Chevy Chase Bank on the cards for Citigroup

Citigroup Inc (NYSE:C) are in talks to buy Chevy Chase Bank (NYSE:CCX-C) according to reports in the WSJ which says that Citigroup is not the only bidder wanting to buy the Bethesda, Md-based bank, reported to have $14.9 billion in assets, however it’s unclear if Citibank will win the bid and secure the deal.

Chevy Chase Bank has felt the pressure of the worsening property market decline, with its domestic property loans to the value of $420 million or around 4 percent being in a non-accrual status.

In the second quarter of this year Chevy Chase did manage to gain from the first quarter loss and posted profits of $2.2 million. To cut holdings and operational costs Chevy Chase ended its business with in-store banking at Giant Food, reduced opening hours in some branches to cut staff costs and put the Lowes Island golf club on the market for sale.

Source: Bizjournals