Cardinal in Va. Committed to Independent Path, New CEO Says

Cardinal Bankshares in Floyd, Va., is developing a comprehensive plan just weeks after a proxy battle brought in three new directors and led to the ouster of its chief executive.

The board is also committed to keeping the company independent, Michael Larrowe, Cardinal's new president and CEO, wrote in a letter to shareholders filed Thursday with the Securities and Exchange Commission in conjunction with a dividend announcement.

Directors are in the "early stages of developing a comprehensive plan," he wrote. The plan "will focus on ways to make our operations more efficient and our customer experience more rewarding. Our new board is energized and united with management in continuing the past successes of our bank."

The board tapped Larrowe as the $272 million-asset company's president and CEO, and restored his director status, earlier this month. He had been handling day-to-day operations since late May, when R. Leon Moore went on leave shortly after shareholders voted him off the board. Schaller Equity Partners in Winston-Salem, N.C., a long-time critic of the company's management, successfully added three directors at last month's annual meeting.