Capital One Announces New President To Oversee Chevy Chase Bank Acquisition

The ubiquitous Chevy Chase Bank signs will be replaced in the fall by the Capital One name, the McLean-based institution said Friday as it announced a new mid-Atlantic president and several new officers in the Washington area.

The bank appointed a new team led by James Jackson to oversee the mid-Atlantic region and integrate the recently acquired Chevy Chase branches into its operations. He replaces longtime Chevy Chase executive Pat Clancy, who will serve in an advisory role as Capital One completes its takeover. A bank spokeswoman said the 247 Chevy Chase branches in the Washington region will be officially rebranded "Capital One" in the fall.

"Contractors are in the process of preparing the internal and external signage replacement in Chevy Chase Bank branches throughout the Mid-Atlantic by installing permanent Capital One Bank signs with temporary Chevy Chase Bank covers," spokeswoman Denise Kazmier said in a statement. "The temporary covers are scheduled to be removed in the fall during the brand change."

Kazmier said Capital One plans to introduce new products to the banks, but still "preserve the unique feel" of Chevy Chase.

In purchasing Chevy Chase in early 2009, Capital One is moving further with its strategy to expand from its credit card business into commercial banking. Its initial forays into commercial banking, involving the North Fork and Hibernia purchases, was rocky when several bank executives quit over what they said was Capital One's inability to meld the cultures.

Analysts, though, say Capital One apparently has learned from that experience and opted to move on the recent acquisition at a measured pace.

"They're to be commended for being careful about this. There have been some horror stories back in '90s acquisitions [involving other banks] that went too fast and were disastrous," said Bert Ely, an independent banking consultant.
ad_icon

"Computer systems didn't match," Ely added. "Customers had interruptions in basic banking -- getting deposits and accessing cash through the ATM."

In its earnings statement last month, Capital One said its Chevy Chase operations performed as expected. In its overall banking segment, average deposits rose 12.6 percent, to $21.9 billion, from 2009's final quarter.

The company said revenue in its domestic and international credit card segments declined.

But total charge-offs, or the unpaid debts that are recorded as losses for the firm, fell in the first quarter from the fourth quarter of 2009 as commercial, auto and retail banking performance improved, the company said. Those gains offset a higher charge-off rate on domestic credit cards.

Jackson, who was not available for comment, will oversee Capital One's banks and its community outreach programs involving philanthropy and employee volunteer programs, according to the company. He also will continue to serve in his previous position as executive vice president of branch distribution.

Before joining Capital One in 2009, Jackson worked for 25 years at Bank of America. Among his last jobs there was overseeing the Southeast region.

Capital One's new market presidents include:

-- Adam Ostrach, the District.

-- John Allen, Prince George's County.

-- Kimberly Conte, Fairfax and Loudoun counties.

-- David Dineen, Montgomery County.

-- Eric Lawrence, Alexandria and Arlington and southern Fairfax counties.