MCLEAN, Va.--(BUSINESS WIRE)--Dec. 14, 2004--Capital One Financial
Corporation (NYSE:COF) today announced a definitive agreement under
which it will acquire eSmartloan, a leading online originator of home
equity loans and mortgages, from the National Bank of Kansas City and
eSmartloan management for $155 million in an all-cash transaction.
This agreement includes the purchase of a related escrow company from
The transaction will enhance Capital One's capabilities in the
growing US home equity market. Founded in January 2001, eSmartloan is
an online home equity originator with a diverse set of product
offerings. eSmartloan expects to originate more than 12,000 loans
representing more than $1 billion in volume in 2004.
"The acquisition of eSmartloan is another step in Capital One's
diversification and provides an attractive opportunity to further
broaden our consumer finance product offerings," said Richard D.
Fairbank, Chairman and Chief Executive Officer of Capital One.
eSmartloan's Chief Executive Officer, Lance Melber, will lead
Capital One's US home equity business after the transaction has been
finalized and report to Larry Klane, Capital One's Executive Vice
President, Global Financial Services.
Melber said, "This is the natural next step for our company to
continue to build on the success we have enjoyed over the past four
years. We believe that our superior technology and proven consultative
sales model makes us unrivaled in originating and processing our home
equity products. We look forward to driving our business to the next
level as an important part of Capital One's growing home equity
Klane said, "eSmartloan has succeeded in building a scalable
technology platform, a highly skilled sales team, and an outstanding
reputation for customer service and speed to close. By combining these
strengths with Capital One's powerful national brand, access to 47
million accounts, and expertise in direct marketing, we will enhance
the growth of our home equity lending business."
Under the terms of the agreement, eSmartloan will become a
subsidiary of Capital One, F.S.B. The transaction, which was approved
by the board of directors of Capital One and NBKC, is subject to
customary regulatory approvals and is expected to close in the first
quarter of 2005. The transaction, including the associated integration
costs, is not expected to have a material effect on Capital One's
earnings in 2005.
The company cautions that current expectations in this release for
earnings, synergies and strategy are forward-looking statements and
actual results could differ materially from current expectations due
to a number of factors, including competition in the secured mortgage
business, the company's ability to integrate operational and strategic
platforms, and general economic conditions affecting consumer income
and spending. A discussion of these and other factors can be found in
Capital One's annual reports and other reports filed with the
Securities and Exchange Commission, including, but not limited to,
Capital One's report on Form 10-K for the fiscal year ended December
About Capital One
Headquartered in McLean, Virginia, Capital One Financial
Corporation (www.capitalone.com) is a bank holding company whose
principal subsidiaries, Capital One Bank and Capital One, F.S.B.,
offer consumer lending products and Capital One Auto Finance, Inc.,
offers automobile and other motor vehicle financing products. Capital
One's subsidiaries collectively had 47.2 million accounts and $75.5
billion in managed loans outstanding as of September 30, 2004. Capital
One, a Fortune 500 company, is one of the largest providers of
MasterCard and Visa credit cards in the world. Capital One trades on
the New York Stock Exchange under the symbol "COF" and is included in
the S&P 500 index.
Based in Overland Park, Kansas, eSmartloan (www.esmartloan.com)
provides a diversified offering of full-service mortgage and home
equity products through its knowledgeable sales staff and innovative
website. eSmartloan is FDIC insured and operates as a division of
National Bank of Kansas City.
CONTACT: Capital One Financial Corporation
VP, Investor Relations
Director, Corporate Media
SOURCE: Capital One Financial Corporation