defa14a
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 14A
(Rule 14a-101)
INFORMATION REQUIRED IN PROXY STATEMENT
SCHEDULE 14A INFORMATION
Proxy Statement Pursuant to Section 14(a) of the Securities
Exchange Act of 1934 (Amendment No. _ )
Filed by the Registrant þ
Filed by a Party other than the Registrant o
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Preliminary Proxy Statement
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o Confidential, for Use of the Commission Only (as |
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permitted by Rule 14a-6(e)(2)) |
o Definitive Proxy Statement |
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þ Definitive Additional Materials |
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o Soliciting Material Pursuant to §240.14a-12 |
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Fauquier
Bankshares, Inc.
(Name of Registrant as Specified in Its Charter)
(Name of Person(s) Filing Proxy Statement if other than the Registrant)
Payment of Filing Fee (Check the appropriate box):
þ No fee required.
o Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11.
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identify the filing for which the offsetting fee was paid previously. Identify the previous
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(1) Amount previously paid: |
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(2) Form, schedule or registration statement no.: |
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(3) Filing party: |
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(4) Date filed: |
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May 4, 2009
Despite Hunton Tiffanys NEW story, we believe his primary mission
remains to sell our Bank!
Dear Shareholders:
Quite frankly, Mr. Tiffanys most recent letter has us confused. Maybe its because his new story is SO
different from what weve been hearing from him these last couple of years.
We
believe actions speak louder than words, and were going to lay out Mr. Tiffanys actions and let YOU, our shareholders, decide.
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In an email Mr. Tiffany sent on May 1, 2008 to ten individuals including board members and
management, he stated, The board some day may begin to see that the competitive advantage
of being an independent community bank is no longer a reality for FBSS. |
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In the first week of October 2008, Mr. Tiffany hosted a luncheon at his home inviting a number
of local business people and former directors and further discussed his plans to arrange a sale of
the Bank. |
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Soon thereafter, Mr. Tiffany paid a visit to a Senior Mid-Atlantic regional officer of PNC Bank and
tried to convince him that a PNC acquisition of The Fauquier Bank would make good sense. |
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On October 23, 2008, five former Fauquier Bank board members were so displeased with Mr.
Tiffanys repeated attempts to shop our Bank that they sent a letter to Mr. Tiffany in which
they stated (in part) that they feel strongly that the best course for the company is to remain
an independently owned community bank. |
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In a letter dated February 11, 2009, seven former Fauquier Bank board members asked Mr.
Tiffany (again) to cease and desist from his ongoing efforts and stated to him (in part): We do
not agree with the information you have been distributing that presents the bank, its Directors
and Management in a negative light, and do not want our names associated with such
information. |
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Finally, in a March 2009 conversation with a current director, Mr. Tiffany stated that he had
numerous discussions with PNC about a possible acquisition of The Fauquier Bank. |
Over
the past couple of years, we believe Mr. Tiffany also has
had countless other conversations with
current and former board members, management, community members and certain shareholders
regarding this same topic: the sale of The Fauquier Bank to a third party.
So...
do YOU believe Mr. Tiffanys new words OR his actions over a multi-year period???
We, the undersigned current directors of the Bank, STRONGLY urge you to help us defeat Mr. Tiffany
and his groups effort to irreparably change The Fauquier Bank. Our Bank doesnt need to be sold to an
outside party in order to continue to be a good, long-term investment, while maintaining its key role in
the growth of our community.
Besides...why would their group want to sell Fauquier Bank to a large, multi-state bank at this
PARTICULAR time of diminished stock values and economic turmoil???
Weve seen how this works layoffs, higher fees, branch closings and the inability of customers to talk
to local decision makers. We believe a sale of our Bank now could potentially leave YOU with nothing in
the way of potential future growth in share price and dividends when our economy returns to
prosperity.
One thing Mr. Tiffany and his group HAVE done is present a lot of cherry-picked data which
we believe distorts the TRUE picture that The Fauquier Bank continues to be a well-run bank.
Lets look at performance. They have used data in meetings held around the community and in their
letter to characterize the Banks performance as inferior to our peers, when in fact it is just the opposite.
We believe that compared to any reasonable standard, The Fauquier Banks performance has been
among the best. In fact, in their June 2008 issue, U.S. Banker magazine named The Fauquier Bank as
one of the top community banks in the country. The charts in our 2008 Annual Report clearly
demonstrate our Banks superior performance compared to the average of our peers. The Banks
careful management of credit quality, its strong capital and liquidity position, and the day-to-day
commitment to excellence of senior management and the board all merit
your continued support.
Here are a few more things to consider as you read the statements of the dissidents regarding The
Fauquier Banks performance:
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Since January 2008, 555 banks have taken federal support through the TARP/CAP program,
including 22 in Virginia. Not The Fauquier Bank. |
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Since January 2008, 126 banks have cut their dividends, and 73 have suspended dividends
altogether. Not The Fauquier Bank. |
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In the most recent 6 quarters ending December 31 2008, 615 out of 1041 public traded banks
reported losses. Not The Fauquier Bank. |
We are pleased but not satisfied with the Banks performance these past two years, in this
tough economy. Management and the board have carefully plotted our strategy to position the Bank to
grow profitably as this current slump ends. This is not the first time the Bank has weathered a
tough economy successfully.
Another diversion the opposition presents in its materials is related to compensation.
What Mr. Tiffany doesnt tell you when he discusses compensation matters, is that when you
compare his compensation under prior, less extensive SEC disclosure requirements, to our disclosure
under todays rules, in a bit of irony, it turns out when the same rules are applied, Mr. Tiffany
was actually better compensated over his last five years as CEO of our Bank than the current CEO
has been for his most recent five years. This despite the fact that under Mr. Tiffanys tenure Bank
assets averaged only two-thirds the Banks current size, the Banks stock price averaged a little
over one-half the current average, and the total net income was substantially lower. Weve rerun
Mr. Tiffanys compensation as if it were to be disclosed under todays rules.(SEE ATTACHMENT A.)
While compensation is always an attention grabber, the details should put your mind at ease about
the overall fairness of our current compensation program.
Contrary to what Mr. Tiffany claims we have been responsive.
Over the last year and a half we had 17 in-person meetings with members of the opposition group and
sent 13 separate email and letter responses to their questions. Clearly, Fauquier management and
the board went to great lengths to address their concerns, even as members of this dissident group
engaged in their own campaign to portray our Bank negatively.
Our former directors are opposed to the actions being taken by the insurgent group.
We have heard from eight of our former directors about the actions being taken by the insurgent
group. These individuals have a combined 225 years of service as directors of your Bank and hold a
significant stake in the company, collectively owning 12.8% of our outstanding shares. In these
meetings and calls they have voiced their strong opposition to the actions being taken by the
insurgent group and have confirmed their support of the current management team, the current
Chairman, and the current Board of Directors. Like us, they are firmly committed to the Banks
future and are deeply concerned over the actions of the dissidents to further a sale of our Bank.
We, the undersigned current directors, some of whom served with Mr. Tiffany for many years, have
ALL committed to support the Banks slate of director nominees and the proposals outlined on the
WHITE proxy card. We encourage you to allow our official representatives to speak with you about
this most important vote, and encourage you to talk with any of the signers below about their
support of our current management team.
Thank you for taking the time to read this letter. Enclosed you will find another WHITE proxy card.
We again ask you to please sign, date and return the WHITE proxy card today, or cast your vote via
internet or telephone. You are also urged to discard any blue proxy that you receive from the
opposition.
Remember, supporting the Boards nominees is a FAR better choice than a slate whose actions
support selling your Bank at this most inopportune time.
For a strong, independent community bank,
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C. H. Lawrence, Jr.
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John B. Adams, Jr. |
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Randy K. Ferrell
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Randolph D. Frostick |
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Eric P. Graap
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Jay B. Keyser |
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Douglas C. Larson
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Randolph T. Minter |
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Brian S. Montgomery
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John J. Norman, Jr. |
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P. Kurtis Rodgers
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Sterling T. Strange, III |
Additional Information and Where To Find It
This letter is solicitation material in respect of the matters to be considered at the 2009 Annual
Meeting of Shareholders. On April 20, 2009, Fauquier Bankshares, Inc. (the Company) filed a
definitive proxy statement with the Securities and Exchange Commission (the SEC) and has mailed
the definitive proxy statement to the Companys shareholders. WE URGE SHAREHOLDERS AND INVESTORS TO
READ THE PROXY STATEMENT ALONG WITH ANY OTHER RELEVANT DOCUMENTS FILED OR THAT WILL BE FILED WITH
THE SEC BECAUSE THEY CONTAIN IMPORTANT INFORMATION. A free copy of the proxy statement and other
related documents filed by the Company may be obtained at the SECs website at www.sec.gov.
The Companys proxy statement and other related documents may also be obtained by contacting
the Companys Secretary at Fauquier Bankshares, Inc., 10 Courthouse Square, Warrenton, Virginia
20186.
Participants in Solicitation
A listing of persons who are participants in the solicitation and certain information
concerning such persons is set forth in the Companys definitive proxy statement filed with
the SEC on April 20, 2009, which may be obtained through the website maintained by the SEC at
www.sec.gov.
Forward-Looking Statements
In addition to historical information, this letter contains forward-looking statements that are
based upon the Companys estimates and expectations concerning future events and are subject to
certain risks and uncertainties that could cause actual results to differ materially from those
reflected in the forward-looking statements. We caution that such statements are subject to a
number of uncertainties and actual results could differ materially and therefore you should not
place undue reliance on any forward-looking statements we make. We may not update any
forward-looking statements we make today for future events or developments. Information about risks
and uncertainties are described in our filings with the SEC, which are available on the SECs
website and our website and may be obtained by contacting the Secretary of the Company.