No further impact to PBI Bank’s capital or operating results
LOUISVILLE, KY. (July 21, 2015) — 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.
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.
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