Congressional in Maryland Gets Approvals to Buy American Bank

Congressional Bancshares in Bethesda, Md., has received regulatory and shareholder approval to acquire American Bank in Rockville, Md.

The $477 million-asset Congressional now expects to close the deal by the end of the year, said Jeffrey Lipson, Congressional's chief executive.

Congressional's agreement with the $437 million-asset American was announced in September 2014. At the time the companies expected to close in the first quarter. Lipson declined to comment on the reason for the delay.

Additionally, the Office of the Comptroller of the Currency told the Washington Business Journal that there is no update to a notice from December that it will ban American Bank's CEO, James Plack, from working at another federally insured financial institution.

The OCC alleged that Plack engaged in fraudulent adjusted price trades, including one instance where American Bank acquired loans above their fair values, in exchange for the loans' seller then buying foreclosed properties from American Bank for the amount at which the bank was carrying those properties on its books.

Plack did not return calls from American Banker seeking comment.