For immediate release

The Federal Reserve Board announced today its approval of the application of Eagle Bancorp, Inc., to become a bank holding company by acquiring all the voting shares of EagleBank, a de novo bank, both of Bethesda, Maryland. The Board also approved the application of EagleBank to become a member of the Federal Reserve System and to establish branches at 8677 Georgia Avenue, Silver Spring, Maryland, and 110 North Washington Street, Rockville, Maryland. Attached is the Board's Order relating to these actions.

Eagle Bancorp, Inc. Bethesda, Maryland Order Approving Formation of a Bank Holding Company, Membership in the Federal Reserve System, and the Establishment of Branches

Eagle Bancorp, Inc. ("Eagle") has requested the Board's approval under section 3(a)(1) of the Bank Holding Company Act ("BHC Act") (12 U.S.C. § 1842(a)(1)) to become a bank holding company by acquiring all the voting shares of EagleBank, Bethesda, Maryland ("Bank"), a de novo bank chartered under the laws of Maryland. Bank also has applied pursuant to section 9 of the Federal Reserve Act (12 U.S.C. § 321) to become a member of the Federal Reserve System and to establish branches at 8677 Georgia Avenue, Silver Spring, Maryland, and 110 North Washington Street, Rockville, Maryland. Notice of the applications, affording interested persons an opportunity to submit comments, has been published (59 Federal Register 35,122 (1994)) and given in accordance with applicable law. The time for filing comments has expired, and the Board has considered the applications and all comments received in light of the factors set forth in section 3 of the BHC Act and the Federal Reserve Act. Eagle is a newly formed nonoperating corporation that would acquire Bank. The addition of a new bank in the relevant banking market would increase the number of alternative sources of banking products and services available to customers in the market and increase competition. The Board previously has stated that the promotion of competition through de novo entry is a positive consideration in an application under section 3 of the BHC Act.1 Accordingly, the Board concludes that consummation of the proposal would not have a significantly adverse effect on competition or on the concentration of banking resources in any relevant banking market, and that competitive considerations are consistent with approval. The Board has reviewed examination reports and other supervisory information, including information regarding institutions with which Eagle's principals previously were affiliated. In light of all the facts of record, the Board concludes that the financial and managerial resources and future prospects of Eagle and Bank, the convenience and needs of the communities to be served, and other supervisory factors that the Board is required to consider under section 3 of the BHC Act, are consistent with approval of the proposal. In addition, Bank has applied under section 9 of the Federal Reserve Act to become a member of the Federal Reserve System and to establish branches. The Board has considered the factors it is required to consider when reviewing applications pursuant to section 9 of the Federal Reserve Act and finds those factors to be consistent with approval. Based on the foregoing and all the facts of record, the Board has determined that these applications should be, and hereby are, approved. The Board's approval is expressly conditioned on compliance with all the commitments made by Eagle in connection with the applications. For purposes of this action, the commitments and conditions relied on by the Board in reaching this decision are deemed to be conditions imposed in writing by the Board in connection with its findings and decision, and as such, may be enforced in proceedings under applicable law. This transaction shall not be consummated before the fifteenth calendar day following the effective date of this order, or later than three months following the effective date of this order, and Bank shall be open for business within six months following the effective date of this order, unless such periods are extended for good cause by the Board or by the Federal Reserve Bank of Richmond, acting pursuant to delegated authority.

By order of the Board of Governors,2 effective June 1, 1998. (signed) Robert deV. Frierson Robert deV. Frierson Associate Secretary of the Board

Footnotes 1 See Wilson Bank Holding Company, 82 Federal Reserve Bulletin 568 (1996). 2 Voting for this action: Chairman Greenspan, Vice Chair Rivlin, and Governors Meyer, Ferguson, and Gramlich. Absent and not voting: Governors Kelley and Phillips.

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1998 Orders on banking applications