Cardinal Bankshares in Floyd, Va., is switching leaders again, though it is unclear when the new chief executive will step in.
The $266 million-asset company on Tuesday parted ways with Michael Larrowe, who had been CEO since a 2012 shareholder revolt ousted his predecessor. Larrowe, told the Roanoke Times that the board wanted to go in a different direction, declining to comment further.
The situation became more confusing, when the company issued a press release stating that Mark Smith, Cardinal's chief lending officer, had become interim CEO and president. Ten minutes later, Cardinal rescinded the release, stating that the Federal Reserve Board must approve the promotion before Smith can take over the roles.
A second release, issued later Tuesday, noted that Larrowe had left but made no mention of Smith. "We did hit the send button prematurely" with the first release, Smith told the Roanoke Times.
Larrowe became CEO in June 2012 after investor Doug Schaller successfully wrested control of the board, which in turn dismissed Lean Moore. Larrowe, who was originally among the ousted directors, made amends with the new directors and was tapped to replace Moore.
The company earned $983,000 in the second quarter, though the results were padded by a nearly $1.6 million credit to the loan-loss provision. Noninterest expenses jumped 32% from a year earlier, to $2.6 million.