Cardinal Financial completes acquisition of The Business Bank’s parent company
- January 17, 2014
Cardinal Financial Corp., the Tysons Corner-based parent company of Cardinal Bank, has completed its acquisition of United Financial Banking Cos. Inc., the holding company of The Business Bank in Vienna.
The cash and stock deal was valued at $51.7 million when announced in September.
Cardinal expects The Business Bank’s operations to merge with Cardinal Bank on March 8.
Under the terms of the merger agreement, United shareholders will receive $19.13 in cash and 1.154 shares of Cardinal common stock in exchange for each share of United common stock they own.
The cash portion of the deal was financed through a cash dividend of about $27.5 million from Cardinal Bank to the company. The deal involved no borrowing by Cardinal Financial or Cardinal Bank.
Harold C. Rauner, the CEO of United and The Business Bank, has joined Cardinal as a regional bank president.
Cardinal Financial had assets of $2.8 billion at the end of September. Its banking subsidiary has 29 offices.
Cardinal Financial also operates George Mason Mortgage LLC, a residential mortgage lending company based in Fairfax with 20 offices in the Washington, D.C., area, and Cardinal Wealth Services Inc., a wealth management services company.
The Business Bank has eight offices and more than $330 million in assets.