Cardinal Bank

Cardinal Financial Corporation
Public
Traded as NASDAQ: CFNL
Industry Banking
Founded 1997
Headquarters Tysons Corner, Virginia, United States
(McLean mailing address)
Key people
  • Bernard H. Clineburg, Chairman and CEO
  • Mark A. Wendel, EVP, CFO
Products Financial services
Subsidiaries
  • Cardinal Bank
  • George Mason Mortgage
  • Cardinal Wealth Services
Website cardinalbank.com

Cardinal Bank is owned by Cardinal Financial Corporation, a financial holding company. Cardinal's headquarters is in Tysons Corner, Virginia. Cardinal Bank currently has Banking Offices located in the Washington Metropolitan area. Other subsidiaries of Cardinal Financial Corporation include George Mason Mortgage, LLC and Cardinal Wealth Services.

Cardinal Financial Services was founded in November 1997 as a bank holding company, with Fairfax attorney and politician John H. "Jack" Rust, Jr. as Chairman.[1][2] Cardinal's initial business plan was to open separate operating banks for each area it served, creating a group of community banks.[2]

Following the opening of its first bank location in McLean in June 1998, Cardinal Financial sold 2.6 million shares of stock at an initial price of $10/share in July.[1][3]

Cardinal Financial Services began operating Cardinal Wealth Services as its investment advisory subsidiary in February 1999.[4]

In 2000, Cardinal Financial purchased Heritage Bancorp of Fairfax for $13.8 million.[5]

Cardinal Financial struggled during its first five years of operations, losing a total of $24 million over that time.[2] The complicated administrative structure needed to support its community bank model severely affected the company's profitability.[2]

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.[2] Clineburg took over as CEO in October 2001, following the resignation of founding CEO L. Burwell Gunn.[6]

Clineburg collapsed the company's four banking units into one, laying off 33 of the bank's 135 employees just in time for Christmas of that year.[2] 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.[2][7][8]

In May 2002, Cardinal raised another $18.5 million with a stock sale priced at $3.50 per share.[2]

In 2004, Cardinal Financial Services bought George Mason Mortgage, LLC from the United Bank-Virginia unit of United Bankshares for $17 million.[9]

Cardinal Financial raised an additional $31 million with the sale of 4 million shares of stock in May 2009.[10][11]

Cardinal Financial acquired Vienna-based United Financial Banking Companies, Inc., the holding company of The Business Bank, for $51.7 million in January 2014.[12][13] United Bankshares to buy Cardinal Financial for $912 million.[14]

References

  1. 1 2 McKay, Peter A. (27 January 1999). "Investing in Community: Cardinal Financial Branches Out to County With Locally Run Bank". The Washington Post. Retrieved 6 September 2015 – via Proquest. (subscription required (help)).
  2. 1 2 3 4 5 6 7 8 Bredemeier, Kenneth (25 August 2003). "Rescuing Cardinal Bank Took Some Expert Help; CEO Puts Retirement on Hold and Is Rewarded With a Turnaround". The Washington Post. Retrieved 7 September 2015 – via Proquest. (subscription required (help)).
  3. ↑ "New Securities Issues". The Wall Street Journal. 20 July 1998. Retrieved 6 September 2015 – via Proquest. (subscription required (help)).
  4. ↑ "Cardinal Financial Corporation Form SB-2". EDGAR Online. 19 February 2002. Retrieved 8 September 2015.
  5. ↑ "Cardinal-Heritage Merger Approved". The Washington Post. 31 July 2000. Retrieved 7 September 2015 – via Proquest. (subscription required (help)).
  6. ↑ "Monday Morning". The Washington Post. 29 October 2001. Retrieved 7 September 2015 – via Proquest. (subscription required (help)).
  7. ↑ "Freddie Mac Earnings Doubled in Quarter; Firm Reports 63 Percent Gain for Year". The Washington Post. 23 January 2002. Retrieved 7 September 2015 – via Proquest. (subscription required (help)).
  8. ↑ "Monday Morning". The Washington Post. 8 July 2002. Retrieved 7 September 2015 – via Proquest. (subscription required (help)).
  9. ↑ "M&A Roundup: Cardinal to Acquire George Mason". National Mortgage News. 1 May 2014. Retrieved 5 September 2015.
  10. ↑ Associated Press (22 May 2009). "Local Digest: Banking". The Washington Post. Retrieved 6 September 2015 – via Proquest. (subscription required (help)).
  11. ↑ Cowan, Lynn (26 May 2009). "Follow-On Stock Sales Can't Keep Up Fast Pace". The Wall Street Journal. Retrieved 7 September 2015 – via Proquest. (subscription required (help)).
  12. ↑ Bhattarai, Abha (30 December 2013). "News Digest: Bank, credit union mergers pick up". The Washington Post. Retrieved 7 September 2015 – via Proquest. (subscription required (help)).
  13. ↑ "Cardinal Financial Corporation Completes Acquisition of United Financial Banking Companies, Inc." (Press release). Tysons Corner, Virginia. 16 January 2014. Retrieved 6 September 2015.
  14. ↑ Heath, Thomas (18 August 2016). "United Bankshares to buy Cardinal Financial for $912 million". The washington Post. Retrieved 18 August 2016.

External links

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