Exhibit 99.1

Press Release:
SOURCE: PAB Bankshares, Inc.

                  PAB BANKSHARES, INC. AND EAGLE BANCORP, INC.
                            SIGN DEFINITIVE AGREEMENT

VALDOSTA,  GA.,  July  1/PRNewswire/  -- PAB  Bankshares,  Inc.  (Amex:  PAB) in
Valdosta,  Georgia  and Eagle  Bancorp,  Inc.  of  Statesboro,  Georgia  jointly
announced  that they have signed a definitive  agreement to merge Eagle Bancorp,
Inc. into PAB  Bankshares,  Inc.  Eagle  Bancorp,  Inc. is the one-bank  holding
company  for Eagle  Bank & Trust in  Statesboro.  PAB  Bankshares,  Inc.  is the
Georgia multibank holding company for The Park Avenue Bank in Valdosta, Georgia,
Farmers and Merchants Bank in Adel,  Georgia,  First Community Bank of Southwest
Georgia and Bainbridge National Bank in Bainbridge, Georgia.

Under the terms of the agreement,  Eagle  shareholders will receive one share of
PAB common stock for each share of Eagle common  stock.  Based on PAB's  closing
stock  price of $22.625 on June 30,  1998,  the  transaction  would be valued at
approximately  $20.5 million.  The merger,  which is anticipated to be accounted
for as a pooling of interests,  is expected to be  consummated  before  year-end
1998,  pending  approval of Eagle  stockholders  and regulatory  authorities and
other  customary  conditions  of closing.  The  transaction  is expected to be a
tax-free  reorganization for federal income tax purposes.  PAB intends to retain
the name,  charter,  board of directors  and  management  of Eagle Bank & Trust.
After the transaction is completed,  combined PAB assets will  approximate  $500
million.

PAB Bankshares, Inc. common stock is traded on the American Stock Exchange under
the ticker symbol PAB.