PORT ORCHARD — Kitsap Bank has earned a five-star rating by BauerFinancial Inc., the nation’s leading independent bank rating firm.

Kitsap Bank was evaluated on profitability/loss trend, community reinvestment rating (CRA), level of delinquent loans and repossessed assets, market versus book value of its investment portfolio, and liquidity.

The recognition came after the bank reported solid earnings for the first half of the year. Profits increased 10 percent, totaling $3.96 million versus $3.59 million for the same period last year. Assets remained stable, totaling $909 million as of June 30.  Non-performing assets continued to decline, and are less than 1 percent of total assets. Deposits increased $15.5 million, to $780 million, from 2011 to 2012. The company reported total capital exceeding $100 million.

Established Aug. 8, 1908, Kitsap Bank is headquartered in Port Orchard, operating 21 locations throughout Western Washington.