United Bank Acquires Tysons-Based Cardinal Bank For $912M
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United Bank will acquire Tysons-based Cardinal Bank for $912M in stock as it seeks to establish itself as the dominant community bank in the DC area, chief operating officer Ross Draber (above) said. The deal, the 10th in United’s buying spree, should be finalized mid-2017, and will bring the bank’s assets to approximately $20B. Based on the projected market cap, United stands to become the 32nd-largest banking company in the country.
"This merger aligns perfectly with our long-standing commitment to growth in the DC Metro area," United Bank CEO Richard Adams said in a release.
Cardinal's statement said the deal, pending regulatory and shareholder approval, “opens up significant opportunities for our customers while maintaining the strong leadership that founded Cardinal.”
Cardinal’s recent leadership transition — former CEO Bernard Clineburg graduated to executive chairman while Chris Bergstrom took his place as CEO and president one year ago — seems to have driven, rather than stymied, its aspiration to sell and continue to grow. It is expected that Clineburg will join United’s board of directors at the time of the merger.
“Both companies have strong ties to the local community, and share the goal of building meaningful relationships,” 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."
“If you can’t get excited about that, you’re banking with the wrong team,” Bergstrom said.