Capital One Sweeps Up Chevy Chase

Chevy Chase Bank had a line of suitors eyeing its 739 branches, including limping Citigroup, but the end Capital One Financial took the bride with a $520 million cash-and-stock deal. The acquisition is slated for completion in the first quarter of 2009. As a result of the agreement, Capital One will take a $1.75 billion net credit mark against potential losses on Chevy Chase loans. Chevy Chase’s $11 billion in deposits will bring Capital One’s total deposit nugget to more than $110 billion. And the combined company’s managed loan portfolio will exceed $159 billion. Chevy Chase shareholders will retain ASB Capital Management and the bank’s headquarters building.