January 23, 2017 10:05 AM ET

Banks

Company Overview of PBI Bank, Inc.

Company Overview

PBI Bank, Inc. provides retail and business banking products and services to communities in Kentucky. It offers personal banking products and services, which include checking and savings accounts, and certificates of deposit; mortgage loans, Real Estate home equity loans and lines of credit, personal loans, construction loans, and automobile and vehicle loans; and debit card, online/mobile banking, mobile deposit, bill payment, bank by phone, safe deposit box, and public notary services. The company also provides business banking products and services, such as checking and savings accounts, small business administration programs, real estate loans, equipment and machinery loans, asset based ...

2500 Eastpoint Parkway

Louisville, KY 40223

United States

Founded in 1902

Phone:

502-499-4800

Fax:

502-499-4811

Key Executives for PBI Bank, Inc.

Chairman, Chief Executive Officer, President, Chief Executive Officer of Porter Bancorp, Inc, President of Porter Bancorp, Inc and Director of Porter Bancorp, Inc
Age: 56
Chief Financial Officer, Chief Operating Officer and Chief Financial Officer of Porter Bancorp
Age: 45
Community President of Warren County
Senior Vice President, General Counsel, Corporate Secretary and Corporate Secretary of Porter Bancorp, Inc.
Senior Vice President and Director of Human Resources
Compensation as of Fiscal Year 2016.

PBI Bank, Inc. Key Developments

Appeals Court Upholds Verdict Against PBI Bank

The Kentucky Court of Appeals has upheld the $7.1 million verdict in favor of the Signature Point development and its partners and against a lender, PBI Bank. The judgment was in favor of Signature Point Condominiums LLC, Signature Point Apartments LLC, and Signature Point KTC LLC against PBI Bank, Inc. after a Jefferson Circuit Court jury found the bank liable for fraud, negligence and breach of contract, among other findings. The claims arose out of property acquired in 2006 by Scott Hagan, to create an upscale residential development that included condominiums, apartments and a clubhouse in eastern Louisville Metro. Hagan bought about 90 acres on English Station Road, planning to construct the development. U.S. Bank originally provided the financing for the purchase, but PBI took over the financing in 2007 at Hagan's request. Hagan created the three Signature Point entities who were defendants in the lawsuit and held the property in their names. In 2010, with the real estate and condominium market severely depressed, PBI Bank took the property in lieu of foreclosure, agreeing to provide Signature Point with a right of first refusal before it sold the property to any other developer. To obtain Hagan's agreement, PBI Bank assured him that no one was interested in the property, a statement the jury found to be fraudulent. Louisville attorney Laurence Zielke represented Signature Point. The post-trial litigation and appeal took more than three years.

Judge Orders PBI Bank to Pay Millions in Property Lawsuit

The Kentucky Court of Appeals ordered PBI Bank to pay more than $10 million to Signature Point Condominiums LLC, Signature Point Apartments LLC and Signature Point KTC. The court on found PBI responsible for six different claims made by the prosecution, including fraud and the breach of the duty of good faith. The claims stemmed from a 2006 transaction in which Scott Hagan, a real estate developer bought 90 acres of properties in eastern Jefferson County to create condos and other upscale residential developments. According to the court of appeals written decision, U.S Bank originally provided the financing for the purchase, but PBI took over the financing in 2007 at Hagan's request. PBI provided a $25 million loan to Signature Point, split evenly between a $12.5 million revolving construction loan and a $12.5 million revolving development loan. A revolving loan allows for the loan amount to be withdrawn, repaid and redrawn again in any manner and as many times as needed until the arrangement expires. Signature Point was awarded $1.5 million in compensatory damages plus $5.5 million in punitive damages for a total of more than $7 million after the 2013 trial.

PBI Bank Appoints James M. Parsons as Board Member

Porter Bancorp, Inc. announced James M. Parsons was appointed as a board member of PBI Bank. Mr. Parsons is CFO of Ball Homes, LLC. He previously served as President and CEO of ONB Insurance Group and has held various board positions for a variety of companies and charitable organizations, including serving as an advisory board member for two community banks. He is a CPA and has degrees in business administration and accounting from West Virginia University.

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