Capital One received approval from the OCC and the Federal Reserve to complete the acquisition of Discover Financial Services. The closing of the Transaction is expected to occur on May 18, 2025, subject to remaining closing conditions.

Total deposits increased by $4.8 billion to $367.5 billion, driven by the national consumer banking strategy, which includes a national brand and marketing strategy, cafés and tech/digital investments.

In the first quarter of 2025, Capital One incurred $110 million of integration expenses related to the Discover Transaction, primarily driven by professional services, which are included within operating expense in the consolidated statements of income.

Non-interest expense increased by $765 million to $5.9 billion, primarily driven by continued investment in technology, an increase to the litigation accrual and increased marketing spend, indicating management's commitment to strategic initiatives despite cost pressures.

As part of the Federal Reserve approval for the Discover acquisition, Capital One committed to comply with and remediate a new enforcement action against Discover Bank following closing, indicating a proactive approach to addressing regulatory concerns.

The OCC approval for the Discover acquisition included a condition requiring CONA to provide a detailed plan to the OCC following closing to address the underlying root causes of outstanding enforcement actions against Discover Bank.

Capital One received regulatory approval from the Office of the Comptroller of the Currency (OCC) and the Board of Governors of the Federal Reserve System to complete the Transaction. The Federal Reserve approval was accompanied by announcement of a new enforcement action by the Federal Reserve against Discover Bank which Capital One has committed to comply with and remediate following closing.

Our total company cumulative interest-bearing deposit beta increased to 34% as of March 31, 2025, from 11% as of December 31, 2024. We define cumulative deposit beta as the ratio of changes in the average rate paid on our average interest-bearing deposits to changes in the upper bound of the federal funds rate during the current falling interest rate cycle.

As of March 31, 2025 and December 31, 2024, we held $63.7 billion and $64.9 billion, respectively, of estimated uninsured deposits. These amounts were primarily comprised of checking and savings deposits. These estimated uninsured deposits comprised approximately 17% and 18% of our total deposits as of March 31, 2025 and December 31, 2024.

In the first quarters of 2025 and 2024, the Domestic Card business accounted for greater than 90% of total net revenue of our Credit Card business.

The termination of our Walmart program agreement increased net interest margin by 20 bps.

Northeast accounts for 36.3% of the commercial real estate portfolio.

Efficiency ratio increased to 59.02% from 54.64% due to higher non-interest expense.

Operating efficiency ratio increased to 47.00% from 43.89% due to higher operating expense.

Employees increased to 53.9 thousand from 52.6 thousand.

Non-interest expense increased by $765 million to $5.9 billion, primarily driven by continued investment in technology, an increase to the litigation accrual and increased marketing spend.

In the first quarter of 2025, we incurred $110 million of integration expenses related to the Transaction, primarily driven by professional services, which are included within operating expense in our consolidated statements of income.

We regularly explore and evaluate opportunities to acquire technology companies and related assets to improve our information technology infrastructure and to deliver on our digital strategy.

In the first quarter of 2025, we declared and paid common stock dividends of $236 million and repurchased $150 million of shares of our common stock.

While the Merger Agreement is in effect and until the Merger Agreement is terminated or the Transaction is completed, we are restricted from paying quarterly cash dividends on our common stock in excess of $0.60 per share per quarter.

Our common equity Tier 1 ("CET1") capital ratio as calculated under the Basel III standardized approach was 13.6% and 13.5% as of March 31, 2025 and December 31, 2024, respectively.

The provided 10-Q does not contain explicit information regarding new or ongoing ESG (Environmental, Social, and Governance) initiatives. Further research into the company's broader communications may be required to assess their ESG performance.

We expect net interest income and our net interest margin to fluctuate based on changes in interest rates and changes in the amount and composition of our interest-earning assets and interest-bearing liabilities.

Capital One and Discover each held a special meeting of their respective stockholders during which the issuance of Capital One common stock as merger consideration to the holders of Discover common stock was approved by the requisite vote of the Capital One stockholders and the Merger Agreement was adopted by the requisite vote of the Discover stockholders.

Total deposits increased by $4.8 billion to $367.5 billion as of March 31, 2025 from December 31, 2024 primarily driven by our national consumer banking strategy.