MCLEAN, Va., Feb. 27 /PRNewswire-FirstCall/ -- Capital One Financial
Corporation (NYSE: COF) today 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.
Forward looking statements
The company cautions that its current expectations in this release and the
company's plans, objectives, expectations, and intentions are forward-looking
statements and actual results could differ materially from current
expectations due to a number of factors, including: general economic
conditions in the U.S., the UK, or the company's local markets, including
conditions affecting consumer income and confidence, spending, and savings
which may affect consumer bankruptcies, defaults, charge-offs, deposit
activity and interest rates; changes in the labor and employment market;
changes in the credit environment; the company's ability to execute on its
strategic and operational plans; competition from providers of products and
services that compete with the company's businesses; increases or decreases in
the company's aggregate accounts and balances, or the growth rate and/or
composition thereof; changes in the reputation of or expectations regarding
the financial services industry or the company with respect to practices,
products or financial condition; financial, legal, regulatory, legislative,
tax or accounting changes or actions, including with respect to any litigation
matter involving the company; and the success of the company's marketing
efforts in attracting or retaining customers. A discussion of these and other
factors can be found in the company's annual report on Form 10-K for the
fiscal year ended December 31, 2008.
About Capital One
Capital One Financial Corporation (www.capitalone.com) 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.
Headquartered in McLean, VA, Capital One has approximately 740 locations
primarily in New York, New Jersey, Texas, and Louisiana. Its principal
subsidiaries, Capital One, N.A. and Capital One Bank (USA), N. A., offer a
broad spectrum of financial products and services to consumers, small
businesses and commercial clients. A Fortune 500 company, Capital One trades
on the New York Stock Exchange under the symbol "COF" and is included in the
S&P 100 index.
About Chevy Chase Bank
Chevy Chase Bank is the greater Washington region's largest locally-owned
banking institution providing a complete array of financial products and
services to consumers and businesses in Maryland, Virginia, and the District
of Columbia. The Bank, which is headquartered in Bethesda, Maryland, has
approximately 250 branches and over 1,000 ATMs, more than anyone else in the
greater Washington market. Chevy Chase Bank currently has over $16 billion in
assets and services over 1 million customers. For more information about Chevy
Chase Bank, please visit chevychasebank.com.
SOURCE: Capital One Financial Corporation; Chevy Chase Bank
CONTACT: Diana Don for Capital One Financial Corporation
+1-212-580-0161
Web Site:
http://www.capitalone.com