Eagle in Maryland to Raise $70M to Exit SBLF

Eagle Bancorp in Bethesda, Md., is looking to raise funds to exit the Small Business Lending Fund.

The $5.2 billion-asset company disclosed in a Monday regulatory filing that it will sell 1.9 million shares of common stock. Though Eagle did not provide a selling price, the offering could bring in more than $70 million based on the company's closing price Friday.

Sandler O'Neill, serving as the offering's underwriter, will have a 30-day option to buy an additional 285,000 shares of the company's common stock to cover over-allotments.

Net proceeds will be used to pay back $71.9 million of the company's outstanding preferred stock issued to the SBLF. Any remaining funds will support organic growth and future acquisitions.

Eagle Bancorp has 23 branches in Maryland and Virginia, according to the Federal Deposit Insurance Corp.