BCB Bancorp will pay $20 million for Indus American Bank, a New Jersey institution that focuses on the South Asian-American business community. Indus American lost a total of $2.5 million in 2015 and 2016.
The Louisiana company, which fired its CEO earlier this year, has been paying a hefty dividend on funds it obtained from the Treasury Department in 2011.
Former Inter-State Federal account holders believe they were shortchanged by the Missouri mutual's merger. A ruling in their favor could give depositors more power and could undermine what it means to be a mutual.
The Louisiana company's board has made it clear that independence is "not a God-given right" while charging new management with addressing energy loan issues, underwriting, capital and expenses.
The company was set to sell a 24% stake in itself to buy two Tennessee banks but has restructured the arrangement to avoid a potential conflict cited by a regulator.
