U.S. SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                   FORM 10-QSB

                 [X] Quarterly Report Under Section 13 or 15(d)
                     of the Securities Exchange Act of 1934

                For the quarterly period ended September 30, 2000

                 [ ] Transition Report under Section 13 or 15(d)
                     of the Securities Exchange Act of 1934

          For the transition period from ____________ to _____________

                         Commission file number: 0-24557

                         CARDINAL FINANCIAL CORPORATION
        (Exact Name of Small Business Issuer as Specified in its Charter)


           Virginia                                               54-1874630
(State or Other Jurisdiction of                                (I.R.S. Employer
Incorporation or Organization)                               Identification No.)

                          10555 Main Street, Suite 500
                             Fairfax, Virginia 22030
                    (Address of Principal Executive Offices)

                                 (703) 934-9200
                (Issuer's Telephone Number, Including Area Code)


         Check whether the issuer: (1) filed all reports required to be filed by
Section 13 or 15(d) of the  Exchange  Act during the past 12 months (or for such
shorter period that the  registrant was required to file such reports),  and (2)
has been subject to such filing requirements for the past 90 days.

                                                         Yes  __X__    No  _____

         State the number of shares  outstanding of each of the issuer's classes
of common equity, as of the latest practicable date:

          4,245,759 shares of common stock, par value $1.00 per share,
                      outstanding as of September 30, 2000


<PAGE>

                         CARDINAL FINANCIAL CORPORATION

                                TABLE OF CONTENTS
<TABLE>
<CAPTION>
                                                                                              Page No.
Part I.       Financial Information
<S>                                                                                               <C>
         Item 1.  Financial Statements

                  Consolidated Statements of Condition
                  September 30, 2000 (Unaudited) and December 31, 1999.............................3

                  Consolidated Statements of Operations (Unaudited)
                  For the Three and Nine Months Ended
                  September 30, 2000 and September 30, 1999........................................4

                  Consolidated Statements of Comprehensive Income (Loss) (Unaudited)
                  For the Three and Nine Months Ended
                  September 30, 2000 and September 30, 1999........................................5

                  Consolidated Statement of Changes in Shareholders' Equity (Unaudited)
                  For the Nine Months Ended September 30, 2000 and September 30, 1999..............6

                  Consolidated Statements of Cash Flows (Unaudited)
                  For the Nine Months Ended September 30, 2000 and September 30, 1999..............7

                  Notes to Condensed Consolidated Financial Statements (Unaudited).................8

         Item 2.  Management's Discussion and Analysis of Financial Condition
                           and Results of Operation...............................................12


Part II.      Other Information

         Item 1.  Legal Proceedings...............................................................23

         Item 2.  Changes in Securities and Use of Proceeds.......................................23

         Item 3.  Defaults Upon Senior Securities.................................................23

         Item 4.  Submission of Matters to a Vote of Security Holders.............................23

         Item 5.  Other Information...............................................................23

         Item 6.  Exhibits and Reports on Form 8-K................................................24

Signatures

</TABLE>

                                       2
<PAGE>

                 CARDINAL FINANCIAL CORPORATION AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CONDITION
                 As of September 30, 2000 and December 31, 1999
                      (In thousands, except per share data)
<TABLE>
<CAPTION>
                                                                                   (Unaudited)
                                                                                   September 30,       December 31,
                                    Assets                                              2000                1999
                                                                                   -------------       -------------
<S>                                                                                <C>                 <C>
Cash & due from banks                                                              $       8,779       $       6,018
Federal funds sold                                                                        31,809              13,025
                                                                                   -------------       -------------
                   Total cash and cash equivalents                                        40,588              19,043

Investment securities available-for-sale                                                   9,396               4,807
Other investments                                                                          1,398               1,015

Loans receivable, net of fees                                                            140,411              68,167
Allowance for loan losses                                                                 (1,678)               (726)
                                                                                   -------------       -------------
                                                                                         138,733              67,441
Premises and equipment, net                                                                5,185               4,203
Intangibles                                                                                9,736                   -
Accrued interest and other assets                                                          1,356                 524
                                                                                   -------------       -------------
                   Total assets                                                    $     206,392       $      97,033
                                                                                   =============       =============
                     Liabilities and Shareholders' Equity
Deposits                                                                           $     154,064       $      59,873
Borrowings                                                                                 8,684               6,000
Accrued interest and other liabilities                                                     8,406                 415
                                                                                   -------------       -------------
                   Total liabilities                                                     171,154              66,288

Preferred stock, cumulative convertible, $1 par value, 1,412,000 shares authorized,
    shares outstanding 1,411,499 in 2000                                                   1,411                   -
Common stock, $1 par value, 50,000,000 shares authorized,
    shares outstanding 4,245,759 in 2000 and 4,242,634 in 1999                             4,246               4,243
Additional paid in capital                                                                38,451              32,496
Accumulated deficit                                                                       (8,730)             (5,881)
Accumulated other comprehensive income (loss)                                               (140)               (113)
                                                                                   -------------       -------------
                   Total shareholders' equity                                             35,238              30,745
                                                                                   -------------       -------------
                   Total liabilities and shareholders' equity                      $     206,392       $      97,033
                                                                                   =============       =============
</TABLE>


See accompanying notes to consolidated financial statements


                                       3
<PAGE>

                 CARDINAL FINANCIAL CORPORATION AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF OPERATIONS
         For the Three and Nine Months Ended September 30, 2000 and 1999
                                   (Unaudited)
<TABLE>
<CAPTION>
                                                                 Three Months Ended September 30,    Nine Months Ended September 30,
                                                                 --------------------------------    -------------------------------
                                                                       2000              1999             2000              1999
                                                                  ------------       ------------    ------------      ------------
<S>                                                               <C>                <C>             <C>               <C>
Interest income:
   Loans receivable                                               $  2,397,414       $    752,265    $  5,809,900      $  1,578,313
   Federal funds sold                                                  390,979            294,246         961,091           938,675
   Investment securities available-for-sale                             99,407             89,879         242,588           316,378
   Other investments                                                    16,155              9,335          48,666            16,932
                                                                  ------------       ------------    ------------      ------------
          Total interest income                                      2,903,955          1,145,725       7,062,245         2,850,298

Interest expense:
   Deposits                                                          1,150,749            309,703       2,628,544           734,515
   Borrowings                                                          117,110             50,635         308,837            50,908
                                                                  ------------       ------------    ------------      ------------
          Total interest expense                                     1,267,859            360,338       2,937,381           785,423
                                                                  ------------       ------------    ------------      ------------
          Net interest income                                        1,636,096            785,387       4,124,864         2,064,875

Provision for loan losses                                              180,069            212,500         530,951           401,304
                                                                  ------------       ------------    ------------      ------------
          Net interest income after provision for loan losses        1,456,027            572,887       3,593,913         1,663,571

Non-interest income:
   Service charges on deposit accounts                                  36,617             10,257          83,385            21,949
   Loan service charges                                                100,413             60,081         262,615           100,207
   Investment fee income                                               371,432            368,553       1,171,120           648,734
   Gains from sale of securities                                             -                  -               -            12,087
   Other income                                                         65,262              3,214         136,814            17,898
                                                                  ------------       ------------    ------------      ------------
          Total non-interest income                                    573,724            442,105       1,653,934           800,875

Non-interest expense:
   Salary and benefits                                               1,586,908          1,265,550       4,428,927         3,029,079
   Occupancy                                                           267,705            209,617         711,931           630,462
   Professional fees                                                   164,709            186,005         417,772           500,743
   Depreciation                                                        159,322             83,930         422,559           214,798
   Other operating expenses                                            838,510            525,313       2,073,960         1,175,657
                                                                  ------------       ------------    ------------      ------------
          Total non-interest expense                                 3,017,154          2,270,415       8,055,149         5,550,739
                                                                  ------------       ------------    ------------      ------------
          Net loss before income taxes                                (987,403)        (1,255,423)     (2,807,302)       (3,086,293)

Provision for income taxes                                                   -                  -               -                 -
                                                                  ------------       ------------    ------------      ------------
Net Loss                                                          $   (987,403)      $(1,255,423)    $ (2,807,302)     $ (3,086,293)
                                                                  ------------       ------------    ------------      ------------
Dividends to Preferred Shareholders                                     42,636                  -          42,636                 -

Net Loss to Common Shareholders                                     (1,030,039)        (1,255,423)     (2,849,938)       (3,086,293)
                                                                  ============       ============    ============      ============
Basic and diluted loss per share                                  $      (0.24)      $      (0.30)   $      (0.67)     $      (0.73)
                                                                  ============       ============    ============      ============
Weighted-average shares outstanding                                  4,245,759          4,241,604       4,244,721         4,240,207
                                                                  ============       ============    ============      ============
</TABLE>

See accompanying notes to consolidated financial statements.



                                       4
<PAGE>

<TABLE>
<CAPTION>

                                      CARDINAL FINANCIAL CORPORATION AND SUBSIDIARIES
                                   CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
                              For the Three and Nine Months Ended September 30, 2000 and 1999
                                                       (Unaudited)

                                                        Three Months Ended September 30,    Nine Months Ended September 30,
                                                        -------------------------------     -------------------------------
                                                            2000             1999                 2000            1999
                                                        -------------    -------------       -------------    -------------
<S>                                                     <C>              <C>                    <C>              <C>
Net loss                                                $    (987,403)   $  (1,255,423)         (2,807,302)      (3,086,293)
Other comprehensive loss:
   Unrealized holding gain (loss) on available-for-sale
        investment securities, net of tax                      53,944          (21,551)            (27,009)        (103,878)
                                                        -------------    -------------       -------------    -------------
Comprehensive loss                                      $    (933,459)   $  (1,276,974)         (2,834,311)      (3,190,171)
                                                        =============    =============       =============    =============
</TABLE>


See accompanying notes to consolidated financial statements.













                                       5
<PAGE>

<TABLE>
<CAPTION>
                                                  CARDINAL FINANCIAL CORPORATION AND SUBSIDIARIES
                                            CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
                                               For the Nine Months Ended September 30, 2000 and 1999
                                                       (In thousands, except per share data)
                                                                     (Unaudited)

                                                                                                             Accumulated
                                                                                  Additional                    Other
                                                           Common     Preferred    Paid-in     Accumulated  Comprehensive
                                                Shares      Stock       Stock      Capital       Deficit     Income (Loss)   Total
                                               --------  -----------  ----------- ----------  ------------- -------------- ---------
<S>                                               <C>    <C>          <C>          <C>         <C>             <C>         <C>
Balance, January 1, 1999                          4,240  $    4,240   $       -    $  32,327  $    (1,842)    $        3   $ 34,728

Issuance of 3,125 shares of common stock
par value $1, at $7.06 per share, net of costs        3           3           -           19            -              -         22

Reversal of Expense Accrual from
    Public Offering                                   -           -           -          138            -              -        138

Change in unrealized holding loss on
    investment securities available-for-sale,         -           -           -            -            -           (104)      (104)
    net of tax

Net loss                                              -           -           -            -       (3,086)             -     (3,086)
                                               --------  ----------    --------    ---------  -----------   ------------   --------
Balance, September 30, 1999                       4,243  $    4,243    $      -    $  32,484  $    (4,928)  $       (101)  $ 31,698
===================================================================================================================================

Balance, January 1, 2000                          4,243  $    4,243    $      -    $  32,496  $    (5,881)  $       (113)  $ 30,745

Issuance of 1,411,499 shares of cumulative
preferred stock, par value $1                         -           -       1,411        5,645            -              -      7,056

Issuance of common stock option in
connection with the acquisition                       -           -           -          301            -              -        301

Issuance of stock awards                              3           3           -            9            -              -         12

Dividends declared on preferred stock                 -           -           -            -          (42)             -        (42)

Change in unrealized holding loss on
    investment securities available-for-sale          -           -           -            -            -            (27)       (27)

Net loss                                              -           -           -            -       (2,807)             -     (2,807)
                                               --------  ----------    --------    ---------  -----------   ------------   --------
Balance, September 30, 2000                       4,246  $    4,246    $  1,411    $  38,451   $   (8,730)   $      (140)  $ 35,238
===================================================================================================================================
</TABLE>


See accompanying notes to consolidated financial statements


                                       6
<PAGE>
                         CARDINAL FINANCIAL CORPORATION AND SUBSIDIARIES
                              Consolidated Statements of Cash Flows
                      For the Nine Months Ended September 30, 2000 and 1999
                                         (In thousands)
                                           (Unaudited)
<TABLE>
<CAPTION>
                                                                              2000             1999
                                                                           ----------       ---------
<S>                                                                        <C>              <C>
Cash flows from operating activities:
    Net loss                                                               $   (2,807)      $  (3,086)
    Adjustments to reconcile net loss to net cash used in operating
      activities:
        Depreciation                                                              423             215
        Amortization of intangibles                                                59               -
        Provision for loan losses                                                 531             401
        Gain on sale of investment securities available-for-sale                    -             (12)
        Increase in accrued interest and other assets                            (225)           (313)
        Increase in accrued interest and other liabilities                      6,703             337
        Compensation related to stock awards                                       12              22
                                                                           ----------       ---------
               Net cash used in operating activities                            4,696          (2,436)
                                                                           ----------       ---------
Cash flows from investing activities:
    Purchase of premises and equipment                                           (653)         (2,591)
    Proceeds from sale of securities                                                -           3,341
    Purchase of investment securities-available-for-sale                            -            (637)
    Purchase of other investments                                                 (18)              -
    Redemptions of investment securities-available-for-sale                       312           4,030
    Net increase in loan portfolio                                            (34,384)        (28,170)
    Net cash acquired in merger                                                11,090               -
                                                                           ----------       ---------
               Net cash used in investing activities                          (23,653)        (24,027)
                                                                           ----------       ---------
Cash flows from financing activities:
    Net increase in deposits                                                   40,292          25,308
    Net increase in short-term borrowings                                         252           3,000
    Dividends declared on preferred stock                                         (42)              -
    Reversal of accrued costs related to public offering                            -             138
                                                                           ----------       ---------
            Net cash provided by financing activities                          40,502          28,446
                                                                           ----------       ---------
Net increase in cash and cash equivalents                                      21,545           1,983

Cash and cash equivalents at beginning of period                               19,043          25,350
                                                                           ----------       ---------
Cash and cash equivalents at end of period                                 $   40,588       $  27,333
                                                                           ==========       =========
Supplemental disclosure of cash flow information:
    Cash paid during period for interest:                                  $    2,870       $     733
                                                                           ==========       =========
</TABLE>

Supplemental schedule of noncash investing and financing activities: The company
purchased all of the common stock of Heritage  Bancorp,  Inc. for $14.4 million.
In conjunction with the acquisition, liabilities were assumed as follows:

    Fair value of assets acquired                        $   71,974
    Cash paid                                                (7,059)
    Preferred stock issued                                   (7,056)
    Issuance of common stock options                           (301)
                                                         ----------
    Liabilities assumed                                      57,558


See accompanying notes to consolidated financial statements.


                                       7
<PAGE>

                 CARDINAL FINANCIAL CORPORATION AND SUBSIDIARIES
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                               September 30, 2000
                                   (Unaudited)

Note 1

Organization

Cardinal  Financial  Corporation (the "Company") was  incorporated  November 24,
1997 under the laws of the  Commonwealth  of Virginia as a holding company whose
activities  consist of  investment  in its wholly owned  subsidiaries,  Cardinal
Bank, N.A.,  Cardinal Wealth  Services,  Inc.,  Cardinal Bank -  Manassas/Prince
William, N.A. and Cardinal Bank - Dulles, N.A. On September 1, 2000, the Company
completed its acquisition of Heritage  Bancorp,  Inc.  ("Heritage").  Heritage's
sole  subsidiary,  The  Heritage  Bank,  is now  the  Company's  fourth  banking
subsidiary and has been renamed Cardinal Bank - Potomac.

Basis of Presentation

In the opinion of management,  the accompanying condensed consolidated financial
statements have been prepared in accordance with generally  accepted  accounting
principles for interim financial information.  Accordingly,  they do not include
all of the information and footnotes required by generally  accepted  accounting
principles for complete financial statements. However, all adjustments that are,
in the  opinion  of  management,  necessary  for a fair  presentation  have been
included.  The results of operations  for the three months and nine months ended
September 30, 2000 are not necessarily  indicative of the results to be expected
for the full year ending  December 31, 2000.  The  unaudited  interim  financial
statements should be read in conjunction with the audited  financial  statements
and notes to financial  statements  that are presented in the  Company's  Annual
Report on Form 10-KSB for the year ended December 31, 1999.


Note 2

Acquisition

On September 1, 2000, the Company acquired 100% of the outstanding  common stock
of Heritage for a combination of cash, shares of convertible preferred stock and
stock options totaling $14.4 million.  Accordingly, the results of operations of
the Company include the results of Heritage from September 1, 2000 forward.  The
transaction  was  accounted  for using the  purchase  method of  accounting.  At
consummation,  Heritage had assets of approximately $62.2 million, loans, net of
fees, of $37.8  million and deposits of $54.0  million,  all of which  reflected
purchase accounting adjustments.  The following table presents pro forma results
of  operations  for the nine months ended  September  30, 1999 and September 30,
2000 as though the Company and  Heritage  had  combined at the  beginning of the
reporting period:




                                       8
<PAGE>
                                                          Pro Forma
                                                      Nine Months Ended
                                                         September 30,
                                                   2000                1999
                                               ------------        ------------
         Net interest income                   $  6,372,467        $  4,556,113
         Provision for loan losses                  530,951             419,304
         Non-interest income                      1,176,096             950,875
         Non-interest expense                    10,898,501           8,139,146
                                               ------------        ------------
         Net income (loss)                     $ (3,880,889)       $ (3,051,462)
                                               ============        ============

         Earnings per share:
                       Basic                   $      (0.91)       $      (0.72)
                       Diluted                        (0.91)              (0.72)



Note 3

Segment Disclosures

The Company operates and reports in two business  segments,  commercial  banking
and investment  advisory services.  The commercial banking segment includes both
commercial  and consumer  lending and provides  customers  such products as term
loans,  real estate loans,  other business  financing and installment  loans. In
addition,  this segment also provides  customers with several choices of deposit
products including demand deposit accounts, savings accounts and certificates of
deposit.  The investment advisory services segment provides advisory services to
businesses and individuals  including  financial planning and  retirement/estate
planning.

Information about reportable segments, and reconciliation of such information to
the  consolidated   financial   statements  as  of  and  for  the  quarters  and
year-to-date periods ended September 30, 2000 and 1999 follows:

For the Three Months Ended September 30, 2000:
<TABLE>
<CAPTION>
                             Commercial        Investment       Intersegment
                               Banking          Advisory         Elimination      Other         Consolidated
                            --------------------------------------------------------------------------------
<S>                         <C>              <C>              <C>             <C>              <C>
Net interest income         $   1,498,304    $           -    $           -   $     137,792    $   1,636,096
Provision for loan losses         180,069                -                -               -          180,069

Non-interest income               185,670          371,432                -          16,622          573,724
Non-interest expense            1,679,414          494,961                -         842,779        3,017,154
                            --------------------------------------------------------------------------------
Net income (loss)           $    (175,509)   $    (123,529)   $           -   $    (688,365)   $    (987,403)
                            ================================================================================
</TABLE>





                                       9
<PAGE>

For the Nine Months Ended September 30, 2000:
<TABLE>
<CAPTION>
                             Commercial        Investment       Intersegment
                               Banking          Advisory         Elimination      Other         Consolidated
                            ---------------------------------------------------------------------------------
<S>                         <C>              <C>              <C>             <C>              <C>
Net interest income         $   3,695,743    $           -    $           -    $     429,121    $   4,124,864
Provision for loan losses         530,951                -                -                -          530,951
Non-interest income               453,971        1,171,120           (3,551)          32,394        1,653,934
Non-interest expense            4,577,134        1,524,184           (3,551)       1,957,382        8,055,149
                            ---------------------------------------------------------------------------------
Net income (loss)           $    (958,371)   $    (353,064)   $           -    $  (1,495,867)   $  (2,807,302)
                            =================================================================================

Total Assets                $ 183,236,012    $     217,179    $ (19,711,468)   $  42,649,954    $ 206,391,677
</TABLE>


For the Three Months Ended September 30, 1999:
<TABLE>
<CAPTION>
                             Commercial        Investment       Intersegment
                               Banking          Advisory         Elimination      Other         Consolidated
                            --------------------------------------------------------------------------------
<S>                         <C>              <C>              <C>             <C>              <C>
Net interest income         $     646,807    $           -    $           -   $     140,354    $     787,161
Provision for loan losses         212,500                -                -               -          212,500
Non-interest income                71,778          368,553                -               -          440,331
Non-interest expense            1,250,460          554,753                -         465,202        2,270,415
                            --------------------------------------------------------------------------------
Net income (loss)           $    (744,375)   $    (186,200)   $               $    (324,848)   $  (1,255,423)
                            ================================================================================
</TABLE>


For the Nine Months Ended September 30, 1999:
<TABLE>
<CAPTION>
                             Commercial        Investment       Intersegment
                               Banking          Advisory         Elimination      Other         Consolidated
                            ---------------------------------------------------------------------------------
<S>                         <C>              <C>              <C>             <C>              <C>
Net interest income         $   1,302,116    $           -    $           -    $     765,900    $   2,068,016
Provision for loan losses         401,304                -                -                -          401,304
Non-interest income               149,000          648,734                -                -          797,734
Non-interest expense            2,836,484        1,130,218                -        1,584,037        5,550,739
                            ---------------------------------------------------------------------------------
Net income (loss)           $  (1,786,672)   $    (481,484)   $           -    $    (818,137)   $  (3,086,293)
                            =================================================================================

Total Assets                $  69,606,898    $     477,197    $ (19,774,865)   $  32,600,662    $  82,909,892
</TABLE>


The Company does not have operating  segments other than those reported.  Parent
company  financial  information  is included in the "Other"  category  above and
represents  the  overhead  function  rather than an  operating  segment.  Parent
company net  interest  income is  comprised  of interest  income from fed funds,
investment securities and certificates of deposit.


Note 4

Earnings Per Share

The following table discloses the calculation of basic and diluted  earnings per
share for the three  months and nine months ended  September  30, 2000 and 1999.
Because  the  Company  had  net  losses  due  to  the




                                       10
<PAGE>

start-up nature of the  organization,  all stock options issued to date (331,199
as of September 30, 2000) have an anti-dilutive effect and, therefore, have been
excluded from the earnings per share calculation.

<TABLE>
<CAPTION>
                                                       Three Months Ended September 30,       Nine Months Ended September 30,
                                                           2000                1999              2000                    1999
                                                       --------------------------------      --------------------------------
<S>                                                    <C>                 <C>               <C>                 <C>
Net loss                                               $  (987,403)        $(1,255,423)      $(2,807,302)        $(3,086,293)

Dividends to preferred shareholders                         42,636                   -            42,636                   -

Net loss to common shareholders                         (1,030,039)         (1,255,423)       (2,849,938)         (3,086,293)

Weighted average shares for basic and diluted            4,245,759           4,241,604         4,244,721           4,240,207

Basic and diluted loss per share                       $     (0.24)        $     (0.30)      $     (0.67)        $     (0.73)

</TABLE>












                                       11
<PAGE>

Item 2.      Management's Discussion and Analysis of Financial Condition and
             Results of Operations

General

Cardinal  Financial  Corporation (the "Company") is a multi-bank holding company
that includes one non-bank subsidiary.  The Company began operations on November
24,  1997 and  completed  a private  offering  in late 1997 and early  1998 that
raised $10.6  million in capital.  Following the private  offering,  the Company
opened its first bank subsidiary,  Cardinal Bank, N.A., on June 8, 1998. In July
1998,  the  Company  raised an  additional  $26.0  million in an initial  public
offering.  In February 1999, Cardinal Wealth Services,  Inc. began operations as
the  Company's  non-bank  investment  advisory  subsidiary.  Through a strategic
alliance  with LM Financial  Partners,  Inc., a wholly owned  subsidiary of Legg
Mason Inc.,  Cardinal  Wealth  Services,  Inc. can offer an  extensive  range of
financial products and services. The Company's second bank subsidiary,  Cardinal
Bank -  Manassas/Prince  William,  N.A.,  began  operations  in July  1999.  The
Company's third bank subsidiary,  Cardinal Bank - Dulles, N.A., began operations
in August 1999.

In April  2000,  the  Company  announced  the  planned  acquisition  of Heritage
Bancorp,  Inc.  ("Heritage"),  a bank  holding  company with over $64 million in
assets  headquartered  in McLean,  Virginia.  Heritage's  only  subsidiary,  The
Heritage Bank, operates three branches in McLean, Sterling and Tyson's Corner in
northern Virginia. The transaction closed on September 1, 2000 and was accounted
for as a purchase.  Conversion  of systems  will occur in the fourth  quarter of
2000.

The following  discussion presents  management's  discussion and analysis of the
consolidated  financial condition and results of operations of the Company as of
September  30, 2000 and for the three and nine months ended  September  30, 2000
and 1999.  This  discussion  should be read in  conjunction  with the  Company's
Unaudited  Condensed  Consolidated  Financial  Statements  and the notes thereto
appearing elsewhere in this report.

Financial Condition

Total assets of the Company were $206.4  million at September  30, 2000 compared
to $97.0  million at December  31, 1999,  representing  an increase of $109.4 or
113%. The increase is due to the acquisition of Heritage on September 1, 2000 as
well as deposit and loan  production  during the nine months ended September 30,
2000.  Deposit  balances  increased  from $59.9  million on December 31, 1999 to
$154.1  million at September  30, 2000.  Of the $94.2  million  increase,  $40.2
million was due to production and $54.0 million due to the Heritage acquisition.
Total loans, net of fees, increased $72.2 million to $140.4 million at September
30, 2000 from $68.2 million at December 31, 1999.  The increase in loan balances
is due to $37.8 million from the acquisition of Heritage and production of $34.4
million.  (See  Table  1 for  loan  portfolio  details.)  Total  cash  and  cash
equivalents  were $40.6  million at September 30, 2000 compared to $19.0 million
at December  31,  1999.  The $21.6  million  increase  was due  primarily to the
acquisition of Heritage, which added $11.0 million in cash and cash equivalents.
Investment  securities available for sale increased $4.6 million to $9.4 million
at  September  30,  2000 from $4.8  million at December  31,  1999.  Again,  the
increase  is  attributable  to the  acquisition  of  Heritage.  (See Table 2 for
details of the investment securities available for sale portfolio).  As a result
of  the  acquisition,  which  was  accounted  for  using  the  purchase  method,
intangible assets in the amount of $9.7 million were added to the balance sheet.
Approximately  $100,000 of the intangible  assets have been identified as a core
deposit  intangible.  The core deposit  intangible  is being  amortized  over 20
months,  and  the  remaining  intangible  is  being  amortized  over  15  years.
Shareholders'  equity at September 30, 2000 was $35.2 million  compared to $30.7
million at December 31, 1999. The $4.5 million increase represents the capital



                                       12
<PAGE>

issued  in the  Heritage  acquisition.  As  part  of the  purchase  transaction,
1,411,499 shares of cumulative preferred stock with a 7.25% annual dividend were
issued.

Results of Operations

Net loss for the  three  and  nine  months  ended  September  30,  2000 was $987
thousand and $2.81 million, respectively,  compared with $1.26 million and $3.09
million  for the same  periods  of 1999.  The net loss  reduction  in the  third
quarter of 2000  compared to the third quarter of 1999 of $268,000 or 21% can be
attributed to increased deposit generation and loan production. In addition, the
third   quarter   of  2000   reflects   a  full   quarter   operation   for  the
Manassas/PrinceWilliam  and  Dulles  banks,  plus one month of  operations  from
Cardinal Bank - Potomac  (formerly The Heritage Bank).  Return on average assets
and return on average equity for the three months ended  September 30, 2000 were
-2.56% and -12.17%, respectively. For the three months ended September 30, 1999,
return on average  assets and return on average  equity  were -6.79% and -15.47%
respectively.

Net interest  income is the Company's  primary  source of revenue and represents
the difference  between  interest and fees earned on interest bearing assets and
the  interest  paid on deposits  and other  interest  bearing  liabilities.  Net
interest  income before  provision for loan losses for the three and nine months
ended  September  30, 2000 was $1.64  million and $4.12  million,  respectively,
compared to $785  thousand and $2.06  million for the same periods in 1999.  The
significant  increase in net interest  income  represents the full operations of
three banks in the third quarter of 2000 as well as one month of operations  for
the Company's fourth bank, Cardinal Bank - Potomac.

The Company's net interest  margin for the three and nine months ended September
30, 2000 was 4.96% and 4.92%, respectively,  compared to 4.70% and 4.67% for the
same  periods in 1999.  The 26 basis point  increase in the margin for the third
quarter   of  2000  can  be   attributed   to  a  change  in   deposit   mix  as
non-interest-bearing  liabilities  fund a higher  percentage of interest bearing
liabilities  at September 30, 2000 than at September 30, 1999.  Table 3 presents
an analysis of average earning assets,  interest bearing  liabilities and demand
deposits with the related components of interest income and interest expense.

The provision for loan losses for the three and nine months ended  September 30,
2000 was $180.1 thousand and $531.0 thousand,  respectively,  compared to $212.5
thousand and $401.3  thousand for the same periods in 1999.  The  allowance  for
loan losses at September 30, 2000 was $1.68 million compared to $726 thousand at
December 31, 1999.  The ratio of the allowance for loan losses to gross loans at
September 30, 2000 was 1.20%  compared to a ratio of 1.07% at December 31, 1999.
The  Company's  loan  balances  include  certain  types of loans  that have been
structured  such that the risk of loss is reduced by third party  guarantees  or
additional  collateral.  These loans include purchased loans where the seller is
required to absorb losses of up to 115 basis points of the outstanding  balances
and  business  manager  loan  receivables  (funding of small  business  accounts
receivable)  where the  borrower  maintains a minimum of 10% of the  outstanding
balance in a restricted deposit account.  Table 4 reflects the components of the
allowance for loan losses and  calculates  the loan loss ratio two ways;  first,
with total gross loans, and second,  with total gross loans less purchased loans
and business manager receivables. The Company's ratio of non-performing loans to
total gross loans was 0.46% at September 30, 2000 compared to 0.00% at September
30, 1999.

Non-interest  income for the three and nine months ended  September 30, 2000 was
$573.7 thousand and $1.65 million, respectively, compared to $442.1 thousand and
$800.9  thousand  for the same  periods in 1999.  The  increase in  non-interest
income was due to higher  investment  fee income  generated  by Cardinal  Wealth
Services,  Inc., as well as  additional  fees  generated by the  Company's  bank
subsidiaries.



                                       13
<PAGE>

Non-interest  expense for the three and nine months ended September 30, 2000 was
$3.02  million and $8.06  million,  respectively,  compared to $2.27 million and
$5.55 million for the same periods in 1999. The increase in non-interest expense
can be  attributed to the full period  operations  in 2000 of two  additional de
novo banks  (Manassas/Prince  William and Dulles) as well as the  operations for
one month in the third quarter of 2000 of Cardinal Bank -Potomac.

Business Segment Operations

The  Company  provides  a  diversified  selection  of  banking  and  non-banking
financial  services and products through its subsidiaries.  Management  operates
and  reports  the  results of the  Company's  operations  through  two  business
segments - commercial banking and investment advisory services.

Commercial Banking

The commercial banking segment provides  comprehensive banking services to small
businesses and individuals  through multiple  delivery  channels.  Through three
banking subsidiaries,  services include commercial and consumer lending, deposit
products,  direct  banking via the  internet and  telephone,  and the funding of
small business receivables through the Business Manager product.

For the three and nine months ended  September 30, 2000, the commercial  banking
segment had net losses of $175.5  thousand  and $958.4  thousand,  respectively,
compared to net losses of $744.4 thousand and $1.79 million for the same periods
in 1999. As of September 30, 2000, total assets were $183.2 million, total loans
were $140.4 million and deposits were $154.1 million.  As of September 30, 1999,
total  assets  were $69.6  million,  total  loans were $44.5  million  and total
deposits were $47.2 million.

Investment Advisory Services

The investment  advisory services segment provides financial and estate planning
services utilizing a host of products provided through a strategic alliance with
Legg Mason Financial  Partners,  a wholly owned  subsidiary of Legg Mason,  Inc.
Operations for this segment began February 1, 1999.

For the three and nine months ended September 30, 2000, the investment  advisory
services  segment  had net  losses  of  $123.5  thousand  and  $353.1  thousand,
respectively,  compared to net losses of $186.2 thousand and $481.5 thousand for
the same  periods in 1999.  As of September  30, 2000,  total assets were $217.2
thousand and assets under  management  were $81.1  million.  As of September 30,
1999,  total assets were $477.2 thousand and assets under  management were $49.3
million.

Capital Resources

Shareholders'  equity at September 30, 2000 was $35.2 million  compared to $30.7
million at December 31,  1999.  The increase in equity is due to the issuance of
preferred  stock in connection  with the acquisition of Heritage offset somewhat
by the net loss  recorded  for the nine months  ended  September  30,  2000.  At
September  30, 2000,  the Company's  tier 1 and total risk based capital  ratios
were 21.5% and 22.2%  respectively.  At December 31, 1999,  the Company's tier 1
and total  risk-based  capital  ratios were 37.9% and 38.8%,  respectively.  The
decline in the Company's capital ratios is due to the increase in assets as well
as the  absorption  of  operating  losses.  Table 5 reflects the  components  of
regulatory  capital.  The Company continues to maintain a capital structure that
places it well above minimum regulatory requirements.



                                       14
<PAGE>

Liquidity

Liquidity  provides  the  Company  with  the  ability  to  meet  normal  deposit
withdrawals while also providing for the credit needs of customers. At September
30, 2000, cash and cash  equivalents  and securities  available for sale totaled
$50.0  million or 24% of total assets  compared to $23.9 million or 25% of total
assets at December 31, 1999. Management is committed to maintaining liquidity at
a level sufficient to protect  depositors,  provide for reasonable  growth,  and
fully comply with all regulatory requirements.

Interest Rate Sensitivity

An important  element of  asset/liability  management  is the  monitoring of the
Company's sensitivity to interest rate movements. In order to measure the effect
of interest rates on the Company's net interest  income,  management  takes into
consideration the expected cash flow from the loan and securities portfolios and
the  expected  magnitude  of the  repricing  of  specific  asset  and  liability
categories.  Management  evaluates interest sensitivity risk and then formulates
guidelines  to manage this risk based upon its outlook  regarding  the  economy,
forecasted interest rate movements and other business factors. Management's goal
is to maximize and  stabilize  the net interest  margin by limiting  exposure to
interest rate changes.

The data in Table 6 reflects re-pricing or expected maturities of various assets
and  liabilities as of September 30, 2000.  This "gap"  analysis  represents the
difference  between interest sensitive assets and liabilities in a specific time
interval.  Interest  sensitivity gap analysis presents a position that exists at
one  particular  point in time,  and assumes  that assets and  liabilities  with
similar  re-pricing  characteristics  will  re-price at the same time and to the
same degree.

Forward Looking Statements

Certain  information  contained in this discussion may include  "forward-looking
statements"  within the meaning of Section 27A of the Securities Act of 1933, as
amended,  and Section 21E of the  Securities  Exchange Act of 1934,  as amended.
These  forward-looking  statements  are generally  identified by phrases such as
"the Company expects," "the Company  believes" or words of similar import.  Such
forward-looking  statements  involve known and unknown risks including,  but not
limited to, changes in general economic and business  conditions,  interest rate
fluctuations,  competition  within and from  outside the banking  industry,  new
products and  services in the banking  industry,  risk  inherent in making loans
such as  repayment  risks  and  fluctuating  collateral  values,  problems  with
technology  utilized by the Company,  changing  trends in customer  profiles and
changes in laws and regulations applicable to the Company.  Although the Company
believes that its expectations  with respect to the  forward-looking  statements
are based upon  reliable  assumptions  within the bounds of its knowledge of its
business  and  operations,  there  can  be no  assurance  that  actual  results,
performance or achievements  of the Company will not differ  materially from any
future  results,  performance  or  achievements  expressed  or  implied  by such
forward-looking  statements.  For more  information on factors that could affect
expectations,  see the Company's Annual Report on Form 10-KSB for the year ended
December 31, 1999.





                                       15
<PAGE>

Table 1.

                 Cardinal Financial Corporation and Subsidiaries
                                      Loans
                             (Dollars in thousands)
                                   (Unaudited)
<TABLE>
<CAPTION>
                                                 September 30,               December 31,
                                                     2000                       1999
                                        --------------------------    -------------------------

<S>                                     <C>                 <C>       <C>                 <C>
Commercial                              $       41,814      29.54%    $       22,558      33.10%
Real estate - commercial                        52,701      38.18%            19,780      29.03%
Real estate - construction                       5,184       3.66%               870       1.28%
Real estate - residential                       17,346      12.25%            11,851      17.39%
Home equity lines                               13,136       9.28%             3,777       5.54%
Consumer                                        10,029       7.09%             9,311      13.66%
                                        --------------------------    -------------------------

Gross loans                             $      140,210     100.00%    $       68,147     100.00%

Less: unearned income, net                         201                           20
Less: allowance for loan losses                 (1,678)                        (726)
                                        --------------                -------------

Total loans, net                        $      138,733                $      67,441
                                        ==============                =============
</TABLE>








                                       16
<PAGE>

Table 2.

                Cardinal Financial Corporation and Subsidiaries
                   Investment Securities - Available-for-Sale
                 As of September 30, 2000 and December 31, 1999
                             (Dollars in thousands)
                                  (Unaudited)
<TABLE>
<CAPTION>
                                                                                 Amortized        Fair       Unrealized     Average
As of  September 30, 2000                                          Par Value        Cost         Value      Gain/(Loss)      Yield
                                                               ---------------------------------------------------------------------
<S>                                                                  <C>           <C>           <C>            <C>            <C>
U.S. Government Agencies and Enterprises
     Within one year                                                     500           500           496            (4)        5.73%
     One to five years                                                 6,500         6,442         6,408           (34)        6.28%
     After ten years                                                   1,384         1,427         1,358           (69)        7.59%
------------------------------------------------------------------------------------------------------------------------------------
            Total U.S. Government Agencies                           $ 8,384       $ 8,369       $ 8,262        $ (107)        6.46%
------------------------------------------------------------------------------------------------------------------------------------

Mortgage-Backed Securities
    Within one year                                                       71            71            71             -         5.27%
    One to five years                                                    705           707           690           (17)        6.05%
     Five to ten years                                                   388           389           373           (16)        5.96%
     After ten years                                                       -             -             -             -         0.00%
------------------------------------------------------------------------------------------------------------------------------------
            Total Mortgage-Backed Securities                         $ 1,164       $ 1,167       $ 1,134        $  (33)        5.97%
------------------------------------------------------------------------------------------------------------------------------------

            Total Investment Securities-Available-for-Sale           $ 9,548       $ 9,536       $ 9,396        $ (140)        6.40%
            ========================================================================================================================


                                                                                 Amortized        Fair       Unrealized     Average
As of December 31, 1999                                            Par Value        Cost         Value      Gain/(Loss)      Yield
                                                               ---------------------------------------------------------------------
U.S. Government Agencies and Enterprises
     One to five years                                               $ 3,000       $ 3,000       $ 2,927       $   (73)        5.90%
     After ten years                                                     500           499           445           (54)        6.26%
------------------------------------------------------------------------------------------------------------------------------------
            Total U.S. Government Agencies                           $ 3,500       $ 3,499       $ 3,372       $  (127)        5.95%
------------------------------------------------------------------------------------------------------------------------------------

Mortgage-Backed Securities
     Within one year                                                 $    89       $    89       $    89             -         6.20%
     Five to ten years                                                   216           217           215            (2)        5.40%
     After ten years                                                   1,170         1,173         1,131           (42)        5.86%
------------------------------------------------------------------------------------------------------------------------------------
            Total Mortgage-Backed Securities                         $ 1,475       $ 1,479       $ 1,435        $  (44)        5.87%
------------------------------------------------------------------------------------------------------------------------------------

            Total Investment Securities-Available-for-Sale           $ 4,975       $ 4,978       $ 4,807        $ (171)        5.93%
                                                               =====================================================================
</TABLE>





                                       17
<PAGE>

Table 3.

                Cardinal Financial Corporation and Subsidiaries
                Rate and Volume Analysis (Tax Equivalent Basis)
                                 (In thousands)
                                  (Unaudited)
<TABLE>
<CAPTION>
   Three Months         Three Months                                           Three Months                      Three Months
Ended September 30,  Ended September 30,                                    Ended September 30,               Ended September 30,
  Average Volume       Average Rate                                            Interest           Increase     Attributable to
  2000      1999       2000    1999                                           2000      1999     (Decrease)     Rate     Volume
-------------------------------------                                    --------------------  -------------  ------------------
                                               Interest Income
                                       Loans:
<S>        <C>         <C>     <C>     <C>                                   <C>       <C>          <C>          <C>    <C>
  $ 33,601 $ 10,530    9.76%   8.47%      Commercial                         $ 821     $ 223        $ 598        $ 111  $   487
    33,901   12,746    7.47%   7.31%      Real estate - commercial             633       233          400           13      387
     3,373    1,071   10.12%   8.59%      Real estate - construction            85        23           62           13       49
    19,746    9,446    9.33%   7.54%      Real estate - residential            460       178          282           89      194
     8,253    2,819    8.85%   7.38%      Home equity lines                    183        52          131           31      100
     9,635    1,053    8.95%   8.36%      Consumer                             216        22          194           14      180
--------------------------------------------------------------------------------------------------------------------------------
   108,509   37,665    8.83%   7.76%               Total loans               2,398       731        1,667        $ 271  $ 1,396

     6,310    6,783    6.30%   5.90%   Investment Securities - AFS              99       100           (1)           6       (7)

     1,036        -    6.24%   0.00%   Other Investments                        16         -           16           16        -

    22,906   22,995    6.85%   5.11%   Federal funds sold                      391       294           97           98       (1)

--------------------------------------------------------------------------------------------------------------------------------
 $ 138,761 $ 67,443    8.37%   6.67%   Total interest-earning assets       $ 2,904   $ 1,125      $ 1,779        $ 391  $ 1,388
================================================================================================================================

                                                  Interest Expense

     6,244    2,461    2.10%   2.12%      Interest Checking                     33        13           20           (0)      20
    16,169    7,692    3.37%   3.65%      Money Markets                        136        70           66          (11)      77
     2,216      248    2.97%   3.23%      Statement Savings                     16         2           14           (1)      15
    62,115   18,201    6.24%   4.96%      Certificates of Deposit              966       225          741          198      543
--------------------------------------------------------------------------------------------------------------------------------
    86,744   28,602    5.32%   4.35%   Total interest-bearing liabilities    1,151       310          841          186      655

     6,875    3,000    6.83%   6.82%   Borrowings                              117        51           66            0       66

--------------------------------------------------------------------------------------------------------------------------------
  $ 93,619 $ 31,602    5.43%   4.58%   Total interest-bearing liabilities  $ 1,268   $   361      $   907        $ 186  $   721
================================================================================================================================

    55,358   41,810                    Other Sources - Net                       -         -            -            -        -
--------------------------------------------------------------------------------------------------------------------------------
   148,976   73,412    3.41%   1.97%   Total Sources of Funds                1,268       361          907          186      721
--------------------------------------------------------------------------------------------------------------------------------

  $ 45,142 $ 35,841    4.95%   4.70%   Net Interest Margin                 $ 1,636   $   764      $   872        $ 205  $   667
================================================================================================================================
</TABLE>



                                       18
<PAGE>

Table 3 continued.

                Cardinal Financial Corporation and Subsidiaries
                Rate and Volume Analysis (Tax Equivalent Basis)
                                 (In thousands)
                                  (Unaudited)
<TABLE>
<CAPTION>
    Nine Months          Nine Months                                            Nine Months                        Nine Months
 Ended September 30, Ended September 30,                                    Ended September 30,                Ended September 30,
   Average Volume       Average Rate                                             Interest          Increase      Attributable to
   2000      1999       2000     1999                                         2000      1999      (Decrease)     Rate     Volume
----------------------------------------                                   --------------------  ------------  --------------------
                                                Interest Income
                                          Loans:
<S>         <C>        <C>        <C>        <C>                              <C>         <C>        <C>            <C>    <C>
  $ 27,978  $ 7,977    9.51%      8.19%      Commercial                       $ 1,996     $ 490      $ 1,506        $ 290  $ 1,216
    30,020    7,335    7.53%      8.18%      Real estate - commercial           1,696       450        1,246         (144)   1,390
     1,990      796    9.78%      8.88%      Real estate - construction           146        53           93           13       80
    15,068    7,194    8.96%      7.38%      Real estate - residentia           1,012       398          614          177      437
     6,078    2,068    8.62%      6.77%      Home equity lines                    393       105          288           84      204
     9,428      910    8.01%      8.50%      Consumer                             566        58          508          (34)     542
----------------------------------------------------------------------------------------------------------------------------------
    90,562   26,280    8.55%      7.88%               Total loans               5,809     1,554        4,255        $ 386  $ 3,869

     5,136    7,769    6.30%      5.68%   Investment Securities - AFS             243       331          (88)          23     (111)

       971        -    6.68%      0.00%   Other Investments                        49         -           49           49        -

    19,245   25,641    6.66%      4.88%   Federal funds sold                      961       938           23          255     (232)

----------------------------------------------------------------------------------------------------------------------------------
 $ 115,914 $ 59,690    8.12%      6.31%   Total interest-earning assets       $ 7,062   $ 2,823      $ 4,239        $ 713  $ 3,526
==================================================================================================================================

                                                Interest Expense

     4,264    2,199    2.32%      2.08%      Interest Checking                     73        34           39            7       32
    12,666    5,791    3.57%      3.63%      Money Markets                        336       156          180           (5)     185
     1,096      178    3.23%      3.03%      Statement Savings                     26         4           22            2       20
    48,564   14,715    6.08%      4.87%      Certificates of Deposit            2,193       532        1,661          437    1,224
----------------------------------------------------------------------------------------------------------------------------------
    66,590   22,883    5.31%      4.27%   Total interest-bearing liabilities    2,628       726        1,902        $ 441  $ 1,461

     6,261    1,011    6.55%      6.70%   Borrowings                              309        51          258           (3)     261

----------------------------------------------------------------------------------------------------------------------------------
 $  72,851 $ 23,894    5.43%      4.38%   Total interest-bearing liabilities  $ 2,937     $ 777      $ 2,160        $ 438    1,722
==================================================================================================================================

    50,532   39,901                       Other Sources - Net
----------------------------------------------------------------------------------------------------------------------------------
   123,383   63,795    3.21%      1.64%   Total Sources of Funds                2,937       777        2,160          438    1,722
----------------------------------------------------------------------------------------------------------------------------------

 $  43,063 $ 35,796    4.92%      4.67%   Net Interest Margin                 $ 4,125   $ 2,046      $ 2,079          275    1,804
==================================================================================================================================
</TABLE>



                                       19
<PAGE>

Table 4.

                    Cardinal Financial Corporation and Subsidiaries
                               Allowance for Loan Losses
                                 (Dollars in thousands)
                                      (Unaudited)

                                                       2000             1999
                                                   -------------   -------------
Beginning balance, January 1                          $   726         $   212

Provision for loan losses                                 531             401

Assumed allowance for loan losses from acquisition
   of Heritage                                            421

Loans charged off:
            Commercial                                      -               -
            Real estate - commercial                        -               -
            Real estate - construction                      -               -
            Real estate - residential                       -               -
            Home equity lines                               -               -
            Consumer                                        -               -
--------------------------------------------------------------------------------
            Total loans charged off                         -               -

Recoveries:
            Commercial                                      -               -
            Real estate - commercial                        -               -
            Real estate - construction                      -               -
            Real estate - residential                       -               -
            Home equity lines                               -               -
            Consumer                                        -               -
--------------------------------------------------------------------------------
            Total recoveries                                -               -

Net charge-offs                                             -               -

Balance, September 30                                 $ 1,678         $   613
================================================================================

<TABLE>
<CAPTION>
                                      September 30,      December 31,       September 30,
                                          2000               1999               1999
                                      ------------       ------------       ------------
<S>                                   <C>                <C>                <C>
Loans:
Balance at period end                 $    140,210       $     68,147       $     44,501
Allowance for loan losses to
Period end loans                              1.20%              1.07%              1.38%

Less: Business Manager                $      3,309       $      1,522       $        948
Less: Purchased Loans                        6,444              7,687                  -
                                      ------------       ------------       ------------
Adjusted Loan Balance                 $    130,457       $     58,938       $     43,553

Allowance for loan losses to
Period end adjusted loans                     1.29%              1.23%              1.41%
</TABLE>





                                       20
<PAGE>

Table 5.

                Cardinal Financial Corporation and Subsidiaries
                               Capital Components
                 As of September 30, 2000 and December 31, 1999
                             (Dollars in thousands)
                                  (Unaudited)
<TABLE>
<CAPTION>
                                                                                                       To Be Well
                                                                                                    Capitalized Under
                                                                               For Capital          Prompt Corrective
                                                            Actual          Adequacy Purposes       Action Provisions
                                                      -----------------     --------------------------------------------
                                                       Amount    Ratio       Amount     Ratio         Amount     Ratio
<S>                                                   <C>        <C>        <C>          <C>         <C>         <C>
As of September 30, 2000
Total risk based capital to risk weighted assets      $ 36,540   22.22%     $ 13,155  >  8.00%       $ 16,443  > 10.00%
                                                                                      -                        -
Tier I capital to risk weighted assets                  35,321   21.48%        6,577  >  4.00%          9,866  > 6.00%
Leverage ratio total risk based capital to total                                      -                        -
 assets                                                 36,540   17.70%        8,256  >  4.00%         10,320  > 5.00%
                                                                                      -                        -
------------------------------------------------------------------------------------------------------------------------

As of  December 31, 1999
Total risk based capital to risk weighted assets      $ 31,585   38.75%      $ 6,521  >  8.00%        $ 8,151  > 10.00%
                                                                                      -                        -
Tier I capital to risk weighted assets                  30,858   37.86%        3,261  >  4.00%          4,891  > 6.00%
Leverage ratio total risk based capital to total                                      -                        -
 assets                                                 31,585   32.55%        3,881  >  4.00%          4,852  > 5.00%
                                                                                      -                        -
</TABLE>






                                       21
<PAGE>

Table 6.

                Cardinal Financial Corporation and Subsidiaries
                     Interest Rate Sensitivity Gap Analysis
                            As of September 30, 2000
                             (Dollars in thousands)
                                  (Unaudited)
<TABLE>
<CAPTION>
                                                 -----------------------------------------------------------------------------------
                                                         1-90         91-180       181-365        1-5         Over 5
                                                         Days          Days          Days        Years         Years         TOTAL
------------------------------------------------------------------------------------------------------------------------------------
                     ASSETS
------------------------------------------------------------------------------------------------------------------------------------
<S>                                                   <C>           <C>          <C>          <C>           <C>           <C>
Investment securities available-for-sale
U.S. Government agency securities                     $    928      $      -     $       -    $   6,906     $     440     $   8,274
Mortgage-backed securities                                  57             -             -        1,065             -         1,122
------------------------------------------------------------------------------------------------------------------------------------
Total investment securities available-for-sale             985             -             -        7,971           440         9,396
------------------------------------------------------------------------------------------------------------------------------------
Other investments                                            -             -             -            -         1,398         1,398
------------------------------------------------------------------------------------------------------------------------------------
Federal funds sold                                      31,809             -             -            -             -        31,809
------------------------------------------------------------------------------------------------------------------------------------
Loans
Commercial -fixed                                        2,903         1,013         1,942        4,405         2,472        12,735
Commercial - variable                                   24,082         4,719         1,057       41,823        10,346        82,027
Real estate - construction fixed                             -             -             -            -             -             -
Real estate - construction variable                      5,137             -             -            -             -         5,137
Real estate - residential fixed                             18            21            43        2,792           667         3,541
Real estate - residential variable                       3,450         2,171           132        4,658         3,248        13,659
Home equity lines                                       13,136             -             -            -             -        13,136
Consumer - fixed                                           552           106           213        3,248         1,225         5,344
Consumer - variable                                      1,134           267             4          795         2,431         4,631
------------------------------------------------------------------------------------------------------------------------------------
Loans receivable                                        50,412         8,297         3,391       57,721        20,389       140,210
------------------------------------------------------------------------------------------------------------------------------------
Total Earning Assets                                    83,206         8,297         3,391       65,692        22,227       182,813
------------------------------------------------------------------------------------------------------------------------------------
Cumulative Rate Sensitive Assets                      $ 83,206      $ 91,503     $  94,894    $ 160,586     $ 182,813
------------------------------------------------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------------------------------------------------
Liabilities and Shareholders' Equity
------------------------------------------------------------------------------------------------------------------------------------
Deposits
Demand deposits                                       $ 25,756      $  5,456     $   2,290    $   2,201     $       -     $  35,703
Interest checking                                        3,940             -             -            -             -         3,940
Statement savings                                        2,124         2,696         3,569        3,429             -        11,818
Money market accounts                                   14,088         5,921         1,986        1,908             -        23,903
Certificates of deposit - fixed                          5,461         9,738        31,341       11,345             -        57,885
Certificates of deposit - no penalty                       106         2,395         8,413        9,901             -        20,815
------------------------------------------------------------------------------------------------------------------------------------
Total Deposits                                          51,475        26,206        47,599       28,784             -       154,064
------------------------------------------------------------------------------------------------------------------------------------
Borrowings - short term                                  9,394             -             -            -             -         9,394
------------------------------------------------------------------------------------------------------------------------------------
Total Interest Bearing Liabilities                      60,869        26,206        47,599       28,784             -     $ 163,458
------------------------------------------------------------------------------------------------------------------------------------
Cumulative Rate Sensitive Liabilities                 $ 60,869     $  87,075     $ 134,674    $ 163,458     $ 163,458
------------------------------------------------------------------------------------------------------------------------------------

Gap                                                   $ 22,337     $ (17,909)    $ (44,208)   $  36,908     $  22,227
Cumulative Gap                                          22,337         4,428       (39,780)      (1,534)       20,693
Gap/ Total Assets                                        10.82%        -8.68%       -21.42%       17.88%        10.77%
Cumulative Gap/ Total Assets                             10.82%         2.15%       -19.27%       -0.74%        10.03%
Rate Sensitive Assets/ Rate Sensitive Liabilities         1.37          0.32          0.07         2.33           N/A
Cumulative Rate Sensitive Assets/
          Cumulative Rate Sensitive Liabilities           1.37          1.05          0.70         0.99          1.13

</TABLE>



                                       22
<PAGE>

                          PART II -- OTHER INFORMATION

Item 1.  Legal Proceedings

              Not applicable.

Item 2.  Changes in Securities and Use of Proceeds

              Not applicable.

Item 3.  Defaults Upon Senior Securities

              Not applicable.

Item 4.  Submission of Matters to a Vote of Security Holders

              A Special  Meeting of  Shareholders  (the  "Meeting")  of Cardinal
              Financial  Corporation  (the "Company") was held on July 25, 2000.
              At the Meeting, the Shareholders voted to (i) approve the issuance
              of shares of the Company's 7.25% Cumulative  Convertible Preferred
              Stock, Series A, under the Amended and Restated Agreement and Plan
              of  Reorganization  dated June 19,  2000 by and  between  Heritage
              Bancorp, Inc. ("Heritage"), Cardinal Merger Corp. and the Company,
              which  provided for  Heritage to be merged with and into  Cardinal
              Merger Corp. and (ii) elect three of Heritage's directors to serve
              on the Company's board of directors.  The results of the voting on
              these matters are set forth below.
<TABLE>
<CAPTION>
                                               Approval of Issuance of Preferred Stock

                                                                                                          Broker
                                                         For             Against           Abstain       Non-Votes
<S>                                                   <C>                <C>               <C>
                 Issuance of Preferred Stock          2,474,472          106,450           18,000           --
</TABLE>
<TABLE>
<CAPTION>
                                                        Election of Directors

                                                                  For                       Withheld
<S>                                                            <C>                           <C>
                        Harold E. Lieding                      3,441,312                     92,567
                        Kevin B. Tighe                         3,450,012                     83,867
                        George P. Shafran                      3,450,012                     83,867
</TABLE>

              No other  matters  were  voted  upon at the  Meeting or during the
              quarter for which this report is filed.

Item 5.  Other Information

              Not applicable.



                                       23
<PAGE>

Item 6.  Exhibits and Reports on Form 8-K

              (a)    Exhibits

                     27     Financial Data Schedule (filed electronically only).

              (b)    Reports on Form 8-K

                     On September 18, 2000,  the Company filed a Current  Report
                     on Form 8-K dated September 1, 2000 to disclose, under Item
                     2, the  consummation  of the  merger of  Heritage  Bancorp,
                     Inc., a Virginia corporation, with and into Cardinal Merger
                     Corp., a Virginia  corporation and wholly owned  subsidiary
                     of the Company.













                                       24
<PAGE>

                                   SIGNATURES

         In accordance with the requirements of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.


                                           CARDINAL FINANCIAL CORPORATION



Date:  November 20, 2000                   /s/ L. Burwell Gunn, Jr.
                                           -------------------------------------
                                           L. Burwell Gunn, Jr.
                                           President and Chief Executive Officer



Date:  November 20, 2000                   /s/ Joseph L. Borrelli
                                           -------------------------------------
                                           Joseph L. Borrelli
                                           Chief Financial Officer