Kitsap Bank achieved record earnings for the fourth quarter and for the year ending Dec. 31, 2002. Record earnings of $2.5 million were achieved for the quarter. Earnings for the year were a record $9.8 million, compared to $8.5 million for 2001. This was a 15 percent increase over the prior year’s earnings.

The return on assets was 2.1 percent compared to 1.9 percent in 2001 and the return on equity increased to 19 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 $38 million for the past year and total loans have now reached $394 million. In addition, the bank closed $190 million in residential mortgage loans this year. This also set a record for residential mortgage lending.

The total assets of the bank, founded in 1908, increased $38 million to $490 million.