Cardinal Bank
| Company type | Subsidiary |
|---|---|
| Industry | Banking |
| Founded | November 1997 |
| Defunct | April 2017 |
| Fate | Acquired by United Bank |
| Headquarters | McLean, Virginia , United States |
Area served | Northern Virginia |
| Parent | Cardinal Financial Corporation (until 2017) |
Cardinal Bank, headquartered in McLean, Virginia, functioned as a subsidiary of Cardinal Financial Corporation and served the Northern Virginia region. Its operations were divided into three main sectors: commercial banking, mortgage services, and wealth management. In 2017, the institution was acquired by United Bank.
History
Established in November 1997 as a bank holding entity, Cardinal Financial Services was chaired by John H. "Jack" Rust, Jr., a Fairfax-based attorney and political figure.
The institution inaugurated its initial branch in McLean in June 1998, followed by a public offering of 2.6 million shares at $10 each in July of the same year.
In 1999, the company introduced Cardinal Wealth Services, its division dedicated to investment advisory.
By July 2000, Cardinal expanded through the acquisition of Heritage Bancorp from Fairfax for $13.8 million.
Despite this growth, the firm experienced a $24 million loss during its first five years, largely due to an intricate administrative framework that hindered profitability.
To rectify these issues, Rust appointed Bernard H. Clineburg—formerly CEO of George Mason Bank—as CEO in October 2001. Under Clineburg’s leadership, four separate banking units were merged into one entity, and the workforce was trimmed by 33 positions. Additionally, the company recorded an $8.3 million write-down related to the Heritage Bancorp acquisition and took a $1.7 million loss on a Worldcom bond.
In May 2002, Cardinal secured $18.5 million through a stock offering priced at $3.50 per share.
Further expansion occurred in July 2004 with the purchase of George Mason Mortgage, LLC from United Bank-Virginia for $17 million, enhancing its mortgage division.
In May 2009, the bank raised $31 million by issuing 4 million shares at $7.75 apiece.
April 2010 saw the launch of a middle school banking initiative in Fairfax County aimed at cultivating relationships with younger clients.
The United States Department of Justice concluded an investigation into discriminatory lending practices in May 2012 without pursuing charges.
In January 2014, Cardinal acquired United Financial Banking Companies, Inc., based in Vienna and parent company of The Business Bank, for $51.7 million.
The acquisition of Cardinal Financial by United Bank was finalized in April 2017 for $912 million.