Item 1.01 Entry into a Material Definitive Agreement.

On July 2, 2009, Frontier Financial Corporation ("FFC") entered into a Written Agreement (the "Agreement") with the Federal Reserve Bank of San Francisco (the "Reserve Bank").

Under the terms of the Agreement, FFC has agreed to:

· Refrain from declaring or paying any dividends without prior written consent of the FRB.

· Refrain from making any distributions of interest or principal on subordinated debentures or trust preferred securities without prior written consent of the FRB.

· Refrain from incurring, increasing or guaranteeing any debt without prior written consent of the FRB.

· Implement a capital plan and maintain sufficient capital.

· Comply with notice and approval requirements established by the FRB relating to the appointment of directors and senior executive officers as well as any change in the responsibility of any current senior executive officer, and is prohibited from paying or agreeing to pay indemnification and severance payments except under certain circumstances, and with the prior approval of the FRB.

· Provide quarterly progress reports to the FRB.

The above description of the Agreement is qualified in its entirety by the document which is attached as Exhibits 10.1 .

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

10.1 Agreement with the FRB .

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