Feds put restrictions on Park View Federal and its parent

Park View Federal Savings Bank and its parent company, PVF Capital Corp., both received letters from the Office of Thrift Supervision last week putting some restrictions on the operations of both entities.

The June 26 letters came as a result of the regulator’s assessment of PVF and Park View’s financial situation.

The restrictions limit quarterly asset growth, require both the bank and the company to get permission from the OTS before appointing new directors or senior executives, and keep Park View from paying dividends, repurchasing stock or making other capital distributions.

They also require regulatory approval for certain severance payments and new, renewed or amended benefits and compensation plans for directors and executives.

In addition, Park View is required to notify the OTS of proposed transactions with affiliates and must get outside approval for third-party contracts that are significant to the bank’s financial condition or outside its normal course of business.

Former Huntington Bancshares president and chief operating officer Marty E. Adams took over as both PVF and Park View’s interim CEO in March, replacing John R. “Jack” Male. In May, both the company and the bank amended Mr. Male’s severance agreement so that it would renew annually until he was 65. Mr. Male is 61.

Several activist shareholders have been added to the board since last October after long lamenting the bank’s failure to increase its profitability. In the first quarter, Park View lost $8.58 million, or $1.10 a share.

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