Everett-based Frontier Bank has been bought by San Francisco-based Union Bank, said the Washington State Department of Financial Institutions (DFI).

DFI closed Frontier Bank Friday, citing inadequate capital and severe loan losses. Immediately following the closure, DFI named the FDIC as receiver of Frontier Bank.

The FDIC immediately entered into a purchase and assumption agreement with Union Bank, NA headquartered in San Francisco. Union Bank will assume all deposits and certain assets of Frontier Bank, except certain brokered deposits, which will be paid out by the FDIC, DFI said.

“Frontier Bank's capital has been depleted by large loan losses and loan loss reserve provisions associated with its real estate construction loan portfolio," Brad Williamson, Director of DFI's Division of Banks explained.

Frontier Bank has more than 50 branches located in Washington and Oregon. All will be assumed by Union Bank. All locations will open Monday as Union Bank branches.

Throughout the weekend and transition, Frontier Bank customers can access their funds by writing checks or using ATM or debit cards, DFI said. Checks will continue to be processed. Loan customers should continue to make their payments as usual. Online services also will remain available.

Frontier Bank customers seeking more information about the closure should visit www.dfi.wa.gov/banks/frontier.htm, or www.fdic.gov or www.frontierbank.com/.