Capital One Completes Acquisition of Chevy Chase Bank
Capital One Financial Corporation announced that it has completed its acquisition of Chevy Chase Bank. With the closing of the transaction and the addition of Chevy Chase Bank’s $13 billion in deposits, Capital One is now the largest consumer and commercial banking institution headquartered in the Washington, DC region.
Headquartered in Bethesda, Maryland, Chevy Chase Bank has the largest branch network in the Washington, DC metropolitan area, providing a broad range of deposit and lending services for consumer, commercial, and small business customers. The bank also maintains the largest ATM network in the area.
“With the addition of Chevy Chase Bank to our company, we are combining the strength of national scale lending with customer-focused excellence in local scale banking,” said Richard D. Fairbank, Chairman and Chief Executive Officer of Capital One. “Chevy Chase Bank is a local banking icon with a strong deposit base in one of the most attractive local markets in the United States. It provides us with greater scope and scale across the Mid-Atlantic region. I am pleased to welcome Chevy Chase Bank’s experienced management team and talented associates to Capital One.”
“The Chevy Chase Bank team has a proven ability to compete and win in the Washington, DC banking market, and they have a great track record of serving their customers and communities,” said Lynn Pike, president of Capital One Bank. “Our overarching goal will be to maintain the great customer relationships that Chevy Chase Bank has built over the last 40 years. Customers across the Washington, D.C. area will continue to experience the best that banking has to offer — personal service, convenience, great products — and a company that is committed to its employees and to our shared local community. We want to make what is already a great local bank even better.”
“With Capital One, we are joining forces with a great national brand and a strong financial institution that respects and shares the long tradition of customer and community service that is the hallmark of Chevy Chase Bank,” said B. Francis Saul II, founder of Chevy Chase Bank. “The combined strengths of our two companies will greatly benefit our customers, communities and talented banking associates across the Washington, D.C. metropolitan area.”
Capital One Financial Corporation is a financial holding company whose subsidiaries collectively had $109 billion in deposits and $147 billion in managed loans outstanding as of December 31, 2008. Capital One Bank is a diversified bank which, prior to the acquisition of Chevy Chase Bank, maintained approximately 740 locations primarily in New York, New Jersey, Louisiana, and Texas offering a broad spectrum of financial products and services to consumers, small businesses and commercial clients. Chevy Chase Bank is the largest locally-based banking company in the Washington metropolitan area. Chevy Chase Bank was founded in 1969 by B. Francis Saul II and has deep connections with the Washington, D.C. community.
Capital One and Chevy Chase Bank announced the transaction in December 2008.
Customers to Experience Minimal Disruption and Greater Future Offerings
The transaction is expected to have minimal impact on customers. Chevy Chase Bank will continue to offer its broad spectrum of products and services to both consumer and commercial customers, and Chevy Chase Bank customers can continue to bank as usual through the bank’s extensive branch and ATM network, by phone, or using Chevy Chase Bank’s online banking service, which can be accessed through www.chevychasebank.com.
“Capital One and Chevy Chase Bank share a customer-centric philosophy and a common dedication to personalized service,” Pike said. “While the Chevy Chase Bank name will eventually change to Capital One Bank, continuity of service will be key and our shared values will continue to drive the bank.”
Continued Community Engagement
“The Washington metropolitan region has been Capital One’s home base for more than a decade,” said Pike. “Like Chevy Chase Bank, Capital One has always maintained a strong commitment to the development of the communities where we live and work, and we look forward to our local leaders driving this vision and tradition of community engagement.”
Redemption of Chevy Chase Bank and Chevy Chase Preferred Capital Corporation Issuances
Additionally, Chevy Chase Bank announced today that the redemption date for its 8 percent Noncumulative Perpetual Preferred Stock, Series C (CCX-PrC), the 6-7/8 percent Debentures due 2013 issued by Chevy Chase Bank pursuant to an Indenture, dated December 2, 2003, by and between Chevy Chase Bank and Wells Fargo Bank Minnesota, N.A., and the 10-3/8 percent Noncumulative Exchangeable Preferred Stock, Series A (CCP-PrA), issued by Chevy Chase Bank’s REIT subsidiary, Chevy Chase Preferred Capital Corporation, will be March 30, 2009. The redemption price for the Series C Preferred Stock will be $25.00 per share, plus the quarterly accrued and unpaid dividend (whether or not declared) to March 30, 2009, the redemption price for the Debentures will be 103.4375 percent of the aggregate principal amount of the outstanding debentures, plus accrued and unpaid interest to, but not including, March 30, 2009 and the redemption price for the Series A Preferred Stock will be 103.112 percent of the $50 liquidation preference, plus the quarterly accrued and unpaid dividend (whether or not declared) to March 30, 2009. Notices of redemption including instructions for the surrender of the securities will be mailed to holders on February 27, 2009. For additional information on redemption of the debentures, holders should contact the Trustee, Wells Fargo Bank, N.A., Corporate Trust Operations, MAC N9303-121, 6th Street & Marquette Avenue, Minneapolis, MN 55479, Telephone: 800-344-5128. For additional information on redemption of either series of preferred stock, stockholders should contact the paying agent, Wells Fargo Shareowner Services, Corporate Actions Department, P.O. Box 64858, St. Paul, MN 55164-0858, Telephone: 877-262-8260.
Source: Capital One Financial Corporation; Chevy Chase Bank