An accounting firm that questioned Peoples Community Bancorp's ability to survive as an independent company has resigned as the West Chester, Ohio, thrift company's accountant.
In an April 29 filing with Securities and Exchange Commission, the $877 million-asset Peoples said BKD LLP would resign once it completed work related to the first quarter but no later than May 16. Peoples said in the filing that it was "interviewing suitable replacement firms."
In Peoples' annual report, released April 15, BKD said the thrift company's liquidity problems "raise substantial doubt about its ability to continue as a going concern." Peoples has said it lacks the capital to pay a $17.5 million credit that comes due June 30. Its Peoples Community Bank subsidiary is under a strict order from the Office of Thrift Supervision that prohibits it from making commercial, residential construction, or land loans or paying dividends without first getting OTS approval.
Peoples shareholders were set to vote this month to make BKD the company's accounting firm for 2008. A representative from BKD said that will no longer occur. Calls to Peoples were not returned.
