PBI Bank, U.S. Department of Labor reach settlement in ESOP case
July 21 2015 - 9:00AM
Business Wire
No further impact to PBI Bank’s capital or
operating results
PBI Bank, Inc. announced today that a settlement agreement has
been reached with the United States Department of Labor (DOL) in an
Employee Stock Ownership Plan (ESOP) matter that was pending in
federal court in the Northern District of Indiana.
Thomas E. Perez, Secretary of the United States Department of
Labor v. PBI Bank, Inc. (Civ. Action 3:13-CV-1400-PPS) pertains to
PBI Bank’s service as trustee for the Miller’s Health Systems, Inc.
2007 ESOP acquisition of Miller’s Health Systems, Inc. PBI Bank and
the DOL have agreed to resolve the case without the need for a
trial. Neither Miller’s Health Systems, Inc. nor PBI Bank has
acknowledged any wrongdoing in the matter.
As previously disclosed, the terms of the settlement agreement
include a payment to the Miller’s Health Systems, Inc. ESOP, which
was either previously reserved for or will be paid from insurance
proceeds. This matter will have no further impact on PBI Bank’s
financial condition or operating results and will resolve the need
to spend additional company resources in litigation.
As an additional element of the settlement agreement, PBI Bank
has agreed to refrain from serving as a trustee or service provider
for any plan covered by the Employee Retirement Income Securities
Act of 1974 (ERISA), with a few exceptions.
“We’re pleased to report that an agreement in this case has been
achieved outside of court, eliminating the need for a potentially
expensive and burdensome trial to resolve this matter,” said John
Taylor, President and CEO of PBI Bank. “We continue to focus on
providing great products and services to our customers, creating
value for them, our communities, and our bank.”
About PBI Bank, Inc.
PBI Bank, Inc. is a Kentucky-based, community-focused financial
institution with headquarters in Louisville, Ky.
Through a network of banking centers across the Commonwealth, we
provide our communities with a broad range of high-quality retail
and business banking services while we work to develop deeply
personal customer relationships.
Our associates are also committed to strengthening the
communities in which we live and work through their investments of
time, talent and resources. In 2015, PBI Bank was recognized as a
“Best Place to Work in Kentucky.”
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PBI Bank, Inc.John T. Taylor, 502-499-4800Chief Executive
Officer
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