Frontier Bank reports end of year results

Written by Dave Gallagher | The Bellingham Herald | January 29, 2010

Everett-based Frontier Bank reported its year-end numbers today. The first part of its report is pasted below (for the full report, go to frontierbank.com). One thing I noticed in the numbers is its Tier 1 leverage ratio is now 2.69 percent, down from 8.62 percent at the end of 2008. The bank needs to get that up to 10 percent to satisfy the FDIC’s Cease-and-Desist order.

EVERETT, WASHINGTON – January 29, 2010 – Frontier Financial Corporation (NASDAQ: FTBK) today announced
results for the quarter and year ended December 31, 2009. For the three months ended December 31, 2009, the Corporation reported a net loss of $33.9 million, or ($7.19) per diluted share, compared to a net loss of $141.1 million, or ($29.93) per diluted share, for the three months ended September 30, 2009, and net loss of $89.5 million, or ($19.03) per diluted share, for the three months ended December 31, 2008. For the year ended December 31, 2009, the Corporation reported a net loss of $258.8 million, or ($54.91) per diluted share, compared to a net loss of $89.7, or ($19.10) per diluted share, a year ago. All results reflect the one-for-ten reverse stock split, which was effective November 24, 2009.
Highlights for the fourth quarter and year ended December 31, 2009 include:
• Net loss decreased $107.2 million, or 76.0%, for the fourth quarter 2009, compared to the previous quarter;
• Annualized tax equivalent net interest margin increased 26 basis point to 2.30% at December 31, 2009, compared to 2.04% at September 30, 2009;
• Nonperforming loans decreased $105.3 million, or 13.0%, for the fourth quarter 2009, compared to the previous
quarter;
• Nonperforming assets decreased $34.0 million, or 3.7%, for the fourth quarter 2009, compared to the previous
quarter;
• The ratio of loans past due 30 to 89 days to total loans improved to 4.3% at December 31, 2009, compared to 7.3%
at September 30, 2009;
• Total deposits, excluding brokered deposits, increased $29.1 million for the fourth quarter 2009, compared to the
previous quarter; and
• Total liquidity, as a percentage of total assets, improved to 13.5% at December 31, 2009, compared to 12.1% at
September 30, 2009.
Patrick M. Fahey, Chairman and CEO of Frontier Financial Corporation said, “It is gratifying to see improving trends due to the tremendous efforts and sacrifices of our staff during these very difficult times. Our progress and improved liquidity are very much a result of the loyalty of our customers and the strong support of the communities we serve, for which we are very grateful.”