The rebounding Puget Sound economy led to record profits in 2004 for Frontier Financial Corp.
The Everett-based parent company of Frontier Bank reported net income of $43 million for the year, an increase of 8.7 percent over 2003’s $39.6 million.
On a per-share basis, earnings climbed to $2.29, up from $2.12 in 2003.
Frontier officials said that the bank increased its loan portfolio by $206.3 million during the year, an increase of more than 11 percent.
“The economy in the Puget Sound region appears to be making great progress,” Frontier Bank chief executive John Dickson said in a statement.
The unemployment rate has dropped, he said, while the residential real estate market continues to be strong, and there are “strong signs of momentum” in commercial real estate.
Frontier expects its loans to increase another 8 percent to 11 percent in 2005, said Michael Clementz, president and chief executive of the bank’s holding firm.
For the fourth quarter, Frontier reported its net income increased almost 23 percent, to $11.5 million, up from $9.3 million in the fourth quarter of 2003.
That was the result, Dickson said, of an improved interest rate margin. The Federal Reserve’s two rate hikes allowed the bank to increase its interest charges, while payments to depositors grew at a slower rate.
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