Frontier cease and desist

Comments

• S-Crow

  March 2009

  If not mistaken, I also believe Horizon Bank was also given a C & D a few weeks ago.
• S-Crow

  March 2009

  From their press release on the Frontier Bank website:
  

  "As a result, the bank increased its reserves for future loan losses significantly to a total of over $112 million at the end of 2008. Frontier did not originate any sub-prime mortgage loans or purchase investments backed by sub-prime mortgages."

  
  This is very troublesome to me because if their executives had any marbles rattling around, they would know that many borrowers purchasing housing from the builders they were lending to were utilizing 100% financing and sub-prime products. It was artificially escalating land and housing prices. I really believe after 2006 concluded, ANYBODY looking very hard at what the market was doing should have been very conservative with future development lending. But no, they were just as "clouded" in judgment as some of their commercial/developer/builder accounts because of the idea that our region was some how insulated from a severe downturn or that we were not in a gigantic bubble.
• rose-colored-coolaid

  March 2009

  From the article
  

  Regulators have issued a cease-and-desist order against Everett-based Frontier Bank, the largest commercial bank headquartered in Western Washington.

  
  So, how small of a bank do you have to be in WA to make it through the next few years? In 2010, will I read an article about "Bank X, the largest in WA state, was seized by the FDIC on Friday. All three branches will be open on Monday."
• Notorious A.R.T.

  March 2009

  City bank better start pricing more aggressively....
  
  http://seattletimes.nwsource.com/html/b ... ank31.html