EVERETT— The Federal Reserve tightened its oversight of the parent company of Frontier Bank earlier this week, restricting Frontier Financial Corp. from making large-scale financial decision without approval from the agency’s board of governors.
According to the agreement, released by the Federal Reserve Board of Governors Tuesday, Frontier has 60 days to submit a plan detailing projected growth and the bank’s plan for maintaining sufficient capital.
In the meantime, Frontier can’t pay dividends or make high-level personnel decisions without the approval of the Federal Reserve’s board of governors.
Frontier’s portfolio was heavily comprised of real estate investments, and the bank was hit hard when the housing market slumped last year.
This latest censure follows other action by regulators. Frontier is already operating under a federal cease-and-desist order, which makes similar demands on the bank’s performance.
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