Capital One Financial Corporation is already a major credit card company. Now it wants to be a major retail bank as well, announcing it will acquire New York's North Fork Bancorporation in a stock and cash transaction valued at approximately $14.6 billion.
The combined company will be one of the 10 largest banks in the United States, based on deposits and managed loans, and the third-largest retail bank in the New York region, the nation's largest deposit market.
"North Fork is a great strategic fit with Capital One and brings balance and diversification to our company," said Richard D. Fairbank, Chairman and Chief Executive Officer of Capital One.
Capital One already has a small presence in retail banking. Its subsidiary, Hibernia National Bank, operates more than 300 branches in Louisiana and Texas.
North Fork, a bank holding company with operations in the greater New York region, provides a full range of financial products and services to its retail and commercial customers, including deposit products and consumer, business and mortgage loans, along with other services.
With approximately $36.6 billion in deposits, as of December 31, 2005, and 355 branch locations throughout New York, New Jersey and Connecticut, North Fork is the third-largest depository institution in the greater New York region.
The combined company will have deposits of more than $84 billion, a managed loan portfolio of more than $143 billion, more than 50 million customer accounts, and 655 branches.