EVERETT — Frontier Financial Corp. revised its 2009 losses today, saying the company lost $295.1million in 2009 instead of $258.8 million.
Frontier Financial, the parent company of Frontier Bank, is now considered ‘critically undercapitalized,” according to a statement from bank officials. That classification makes it more likely that government regulators will take control of the bank.
According to a statement from Frontier, the institution could be placed into “conservatorship or receivership” after 90 days, unless the Federal Deposit Insurance Corp. determines other action is warranted.
“If Frontier Bank is placed into conservatorship or receivership, the Corporation would suffer a complete loss of the value of its ownership interest in Frontier Bank,” according to a statement from Frontier.
Today’s loss revision is mainly due to an order from the FDIC, which told the bank to set aside an additional $30 million to make up for bad loans.
The federal agency also told Frontier to revise its totals for real-estate holdings, saying the bank has about $3.5 million less in foreclosures than reported earlier this year.
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