Washington

Another round of writedowns on pooled trust-preferred securities has left Rainier Pacific Financial Group Inc. and its bank unit significantly undercapitalized.

Horizon Financial Corp. in Bellingham, Wash., has warned that it may fail because the company and its bank unit are critically undercapitalized.

Donald Marron, whose Lightyear Capital LLC agreed to inject $40 million into Cascade, said that his team has met with roughly 150 management teams at midsize community banks in the past year.

Just three months after saying its problems had begun to level off, Sterling Financial Corp. in Spokane, Wash., unexpectedly ousted its longtime leader and was ordered by regulators to boost capital levels.

Frontier Financial Corp. of Everett, Wash., is scrambling for capital again, after announcing Monday that its lifesaving deal with a blank-check company had fallen apart.

The $1.8 billion-asset company said in a Securities and Exchange Commission filing Monday that it has 60 days to submit a plan for maintaining sufficient capital, under a written agreement it signed Sept. 15 with the Federal Reserve Bank of San Francisco.

Washington Federal Inc. in Seattle is raising $300 million of capital to support its growth and possibly make acquisitions.

Time ran out on Corus Bank late Friday as regulators closed the once-high-flying Chicago condominium lender and sold its operations to another institution.

SP Acquisition Holdings Inc., a blank check company with $429 million to spend, has agreed to buy the $4 billion-asset Frontier through a share exchange and then recapitalize its bank.