United Bankshares Completes Cardinal Financial Acquisition And Posts Strong Q1 Earnings
On April 21, United Bankshares consummated its acquisition of Cardinal Financial Corp., a financial services holding company with $4.3B in assets. This transaction, the largest in United's history, marks the 31st acquisition it has completed under its current administration, and its 10th acquisition in the DC metro region.
While the first quarter of 2017 does not include the consolidated results of Cardinal, the quarter did include $1.2M worth of merger expenses related to the acquisition. Despite this, United reported strong earnings of $38.8M this quarter, up from the $34.7M posted in Q1 of 2016.
“We increased before-tax earnings to $59M from $52.6M for last year’s first quarter,” United chairman and CEO Richard Adams said. “Despite a decrease in the earnings per share due to the issuance of shares in a public offering, our profitability remains strong.”
United’s return on average assets of 1.1% outperformed its Federal Reserve peer group’s 0.9%. Net interest income was $107.6M, which was an increase of $9.3M or 10% from Q1 2016.
With the Cardinal acquisition, United added 22 banking locations to its Greater Washington footprint along with George Mason Mortgage, the largest locally headquartered home mortgage lender in the DC region. Cardinal executive chairman Bernard Clineburg joined United’s board of directors.
United Bank is the largest locally headquartered community bank, holding the highest deposit market share of any community bank in the DC area. United now has over $19B in assets with 145 full-service offices and is the 38th-largest banking company in the country based on market cap.
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