Capital One Buying Chevy Chase Bank for $520M

MCLEAN, Va. – Capital One Financial says it will buy Chevy Chase Bank for about $520 million in cash and stock.

Capital One will buy the regional bank using $445 million in cash and 2.56 million Capital One shares valued at $75 million, or about $29.30 per share.

Chevy Chase bank has about $11 billion in deposits, with branches in Maryland, Virginia and Washington, D.C. Capital One has about $98.9 billion deposits.

McLean, Va.-based Capital One says the deal will boost operating earnings in 2009.