Washington Banking shares fell more than 20 percent Wednesday, as the company and Frontier Financial exchanged claims over their failed combination.

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Shares of Washington Banking fell more than 22 percent today following the company’s announcement Tuesday that it was terminating its acquisition by Frontier Financial.

Stock in the 19-branch bank, based in Oak Harbor, closed down $2.81 to $9.69, on more than 34 times its average volume.

Each company is now claiming the other one should pay a $5 million termination fee that was part of their September 2007 deal, according to a statement issued late Tuesday by Everett-based Frontier Financial.

Frontier shares ended trading down 2 percent, or 29 cents, to $14.25.

Washington Banking said Tuesday that it was terminating the agreement because Frontier had not obtained regulatory approval for the sale “in a timely manner.”

Frontier stock was above $23 when the cash-and-stock acquisition was announced, and Washington Banking said in regulatory filings that the agreement called for Frontier to supplement that package under certain circumstances if the stock declined. No increased offer by Frontier was announced, however.