On August 18, 2016, Cardinal Financial Corporation (Cardinal) announced their intention to merge with United Bankshares, Inc. (United) in mid-2017, pending regulatory and shareholder approval.
The Cardinal Executive Management Team is delighted with the opportunity to work with United Bank and its experienced leadership team. This merger opens up significant opportunities for our customers while maintaining the strong leadership that founded Cardinal.
Bernard H. Clineburg, Executive Chairman of Cardinal stated, “We are pleased Cardinal found a like-minded partner to further our growth in Northern Virginia, the District of Columbia, and Maryland. United brings to the table the capacity to meet the sophisticated needs of our customers, while at the same time staying true to our commitment to the communities we serve. In addition, the transaction will add tremendous value for our shareholders." It is expected that Mr. Clineburg will join United’s Board of Directors at the time of the merger.
Christopher W. Bergstrom, President and CEO of Cardinal commented, “We’re delighted for the opportunity which would boost United to about $14.4 billion of assets and $8.5 billion of deposits in the Virginia bank – placing United in a league of its own in the Washington, D.C. metro area and a formidable competitor. If you can’t get excited about that, you’re banking with the wrong team.” With the merger, Mr. Bergstrom is expected to become President of the Virginia bank of United and F.Kevin Reynolds, President of Cardinal Bank, to become Director of Sales for the Virginia bank of United.
Richard M. Adams, Chairman and Chief Executive Officer of United, added, “Cardinal is one of the most successful community banks in the country and has a significant presence in one of the best markets in the USA. This merger aligns perfectly with our long-standing commitment to growth in the D.C. Metro area. Both companies have strong ties to the local community, and share the goal of building meaningful relationships with the individuals, businesses, and organizations that contribute to its prosperity. By uniting, we reinforce our position as the largest locally headquartered community bank.”
Upon completion of the merger, United’s assets will grow to approximately $20 billion with a projected market capitalization of approximately $3.9 billion based on United’s closing price on August 16, 2016. Based upon this projected market capitalization, United would be the 32nd largest banking company in the country.
For more information, refer to our press release.