BETHESDA, Md., Sept. 2 /PRNewswire-FirstCall/ -- Eagle Bancorp, Inc.
("Eagle") (Nasdaq: EGBN), the parent company of EagleBank, today announced
that the acquisition of Fidelity & Trust Financial Corporation, and the merger
of Fidelity & Trust Bank into EagleBank, became effective on August 31, 2008.
(Logo: http://www.newscom.com/cgi-bin/prnh/20050927/EAGLEBANKLOGO )
As a result of the merger, EagleBank has aggregate assets of approximately
$1.4 billion, and loans and deposits each in excess of $1.1 billion. The bank
will now have 15 offices in the Washington, DC metropolitan area, including 9
in Montgomery County, Maryland, 5 in the District of Columbia and one in
Northern Virginia.
"This transaction brings together two banks that have had immense success
in the Washington metropolitan region over the last decade," said Ronald D.
Paul, who will remain as Chairman and CEO of Eagle Bancorp and EagleBank. "We
are excited to be implementing the best practices of both banks and enhancing
our position in the market by providing an expanded capacity to help local
businesses grow, including a larger lending limit, and providing our customers
with continued access to local decision makers."
"I have been involved in many mergers before," said Robert Pincus, former
Board Chairman of Fidelity & Trust Bank, who is now Vice Chairman of the
combined entity, "and I have never seen two banks that were as compatible in
their goals, employee culture and focus as EagleBank and Fidelity. Both banks'
success has been based on delivering superior customer service to the local
business community. I am excited about the additional benefits that a larger,
stronger EagleBank will provide for our customers."
At the effectiveness of the acquisition, each share of Fidelity common
stock was converted into 0.3894 shares of Eagle common stock. As a result of
the acquisition, Eagle issued 1,638,212 shares of Eagle common stock, not
including 196,090 shares of common stock issuable upon the exercise of options
to acquire Fidelity common stock, as adjusted in accordance with the Agreement
and Plan of Merger. The value of the transaction is $13.1 million as per the
terms of the Agreement and Plan of Merger.
As previously announced on July 25, 2008, Eagle plans to declare a 10%
stock dividend after the merger, in order that the former Fidelity
shareholders would be eligible to receive the dividend. Eagle expects to
establish the record and payables dates for the 10% stock dividend shortly.
About Eagle Bancorp, Inc.
Eagle Bancorp, Inc. is the holding company for EagleBank which commenced
operations in 1998. The bank is headquartered in Bethesda, Maryland, and
conducts full service banking services through fifteen offices, located in
Montgomery County, Maryland, Washington, D.C. and Northern Virginia. The
Company focuses on building relationships with businesses, professionals and
individuals in its marketplace.
Forward looking Statements: This press release contains forward looking
statements within the meaning of the Securities and Exchange Act of 1934, as
amended, including statements of goals, intentions, and expectations as to
future trends, plans, events or results of Company operations and policies and
regarding general economic conditions. In some cases, forward-looking
statements can be identified by use of words such as "may," "will,"
"anticipates," "believes," "expects," "plans," "estimates," "potential,"
"continue," "should," and similar words or phrases. These statements are based
upon current and anticipated economic conditions, nationally and in the
Company's market, interest rates and interest rate policy, competitive factors
and other conditions which by their nature, are not susceptible to accurate
forecast and are subject to significant uncertainty. Because of these
uncertainties and the assumptions on which this discussion and the
forward-looking statements are based, actual future operations and results in
the future may differ materially from those indicated herein. Readers are
cautioned against placing undue reliance on any such forward-looking
statements. The Company's past results are not necessarily indicative of
future performance.
SOURCE Eagle Bancorp, Inc.
Contact: Ronald D. Paul of Eagle Bancorp, Inc., +1-301-986-1800