Frontier Financial Corporation announced a $141.1 million third-quarter loss Thursday, up from a net loss of $50 million in the second quarter of this year.
The parent company of Frontier Bank has struggled under the weight of bad real estate loans for more than a year. Frontier faced censure from state and federal agencies and staff layoffs as it tries to free itself from a loan portfolio weighted heavily with construction projects.
A merger with SP Acquisition Holdings, a New York-based acquisition company worth $427 million, was announced earlier this year. But bank officials called the deal off this month when it became clear federal regulators would not approve the merger in time for the closing deadline.
“While we were disappointed our merger with SPAH was terminated, the number of banks able to raise capital since we entered into the agreement with SPAH has increased dramatically,” said Frontier executive Pat Fahey. “Based on the numerous discussions with investors we have had since the termination of the merger, we are optimistic we will be successful in raising additional capital.”
Frontier’s stock dropped 6.21 percent before 11 a.m. Thursday.
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