Eagle Bancorp Receives $38.2 Million Investment Under Treasury Capital Purchase Program
05 Dezember 2008 - 10:30PM
PR Newswire (US)
BETHESDA, Md., Dec. 5 /PRNewswire-FirstCall/ -- Eagle Bancorp, Inc.
(the "Company") (NASDAQ:EGBN), the parent company of EagleBank,
announced that today it completed the sale and issuance of
$38,235,000 of a new series of its preferred stock to the United
States Department of the Treasury. The Treasury's investment is
made pursuant to the Capital Purchase Program established under the
Emergency Economic Stabilization Act. The Company also issued the
Treasury a Warrant to purchase 770,687 shares of the Company's
common stock at an exercise price of $7.44 per share. Ronald D.
Paul, Chairman of the Company stated, "I am truly pleased that we
have been selected to participate in the Capital Purchase Program.
This additional capital will enable us to maintain our strong
capital position, continue our course of profitable growth and meet
the loan demand from quality business borrowers in our community
markets. Although other banks may be cutting back on lending out of
uncertainty, or in order to shore up their balance sheet after
incurring losses, EagleBank remains open for business." Mr. Paul
also noted that, "Participation in the Capital Purchase Program,
which Treasury Secretary Paulson has stated is for healthy
institutions, may carry some burdens such as increased scrutiny by
regulators and others, but we are clearly used to this in the
banking industry. We are pleased to obtain this capital at a cost
which is lower and less dilutive than would otherwise be available
in the equity markets at this time. It is clearly in the best
interest of our shareholders and the communities we serve." The
non-voting senior preferred shares 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. The
Company is the holding company for EagleBank which commenced
operations in 1998. The Bank is headquartered in Bethesda,
Maryland, and conducts full service commercial banking services
through fifteen offices, located in Montgomery County, Maryland,
Washington, D.C. and Fairfax 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 DATASOURCE: Eagle Bancorp, Inc. CONTACT: Ronald
D. Paul of Eagle Bancorp, Inc., +1-301-986-1800 Web site:
http://www.eaglebankmd.com/
Copyright
Eagle Bancorp (NASDAQ:EGBN)
Historical Stock Chart
Von Jun 2024 bis Jul 2024
Eagle Bancorp (NASDAQ:EGBN)
Historical Stock Chart
Von Jul 2023 bis Jul 2024