The battle for The Bank of Floyd

A filing last week  by the North Carolina investor looking to take over control of Cardinal Bankshares — the holding company of The Bank of Floyd — brings five locals with strong community ties. including one with a historical family role into the battle.

Schaller Equity Partners — controlled by Douglas Schlaller — is proposing replacing five of Cardinal’s current board with five strong community voices, including funeral home owner Bobby Gardiner, investment counselor, community farmer and former Farm Bureau rep John Paul Houston, attorney Jim Shortt, realtor Mauyer Gallimore and Carol Jarratt — a family name firmly rooted in the bank’s history.

This should make for an interesting shareholder meeting in April.

For big-money investors like Schallar, the game is nearly always about money.  He owns 9.8 percent of the bank’s stock and is Cardinal Bankshare’s largest single shareholder.  The stock is currently trading at $13.25 a share. Over the past year it has risen to as much as $18.50 a share and as low at $12.80 but usually hovers around $13 to $14 dollars.

But his slate of potential board members suggests he also has support from some local heavy hitters

The takeover battle comes at a critical time for the locally-owned bank.  The Floyd County Board of Supervisors is expected to vote Tuesday night on whether or not to move the county’s banking business to rival StellarOne.

Stay tuned.  This is going to get both interesting and probably ugly.

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