Published:
Eagle Bancorp Receives Preliminary Approval Under Treasury Capital Purchase Program
BETHESDA, Md., Nov. 21 /PRNewswire-FirstCall/ -- Eagle Bancorp, Inc. (the
"Company") (Nasdaq: EGBN), the parent company of EagleBank, today announced
that it has received preliminary approval of its application to participate in
the Capital Purchase Program established by the United States Department of
the Treasury under the Emergency Economic Stabilization Act.
(Logo: http://www.newscom.com/cgi-bin/prnh/20050927/EAGLEBANKLOGO )
Under the program, the Company will be able to issue up to $38,235,000 of
preferred stock and warrants to purchase approximately $5,735,250 of Company
common stock to the Treasury.
The non-voting senior preferred shares to be issued to the Treasury will
pay a dividend of 5% annually for the first five years after issuance and 9%
annually after the fifth year, if they are not redeemed. Participation in the
program is subject to the Treasury Department's standard terms and conditions,
and the sale of preferred shares and warrants is subject to the completion and
review of necessary documentation. Although the Company currently intends to
participate in the program, it will continue to monitor and evaluate any
additional governmental requirements that may diminish the value of, or unduly
burden, participation in the program.
The Company is the holding company for EagleBank which commenced
operations in 1998. The Bank is headquartered inBethesda, Maryland, and
conducts full service commercial banking services through fifteen offices,
located inMontgomery County, Maryland,Washington, D.C. andFairfax County,
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
the Company's ability to successfully integrate the operations of Fidelity &
Trust 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.
CONTACT:
Ronald D. Paul
301.986.1800
SOURCE Eagle Bancorp, Inc.
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