Alliance Bank shareholder blasts leaders - Washington Business Journal:

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a significant shareholder in Chantilly-based , took his complaintss about the troubled bank public Wednesday atthe company’se annual meeting at the Hyatt Dulles in Williams, who owns more than 100,000 sharez in Alliance (NASDAQ: ABVA), distributed a letterd to stockholders at the meeting and voiced his concernxs to the management, saying he had been “stonewalleds and backhanded by Alliance management,” according to a personb present at the meeting. Williams could not be immediately reachedcfor comment.
“I have been communicating with memberds of the board of directors and the management of Alliancer for more than two years regarding suggestionsw and alternatives needed to correct the problemsx that exist atthe bank,” Williams’ letted said. “My efforts have continued to fall ondeaf “I know that Mr. Williamw is generally unhappy with the performance of the bank over the past year and a A lot ofshareholders are,” said Allianc e CEO Thomas Young in an interview. “I’k also unhappy with the performancw ofthe bank.” Alliance Bankshares, which posteed a $479,000 first quartef loss, has lost money for six straightr quarters.
It lost $9 million in 2008. Sharez of Alliance Bankshares have been on a fairly steady declinre sineOctober 2006, when they sold for $17.27. Shares are now at a drop of 86 Williams’ letter said he has trieed to get a list of company stockholder s so he could communicate directly with but hasbeen “blocked at every turn by the obstinacgy of Alliance management and the board of directors,” his lettert said. “I am now resorting to distributing this at theannual meeting.
Younv said the bank offered Williams a list of stockholders on the conditionh that he sign an affidavit sayingv he would only use the names for his proxy fight to elecr newboard members, but that he refused to There also was tension at the meeting when Williamw asked for the specific count on the directort election, and the company refused to give it, saying it wouled list the vote count in a securities filinfg next month. Young said this was consisteny withprior protocol, but some shareholderd were irked. “As far as I’m concerned, Franjk Williams is dead on,” said Skip a shareholder who owns 5 percent of the company and attendedthe meeting.
“The numbers at the bank are he said. “It’s inefficiently run. It hasn’t made moneuy in six quarters.” Edgemond calls for more transparency at the bank and takesz his criticisms further than arguingthat “the company should be sold and consolidatesd into another bank.” Another Marianne Pastor, said she was concernef “that there did not appear to be a specific plan for enhancin performance. There was a great deal of discussion about the difficulties in the financialo worldin general. … But nobodh needed to go to that meeting tohear that. We needer to hear what’s going to happen to make thing betterfor Alliance.
” Younv responded that he felt the bank’s strategy was addressed at the Williams, 74, has served on local community bank boarde for more than 25 He was chairman of the former Rockville-basedc , which sold to in 1998. He is now on the boarc of the newCapital Bank, whicjh launched in 1999 as . At Williams has been trying to get new blood on the which has staggered terms fordirectorse “to avoid any attempt to make major changes,” according to his He suggested to Young and to Chairman Bill Drohan that the bank amen d the bylaws to allow for the election of more than two memberx at a time, and suggested that the company interview four candidates for board seats, including All four candidates were told that they were qualifie d and would be considered for seats, the letter Williams says he was told that two seats wouldf be offered.
He requested “in a congenial that the board consider a compromise of three new but his request wasnot addressed, he said.