SOURCE: Frontier Financial Corporation

March 16, 2010 17:00 ET

Frontier Financial Corporation Revises Results for the Fourth Quarter and Year Ended December 31, 2009

EVERETT, WA--(Marketwire - March 16, 2010) - Frontier Financial Corporation (NASDAQ: FTBK) today announced revised results for the quarter and year ended December 31, 2009. For the three months and year ended December 31, 2009, the Corporation reported revised net losses of $70.2 million, or ($14.89) per diluted share, and $295.1 million, or ($62.61) per diluted share, respectively. In our press release dated January 29, 2010, we originally reported a net loss of $33.9 million, or ($7.19) per diluted share, for the quarter ended December 31, 2009, and a net loss of $258.8 million, or ($54.91) per diluted share for the year ended December 31, 2009. The revised results for the quarter and year ended December 31, 2009, reflect an additional $30.0 million to the provision for loan losses, an additional $3.5 million valuation adjustment on other real estate owned and a $4.3 million (pre-tax) other-than-temporary impairment ("OTTI") loss on available for sale securities.

Subsequent to year end and the issuance of our results for the quarter and year ended December 31, 2009, dated January 29, 2010, the Federal Deposit Insurance Corporation ("FDIC") concluded its visitation of Frontier Bank and determined that an additional provision for loan losses of $30.0 million was necessary to replenish the allowance for loan losses and an additional $3.5 million valuation adjustment was necessary to properly reflect the carrying value of other real estate owned at December 31, 2009. The FDIC, as a regular part of their examination process, periodically reviews our allowance for loan losses and has the authority to require us to recognize additions to the allowance for loan losses based on their judgment of information available to them at the time of their examination. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as conditions change.

Additionally, we sold two available for sale equity securities, which were in unrealized loss positions at December 31, 2009, at a loss subsequent to year end. In accordance with U.S. generally accepted accounting principles, due to the close proximity of the sale to year end, these securities were deemed OTTI at December 31, 2009. Collectively, these adjustments reduced Frontier Bank's Tier 1 capital to $59.8 million, which resulted in a Tier 1 Leverage Capital ratio of 1.65%, thus designating Frontier Bank as "critically undercapitalized" for purposes of Prompt Corrective Action ("PCA") as of December 31, 2009.

Under the Federal Deposit Insurance Act's ("FDI Act") PCA capital requirements (12 U.S.C. § 1831o), depository institutions that are "critically undercapitalized", in addition to being subject to a number of additional restrictions, must be placed into conservatorship or receivership within 90 days of becoming critically undercapitalized, unless the institution's primary Federal regulatory authority (here, the FDIC) determines and documents that "other action" would better achieve the purposes of PCA. If Frontier Bank is placed into conservatorship or receivership, the Corporation would suffer a complete loss of the value of its ownership interest in Frontier Bank. These events raise substantial doubt about our ability to continue as a going concern.

The accompanying revised consolidated statement of operations, consolidated balance sheet and selected other financial information and ratios have been prepared on a going concern basis, which contemplates the realization of assets and the discharge of liabilities in the normal course of business for the foreseeable future, and do not include any adjustments to reflect the possible future effects on the recoverability or classification of assets, and the amounts or classification of liabilities that may result from the outcome of any regulatory action, which would affect our ability to continue as a going concern.

Certain amounts in prior years' financial statements have been reclassified to conform to the 2009 presentation. These classifications have not had an effect on previously reported income (loss) or total equity.

Frontier Financial Corporation is a Washington-based financial holding company providing financial services through its commercial bank subsidiary, Frontier Bank. Frontier Bank offers a wide range of financial services to businesses and individuals in its market area, including investment and insurance products.

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. Readers should not place undue reliance on forward-looking statements, which reflect management's views only as of the date hereof. The words "should," "anticipate," "expect," "will," "believe," and words of similar meaning are intended, in part, to help identify forward-looking statements. Future events are difficult to predict, and the expectations described above are subject to risks and uncertainties that may cause actual results to differ materially. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or expected. In addition to discussions about risks and uncertainties set forth from time to time in the Company's filings with the Securities and Exchange Commission, factors that may cause actual results to differ materially from those contemplated in these forward-looking statements include, among others: (1) the extent and duration of continued economic and market disruptions and governmental actions to address these disruptions; (2) the risk of new and changing legislation, regulation and/or regulatory actions; (3) pending litigation and regulatory actions; (4) local and national general and economic conditions; (5) changes in interest rates; (6) reductions in loan demand or deposit levels; and (7) changes in loan collectibility, defaults and charge-off rates.

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 2008 Form 10-K and Frontier's Form 10-Q for the quarter ending September 30, 2009.

              FRONTIER FINANCIAL CORPORATION AND SUBSIDIARY
             CONSOLIDATED STATEMENT OF OPERATIONS - REVISED
         (In thousands, except for shares and per share amounts)
                               (Unaudited)

                                               Three Months Ended
                                     -------------------------------------
                                    December 31, September 30, December 31,
                                         2009         2009         2008
                                     -----------  -----------  -----------
INTEREST INCOME
  Interest and fees on loans         $    39,207  $    40,595  $    59,343
  Interest on investments                    764          895        1,049
                                     -----------  -----------  -----------
    Total interest income                 39,971       41,490       60,392
                                     -----------  -----------  -----------
INTEREST EXPENSE
  Interest on deposits                    16,175       18,703       22,715
  Interest on borrowed funds               3,806        3,909        3,822
                                     -----------  -----------  -----------
    Total interest expense                19,981       22,612       26,537
                                     -----------  -----------  -----------

Net interest income                       19,990       18,878       33,855
PROVISION FOR LOAN LOSSES                100,000      140,000       44,400
                                     -----------  -----------  -----------
Net interest loss after provision
 for loan losses                         (80,010)    (121,122)     (10,545)
                                     -----------  -----------  -----------
NONINTEREST INCOME
  Other-than-temporary impairment
   loss on securities                     (4,289)           -            -
  Gain on sale of securities                   -            -        3,129
  Gain on sale of secondary mortgage
   loans                                     229          232          247
  Net gain (loss) on sale of other
   real estate owned                      (5,535)      (1,068)           4
  Service charges on deposit
   accounts                                1,558        1,611        1,291
  Other noninterest income                 2,161        2,103        2,831
                                     -----------  -----------  ----------- 
    Total noninterest income (loss)       (5,876)       2,878        7,502
                                     -----------  -----------  -----------

NONINTEREST EXPENSE
  Salaries and employee benefits          11,058       11,290        9,398
  Occupancy expense                        2,689        2,694        2,406
  State business taxes                       324          239          370
  FDIC insurance                           4,800        2,682          730
  Other noninterest expense                7,370        7,909        4,960
                                     -----------  -----------  -----------
                                          26,241       24,814       17,864
                                     -----------  -----------  -----------
  Goodwill impairment                          -            -       77,073
                                     -----------  -----------  -----------
    Total noninterest expense             26,241       24,814       94,937
                                     -----------  -----------  -----------

LOSS BEFORE BENEFIT FOR
  INCOME TAXES                          (112,127)    (143,058)     (97,980)
BENEFIT FOR INCOME TAXES                 (41,926)      (1,970)      (8,464)
                                     -----------  -----------  -----------
    NET LOSS                         $   (70,201) $  (141,088) $   (89,516)
                                     ===========  ===========  ===========
Weighted average number of
shares outstanding for the period      4,715,370    4,713,185    4,703,840
Basic losses per share               $    (14.89) $    (29.93) $    (19.03)
                                     ===========  ===========  ===========
Weighted average number of diluted
 shares outstanding for period         4,715,370    4,713,185    4,703,840
Diluted losses per share             $    (14.89) $    (29.93) $    (19.03)
                                     ===========  ===========  ===========





              FRONTIER FINANCIAL CORPORATION AND SUBSIDIARY
        CONSOLIDATED STATEMENT OF OPERATIONS - REVISED (Continued)
          (In thousands, except for shares and per share amounts)
                               (Unaudited)

                                                    Twelve Months Ended
                                                  ------------------------
                                                  December 31, December 31,
                                                      2009         2008
                                                  -----------  -----------
INTEREST INCOME
  Interest and fees on loans                      $   173,934  $   273,392
  Interest on investments                               3,599        5,663
                                                  -----------  -----------
    Total interest income                             177,533      279,055
                                                  -----------  -----------
INTEREST EXPENSE
  Interest on deposits                                 77,661       96,091
  Interest on borrowed funds                           15,801       16,094
                                                  -----------  -----------
    Total interest expense                             93,462      112,185
                                                  -----------  -----------

Net interest income                                    84,071      166,870
PROVISION FOR LOAN LOSSES                             375,000      120,000
                                                  -----------  -----------
Net interest income (loss) after
  provision for loan losses                          (290,929)      46,870
                                                  -----------  -----------
NONINTEREST INCOME
  Other-than-temporary impairment loss on
   securities                                          (4,289)      (6,430)
  Gain (loss) on sale of securities                      (102)       4,570
  Gain on sale of secondary mortgage loans              1,675        1,321
  Gain on sale of premises and equipment                  136           30
  Net gain (loss) on sale of other real estate
   owned                                               (7,054)          97
  Service charges on deposit accounts                   6,154        5,421
  Other noninterest income                              8,394        9,821
                                                  -----------  -----------
    Total noninterest income                            4,914       14,830
                                                  -----------  -----------

NONINTEREST EXPENSE
  Salaries and employee benefits                       46,985       48,403
  Occupancy expense                                    10,953       11,148
  State business taxes                                  1,068        2,013
  FDIC insurance                                       15,962        2,650
  Other noninterest expense                            24,766       18,785
                                                  -----------  -----------
                                                       99,734       82,999
                                                  -----------  -----------
  Goodwill impairment                                       -       77,073
                                                  -----------  -----------
    Total noninterest expense                          99,734      160,072
                                                  -----------  -----------

LOSS BEFORE BENEFIT FOR INCOME TAXES                 (385,749)     (98,372)
BENEFIT FOR INCOME TAXES                              (90,655)      (8,635)
                                                  -----------  -----------
    NET LOSS                                      $  (295,094) $   (89,737)
                                                  ===========  ===========
Weighted average number of shares outstanding
 for the period                                     4,713,219    4,699,163
Basic losses per share                            $    (62.61) $    (19.10)
                                                  ===========  ===========
Weighted average number of diluted shares
 outstanding for period                             4,713,219    4,699,163
Diluted losses per share                          $    (62.61) $    (19.10)
                                                  ===========  ===========




              FRONTIER FINANCIAL CORPORATION AND SUBSIDIARY
                  CONSOLIDATED BALANCE SHEET - REVISED
         (In thousands, except for shares and per share amounts)
                               (Unaudited)

                                    December 31, September 30, December 31,
                                         2009         2009         2008
                                     -----------  -----------  -----------
ASSETS
Cash and due from banks              $    93,761  $    36,921  $    52,022
Federal funds sold                       333,819      363,081      117,740
Securities
   Available for sale, at fair value      85,092       73,834       90,606
   Held to maturity, at amortized cost     2,102        3,079        3,085
                                     -----------  -----------  -----------
          Total securities                87,194       76,913       93,691

Loans held for resale                      3,221        3,464        6,678
Loans                                  2,866,277    3,147,540    3,772,055
Allowance for loan losses               (151,349)    (142,229)    (112,556)
                                     -----------  -----------  -----------
          Net loans                    2,718,149    3,008,775    3,666,177

Premises and equipment, net               47,704       48,826       51,502
Intangible assets                            581          634          794
Federal Home Loan Bank (FHLB) stock       19,885       19,885       19,885
Bank owned life insurance                 25,385       25,116       24,321
Other real estate owned                  169,674      101,805       10,803
Other assets                              98,832       90,153       67,510
                                     -----------  -----------  -----------
    Total assets                     $ 3,594,984  $ 3,772,109  $ 4,104,445
                                     ===========  ===========  ===========

LIABILITIES
Deposits
  Noninterest bearing                $   377,258  $   403,534  $   395,451
  Interest bearing                     2,745,218    2,822,087    2,879,714
                                     -----------  -----------  -----------
    Total deposits                     3,122,476    3,225,621    3,275,165

Federal funds purchased and
 securities sold under repurchase
 agreements                               11,107       15,584       21,616
Federal Home Loan Bank advances          375,479      375,752      429,417
Junior subordinated debt                   5,156        5,156        5,156
Other liabilities                         19,280       20,329       21,048
                                     -----------  -----------  -----------
    Total liabilities                  3,533,498    3,642,442    3,752,402
                                     -----------  -----------  -----------

SHAREOWNERS' EQUITY
Common stock, no par value;
 100,000,000 shares authorized           258,202      258,425      256,137
Retained earnings (accumulated
 deficit)                               (197,083)    (126,873)      98,020
Accumulated other comprehensive
 income (loss), net of tax                   367       (1,885)      (2,114)
                                     -----------  -----------  -----------
    Total shareowners' equity             61,486      129,667      352,043
                                     -----------  -----------  -----------
    Total liabilities and
     shareowners' equity             $ 3,594,984  $ 3,772,109  $ 4,104,445
                                     ===========  ===========  ===========

Shares outstanding at end of period    4,725,076    4,713,185    4,709,510

Book value                           $     13.01  $     27.51  $     74.75
Tangible book value                  $     12.89  $     27.38  $     74.58



              FRONTIER FINANCIAL CORPORATION AND SUBSIDIARY
        SELECTED OTHER FINANCIAL INFORMATION AND RATIOS - REVISED
                              (In thousands)
                               (Unaudited)

                            For the Period Ended (Year-to-Date)
                ----------------------------------------------------------
              December 31, September 30,  June 30,   March 31, December 31,
                   2009        2009        2009        2009        2008
                ----------  ----------  ----------  ----------  ----------
Loans by Type
 (including
 loans held
 for resale)
Commercial and
 industrial     $  388,548  $  405,405  $  425,221  $  444,681  $  457,215
Real Estate:
 Commercial        965,150     988,004   1,017,204   1,020,530   1,044,833
 Construction      448,063     587,594     713,571     870,201     949,909
 Land development  319,311     405,400     476,562     512,804     580,453
 Completed lots    252,475     257,057     272,824     297,702     249,685
 Residential
  1-4 family       426,211     436,744     433,884     443,361     431,170
Installment and
 other loans        69,740      70,800      76,953      70,231      65,468
                ----------  ----------  ----------  ----------  ----------
 Total loans    $2,869,498  $3,151,004  $3,416,219  $3,659,510  $3,778,733
                ==========  ==========  ==========  ==========  ==========

Allowance for
 Loan Losses
Balance at
 beginning of
 period         $  114,638  $  114,638  $  114,638  $  114,638  $   57,658
                ----------  ----------  ----------  ----------  ----------
Provision for
 loan losses       375,000     275,000     135,000      58,000     120,000
                ----------  ----------  ----------  ----------  ----------
Loans charged-off
 Commercial and
  industrial       (39,044)    (26,494)    (18,891)     (5,355)     (3,101)
 Real Estate:
   Commercial      (10,477)     (9,212)     (1,176)       (149)     (1,264)
   Construction   (117,258)    (90,431)    (62,036)    (29,448)    (31,968)
   Land
    development   (109,651)    (74,231)    (38,015)    (19,057)    (12,165)
   Completed lots  (44,031)    (35,525)    (19,286)     (3,504)    (13,839)
   Residential
    1-4 family     (18,708)    (11,596)    (10,771)     (2,127)       (846)
 Installment and
  other loans       (2,362)     (1,795)     (1,089)       (205)       (343)
                ----------  ----------  ----------  ----------  ----------
Total charged-off
 loans            (341,531)   (249,284)   (151,264)    (59,845)    (63,526)
                ----------  ----------  ----------  ----------  ----------
Recoveries
 Commercial and
  industrial           715         616         496         211         308
 Real Estate:
   Commercial            2           -           -           -           -
   Construction      2,705       2,048         863          51         161
   Land
    development         12          57          57          57           -
   Completed lots      665         148          66          16           9
   Residential
    1-4 family          62          59          27           -           -
 Installment and
  other loans           72          47           4           2          28
                ----------  ----------  ----------  ----------  ----------
Total recoveries     4,233       2,975       1,513         337         506
                ----------  ----------  ----------  ----------  ----------
Net (charge-offs)
 recoveries       (337,298)   (246,309)   (149,751)    (59,508)    (63,020)
                ----------  ----------  ----------  ----------  ----------
Balance before
 portion
 identified
 for undisbursed
 loans             152,340     143,329      99,887     113,130     114,638
Portion of
 reserve
 identified for
 undisbursed
 loans                (991)     (1,100)     (1,304)     (1,646)     (2,082)
                ----------  ----------  ----------  ----------  ----------
Balance at end
 of period      $  151,349  $  142,229  $   98,583  $  111,484  $  112,556
                ==========  ==========  ==========  ==========  ==========

Allowance for
 loan losses as
 a percentage of
 total loans,
 including loans
 held for resale      5.27%       4.51%       2.89%       3.05%       2.98%
                ==========  ==========  ==========  ==========  ==========




              FRONTIER FINANCIAL CORPORATION AND SUBSIDIARY
   SELECTED OTHER FINANCIAL INFORMATION AND RATIOS - REVISED (Continued)
                              (In thousands)
                               (Unaudited)

                            For the Period Ended (Year-to-Date)
                ----------------------------------------------------------
              December 31, September 30,  June 30,   March 31, December 31,
                   2009        2009        2009        2009        2008
                ----------  ----------  ----------  ----------  ----------
Nonperforming
 Assets (NPA)
Nonaccruing
 loans          $  705,193  $  810,520  $  764,558  $  656,373  $  435,225
Other real
 estate owned      169,674     101,805      54,222      18,874      10,803
                ----------  ----------  ----------  ----------  ----------
 Total
  nonperforming
  assets           874,867     912,325     818,780     675,247     446,028
                ----------  ----------  ----------  ----------  ---------- 

Total nonaccruing
 loans to total
 loans               24.58%      25.72%      22.38%      17.94%      11.52%
Total NPA to
 total assets        24.34%      24.19%      20.53%      16.25%      10.87%

Interest Bearing
 Deposits
Money market,
 sweep and NOW  $  497,952  $  428,704  $  409,606  $  365,807  $  325,554
Savings            241,261     276,989     285,725     334,076     365,114
Time deposits    2,006,005   2,116,394   2,148,970   2,243,362   2,189,046
                ----------  ----------  ----------  ----------  ----------
 Total interest
  bearing
  deposits      $2,745,218  $2,822,087  $2,844,301  $2,943,245  $2,879,714
                ==========  ==========  ==========  ==========  ==========


                                For the Three Months Ended
                ----------------------------------------------------------
              December 31, September 30,  June 30,   March 31, December 31,
Performance        2009        2009        2009        2009        2008
 Ratios         ----------  ----------  ----------  ----------  ----------
ROA (annualized)    -3.66%     -14.39%      -4.92%      -3.18%      -8.68%
ROE (annualized)  -110.87%    -234.71%     -63.92%     -38.70%     -81.58%

Average assets  $3,677,366  $3,922,015  $4,061,874  $4,248,979  $4,125,319
Average
 shareholders'
 equity         $  121,400  $  240,448  $  312,851  $  349,465  $  438,908


                            For the Period Ended (Year-to-Date)
                ----------------------------------------------------------
              December 31, September 30,  June 30,   March 31, December 31,
Performance        2009        2009        2009        2009        2008
 Ratios         ----------  ----------  ----------  ----------  ----------
ROA (annualized)     -6.51%      -7.38%      -4.03%      -3.18%      -2.18%
ROE (annualized)   -101.36%    -100.06%     -50.63%     -38.70%     -19.42%

Average assets  $3,975,914  $4,076,476  $4,154,923  $4,248,979  $4,107,571
Average
 shareholders'
 equity         $  255,357  $  300,498  $  331,056  $  349,465  $  461,981


                            For the Period Ended (Year-to-Date)
                ----------------------------------------------------------
              December 31, September 30,  June 30,   March 31, December 31,
                   2009        2009        2009        2009        2008
                ----------  ----------  ----------  ----------  ----------
Capital Ratios
 - Consolidated
Tier 1 leverage
 ratio                1.80%       3.40%       6.74%       7.60%       8.62%
Tier 1 risk-based
 capital ratio        2.29%       4.33%       8.15%       9.13%       9.64%
Total risk-based
 capital ratio        3.58%       5.62%       9.42%      10.40%      10.91%

Capital Ratios
 - Frontier Bank
Tier 1 leverage
 ratio                1.65%       3.19%       6.49%       7.37%       8.53%
Tier 1 risk-based
 capital ratio        2.09%       4.06%       7.86%       8.85%       9.27%
Total risk-based
 capital ratio        3.38%       5.35%       9.13%      10.13%      10.55%




              FRONTIER FINANCIAL CORPORATION AND SUBSIDIARY
   SELECTED OTHER FINANCIAL INFORMATION AND RATIOS - REVISED (Continued)
                              (In thousands)
                               (Unaudited)

Quarterly Average Balances

                                    December 31, September 30, December 31,
                                         2009         2009         2008
                                     -----------  -----------  -----------
ASSETS
Cash and due from banks              $    43,592  $    43,317  $    48,279
Federal funds sold                       343,273      306,772       44,246
Securities
  Available for sale, at fair value       70,297       79,425       97,124
  Held to maturity, at amortized cost      2,750        3,076        3,517
                                     -----------  -----------  -----------
    Total securities                      73,047       82,501      100,641

Loans held for resale                      2,840        4,118        2,414
Loans
  Commercial and industrial              402,635      423,953      456,594
  RE commercial                          982,957    1,003,786    1,051,625
  RE construction                        530,202      661,786    1,022,043
  RE land development                    382,081      455,623      602,838
  RE completed lots                      263,499      271,602      249,849
  RE residential 1-4 family              430,892      426,531      385,218
  Installment and other                   70,500       70,868       69,656
                                     -----------  -----------  -----------
    Total                              3,065,606    3,318,267    3,840,237
Allowance for loan losses               (137,893)    (108,254)    (121,289)
                                     -----------  -----------  -----------
    Net loans                          2,927,713    3,210,013    3,718,948

Premises and equipment, net               48,501       49,344       51,819
Intangible assets                            609          662       77,905
FHLB Stock                                19,885       19,885       18,084
Bank owned life insurance                 25,240       24,968       24,185
Other real estate owned                  120,561       66,843        3,468
Other assets                              74,945      117,710       37,744
                                     -----------  -----------  -----------
  Total assets                       $ 3,677,366  $ 3,922,015  $ 4,125,319
                                     ===========  ===========  ===========

LIABILITIES
Deposits
  Noninterest bearing                $   394,358  $   404,988  $   389,127
  Interest bearing
    MMA, Sweep and NOW                   447,971      416,738      407,758
    Savings                              253,663      282,065      392,845
    Time deposits                      2,048,046    2,137,770    2,065,873
                                     -----------  -----------  -----------
  Total interest bearing               2,749,680    2,836,573    2,866,476
    Total deposits                     3,144,038    3,241,561    3,255,603

Fed funds purchased and repurchase
 agreements                               11,484       15,806       61,487
FHLB advances                            375,564      397,578      359,296
Junior subordinated debentures             5,156        5,156        5,156
Other liabilities                         19,724       21,466        4,869
                                     -----------  -----------  -----------
  Total liabilities                    3,555,966    3,681,567    3,686,411
  Total shareholders' equity             121,400      240,448      438,908
                                     -----------  -----------  -----------
  Total liabilities and
   shareholders' equity              $ 3,677,366  $ 3,922,015  $ 4,125,319
                                     ===========  ===========  ===========




              FRONTIER FINANCIAL CORPORATION AND SUBSIDIARY
   SELECTED OTHER FINANCIAL INFORMATION AND RATIOS - REVISED (Continued)
                              (In thousands)
                               (Unaudited)

Year-to-Date Average Balances

                                                  December 31, December 31,
                                                      2009         2008
                                                  -----------  -----------
ASSETS
Cash and due from banks                           $    44,680  $    50,410
Federal funds sold                                    300,617       29,197
Securities
   Available for sale, at fair value                   78,637      122,499
   Held to maturity, at amortized cost                  2,997        3,685
                                                  -----------  -----------
      Total securities                                 81,634      126,184

Loans held for resale                                   5,353        3,391
Loans
   Commercial and industrial                          429,256      437,481
   RE commercial                                    1,008,493    1,036,171
   RE construction                                    738,100    1,056,159
   RE land development                                474,046      585,508
   RE completed lots                                  275,010      244,575
   RE residential 1-4 family                          430,776      342,654
   Installment and other                               69,851       68,562
                                                  -----------  -----------
      Total                                         3,430,885    3,774,501
Allowance for loan losses                            (120,733)     (82,529)
                                                  -----------  -----------
      Net loans                                     3,310,152    3,691,972

Premises and equipment, net                            49,882       51,214
Intangible assets                                         688       78,013
FHLB Stock                                             19,885       18,587
Bank owned life insurance                              24,836       24,118
Other real estate owned                                57,967        2,301
Other assets                                           85,573       35,575
                                                  -----------  -----------
   Total assets                                   $ 3,975,914  $ 4,107,571
                                                  ===========  ===========

LIABILITIES
Deposits
   Noninterest bearing                            $   397,533  $   379,766
   Interest bearing
      MMA, Sweep and NOW                              396,287      586,943
      Savings                                         298,370      349,318
      Time deposits                                 2,177,546    1,894,455
                                                  -----------  -----------
   Total interest bearing                           2,872,203    2,830,716
      Total deposits                                3,269,736    3,210,482

Fed funds purchased and
   repurchase agreements                               16,226       73,460
FHLB advances                                         407,015      338,268
Junior subordinated debentures                          5,156        5,156
Other liabilities                                      22,424       18,224
                                                  -----------  -----------
   Total liabilities                                3,720,557    3,645,590
   Total shareholders' equity                         255,357      461,981
                                                  -----------  -----------
   Total liabilities and shareholders' equity     $ 3,975,914  $ 4,107,571
                                                  ===========  ===========

Contact Information

  • Contact:
    Patrick M. Fahey
    Frontier Financial Corporation
    Chairman and CEO
    425-423-7250

    John J. Dickson
    Frontier Bank
    President
    425-514-0700

    FRONTIER FINANCIAL CORPORATION
    332 SW Everett Mall Way
    Everett, Washington 98204