EVERETT – Frontier Financial Corporation reported a net loss of $33.9 million for the fourth quarter of 2009, signaling a drastic drop in losses from previous quarters.
The final quarter of 2009 brought an end to a tumultuous year for the parent company of Frontier Bank, a year in which losses totaled nearly $259 million.
The bank called the numbers released early today “improved operating results.” Third-quarter losses in 2009 totaled $141.1 million, and the fourth quarter of 2008 brought a loss of $89.5 million.
Despite a year in which the bank struggled beneath the weight of bad real estate loans and federal censure, bank officials painted a hopeful picture of the future.
“It is gratifying to see improving trends due to the tremendous efforts and sacrifices of our staff during these very difficult times,” said Frontier CEO Pat Fahey. “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.”
The fourth-quarter losses were impacted by $40.4 million and $89.2 million income-tax benefits, stemming from legislation that lets some banks receive a refund of back taxes from 2008 or 2009.
“We expect to receive an income tax refund of approximately $82.4 million in 2010,” according to a Frontier statement.
The bank is operating under the guidelines of a federal cease and desist order that mandates a reduced concentration in real estate and land development loans. Frontier reported today that those loan portfolios were reduced $1.39 billion between June 30 of 2008 and the end of 2009.
Earlier this week, Frontier shareholders approved a plan to increase the number of authorized common shares to 200 million from 10 million, part of a plan to repair the bank’s standing.
For months, the bank has sought a white-knight investor that could reverse the long string of quarterly losses. Earlier this year, a planned merger with a New-York-based acquisitions company failed to meet federal deadlines and was called off.
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