Capital One Financial Corporation · NYSE:COF
Capital One Financial — Merger or Acquisition (December 2008)
10 slides from Capital One Financial's merger presentation, Dec 9, 2008
Slide 1: Acquisition of Chevy Chase Bank
Exhibit 99.2 Acquisition of Chevy Chase Bank December 4, 2008
Slide 2: Forward looking statements
Forward looking statements Please note that the following materials containing information regarding Capital One’s financial performance speak only as of the particular date or dates indicated in these materials. Capital One does not undertake any obligation to update or revise any of the informatio
Slide 3: Chevy Chase is a strategically and financially attractive acquisition
Chevy Chase is a strategically and financially attractive acquisition • A leading local banking franchise in one of the best markets* – $11.6 billion in deposits – #1 branch share, #1 ATM share, #5 deposit share – Attractive market • 9th largest MSA by population, with above average population growt
Slide 4: Transaction Summary
Transaction Summary Transaction Value* $520 Million Consideration Mix $445MM cash; $75MM COF stock Expected Close Q1 2009 Pro-forma Capital Ratios TCE of 5.4% and Tier 1 of approximately 12.9% As of 9/30/08 No shareholder approvals required Approvals Customary regulatory approvals *To the extent tha
Slide 5: Chevy Chase has a strong presence in the Washington, DC MSA
Chevy Chase has a strong presence in the Washington, DC MSA • $15.5B in assets • $11.6B in deposits (#5 in DC MSA) • 244 branches (#1 in DC MSA) • Over 1,000 ATMs (#1 in DC MSA) • Customer service and convenience oriented business and brand • Strong local affiliations/partnerships – Exclusive ATM pr
Slide 6: The metro Washington, DC MSA is among the most attractive local banking markets in the U.S.
The metro Washington, DC MSA is among the most attractive local banking markets in the U.S. M Top 10 MSAs by Population Population Growth 25 2008 30% 2000-2008 20 24% 15 18% 10 12% 5 6% National Avg. 0 0% New Los Chicago Dallas Phila- Houston Miami Atlanta Wash. Detroit New Los Chicago Dallas Phila-
Slide 7: With Chevy Chase we have several market leadership positions
With Chevy Chase we have several market leadership positions Local Deposit Market Share New York MSA New Orleans MSA Washington, DC MSA Deposits % Deposits % Deposits % ($B) Share ($B) Share ($B) Share 1. JPM Chase $97.3 19.7% 1. Capital One $7.6 29.5% 1. B of A $13.2 13.5% 2. Citi $55.9 11.3% 2. JP
Slide 8: We have taken a net credit mark of $1.75 billion
We have taken a net credit mark of $1.75 billion As of September 30, 2008 Balance Gross credit Gross credit Allocated net credit Loan Category ($MM) mark ($MM) mark (%) ALLL ($MM) mark ($MM) Option ARM 4,150 1,350 33% 163 1,187 Other mortgage 4,007 240 6% 27 213 Home Equity 1,458 87 6% 17 70 C&I 760
Slide 9: The Chevy Chase acquisition is financially attractive
The Chevy Chase acquisition is financially attractive • $125 million annually Cost Savings • Run-rate fully achieved by mid -2010 • Restructuring and transaction costs of $225 million, expensed in 2009 Merger Costs and 2010 IRR • Estimated 13%+ IRR • Accretive in 2009 to operating EPS (excluding res
Slide 10: Acquisition of Chevy Chase Bank
Acquisition of Chevy Chase Bank December 4, 2008
Capital One Financial — Merger or Acquisition (December 2008) on 6ix