SOURCE: Frontier Financial Corporation

November 21, 2007 20:00 ET

Bank of Salem Shareholders Approve Merger With Frontier Financial Corporation

EVERETT, WA and SALEM, OR--(Marketwire - November 21, 2007) - Frontier Financial Corporation (NASDAQ: FTBK) ("Frontier") and Bank of Salem (OTCBB: BSOG) ("Salem") today announced at special meeting held on November 19, 2007 the Salem shareholders overwhelmingly approved the principal terms of the Agreement and Plan of Merger dated July 25, 2007. In addition, all regulatory approval has been received. Frontier and Salem expect the closing to occur on November 30, 2007.

Following the merger, Jon R. Johnson, Salem's President and CEO, will continue as Senior Vice President and Regional Manager, Larry A. Johnson, Salem's Executive Vice President and Chief Credit Officer, will continue as Senior Vice President and Regional Credit Administrator, and David L. DeSemple, Salem's Vice President of Operations, will continue as Vice President and Regional Operations and Human Resource Manager. All employees of Salem are expected to be retained in the merger.

About Frontier Financial Corporation

Frontier is a Washington-based financial holding company providing financial services through its commercial bank subsidiary, Frontier Bank. Frontier offers a wide range of financial services to businesses and individuals in its market area, including investment and insurance products. Frontier operates 48 offices in Clallam, Jefferson, King, Kitsap, Pierce, Skagit, Snohomish, Thurston and Whatcom counties. More information can be found at www.frontierbank.com.

About Bank of Salem

Bank of Salem provides a variety of financial services to individuals and corporate customers through its three branches operating as Bank of Salem, Bank of Portland and Bank of Tigard, Oregon. Founded in 1991, Bank of Salem specializes in financing construction projects and commercial real estate. More information on Bank of Salem can be found at www.bankofsalem.com.

CERTAIN FORWARD-LOOKING INFORMATION -- This press release contains certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 ("PSLRA"). This statement is included for the express purpose of availing Frontier of the protections of the safe harbor provisions of the PSLRA. The forward-looking statements contained herein are subject to factors, risks and uncertainties that may cause actual results to differ materially from those projected. The following items are among the factors that could cause actual results to differ materially from the forward-looking statements: general economic conditions, including their impact on capital expenditures; business conditions in the banking industry; recent world events and their impact on interest rates, businesses and customers; the regulatory environment; new legislation; vendor quality and efficiency; employee retention factors; rapidly changing technology and evolving banking industry standards; competitive standards; competitive factors, including increased competition with community, regional and national financial institutions; fluctuating interest rate environments; higher than expected loan delinquencies; and similar matters. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management's analysis only at the date of this release. Frontier undertakes no obligation to publicly revise or update these forward-looking statements to reflect events or circumstances that arise after the date of this release. Readers should carefully review the risk factors described in this and other documents Frontier files from time to time with the Securities and Exchange Commission, including Frontier's 2006 Form 10-K.

Contact Information

  • John J. Dickson
    President and Chief Executive Officer
    Frontier Financial Corporation
    (425) 514-0774

    Jon R. Johnson
    President and CEO
    Bank of Salem
    (503) 585-5290