EagleBank and Fidelity & Trust Bank Merger Completed, Resulting in a $1.4 Billion Expanded Financial Services Organization
September 02 2008 - 6:00AM
PR Newswire (US)
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.
http://www.newscom.com/cgi-bin/prnh/20050927/EAGLEBANKLOGO
http://photoarchive.ap.org/ DATASOURCE: Eagle Bancorp, Inc.
CONTACT: Ronald D. Paul of Eagle Bancorp, Inc., +1-301-986-1800 Web
site: http://www.eaglebankmd.com/
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