Another bank with a reputation for being well run says that Subprime is affecting its bottom line.

CHARLOTTE, North Carolina: Capital One Financial Corp. on Thursday reported a 24 percent decrease in first-quarter earnings and lowered its full-year profit forecast, citing revised expectations for its mortgage banking business.
The McLean, Virginia-based company, a credit card issuer that continues to expand into retail banking, provided revised earnings for 2007 of $7 to $7.40 per share. In January, Capital One gave guidance between $7.40 and $7.80 per share.
“This is clearly a very challenging time for our mortgage banking business,” Richard D. Fairbank, Capital One’s chairman and chief executive officer, told analysts on a conference call.
Capital One pointed to last year’s acquisition of subprime lender North Fork, which operates banks in New York, New Jersey and Connecticut.