Mode Eleven director has highest bid to buy its bank out of bankruptcy

A director of Mode Eleven Bancorp was the highest bidder for its bank.

Summit National Bank in Hulett, Wyo., was put up for auction as part of a bankruptcy process. Court documents revealed that Victor Remsha had the highest bid, at about $5.5 million.

Mode Eleven filed for Chapter 11 bankruptcy protection on June 9 and was working with Hovde Group to find a buyer for its $91.5 million-asset Summit National Bank. The filing was prompted by concerns that the bank could face more intense regulatory scrutiny if capital levels continue to deteriorate.

Summit National was operating below the minimum 13% capital ratio required under a consent order with the Office of the Comptroller of the Currency. The bank is also operating under a cease-and-desist order with the Federal Reserve.

“The debtor lacks sufficient liquidity to inject funds to allow the bank to satisfy the capital ratio required by the OCC consent order,” Mode Eleven said in its bankruptcy filing. The filing noted that regulators could impose harsher orders, civil penalties of up to $1 million per day, or close the bank.

Mode Eleven tried to recapitalize in late 2024 through a $20 million private stock offering but the effort fell short of its minimum funding threshold and was terminated in April.