McLEAN, Va. — In revealing company-wide financials Wednesday, Capital One reported on a few key trends in its auto finance division.

For the second quarter, period-end automobile loans held for investment accounted for $19.22 billion, compared to $18.34 billion in the previous quarter. In the second quarter of last year, the company held $17.22 billion in auto loans.

Continuing on, the company revealed that average automobile loans held for investment for the quarter were $18.75 billion, compared to $18.03 billion in the previous quarter. For the second quarter of 2010, the company held an average of $17.3 billion in automobile loans.

The net charge-off rate for auto loans came in at 1.11 percent for the latest quarter, compared to 1.98 percent in the previous quarter. The highest charge-off rate over the past five quarters came in the third quarter of 2010 when it was at 2.71 percent.

Reviewing 30-plus day delinquency rates on auto loans, Capital One said this stood at 6.09 percent in the most recent quarter, compared to 5.79 percent in the prior quarter. The highest rate over the past five quarters came in the fourth quarter of last year at 7.58 percent.

Moving on, the non-performing asset rate for automobile loans came in at 0.49 percent, compared to 0.39 percent in the previous quarter and 0.64 percent in the fourth quarter of last year.

"As the economy continues to improve, we are seeing net charge-offs and delinquencies decrease substantially. That is partly a result of the improving economy, partly a result of improving auction prices that help our recoveries, but a lot of it has to do with the strong underwriting discipline we have had over the last few years," revealed Kevin Borgmann in a recent interview with SubPrime Auto Finance News.

"Like everyone else, we are seeing our collateral earn record prices at auction. We think that is primarily the result of constrained supplies of used cars, and that is a temporary effect. When new-car sales pick up, it will eventually increase the supply of used cars, as will fleet sales into the used market. So while we have benefited from higher used-car prices, we are not counting on that continuing. In fact, we include a substantial decline in used values into all our underwriting decisions and forecasts today," Borgmann added.

As for leasing, Borgmann said the company is currently not in this market. However, he did say it's something Capital One looks at from time to time and will continue to keep its eyes on.

The company is also looking to add both franchised and top independent dealers to its Diamond Dealer Program.

"At the same time, we are adding new dealers to our Diamond Program across the country. We see a lot of demand from dealers who hear about the Diamond Program from current Diamond dealers and want to be a part of it. Anyone interested in learning more about being a part of the Diamond Program should contact us through DealerTrack or RouteOne, and we will put them in touch with a local sales manager in their area."

Via this program, dealers gain exclusive benefits, such as full spectrum credit options, analytical muscle and "exceptional customer service," the president stressed.

"The most basic qualification for the program is being committed to a relationship with Capital One, and like any relationship, you need to build it from both sides," he pointed out.

Borgmann even boasted, "Our Diamond Dealers appreciate our ability to fund across the credit spectrum, and they are on the receiving end of the maximum amount of rate flexibility and exceptions that we offer in the market. Our broad underwriting, maximum flexibility and exclusive marketing programs allow our Diamond Dealers to sell more cars."

The company is also hiring new associates as well, those interested can visit www.capitalone.com/careers.

Overall Company Results

On Wednesday, Capital One Financial Corp. reported net income of $911 million, or $1.97 per diluted common share, compared with net income of $1 billion, or $2.21 per diluted common share for the first quarter.

Total revenue for the quarter was $4 billion, down $89 million, or 2 percent.

"Our second quarter performance demonstrates that Capital One remains well positioned to continue to deliver attractive and sustainable results, including loan growth, deposit growth, strong returns and robust capital generation," said Richard Fairbank, Capital One's chairman and chief executive officer.

"Recently, we announced our definitive agreement to acquire ING Direct. This is a game-changing transaction that generates attractive financial results immediately, as well as compelling value creation over time. ING Direct has built a very special franchise — bringing great value and exceptional service to its customers — and we're committed to continuing that.

The company went on to point out that period-end loan balances increased $4.9 billion, or 4 percent, driven largely by the addition of the $3.7 billion Kohl's portfolio in the domestic card segment, as well as growth in the auto finance and commercial banking divisions.