Kitsap Bank, with 17 locations in Kitsap County and branches in Clallam, Pierce and King counties as well, reported an earnings increase of 25 percent in the first quarter, with record asset and deposit growth.

Earnings for the quarter were $2,066,000 compared to $1,657,000 for the same period in 2004. The Bank also reports record asset and deposit growth of $28 million during the quarter, with over half of that growth attributed in an increase in loans.

One of the primary factors contributing to the Bank’s increased profits was significant loan growth. Over the past year, Kitsap Bank’s total loans increased by $49 million, including $38 million in commercial loan growth. The launch of online mortgage and consumer lending capabilities has led to solid increases in those loan categories as well. Total loans in the Bank have now reached $456 million, reflecting a $100 million increase over the past three years.

The Bank also attributes its increased fee income and loan and deposit growth to the introduction of a variety of new products during the year. Enhanced cash management services, new online capabilities and additional product offerings are contributing to the Bank’s success.

Total assets for the 96 year old bank have now reached $580 million.