Bethesda-Based Eagle Bancorp, Inc (Nasdaq:EGBN) says it will now focus on an organic growth strategy after the announcement that the planned purchase of Chantilly, Va-based Alliance Bankshares Corporation (Nasdaq:ABVA) and its branches is no longer in process.
Back on July 27, 2011, Eagle Bancorp announced the merger agreement and was seen as a way to accelerate growth in the northern Virginia market. Back then Alliance had approximately $536 million in assets and $412 million in deposits.
According to both companies, the merger fell apart due to "irreconcilable differences of opinion regarding a number of matters related to the merger and merger agreement."
"We continue to feel that Alliance's shareholders are best served by pursuing an affiliation with a strategic partner in order to gain scale, strengthen our capital base and generate attractive future returns for our shareholders. Accordingly, we intend to continue working with our financial advisor to evaluate our strategic alternatives." stated William E. Doyle, Jr., President and CEO of Alliance and Alliance Bank.
Eagle Bancorp, Inc the larger of the two banks with most branches in Maryland and over $3.22 billion in assets, is still in the process of expanding in northern Virginia with the opening of two new branches.
"While we are disappointed that this long process has not turned out as we at Eagle had originally hoped, we wish Alliance the best in its future efforts. We are confident that Eagle will be able to successfully continue its organic growth in the Northern Virginia market, including with two new branches, in Reston and Merrifield, within the next year." stated Ronald D. Paul, Chairman and CEO of Eagle Bancorp.
The two banks have agreed to lay aside any termination fees or liability claims.