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                                                                    Exhibit 10AN

                                    SUBLEASE



THIS SUBLEASE is made this 16th day of February 1995, between HOUSEHOLD Bank,
f.s.b. (hereinafter called "Landlord"), Prospect Heights, Illinois and Palmer
National Bancorp Inc., (hereinafter called "Tenant").

                                WITNESSETH, THAT:

1.   DESCRIPTION. Landlord leases to Tenant the following described premises,
     (hereinafter termed "Premises"), on the terms set forth herein to be used
     and occupied only for the purposes as permitted under the Overlease, and
     for no other purpose whatsoever without Landlord's prior written
     approval, in the City of Rockville, County of Montgomery, and State of
     Maryland, consisting of approximately 2,151 square feet of second floor
     space and commonly known as Suite 240 6110 Executive Boulevard Rockville,
     Maryland 20852. The location of the floor space leased hereunder is
     outlined in red and is, together with the dimensions of the space set forth
     on the Layout Plat, attached hereto and made a part hereof as Exhibit 1.


2.   TERM. Tenant shall occupy the Premises from the commencement date, and
     ending November 30, 1998. Landlord and Tenant shall duly execute a
     commencement letter setting forth the actual commencement upon Tenant's
     occupancy.

     The foregoing notwithstanding, this sublease is contingent upon Tenant
     obtaining all necessary regulatory and other approvals and licenses
     required in connection with its intended operation of a mortgage banking
     business (including residential mortgages) ("Regulatory Conditions").
     Tenant shall commence the licensing/approval process promptly following the
     full execution hereof and shall use diligence in completing same. Each of
     Landlord and Tenant shall have the right to terminate this sublease by
     written notice to the other in the event that Tenant has not notified
     Landlord, on or before sixty (60) days following Tenant's receipt of two
     fully executed originals hereof, that the Regulatory Conditions have been
     satisfied or waived.

3.   BASE RENT. Tenant, in consideration of this lease, covenants to pay the sum
     of $2,486.20 in equal monthly installments on the first day of each month
     of the term to Landlord at:

                            Household Bank, f.s.b.
                            [1352 A Charwood Road]           2700 Sanders Road
                            [P.0 Box 739]                  Prospect Heights, IL
                            [Hanover, Maryland 21076]                      6007
                            [Attn: Property Management]  Attn: Leasing, License
                                                                 & Contracts

     Rental commencement for this lease will begin effective Sixty days (60)
     after the term commencement date. Base rental is subject to increase
     effective December 1 of each calendar year. Said increase shall be based
     upon 30% of the CPI-W increase from the previous year.

4.   SECURITY DEPOSIT. Tenant agrees to pay Landlord the sum of $2,486.20 upon
     execution of this lease. Landlord shall apply $2,486.20 towards the first
     month's rent.

5.   ASSIGNMENT OR SUBLETTING. Tenant shall not voluntarily or involuntarily
     sublet, assign or transfer this lease; the Premises, or any part thereof
     without Landlord's and Overlandlord's prior written consent.

     Landlord's consent shall not be unreasonably withheld, conditioned or
     delayed, [and shall be deemed given if not denied by written notice
     received by Tenant within fifteen (15) business days following Landlord's
     receipt of Tenant's written]
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     request thereof.] Landlord shall use all reasonable efforts to promptly
     obtain any required Overlandlord consent.


6.   OVERLEASE. This sublease is subject and subordinate to all terms,
     conditions and covenants of the Overlease (other than paragraphs 2, 3,
     8.4, 31, and 32) and its amendments between Building No. 7 Associates, a
     Maryland Joint Venture as Landlord (hereinafter called "Overlandlord"),
     to Household Bank, f.s.b. as Tenant for a term beginning December 1, 1993,
     and ending November 30, 1998, and is not effective until written consent of
     Overlandlord is hereto obtained. A copy of the Overlease is attached
     hereto and made a part hereof as Exhibit 2. Landlord will diligently pursue
     obtaining Overlandlord's approval as soon as practical. Notice of
     Landlord's receipt of Overlandlord's approval will be provided to Tenant
     upon full execution of this sublease if then in hand, or within 5 days of
     its receipt if later obtained.

     Landlord shall use all reasonable efforts to promptly obtain any required
     Overlandlord consents, approvals, or the like at any time requested by
     Tenant (e.g., alterations). Landlord shall not modify or otherwise take or
     omit to take any action under the Overlease which would have an adverse
     impact upon Tenant's use and occupancy of the Premises for the term, and
     according to the terms, herein demised. Landlord agrees at Tenant's request
     to enforce the terms of the Overlease or, if requested by Tenant, Tenant
     shall have the right to enforce same in the name if Landlord (Landlord
     hereby designating Tenant as its agent for such purpose). Except as
     otherwise expressly and directly provided in this Sublease, all consent,
     approvals and the like required from Landlord hereunder shall not be
     unreasonably withheld, conditioned or delayed and shall be deemed given if
     not denied by written notice received by Tenant within fifteen (15)
     business days following Landlord's receipt of Tenant's written request
     therefor.

7.   TENANTS ALTERATIONS. Intentionally omitted.

8.   CONDITIONS OF PREMISES. Taking possession of Premises by Lessee shall be
     evidence against Tenant that the demised Premises were in good and
     satisfactory condition when possession was made.

9.   TERMINATION. At the end of this lease by lapse of time or otherwise, Tenant
     shall yield up immediate possession of the Premises and all equipment
     located therein to Landlord, except those fixtures which Tenant has the
     right to remove pursuant to Paragraph 19 of this lease, all in a clean and
     sightly condition and in good working order and repair, normal wear and
     tear excepted.

10.  MAINTENANCE, SERVICES, UTILITIES, REPAIRS. During this lease, the party as
     designated below, shall, at its sole expense, pay all of the charges for
     and perform, supply, repair and replace the items in the following list:

                (Insert "Tenant", "Landlord" or "Overlandlord")

<TABLE>
<CAPTION>
<S>            <C>                                         <C>
     A.        Gas or Fuel Oil                             Overlandlord
     B.        Electricity                                 Overlandlord
     C.        Water                                       Overlandlord
     D.        Sewer                                       Overlandlord
     E.        Janitorial Service                          Overlandlord
     F.        Exterior Window Washing                     Overlandlord
     G.        Trash Removal                               Overlandlord

     H.        Parking and Common Area                     Overlandlord
                Cleaning, Repair, Snow
                Removal and Lighting

     I.        Sidewalk - Cleaning, Snow                   Overlandlord
                Removal and Repair
</TABLE>
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<TABLE>
<CAPTION>
<S>            <C>                                         <C>
     J.        Entrance, Stairway, Hall,                   Overlandlord
                and Restrooms Cleaning,
                Repair and Decorating

     K.        Furnace/Heating Equipment                   Overlandlord
                Maintenance, Repairs,
                Component Replacement

     L.        Air Conditioning/Ventilation                Overlandlord
                Equipment - Maintenance,
                Repairs, Component
                Replacement

     M.        Elevator Service                            Overlandlord
</TABLE>

     In addition to the above designation, Overlandlord shall provide routine
     maintenance to the Premises, to all glass in windows, doors and partitions
     in which the Premises are located, and to all equipment and fixtures
     leading to the Premises. Tenant shall promptly repair all damage to the
     Premises, including Tenant's leasehold improvements, to their condition
     immediately preceding such damage. Tenant shall maintain all portions of
     the Premises in habitable condition during the lease term. Landlord shall
     not be responsible for any repairs to the premises or equipment contained
     therein except as provided herein.

11.  FIXTURES. At the termination of this lease, Tenant shall be obligated to,
     and shall, remove all its fixtures and furniture installed by Tenant;
     and Tenant shall repair any damage to the walls, floors or ceilings
     resulting from the removal of such fixtures. Tenant's obligation to
     repair any such damage shall include the requirement to neatly fill in
     or patch any holes left in floors, walls, or ceilings by such removal,
     or in Tenant's discretion, to replace individual floor or ceiling
     tiles, using reasonable efforts to match them in appearance.

12.  SIGNS. Intentionally omitted.

13.  COVENANT AGAINST LIENS. Tenant agrees not to permit any mechanics or other
     lien to be placed against the Premises or the land or building where the
     Premises are located. If any such lien is placed, however, Tenant will
     promptly cause it to be removed.

14.  LANDLORD'S REMEDIES. In the event of (1) the filing of a petition by or
     against Tenant under the Bankruptcy Act; or (2) the appointment of a
     receiver or trustee for Tenant or his property; or (3) the making by Tenant
     of an assignment for the benefit of creditors; or (4) the nonpayment of the
     rent and the continuance of such nonpayment for more than five (5) days
     following Tenant's receipt of written notice thereof from Landlord; or (5)
     the breach of any covenant in this lease, and the continuance of such
     breach for more than twenty (20) days following Tenant's receipt of written
     notice thereof from Landlord (except that if Tenant has commenced cure of
     such breach within such twenty (20) day period and thereafter diligently
     prosecutes same, then such twenty (20) day period shall be extended for
     such reasonable additional time as Tenant needs to complete same), Landlord
     shall have the option to terminate Tenant's right to possession of the
     Premises effective upon the service of written demand therefore on Tenant;
     and if Landlord so elects, but not otherwise, this lease shall terminate on
     service of written notice thereof on Tenant. Notwithstanding anything
     contained herein to the contrary, Landlord agrees not to exercise any
     remedy to which it is entitled under this lease or by law in the event of
     any default of Tenant, until Landlord shall have given tenant notice in
     writing specifying wherein Tenant has made default, and Tenant shall have
     failed to remedy such default within a period of Ten (1O) days after the
     date of such notice. Upon termination of Tenant's right of possession as
     aforesaid,
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     whether this lease shall be terminated or not, Tenant agrees to surrender
     possession immediately and hereby grants to Landlord full license to enter
     into and upon said Premises, to take possession thereof with or without
     process of law, and to remove Tenant or other who may be occupying the
     Premises. Landlord may use such force in removing Tenant and other
     occupiers as may reasonably be necessary and Landlord may repossess himself
     of Premises, but said entry shall not constitute a trespass nor forcible
     entry or detainer. The acceptance of rent, as it falls due or after any
     knowledge of breach hereof by Tenant, shall not be construed as a waiver of
     any right of Landlord or as an election not to proceed under the provisions
     of this lease or to enforce any other remedies available to landlord. Any
     holding over by Tenant shall constitute a month-to-month tenancy only at a
     monthly rental equal to one and one half (1 1/2) times the BASE RENT
     specified in Paragraph 3 of this lease. Tenant shall pay upon demand all
     the Landlord's reasonable costs, including the reasonable fees of counsel,
     incurred in enforcing Tenant's obligations hereunder.

15.  NO RESERVATION OF PREMISES. Submission of this instrument for examination
     does not constitute a reservation of or option for the Premises and this
     instrument does not become effective as a lease or otherwise until fully
     executed and delivered by both Landlord and Tenant and approved in writing
     by Overlandlord.

16.  NONDISTURBANCE. During the term of this lease, Tenant shall use the
     Premises so that there is no noise, odor, vibration, heat gain or loss,
     debris or obstruction that, violates the Overlease. If within fifteen (15)
     days after notice from Landlord that any provision of this Nondisturbance
     Clause is being violated by Tenant, Tenant does not end such violation, or
     cause same to be ended, Landlord shall have the option to terminate
     Tenant's right to possession of the leased Premises as provided in
     Paragraph 14 hereof.

17.  TENANT'S INSURANCE. During the term of this lease, Tenant shall provide and
     keep in force for the benefit of Landlord and of Tenant, as their
     respective interests may appear, general liability policy in standard form
     protecting Landlord against any and all liability occasioned by accident
     or disaster resulting in injury or loss to property or injury or death to
     persons arising out of the use and occupancy of the Premises. Such policy
     shall be written by a good and solvent insurance company in the minimum
     amount of $500,000 per occurrence. Tenant must provide evidence of
     insurance naming Landlord as additional insured via a certificate or copy
     of the policy, which must include the insurer's agreement to provide
     Landlord at least 30 days prior written notice of cancellation or
     expiration. If Tenant carries a blanket liability policy or policies
     protecting against accident or disaster at various locations, delivery by
     Tenant to Landlord or a certificate issued by the insurance company
     writing such policy stating that the Landlord is protected thereunder to
     the extent hereinabove specified shall be deemed compliance by Tenant with
     the foregoing requirements; however, the above mentioned 30 day notice
     provision must be complied with.

     Landlord shall carry similar insurance and shall maintain "all-risk"
     property insurance upon the furniture and telephone equipment described in
     Paragraph 19 hereof. Each of Landlord's and Tenant's insurance policies
     shall provide for waiver of subrogation. Anything to the contrary contained
     herein notwithstanding, each of Landlord and Tenant hereby waive and
     release the other from and against any and all claims, causes in action
     and/or expense for which such person is or would be insured by insurance
     policies maintained or required to be maintained hereby (or otherwise
     maintained by such person). In addition, Tenant shall have no liability to
     Overlandlord or to Landlord for any matter which is
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     customarily insured or insurable under policies of insurance comparable to
     those typically carried by large commercial owners of properties similar to
     the Property. Tenant shall be responsible for any increase or continued
     increase in Landlord's insurance premiums resulting from any action and/or
     expense due to Tenant's negligence.


18.  SUCCESSORS. This lease shall benefit and bind the heirs, executors,
     administrators, successors and assigns of both Landlord and Tenant.

19.  TELEPHONE SYSTEM. Tenant shall be allowed the use of Landlord's existing
     phone system and furniture for which tenant shall maintain and provide all
     necessary repairs throughout the term. Ownership of said phone system and
     furniture will be with Tenant and Tenant shall be allowed to remove said
     phone system at the expiration of the lease term.

20.  NOTICES. All notices under this lease shall be in writing and mailed by
     registered or certified mail, or sent by other commercial courier or
     overnight delivery service, in all such cases against receipt, addressed to
     Tenant at 1667 K Street, N.W., Washington, D.C. 20006, Attention:
     President, with a copy to Gary K. Bahena, Esq., 601 Thirteenth Street,
     N.W., Suite 660 North, Washington, D.C. 20005, and to Landlord at 2700
     Sanders Road, Prospect Heights, IL 60070, Attn: [Assistant Vice 
     President], Leasing, [&] Licensing and Contracts. Any such notice shall be 
     deemed given when received.


         IN WITNESS WHEREOF, Landlord and Tenant have executed this lease as of
the day and year first above written.

WITNESS/ATTEST:                        LANDLORD

                                       HOUSEHOLD  BANK, f.s.b.
                                                 ------------------------------

/S/ MARK CHRISTMAN                     By: /S/ P. D. SCHMIDT
-----------------------------             -------------------------------------
Mark Christman, Assistant                 P. D. Schmidt, Authorized Agent
                Secretary
WITNESS/ATTEST:                        TENANT

      [SIG]                            PALMER NATIONAL BANCORP, INC.
-----------------------------
                                       By: /S/ WEBB C. HAYES, IV
                                          -------------------------------------
                                          WEBB C. HAYES, IV