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."


View source version on businesswire.com: http://www.businesswire.com/news/home/20150721005811/en/

Copyright Business Wire 2010