Northrim BanCorp Earns $13.3 Million, or $2.38 Per Diluted Share, in First Quarter 2025
Northrim BanCorp (NASDAQ:NRIM) reported strong Q1 2025 results with net income of $13.3 million, or $2.38 per diluted share, up from $10.9 million in Q4 2024 and $8.2 million in Q1 2024. The improved performance was driven by increased purchased receivable income, higher net interest income, and increased mortgage banking income.
Key highlights include:
- Net interest income rose 18% year-over-year to $31.3 million
- Net interest margin (NIMTE) improved to 4.61%
- Return on average assets reached 1.76%
- Total deposits increased 14% year-over-year to $2.78 billion
- Portfolio loans grew 17% year-over-year to $2.12 billion
The company increased its quarterly dividend to $0.64 per share, up from $0.62 in Q4 2024. The acquisition of Sallyport Commercial Finance, completed in October 2024, contributed to the growth in purchased receivable income.
Northrim BanCorp (NASDAQ:NRIM) ha riportato risultati solidi nel primo trimestre del 2025 con un utile netto di 13,3 milioni di dollari, pari a 2,38 dollari per azione diluita, in aumento rispetto ai 10,9 milioni di dollari del quarto trimestre 2024 e agli 8,2 milioni del primo trimestre 2024. La performance migliorata è stata trainata dall’aumento del reddito da crediti acquistati, da un incremento del reddito netto da interessi e da una crescita del reddito derivante dall’attività di mutui.
Punti salienti includono:
- Il reddito netto da interessi è cresciuto del 18% su base annua, raggiungendo 31,3 milioni di dollari
- Il margine netto da interessi (NIMTE) è migliorato al 4,61%
- Il rendimento medio degli attivi ha raggiunto l’1,76%
- I depositi totali sono aumentati del 14% su base annua, arrivando a 2,78 miliardi di dollari
- I prestiti in portafoglio sono cresciuti del 17% su base annua, toccando i 2,12 miliardi di dollari
L’azienda ha aumentato il dividendo trimestrale a 0,64 dollari per azione, rispetto ai 0,62 dollari del quarto trimestre 2024. L’acquisizione di Sallyport Commercial Finance, completata nell’ottobre 2024, ha contribuito alla crescita del reddito da crediti acquistati.
Northrim BanCorp (NASDAQ:NRIM) reportó sólidos resultados en el primer trimestre de 2025 con un ingreso neto de 13,3 millones de dólares, o 2,38 dólares por acción diluida, aumentando desde 10,9 millones en el cuarto trimestre de 2024 y 8,2 millones en el primer trimestre de 2024. El mejor desempeño fue impulsado por mayores ingresos por cuentas por cobrar adquiridas, un aumento en el ingreso neto por intereses y un incremento en los ingresos por banca hipotecaria.
Los aspectos destacados incluyen:
- El ingreso neto por intereses creció un 18% interanual hasta 31,3 millones de dólares
- El margen neto por intereses (NIMTE) mejoró a 4,61%
- El retorno sobre activos promedio alcanzó 1,76%
- Los depósitos totales aumentaron un 14% interanual a 2,78 mil millones de dólares
- Los préstamos en cartera crecieron un 17% interanual a 2,12 mil millones de dólares
La empresa incrementó su dividendo trimestral a 0,64 dólares por acción, desde 0,62 dólares en el cuarto trimestre de 2024. La adquisición de Sallyport Commercial Finance, completada en octubre de 2024, contribuyó al crecimiento en los ingresos por cuentas por cobrar adquiridas.
Northrim BanCorp (NASDAQ:NRIM)는 2025년 1분기에 순이익 1,330만 달러를 기록했으며, 희석 주당순이익은 2.38달러로 2024년 4분기 1,090만 달러와 2024년 1분기 820만 달러에서 증가했습니다. 실적 개선은 매입채권 수익 증가, 순이자수익 상승, 모기지 뱅킹 수익 증가에 힘입은 결과입니다.
주요 내용은 다음과 같습니다:
- 순이자수익이 전년 동기 대비 18% 증가하여 3,130만 달러 기록
- 순이자마진(NIMTE)이 4.61%로 개선
- 평균자산수익률이 1.76%에 도달
- 총 예금이 전년 대비 14% 증가하여 27.8억 달러 기록
- 포트폴리오 대출이 전년 대비 17% 증가하여 21.2억 달러 기록
회사는 분기 배당금을 주당 0.64달러로 인상했으며, 이는 2024년 4분기 0.62달러에서 증가한 수치입니다. 2024년 10월 완료된 Sallyport Commercial Finance 인수가 매입채권 수익 성장에 기여했습니다.
Northrim BanCorp (NASDAQ:NRIM) a annoncé de solides résultats pour le premier trimestre 2025 avec un bénéfice net de 13,3 millions de dollars, soit 2,38 dollars par action diluée, en hausse par rapport à 10,9 millions au quatrième trimestre 2024 et 8,2 millions au premier trimestre 2024. Cette amélioration a été portée par une augmentation des revenus liés aux créances achetées, une hausse du revenu net d’intérêts et une croissance des revenus issus des activités hypothécaires.
Les points clés comprennent :
- Le revenu net d’intérêts a augmenté de 18 % en glissement annuel pour atteindre 31,3 millions de dollars
- La marge nette d’intérêts (NIMTE) s’est améliorée à 4,61 %
- Le rendement moyen des actifs a atteint 1,76 %
- Les dépôts totaux ont augmenté de 14 % en glissement annuel pour atteindre 2,78 milliards de dollars
- Les prêts en portefeuille ont cru de 17 % en glissement annuel pour atteindre 2,12 milliards de dollars
La société a augmenté son dividende trimestriel à 0,64 dollar par action, contre 0,62 dollar au quatrième trimestre 2024. L’acquisition de Sallyport Commercial Finance, finalisée en octobre 2024, a contribué à la croissance des revenus liés aux créances achetées.
Northrim BanCorp (NASDAQ:NRIM) meldete starke Ergebnisse für das erste Quartal 2025 mit einem Nettogewinn von 13,3 Millionen US-Dollar bzw. 2,38 US-Dollar pro verwässerter Aktie, gegenüber 10,9 Millionen im vierten Quartal 2024 und 8,2 Millionen im ersten Quartal 2024. Die verbesserte Leistung wurde durch höhere Einnahmen aus gekauften Forderungen, gestiegene Nettozinserträge und erhöhte Erträge aus dem Hypothekengeschäft getragen.
Wichtige Highlights umfassen:
- Die Nettozinserträge stiegen im Jahresvergleich um 18 % auf 31,3 Millionen US-Dollar
- Die Nettozinsmarge (NIMTE) verbesserte sich auf 4,61 %
- Die Eigenkapitalrendite auf durchschnittliche Aktiva erreichte 1,76 %
- Die Gesamteinlagen stiegen im Jahresvergleich um 14 % auf 2,78 Milliarden US-Dollar
- Die Portfoliodarlehen wuchsen im Jahresvergleich um 17 % auf 2,12 Milliarden US-Dollar
Das Unternehmen erhöhte seine Quartalsdividende auf 0,64 US-Dollar pro Aktie, gegenüber 0,62 US-Dollar im vierten Quartal 2024. Der im Oktober 2024 abgeschlossene Erwerb von Sallyport Commercial Finance trug zum Wachstum der Einnahmen aus gekauften Forderungen bei.
- Net income increased 62% year-over-year to $13.3 million
- Net interest margin improved to 4.61%, up 39 basis points year-over-year
- Total deposits grew 14% year-over-year to $2.78 billion
- Portfolio loans increased 17% year-over-year
- Quarterly dividend increased to $0.64 per share
- Portfolio loans decreased slightly from the preceding quarter
- Mortgage loan originations declined to $121.6 million from $185.9 million in Q4 2024
Insights
Northrim delivered record Q1 earnings with 60.9% YoY income growth, driven by strategic acquisition, improved interest margins, and strong balance sheet management.
Northrim BanCorp's Q1 2025 results demonstrate exceptional financial performance across key metrics. The $13.3 million in net income ($2.38 per diluted share) represents a remarkable 60.9% increase from Q1 2024's $8.2 million and 22.0% improvement from Q4 2024's $10.9 million.
The bank's profitability ratios show impressive momentum with ROAA reaching 1.76% (up from 1.19% a year ago) and ROAE hitting 19.70% (up from 13.84%). These metrics significantly outpace typical regional bank performance and indicate exceptional capital efficiency.
Net interest margin improvement stands out as particularly noteworthy. The NIMTE of 4.61% represents a 39-basis point year-over-year expansion and exceeds the peer average of 3.23% by a substantial margin. This demonstrates Northrim's asset-liability management expertise amid a complex rate environment. The bank is benefiting from decreasing deposit costs (interest-bearing deposits at 2.01%, down from 2.15% in Q4) even as the Fed begins its rate-cutting cycle.
The October 2024 Sallyport acquisition is already delivering meaningful results through increased purchased receivable income. Meanwhile, Northrim's strategic balance sheet management is evident in the reclassification of $100 million in residential mortgages to loans held for sale, indicating a deliberate shift toward higher-yielding commercial and construction lending.
Deposit growth remains robust at 14% year-over-year, with non-interest bearing deposits comprising 27% of the deposit base. This low-cost funding advantage contributes significantly to the bank's expanding margins.
Credit quality appears strong, with the bank recording a $1.4 million benefit to provision for credit losses. This contrasts with the typical regional bank approach of building reserves amid economic uncertainty and suggests confidence in the loan portfolio's performance.
The Alaska economic backdrop remains supportive with 1.6% job growth, strong personal income gains (6.0% annual growth), and continued oil production increases projected through 2034. While uncertainty exists regarding international tariffs, the bank's economist notes Alaska's natural resources would likely find alternative markets if trade disruptions occur.
Northrim's Q1 demonstrates superior profitability metrics with 60.9% earnings growth and strategic portfolio optimization for future commercial expansion.
The standout aspect of Northrim's Q1 performance is how they've translated balance sheet growth into outsized profitability improvement. With total assets increasing 13.8% year-over-year to $3.14 billion, the bank generated a disproportionate 60.9% increase in net income. This efficiency in capital deployment is further reflected in the improved efficiency ratio of 64.47% compared to 68.93% a year ago.
Northrim's strategic decision to reclassify $100 million of residential mortgages to loans held for sale represents a significant strategic pivot. By reducing residential real estate concentration and creating liquidity for commercial and construction lending, management is positioning the bank to capitalize on Alaska's growing economy, particularly in sectors showing the strongest job growth - oil & gas (7.5%), construction (6.1%), and healthcare (3.4%).
The deposit composition tells an equally compelling story. Non-interest bearing deposits increased 4% year-over-year to $742.6 million, now representing 27% of the deposit base. This favorable funding mix, combined with decreasing costs on interest-bearing deposits (down to 2.01% from 2.13% year ago), gives Northrim a significant competitive advantage in maintaining strong net interest margins even as rate cuts begin.
The bank's tangible common equity ratio improved to 7.41% from 7.23% in the previous quarter, indicating strengthening capital positions despite the rapid growth. This improvement in capital efficiency is further reflected in the tangible book value increase to $41.47 per share, up from $40.61 a year ago.
Northrim's dividend increase to $0.64 per share (from $0.61 a year ago) represents a vote of confidence from management in the sustainability of these improved earnings. The mortgage banking segment showed resilience with loan originations of $121.6 million, up 19.6% from the year-ago quarter, though down seasonally from Q4 2024.
The benefit to credit provisions ($1.4 million) reflects strong asset quality in a growing Alaska economy where personal income is outpacing the national average and unemployment remains manageable at 4.7%.
ANCHORAGE, Alaska, April 23, 2025 (GLOBE NEWSWIRE) -- Northrim BanCorp, Inc. (NASDAQ:NRIM) (“Northrim” or the “Company”) today reported net income of
Dividends per share in the first quarter of 2025 increased to
“Our record first quarter earnings are the result of Northrim’s focus on profitable, market share driven growth,” said Mike Huston, Northrim’s President and Chief Executive Officer. “Our strong financial performance is due to our history of investing in our people and banking infrastructure to consistently deliver ‘Superior Customer First Service’. We remain confident that our dedication to serving our customers and communities will support future growth.”
First Quarter 2025 Highlights:
- Net interest income in the first quarter of 2025 increased
1% to$31.3 million compared to$30.8 million in the fourth quarter of 2024 and increased18% compared to$26.4 million in the first quarter of 2024. - Net interest margin on a tax equivalent basis (“NIMTE”)* was
4.61% for the first quarter of 2025, up 14-basis points from the fourth quarter of 2024 and up 39-basis points from the first quarter a year ago. - Return on average assets (“ROAA”) was
1.76% and return on average equity (“ROAE”) was19.70% for the first quarter of 2025. ROAA was1.19% and ROAE was13.84% for the first quarter of 2024. - Portfolio loans were
$2.12 billion at March 31, 2025, down slightly from the preceding quarter and up17% from a year ago. Portfolio loans in the first quarter of 2025 decreased from the preceding quarter primarily due to the reclassification of$100 million of consumer mortgages previously held as residential real estate loans to loans held for sale. The consumer mortgages are expected to be sold in the second quarter of 2025 to reduce the concentration of residential real estate loans and provide additional liquidity for future commercial and construction loan growth. - Total deposits were
$2.78 billion at March 31, 2025, up4% from the preceding quarter, and up14% from$2.43 billion a year ago. Non-interest bearing demand deposits increased5% from the preceding quarter and increased4% year-over-year to$742.6 million at March 31, 2025 and represent27% of total deposits. - The average cost of interest-bearing deposits was
2.01% at March 31, 2025, down from2.15% at December 31, 2024 and2.13% at March 31, 2024. - Mortgage loan originations were
$121.6 million in the first quarter of 2025, down from$185.9 million in the fourth quarter of 2024 and up from$101.7 million in the first quarter a year ago. Mortgage loans funded for sale were$108.5 million in the first quarter of 2025, compared to$162.5 million in the fourth quarter of 2024 and$84.3 million in the first quarter of 2024.
| Financial Highlights | Three Months Ended | ||||||||||||||
| (Dollars in thousands, except per share data) | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | March 31, 2024 | ||||||||||
| Total assets | $ | 3,140,960 | $ | 3,041,869 | $ | 2,963,392 | $ | 2,821,668 | $ | 2,759,560 | |||||
| Total portfolio loans | $ | 2,124,330 | $ | 2,129,263 | $ | 2,007,565 | $ | 1,875,907 | $ | 1,811,135 | |||||
| Total deposits | $ | 2,777,977 | $ | 2,680,189 | $ | 2,625,567 | $ | 2,463,806 | $ | 2,434,083 | |||||
| Total shareholders’ equity | $ | 279,756 | $ | 267,116 | $ | 260,050 | $ | 247,200 | $ | 239,327 | |||||
| Net income | $ | 13,324 | $ | 10,927 | $ | 8,825 | $ | 9,020 | $ | 8,199 | |||||
| Diluted earnings per share | $ | 2.38 | $ | 1.95 | $ | 1.57 | $ | 1.62 | $ | 1.48 | |||||
| Return on average assets | 1.76 | % | 1.43 | % | 1.22 | % | 1.31 | % | 1.19 | % | |||||
| Return on average shareholders’ equity | 19.70 | % | 16.32 | % | 13.69 | % | 14.84 | % | 13.84 | % | |||||
| NIM | 4.55 | % | 4.41 | % | 4.29 | % | 4.24 | % | 4.16 | % | |||||
| NIMTE* | 4.61 | % | 4.47 | % | 4.35 | % | 4.30 | % | 4.22 | % | |||||
| Efficiency ratio | 64.47 | % | 66.96 | % | 66.11 | % | 68.78 | % | 68.93 | % | |||||
| Total shareholders’ equity/total assets | 8.91 | % | 8.78 | % | 8.78 | % | 8.76 | % | 8.67 | % | |||||
| Tangible common equity/tangible assets* | 7.41 | % | 7.23 | % | 8.28 | % | 8.24 | % | 8.14 | % | |||||
| Book value per share | $ | 50.67 | $ | 48.41 | $ | 47.27 | $ | 44.93 | $ | 43.52 | |||||
| Tangible book value per share* | $ | 41.47 | $ | 39.17 | $ | 44.36 | $ | 42.03 | $ | 40.61 | |||||
| Dividends per share | $ | 0.64 | $ | 0.62 | $ | 0.62 | $ | 0.61 | $ | 0.61 | |||||
| Common stock outstanding | 5,520,892 | 5,518,210 | 5,501,943 | 5,501,562 | 5,499,578 | ||||||||||
* References to NIMTE, tangible book value per share, and tangible common equity to tangible common assets, (both of which exclude intangible assets) represent non-GAAP financial measures. Management has presented these non-GAAP measurements in this earnings release, because it believes these measures are useful to investors. See the end of this release for reconciliations of these non-GAAP financial measures to GAAP financial measures.
Alaska Economic Update
(Note: sources for information included in this section are included on page 13.)
The Alaska Department of Labor (“DOL”) has reported Alaska’s seasonally adjusted unemployment rate in February of 2025 was
According to the DOL, the Oil and Gas sector had the largest growth rate in new jobs of
The Government sector grew by 600 jobs for
Alaska’s seasonally adjusted personal income was
Alaska’s Gross State Product (“GSP”) in 2024, reached
Based on data from the U.S. Chamber of Commerce, Alaska exported
According to the US Bureau of Labor Statistics, the Consumer Price Index, or CPI, for the U.S. increased
The monthly average price of Alaska North Slope (“ANS”) crude oil was
The Alaska Permanent Fund is seeded annually by the oil wealth the State continues to save each year and has grown significantly over 40 years of successful investment. As of February 28, 2025 the funds value was
According to the Alaska Multiple Listing Services, the average sales price of a single family home in Anchorage rose
The average sales price for single family homes in the Matanuska Susitna Borough rose
The Alaska Multiple Listing Services reported a
Northrim Bank sponsors the Alaskanomics blog to provide news, analysis, and commentary on Alaska’s economy. Join the conversation at Alaskanomics.com, or for more information on the Alaska economy, visit: www.northrim.com and click on the “Business Banking” link and then click “Learn.” Information from our website is not incorporated into, and does not form, a part of this earnings release.
Review of Income Statement
Consolidated Income Statement
In the first quarter of 2025, Northrim generated a ROAA of
Net Interest Income/Net Interest Margin
Net interest income increased
NIMTE* was
Provision for Credit Losses
Northrim recorded a benefit to the provision for credit losses of
The benefit to the provision for unfunded commitments in the first quarter of 2025 was primarily due to a decrease in estimated loss rates due to changes in mix that was only partially offset by management's assessment of economic conditions and estimated funding rates. The decrease to the provision for credit losses on loans in the first quarter of 2025 as compared to the prior quarter and the same quarter a year ago was primarily a result of the reclassification of
Nonperforming loans, net of government guarantees, increased during the quarter to
The allowance for credit losses on loans was
Other Operating Income
In addition to home mortgage lending, Northrim has interests in other businesses that complement its core community banking activities, including purchased receivables financing and wealth management. Other operating income contributed
Other Operating Expenses
Operating expenses were
Income Tax Provision
In the first quarter of 2025, Northrim recorded
Community Banking
Northrim is committed to meeting the needs of the diverse communities in which it operates. As a testament to that support, the Bank has branches in four regions of Alaska identified by the Federal Reserve as 'distressed or underserved non-metropolitan middle-income geographies'.
Net interest income in the Community Banking segment totaled
Other operating expenses in the Community Banking segment totaled
The following table provides highlights of the Community Banking segment of Northrim:
| Three Months Ended | |||||||||||||||
| (Dollars in thousands, except per share data) | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | March 31, 2024 | ||||||||||
| Net interest income | $ | 28,151 | $ | 27,643 | $ | 25,928 | $ | 24,318 | $ | 24,215 | |||||
| (Benefit) provision for credit losses | (1,768 | ) | 771 | 1,492 | (184 | ) | 197 | ||||||||
| Other operating income | 2,703 | 2,535 | 3,507 | 2,450 | 2,468 | ||||||||||
| Other operating expense | 18,581 | 19,116 | 18,723 | 18,068 | 17,178 | ||||||||||
| Income before provision for income taxes | 14,041 | 10,291 | 9,220 | 8,884 | 9,308 | ||||||||||
| Provision for income taxes | 3,253 | 1,474 | 2,133 | 1,786 | 1,966 | ||||||||||
| Net income | $ | 10,788 | $ | 8,817 | $ | 7,087 | $ | 7,098 | $ | 7,342 | |||||
| Weighted average shares outstanding, diluted | 5,608,102 | 5,597,889 | 5,583,055 | 5,558,580 | 5,554,930 | ||||||||||
| Diluted earnings per share attributable to Community Banking | $ | 1.93 | $ | 1.58 | $ | 1.26 | $ | 1.27 | $ | 1.32 | |||||
Home Mortgage Lending
During the first quarter of 2025, mortgage loans funded for sale were
During the first quarter of 2025, the Bank purchased loans of
The income statement impact from the reclassification of the consumer mortgages was a decrease in provision for credit losses of
The Arizona, Colorado, and Pacific Northwest mortgage expansion markets were responsible for
The net change in fair value of mortgage servicing rights decreased mortgage banking income by
As of March 31, 2025, Northrim serviced 6,391 loans in its
The following table provides highlights of the Home Mortgage Lending segment of Northrim:
| Three Months Ended | |||||||||||||||
| (Dollars in thousands, except per share data) | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | March 31, 2024 | ||||||||||
| Mortgage commitments | $ | 68,258 | $ | 32,299 | $ | 77,591 | $ | 88,006 | $ | 56,208 | |||||
| Mortgage loans funded for sale | $ | 108,499 | $ | 162,530 | $ | 209,960 | $ | 152,339 | $ | 84,324 | |||||
| Mortgage loans funded for investment | 13,061 | 23,380 | 38,087 | 29,175 | 17,403 | ||||||||||
| Total mortgage loans funded | $ | 121,560 | $ | 185,910 | $ | 248,047 | $ | 181,514 | $ | 101,727 | |||||
| Mortgage loan refinances to total fundings | 11 | % | 11 | % | 6 | % | 6 | % | 4 | % | |||||
| Mortgage loans serviced for others | $ | 1,484,714 | $ | 1,460,720 | $ | 1,166,585 | $ | 1,101,800 | $ | 1,060,007 | |||||
| Net realized gains on mortgage loans sold | $ | 2,740 | $ | 3,747 | $ | 5,079 | $ | 3,188 | $ | 1,980 | |||||
| Change in fair value of mortgage loan commitments, net | 660 | (665 | ) | 60 | 391 | 386 | |||||||||
| Total production revenue | 3,400 | 3,082 | 5,139 | 3,579 | 2,366 | ||||||||||
| Mortgage servicing revenue | 2,696 | 2,847 | 2,583 | 2,164 | 1,561 | ||||||||||
| Change in fair value of mortgage servicing rights: | |||||||||||||||
| Due to changes in model inputs of assumptions1 | (322 | ) | 1,372 | (566 | ) | 239 | 289 | ||||||||
| Other2 | (533 | ) | (499 | ) | (402 | ) | (320 | ) | (314 | ) | |||||
| Total mortgage servicing revenue, net | 1,841 | 3,720 | 1,615 | 2,083 | 1,536 | ||||||||||
| Other mortgage banking revenue | 170 | 238 | 293 | 222 | 129 | ||||||||||
| Total mortgage banking income | $ | 5,411 | $ | 7,040 | $ | 7,047 | $ | 5,884 | $ | 4,031 | |||||
| Net interest income | $ | 3,046 | $ | 3,280 | $ | 2,941 | $ | 2,775 | $ | 2,232 | |||||
| Provision (benefit) for credit losses | (307 | ) | 305 | 571 | 64 | (48 | ) | ||||||||
| Mortgage banking income | 5,411 | 7,040 | 7,047 | 5,884 | 4,031 | ||||||||||
| Other operating expense | 7,650 | 7,198 | 7,643 | 6,697 | 6,086 | ||||||||||
| Income (loss) before provision for income taxes | 1,114 | 2,817 | 1,774 | 1,898 | 225 | ||||||||||
| Provision (benefit) for income taxes | 310 | 842 | 497 | 532 | 63 | ||||||||||
| Net income (loss) | $ | 804 | $ | 1,975 | $ | 1,277 | $ | 1,366 | $ | 162 | |||||
| Weighted average shares outstanding, diluted | 5,608,102 | 5,597,889 | 5,583,055 | 5,558,580 | 5,554,930 | ||||||||||
| Diluted earnings per share attributable to Home Mortgage Lending | $ | 0.14 | $ | 0.35 | $ | 0.23 | $ | 0.25 | $ | 0.03 | |||||
1Principally reflects changes in discount rates and prepayment speed assumptions, which are primarily affected by changes in interest rates.
2Represents changes due to collection/realization of expected cash flows over time.
Specialty Finance
The Company’s Specialty Finance segment includes Northrim Funding Services and Sallyport Commercial Finance. Northrim Funding Services is a division of the Bank and has offered factoring solutions to small businesses since 2004. Sallyport is a leading provider of factoring, asset-based lending and alternative working capital solutions to small and medium sized enterprises in the United States, Canada, and the United Kingdom that the Company acquired on October 31, 2024 in an all cash transaction valued at approximately
The acquisition of Sallyport included
Average purchased receivables and loan balances at Sallyport were
The following table provides highlights of the Specialty Finance segment of Northrim:
| Three Months Ended | |||||||||||||||
| (Dollars in thousands, except per share data) | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | March 31, 2024 | ||||||||||
| Purchased receivable income | $ | 6,150 | $ | 3,526 | $ | 1,033 | $ | 1,243 | $ | 1,345 | |||||
| Other operating income | (64 | ) | (68 | ) | — | — | — | ||||||||
| Interest income | 596 | 407 | 158 | 170 | 212 | ||||||||||
| Total revenue | 6,682 | 3,865 | 1,191 | 1,413 | 1,557 | ||||||||||
| Provision for credit losses | 666 | 125 | — | — | — | ||||||||||
| Compensation expense - SCF acquisition payments | 600 | — | — | — | — | ||||||||||
| Other operating expense | 2,500 | 3,063 | 362 | 429 | 374 | ||||||||||
| Interest expense | 496 | 489 | 185 | 210 | 212 | ||||||||||
| Total expense | 4,262 | 3,677 | 547 | 639 | 586 | ||||||||||
| Income before provision for income taxes | 2,420 | 188 | 644 | 774 | 971 | ||||||||||
| Provision for income taxes | 688 | 53 | 183 | 218 | 276 | ||||||||||
| Net income Specialty Finance segment | $ | 1,732 | $ | 135 | $ | 461 | $ | 556 | $ | 695 | |||||
| Weighted average shares outstanding, diluted | 5,608,102 | 5,597,889 | 5,583,055 | 5,558,580 | 5,554,930 | ||||||||||
| Diluted earnings per share attributable to Specialty Finance | $ | 0.31 | $ | 0.02 | $ | 0.08 | $ | 0.10 | $ | 0.13 | |||||
Balance Sheet Review
Northrim’s total assets were
At March 31, 2025, our liquid assets, investments, and loans maturing within one year were
Average interest-earning assets were
Average investment securities decreased to
Total unrealized losses, net of tax, on available for sale securities decreased by
Average interest bearing deposits in other banks decreased to
Loans held for sale increased to
Portfolio loans were
Northrim's loans and credit lines are subject to approval procedures and amount limitations. These limitations apply to the borrower's total outstanding indebtedness and commitments to us, including the indebtedness of any guarantor. Generally, Northrim is permitted to make loans to one borrower of up to
Alaskans continue to account for substantially all of Northrim’s deposit base. Total deposits were
Shareholders’ equity was
Asset Quality
Northrim believes it has a consistent lending approach throughout economic cycles, which emphasizes appropriate loan-to-value ratios, adequate debt coverage ratios, and competent management.
Nonperforming assets (“NPAs”) net of government guarantees were
Net adversely classified loans were
Northrim had
Northrim estimates that
About Northrim BanCorp
Northrim BanCorp, Inc. is the parent company of Northrim Bank, an Alaska-based community bank with 20 branches throughout the state and differentiates itself with its detailed knowledge of Alaska’s economy and its “Customer First Service” philosophy. The Bank has two wholly-owned subsidiaries, Sallyport Commercial Finance, LLC, a specialty finance company and Residential Mortgage Holding Company, LLC, a regional home mortgage company. Pacific Wealth Advisors, LLC is an affiliated company.
Forward-Looking Statement
This release may contain “forward-looking statements” as that term is defined for purposes of Section 21E of the Securities Exchange Act of 1934, as amended. These statements are, in effect, management’s attempt to predict future events, and thus are subject to various risks and uncertainties. Readers should not place undue reliance on forward-looking statements, which reflect management’s views only as of the date hereof. All statements, other than statements of historical fact, regarding our financial position, business strategy, management’s plans and objectives for future operations are forward-looking statements. When used in this report, the words “anticipate,” “believe,” “estimate,” “expect,” and “intend” and words or phrases of similar meaning, as they relate to Northrim and its management are intended to help identify forward-looking statements. Although we believe that management’s expectations as reflected in forward-looking statements are reasonable, we cannot assure readers that those expectations will prove to be correct. Forward-looking statements, are subject to various risks and uncertainties that may cause our actual results to differ materially and adversely from our expectations as indicated in the forward-looking statements. These risks and uncertainties include: descriptions of Northrim’s and Sallyport’s financial condition, results of operations, asset based lending volumes, asset and credit quality trends and profitability and statements about the expected financial benefits and other effects of the acquisition of Sallyport by Northrim Bank; expected cost savings, synergies and other financial benefits from the acquisition of Sallyport by Northrim Bank might not be realized within the expected time frames and costs or difficulties relating to integration matters might be greater than expected; the ability of Northrim and Sallyport to execute their respective business plans; potential further increases in interest rates; the value of securities held in our investment portfolio; the impact of the results of government initiatives, including tariffs, on the regulatory landscape, natural resource extraction industries, and capital markets; the impact of declines in the value of commercial and residential real estate markets, high unemployment rates, inflationary pressures and slowdowns in economic growth; changes in banking regulation or actions by bank regulators; potential further increases in inflation, supply-chain constraints, and potential geopolitical instability, including the wars in Ukraine and the Middle East; financial stress on borrowers (consumers and businesses) as a result of higher rates or an uncertain economic environment; the general condition of, and changes in, the Alaska economy; our ability to maintain or expand our market share or net interest margin; the sufficiency of our allowance for credit losses and the accuracy of the assumptions or estimates used in preparing our financial statements, including those related to current expected credit losses accounting guidance; our ability to maintain asset quality; our ability to implement our marketing and growth strategies; our ability to identify and address cyber-security risks, including security breaches, “denial of service attacks,” “hacking,” and identity theft; disease outbreaks; and our ability to execute our business plan. Further, actual results may be affected by competition on price and other factors with other financial institutions; customer acceptance of new products and services; the regulatory environment in which we operate; and general trends in the local, regional and national banking industry and economy. In addition, there are risks inherent in the banking industry relating to collectability of loans and changes in interest rates. Many of these risks, as well as other risks that may have a material adverse impact on our operations and business, are identified in the “Risk Factors” section of our Annual Report on Form 10-K for the fiscal year ended December 31, 2024, and from time to time are disclosed in our other filings with the Securities and Exchange Commission. However, you should be aware that these factors are not an exhaustive list, and you should not assume these are the only factors that may cause our actual results to differ from our expectations. These forward-looking statements are made only as of the date of this release, and Northrim does not undertake any obligation to release revisions to these forward-looking statements to reflect events or conditions after the date of this release.
References:
https://www.bea.gov/
http://almis.labor.state.ak.us/
http://www.tax.alaska.gov/programs/oil/prevailing/ans.aspx
http://www.tax.state.ak.us/
www.mba.org
https://www.alaskarealestate.com/MLSMember/RealEstateStatistics.aspx
https://www.akleg.gov/basis/Bill/Text/34?Hsid=HJR011C
https://www.uschamber.com/assets/static/maps/international-trade/AK_Chamber_2024.pdf
https://tax.alaska.gov/programs/programs/reports/RSB.aspx?Year=2025&Type=Spring
https://www.capitaliq.spglobal.com/web/client?auth=inherit&overridecdc=1&#markets/indexFinancials
| Income Statement | |||||||||
| (Dollars in thousands, except per share data) | Three Months Ended | ||||||||
| (Unaudited) | March 31, | December 31, | March 31, | ||||||
| 2025 | 2024 | 2024 | |||||||
| Interest Income: | |||||||||
| Interest and fees on loans | $ | 37,470 | $ | 37,059 | $ | 30,450 | |||
| Interest on portfolio investments | 3,675 | 3,844 | 4,520 | ||||||
| Interest on deposits in banks | 416 | 883 | 838 | ||||||
| Total interest income | 41,561 | 41,786 | 35,808 | ||||||
| Interest Expense: | |||||||||
| Interest expense on deposits | 9,935 | 10,568 | 9,180 | ||||||
| Interest expense on borrowings | 329 | 377 | 181 | ||||||
| Total interest expense | 10,264 | 10,945 | 9,361 | ||||||
| Net interest income | 31,297 | 30,841 | 26,447 | ||||||
| (Benefit) provision for credit losses | (1,409 | ) | 1,201 | 149 | |||||
| Net interest income after provision for credit losses | 32,706 | 29,640 | 26,298 | ||||||
| Other Operating Income: | |||||||||
| Purchased receivable income | 6,150 | 3,526 | 1,345 | ||||||
| Mortgage banking income | 5,411 | 7,040 | 4,031 | ||||||
| Bankcard fees | 1,074 | 1,148 | 917 | ||||||
| Service charges on deposit accounts | 677 | 622 | 549 | ||||||
| Unrealized gain (loss) on marketable equity securities | (50 | ) | (364 | ) | 314 | ||||
| Other income | 938 | 949 | 688 | ||||||
| Total other operating income | 14,200 | 13,033 | 7,844 | ||||||
| Other Operating Expense: | |||||||||
| Salaries and other personnel expense | 17,223 | 18,254 | 15,417 | ||||||
| Data processing expense | 3,104 | 3,108 | 2,659 | ||||||
| Occupancy expense | 1,889 | 1,893 | 1,962 | ||||||
| Professional and outside services | 1,115 | 1,967 | 755 | ||||||
| Insurance expense | 1,017 | 894 | 779 | ||||||
| Marketing expense | 672 | 965 | 513 | ||||||
| Compensation expense - SCF acquisition payments | 600 | — | — | ||||||
| OREO expense, net rental income and gains on sale | 3 | 2 | (391 | ) | |||||
| Other operating expense | 3,708 | 2,294 | 1,944 | ||||||
| Total other operating expense | 29,331 | 29,377 | 23,638 | ||||||
| Income before provision for income taxes | 17,575 | 13,296 | 10,504 | ||||||
| Provision for income taxes | 4,251 | 2,369 | 2,305 | ||||||
| Net income | $ | 13,324 | $ | 10,927 | $ | 8,199 | |||
| Basic EPS | $ | 2.41 | $ | 1.99 | $ | 1.49 | |||
| Diluted EPS | $ | 2.38 | $ | 1.95 | $ | 1.48 | |||
| Weighted average shares outstanding, basic | 5,519,998 | 5,509,078 | 5,499,578 | ||||||
| Weighted average shares outstanding, diluted | 5,608,102 | 5,597,889 | 5,554,930 | ||||||
| Balance Sheet | |||||||||
| (Dollars in thousands) | |||||||||
| (Unaudited) | March 31, | December 31, | March 31, | ||||||
| 2025 | 2024 | 2024 | |||||||
| Assets: | |||||||||
| Cash and due from banks | $ | 29,671 | $ | 42,101 | $ | 30,159 | |||
| Interest bearing deposits in other banks | 35,852 | 20,635 | 50,205 | ||||||
| Investment securities available for sale, at fair value | 463,096 | 478,617 | 592,479 | ||||||
| Investment securities held to maturity | 36,750 | 36,750 | 36,750 | ||||||
| Marketable equity securities, at fair value | 8,669 | 8,719 | 13,467 | ||||||
| Investment in Federal Home Loan Bank stock | 5,342 | 5,331 | 3,236 | ||||||
| Loans held for sale | 159,603 | 59,957 | 43,818 | ||||||
| Portfolio loans | 2,124,330 | 2,129,263 | 1,811,135 | ||||||
| Allowance for credit losses, loans | (20,922 | ) | (22,020 | ) | (17,533 | ) | |||
| Net portfolio loans | 2,103,408 | 2,107,243 | 1,793,602 | ||||||
| Purchased receivables, net | 95,489 | 74,078 | 37,698 | ||||||
| Mortgage servicing rights, at fair value | 26,814 | 26,439 | 20,055 | ||||||
| Other real estate owned, net | — | — | — | ||||||
| Premises and equipment, net | 37,070 | 37,757 | 40,836 | ||||||
| Lease right of use asset | 7,632 | 7,455 | 8,867 | ||||||
| Goodwill and intangible assets | 50,824 | 50,968 | 15,967 | ||||||
| Other assets | 80,740 | 85,819 | 72,421 | ||||||
| Total assets | $ | 3,140,960 | $ | 3,041,869 | $ | 2,759,560 | |||
| Liabilities: | |||||||||
| Demand deposits | $ | 742,560 | $ | 706,225 | $ | 714,244 | |||
| Interest-bearing demand | 1,187,465 | 1,108,404 | 889,581 | ||||||
| Savings deposits | 256,650 | 250,900 | 246,902 | ||||||
| Money market deposits | 193,842 | 196,290 | 209,785 | ||||||
| Time deposits | 397,460 | 418,370 | 373,571 | ||||||
| Total deposits | 2,777,977 | 2,680,189 | 2,434,083 | ||||||
| Other borrowings | 13,136 | 23,045 | 13,569 | ||||||
| Junior subordinated debentures | 10,310 | 10,310 | 10,310 | ||||||
| Lease liability | 7,682 | 7,487 | 8,884 | ||||||
| Other liabilities | 52,099 | 53,722 | 53,387 | ||||||
| Total liabilities | 2,861,204 | 2,774,753 | 2,520,233 | ||||||
| Shareholders’ Equity: | |||||||||
| Total shareholders’ equity | 279,756 | 267,116 | 239,327 | ||||||
| Total liabilities and shareholders’ equity | $ | 3,140,960 | $ | 3,041,869 | $ | 2,759,560 | |||
Additional Financial Information
(Dollars in thousands)
(Unaudited)
| Composition of Portfolio Loans | |||||||||||||||||||||||||||||
| March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | March 31, 2024 | |||||||||||||||||||||||||
| Balance | % of total | Balance | % of total | Balance | % of total | Balance | % of total | Balance | % of total | ||||||||||||||||||||
| Commercial loans | $ | 573,593 | 27 | % | $ | 518,148 | 24 | % | $ | 492,414 | 24 | % | $ | 495,781 | 26 | % | $ | 475,220 | 26 | % | |||||||||
| Commercial real estate: | |||||||||||||||||||||||||||||
| Owner occupied properties | 430,442 | 20 | % | 420,060 | 20 | % | 412,827 | 20 | % | 383,832 | 20 | % | 372,507 | 20 | % | ||||||||||||||
| Nonowner occupied and multifamily properties | 690,277 | 32 | % | 619,431 | 29 | % | 584,302 | 31 | % | 551,130 | 30 | % | 529,904 | 30 | % | ||||||||||||||
| Residential real estate: | |||||||||||||||||||||||||||||
| 1-4 family properties secured by first liens | 188,219 | 9 | % | 270,535 | 13 | % | 248,514 | 12 | % | 222,026 | 12 | % | 218,552 | 12 | % | ||||||||||||||
| 1-4 family properties secured by junior liens & revolving secured by first liens | 53,836 | 3 | % | 48,857 | 2 | % | 45,262 | 2 | % | 41,258 | 2 | % | 35,460 | 2 | % | ||||||||||||||
| 1-4 family construction | 34,017 | 2 | % | 39,789 | 2 | % | 39,794 | 2 | % | 29,510 | 2 | % | 27,751 | 2 | % | ||||||||||||||
| Construction loans | 156,211 | 7 | % | 214,068 | 10 | % | 185,362 | 9 | % | 154,009 | 8 | % | 153,537 | 8 | % | ||||||||||||||
| Consumer loans | 7,424 | — | % | 7,562 | — | % | 7,836 | — | % | 6,679 | — | % | 6,444 | — | % | ||||||||||||||
| Subtotal | 2,134,019 | 2,138,450 | 2,016,311 | 1,884,225 | 1,819,375 | ||||||||||||||||||||||||
| Unearned loan fees, net | (9,689 | ) | (9,187 | ) | (8,746 | ) | (8,318 | ) | (8,240 | ) | |||||||||||||||||||
| Total portfolio loans | $ | 2,124,330 | $ | 2,129,263 | $ | 2,007,565 | $ | 1,875,907 | $ | 1,811,135 | |||||||||||||||||||
| Composition of Deposits | |||||||||||||||||||||||||||||
| March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | March 31, 2024 | |||||||||||||||||||||||||
| Balance | % of total | Balance | % of total | Balance | % of total | Balance | % of total | Balance | % of total | ||||||||||||||||||||
| Demand deposits | $ | 742,560 | 27 | % | $ | 706,225 | 27 | % | $ | 763,595 | 29 | % | $ | 704,471 | 29 | % | $ | 714,244 | 29 | % | |||||||||
| Interest-bearing demand | 1,187,465 | 43 | % | 1,108,404 | 41 | % | 979,238 | 37 | % | 906,010 | 36 | % | 889,581 | 37 | % | ||||||||||||||
| Savings deposits | 256,650 | 9 | % | 250,900 | 9 | % | 245,043 | 9 | % | 238,156 | 10 | % | 246,902 | 10 | % | ||||||||||||||
| Money market deposits | 193,842 | 7 | % | 196,290 | 7 | % | 204,821 | 8 | % | 195,159 | 8 | % | 209,785 | 9 | % | ||||||||||||||
| Time deposits | 397,460 | 14 | % | 418,370 | 16 | % | 435,870 | 17 | % | 420,010 | 17 | % | 373,571 | 15 | % | ||||||||||||||
| Total deposits | $ | 2,777,977 | $ | 2,680,189 | $ | 2,628,567 | $ | 2,463,806 | $ | 2,434,083 | |||||||||||||||||||
Additional Financial Information
(Dollars in thousands)
(Unaudited)
| Asset Quality | March 31, | December 31, | March 31, | ||||||||
| 2025 | 2024 | 2024 | |||||||||
| Nonaccrual loans - Community Banking | $ | 4,274 | $ | 4,337 | $ | 4,472 | |||||
| Nonaccrual loans - Home Mortgage Lending | 221 | 233 | 263 | ||||||||
| Nonaccrual loans - Specialty Finance | 3,573 | 2,946 | 525 | ||||||||
| Nonaccrual loans - Total | 8,068 | 7,516 | 5,260 | ||||||||
| Loans 90 days past due and accruing - Community Banking | — | 17 | — | ||||||||
| Loans 90 days past due and accruing - Total | — | 17 | — | ||||||||
| Total nonperforming loans - Community Banking | 4,274 | 4,354 | 4,472 | ||||||||
| Total nonperforming loans - Home Mortgage Lending | 221 | 233 | 263 | ||||||||
| Total nonperforming loans - Specialty Finance | 3,573 | 2,946 | 525 | ||||||||
| Total nonperforming loans - Total | 8,068 | 7,533 | 5,260 | ||||||||
| Nonperforming loans guaranteed by gov't - Community Banking | 80 | — | — | ||||||||
| Nonperforming loans guaranteed by gov't - Total | 80 | — | — | ||||||||
| Net nonperforming loans - Community Banking | 4,194 | 4,354 | 4,472 | ||||||||
| Net nonperforming loans - Home Mortgage Lending | 221 | 233 | 263 | ||||||||
| Net nonperforming loans - Specialty Finance | 3,573 | 2,946 | 525 | ||||||||
| Net nonperforming loans - Total | 7,988 | 7,533 | 5,260 | ||||||||
| Repossessed assets - Community Banking | 297 | 297 | — | ||||||||
| Repossessed assets - Total | 297 | 297 | — | ||||||||
| Nonperforming purchased receivables - Specialty Finance | 4,007 | 3,768 | 183 | ||||||||
| Net nonperforming assets - Community Banking | 4,491 | 4,651 | 4,472 | ||||||||
| Net nonperforming assets - Home Mortgage Lending | 221 | 233 | 263 | ||||||||
| Net nonperforming assets - Specialty Finance | 7,580 | 6,714 | 708 | ||||||||
| Net nonperforming assets - Total | $ | 12,292 | $ | 11,598 | $ | 5,443 | |||||
| Adversely classified loans, net of gov't guarantees - Community Banking | $ | 16,592 | $ | 6,332 | $ | 6,374 | |||||
| Adversely classified loans, net of gov't guarantees - Home Mortgage Lending | 252 | 358 | 307 | ||||||||
| Adversely classified loans, net of gov't guarantees - Specialty Finance | 3,573 | 2,946 | 525 | ||||||||
| Adversely classified loans, net of gov't guarantees - Total | $ | 20,417 | $ | 9,636 | $ | 7,206 | |||||
| Special mention loans, net of gov't guarantees - Community Banking | $ | 14,496 | $ | 19,769 | $ | 9,976 | |||||
| Special mention loans, net of gov't guarantees - Home Mortgage Lending | 637 | — | — | ||||||||
| Special mention loans, net of gov't guarantees - Total | $ | 15,133 | $ | 19,769 | $ | 9,976 | |||||
| Asset Quality, Continued | March 31, | December 31, | March 31, | ||||||
| 2025 | 2024 | 2024 | |||||||
| Nonperforming loans, net of government guarantees / portfolio loans | 0.38 | % | 0.35 | % | 0.29 | % | |||
| Nonperforming loans, net of government guarantees / portfolio loans, net of government guarantees | 0.40 | % | 0.38 | % | 0.31 | % | |||
| Nonperforming assets, net of government guarantees / total assets | 0.39 | % | 0.38 | % | 0.20 | % | |||
| Nonperforming assets, net of government guarantees / total assets net of government guarantees | 0.41 | % | 0.40 | % | 0.20 | % | |||
| Loans 30-89 days past due and accruing, net of government guarantees / portfolio loans | 0.04 | % | 0.11 | % | 0.03 | % | |||
| Loans 30-89 days past due and accruing, net of government guarantees / portfolio loans, net of government guarantees | 0.04 | % | 0.11 | % | 0.04 | % | |||
| Allowance for credit losses for loans / portfolio loans | 0.98 | % | 1.03 | % | 0.97 | % | |||
| Allowance for credit losses for loans / portfolio loans, net of gov't guarantees | 1.06 | % | 1.10 | % | 1.03 | % | |||
| Allowance for credit losses for loans / nonperforming loans, net of government guarantees | 262 | % | 292 | % | 333 | % | |||
| Gross loan charge-offs for the quarter - Community Banking | $ | 50 | $ | 44 | $ | 25 | |||
| Gross loan charge-offs for the quarter - Specialty Finance | — | 105 | — | ||||||
| Gross loan charge-offs for the quarter - Total | 50 | 149 | 25 | ||||||
| Gross loan recoveries for the quarter - Community Banking | (84 | ) | (200 | ) | (67 | ) | |||
| Gross loan recoveries for the quarter - Home Mortgage Lending | — | — | — | ||||||
| Gross loan recoveries for the quarter - Specialty Finance | — | — | — | ||||||
| Gross loan recoveries for the quarter - Total | $ | (84 | ) | $ | (200 | ) | $ | (67 | ) |
| Net loan (recoveries) charge-offs for the quarter - Community Banking | $ | (34 | ) | $ | (156 | ) | $ | (42 | ) |
| Net loan (recoveries) charge-offs for the quarter - Specialty Finance | — | (105 | ) | — | |||||
| Net loan (recoveries) charge-offs for the quarter - Total | $ | (34 | ) | $ | (51 | ) | $ | (42 | ) |
| Net loan charge-offs (recoveries) for the quarter / average loans, for the quarter | — | % | — | % | — | % | |||
| Allowance for credit losses for purchased receivables / purchased receivables | 3.72 | % | 4.69 | % | — | % | |||
| Net purchased receivable charge-offs (recoveries) for the quarter | $ | — | $ | — | $ | — | |||
Additional Financial Information
(Dollars in thousands)
(Unaudited)
| Average Balances, Yields, and Rates | |||||||||||||||||
| Three Months Ended | |||||||||||||||||
| March 31, 2025 | December 31, 2024 | March 31, 2024 | |||||||||||||||
| Average | Average | Average | |||||||||||||||
| Average | Tax Equivalent | Average | Tax Equivalent | Average | Tax Equivalent | ||||||||||||
| Balance | Yield/Rate | Balance | Yield/Rate | Balance | Yield/Rate | ||||||||||||
| Assets | |||||||||||||||||
| Interest bearing deposits in other banks | $ | 37,969 | 4.44 | % | $ | 72,212 | 4.72 | % | $ | 61,561 | 5.38 | % | |||||
| Portfolio investments | 523,753 | 2.97 | % | 565,785 | 2.84 | % | 670,937 | 2.82 | % | ||||||||
| Loans held for sale | 46,223 | 5.86 | % | 83,304 | 5.97 | % | 32,635 | 6.13 | % | ||||||||
| Portfolio loans | 2,173,425 | 6.89 | % | 2,066,216 | 6.93 | % | 1,793,425 | 6.75 | % | ||||||||
| Total interest-earning assets | 2,781,370 | 6.10 | % | 2,787,517 | 6.02 | % | 2,558,558 | 5.69 | % | ||||||||
| Nonearning assets | 293,415 | 251,364 | 201,137 | ||||||||||||||
| Total assets | $ | 3,074,785 | $ | 3,038,881 | $ | 2,759,695 | |||||||||||
| Liabilities and Shareholders’ Equity | |||||||||||||||||
| Interest-bearing deposits | $ | 2,002,594 | 2.01 | % | $ | 1,954,495 | 2.15 | % | $ | 1,731,923 | 2.13 | % | |||||
| Borrowings | 37,081 | 3.55 | % | 29,251 | 3.95 | % | 23,944 | 2.95 | % | ||||||||
| Total interest-bearing liabilities | 2,039,675 | 2.04 | % | 1,983,746 | 2.18 | % | 1,755,867 | 2.14 | % | ||||||||
| Noninterest-bearing demand deposits | 697,534 | 738,911 | 705,134 | ||||||||||||||
| Other liabilities | 63,348 | 49,815 | 60,407 | ||||||||||||||
| Shareholders’ equity | 274,228 | 266,409 | 238,287 | ||||||||||||||
| Total liabilities and shareholders’ equity | $ | 3,074,785 | $ | 3,038,881 | $ | 2,759,695 | |||||||||||
| Net spread | 4.06 | % | 3.84 | % | 3.55 | % | |||||||||||
| NIM | 4.55 | % | 4.41 | % | 4.16 | % | |||||||||||
| NIMTE* | 4.61 | % | 4.47 | % | 4.22 | % | |||||||||||
| Cost of funds | 1.52 | % | 1.59 | % | 1.53 | % | |||||||||||
| Average portfolio loans to average interest-earning assets | 78.14 | % | 74.12 | % | 70.10 | % | |||||||||||
| Average portfolio loans to average total deposits | 80.49 | % | 76.71 | % | 73.59 | % | |||||||||||
| Average non-interest deposits to average total deposits | 25.83 | % | 27.43 | % | 28.93 | % | |||||||||||
| Average interest-earning assets to average interest-bearing liabilities | 136.36 | % | 140.52 | % | 145.71 | % | |||||||||||
Additional Financial Information
(Dollars in thousands, except per share data)
(Unaudited)
| Capital Data (At quarter end) | |||||||||||
| March 31, 2025 | December 31, 2024 | March 31, 2024 | |||||||||
| Book value per share | $ | 50.67 | $ | 48.41 | $ | 43.52 | |||||
| Tangible book value per share* | $ | 41.47 | $ | 39.17 | $ | 40.61 | |||||
| Total shareholders’ equity/total assets | 8.91 | % | 8.78 | % | 8.67 | % | |||||
| Tangible Common Equity/Tangible Assets* | 7.41 | % | 7.23 | % | 8.14 | % | |||||
| Tier 1 Capital / Risk Adjusted Assets | 9.76 | % | 9.76 | % | 11.55 | % | |||||
| Total Capital / Risk Adjusted Assets | 10.62 | % | 10.94 | % | 12.47 | % | |||||
| Tier 1 Capital / Average Assets | 8.02 | % | 7.68 | % | 9.01 | % | |||||
| Shares outstanding | 5,520,892 | 5,518,210 | 5,499,578 | ||||||||
| Total unrealized loss on AFS debt securities, net of income taxes | $ | (5,452 | ) | $ | (8,295 | ) | $ | (17,205 | ) | ||
| Total unrealized gain on derivatives and hedging activities, net of income taxes | $ | 1,097 | $ | 1,272 | $ | 1,172 | |||||
| Profitability Ratios | ||||||||||||||
| March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | March 31, 2024 | ||||||||||
| For the quarter: | ||||||||||||||
| NIM | 4.55 | % | 4.41 | % | 4.29 | % | 4.24 | % | 4.16 | % | ||||
| NIMTE* | 4.61 | % | 4.47 | % | 4.35 | % | 4.30 | % | 4.22 | % | ||||
| Efficiency ratio | 64.47 | % | 66.96 | % | 66.11 | % | 68.78 | % | 68.93 | % | ||||
| Return on average assets | 1.76 | % | 1.43 | % | 1.22 | % | 1.31 | % | 1.19 | % | ||||
| Return on average equity | 19.70 | % | 16.32 | % | 13.69 | % | 14.84 | % | 13.84 | % | ||||
*Non-GAAP Financial Measures
(Dollars and shares in thousands, except per share data)
(Unaudited)
Non-GAAP financial measures have inherent limitations, are not required to be uniformly applied, and are not audited. Although we believe these non-GAAP financial measures are frequently used by stakeholders in the evaluation of the Company, they have limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of results as reported under GAAP.
Net interest margin on a tax equivalent basis
Net interest margin on a tax equivalent basis (“NIMTE”) is a non-GAAP performance measurement in which interest income on non-taxable investments and loans is presented on a tax equivalent basis using a combined federal and state statutory rate of
| Three Months Ended | |||||||||||||||||||
| March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | March 31, 2024 | |||||||||||||||
| Net interest income | $ | 31,297 | $ | 30,841 | $ | 28,842 | $ | 27,053 | $ | 26,447 | |||||||||
| Divided by average interest-bearing assets | 2,781,370 | 2,787,517 | 2,674,291 | 2,568,266 | 2,558,558 | ||||||||||||||
| Net interest margin (“NIM”)2 | 4.55 | % | 4.41 | % | 4.29 | % | 4.24 | % | 4.16 | % | |||||||||
| Net interest income | $ | 31,297 | $ | 30,841 | $ | 28,842 | $ | 27,053 | $ | 26,447 | |||||||||
| Plus: reduction in tax expense related to tax-exempt interest income | 379 | 379 | 385 | 378 | 379 | ||||||||||||||
| $ | 31,676 | $ | 31,220 | $ | 29,227 | $ | 27,431 | $ | 26,826 | ||||||||||
| Divided by average interest-bearing assets | 2,781,370 | 2,787,517 | 2,674,291 | 2,568,266 | 2,558,558 | ||||||||||||||
| NIMTE2 | 4.61 | % | 4.47 | % | 4.35 | % | 4.30 | % | 4.22 | % | |||||||||
2Calculated using actual days in the quarter divided by 365 for the quarters ended in 2025 and 366 for the quarters ended in 2024, respectively.
*Non-GAAP Financial Measures
(Dollars and shares in thousands, except per share data)
(Unaudited)
Tangible Book Value Per Share
Tangible book value per share is a non-GAAP measure defined as shareholders’ equity, less intangible assets, divided by shares outstanding. The most comparable GAAP measure is book value per share and the following table sets forth the reconciliation of tangible book value per share and book value per share for the periods indicated.
| March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | March 31, 2024 | |||||||||||||||
| Total shareholders’ equity | $ | 279,756 | $ | 267,116 | $ | 260,050 | $ | 247,200 | $ | 239,327 | |||||||||
| Divided by shares outstanding | 5,521 | 5,518 | 5,502 | 5,502 | 5,500 | ||||||||||||||
| Book value per share | $ | 50.68 | $ | 48.41 | $ | 47.26 | $ | 44.93 | $ | 43.52 | |||||||||
| March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | March 31, 2024 | |||||||||||||||
| Total shareholders’ equity | $ | 279,756 | $ | 267,116 | $ | 260,050 | $ | 247,200 | $ | 239,327 | |||||||||
| Less: goodwill and intangible assets | 50,824 | 50,968 | 15,967 | 15,967 | 15,967 | ||||||||||||||
| $ | 228,932 | $ | 216,148 | $ | 244,083 | $ | 231,233 | $ | 223,360 | ||||||||||
| Divided by shares outstanding | 5,521 | 5,518 | 5,502 | 5,502 | 5,500 | ||||||||||||||
| Tangible book value per share | $ | 41.47 | $ | 39.17 | $ | 44.36 | $ | 42.03 | $ | 40.61 | |||||||||
Tangible Common Equity to Tangible Assets
Tangible common equity to tangible assets is a non-GAAP ratio that represents total equity less goodwill and intangible assets divided by total assets less goodwill and intangible assets. The most comparable GAAP measure of shareholders’ equity to total assets is calculated by dividing total shareholders’ equity by total assets and the following table sets forth the reconciliation of tangible common equity to tangible assets and shareholders’ equity to total assets for the periods indicated.
| Northrim BanCorp, Inc. | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | March 31, 2024 | ||||||||||||||
| Total shareholders’ equity | $ | 279,756 | $ | 267,116 | $ | 260,050 | $ | 247,200 | $ | 239,327 | |||||||||
| Total assets | 3,140,960 | 3,041,869 | 2,963,392 | 2,821,668 | 2,759,560 | ||||||||||||||
| Total shareholders’ equity to total assets | 8.91 | % | 8.78 | % | 8.78 | % | 8.76 | % | 8.67 | % | |||||||||
| Northrim BanCorp, Inc. | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | March 31, 2024 | ||||||||||||||
| Total shareholders’ equity | $ | 279,756 | $ | 267,116 | $ | 260,050 | $ | 247,200 | $ | 239,327 | |||||||||
| Less: goodwill and other intangible assets, net | 50,824 | 50,968 | 15,967 | 15,967 | 15,967 | ||||||||||||||
| Tangible common shareholders’ equity | $ | 228,932 | $ | 216,148 | $ | 244,083 | $ | 231,233 | $ | 223,360 | |||||||||
| Total assets | $ | 3,140,960 | $ | 3,041,869 | $ | 2,963,392 | $ | 2,821,668 | $ | 2,759,560 | |||||||||
| Less: goodwill and other intangible assets, net | 50,824 | 50,968 | 15,967 | 15,967 | 15,967 | ||||||||||||||
| Tangible assets | $ | 3,090,136 | $ | 2,990,901 | $ | 2,947,425 | $ | 2,805,701 | $ | 2,743,593 | |||||||||
| Tangible common equity ratio | 7.41 | % | 7.23 | % | 8.28 | % | 8.24 | % | 8.14 | % | |||||||||
| Contact: | Mike Huston, President, CEO, and COO (907) 261-8750 Jed Ballard, Chief Financial Officer (907) 261-3539 | |
Note Transmitted on GlobeNewswire on April 23, 2025, at 12:15 pm Alaska Standard Time.
FAQ
What was Northrim BanCorp's (NRIM) earnings per share in Q1 2025?
How much did NRIM's net interest income grow in Q1 2025?
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