Eagle Bancorp (EGBN) in Bethesda, Md., has agreed to buy Virginia Heritage Bank (VGBK) in Tysons Corner, Va.

Eagle said in a press release late Monday that it will pay about $183 million in cash and stock for the $917 million-asset Virginia Heritage in a deal that is expected to close in the fourth quarter. Virginia Heritage also has six branches, $716 million in loans and $737 million in deposits.

The $3.8 billion-asset Eagle said it will sell $55 million in subordinated debt to maintain desired capital levels, adding that the merger's completion is expected to coincide with new regulatory capital rules. The company noted that the acquisition is not contingent on raising additional capital.

"We are extremely excited about the proposed acquisition … and the transformative opportunities the combination creates for us in northern Virginia," Ronald Paul, Eagle's chairman and chief executive, said in the release. "The addition of [Virginia Heritage's] team, combined with our own organic growth, gives EagleBank the ability to be a major factor in this dynamic market, long one of our principal objectives."

David Summers, Virginia Heritage's chairman and chief executive, is expected to join Eagle's board.

Sandler O'Neill and Holland & Knight advised Virginia Heritage. Houlihan Lokey Capital and BuckleySandler advised Eagle, while Keefe, Bruyette & Woods provided Eagle's board with a fairness opinion.

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