The Associated Press is reporting that Sterling Financial Corp. must raise $300 million to solidify its capital under an agreement announced Thursday with federal and state regulators.

AP also says that the largest bank based in Washington also announced the appointment of a new management team. Co-founder and chairman Harold Gilkey has stepped down and will be replaced by acting Chairman William Eisenhart and acting CEO Greg Siebly. Also departing was Heidi Stanley, chairwoman of the subsidiary Sterling Savings Bank.

Here's the rest of the story:

Sterling, with $12.4 billion in assets, has struggled with steep losses, particularly on real estate loans.

In August, the company announced it would defer interest payments on notes and preferred stock, triggering a sell-off of its common shares that dropped the price 20 percent to $2.42. The shares closed Wednesday at $1.66.

In the deal with the Federal Deposit Insurance Corp. and the Washington Department of Financial Institutions, Sterling agreed to develop new plans for maintaining adequate capital, reduce commercial real estate loans, and cut off loans to troubled borrowers, all within 60 days.

The Spokane bank also must review loan-loss allowances and submit a plan to reduce reliance on brokered deposits, which command higher interest rates.

The bank has 120 days to develop a three-year strategic plan to improve profitability and lower risk.

The order signed Oct. 9 also required the board of directors to notify regulators of any change in management.

In a statement by Eisenhart released Wednesday afternoon, the bank said the changes took effect immediately.

“The board is committed to taking the actions necessary to respond to the challenges that face Sterling,” Eisenhart said. “The board is bringing in a new generation of management to lead the efforts to strengthen Sterling’s capital and liquidity positions.”

Gilkey, 70, co-founded Sterling in 1983 and had been its chairman since. He was also corporate CEO and president, director of Sterling Bank, and CEO of Golf Savings Bank, another Sterling holding.

Stanley, 53, joined the bank in 1985. She became its CEO in 2008 and chairwoman earlier this year.

Eisenhart credited both for building a franchise that expanded from one branch in Spokane to 175 in Washington, Idaho, Montana, Oregon and California.

The appointments will become permanent when approved by the bank’s regulators, the statement said.

Gig Harbor's Threshold Group, a wealth management and family services firm, today announced its intent to merge with a similar firm, Ashbridge Investment Management of Philadelphia.

The preliminary agreement signed by the boards of both firms last month calls for creation of a single firm under the Threshold Group name. Offices will be maintained both in Gig Harbor and Philadelphia.

Threshold's New York office will be combined into the Philadelphia office. The Gig Harbor company's Portland office will remain open.

The merged firm will focus on comprehensive investment advisory services and an integrated range of family office services including financial and tax planning, estate planning, budget and cash flow management, wealth education and family governance, the two firms said in a press release.

Threshold was created by former Frank Russell Co. owners George and Jane Russell to serve wealthy families. The company employs 34 associates in three offices. Its assets under management total $1.5 billion.

Ashbridge is the creation of the Grace family of Philadelphia. Industrialist Charles B. Grace Sr. formed the firm in 1958 to manage the wealth generated by the sale of steel fabricator Heintz Manufacturing Co. and the money passed on by Eugene G. Grace Sr., long-time chairman of Bethlehem Steel. The firm has nine employees and manages $750 million in assets.

Along with a proclamation by Gov. Gregoire marking Thursday as Credit Union Day, several credit unions in the state are celebrating
the 75th year of their trade association – the Washington Credit Union League – by honoring the 75,000th new member of 2009 with more than $2,000 in gift certificates and prizes, according to the league.

Several credit unions in the state will note Thursday, which is also International Credit Union Day, by collecting donations for charities and holding free consumer shredding events.

“Seeing the Governor officially celebrate this sector of the financial services industry says so much more about credit unions than they could say about themselves,” said Washington credit Union League President & CEO John Annaloro in a press release.

This is the fifth consecutive year Gov. Gregoire has proclaimed Credit Union Day.

As to the prizes, the 75,000th person to join a Washington credit union has not yet arrived. According to the National Credit Union Administration, more than 67,000 Washingtonians had joined by the end of June. The winner will likely join during the third or fourth quarter of this year, said league spokesman David Bennett on Monday.

In the Olympia-Tumwater area, credit unions participating in the contest include O Bee Credit Union and Evergreen Direct Credit Union.

In the Tacoma area, the list includes Woodstone Credit Union, BECU and TAPCO.

A day after the failure of a deal that would have given Everett-based Frontier Financial Corp. access to a rescue package worth some $456 million, Chairman and CEO Patrick Fahey said the company will continue its search for capital.

“I’m not giving up,” he said in a phone interview earlier today. “We’re going to continue to work on our problem loans and shore up our capital position.”

The collapse of the proposed capital infusion – essentially a merger with SP Acquisition Holdings of New York – was jointly announced Monday in a filing to the U.S. Securities and Exchange Commission.

Both Frontier and the holding company blamed “certain closing conditions contained in the merger agreement (that) could not be met.” The agreement had been signed in late July.

Because the agreement has failed, SP Acquisition Holdings will cease existence on Oct. 10.

Frontier remains viable and continues speaking with possible investors, Fahey said today.

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Rainier Pacific is out today with an agreement consenting to a recent “cease and desist” order from regulators.

The agreement, issued to the Federal Deposit Insurance Corp. and the State Department of Financial Institutions, officially consents to the order. “Although Rainier Pacific Bank has agreed to the order, it has not admitted or denied any of the allegations in the order,” said a Rainier Pacific press release this afternoon.

The order required the bank to take various corrective measures, and no fines or penalties were attached. The bank assured customers that all services and transactions would continue.

The measures outlined in the original order, previously reported, included, among others, the retention of qualified management, a stronger presence by the board of directors, an increase in the bank’s capital, the maintenance of an adequate allowance for loan losses, a review of the bank’s loan policies and the development of a strategic plan.

“We are working diligently to fully comply with the order as quickly as possible,” said John Hall, Rainier Pacific president and CEO.

The response to regulators was issued after the close of trading. Rainier Pacific closed today at 86 cents, down 3 cents.

The Federal Deposit Insurance Corp. last week sent Tacoma-based Rainier Pacific Financial Group a “Supervisory Prompt Corrective Action Directive” making two demands.

Because the bank had earlier been declared “under-capitalized,” said the directive, and because an earlier capital restoration plan had been deemed unacceptable, and because “the Bank’s condition continues to deteriorate,” the agency demanded that the bank take one or both of two suggested actions within 60 days.

First, Rainier Pacific could sell enough voting shares or obligations so the bank would be adequately capitalized, and/or it could accept an offer to be acquired or to combine with another approved financial institution.

The directive also asked that the bank fill the currently vacant position of chief financial officer and that it take other steps to maintain viability.

“We’ve been endeavoring to recapitalize the bank, and we continue,” said President and CEO John Hall earlier this week.

He said Rainier Pacific has retained Keefe, Bruyette & Woods – the same independent investment firm that assisted with the bank’s initial public offering of 8.4 million shares in 2003 – to help manage the recapitalization.

“I don’t want to go so far as say surprised,” Hall said, of his reaction to the latest directive.

“We do not take it lightly,” he said. “We have to demonstrate progress to that directive.”

He acknowledged that “it’s difficult to raise capital” in the current economic climate, but offered assurances that during the 60-day deadline period “we’ll make as many contacts as possible.”

Rainier Pacific stock (ticker: RPFG) closed up 10 cents to $1.03 in Wednesday trading.

I spoke today with Barbara Thompson, senior vice president for corporate communication at First Citizens Bank of Raleigh, N.C.

That's the bank whose name you've been seeing on temporary signs placed over those of the former Venture Bank branches in the Puget Sound area.

Venture – troubled to the point of being insolvent – was overtaken by the state Department of Financial Institutions on Friday evening and sold immediately to First Citizens by the Federal Deposit Insurance Corp.

Thompson said the publicly traded First Citizens (Ticker: FCNCA) was "evaluating all options" concerning further expansion or disposition.

The bank "is talking to all current employees" at Venture about continued employment, she said.

First Citizens, she said, was committed to community involvement, and would remain so in Washington.

Although unknown to many local residents, the bank's name may well be familiar to people stationed at Fort Lewis, Thompson said, in that First Citizens has a presence at both Fort Bragg and Camp Lejeune.

Of Western Washington, she said, "We're excited to be there."

For a broad look at First Citizens, click here for a story that appeared today in the business section of our sister paper, the News & Observor of Raleigh.

The Washington Department of Financial Institutions closed DuPont-based Venture Bank at 6 p.m. today and immediately named the Federal Deposit Insurance Corp. as receiver.

The FDIC immediately entered into a prearranged purchase and assumption agreement with First-Citizens Bank and Trust Co. of Raleigh, N.C., which has assumed all deposits and assets – but for some brokered deposits – of Venture Bank.

Representatives of the FDIC entered all Venture branches, and the DuPont headquarters, after 6 p.m., and will remain for several hours reviewing figures, counting cash and dealing with other details.

All branches that were regularly scheduled to open on Saturday will do so, and the state DFI has assured all customers that their deposits and accounts are safe.

“Throughout the weekend and transition, Venture Bank customers can access their funds by writing checks or using ATM or debit cards,” the agency said in a press release this afternoon. “Checks will continue to be processed. Loan customers should continue to make their payments as usual. Online services will remain available.”

The demise of Venture was caused "large loan and investment losses” that depleted the bank's capital, the release said.

The bank had been under increased regulatory scrutiny for several months. Venture officials have said failed investments in Fannie Mae and Freddie Mac led in great part to the problems, as had loans gone sour in the recession. Recent attempts to raise capital have been unsuccessful.

Unlike other takeover transactions in the state that have seen the FDIC bear much of the financial responsibility for losses, the transaction with First-Citizens will be a “whole bank transaction,” said DFI’s head of banks Brad Williamson Friday afternoon.

“Up to now, no acquiring institutions have wanted to take on the problem loans. For the first time, a bank has taken on the loans as well. There is loss-exposure here. I hope that this is a precursor of confidence in the banking community.”

Williamson said two Northwest banks had also made bids for Venture, although he would not name them. Other banks from outside the area may also have bid.

“The fact that it’s a bank that isn't in the same market area – I think does preserve more jobs. From a local employment perspective, it is good news for the employees of the banks and the communities.”

Clarifying the process of the takeover, Williamson said, “It is not widely understood in most press reporting that the board of directors of the bank has consented, and has basically given us the bank. We have received a bank from the board of directors.”

Venture, he said, “is insolvent. They have recently re-filed regulatory reports, and those reports show them to be insolvent – with negative capital.”

Some 50 employees of the FDIC were part of the takeover, he said.

First-Citizen Bank & Trust, as it is known in the DFI release, is based in North Carolina and has a small presence in Washington with its subsidiary, IronStone Bank.

According to the First-Citizen Web site, “we continue to expand into new markets.”

It continues, “First Citizens Bank has grown to serve customers in more than 200 cities and towns in North Carolina, Virginia, West Virginia, Tennessee, Maryland and California. Our sister subsidiary, IronStone Bank, reaches into Georgia and Florida and into Texas, Arizona, Colorado, New Mexico, California, Oregon and Washington...Yet even with this expansion, we still maintain a tradition of sound financial principles that began in Eastern North Carolina.”

All Venture branches would be re-branded, Williamson said.

Venture Bank customers seeking more information about the closure should visit www.dfi.wa.gov/banks/venture.htm or www.fdic.gov or www.firstcitizens.com or they may call First-Citizens toll-free at 800-586-2351 between 7 a.m. and 8 p.m.

Tacoma-based Sound Credit Union announced today in a press release that the merger of MilePost Credit Union into Sound was completed on August 31.

“This merger allows new opportunities for growth and enhances the range of branch locations and services available to the members,” the release said.

Sound Credit Union now holds $477 million in assets and serves 47,000 members with a total of 12 branches located in Pierce, Thurston and King Counties – in downtown Tacoma, Auburn, East Tacoma, Federal Way, Gig Harbor, Key Center, Lakewood, Olympia, Parkland, Pacific Avenue, Puyallup and Westgate.

If you’re looking for money from a so-called payday lender, look out.

The State Department of Financial Institutions is warning consumers that some unlicensed lenders are offering services that are illegal in Washington.

The department offers a solution: Check the license. Verify.

“State law requires all payday lenders — including Internet payday lenders — offering services to Washington residents, including online payday lenders, to be licensed by DFI before doing business in our state. Some online payday lenders offer services that are not legal in Washington,” the department said today in a press release.

Potential customers can check licenses by checking here, or by going to the DFI site at www.dfi.wa.gov.

People considering taking out a payday loan should also be aware of current and coming law, the department said. Starting Jan. 1, 2010 new payday lending laws and regulations go into effect. Under the new laws:

• You may only borrow a total of $700 or 30% of your gross monthly income — whichever is LESS.
• Your information will be registered in a statewide database, ensuring that all payday lenders in Washington have your most up-to-date loan information.
• You may only take eight payday loans per 12-month period.
• If you unable to repay your loan on or before the day it is due, you need to notify your payday lender. Your lender is then required to offer to allow you to pay back your loan over a period of 90-180 days depending on the size of the loan. The installment plan will not incur additional fees.
• Lenders may not harass or intimidate you when collecting a loan. If you are harassed, contact the Washington State Department of Financial Institutions and file a complaint.

America’s Credit Union is still America’s Credit Union, but you may call it acu. So goes the new brand.

Introduced this week, the rebranding is the result of a process that began in May 2008, said Heidi Marzolf, ACU director of Marketing.

“There was a huge disconnect between who we were and what our brand and look and feel said about us,” she said this morning. “What we should have been, or who we are, is more technology-oriented, friendly, fast.”

ACU operates eight branches – two at Fort Lewis and six elsewhere in Pierce and Thurston counties. The credit union counts $343 million in assets and has approximately 34,500 members, Marzolf said.

The rebranding is in part the result of focus groups. “We asked if they had heard of us. The response was ‘America’s who?’” Marzolf said. ”The public in general didn’t know who we were.”

“We wanted warm up our color pallet and our logo and really have that reflect the credit union,” She said. The new logo – a lower case “acu” atop a curved horizon, is done in soft orange and burnt red, in a combination recalling perhaps an African sunset.

The marketing effort will include more advertising outreach, Marzolf said.

“We will be bringing out television commercials, we’ll be on comcast.net and in theater advertising.

Let’s say you’re a business owner and you’ve got a loan or a credit line with a bank in the South Sound. Let’s say that bank might be in trouble. And then you find out it’s really in trouble.

What do you next?

The state Department of Financial Institutions has developed a nice set of Frequently Asked Questions (with answers).

To see, click here or visit www.dfi.wa.gov/banks/business-loan-faqs.htm.

“We had so many issues after the Bank of Clark County, we really had to stop and evaluate - and have something proactive,” said Brad Williamson, head of the department’s banking division.

The questions range from “How would a bank failure - or a troubled bank - impact a business loan?” to “My bank has closed. How do I pay my loan? Can I draw on my business credit line?”

Or let’s say you have a verbal agreement with a bank, and that differs from the written loan documents or are not formally agreed to in writing. Should you be concerned in the event your bank fails?

Yes, you should.