The deal marks the 31st acquisition for United Bankshares and its tenth in the Washington, D.C., metropolitan area.
The deal price represents 2.24 times Cardinal’s tangible book value at 30 June, 2016.
With $4.2bn in assets, Cardinal offers banking services through its subsidiary bank, Cardinal Bank, which has a network of 30 branches throughout Virginia, Maryland and Washington, D.C.
As per the deal, Cardinal Bank will be merged into United Bank, United’s Virginia chartered bank.
After the completion of the merger, United will have approximately $20bn in assets with a projected market capitalization of nearly $3.9bn based on its closing price on 16 August.
The transaction is subject to regulatory approval and United and Cardinal shareholder approval.
The acquisition is expected to be completed in mid-2017.
United chairman and chief executive officer Richard Adams said: “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.”
Currently, United has $14.3bn in assets and 129 full-service offices in Washington, D.C., Virginia, Maryland, Ohio, Pennsylvania, and West Virginia.
Cardinal executive chairman Bernard Clineburg said: “United brings to the table the capacity to meet the sophisticated needs of our customers.”
In June, United announced the completion of its acquisition of a privately held Bank of Georgetown. The deal was its 30th acquisition.
Image: United Bankshares to buy Cardinal Financial for $912m. Photo: courtesy of Chaiwat / FreeDigitalPhotos.net.
