Capital One Financial COF Unfunded Equity Investment Commitments

As part of our community reinvestment initiatives, we invest in private investment funds that make equity investments in multifamily affordable housing properties, a majority of which are VIEs. We receive affordable housing tax credits for these investments. The activities of these entities are financed with a combination of invested equity capital and debt. We account for our investments in qualified affordable housing projects using the proportional amortization method, where costs of the investment are amortized over the period in which the investor expects to receive tax credits and other tax benefits, and the resulting amortization is recognized as a component of income tax expense attributable to continuing operations. For the six months ended June 30, 2026 and 2025, we recognized amortization of $374 million and $339 million, respectively, and tax credits of $444 million and $376 million, respectively, associated with these investments within income tax provision. The carrying value of our equity investments in these qualified affordable housing projects was $6.6 billion and $6.2 billion as of June 30, 2026 and December 31, 2025, respectively. We are periodically required to provide additional financial or other support during the period of the investments. Our liability for these unfunded commitments was $2.7 billion and $2.5 billion as of June 30, 2026 and December 31, 2025, respectively, and is largely expected to be paid from 2026 to 2029.