The former chairman and chief executive of Summit Bank in Burlington, Wash., on Wednesday pleaded guilty to hiding millions of dollars in losses from past-due loans.

James Bishop admitted in federal court in Seattle to conspiring with his son James Bishop II, who was then bank president, to conceal Summit's mounting losses from reports to the Federal Insurance Deposit Corp. between 2009 and 2011. The former CEO could spend between a year and 41 months in prison under the terms of the plea agreement, according to an announcement from the U. S. Attorney's Office in the Western District of Washington.

Bishop will also pay $300,000 to the FDIC and agree to a lifetime ban from banking. His son has been charged in the case and is scheduled for a plea hearing on Sept. 5.

Summit was ultimately closed by state regulators and sold to Columbia Bank in Tacoma, Wash., in May 2011.

"Our economy depends on every bank following the rules. Banking rules protect individual depositors as well as our financial system," U.S. Attorney Jenny Durkan said in a press release. "These defendants — both experienced bankers — took a myriad of steps to hide the true financial condition of Summit Bank from federal and state regulators."

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