Frontier Bank Opens SBA Loan Department

  Frontier Bank, subsidiary of Frontier Financial
Corporation (NASDAQ: FTBK) today announced the opening of a new SBA Loan
Department located at its Administrative Headquarters in Everett,
Washington.  The department will focus on making U.S. Small Business
Administration (SBA) 7(a) loans to eligible business and professional firms
throughout Frontier Bank's 50-branch network.

7(a) loans are the most basic and most commonly used type of SBA-guaranteed loans. They are also the most flexible, since financing can be obtained for a variety of general business purposes, including working capital, machinery and equipment, furniture and fixtures, land and building (including purchase, renovation and new construction), leasehold improvements, and debt refinancing (under special conditions). Loan maturity is up to 10 years for working capital and generally up to 25 years for fixed assets.

Local banker Robert Bryce will establish the department. Bryce was president and CEO of another local community bank from 1988 to 2006 and has been a business consultant and proponent of SBA lending for many years.

Assisting Bryce will be Philip Castillo. Castillo was formerly Senior Vice President at another local community bank, where he worked with Bryce for 13 years.

About Frontier

Frontier Financial Corporation is a Washington-based financial holding company, providing financial services through its commercial bank subsidiary, Frontier Bank, since 1978. Frontier Bank offers a wide range of banking and financial services to businesses and individuals in its market area, including trust, cash management and investment and insurance products. Frontier operates 47 offices in Clallam, Jefferson, King, Kitsap, Pierce, Skagit, Snohomish, Thurston, Whatcom counties in Washington and 3 offices in Oregon. Additional information regarding Frontier Bank and its services can be found at the bank's website: www.frontierbank.com.

This press release includes forward-looking statements and Frontier Financial Corporation intends for such statements to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements describe Frontier Financial Corporation's expectations regarding future events, including the Company's ability to attain compliance with certain NASDAQ rules. Future events are difficult to predict and are subject to risk and uncertainty which could cause actual results to differ materially and adversely. Additional information regarding risks and uncertainties are included in Frontier Financial Corporation's periodic filings on Forms 10-K and 10-Q with the Securities and Exchange Commission. Frontier Financial Corporation undertakes no obligation to revise or amend any forward-looking statements to reflect subsequent events or circumstances.

Contact: Patrick M. Fahey Chairman and CEO Frontier Financial Corporation 425-514-0700