Cardinal Financial To Acquire United Financial Banking Companies

(RTTNews) - Cardinal Financial Corp. (CFNL) Monday announced agreement to acquire United Financial Banking Companies, Inc. (UFBC.OB), the holding company of The Business Bank, for $38.26 per share.

Headquartered in Vienna, the Business Bank currently operates eight banking locations in northern Virginia, and has assets of $331 million, deposits of $300 million and gross loans of $228 million, as of June 30. The merger will solidify Cardinal as the largest community bank in northern Virginia market.

Under the agreement, UFBC shareholders will receive 1.154 shares of Cardinal common stock plus $19.13 in cash for each share of UFBC common stock, for an aggregate transaction value of approximately $51.7 million.

Upon close of acquisition, the combined organization will have approximately $3.2 billion in assets, $2.1 billion in gross loans held for investment and $2.4 billion in deposits. Harold Rauner, TBB's CEO, has been named regional president of Cardinal Bank.

The acquisition is expected to close in the first quarter of 2014 , subject to UFBC shareholder approval, regulatory approval and other conditions set forth in the merger agreement.