Three New Directors Elected to Board of Cardinal Bankshares Corporation

^{Published on 2012-05-23 10:30:30 - Market Wire}
 

Schaller Equity Partners Announces Proxy Context Success: Three New Directors Elected to... -- WINSTON-SALEM, N.C., May 23, 2012 /PRNewswire/ --

WINSTON-SALEM, N.C., May 23, 2012 /PRNewswire/ -- Schaller Equity Partners ("Schaller") announced today that Coalition to Improve the Bank of Floyd, of which Schaller and its affiliates were members, succeeded in its proxy solicitation to elect three new directors to the Board of  Directors of Cardinal Bankshares Corporation ("Cardinal") (OTCBB: CDBK) at Cardinal's annual shareholders meeting held on May 22, 2012.  Cardinal is the public holding company for the Bank of Floyd.

The three new directors, who were supported by the Coalition, are T. Mauyer Gallimore, John Paul Houston and James W. Shortt, each a local Floyd, Virginia resident and businessman. 

Douglas E. Schaller, President of Schaller Equity Partners, commented:  "Obviously, we are pleased that shareholder democracy had a victory yesterday.  Mauyer Gallimore, John Paul Houston and Jim Shortt are strong, thoughtful leaders who love the Bank of Floyd and the Floyd community, and they will provide the kind of independent, strategic direction the Bank needs to be all that it can be."

The other three highest vote recipients ― each an incumbent director who was nominated by Cardinal ― are Dr. Joseph Howard Conduff, Jr., Kevin D. Mitchell and G. Harris Warner, Jr.  Presently, it is not known whether the latter three will serve on the Board, because Cardinal previously indicated that none of its nominees would serve if any of the Coalition's three nominees were elected.

Mr. Schaller continued, "As a personal matter, I hope Dr. Conduff and Messrs. Mitchell and Warner will answer the shareholders' call and join the new directors to serve the Bank.  In any case, I believe the stage is set with exceptionally talented new actors who will deliver a great performance for the Bank, its shareowners, employees and the community.  I'm looking forward to watching the success they achieve from the audience."

The election results from Cardinal's annual shareholders meeting were certified today by the independent Inspector of Election, Carl T. Hagberg and Associates, and are expected to be announced by Cardinal in accordance with its legal obligations and compliance procedures.

Schaller Equity Partners owns approximately 9.8% of Cardinal's stock.  Its concerns about the management and strategic direction of Cardinal and the Bank resonated with other Floyd area residents to form the catalyst for the Coalition's commencement of its proxy context.  Other members of the Coalition were Bobby L. Gardner, Carol S. and R. Devereux Jarratt, and John Michael Turman.

SOURCE Schaller Equity Partners