Saturday, May 18, 2002

Peoples Bank names chairman

Board seeks to improve monitoring

By Jeff McKinney,
The Cincinnati Enquirer

        Intending to keep a closer eye on daily operations because of its ties to the Erpenbeck Co., Peoples Bank of Northern Kentucky has named a board chairman for the first time in its 10-year history.

        John Yeager, a founding member of the bank and a Peoples board member since it opened in 1992, was elected chairman at a special board meeting earlier this week.

        His appointment comes about a month after the FBI began investigating the Erpenbeck Co., an Edgewood-based home builder, for possible bank fraud. Peoples has said the company deposited checks made payable to other banks into its own account. No charges have been filed.

        Mr. Yeager, president of Ashley Development Inc., said his duties will include acting as a liaison between the board and the bank's president, Merwin Grayson.

        He said that will help ensure that the board is kept more aware of the bank's day-to-day operations, and of the bank president's duties and actions. It will also give the board greater oversight over bank, with assets of $209 million and eight branches.

        Since the Erpenbeck Co. fiasco began, the Peoples board has maintained that there were many dealings that the board members were not made aware of until after they happened.

        “This will help us better stay on top of things and provide us additional oversight of the bank, including such things as lending,” Mr. Yeager said.

        He said the bank has changed its check-cashing procedure so that all commercial checks are properly endorsed before being deposited.


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