Capital one customer service hours est8/13/2023 ![]() In good times, banks often pay more than 20 cents. McLean, Virginia-based Capital One will buy Chevy Chase Bank for $445 million in cash and 2.56 million shares, valued at $75 million based on Tuesday’s closing price.Ĭapital One said it would take a net writedown of $1.75 billion for potential losses in Chevy Chase Bank’s loan portfolio, which Merrill Lynch said could be “light, especially given the bank’s exposure to adjustable rate mortgages.”Īssuming that writedown is equal to about $1.1 billion after taxes, and adding the $520 million of cash and stock, as well as $225 million of restructuring costs, Capital One is paying about $1.85 billion for $11.6 billion of deposits, or about 16 cents for every dollar of deposits. banks are broadly looking to expand their branch networks to boost their reliance on stable funding from deposits as borrowing in debt markets becomes increasingly expensive.Ĭitigroup Inc C.N and JPMorgan Chase & Co JPM.N were also bidding for closely held Chevy Chase Bank, according to sources familiar with the matter. If there is one part of the financial business where you don’t want to be in the next 12 months, I think it’s credit cards.” “Capital One is in the wrong place right now. “The hidden message in there is that they need capital,” said Robert Lutts, president and chief investment officer of Cabot Money Management in Salem, Massachusetts. ![]() The cash and stock deal will allow Capital One to expand its reach in the affluent suburbs of Washington, while somewhat reducing its reliance on credit cards, where growth is slowing and credit losses are mounting.
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