Win tickets to see the smash hit musical Mamma Mia at the Roanoke Civic Center. Two winners will each receive four tickets!
“Good change is already here. More is on the way,” new CEO Mike Larrowe said.
Wednesday, April 24, 2013
The shareholders of Floyd’s small community bank last year decided a bitter public fight for control of the bank by electing three newcomers to the institution’s board of directors. They vowed to make changes.
This year’s annual meeting of Cardinal Bankshares , the parent company of Bank of Floyd, went forward Wednesday with none of the acrimony of the 2012 meeting. The tone was upbeat.
“Good change is already here. More is on the way,” said Mike Larrowe , who was promoted by the new leadership from executive vice president to CEO.
Shortly after last year’s meeting, Larrowe succeeded longtime bank leader Leon Moore , who commanded the podium last year but was not present Wednesday. Nor was Douglas Schaller , a Winston-Salem, N.C., investor who first called for new leadership and whose investment partnership was then and still is the bank’s largest shareholder.
More products and services and an improved balance sheet are among the key accomplishments, Larrowe said.
Bank of Floyd now offers a 30-year fixed mortgage and home equity line of credit to plug gaps in its credit offerings. Mobile banking is available with easy money transfers using a smartphone.
The company has spent about $1 million on information technology and support, Larrowe said.
Non performing assets — loans not being repaid as agreed — have fallen 37 percent, while net interest margin — the difference between what the bank pays on deposits and earns in interest — is up more than three-quarters of a percentage point, said Alan Dickerson , CFO.
On the negative side, the bank lost $4.2 million in 2012 after what Larrowe said was a deliberately conservative loan-portfolio review by the new leadership designed to clean up its books. But it is sitting on a foundation of $28 million in capital with which it could profitably expand lending in coming years, Larrowe said.
Much about the bank hasn’t changed. It still has about 70 employees. There are seven locations. It provides banking services to Floyd County government, various local businesses and area residents.
After hearing the reports, shareholders re-elected the incumbent board consisting of the three change agents from 2012 — John Paul Houston, Mauyer Gallimore and James Shortt — as well as Larrowe and Howard Conduff, a member of the prior board leadership who was invited to join the new guard.
Bobby Gardner, who owns a funeral home in Floyd, told the annual meeting he was delighted to see the people in the room and the people at the bank smiling.
Conduff shouted: “Hallelujah!”
“We got what we wanted by changing the bank and changing the directors,” Gardiner said after the meeting.
Weather JournalStorm track isn't very snowy for us