The shareholders of Bank of Salem have approved the principal terms of the agreement and plan of merger between the bank and Frontier Financial Corporation.

In addition, all regulatory approval has been received. Frontier and Salem expect the closing to occur on November 30, 2007.

Following the merger, Jon Johnson, president and CEO of Salem will continue as senior vice president and regional manager, Larry Johnson, executive vice president and chief credit officer of Salem will continue as senior vice president and regional credit administrator, and David DeSemple, Salem’s vice president of operations, will continue as vice president and regional operations and human resource manager. All employees of Salem are expected to be retained in the merger.