Chairman and CEO Patrick Fahey said that the action was taken as the result of an ongoing review of bank operations to identify ways to operate more efficiently and continue to adjust the bank's structure to reflect current economic conditions.

The reductions occurred at all levels and in all parts of the corporation. The departing employees received severance pay based on their years of service, said Frontier Financial.

The corporation expects that this reduction will result in a $360,000 pre-tax charge in the second quarter of 2009 and will provide an annual pre-tax cost savings of approximately $2.5 million.

Mr Fahey said: "This has been a difficult decision in difficult times, after having taken a number of actions over the past several months to lessen the size of a necessary reduction."

A service of YellowBrix, Inc.