Midwest Regional Bank

In June 2008, Summit was approached by a Midwest regional bank who was seeking a solution to its capital crisis. The bank was under increased scrutiny by their regulatory body, and Summit’s experienced professionals responded quickly to their needs, evaluating the bank’s entire troubled loan portfolio and providing feedback on which asset classes’ disposition would be most helpful in the bank’s restructuring. Summit then provided pricing on certain requested asset classes on a loan by loan basis.

The bank needed to reduce its overall level of criticized assets, but due to the sensitive nature of their capital position, was unable to hold a public loan sale. They identified a pool of assets that would quickly give them the liquidity they needed, and in August 2008, Summit purchased a $20 million pool of 13 relationships that included performing assets, non-performing assets, REO and fully charged off credits.

As a result of Summit’s experience and ability to provide a capital solution across many of the bank’s asset classes, subsequent to this transaction, the bank asked Summit to review another selection of assets they wanted to dispose of in the following quarter.