A Washington state lender has agreed not to take on debt or pay dividends without Federal Reserve approval.

The Fed on Tuesday released its agreement with Frontier Financial Corp. in Everett. The firm owns Frontier Bank.

Under the agreement, the company cannot declare or pay dividends without written Fed approval. Also, it can't incur or guarantee debt without clearance by the central bank.

 
   -By Jeff Bater, Dow Jones Newswires; 202 862 9249; jeff.bater@dowjones.com