BETHESDA, Md. and CHANTILLY, Va., Nov. 28, 2011 /PRNewswire/ -- On November 28, 2011, Eagle Bancorp, Inc. ("Eagle") (NASDAQ: EGBN) and Alliance Bankshares Corporation ("Alliance") (NASDAQ: ABVA) announced that they have mutually agreed to terminate their agreement to merge.
Subsequent to the execution of the merger agreement, Eagle and Alliance developed irreconcilable differences of opinion regarding a number of matters related to the merger and merger agreement. Accordingly, the boards of both parties felt it was in the best interests of their respective shareholders to terminate the merger agreement and pursue other strategies.
William E. Doyle, Jr., President and CEO of Alliance and Alliance Bank noted, "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."
Ronald D. Paul, Chairman and CEO of Eagle noted, "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."Eagle and Alliance have entered into a merger termination agreement providing, among other things, that neither party will incur any termination fee due to the termination of the merger and mutually releasing the parties from any claims of liability to one another relating to the merger transaction. In addition, the parties have acknowledged that Alliance may solicit and consummate transactions with third parties without restrictions, conditions or fees.