EVERETT, Wash. -- When Frontier Bank branches reopen Monday, they'll have a new name: Union Bank.
Frontier Financial Corp., the parent company of the long-time Everett institution, was closed by state regulators Friday. In nearly seamless succession, the Federal Deposit Insurance Corp. immediately assumed receivership of the bank and sold it to Union Bank of San Francisco.
The sale marks the end of a long fight by Frontier. Under increased scrutiny from regulators for more than a year, the bank has long struggled to break free from bad real estate loans and find investors to stop large losses.
Regulators started pounding the final nails in Frontier's coffin earlier this year when it labeled the bank "critically undercapitalized" and told officials to turn things around by April 15 or risk being sold to the highest bidder.
Brad Williamson, director of the state Department of Financial Institution's Division of Banks, said Frontier executives put up an admirable fight to recapitalize the bank. But large loan losses related to construction projects coupled with the state's economic climate was too high of a mountain to climb.
"I think in all cases, management tries desperately to bring the bank back to a safe condition," Williamson said. "But (Frontier CEO) Pat Fahey and the management at Frontier they really made a tremendous effort to recapitalize the institution."
Effective immediately, all Frontier depositors are customers of Union Bank. Frontier branches will be closed on Saturday for restructuring. Customers can still use their accounts by writing checks, using ATMs and debit cards and doing other banking through Frontier's website.
Branches will reopen Monday morning as Union Bank.
Frontier is the sixth Washington-based bank to close this year, according to FDIC data. City Bank of Lynnwood just two weeks ago landed on the failed-bank list, when regulators sold the foreclosure-plagued institution to Oak Harbor-based Whidbey Island Bank.
In 2009, 140 banks were shuttered across the U.S, the highest number in nearly two decades. FDIC officials predict more banks will close this year than last year.
Williamson is hesitant to say if that prediction will be true of Washington state.
"Nationally, I tend to agree with the FDIC," he said. "I don't really like to talk about local closures because we're starting to see shift in the capital markets."
Speculation about the bank's forced sale sent Frontier's stock soaring during the past week. But stock prices dropped 22 percent in trading Friday, ending the day at $3.57.
In after-hours trading before news of the closure, the stock continued to decline.
The drivers probably didn't know they were some of Frontier Bank's last customers when they pulled their cars through the drive-through at the branch on Highway 99 in Lynnwood on Friday evening.
It was business as usual.
The green 'open' lights above the lanes blinked over to red at 5:58 p.m. then they went dark.
The branch's doors locked at 6 p.m. Most of the interior lights went out.
A similar scene played out after closing Friday in downtown Everett. Branch employees gathered for meetings, visible through windows along Colby Avenue.
Jim Kavaney of Marysville used the cash machine outside the branch and said he was disappointed to hear about the closure.
"I've banked with them forever," he said. "I feel bad because I like Frontier, I like the people."
Last year, the scene looked different.
For several months in 2009, it appeared the bank had found a way to break free from the downward spiral: a group of investors headed by a New York hedgefund manager hoped to take over the company.
The deal would have injected Frontier with a $427 million cushion. That wouldn't only have saved Frontier, it could have meant expansion as it bought other failed banks through forced-sales.
Regulators didn't approve the deal in time for a deadline. Frontier CEO Pat Fahey relaunched a search for new investors, but didn't find a suitable match in time.
Frontier has been an Everett institution since 1978. It was conceived in a Black Angus restaurant over in a dinner meeting that brought founder Bob Dickson together with future Everett Mayor Ed Hansen.
Dickson ran the bank as CEO for decades, handing the reins over to his son, John Dickson, in 2003.
When bad real estate loans started taking a toll on the bank in 2008, John Dickson moved from CEO to bank president. And Frontier's board of directors voted to appoint retired banker Fahey to the top position.
Fahey fired John Dickson in March when he refused to cancel a family vacation to Hawaii despite the looming FDIC deadline.
When reached at his home Friday, John Dickson declined to comment.
On Tuesday, he sold thousands of Frontier shares worth more than $39,000, according to filings with the U.S. Securities and Exchange Commission.
Bob Dickson, 76, was more contemplative about the death notice delivered to the bank he helped found.
Frontier was a victim of recession, he said. The bank was not making subprime loans, Dickson pointed out; it was loaning money to builders.
Frontier took a massive blow when builders defaulted on their loans after the housing market collapsed.
"It's not only Frontier Bank," Dickson said. "Many other community banks were hit hard by this."
Union Bank went on a buying spree in April.
A subsidiary of UnionBanCal Corp., Union Bank recently acquired $600 million in assets from Tamalpais Bank after the FDIC seized that bank, based in San Rafael, Calif.
Union Bank's presence dwarfs Frontier's: 346 banking offices in California, Oregon, Washington and Texas and two international offices.
Union Bank's assets total $85.2 billion. It acquired $3.2 billion in total assets from Frontier and $2.5 billion in deposits, along with Frontier's 50 branch offices in Washington and Oregon.
A big incentive for Union Bank was the FDIC agreeing to a loss-share transaction on $3.04 billion of Frontier's less-desirable assets.
"I think it's a good match," said Williamson, the state director of banks. "Union Bank doesn't have a lot of presence in Washington state. And Frontier Bank gives them an immediate presence."
In a prepared statement, Union Bank CEO Masaaki Tanaka agreed: "We have been looking for the right opportunity to expand in the region for some time and Frontier Bank's commercial and consumer businesses match well with our own, particularly in retail and corporate banking, and wealth management."
Showing posts with label management. Show all posts
Showing posts with label management. Show all posts
Wednesday, May 5, 2010
Personal selection of financial software for students
Students deal with problems both at the same time, mostly the money management takes the back seat. more than expected do not, students do not request suitable organisation of their accounts, as are many of their funds, possibly from their relatives or to a unchanging schedule where they are employed. The outcome is a tyro who is confronted not usually with payments unclear school loans, but one that has little or no savings. if you find it difficult to time, there are sit on the state of your finance management and concentration on income and paperwork, a personal finance program will unequivocally make the process cheaper. is it expensive? Most software pda monetary basis, or Smartphone software, at $ thirty in normal prices. You can go aloft or lower, depending on the facilities included. as a student, you need usually the basic functions, such as bill monitoring, monetary calculator, billing and alerts. Amateur models personal finance software embody calculators for mortgages, stock trade systems that you unequivocally have no use for the moment. Financial management is compulsory if the monetary goals perplexing to achieve. For example, if you intend to take one more courses in the subsequent division for a monetary formulation tool to help you establish if there areas in your stream bill source, where money why. a personal finance software will discuss it you if a course is something extra you can equates to formed on your stream habits, or either sure expenses, you have to regulate in order to do so. The educational life is hard sufficient as it is. You can discharge the stress of your finance management and equates to more time for other critical topics with a unsentimental monetary tool with you wherever you go. be obliged for the students to learn to manage your money yourself. Not usually will you earn a substantial grade of joy as you learn to conclude your relatives more, to control your spending.
Brewer's bond rating improves
BREWER, Maine — The city's finance director said she was nervous about a recent surveillance review of the city’s bond rating, but apparently she had nothing to worry about after hearing this week that the city's bond rate actually improved by two levels.
“Given the difficult times, I wasn’t sure what to expect,” Finance Director Karen Fussell said Friday after receiving a fiscal management assessment report on Wednesday by Standard & Poor’s Financial Services LLC.
Standard and Poor’s upgraded Brewer’s bond rating from A, or upper medium grade, to AA-, or high-quality grade, Fussell told City Council members in a memo Friday.
The last time the New York-based company rated Brewer was 2005.
“In these difficult times to see an upgrade is noteworthy,” she said. It “reflects very positively on the city’s fiscal management and the council’s leadership.”
The Standard & Poor’s report states, “The outlook is stable,” for Brewer, and reflects a “good financial position despite ongoing budget stress.”
In Fussell’s memo to councilors, she highlighted the bond company’s other high points — that taxpayer concentration is diverse, and despite ongoing stress largely caused by state aid cuts and a slight decline in the tax base, Brewer’s financial operations remain favorable.
The report also states, “Brewer’s management practices are considered ‘good’ under Standard & Poor’s financial management assessment,” and that “the city’s debt burden remains manageable.”
“Given the difficult times, I wasn’t sure what to expect,” Finance Director Karen Fussell said Friday after receiving a fiscal management assessment report on Wednesday by Standard & Poor’s Financial Services LLC.
Standard and Poor’s upgraded Brewer’s bond rating from A, or upper medium grade, to AA-, or high-quality grade, Fussell told City Council members in a memo Friday.
The last time the New York-based company rated Brewer was 2005.
“In these difficult times to see an upgrade is noteworthy,” she said. It “reflects very positively on the city’s fiscal management and the council’s leadership.”
The Standard & Poor’s report states, “The outlook is stable,” for Brewer, and reflects a “good financial position despite ongoing budget stress.”
In Fussell’s memo to councilors, she highlighted the bond company’s other high points — that taxpayer concentration is diverse, and despite ongoing stress largely caused by state aid cuts and a slight decline in the tax base, Brewer’s financial operations remain favorable.
The report also states, “Brewer’s management practices are considered ‘good’ under Standard & Poor’s financial management assessment,” and that “the city’s debt burden remains manageable.”
Sunday, April 11, 2010
Career in Financial Management
Function
Financial management is the process of monitoring and reporting cash flow, conducting financial assessments, and setting up efficient systems for handling funds. Most financial management jobs can be found at commercial banks, credit unions and finance companies, but they may also be in a government office, health care industry or technology. Some financial managers may work as independent contractors to offer private services and money management advice. Overall, financial managers perform tasks that are unique to their organization.
Responsibilities
Financial management officers and professionals are responsible for: determining credit ratings and credit ceilings for the organization and its partners and/or vendors; performing collections duties on past-due accounts; preparing financial statements such as balance sheets, income statements and cash flow projections; working with the accounting department to retrieve or produce various financial reports; supervising cash management activities; analyzing financial data and providing details to the board of an organization; managing insurance budgets; and overseeing all banking activities of the organization.
Education and Training
Individuals interested in pursuing a career in financial management typically need at least a bachelor's degree in business, accounting, finance or economics to obtain an entry-level position. They may develop important skills and acquire specialized knowledge on the job, and those who wish to pursue supervisory positions can complete an MBA program. Professional training programs for financial managers are also available by the American Institute of Banking, the American Bankers Association and through various employers. Financial managers may choose to specialize in a certain field such as investments or auditing, and can pursue certification in these areas.
Career Options
In addition to serving as a chief financial officer (CFO) or financial manager for an organization, individuals with a strong background in financial management can find work as accountants, auditors, budget analysts, insurance underwriters, personal financial advisers, financial services sales agents, real estate brokers, loan officers, securities agents or financial analysts. Some professionals who hold a master's degree or higher may also pursue teaching careers at a college, university or secondary school.
Employment Prospects
Job seekers in the financial industry are expected to face tough competition. Individuals who wish to pursue financial management will need several years of experience in the field, especially in highly specialized industries. Many of these professionals are paid well. Wage and salary financial managers routinely make six-figure salaries; those who work in the securities and commodity contract industry, and managers of companies and industries, make significantly more.
Financial management is the process of monitoring and reporting cash flow, conducting financial assessments, and setting up efficient systems for handling funds. Most financial management jobs can be found at commercial banks, credit unions and finance companies, but they may also be in a government office, health care industry or technology. Some financial managers may work as independent contractors to offer private services and money management advice. Overall, financial managers perform tasks that are unique to their organization.
Responsibilities
Financial management officers and professionals are responsible for: determining credit ratings and credit ceilings for the organization and its partners and/or vendors; performing collections duties on past-due accounts; preparing financial statements such as balance sheets, income statements and cash flow projections; working with the accounting department to retrieve or produce various financial reports; supervising cash management activities; analyzing financial data and providing details to the board of an organization; managing insurance budgets; and overseeing all banking activities of the organization.
Education and Training
Individuals interested in pursuing a career in financial management typically need at least a bachelor's degree in business, accounting, finance or economics to obtain an entry-level position. They may develop important skills and acquire specialized knowledge on the job, and those who wish to pursue supervisory positions can complete an MBA program. Professional training programs for financial managers are also available by the American Institute of Banking, the American Bankers Association and through various employers. Financial managers may choose to specialize in a certain field such as investments or auditing, and can pursue certification in these areas.
Career Options
In addition to serving as a chief financial officer (CFO) or financial manager for an organization, individuals with a strong background in financial management can find work as accountants, auditors, budget analysts, insurance underwriters, personal financial advisers, financial services sales agents, real estate brokers, loan officers, securities agents or financial analysts. Some professionals who hold a master's degree or higher may also pursue teaching careers at a college, university or secondary school.
Employment Prospects
Job seekers in the financial industry are expected to face tough competition. Individuals who wish to pursue financial management will need several years of experience in the field, especially in highly specialized industries. Many of these professionals are paid well. Wage and salary financial managers routinely make six-figure salaries; those who work in the securities and commodity contract industry, and managers of companies and industries, make significantly more.
Effective Financial Management in Business
Financing plan. It is a short statement but it has an incredible impact on where your business will be in the future. When you start a business, business planning is without question, staring you right in the face...But many times small business owners let this lose its place on their list of priorities. A solidly structured plan for financial management should be on the top of your business goals today, just as much or more so, than the day that you started your business. For example: Remember the big dot com boom that came crashing down around many online business owners? A big reason for this was because of the assumed attitude of "We are filthy rich today, who needs to plan for tomorrow? It will always be like this, won't it?" Well, history has proven the answer to this to be a big flashing red NO!
To avoid these arrogant decisions and mistakes we must plan ahead. We must have a clear vision of where we are going, where we want to be, and how not sticking to our business plan will effect us. In hard times we need to weigh our options carefully. Do we take out a business loan to pay our employees when the revenue has ceased to trickle in, or did we think ahead and tuck away a portion of our profits into a business savings account for such an occasion? The success or demise of your company depends on your answer to such a question as this. Its a fact of business life. So instead of finding ourselves awestruck and helpless when the stock market crashes again next year, let us be the wise sage that plans for it now. How? Well the options are abundant, however there are a handful of tried and true methods that are always consistent winners. Select a reputable financial adviser. If you are a "do-it-yourselfer" then consider brushing up on your skills by taking an online class.You can do this from the office with minimal effort, trust me, I know.
To avoid these arrogant decisions and mistakes we must plan ahead. We must have a clear vision of where we are going, where we want to be, and how not sticking to our business plan will effect us. In hard times we need to weigh our options carefully. Do we take out a business loan to pay our employees when the revenue has ceased to trickle in, or did we think ahead and tuck away a portion of our profits into a business savings account for such an occasion? The success or demise of your company depends on your answer to such a question as this. Its a fact of business life. So instead of finding ourselves awestruck and helpless when the stock market crashes again next year, let us be the wise sage that plans for it now. How? Well the options are abundant, however there are a handful of tried and true methods that are always consistent winners. Select a reputable financial adviser. If you are a "do-it-yourselfer" then consider brushing up on your skills by taking an online class.You can do this from the office with minimal effort, trust me, I know.
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