The Federal Deposit Insurance Corp. has issued a prompt corrective action order against Frontier Bank of Everett, Wash., giving it until April 15 to merge with another institution or sell shares or obligations to become at least "adequately capitalized."

The March 16 order came as no surprise to the $3.6 billion-asset bank. Frontier Financial Corp., its parent company, announced last week that a January exam by the FDIC led the company to increase its loan-loss allowance by $30 million as of Dec. 31.

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