As the stomach churns: The Bank of Floyd soap opera

Bank of Floyd director Howard Conduf after the shareholders meeting.

Lots of speculation and talk over breakfast tables this morning about what will or will not happen at The Bank of Floyd after shareholders Tuesday tossed out three incumbent directors — including CEO and President Leon Moore and Executive Vice President Michael Larrowe — and elected three newcomers backed by North Carolina investor Doug Schaller, who wants a change in the bank’s management team.

Moore finished last in the nine-person race for six board seats but the Bank has remained silent on the outcome of the election, even though the Securities and Exchange Commission ratified the results Wednesday.  The bank did file a contract amendment on Moore’s employment — approved by the old board just days before the shareholder meeting –that extended his contract through the end of the year and provided health insurance and other benefits for he and his wife for five more years — a move that some see as a last-ditch attempt to protect the long-time Bank boss from the new board members who want him out.

Also uncertain is the status of the three incumbents re-elected.  The board promised to resign en masse if even one of the Schaller-backed candidates won a seat.  We’re still waiting to see if audit committee chairman Howard Conduff — a major shareholder — along with Harris Warner and Kevin Mitchell carry through with their threat.

My story in today’s Floyd Press details the actions at the shareholders meeting.

Stay tuned.

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