Cardinal Financial Corporation has notified that it has got preliminary approval from the U. S. Department of the Treasury to take part in its Capital Purchase Program (CPP) under the Emergency Economic Stabilization Act of 2008.

As a participant under the CPP, Cardinal could get up to $41.2 million in capital from the Treasury in exchange for the issuance of shares of preferred stock and warrants for shares of Cardinal's common stock.

According to official sources, the preferred stock would pay a 5% dividend for the first five years, after which the rate would increase to 9% if the preferred shares are not redeemed by Cardinal.

The anticipated sale of the preferred stock and warrants is expected to close within 30 days and is depending upon completion of standard closing documents.

Cardinal Financial Corporation, a financial holding company headquartered in Tysons Corner, Virginia with assets of $1.638 billion at September 30, 2008, serves the Washington Metropolitan region through its wholly-owned subsidiary, Cardinal Bank, with 25 conveniently located banking offices.

The scrip of the Cardinal Financial closed on Friday at $5.62 on Nasdaq, up 7% compared to previous close of $5.25.