CFNL Cardinal Financial Corp.

Regional bank United Bankshares Inc. will buy fellow bank Cardinal Financial Corp. for about $912 million in a push to expand in the Washington, D.C., metro area, the companies said Thursday.

Cardinal shareholders will receive 0.71 United share for each share of their stock, valuing their Cardinal shares at $27.63. This represents a 1.5% premium over Wednesday's closing share price and a 7.2% premium over Tuesday's closing share price that was unaffected by media reports of the potential news.

United Bankshares Chief Executive Richard Adams said the move aligns with the company's goal of growing in the D.C. area.

"By uniting, we reinforce our position as the largest locally headquartered community bank," he said.

Cardinal, with about $4.2 billion in assets, has a network of 30 branches throughout Virginia, Maryland and Washington, D.C. It also provides residential mortgage lending and wealth-management services.

Upon completion of the deal, United will have about $20 billion in assets. The deal will cement United's role as the having the largest deposit market share among community banks in the Washington, D.C., area.

Cardinal Chief Executive Bernard Clineburg along with two other Cardinal directors will be appointed to the combined company's board.

The deal was approved by the boards of both companies and is expected to close in the middle of next year, pending regulatory and shareholder approval.

Write to Austen Hufford at austen.hufford@wsj.com

(END) Dow Jones Newswires

August 18, 2016 09:05 ET (13:05 GMT)

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