Capital One Financial Corp. and Chevy Chase Bank have signed a definitive agreement under which Capital One will acquire Chevy Chase in a cash and stock transaction valued at approximately $520 million.
According to the companies, with the addition of Chevy Chase's $11 billion in deposits, Capital One – the largest retail depository institution headquartered in the Washington, D.C. region – will also have the largest branch and ATM network in the area. Under the agreement, Capital One will purchase Chevy Chase for $445 million in cash and 2.56 million Capital One shares, valued at $75 million, based on the closing price of Capital One stock as of Dec. 2.Â
Like most banks with mortgage loan portfolios, Chevy Chase says it has in place a sensitive and well-developed loan modification program designed to achieve affordable and sustainable mortgage payments for borrowers in need.
The transaction is subject to customary regulatory approval and is expected to close in the first quarter of 2009.
Source: Capital One