Peoples Community Bank in West Chester, Ohio, said it must curtail lending under one of two recently issued cease-and-desist orders from the Office of Thrift Supervision.
The $914 million-asset Peoples announced late Thursday that it will be required to file updated business plans and compare projected operating results with actual results. The order also bars Peoples from declaring dividends, changing managers, increasing debt, or repurchasing stock without permission from the OTS.
Another OTS cease-and-desist order announced Thursday prohibits Peoples from making any commercial, residential construction, or land loans.
Jerry D. Williams, president and CEO of the thrift and its parent company, Peoples Community Bancorp Inc., said in a press release that the company is working to resolve its credit problems and continues to explore its strategic options.
A deal it struck in September to sell itself to Integra Bank Corp. of Evansville, Ind., for $85.6 million was called off in February, and analysts speculated that Peoples' troubled loans might have been the reason.
The company lost $1.9 million in the first three quarters of last year. It has yet to report fourth-quarter or full-year results for 2007 but said Thursday that it plans to do so by April 15.
