09/28/2007: "Whidbey Island Bank & Frontier Bank Merge"

Frontier Financial Corporation holding company of Frontier Bank, and Washington Banking Company holding company of Whidbey Island Bank, have announced the merger of Washington Banking with, and into, Frontier.

The Frontier holding company has $3.6 billion in assets that will join with the and holding company of Whidbey Island Bank assets of $850 million.

The move is similar to the merger of the Banner & Islanders Bank that occurred last year. While such mergers are often in the best interest of the shareholders, there can be some disruption in the local communities as the larger banks restructure administration and personnel, and some operations are moved off island to the parent company.

John J. Dickson, President and CEO of Frontier Financial Corporation stated “We are absolutely thrilled to have Washington Banking join our organization," and added, "Whidbey Island Bank is a high quality organization that operates with a philosophy very similar to our own. We believe this will be an outstanding combination of highly talented employees that bring with them a solid customer base, and we look forward to welcoming the Washington Banking team into the Frontier family."

The transaction is expected to close in the first quarter of 2008, pending Washington Banking shareholder approval, regulatory approvals and satisfaction of other customary closing conditions. The transaction is expected to be accretive to Frontier's earnings per share in 2008. Following the completion of the merger, Washington Banking shareholders will own approximately 11% of the combined company