Capital One's ( COF) third-quarter earnings narrowly missed analyst estimates, as credit quality continued to decline. The McLean, Va.-based firm reported quarterly net income of $374.1 million, or $1 a share, vs. a loss of $81.6 million, or 21 cents a share, in the third quarter of last year. Profit from continuing operations slid by more than half to $385.8 million, or $1.03 a share. As the credit crisis intensified last summer, Capital One shuttered its wholesale mortgage arm, which it inherited when it bought North Fork Bancorp in 2006, and took an $860 million charge in the year-earlier quarter to clean up the mess. Analysts, according to Thomson Reuters, expected the consumer finance company would make $1.01 a share for the quarter. In recent after-hours trading, shares were down fractionally to $38.80. The company added $208.6 million to its allowance for loan losses, bringing its total allowance to $3.5 billion. Capital One says the addition is "consistent with an outlook of $7.2 billion in managed charge-offs through the third quarter of 2009." Within Capital One's national lending segment, its main credit card arm, managed charge-offs rose 18 basis points from the second quarter to 5.85%, while delinquencies rose 56 basis points to 5.43%. "Against the backdrop of increasing economic headwinds and unprecedented change in the financial services landscape, Capital One continues to deliver profits and generate capital," Chairman and CEO Richard Fairbank said in a statement. "But we are not complacent. Based on what we are seeing in the world around us, we are significantly increasing the intensity of our efforts to aggressively manage the company for the benefit of investors and customers through the current downturn."