Independent News Sources
Port Orchard-based Kitsap Bank has announced its earnings tripled for the first half of 2011 over the same period a year ago.
Profits for the first six months totaled $3.6 million, versus $1.13 million in 2010.
Assets for the bank now total $904 million, up $14 million in the second quarter, while non-performing assets have continued to decline, and now total less than 1 percent of total assets.
“The first half of 2011 represents our strongest two quarters in three years,” said Jim Carmichael, president and chief executive officer. “Kitsap Bank has worked diligently throughout the economic downturn to proactively address problem loans, and manage costs through consolidation and lowered expenditures. As a result, we’re very pleased to be one of the few banks able to focus on profitability and not problem loans.”
The announcement comes on two weeks after the bank disclosed in had raised $12.4 million in new capital through a private placement offering to assist in purchasing other lenders.
The addition brings the total capitalization of Kitsap Bank to more than $97 million.
This new investment comes from both current and new investors from the bank’s market area.
The capital offering is a rare occurrence in the life cycle of the century-old bank. It was more than 50 years ago that Kitsap Bank last raised a small amount of capital in order to open its first branch in East Bremerton.
“We’re are gratified by the confidence of our investors,” Carmichael said. “Kitsap Bank has remained well-capitalized over the years—well in excess of regulatory standards. This additional capital, coupled with the strongest first half earnings performance in three years, enhances our position and allows even greater flexibility as we move forward on our strategic plan.”
The proceeds from the offering will qualify as tangible common equity and Tier 1 capital and will be used for general corporate purposes, which may include capital to support the organic growth of the bank, and acquisitions or other business opportunities in its market areas, including FDIC-assisted transactions.
Kitsap Bank is the largest bank in Kitsap County, with a 22 percent market share, and ranks second in market share throughout its five-county footprint — the strongest of any community bank.
