Kitsap Bank achieved record earnings for the first half of 2003. Earnings for the period were $4.9 million. The return on assets was 2.0 percent and the return on equity increased to 20 percent.

The primary factors for the record profits were strong commercial loan growth, including substantial SBA loan growth, a significant increase in mortgage lending activity, and a reduction in expenses.

Commercial loans increased $37 million in residential mortgage loans during the first half. This set a record for residential mortgage lending at Kitsap Bank. The total assets of the Bank, founded in 1908, have now reached $507 million, which is a $50 million increase in the past year.