Summit Bank in Prescott, Ariz., has put itself up for sale after its board determined it would not be able to raise enough capital to satisfy a regulatory order.
The $80.8 million-asset Summit had significant losses as a result of the downturn in the local real estate market and was forced to build reserves and write down the value of properties it acquired over the last two years through foreclosures.
"Even though the current weakness in the local real estate market is generally expected to be temporary, it is not feasible to postpone action until the expected real estate recovery is in full bloom," Summit President Bill Frank said in a press release Wednesday.
