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Employee Stock Ownership Plans
Relationships you can bank on.
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The Trust Division of PBI Bank has developed a very specialized niche for serving as an independent corporate
trustee for Employee Stock Ownership Plans. Trustees are charged with the duty of operating the plan for the exclusive
benefit of the plan participants and their beneficiaries. Often conflicts of interest arise for internal trustees. For
example, there is an inherent conflict of interest when a selling shareholder serves as trustee or supervises the
appointed trustee. If the trustees purchase shares at an inflated price or take on more debt than is reasonable,
substantial penalties could be paid. Individual trustees can be held personally liable. Therefore, it is wise to appoint
a professional and independent ESOP trustee like PBI Bank to handle the transactions. We have had the privilege
to work with some of the leading attorneys and valuation experts in the industry building upon our tremendous amount of
knowledge in the ESOP area.
Our primary role has been serving as an independent transaction trustee for numerous purchase transactions. Other involvement
includes serving as a trustee to evaluate the sale of an ESOP owned company to a larger non ESOP company. In addition, we now
serve as ongoing corporate trustee for companies located in Kentucky, Ohio, Missouri, Indiana, and Maryland.
We use a team-oriented approach to manage fiduciary relationships. John Grider, the ESOP team leader, is a retired certified
public accountant with BKD, LLP. He represents years of experience in the employee benefit and corporate tax fields. PBI
Bank has the experience and the expertise to be a valuable point of resource for your company, but we are small enough to give
you the personal service that your company deserves.
Services
The trustee is responsible for making sure that the plan is operated for the exclusive benefit of the plan participants and their
beneficiaries. Some of the services that PBI Bank provides to our clients are:
Serving as an independent transaction trustee for purchase transactions
Evaluating the sale of an ESOP to another ESOP
Serving as ongoing independent trustee for companies, therefore, relieving the fiduciary responsibility from key employees of the company
Performing due diligence work
Making sure ESOP loans are reasonable and coordinating the debt service payments
Receiving employer contributions, and making payments of ESOP debt
Keeping accurate records
Providing timely statements
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