Cardinal Reports Asset Quality Continues to Be Exceptional.

Capital Remains Strong; Net Interest Margin Improves

TYSONS CORNER, Va. -- Cardinal Financial Corporation (NASDAQ:CFNL) (the "Company") today reported earnings of $2.1 million and $4.1 million, equivalent to $0.08 and $0.16 per diluted share, for the three and six month periods ended June 30, 2008, respectively, excluding a one time nonrecurring net expense incurred during the current quarter of $1.8 million pretax, or $1.2 million after tax, related to a settlement agreement between its mortgage subsidiary and one of its major mortgage investors. After the one time expense, the Company reported GAAP net income of $874 thousand, or $0.04 per diluted share, for the current quarter. This compares to net income of $1.9 million, or $0.08 per diluted share, for the same period of 2007.

Selected Highlights

* Asset quality continues to be exceptional and is one of the best in the industry. The bank had no nonaccrual loans or other real estate owned at period-end, and net loan charge offs during the quarter were only 0.06% of loans outstanding. The allowance for loan losses increased from 1.12% to 1.16% of total loans held for investment and the provision for loan losses increased to $769 thousand versus $475 thousand compared to the same quarter last year.

* The net interest margin increased to 2.85% from 2.64% compared to the year ago quarter. Net interest income increased to $11.0 million from $10.2 million. From the first quarter 2008, the net interest margin improved by 16 basis points.

* The bank's loan portfolio grew 15% compared to a year ago. Mortgage loans "held for sale" decreased by 56%. Consolidated assets at period-end were $1.73 billion versus $1.69 billion at March 31, 2008.

* The Company continues to be "well-capitalized" exceeding all regulatory standards.

For the quarter ended June 30, 2008, net income from commercial banking operations was $2.7 million versus $1.8 million for the same quarter in 2007. The increase is primarily a result of improved net interest income. The bank has maintained a balance sheet position that favored decreases in interest rates. Additionally, the quality of the Bank's loan portfolio has remained among the industry leaders.

The one time nonrecurring settlement expense between George Mason Mortgage, LLC, ("GMM"), a mortgage banking subsidiary of Cardinal Bank, and one of its major mortgage correspondents related to the loan purchase arrangement between such parties. Generally, the settlement agreement provided for the release of known and unknown claims by the correspondent in exchange for a $2.8 million payment to the correspondent. GMM also entered into similar agreements with certain third party mortgage companies relating to loan purchase agreements between such parties. These settlement agreements provided for a total payment of $1.0 million to GMM by those third party mortgage companies.

MANAGEMENT COMMENTS

Bernard H. Clineburg, Chairman and Chief Executive Officer of the Company, said:

"As evidenced by the quality of the bank's loan portfolio, we have and will continue to adhere to our consistent and prudent credit underwriting practices ensuring we operate a safe and sound financial institution. The economic conditions are challenging and we are not immune to what is happening in the mortgage industry but have taken steps to significantly reduce our exposure. We believe our approach to building quality long term customer relationships will continue to strengthen Cardinal today and in the future.

"We are well positioned as a safe and sound bank to help the consumers and businesses in the communities we serve while staying true to our shareholders by maximizing the strength and value of the Cardinal franchise."

CAUTION ABOUT FORWARD-LOOKING STATEMENTS 

This press release contains "forward-looking statements" within the meaning of the federal securities laws. These forward-looking statements contain information related to matters such as the Company's intent, belief or expectation with regard to such matters as financial and operational performance, credit quality and branch expansion. Such statements are necessarily based on management's assumptions and estimates and are inherently subject to a variety of risks and uncertainties concerning the Company's operations and business environment, which are difficult to predict and beyond the control of the Company. Such risks and uncertainties could cause actual results of the Company to differ materially from those matters expressed or implied in such forward-looking statements. For an explanation of the risks and uncertainties associated with forward-looking statements, please refer to the Company's Annual Report on Form 10-K for the year ended December 31, 2007 and other reports filed with and furnished to the Securities and Exchange Commission.

About Cardinal Financial Corporation: Cardinal Financial Corporation, a financial holding company headquartered in Tysons Corner, Virginia with assets of $1.73 billion at June 30, 2008, serves the Washington Metropolitan region through its wholly-owned subsidiary, Cardinal Bank, with 25 conveniently located banking offices. Cardinal also operates several other subsidiaries: George Mason Mortgage, LLC, a residential mortgage lending company based in Fairfax, with seven offices throughout the Washington Metropolitan region; Cardinal Trust and Investment Services, a trust division; Cardinal Wealth Services, Inc., a full-service brokerage company; and Wilson/Bennett Capital Management, Inc., an asset management company. The Company's stock is traded on NASDAQ (CFNL). For additional information please visit our Web site at www.cardinalbank.com or call [phone].

[TABLE OMITTED]
[TABLE OMITTED]
[TABLE OMITTED]
[TABLE OMITTED]
[TABLE OMITTED]
[TABLE OMITTED]
[TABLE OMITTED]