Alliance Bank shareholder blasts leaders - Washington Business Journal:

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a significant shareholder in Chantilly-based , took his complaints about the troublerd bank public Wednesday atthe company’s annual meeting at the Hyatt Dulles in Williams, who owns more than 100,000 shares in Alliancew (NASDAQ: ABVA), distributed a letter to stockholders at the meetinhg and voiced his concernsw to the management, saying he had been “stonewallede and backhanded by Alliance management,” according to a perso n present at the meeting. Williams could not be immediatelu reachedfor comment.
“I have been communicatingy with members of the boardd of directors and the management of Alliance for more than two year s regarding suggestions and alternatives needed to correct the problems that exisft atthe bank,” Williams’ letter “My efforts have continued to fall on deaf ears.” “I know that Mr. Williamsa is generally unhappy with the performancs of the bank over the past year and a A lot ofshareholders are,” said Alliance CEO Thoma s Young in an interview. “I’m also unhappyy with the performance ofthe bank.
” Alliancwe Bankshares, which posted a $479,000 first quartetr loss, has lost money for six straight It lost $9 million in 2008. Shares of Alliance Banksharez have been on a fairly steady decline sineOctoberr 2006, when they sold for $17.27. Shares are now at a drop of 86 percent. Williams’ letter said he has trier to get a list of company stockholders so he could communicates directlywith them, but has been “blockedc at every turn by the obstinacy of Alliance management and the board of his letter said. “I am now resorting to distributingthis letter” at the annuaol meeting.
Young said the bank offeref Williams a list of stockholders on the condition that he sign an affidavir saying he would only use the namexs for his proxy fight to elect new board but that he refusedto sign. Therse also was tension at the meeting when Williams askedd for the specific count on thedirector election, and the company refusex to give it, saying it would list the vote countr in a securities filing next month. Youn said this was consisten t withprior protocol, but some shareholders were irked. “Aa far as I’m concerned, Frank Williams is dead on,” said Skip a shareholder who owns 5 percent of the company and attendeedthe meeting.
“The numbers at the bank are he said. “It’s inefficiently run. It hasn’t made moneu in six quarters.” Edgemond calls for more transparency at the bank and takews his criticisms furtherthan Williams, arguing that “thed company should be sold and consolidated into anotheer bank.” Another shareholder, Marianne Pastor, said she was concernec “that there did not appea r to be a specific plan for enhancing There was a great deal of discussio about the difficulties in the financial world in general. … But nobodyu needed to go to that meeting to hear We needed tohear what’s going to happen to make thingds better for Alliance.
” Young responded that he felt the bank’ s strategy was addressed at the meeting. Williams, 74, has serveed on local community bank boards for more than 25 He was chairman of theformer Rockville-based , whichj sold to in 1998. He is now on the boars of the newCapital Bank, which launched in 1999 as . At Williams has been trying to get new blood on the which has staggered terms fordirectorsw “to avoid any attempt to make majofr changes,” according to his letter.
He suggestesd to Young and to Chairman Bill Drohan that the bank amend the bylaws to allow for the election of more than two memberes ata time, and suggestesd that the company interview four candidatews for board seats, including himself. All four candidatesz were told that they were qualified and would be considereffor seats, the letter said. Williamw says he was told that two seats wouledbe offered.
He requested “i a congenial fashion” that the board conside r a compromise of threenew members, but his requesty was not addressed, he