| It was a proud Jim Carmichael, president of Kitsap Bank, that announced the Port Orchard based institution had achieved record earnings for the year 2001.
Earnings for the year were $8.5 million, compared to $5.8 million for 2000 — a 47 percent increase. Fourth quarter earnings of $2.3 million increased 52 percent over last year. The return on assets was 1.95 percent compared to 1.38 percent in 2000 and the return on equity increased to 18 percent from 12 percent last year.
According to Carmichael, 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 by $31 million and total loans reached $366 million — a $100 million increase over the past three years. In addition, the Bank closed $150 million in residential mortgage loans during the year — another record for the bank. The total assets of the Bank, founded in 1908, have now reached $450 million.
Kitsap Bank operates 26 offices in Kitsap, King, Clallam, Pierce and Mason Counties. | 
