Credit-card concern Capital One Financial (COF: sentiment, chart, options) said today that it will acquire Bethesda, Maryland-based Chevy Chase Bank for $445 million in cash and 2.56 million shares, representing a total value of $75 million at Tuesday's closing price. Capital One bested such worthy competitors as Citigroup (C) and JPMorgan Chase (JPM) with its bid for Chevy Chase.

COF says the acquisition will add to operating earnings per share in 2009, and to net earnings per share in 2010. The purchase is expected to close in the first quarter of 2009, pending regulatory approval. Capital One will take a net credit mark of $1.75 billion for potential losses in Chevy Chase's loan portfolio.

Capital One CEO Richard Fairbank said of the deal, "This transaction will enhance our strong deposit base, providing us with greater scope and scale in key Mid-Atlantic banking markets." However, "the hidden message in there is that they need capital," said Robert Lutts, president and chief investment officer of Cabot Money Management. He translated the chief's comment for Reuters this morning, observing, "Capital One is in the wrong place right now ... Credit cards are going to be a really tough area. I believe they are really trying to shore up their balance sheet to weather the coming storm."

Today, COF is bouncing back from early losses to make its way into positive territory. At last check, the stock was up about 1% at $31.85. The shares recently bounced off long-term support in the 24 region, but potential resistance from the stock's 32-day moving average looms near the 33.50 neighborhood.