NEW YORK ( TheStreet) -- Several stocks trading near $5 were moving on above-average volume during Wednesday's session.

Frontier Financial ( FTBK) dropped by $1.21, or 28.5%, to $3.03 after the company said it is now considered "critically undercapitalized" by the Federal Deposit Insurance Corp., and that it could be placed into conservatorship or receivership within 90 days. Frontier Financial said it would "suffer a complete loss of the value of its ownership interest in Frontier Bank," and that there is "substantial doubt about our ability to continue as a going concern." The announcement came as Frontier Financial revised its fourth-quarter loss to $14.89 a share from its initial stated loss of $7.19 a share. Volume topped 208,000 shares, compared to the 50-day average daily volume of 92,000, according to the Nasdaq.

Optimal Group ( OPMR) shares surged by 78 cents, or 48.6%, to $2.38 after the consumer robotic, toy and entertainment products maker said it has entered into support agreement with the presidents of WowWee USA and Canada where the management team would offer $2.40 a share in cash for all outstanding shares of Optimal Group. Volume topped 133,000 shares, compared to the 50-day average daily volume of 11,000.

City Bank ( CTBK) slumped by 37 cents, or 16.2%, to $2.65 after the company said it has received a Corrective Action Directive from the Federal Deposit Insurance Corp. The bank now has until April 10 to raise more money or find a buyer. Volume topped 351,000 shares, compared to the three-month average daily volume of 174,000.

LSI Corp. ( LSI) rallied by 69 cents, or 11.9%, to $6.51 after the semiconductor company offered better-than-expected earnings and revenue guidance for the first quarter, citing a recovery of enterprise IT spending. LSI also announced a stock repurchase program of up to $250 million. Volume topped 14.14 million shares, compared to the three-month average daily volume of 9.63 million, according to Yahoo! Finance.

-- Written by Robert Holmes in Boston.

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