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Frontier stock dips to 52-week low; board orders change in annual meeting while a top executive resigns

Post by C.R. Roberts / The News Tribune on March 31, 2010 at 12:20 pm |
March 31, 2010 1:56 pm

Stock in Everett-based Frontier Bank fell to a 52-week low today on news this week that President John Dickson has abruptly resigned.

At the market’s close, the stock was trading at $1.95, down 16 cents.

Neither Dickson nor Frontier Chairman and CEO Patrick Fahey offered comment on the change in leadership.

Frontier’s board last week reported to the Security and Exchange Commission that it had decided to change the date of its annual meeting. Previously, Frontier shareholders would meet within 120 days of the end of the bank’s fiscal year. Now, the meeting can be held at any time within a year of the end of the fiscal year.

Frontier announced last week that its holding company, Frontier Financial Corp., had received a “Supervisory Prompt Corrective Action Directive” on March 16 from its regulator, the Federal Deposit Insurance Corp.

With a deadline of 30 days – or by April 15 – the order demanded that the bank “must either recapitalize by the sale of shares or obligations so that the bank will be adequately recapitalized, or accept an offer to be acquired by another institution.” The order also repeated other restrictions previously imposed.

Frontier answered in a press release that it “has been aggressively reducing its concentration in real estate acquisition, development and construction loans and nonperforming loans. Frontier continues its efforts to raise additional capital which began in the fourth quarter of 2008.”

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