Eagle Bancorp to price $30 million convertible perpetual preferreds

By Rebecca Melvin

New York, July 25 - Eagle Bancorp Inc. plans to offer of up to $30 million of non-cumulative convertible perpetual preferred stock in a registered deal in the third quarter, according to a news release.

The offering is expected to be made primarily to the community bank's shareholders following a pending merger with Fidelity & Trust Financial Corp.

The additional capital provided by the offering will be used to support the continued growth of subsidiary EagleBank following completion of the Fidelity & Trust transaction. It is intended that the preferred stock qualify as tier one capital for regulatory purposes, the company said.

The company also said that its board of directors has determined that in order to further strengthen capital, it will discontinue cash dividend payments on its common stock. It announced plans to declare a 10% stock dividend after the completion of the Fidelity & Trust transaction.

"EagleBank is a steadily growing, profitable company. It is seeing significant asset and market share growth opportunities both as a result of the Fidelity transaction and the disruption in the market and business banking relationships caused by the current economic conditions," chairman and chief executive Ronald Paul said in the news release.

Based in Bethesda, Md., Eagle Bancorp is the parent company for EagleBank community bank.

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