Cardinal Bank was a bank headquartered in McLean, Virginia, that operated in Northern Virginia. It was a subsidiary of Cardinal Financial Corporation. It operated three business segments: commercial banking, mortgages, and wealth management services.[1] In 2017, Cardinal was acquired by United Bank.[2]
| Company type | Public |
|---|---|
| Nasdaq: CFNL | |
| Industry | Financial services |
| Founded | 1997 |
| Defunct | April 24, 2017 |
| Fate | Acquired by United Bank |
| Headquarters | McLean, Virginia, U.S. |
Key people | Bernard H. Clineburg (CEO) Mark A. Wendel (CFO) |
| Products | Banking |
| Revenue |  $153.478 million (2016) |
| $50.491 million (2016) | |
| Total assets | $4.210 billion (2016) |
| Total equity | $452.177 million (2016) |
Number of employees | 839 (2016)[1] |
| Footnotes / references [1] | |
History
editCardinal Financial Services was founded in November 1997 as a bank holding company, with Fairfax attorney and politician John H. "Jack" Rust, Jr. as Chairman.[3][4][1]
In June 1998, the bank's first branch in McLean opened.
In July 1998, Cardinal Financial sold 2.6 million shares of stock at an initial price of $10/share.[3]
In 1999, Cardinal Financial Services began operating Cardinal Wealth Services as its investment advisory subsidiary.[5]
In July 2000, Cardinal Financial purchased Heritage Bancorp of Fairfax for $13.8 million.[6]
Cardinal Financial struggled during its first five years of operations, losing a total of $24 million over that time.[4] The complicated administrative structure needed to support its community bank model severely affected the company's profitability.[4]
To remedy the company's ills, Rust recruited former George Mason Bank CEO Bernard H. Clineburg to run Cardinal Financial in the summer of 2001.[4] Clineburg took over as CEO in October 2001, following the resignation of founding CEO L. Burwell Gunn.[4]
Clineburg immediately collapsed the company's four banking units into one and laid off 33 of the bank's 135 employees.[4] Cardinal also took a $8.3 million write-off on the 2000 purchase of Heritage Bancorp and a $1.7 million loss on a corporate bond from Worldcom.[4]
In May 2002, Cardinal raised another $18.5 million with a stock sale priced at $3.50 per share.[4]
In July 2004, Cardinal Financial Services bought George Mason Mortgage, LLC from the United Bank-Virginia unit of United Bankshares for $17 million.[7]
In May 2009, Cardinal Financial raised $31 million with the sale of 4 million shares of stock at $7.75 each.[8]
In April 2010, the company launched a middle school bank in Fairfax County, Virginia.[9]
In May 2012, the United States Department of Justice concluded an investigation of lending discrimination and said that it did not intend to file a lawsuit against the bank.[10]
In October 2012, the company revised an advertisement in the Washington Metro after locals confused the company logo with that of the St. Louis Cardinals.[11]
In January 2014, Cardinal Financial acquired Vienna, Virginia-based United Financial Banking Companies, Inc., the holding company of The Business Bank, for $51.7 million.[12][13]
In April 2017, United Bank acquired Cardinal Financial for $912 million.[2][14]
References
edit- ^ a b c d "Cardinal Financial Corporation 2016 Form 10-K Annual Report". U.S. Securities and Exchange Commission.
- ^ a b "United Bankshares, Inc. Completes Its Acquisition of Cardinal Financial Corporation" (Press release). Business Wire. April 24, 2017.
- ^ a b "CARDINAL FINANCIAL CORPORATION Form SB-2 May 8, 1998". Nasdaq.
- ^ a b c d e f g h Bredemeier, Kenneth (August 25, 2003). "Rescuing Cardinal Bank Took Some Expert Help". The Washington Post.
- ^ "Cardinal Financial Corporation 2004 Form 10-K Annual Report" (PDF). U.S. Securities and Exchange Commission.
- ^ "Around the Region". The Washington Post. July 31, 2000.
- ^ "Cardinal Financial Corporation Completes Acquisition of George Mason Mortgage, LLC" (Press release). Business Wire. July 8, 2004.
- ^ "Cardinal Financial Corporation - 4,000,000 Shares of Common Stock - May 21, 2009". U.S. Securities and Exchange Commission.
- ^ "Cardinal Bank Launches First Middle School Bank In Fairfax County, Virginia" (Press release). Business Wire. April 19, 2010.
- ^ Douglas, Danielle (May 14, 2012). "DOJ ends investigation of Cardinal Bank". The Washington Post.
- ^ Steinberg, Dan (October 11, 2012). "Cardinal Bank revises Metro ad". The Washington Post.
- ^ "Cardinal Financial Corporation Completes Acquisition of United Financial Banking Companies, Inc" (Press release). Business Wire. January 16, 2014.
- ^ Clabaugh, Jeff (January 16, 2014). "Cardinal Bank completes Business Bank acquisition". American City Business Journals.
- ^ Medici, Andy (April 24, 2017). "Greater Washington's biggest bank deal in recent memory is finally complete". American City Business Journals.