Union Bank assumes Frontier Bank
By JEREMIAH O’HAGAN Staff Reporter
On April 30, Union Bank N.A. assumed responsibility of Frontier Bank in an agreement with the Federal Deposit Insurance Corporation (FDIC), and all 50 Frontier branches reopened as Union Bank branches last Monday.
The exchange came shortly after Washington State Department of Financial Institutions closed Frontier, which is based in Everett, and appointed FDIC as the receiver.
Union Bank is the primary subsidiary of Union- BanCal Corporation, based in San Francisco, which is in turn a subsidiary of Japan’s Mitsubishi UFJ Financial Group’s Bank of Tokyo.
Frontier Bank is a privately held company. The formation began in 1999 when First National America’s Bank and Valley National Bank merged. The addition of new branches over the past several years has given Frontier Bank a strong presence in many communities.
In addition to the 47 Frontier Bank branches in Washington and three in Oregon, Union Bank acquired $3.2 billion in assets — $2.8 billion of that in loans and real estate — and $2.5 billion in deposits. They also assumed certain liabilities.
Union Bank welcomed Frontier Bank customers in a press release, assuring them that their “branches will be open during their normal business hours… your banking services will not be interrupted in any way and you should continue to bank the same way you currently do.”
Stanwood’s branch manager, Sonja Butler, said, “We’re doing really well, and we’re really pleased with the whole transaction, so far.”
Masaaki Tanaka, Union Bank president, said all of Frontier’s FDIC-insured accounts will remain insured as they were before the acquisition, and customers will still have complete access to their money.
Acquired deposits will now be backed by the financial strength of UnionBan- Cal, which posted assets of $85 billion in March, he added.
One thing customers can do to ease the transition is use at least one of their accounts within the next 18 months.
Union Bank’s Web site noted that this process is called ‘claiming’ and helps the bank know which accounts are active. All customers have to do is use an ATM/debit card, write a check, make a deposit or withdrawal, or use online bill pay.
All inactive accounts must be turned over to FDIC after 18 months.
Union Bank has 346 offices in California, Oregon, Washington and Texas. It also has two international branches.
Information is available
at Union Bank’s Web site,
www.unionbank.com.
