Saturday, July 16, 2011

Prescott bank to open as a Foothills branch

Summit Bank of Prescott was closed Friday by regulators, marking the second Arizona bank failure of the year and 55th nationally.

The single-branch institution will open Monday as an office of Foothills Bank, with Summit depositors automatically becoming depositors of Foothills, according to the Arizona Department of Financial Institutions and the Federal Deposit Insurance Corp.

Foothills, based in Yuma, has four offices in that city. Foothills agreed to buy virtually all of Summit's assets and will pay the FDIC a slight premium to assume all deposits. Still, the FDIC estimated the failure will cost its deposit fund $11.3 million.

As of March 31, Summit had $72 million in assets and $66.4 million in deposits.

Until the branch reopens, Summit customers can access their money by writing checks or using ATM or debit cards. Checks drawn on the bank will be processed, and loan customers should make payments as scheduled. Customers with questions can call the FDIC at 800-895-0586.

by Russ Wiles The Arizona Republic Jul. 15, 2011 10:35 PM

Prescott bank to open as a Foothills branch

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