A booming real estate market pushed up profits at Frontier Financial Corp. by nearly 20 percent in 2005.
The Everett-based parent company of Frontier Bank on Monday reported a year-end profit of $51.6 million, up 19.8 percent from 2004’s profit of $43 million.
On a per-share basis, profits grew to $1.81 from $1.53, adjusted for splits.
The bank’s fourth quarter profits increased 24.8 percent, to $14.3 million from $11.5 million. On a per-share basis, the quarter’s profits grew to 50 cents, up from 41 cents in the same period last year.
Frontier president and chief executive John Dickson attributed the growth to a strong market for loans to homebuilders and land developers. The bank increased its loan portfolio by more than 20 percent over the year, he said.
Interest rate increases by the Federal Reserve also meant that Frontier was able to increase its net interest margin – the difference between what the bank paid out in interest on deposits and what it took in on interest it charged on loans. Dickson said the margin grew to 5.48 percent, up from 5.14 percent.
Frontier also said Monday that it expects to complete its acquisition of NorthStar Financial Corp. by the end of the January. NorthStar’s two branches, in Seattle’s Ballard and Fremont neighborhoods, will open as Frontier Bank branches on Feb. 1.
Talk to us
> Give us your news tips.
> Send us a letter to the editor.
> More Herald contact information.
