United Bankshares gets regulatory approval to buy Cardinal Financial
United Bankshares has secured regulatory approval to complete the acquisition of Cardinal Financial (Cardinal).
The transaction has been approved by the Board of Governors of the Federal Reserve System and the Virginia Bureau of Financial Institutions.
Following the shareholder and regulatory approval, the two companies expect to close the transaction on 21 April 2017.
United chairman and chief executive officer Richard M. Adams said: “Cardinal and United share a deep commitment to the customers and communities they serve.
“Our shareholders, customers and the Greater Washington area will benefit greatly from the enhanced presence and capabilities of the combined entities.”
With $4.2bn in assets, Cardinal offers banking services through its subsidiary bank, Cardinal Bank, which has 30 branches throughout Virginia, Maryland and Washington, D.C.
Besides, Cardinal operates George Mason Mortgage, a residential mortgage lending subsidiary, and Cardinal Wealth Services, a wealth management services subsidiary.
As per the transaction, Cardinal Bank will be merged into United Bank, United’s Virginia chartered bank. After the merger, United Bank will own assets worth approximately $14bn.
In August 2016, United Bankshares signed an agreement to acquire its rival Tysons Corner, Virginia-based Cardinal Financial in a deal worth $912m.
The deal marks the 31st acquisition for United Bankshares and its tenth in the Washington, D.C., metropolitan area.
In June last year, United announced the completion of its acquisition of a privately held Bank of Georgetown. The deal was its 30th acquisition.