Cardinal Financial Closes Acquisition Of United Financial Banking Cos.

(RTTNews) - Cardinal Financial Corp. (CFNL), the holding company of Cardinal Bank, Thursday announced the completion of its acquisition of United Financial Banking Cos. Inc. (UFBC), the holding company of The Business Bank.

The merger of UFBC into Cardinal is effective January 16 and it is anticipated that The Business Bank will be merged into Cardinal Bank on March 8.

As per the terms, UFBC shareholders will receive $19.13 in cash and 1.154 shares of Cardinal common stock in exchange for each share of UFBC common stock they owned immediately prior to the merger.

The cash portion of the merger consideration was funded through a cash dividend of about $27.5 million from Cardinal Bank to the company, and no borrowing was incurred by the company or Cardinal Bank in connection with the merger.

The deal is expected to be accretive to Cardinal's earnings per share within the first full year after the closing date and thereafter. Harold Rauner, UFBC's and TBB's cief executive, has joined Cardinal as a regional president of Cardinal Bank.