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Preliminary Proxy Statement
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Confidential, for Use of the Commission Only (as permitted by Rule14a-6(e)(2))
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Definitive Proxy Statement
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Definitive Additional Materials
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CARDINAL BANKSHARES CORPORATION
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(Name of Registrant as Specified in Its Charter)
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SCHALLER EQUITY PARTNERS, A NORTH CAROLINA LIMITED PARTNERSHIP
SCHALLER EQUITY MANAGEMENT, INC.
SCHALLER INVESTMENT GROUP INCORPORATED
COALITION PROXY HOLDING AND VOTING SPV, INC.
DOUGLAS E. SCHALLER
T. MAUYER GALLIMORE
BOBBY L. GARDNER, SR.
JOHN PAUL HOUSTON
CAROL S. JARRATT
R. DEVEREUX JARRATT
JAMES W. SHORTT
JOHN MICHAEL TURMAN
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(Name of Persons(s) Filing Proxy Statement, if Other Than the Registrant)
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Payment of Filing Fee (Check the appropriate box):
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Title of each class of securities to which transaction applies:
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Aggregate number of securities to which transaction applies:
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Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule 0-11 (set forth the amount on which the filing fee is calculated and state how it was determined):
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Check box if any part of the fee is offset as provided by Exchange Act Rule 0-11(a)(2) and identify the filing for which the offsetting fee
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Date Filed:
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Coalition to Improve the Bank of Floyd
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T. Mauyer Gallimore
Bobby L. Gardner, Sr.
John Paul Houston
Carol S. Jarratt
R. Devereux Jarratt
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c/o James W. Shortt
P.O. Box 900
Floyd, Virginia 24091
540-745-3574
May 7, 2012
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Douglas E. Schaller
James W. Shortt
John Michael Turman
Schaller Equity Partners
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The Bank of Floyd’s substandard loans increased from $5.5 million at December 31, 2010 to $15.7 million at December 31, 2011, or an increase of 185% in one year.
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The Bank of Floyd’s total nonperforming assets (loans in default plus foreclosed loans) have increased from $3.1 million at December 31, 2008 to $15.4 million at December 31, 2011. That’s a 393% increase over three years, and it accounts for a whopping 11.8% of total loans outstanding at December 31, 2011. |
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Continue with the same Board and expect more of the same, which we find unacceptable and believe many other shareholders do as well, OR
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Elect our three nominees -- T. Mauyer Gallimore, John Paul Houston and James W. Shortt -- as new members of the Board, and allow them to bring fresh perspectives and independence from the leadership of the past, while also bringing deep personal connections to our community that the Bank serves.
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Coalition to Improve the Bank of Floyd
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T. Mauyer Gallimore
Bobby L. Gardner, Sr.
John Paul Houston
Carol S. Jarratt
R. Devereux Jarratt
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c/o James W. Shortt
P.O. Box 900
Floyd, Virginia 24091
540-745-3574
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Douglas E. Schaller
James W. Shortt
John Michael Turman
Schaller Equity Partners
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To vote for our Nominees, if you have not already done so, sign, date and promptly return our GOLD proxy card.
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Do NOT sign or return the Company’s “white” proxy card; discard it and any other proxy card you may receive from the Company.
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If you already returned the Company’s “white” proxy card, you may still change your mind and use our GOLD proxy card to vote for our three nominees. Only the last dated proxy card will count at the annual meeting.
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Additional Information and Where to Find It
Coalition to Improve the Bank of Floyd has filed a definitive proxy statement, a supplement to it and related materials with the Securities and Exchange Commission (“SEC”) in connection with the Coalition’s solicitation of proxies to elect its Nominees to the Company’s Board of Directors at the 2012 Annual Meeting of Shareholders. Shareholders should read the Coalition’s definitive proxy statement, supplement and other publicly-filed proxy materials as they become available, because they contain important information. Information regarding the direct and indirect interests of each participant in the Coalition’s solicitation of proxies is included in the Coalition’s proxy materials filed with the SEC, which may be accessed without charge at https://materials.proxyvote.com/141478 and at the SEC’s website at www.sec.gov. |
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May 7, 2012
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direct fax 336 734 2665
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Attention: | Christina Chalk, Senior Special Counsel | |
Re: | Cardinal Bankshares Corporation (the “Company”) | |
Definitive Proxy Statement filed on April 20, 2012
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Filed by Schaller Equity Partners, et al.
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File No. 0-28780
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Sincerely,
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/s/ W. Randy Eaddy | |
W. Randy Eaddy |