosystem (E3) initiative that delivers in-depth,
personalized training and technical assistance to Black and Latinx small
business owners within Discover Bank’s AA.

x To support financial education for the community and children in the

classroom, Discover Bank provided a grant of $57,000 to support the
Delaware Council on Economic Education for two initiatives. The first,
Delaware.Money, aggregates financial education resources of nonprofits that
provide services to LMI adults. The second initiative focused on training K-
12 educators to deliver personal finance and economic education instruction.

x Discover Bank provided a $50,000 grant to Roofs from the Heart to repair and
replace roofs for LMI homeowners throughout Delaware. The program works
in concert with MHDC’s home repair program to leverage funding from

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 multiple sources to ensure that properties can receive repairs inside and out,
since roofs are often one of the costliest repair items.

x Discover Bank provided a $15,000 grant to the Delaware Recreation

Education Athletics and Mentoring (“DREAM”) Association to support the
Stocks on the Block program. The program seeks to educate LMI children and
their parents on the importance of wealth creation through investing in a safe
and sound manner.

x Discover Bank provided grants of $250,000 each to Kent and New Castle
Counties in Delaware to establish the Kent County Growth Fund and the
Grow NCC Fund as part of a SBA 7a lending program.

(d) Strategic Plan Goal 4: Community Development Services – As discussed

above, Discover Bank has created a point system to track community
development services provided by personnel within the AA and Discover Bank’s
regional area. Discover Bank achieved 305 points, including 152 points in 2022
and 153 points in 2023, which exceeded the respective annual goals of 142 points
in 2022 and 144 points in 2023. Notable examples of qualified services provided
during the evaluation period included:

x Discover Bank supported the Delaware Community Reinvestment Action

Council (“DCRAC”) in their efforts to reduce the racial wealth gap in the City
of Wilmington through homeownership. Specifically, the bank connected
DCRAC with the Metropolitan Wilmington Urban League to form a
partnership for identifying families interested in homeownership and
providing them with U.S. Housing and Urban Development (HUD)-certified
housing counseling services.

x Discover Bank partnered with Stepping Stones Community Federal Credit

Union and two small minority-owned development companies, WilmInvest
and PittPass Holdings, to secure funding to purchase and rehabilitate homes
for homeownership. Discover Bank representatives took a leadership role in
helping WilmInvest and PittPass Holdings obtain a loan from NeighborGood
Partners CDFI to purchase a portfolio of properties that can be converted into
homeownership and led the successful application process for a Federal Home
Loan Bank Affordable Housing Program grant of $750,000 to renovate the
first five homes. With the FHLB grant and DCRAC downpayment and
settlement cost assistance, the mortgages are estimated to be $90,000,
allowing the program to serve very low-income families. Discover Bank
representatives also helped to identify program partners including the
Wilmington Housing Authority, the Community Education Building, YWCA
of Delaware, and the United Way to provide financial coaching, case
management services, pre- and post-homeownership counseling, and
identification of potential homebuyers.

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 x Discover Bank took a leadership role in providing capital to small businesses,
nonprofits, and underserved consumers through engagement with CDFIs.
Bank representatives also serve on the boards of Locus (formerly Virginia
Community Capital), NeighborGood Partners, Stepping Stones Community
Federal Credit Union, and True Access Capital.

x Discover Bank representatives worked with Capital Good Fund, Nemours

Children’s Hospital and United Way’s $tand by Me program to offer financial
coaching and low interest loans to the LMI parents of patients that need to
purchase handicapped accessible vehicles or make home repairs to facilitate
the discharge of their children from the hospital to home.

x Bank representatives supported small business serving entities in a variety of

ways. As a new member of the Kent and Sussex County Equitable
Entrepreneurial Ecosystem (E3) committees, a Bank representative works
with the Pete Du Pont Freedom Foundation to help underserved small
businesses grow, sustain, and accelerate their businesses. The representative
reviews applications for the program and makes individual recommendations
for each applicant about additional programs, partners, or markets to consider
pursuing and assists the Foundation’s leadership by reviewing the cohort’s
progress throughout the year. Representatives also served on the Small
Business Development Center’s Advisory Committee, the board of True
Access Capital, a CDFI that provides technical assistance and lending to small
businesses with a focus on minority and women owned businesses, the board
of the Emerging Enterprise Center that provides technical assistance and a
coworking space to small businesses, and supported the launch of the Kent
County Growth Fund and Grow NCC Fund.

(e) Strategic Plan Goal 5: Consumer Loans in Moderate-Income Census Tracts

in the Assessment Area – Discover Bank extended $11.4 million in consumer
credit to individuals who resided in moderate-income census tracts within
Discover Bank’s AA, including $4.35 million in 2022 and $7.06 million in 2023,
which exceeded Discover Bank’s goals for Outstanding performance in both
years.

These attributes have contributed to Discover Bank’s CRA performance since Discover
Bank’s last CRA Evaluation. As discussed above, the evaluation period for the Discover Bank
CRA Evaluation concluded on December 31, 2021. Since the end of its evaluation period,
Discover Bank for 2022 operated under its FDIC-approved 2021-2025 CRA Strategic Plan
(effective January 1, 2021 through December 31, 2025) and for 2023 under its modified FDIC-
approved 2023-2027 CRA Strategic Plan (effective January 1, 2023 through September 31,
2027). Discover Bank has continued to demonstrate very strong CRA performance and
significantly positive impacts on its communities.

D. Pro Forma CRA Program at CONA

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 CONA will continue to be committed to advancing its strong record of CRA performance
while helping to serve the needs of its communities after consummation of the Proposed
Transaction. The Proposed Transaction will provide CONA with an opportunity to bring the
best CRA practices and products of both entities to the combined bank’s customers.

On consummation of the Proposed Transaction, the combined banking organization will

continue to operate under CONA’s policies and procedures. CONA expects to maintain or
exceed the level of Discover Bank’s CRA activities in the Discover Bank AA and broader area
and will collaborate with Discover Bank to evaluate CRA activities, programs, products, and
business strategies ensuring CONA’s continued strong performance under the CRA. Care will
be taken to meet with the existing Discover Bank CRA staff to understand their current
compliance practices, policies and procedures, in addition to understanding how to best integrate
the Discover Bank CRA and outreach teams and data into the CONA CRA program and
governance structure. CONA will work with Discover Bank to understand its product set in
more detail, and how the products and programs are meeting the needs of the community. As
new opportunities are identified to address community needs, CONA and Discover will apply
their resources and expertise to work with community organizations to address those needs. The
combined entities will leverage respective learning and capabilities on strategies to best serve
LMI populations and communities.

CONA will engage with Discover Bank staff in meeting with community and advocacy
groups to understand the impacts and needs of LMI and underserved communities and will
prioritize the findings to serve communities throughout their respective AAs, including LMI and
other underserved communities. The combined bank will have a community outreach team that
has a comprehensive skillset and broader CRA expertise. Lastly, the CONA CD lending and
investment teams will work with Discover Bank staff to understand each other’s products and
programs to best meet the needs of the community.

In summary, the merging of CONA and Discover Bank bring together two strong
banking entities with a longstanding commitment to CRA. The combination of the best practices
and complementary areas of expertise of these two financial institutions will result in an
enhanced and more impactful contribution to the communities in which they operate.

Conclusion

The Bank Merger will join two banks with highly compatible business models. The
resulting institution will have a comprehensive risk management system and compliance culture
better able to serve consumers, businesses and other customers across the nation. All of the
statutory factors that the OCC must consider in acting on the OCC Application are consistent
with approval. Capital One has ample financial and managerial resources to successfully
consummate the Proposed Transaction. COFC, Merger Sub, CONA, Discover and Discover
Bank are well-capitalized, and COFC and CONA will remain so upon consummation of the
Proposed Transaction.

Capital One, including CONA, has designated the ILT and established the IMO with
cross-divisional representatives and workstreams to ensure a successful integration of Discover
Bank into CONA. CONA has a robust risk management program, including for

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BSA/AML/Sanctions Compliance and Consumer Compliance. Capital One will use its
expanded risk management program for the combined bank to ensure continued safe and sound
operations.

The Bank Merger will not substantially lessen competition in any banking market. The
parties do not overlap in any local banking market and will have a de minimis impact with
respect to nationwide deposits. Both CONA and Discover Bank are credit card issuers, but any
such market is not concentrated and intensely competitive, and the Bank Merger will not affect
the competitive dynamics of card issuing. The Proposed Transaction will enable Capital One to
invest in and grow its banking products, to innovate and bring to market new products and
services, and make Discover’s payments networks more attractive through, inter alia, improved
compliance and risk management. By vertically integrating a more scaled credit card portfolio
with Discover’s payments networks, the Proposed Transaction will further strengthen these
networks. The Bank Merger and this OCC Application thus present the most viable chance to
deconcentrate and increase competition among payments networks in the United States.

In addition, the Bank Merger will not result in any material increased risk to the U.S.
banking or financial system. Instead, the Proposed Transaction will have a systemically
stabilizing impact by creating a combined company that has increased earnings capability and
financial strength. These benefits will enable the combined organization to compete more
effectively against the largest U.S. banking organizations that operate nationally and are
aggressively seeking to increase their deposit market shares, particularly in the major
metropolitan areas of the United States, as well as the larger regional banks that also operate on a
national level and have seen substantial growth over the last decade. Capital One’s financial
strength will also support its continued high level of investment in technologies and innovation
to effectively address the evolving needs of customers and communities for innovative banking
services and cybersecurity protections.

CONA’s commitment to continuing its Outstanding CRA performance record will benefit
the customers and communities served by the combined bank. Customers of CONA and
Discover Bank will also benefit from the resulting broader banking products and service
offerings of the combined organization. In addition, customers and communities will benefit
from the culture and dedication of Capital One that is focused on providing superior customer
service to consumers and businesses alike and economic support to all segments of its
communities, including LMI and other underserved populations. In addition, the continuation of
Capital One’s shared prioritization of diversity and inclusion of customers, communities and
employees will benefit all of Capital One’s constituents.

For all the reasons discussed in this OCC Application, including the exhibits, CONA
respectfully submits that the OCC Application should be approved.

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 INTERAGENCY BANK MERGER ACT APPLICATION FORM
INFORMATION REQUESTS

1. Describe the transaction’s purpose, structure, significant terms, conditions, and

termination dates of related contracts or agreements; and financing arrangements,
including any plan to raise additional equity or incur debt.

Capital One and Discover are planning to consummate the Proposed Transaction as soon
as practicable in order to preserve the benefits of the Proposed Transaction and minimize the loss
of employees and customers that results from a protracted period between announcing and
closing a transaction.

The purpose of the Proposed Transaction is to combine two highly compatible banking
organizations with complementary business models, strong financials and capital ratios, and
dedication to the communities they serve. Capital One will acquire and operate the Discover
Global Network to process transactions for the branded credit and debit cards and provide
payment transaction processing and settlement services.

Pursuant to the Merger Agreement, each outstanding share of Discover’s common stock
will be converted into the right to receive 1.0192 shares of Capital One common stock. In
addition, each outstanding share of Discover preferred stock will be converted into the right to
receive one share of a newly created series of Capital One preferred stock having materially the
same terms as the applicable series of Discover preferred stock. Capital One intends to file a
registration statement on Form S-4 with the SEC to register the shares of Capital One’s common
stock that will be issued to Discover stockholders in connection with the Proposed Transaction.
The registration statement will include a joint proxy statement of Capital One and Discover that
will also constitute a prospectus of Capital One.

Please see the discussions in the Preliminary Statement – Introduction, Executive

Summary and Terms of the Proposed Transaction sections above for information about terms of
the Proposed Transaction. Please see Exhibit 5 for information on the share issuance for the
Proposed Transaction.

2. Indicate any other filings related to this transaction with other state and federal
regulators.

Please see the Preliminary Statement – Required Approvals section above.

3. Discuss whether and how the resultant institution’s business strategy and operations
will remain the same or change from that of the applicant. Identify new business
lines. Provide a copy of the business plan, if available. Discuss the plan for
integrating any new businesses into the resultant institution.

Please see the Preliminary Statement – Executive Summary and Convenience and Needs
Considerations of the Bank Merger sections above.

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4. Provide a copy of (a) the executed merger or transaction agreement, including any
amendments, (b) any board of directors’ resolutions related to the transaction, and
(c) interim charter, names of organizers, and any other related documents.

A summary of the principal terms of the Proposed Transaction is provided in the

Preliminary Statement – Structure and Terms of the Proposed Transaction section above. An
execution version of the Agreement is provided in Exhibit 1.

Resolutions approving the Proposed Transaction by COFC’s Board of Directors and

resolutions of the Boards of Directors of CONA approving the Bank Merger and the filing of the
related regulatory filings, as well as the related consent of COFC as the sole stockholder of
CONA approving the Bank Merger, are provided in Exhibit 8, Exhibit 9 and Exhibit 10,
respectively. Stockholder consent of COFC, as the sole stockholder of Merger Sub, and
resolutions of Merger Sub’s Board of Directors approving the First Step Merger are provided in
Exhibit 11 and Exhibit 12, respectively.

Joint resolutions of the Boards of Directors of Discover and Discover Bank approving the
Proposed Transaction, including the Bank Merger, and the filing of the Bank Merger application,
as well as the related consent of Discover as the sole stockholder of Discover Bank, are provided
in Exhibit 13 and Exhibit 14, respectively.

5. Describe any issues regarding the permissibility of the proposal with regard to
applicable state or federal laws or regulations (for example, non-bank activities,
branching, or qualified thrift lender test).

There are no permissibility issues under state or federal law in connection with the Bank
Merger.

6. Describe any non-conforming or impermissible assets or activities that an applicant

or resultant institution may not be permitted to retain under relevant law or
regulation, including the method of, and anticipated time period for, divestiture or
disposal.

There are no non-conforming or impermissible assets or activities involved in the Bank

Merger.

7. Provide the following financial information.

a. Pro forma balance sheet, as of the end of the most recent quarter. Indicate
separately for the applicant and target institution each principal group of
assets, liabilities, and capital accounts; debit and credit adjustments
(explained by footnotes) reflecting the proposed acquisition; and the
resulting pro forma combined balance sheet.

Please see Confidential Exhibit C, which includes the requested balance sheet
information, as of December 31, 2023.

-85-
 b. Projected balance sheets and corresponding income statements as of the end
of the first three years of operation following consummation. Describe the
assumptions used to prepare the projected statements.

Please see Confidential Exhibit C, which includes the projected balance sheets and
corresponding income statements and related information.

c. Provide a discussion on the valuation of the target entity and any anticipated
goodwill and other intangible assets.

Please see Confidential Exhibit C, which includes the requested information in the Notes
or Assumptions to the financial charts provided.

d. Pro forma and Projected Regulatory Capital Schedule, as of the end of the
most recent quarter and each of the first three years of operation, indicating:

x Each component item for common equity tier 1 capital, additional tier 1
capital and tier 2 capital pursuant to the currently applicable capital
requirements.

x Total risk-weighted assets.

x Common equity tier 1 capital, tier 1 capital, total capital, and leverage
ratios pursuant to the capital regulations. If applicable, also provide the
applicant’s existing and pro forma supplementary leverage ratio
pursuant to the current capital adequacy regulations.

Please see Confidential Exhibit C, which includes the requested capital-related

information for the Proposed Transaction.

8. List the directors and senior executive officers of the resultant institution and
provide the name, address, position with and shares held in the resultant institution
or holding company, and principal occupation (if a director). Indicate any changes
to the applicant’s current directors and senior executive officers that would occur at
the resultant institution. Applicants should consult with the responsible regulatory
agency regarding whether any biographical or financial information should be
submitted with respect to any new principal shareholders, directors, and senior
executive officers.

Please see the Preliminary Statement – Financial and Managerial Resources and Future
Prospects section above for information on the directors and senior executive officers of COFC,
Merger Sub and CONA. Information relating to new directors of CONA will follow at a later
date.

9. Describe any litigation or investigation by local, state, or federal authorities

involving the applicant or any of its subsidiaries or the target or any of its
subsidiaries that is currently pending or was resolved within the last two years.

-86-
 Except as provided in Confidential Exhibits M and N, none of COFC or Discover, nor
any of their respective subsidiaries, have been subject to any litigation or investigation by local,
state or federal authorities (whether ongoing, pending or resolved) within the last two years.56

10. Describe how the proposal will assist in meeting the convenience and needs of the
community to be served, including, but not limited to, the following:

a. Summarize efforts undertaken or contemplated by the applicant to ascertain

and address the needs of the community(ies) to be served, including
community outreach activities, as a result of the proposal.

Please see the Preliminary Statement – Convenience and Needs Considerations of the
Bank Merger and Commitment to the CRA sections above for information on how the Proposed
Transaction will meet the convenience and needs of the communities to be served by the
combined bank.

b. For the combining institutions, list any significant anticipated changes in

services or products that will result from the consummation of the
transaction.

Please see the Preliminary Statement – Convenience and Needs Considerations of the
Bank Merger and Commitment to the CRA sections above for information on the changes and
services or products that will result from the consummation of the transaction.

c. To the extent that any products or services would be offered in replacement

of any products or services to be discontinued, indicate what these are and
how they would assist in meeting the convenience and needs of the
communities affected by the transaction.

Please see the Preliminary Statement – Convenience and Needs Considerations of the
Bank Merger and Commitment to the CRA sections above for more information.

d. Discuss any enhancements in products or services expected to result from the

transaction.

Please see the Preliminary Statement – Convenience and Needs Considerations and
Commitment to the CRA sections above for information on how the Bank Merger will meet the
convenience and needs of the communities to be served by the combined company and bank,
including the expanded products and services that customers of Discover Bank will have access
to as a result of the Bank Merger.

56
In addition to litigation and investigations by governmental authorities, Capital One and Discover and their
respective affiliates are involved in a number of judicial proceedings relating to matters arising from conducting
normal business activities. For information on material proceedings, please see COFC’s 2023 Annual Financial
Statement, Note 18, “Commitments, Contingencies, Guarantees and Others” available at
https://investor.capitalone.com/static-files/994c8bec-608e-49d1-8ae2-a039bc43ba54 and Discover 2023 Annual
Financial Statement, Note, “Litigation and Regulatory Matters,” available at
https://d18rn0p25nwr6d.cloudfront.net/CIK-0001393612/f3103b18-c2f1-4357-aa14-331e3771515c.pdf.

-87-
11. Describe how the applicant and resultant institution will assist in meeting the
existing or anticipated needs of its community(ies) under the applicable criteria of
the Community Reinvestment Act (CRA) and its implementing regulations,
including the needs of low- and moderate-income geographies and individuals. This
discussion should include, but not necessarily be limited to, a description of the
following:

a. The significant current and anticipated programs, products, and activities,

including lending, investments, and services, as appropriate, of the applicant
and the resultant institution.

Please see the Preliminary Statement – Convenience and Needs Consideration of the
Bank Merger and Commitment to the CRA sections above for information on the CRA
performance records, including their products and programs that are designed to meet the needs
of LMI communities and individuals, and other responsive information.

b. The anticipated CRA assessment areas of the resultant institution. If the

resultant institution’s CRA assessment area would not include any portion of
the current assessment area of the target or the applicant, describe the
excluded areas.

The Proposed Transaction would result in CONA establishing a new assessment area in
Delaware, which will include all census tracts in Sussex County and seven contiguous census
tracts in Kent County.

c. The plans for administering the CRA program for the resultant institution
following the transaction.

Please see the Preliminary Statement – Commitment to the CRA section above for a
discussion of the plans for administering the CRA Program after the Proposed Transaction.

d. For an applicant or target institution that has received a CRA composite

rating of “needs to improve” or “substantial noncompliance” institution-
wide or, where applicable, in a state or a multistate Metropolitan Statistical
Area (MSA), or has received an evaluation of less than satisfactory
performance in an MSA or in the non-MSA portion of a state in which the
applicant is expanding as a result of the transaction, describe the specific
actions, if any, that have been taken to address the deficiencies in the
institution’s CRA performance record since the rating.

Not applicable.

12. The Dodd-Frank Wall Street Reform and Consumer Protection Act requires
regulators to consider the risk to the stability of the United States banking and
financial systems when reviewing a merger transaction between financial

-88-
 institutions. Discuss any effect(s) that the proposed transaction may have on the
stability of the United States banking and financial systems.

Please see the Preliminary Statement – Financial Stability Risk Considerations section
above for responsive information.

13. The Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994 (12 U.S.C.
§ 1831u) (R-N) imposes additional considerations for certain interstate mergers
between insured banks. Savings associations are not subject to R-N. If subject to
these provisions, please provide the following information:

a. Identify any host states involved with this transaction that require the target
to be in operation for a minimum number of years and discuss compliance
with the R-N age requirement (12 U.S.C. § 1831u(a)(5)).

b. Indicate that (1) the applicant has complied or will comply with the
applicable filing requirements of any host state(s) that will result from the
transaction and (2) the applicant has sent a copy of the merger application to
the state bank supervisor of the resultant host state(s).

c. Indicate applicability of R-N nationwide and statewide deposit concentration

limits to the transaction.

d. Indicate applicability of state-imposed deposit caps, if any. If applicable,

discuss compliance.

e. Address whether:

i. Each bank involved in the transaction is adequately capitalized on the

date of filing.

ii. The resultant institution will be well-capitalized and well-managed

upon consummation of the transaction.

f. Discuss compliance with the CRA requirement of R-N.

g. Discuss permissibility of retention of the target’s main office and branches.

h. Discuss any other restrictions that the host states seek to apply (including
state antitrust restrictions).

Please see the Preliminary Statement – Interstate Banking Requirements section above
for responsive information.

14. List all offices of the applicant or target that: (a) will be established or retained as
branches, including the main office, of the target institution, (b) are approved but
unopened branch(es) of the target institution, including the date the current federal
and state agencies granted approval(s), and (c) are existing branches that will be

-89-
 closed or consolidated as a result of the proposal (to the extent the information is
available) and indicate the effect on the branch customers served. For each branch,
list the popular name, street address, city, county, state, and zip code, specifying any
that are in low- and moderate-income geographies.57

CONA and Discover Bank believe that customers will be well-served by the combined
bank’s resulting branch network following consummation of the Proposed Transaction. As
discussed above, Discover Bank has its main office located at 502 East Market Street,
Greenwood (Sussex County), Delaware, 19950 and that location will become a full-service brick
and mortar branch of CONA upon consummation of the Bank Merger. The location is not in an
LMI census tract.58

There are no approved, but unopened, branches of Discover Bank. CONA will not
relocate its main office in connection with the Proposed Transaction. CONA and Discover Bank
do not anticipate that there will be any branch closures or consolidations in connection with the
Proposed Transaction.

15. As a result of this transaction, if the applicant will be or will become affiliated with a
company engaged in insurance activities that is subject to supervision by a state
insurance regulator, provide:

a. The name of the company;

b. A description of the insurance activity that the company is engaged in and

has plans to conduct.

c. A list of each state and the lines of business in that state in which the
company holds, or will hold, an insurance license. Indicate the state where
the company holds a resident license or charter, as applicable.

Please see the response to Item 20 below.

If this is a non-affiliated transaction, the applicant also must reply to items 16 through 18.

16. Discuss the effects of the proposed transaction on existing competition in the
relevant geographic market(s) where the applicant and the target institution
operate. The applicant should contact the responsible regulatory agency for specific
instructions to complete the competitive analysis.

After the share issuance and at the time the Bank Merger is consummated, CONA and
Discover Bank will be affiliates. We nevertheless have included a discussion of the competitive

57
Please designate branch consolidations as those terms are used in the Joint Policy Statement on Branch
Closings, 64 FR 34844 (June 29, 1999).
58
Discover Bank does not have any licensed bank branches apart from its main office location. Discover Bank has
an administrative location at 800 Prides Crossing, Newark, Delaware 19713 that CONA expects to retain as an
administrative location of CONA upon consummation of the Bank Merger. CONA does not request a bank branch
license from the OCC for this location.

-90-
effects of the Proposed Transaction in the Preliminary Statement – Competitive Effects section
above to demonstrate that the Proposed Transaction, including the Bank Merger, will not result
in any significantly adverse competitive effects in any banking market.

17. If the proposed transaction involves a branch sale or any other divestiture of all or
any portion of the bank, savings association or non-bank company (in the case of a
merger transaction under 12 U.S.C. § 1828(c)(1)) to mitigate competitive effects,
discuss the timing, purchaser, and other specific information.

Not applicable. No branch sales or other divestitures are needed or proposed to mitigate
competitive effects of the Bank Merger.

18. Describe any management interlocking relationships (12 U.S.C. §§ 3201-3208) that
currently exist or would exist following consummation. Include a discussion of the
permissibility of the interlock with regard to relevant laws and regulations.

Neither CONA nor Discover Bank currently has any management interlocking
relationships for purposes of Sections §§ 3201-3208, and none would exist after consummation
of the Bank Merger.

-91-
 SUPPLEMENT TO INTERAGENCY BANK MERGER ACT
APPLICATION COMPTROLLER OF THE CURRENCY

19.

a. If any of the combining institutions have entered into commitments with

community organizations, civic associations, or similar entities concerning
providing banking services to the community, describe the commitment.

Neither CONA nor Discover Bank have entered into commitments with community
organizations, civic associations, or similar entities concerning providing banking services to the
community in connection with the Proposed Transaction or have any current such commitments
in place for other purposes. As part of the Proposed Transaction, CONA is engaged with
community organizations and expects to prepare a community development plan to demonstrate
its commitment to the communities.

b. If the resultant institution will not assume the obligations entered into by the
target institution, explain the reasons and describe the impact on the communities to be
affected.

Not applicable, please see the response to Item 19a. above.

20. If acquiring a non-national bank subsidiary, provide the information and analysis of
the subsidiary’s activities that would be required if it were established pursuant to
12 C.F.R. § 5.34 or 5.39.

CONA is not acquiring any financial subsidiaries.

Please see Confidential Exhibit O for the information and analysis on the Discover Bank
operating subsidiaries that would be required if COFC were to establish them pursuant to 12
CFR § 5.34 as well as certain other information.

-92-
 CERTIFICATION

We hereby certify that our board of directors, by resolution, has authorized the filing of this
application, and that to the best of our knowledge, it contains no misrepresentations or omissions
of material facts. In addition, we agree to notify the agency if the facts described in the filing
materially change prior to receiving a decision or prior to consummation. Any misrepresentation
or omission of a material fact constitutes fraud in the inducement and may subject us to legal
sanctions provided by 18 USC 1001 and 1007.

We acknowledge that approval of this application is in the discretion of the appropriate federal
banking agency. Actions or communications, whether oral, written, or electronic, by an agency
or its employees in connection with this filing, including approval of the application if granted,
do not constitute a contract, either express or implied, or any other obligation binding upon the
agency, other federal banking agencies, the United States, any other agency or entity of the
United States, or any officer or employee of the United States. Such actions or communications
will not affect the ability of any federal banking agency to exercise its supervisory, regulatory, or
examination powers under applicable law and regulations. We further acknowledge that the
foregoing may not be waived or modified by any employee or agent of a federal banking agency
or of the United States.

Signed this  day of March, 2024.

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MARTIN LIPTON MARK GORDON 51 WEST 52ND STREET ELAINE P. GOLIN STEVEN WINTER
HERBERT M. WACHTELL JEANNEMARIE O’BRIEN EMIL A. KLEINHAUS EMILY D. JOHNSON
EDWARD D. HERLIHY WAYNE M. CARLIN NEW YORK, N.Y. 10019-6150 KARESSA L. CAIN JACOB A. KLING
DANIEL A. NEFF STEPHEN R. DiPRIMA RONALD C. CHEN RAAJ S. NARAYAN
STEVEN A. ROSENBLUM NICHOLAS G. DEMMO TELEPHONE: (212) 403-1000 BRADLEY R. WILSON VIKTOR SAPEZHNIKOV
JOHN F. SAVARESE IGOR KIRMAN GRAHAM W. MELI MICHAEL J. SCHOBEL
SCOTT K. CHARLES JONATHAN M. MOSES FACSIMILE: (212) 403-2000 GREGORY E. PESSIN ELINA TETELBAUM
JODI J. SCHWARTZ T. EIKO STANGE CARRIE M. REILLY ERICA E. AHO
ADAM O. EMMERICH WILLIAM SAVITT GEORGE A. KATZ (1965–1989) MARK F. VEBLEN LAUREN M. KOFKE
RALPH M. LEVENE GREGORY E. OSTLING JAMES H. FOGELSON (1967–1991) SARAH K. EDDY ZACHARY S. PODOLSKY
RICHARD G. MASON DAVID B. ANDERS LEONARD M. ROSEN (1965–2014) VICTOR GOLDFELD RACHEL B. REISBERG
ROBIN PANOVKA ADAM J. SHAPIRO RANDALL W. JACKSON MARK A. STAGLIANO
DAVID A. KATZ NELSON O. FITTS OF COUNSEL BRANDON C. PRICE CYNTHIA FERNANDEZ
ILENE KNABLE GOTTS JOSHUA M. HOLMES KEVIN S. SCHWARTZ LUMERMANN
ANDREW R. BROWNSTEIN ERIC S. ROBINSON
TREVOR S. NORWITZ DAVID E. SHAPIRO MICHAEL S. BENN CHRISTINA C. MA
MICHAEL H. BYOWITZ ERIC M. ROSOF
ANDREW J. NUSSBAUM DAMIAN G. DIDDEN ALISON ZIESKE PREISS NOAH B. YAVITZ
KENNETH B. FORREST MICHAEL J. SEGAL
RACHELLE SILVERBERG IAN BOCZKO TIJANA J. DVORNIC BENJAMIN S. ARFA
BEN M. GERMANA WON S. SHIN
STEVEN A. COHEN MATTHEW M. GUEST JENNA E. LEVINE NATHANIEL D. CULLERTON
SELWYN B. GOLDBERG DAVID M. SILK
DEBORAH L. PAUL DAVID E. KAHAN RYAN A. McLEOD ERIC M. FEINSTEIN
PETER C. HEIN ROSEMARY SPAZIANI
DAVID C. KARP DAVID K. LAM ANITHA REDDY ADAM L. GOODMAN
JB KELLY ELLIOTT V. STEIN
RICHARD K. KIM BENJAMIN M. ROTH JOHN L. ROBINSON STEVEN R. GREEN
JOSEPH D. LARSON LEO E. STRINE, JR.*
JOSHUA R. CAMMAKER JOSHUA A. FELTMAN JOHN R. SOBOLEWSKI MENG LU
LAWRENCE S. MAKOW PAUL VIZCARRONDO, JR.
PHILIP MINDLIN JEFFREY M. WINTNER
THEODORE N. MIRVIS AMY R. WOLF
DAVID S. NEILL MARC WOLINSKY
HAROLD S. NOVIKOFF

* ADMITTED IN DELAWARE

COUNSEL

DAVID M. ADLERSTEIN MICHAEL W. HOLT

SUMITA AHUJA MARK A. KOENIG
FRANCO CASTELLI CARMEN X.W. LU
ANDREW J.H. CHEUNG J. AUSTIN LYONS
PAMELA EHRENKRANZ ALICIA C. McCARTHY
ALINE R. FLODR JUSTIN R. ORR
KATHRYN GETTLES-ATWA NEIL M. SNYDER
ADAM M. GOGOLAK JEFFREY A. WATIKER
ANGELA K. HERRING

E-Mail: [email protected]

March 20, 2024

Jason Almonte
Director For Large Bank Licensing
Office of the Comptroller of the Currency
7 Times Square
10th Floor Mailroom
New York, New York 10036

Re: Application by Capital One, National Association

Dear Mr. Almonte,

On behalf of our client, Capital One, National Association (“CONA”), main office
McLean, Virginia, we respectfully submit this application (the “OCC Application”) to the Office
of the Comptroller of the Currency (the “OCC”) requesting approval to merge Discover Bank
into CONA, with CONA as the surviving entity (the “Bank Merger”), pursuant to 12 U.S.C. §§
215a-1, 1828(c) and 1831u and 12 CFR part 5. Prior to the Bank Merger, CONA’s parent
holding company, Capital One Financial Corporation (“COFC”, “Capital One” or the
“Company”) will acquire Discover Financial Services (“Discover”), the parent company of
Jason Almonte
March 20, 2024
Page 2

Discover Bank, through a two-step merger, with COFC continuing as the surviving corporation
(together with the Bank Merger, the “Proposed Transaction”).

In addition, CONA is seeking OCC permission to retain and operate as operating

subsidiaries Discover Bank’s subsidiaries, pursuant to 12 U.S.C. § 24 and 12 CFR § 5.34.

The OCC Application includes: (1) the OCC Application, (2) a Public Exhibits Volume,
and (3) a Confidential Exhibits Volume.

* * *

Confidential treatment is being requested under the federal Freedom of Information Act,
5 U.S.C. § 552 (the “FOIA”), and the implementing regulations of the Office of the Comptroller
of the Currency (the “OCC”), for the information contained in the Confidential Exhibits Volume
to this application (the “Confidential Materials”). The Confidential Materials include, for
example, non-public pro forma financial information and information regarding the business
strategies and plans of (1) COFC, Vega Merger Sub, Inc. (“Merger Sub”) and CONA and
(2) Discover and Discover Bank, and other information regarding additional matters of a similar
nature, which is commercial or financial information that is both customarily and actually treated
as private by COFC, Merger Sub, CONA, Discover and Discover Bank and provided to the
government under an assurance of privacy. Certain information in the Confidential Materials
also includes confidential supervisory information, which is protected from disclosure. None of
this information is the type of information that would otherwise be made available to the public
under any circumstances. All such information, if made public, could result in substantial and
irreparable harm to COFC, Merger Sub, CONA, Discover and Discover Bank. Other
exemptions from disclosure under the FOIA may also apply. In addition, investors and potential
investors could be influenced or misled by such information, which is not reported in any
documents filed or to be filed in accordance with the disclosure requirements of applicable
securities laws, as a result of which COFC, Merger Sub, CONA, Discover and Discover Bank
could be exposed to potential inadvertent violations of law or exposure to legal claims.
Accordingly, confidential treatment is respectfully requested for the Confidential Materials under
the FOIA and the OCC’s implementing regulations.

Please contact Rosemary Spaziani (212-403-1342) or Richard K. Kim (212-403-1354)

before any public release of any of this information pursuant to a request under the FOIA or a
request or demand for disclosure by any governmental agency, congressional office or
committee, court or grand jury. Such prior notice is necessary so that COFC, Merger Sub,
CONA, Discover and Discover Bank may take appropriate steps to protect such information
from disclosure.

* * *
Jason Almonte
March 20, 2024
Page 3

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Very truly yours,

Rosemary Spaziani