Frontier Bank Gets Same Directive American Marine Got Toward the End

EVERETT — (Marketwire) Frontier Financial Corporation (NASDAQ: FTBK), the financial holding company for Frontier Bank, announced that Frontier Bank has received from the Federal Deposit Insurance Corporation (FDIC), a Supervisory Prompt Corrective Action Directive (Directive) dated March 16, 2010, due to the Bank’s critically undercapitalized status. The Directive requires that within 30 days of the effective date of the Directive, or by April 15, 2010, the Bank must either recapitalize by the sale of shares or obligations so that the Bank will be adequately recapitalized, or accept an offer to be acquired by another institution.
The Directive also reiterates a number of restrictions already imposed on the Bank by the regulators, prohibiting the Bank from accepting or renewing brokered deposits, increasing assets, paying dividends, increasing compensation or paying bonuses to directors or officers, opening, relocating or selling new offices, and requiring the Bank to comply with certain restrictions on interest rates and transactions with affiliates. The Bank was already subject to these restrictions prior to the issuance of the Directive, and key elements of the Bank’s strategic plan have included the reduction in its asset base and brokered deposits.