Q4 Net Interest Margin Increases to 3.72%, Net Interest Income Grows 8.6%
Q4 net interest margin increased to 3.72%, an increase of 8 basis points from 3.64% for Q3. Tangible book value per share was $19.98 from $19.46 last quarter end. Common equity tier 1 capital ratio was 12.7% vs. 12.4% last quarter. CEO Bryan McDonald commented, "We are very pleased with our operating results for Q4, which included stronger profitability, deposit growth, margin expansion and lower cost of deposits. The improvement in net interest margin provided an 8.6% increase in net interest income over fourth quarter 2024 levels. This quarter showed the strength of our quality banking franchise with 29% growth in adjusted diluted earnings per share from the same period in the prior year. We remain focused on generating long-term financial results for our shareholders. We are also pleased with the progress made in completing the pending acquisition of Olympic and its subsidiary, Kitsap Bank. Having received both regulatory and shareholder approvals, we look forward to closing the transaction at the end of January and bringing together our two organizations."
