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Northrim BanCorp Earns $4.4 Million, or $0.63 per Diluted Share in 2Q16

ANCHORAGE, Alaska, Aug. 01, 2016 (GLOBE NEWSWIRE) -- Northrim BanCorp, Inc. (NASDAQ:NRIM) (“Northrim” or the "Company") today reported a 29% increase in second quarter net income attributable to the Company compared to the linked quarter primarily due to higher mortgage production. Net income attributable to the Company decreased 9% in the second quarter of 2016 compared to the same quarter a year ago mainly due to increased operating expenses this year in the community banking segment. Net income attributable to the Company in the second quarter of 2016 totaled $4.4 million, or $0.63 per diluted share, compared to $4.8 million, or $0.69 per diluted share, in the second quarter of 2015, and $3.4 million, or $0.48 per diluted share, in the first quarter of 2016. In the first half of 2016, net income attributable to the Company decreased to $7.7 million, or $1.11 per diluted share, compared to $8.3 million, or $1.20 per diluted share in the first half of 2015 mainly due to higher refinancing activity in the home mortgage lending segment in 2015.

“Slowing loan demand was partially offset by strong mortgage banking income in the second quarter,” said Joseph Beedle, Chairman, President and CEO of the Company. “Our mortgage business continues to generate strong revenues and profits. In the second quarter, home mortgage lending contributed $8.8 million to pre-tax revenues and $0.22 to net earnings per diluted share, and $14.7 million to pre-tax revenue and $0.30 to net earnings per diluted share in the first half of 2016.

“The loan portfolio decreased in the second quarter of 2016 compared to both the previous quarter and second quarter of 2015, mostly as a result of the completion of several large commercial construction projects in 2016 that were not fully offset by growth in other areas of the portfolio,” said Beedle. “Our commercial real estate (“CRE”) loan portfolio (both owner-occupied and investment properties) generated 9% year-over-year growth and accounted for 49% of loans at the end of June 2016. Construction loans were down 24% in the second quarter of 2016 and 31% year-over-year, primarily due to approximately $35 million in projects which were completed and termed out in the second quarter of 2016 and $74 million which were completed in the last twelve months. Of these construction loans, $25 million and $46 million converted to the CRE portfolio in the second quarter of 2016 and in the last twelve months, respectively.”

“The ratio of nonperforming assets to total assets, net of government guarantees increased during the second quarter of 2016, primarily due to the addition of two lending relationships to non-accrual loans totaling $8.2 million,” said Joe Schierhorn, Northrim Bank’s CEO, President, and Chief Operating Officer. “One $5.9 million relationship is related to a residential land development project in the greater Anchorage market. The loan has been included in adversely classified loans since December 31, 2015. The other $2.3 million relationship is made up of three loans to a commercial business in the transportation industry, and these loans have been adversely classified loans since March 31, 2016.”

Financial Highlights

Three Months Ended
(Dollars in thousands, except per share data)June 30, 2016March 31, 2016December 31, 2015September 30, 2015June 30, 2015
Total assets$1,518,370 $1,500,199 $1,499,492 $1,539,253 $1,500,331
Total portfolio loans$967,345 $970,517 $980,787 $973,680 $974,849
Average portfolio loans$969,450 $980,117 $979,789 $982,301 $966,952
Total deposits$1,255,688 $1,246,968 $1,240,792 $1,264,919 $1,238,717
Average deposits$1,235,142 $1,236,555 $1,291,133 $1,230,243 $1,193,362
Total shareholders' equity$183,965 $180,398 $177,214 $175,336 $171,082
Net income attributable to Northrim BanCorp$4,350 $3,376 $4,106 $5,335 $4,781
Diluted earnings per share$0.63 $0.48 $0.59 $0.77 $0.69
Return on average assets 1.17 % 0.91 % 1.05 % 1.42 % 1.33 %
Return on average shareholders' equity 9.42 % 7.61 % 9.37 % 12.37 % 11.46 %
Net interest margin ("NIM") 4.21 % 4.23 % 4.05 % 4.32 % 4.37 %
Tax equivalent NIM* 4.27 % 4.29 % 4.10 % 4.38 % 4.44 %
Efficiency ratio 74.52 % 74.47 % 74.23 % 66.93 % 68.64 %
Tangible common equity/tangible assets* 10.72 % 10.61 % 10.40 % 10.00 % 9.97 %
Book value per share$26.75 $26.23 $25.77 $25.56 $24.96
Tangible book value per share*$23.30 $22.78 $22.31 $22.09 $21.47
Dividends per share$0.19 $0.19 $0.19 $0.19 $0.18

* References to tax equivalent NIM, tangible book value per share, tangible common equity and tangible assets (all 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 page 20 of this release for reconciliations of these measures to GAAP financial measures.

  • Year-to-date 2016 net income attributable to the Company totaled $7.7 million, or $1.11 per diluted share, compared to $8.3 million, or $1.20 per diluted share, in the first half of 2015.
  • Total revenues, which include net interest income plus total other operating income, increased 11% in the second quarter of 2016 from the previous quarter and 1% from the second quarter a year ago. Second quarter 2016 revenues were $25.9 million, compared to $23.3 million in the preceding quarter and $25.8 million in the second quarter a year ago.
  • Net interest income was down 1% in the second quarter of 2016 compared to both the first quarter of 2016 and the second quarter a year ago, primarily as a result of a decrease in average loan balances from the first quarter of 2016, and a decrease in the yield on portfolio loans compared to the second quarter of 2015.
  • Other operating income increased 30% to $11.9 million in the second quarter of 2016 compared to the previous quarter and accounted for 46% of total revenues in the current quarter. In the preceding quarter, other operating income was $9.1 million and 39% of total revenues, and was $11.6 million and 45%, respectively, in the second quarter a year ago.
  • NIM decreased slightly to 4.21% in the second quarter of 2016 compared to 4.23% in the first quarter of 2016 and 4.37% in the second quarter a year ago, while tax equivalent NIM* also declined compared to those periods, but still remained above peer average1 at 4.27% in the second quarter of 2016. The decrease in both NIM and tax equivalent NIM* in the current quarter compared to the year ago quarter is primarily the result of the increase in lower-yielding securities in the mix of interest earning assets.

1As of March 31, 2016, the SNL US Bank Index tracked 331 banks with averages for the following ratios: NIM (tax equivalent) 2.77%, return on average assets 0.88%, and return on average equity 7.67%

  • Northrim paid a quarterly cash dividend of $0.19 per share in June 2016, up from the $0.18 per share dividend paid in June 2015. The dividend provides an annual yield of approximately 2.7% at current market share prices.
  • Book value per share increased to $26.75 at the end of the second quarter of 2016 compared to $26.23 at the end of the previous quarter and $24.96 at the end of the second quarter of 2015. Tangible book value* increased to $23.30 per share at June 30, 2016, compared to $22.78 per share at March 31, 2016, and $21.47 per share a year ago, mainly as a result of a steady contribution from earnings less cash dividends paid.
  • Northrim remains well-capitalized with Tier 1 Capital to Risk Adjusted Assets of 13.85% at June 30, 2016, compared to 13.66% at March 31, 2016, and 12.67% a year ago.
  • Total shareholders' equity to total assets was 12.12% at the end of the second quarter of 2016 compared to 12.02% at the end of the prior quarter and 11.40% at the end of the second quarter of 2015, while tangible common equity to tangible assets* was 10.72% at June 30, 2016, compared to 10.61% at March 31, 2016, and 9.97% a year ago.

Alaska Economic Update

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 “About Northrim” link and then click "Alaska's Economy". Information from our website is not incorporated into, and does not form a part of this press release.

“Employment in the Alaska economy was essentially flat during the first half of 2016, which represents a more moderate overall impact from the decrease in the global price of oil compared to what other energy producing regions in the nation have experienced thus far,” said Beedle. According to the Alaska Department of Labor, preliminary data shows that average employment in the State of Alaska in 2016 decreased 0.1% in the first six months of 2016 as compared to the same period in 2015, as job losses in the oil and gas industry, construction, state government and professional and business services have been partially offset by growth in retail trade, health care, and leisure and hospitality jobs. "As the Alaska economy has slowed, our loan demand has also slowed moderately. However, we believe our pipeline of loans for underwriting remains healthy," said Beedle.

“We believe our state government is having difficulty addressing the state’s fiscal deficit issues, which we believe can be funded from draws from Alaska’s substantial reserves for no more than three additional years. We also believe that systemic reductions in government expenses, increased taxation, and use of earnings from the Alaska Permanent Fund provide opportunities for the State of Alaska to fund its deficit. We believe that Alaska has been more resilient than other energy dependent states, because we did not have an overheated energy sector or an overbuilt housing market when energy and commodities prices began to fall,” Beedle continued.

Review of Income Statement

Consolidated Income Statement

In the period ending June 30, 2016, Northrim generated a return on average assets of 1.17% and a return on average equity of 9.42%, as compared to a 0.88% return on average assets and 7.67% return on average equity posted by the 331 banks that make up the SNL U.S. Bank Index. Similarly, our NIM and tax equivalent NIM* for the second quarter of 2016 were 4.21% and 4.27% compared to 2.77% tax equivalent for the index peers. 1

Net Interest Income/Net Interest Margin

Net interest income decreased 1% to $14.1 million in the second quarter of 2016 as compared to $14.2 million in both the previous and year ago quarters, primarily due to a decrease in average loan balances from the first quarter of 2016, and a decrease in the yield on portfolio loans compared to the second quarter of 2015. Net interest income increased 2% in the first half of 2016 to $28.3 million compared to $27.8 million in the first half of 2015, primarily due to reduced interest expense on borrowings as well as higher average portfolio loan balances on a year-to-date basis, which was only partially offset by lower yields.

NIM and tax equivalent NIM* decreased in the second quarter of 2016 compared to linked quarter and compared to the second quarter of 2015, and also decreased for the first six months of 2016 as compared to the same period in 2015. “We have experienced a gradual decline in our NIM primarily as a result of the flattening of the yield curve, lower loan balances, and higher securities holdings,” said Schierhorn.

The Company's tax equivalent NIM*, which is primarily comprised of activities in the community banking segment, remained well above the average for the 331 banks in the SNL U.S. Bank Index of 2.77% as of March 31, 2016. “We are continuing to forecast tax equivalent NIM* stabilizing in the 4.20% to 4.30% range, regardless of interim changes in Fed Funds rates. We believe tax equivalent NIM should benefit once interest rates rise another 50 basis points or the yield curve steepens, and would be adversely affected if rates continue to fall and the yield curve continues to flatten,” said Latosha Frye, Chief Financial Officer.

Provision for Loan Losses

The provision for loan losses decreased to $200,000 in the second quarter of 2016 from $703,000 in the first quarter of 2016 and $376,000 in the second quarter of 2015. The decrease is primarily due to lack of growth in the loan portfolio. Although there were increases in adversely classified loans and nonperforming loans in the second quarter, there was no significant additional impairment on these loans during the quarter. The allowance for loan losses to portfolio loans at the end of the second quarter of 2016 increased to 1.90% from 1.87% at March 31, 2016 and 1.79% at June 30, 2015.

Other Operating Income

In addition to home mortgage lending, Northrim has interests in other businesses that complement its core community banking activities. It provides financial services to businesses and individuals through these interests, including purchased receivables financing, employee benefit plans, and wealth management. These complementary business activities contributed $1.5 million, or 6% of total revenues in the second quarter of 2016, in the first quarter of 2016, and in the second quarter a year ago.

Other operating income on a consolidated basis grew 30% to $11.9 million, or 46% of total second quarter 2016 revenues, up from $9.1 million, or 39% of first quarter 2016 revenues, and grew 3% from $11.6 million, or 45% of second quarter 2015 revenues. Strong contributions from the home mortgage lending segment in the current quarter was the primary reason for the increase in other operating income as compared to both prior periods, which offset modest declines in other revenue items. On a year-to-date basis, other operating income decreased 5% to $21.0 million from $22.1 million in the first half of 2015, primarily due to high refinancing activity in the first quarter of 2015.

Other Operating Expenses

Operating expenses increased to $19.4 million in the second quarter of 2016 compared to $17.4 million in the first quarter of 2016 and $17.8 million in the second quarter of 2015. The increase from the previous quarters was primarily the result of higher salaries and other personnel expenses combined with the increase in the fair value of the earn-out liability associated with the acquisition of Residential Mortgage Holding Company, LLC ("RML"), increased expenses associated with other real estate owned ("OREO") assets, and a $358,000 loss on the sale of one branch location. The Company sold one branch, but simultaneously entered into a long-term lease of the same branch location in the second quarter of 2016. While this transaction generated a loss on sale in the current quarter, management believes that leasing this location will be cost effective and operationally more efficient than owning the property in the longer term.

Community Banking

Net income attributable to the Company for the community banking segment totaled $2.8 million in the second quarter of 2016, relatively consistent with the preceding quarter and a decrease compared to $3.4 million in the second quarter a year ago. Flat loan growth and higher operating expenses primarily accounted for the year-over-year decline. In addition to the $358,000 loss on the sale of one branch location in the second quarter of 2016, operating expenses increased in the second quarter of 2016 as compared to the same quarter last year mainly due to increased salaries and medical costs as well as an increase in OREO expenses primarily due to a market valuation adjustment of $130,000 for one commercial property in a remote location in Alaska. Year-to-date, net income attributable to the Company for the community banking segment totaled $5.6 million, or $0.81 per diluted share for the first six months of both 2016 and 2015. Increased personnel costs of $1.3 million in the first half of 2016, mainly consisting of salary and medical expenses, were offset by a decrease of $1.3 million in the expenses related to the earn-out liability associated with the acquisition of RML.

"RML continues to outperform our original projections made when we purchased the business at the end of 2014. This quarter, and for the year, RML's net income attributable to the Company again exceeded our original estimates, though to a lesser degree than through the first half of 2015,” said Frye. The earn-out payments related to the acquisition of RML are an obligation of Northrim Bank and are therefore included in the community banking segment results.

The following table provides highlights of the community banking segment of Northrim:

Three Months Ended
(Dollars in thousands, except per share data)June 30, 2016March 31, 2016December 31, 2015September 30, 2015June 30, 2015
Net interest income$13,829 $13,933 $14,008 $14,425 $13,984
Provision for loan losses 200 703 376 676 376
Other operating income 3,354 3,409 3,794 4,269 3,704
Change in fair value, RML earn-out liability 687 130 1,225 780 587
Other operating expense 12,504 12,306 11,965 11,853 11,430
Income before provision for income taxes 3,792 4,203 4,236 5,385 5,295
Provision for income taxes 805 1,285 985 1,513 1,722
Net income 2,987 2,918 3,251 3,872 3,573
Less: net income attributable to the noncontrolling interest 156 130 120 197 162
Net income attributable to Northrim BanCorp$2,831 $2,788 $3,131 $3,675 $3,411
Average diluted shares 6,968,891 6,964,707 6,971,828 6,952,209 6,941,671
Diluted earnings per share$0.41 $0.40 $0.45 $0.53 $0.49
Year-to-date
(Dollars in thousands, except per share data)June 30, 2016 June 30, 2015
Net interest income$27,762 $27,500
Provision for loan losses 903 702
Other operating income 6,763 6,933
Change in fair value, RML earn-out liability 817 2,089
Other operating expense 24,810 23,252
Income before provision for income taxes 7,995 8,390
Provision for income taxes 2,090 2,526
Net income 5,905 5,864
Less: net income attributable to the noncontrolling interest 286 234
Net income attributable to Northrim BanCorp$5,619 $5,630
Average diluted shares 6,966,905 6,938,879
Diluted earnings per share$0.81 $0.81

Home Mortgage Lending

“Second quarter 2016 mortgage lending volumes increased as compared to the first quarter, which is a normal seasonal fluctuation, with refinancing activity accounting for 18% of total loans funded in the quarter. Refinancing activity accounted for 16% of loans funded in the first quarter of 2016 and 20% of second quarter 2015 production,” said Schierhorn. “With interest rates remaining at historically low levels, mortgage demand continues to be stable. Commitments for new mortgages grew 18% from the preceding quarter and 13% from the second quarter a year ago."

In the fourth quarter of 2015, Northrim began servicing the loans RML originates for the Alaska Housing Finance Corporation, which account for approximately 20% of loans originated by RML in 2016. Northrim now services 833 loans in its $193 million servicing portfolio. Servicing income contributed $510,000 to second quarter mortgage banking income, compared to $701,000 for the first quarter of 2016 and $30,000 for the first quarter 2015.

Operating expenses in the home mortgage lending segment increased to $6.1 million in the second quarter of 2016 compared to $4.9 million in the first quarter. “The increase in our operating expenses for the home mortgage lending segment in the second quarter of 2016 compared to the previous quarter is primarily the result of higher commission costs, which increase when production increases,” said Frye.

The following table provides highlights of the Home Mortgage Lending segment of Northrim:

Three Months Ended
(Dollars in thousands, except per share data)June 30, 2016March 31, 2016December 31, 2015September 30, 2015June 30, 2015
Net interest income$250 $241 $392 $257 $211
Provision for loan losses
Other operating income 8,510 5,696 6,310 8,138 7,859
Other operating expense 6,178 4,935 5,039 5,570 5,736
Income before provision for income taxes 2,582 1,002 1,663 2,825 2,334
Provision for income taxes 1,063 414 688 1,165 964
Net income attributable to Northrim BanCorp$1,519 $588 $975 $1,660 $1,370
Average diluted shares 6,968,891 6,964,707 6,971,828 6,952,209 6,941,671
Diluted earnings per share$0.22 $0.08 $0.14 $0.24 $0.20
Mortgage commitments$98,788 $83,823 $71,280 $74,637 $87,460
Mortgage loans funded for sale$208,921 $133,050 $159,590 $201,402 $216,450
Mortgage loan refinances to total fundings 18 % 16 % 12 % 10 % 20 %
Mortgage loans serviced for others$193,230 $160,803 $125,446 $94,791 $88,948
Net realized gains on mortgage loans sold$7,147 $4,777 $5,216 $7,496 $7,532
Change in fair value of mortgage loan commitments, net 480 48 (57 ) (5 ) (140 )
Total production revenue 7,627 4,825 5,159 7,491 7,392
Mortgage servicing revenue, net 510 701 820 308 30
Other mortgage banking revenue 373 170 331 339 437
Total mortgage banking income$8,510 $5,696 $6,310 $8,138 $7,859
Year-to-date
(Dollars in thousands, except per share data)June 30, 2016 June 30, 2015
Net interest income$491 $327
Provision for loan losses
Other operating income 14,206 15,165
Other operating expense 11,113 10,873
Income before provision for income taxes 3,584 4,619
Provision for income taxes 1,477 1,907
Net income attributable to Northrim BanCorp$2,107 $2,712
Average diluted shares 6,966,905 6,938,879
Diluted earnings per share$0.30 $0.39
Mortgage commitments$182,611 $168,674
Mortgage loans funded for sale$341,971 $392,823
Mortgage loan refinances to total fundings 17 % 28 %
Net realized gains on mortgage loans sold$11,924 $13,686
Change in fair value of mortgage loan commitments, net 528 678
Total production revenue 12,452 14,364
Mortgage servicing revenue, net 1,211 53
Other mortgage banking revenue 543 748
Total mortgage banking income$14,206 $15,165

Balance Sheet Review

Northrim’s assets increased 1% to $1.52 billion at June 30, 2016, compared to $1.50 billion a year ago, mainly as a result of an increase in investments from increasing deposit balances.

Average investment securities increased 1% from the preceding quarter and increased 28% from a year ago. The investment portfolio generated an average net tax equivalent yield of 1.44% for the second quarter of 2016 and the average estimated duration of the investment portfolio was 1.2 years at June 30, 2016.

Average loans held for sale increased 28% to $48.8 million in the second quarter of 2016 compared to the linked quarter, primarily reflecting the seasonality of the mortgage business and the sustained demand for home loans in the Alaska marketplace but decreased 26% from a year ago mainly due to less refinance activity in 2016.

Year-over-year, portfolio loans declined 1% to $967.3 million at June 30, 2016, and average portfolio loans increased 2% in the first half of 2016 from a year ago. Construction and land development loans, which are by nature short-term, fell 24% in the second quarter of 2016 and 31% year-over year. Partially offsetting this decline was the increase in commercial real estate projects which grew 3% in the second quarter of 2016 and 9% year-over-year.

Alaskans account for substantially all of Northrim’s deposit base, which is primarily made up of low-cost transaction accounts. Balances in transaction accounts at June 30, 2016, represented 89% of total deposits. At June 30, 2016, total deposits were $1.26 billion, up slightly from $1.24 billion a year ago and $1.25 billion from the immediate prior quarter. Year-over-year, average non-interest bearing deposits grew 8% in 2016 and average interest-bearing deposits increased 3%, bringing average total deposits up 4% to $1.24 billion for the second quarter of 2016 compared to $1.19 billion in the second quarter a year ago.

Other borrowings declined to $4.4 million at June 30, 2016, down substantially from $22.3 million at June 30, 2015, as Northrim is now funding RML's short term borrowings from its internally generated liquidity.

Shareholders’ equity increased 8% to $184.0 million, or $26.75 per share, at June 30, 2016, compared to $171.1 million, or $24.96 per share, a year ago. Tangible book value per share* was $23.30 at June 30, 2016 compared to $21.47 per share a year ago. Northrim remains well-capitalized with Tier 1 Capital to Risk Adjusted Assets of 13.85% at June 30, 2016.

Asset Quality

“While adversely classified assets remain elevated at the end of the second quarter as compared to one year ago, we had a decrease in charge-offs in the second quarter of 2016 and did not have any charge-offs related to the oil sector,” said Schierhorn. The following table details loan charge-offs, by industry:

(Dollars in thousands)Three Months Ended
June 30, 2016March 31, 2016June 30, 2015
Charge-offs:
Agriculture, forestry, fishing and hunting $— $493 $—
Construction 218
Transportation and warehousing 22
Retail trade 135
Consumer 1
Total charge-offs$135 $734 $—

At June 30, 2016, nonperforming assets, net of government guarantees, increased to 0.80% of total assets from 0.29% at the end of the preceding quarter and 0.41% a year ago. Net non-performing loans were 1.00% of portfolio loans compared to 0.17% at the end of the preceding quarter and 0.35% a year ago. These increases are primarily the result of the increase in nonaccrual loans that was discussed on page 1.

Performing restructured loans, that were not included in nonaccrual loans at the end of the first quarter of 2016, improved to $11.2 million at the end of the second quarter from $11.6 million at the end of the previous quarter, but grew from $5.7 million at the end of the second quarter a year ago, primarily due to a single lending relationship for a medical business that was restructured in the fourth quarter of 2015. The maturities of these loans were extended to allow the amortization schedules for the loans to more closely mirror the cash flow of this business. Borrowers who are in financial difficulty and who have been granted concessions that may include interest rate reductions, term extensions, or payment alterations are categorized as restructured loans. The Company presents restructured loans that are performing separately from those that are classified as nonaccrual to provide more information on this category of loans and to differentiate between accruing performing and nonperforming restructured loans. At June 30, 2016, performing restructured loans plus nonperforming loans, net of government guarantees, increased to 1.54% of total assets from 1.07% at the end of the preceding quarter and 0.80% a year ago.

OREO remained consistent with prior periods at $2.6 million at the end of the second quarter of 2016, compared to $2.7 million the preceding quarter and $2.8 million a year ago.

The allowance for loan losses was 1.90% of portfolio loans at June 30, 2016, compared to 1.87% at March 31, 2016, and 1.79% at the end of the second quarter of 2015. Adversely classified loans totaled $41.1 million, or 4% of portfolio loans, at the end of the second quarter of 2016, compared to 4% at March 31, 2016, and 2% at the end of the second quarter of 2015. Adversely classified loans are loans that Northrim has classified as substandard, doubtful, and loss, net of government guarantees. As of June 30, 2016, $30.5 million, or 84% of adversely classified loans net of government guarantees are attributable to four relationships in the following sectors; one retail commercial business, one commercial real estate construction project, one medical business, and one residential land development project.

Northrim estimates that $41.8 million, or approximately 4% of portfolio loans as of June 30, 2016, have direct exposure to the oil and gas industry in Alaska, and $4.2 million of these loans are adversely classified. Northrim has an additional $45.7 million in unfunded commitments to companies with direct exposure to the oil and gas industry in Alaska, and none of these unfunded commitments are applicable to adversely classified loans. “We currently have no loans to oil producers or exploration companies," said Frye. "We define direct exposure to the oil and gas sector as loans to borrowers that provide oilfield services and other companies that we have identified as significantly reliant upon activity in Alaska related to the oil and gas industry, such as lodging, equipment rental, transportation and other logistics services specific to this industry."

About Northrim BanCorp

Northrim BanCorp, Inc. is the parent company of Northrim Bank, an Alaska-based community bank with 14 branches in Anchorage, the Matanuska Valley, Juneau, Fairbanks, Ketchikan, and Sitka serving 90% of Alaska’s population; and an asset based lending division in Washington; and a wholly-owned mortgage brokerage company, Residential Mortgage Holding Company, LLC. The Bank differentiates itself with its detailed knowledge of Alaska’s economy and its “Customer First Service” philosophy. Affiliated companies include Northrim Benefits Group, LLC; and Pacific Wealth Advisors, LLC.

www.northrim.com

Forward-Looking Statement
This release may contain “forward-looking statements” as that term is defined for purposes of Section 21E of the Securities and Exchange Act. 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 and 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: our ability to maintain strong asset quality and to maintain or expand our market share or net interest margins; and our ability to execute our business plan. Further, actual results may be affected by our ability to compete 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 as those factors relate to our cost of funds and return on assets. 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, 2015, 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:

http://live.laborstats.alaska.gov/ces/ces.cfm?at=01&a=000000&adj=0
http://labor.alaska.gov/news/2016/news16-24.pdf

Income Statement
(Dollars in thousands, except per share data)Three Months Ended
(Unaudited)June 30,March 31,Three MonthJune 30,One Year
20162016% Change2015% Change
Interest Income:
Interest and fees on loans$13,710 $13,778 0%$14,135 -3%
Interest on portfolio investments 967 993 -3% 784 23%
Interest on deposits in banks 41 47 -13% 24 71%
Total interest income 14,718 14,818 -1% 14,943 -2%
Interest Expense:
Interest expense on deposits 479 471 2% 493 -3%
Interest expense on borrowings 160 173 -8% 255 -37%
Total interest expense 639 644 -1% 748 -15%
Net interest income 14,079 14,174 -1% 14,195 -1%
Provision for loan losses 200 703 -72% 376 -47%
Net interest income after provision for loan losses 13,879 13,471 3% 13,819 0%
Other Operating Income:
Mortgage banking income 8,510 5,696 49% 7,859 8%
Employee benefit plan income 936 964 -3% 931 1%
Bankcard fees 675 633 7% 669 1%
Purchased receivable income 531 534 -1% 562 -6%
Service charges on deposit accounts 510 499 2% 568 -10%
Gain (loss) on sale of securities 12 (23) 152% 16 -25%
Other income 690 802 -14% 958 -28%
Total other operating income 11,864 9,105 30% 11,563 3%
Other Operating Expense:
Salaries and other personnel expense 12,011 11,251 7% 11,125 8%
Occupancy expense 1,697 1,608 6% 1,594 6%
Data processing expense 1,146 1,084 6% 1,104 4%
Professional and outside services 785 707 11% 791 -1%
Change in fair value, RML earn-out liability 687 130 428% 587 17%
Marketing expense 615 738 -17% 642 -4%
Loss on sale of premises and equipment 358 NM 7 NM
Insurance expense 263 315 -17% 345 -24%
OREO (income) expense, net rental income and gains on sale 127 (26) 588% (121) 205%
Intangible asset amortization expense 35 35 0% 72 -51%
Other operating expense 1,645 1,529 8% 1,607 2%
Total other operating expense 19,369 17,371 12% 17,753 9%
Income before provision for income taxes 6,374 5,205 22% 7,629 -16%
Provision for income taxes 1,868 1,699 10% 2,686 -30%
Net income 4,506 3,506 29% 4,943 -9%
Less: Net income attributable to the noncontrolling interest 156 130 20% 162 -4%
Net income attributable to Northrim BanCorp$4,350 $3,376 29%$4,781 -9%
Basic EPS$0.63 $0.49 29%$0.70 -10%
Diluted EPS$0.63 $0.48 31%$0.69 -9%
Average basic shares 6,877,140 6,877,140 % 6,854,338 0%
Average diluted shares 6,968,891 6,964,707 0% 6,941,671 0%


Income Statement
(Dollars in thousands, except per share data)Six months ended June 30,
(Unaudited) One Year
20162015% Change
Interest Income:
Interest and fees on loans$27,488 $27,602 0%
Interest on portfolio investments 1,960 1,692 16%
Interest on deposits in banks 88 35 151%
Total interest income 29,536 29,329 1%
Interest Expense:
Interest expense on deposits 950 970 -2%
Interest expense on borrowings 333 532 -37%
Total interest expense 1,283 1,502 -15%
Net interest income 28,253 27,827 2%
Provision for loan losses 903 702 29%
Net interest income after provision for loan losses 27,350 27,125 1%
Other Operating Income:
Mortgage banking income 14,206 15,165 -6%
Employee benefit plan income 1,900 1,708 11%
Bankcard fees 1,308 1,258 4%
Purchased receivable income 1,065 1,151 -7%
Service charges on deposit accounts 1,009 1,058 -5%
(Loss) gain on sale of securities (11) 130 -108%
Other income 1,492 1,628 -8%
Total other operating income 20,969 22,098 -5%
Other Operating Expense:
Salaries and other personnel expense 23,262 21,675 7%
Occupancy expense 3,305 3,198 3%
Data processing expense 2,230 2,200 1%
Professional and outside services 1,492 1,542 -3%
Marketing expense 1,353 1,259 7%
Change in fair value, RML earn-out liability 817 2,089 -61%
Insurance expense 578 669 -14%
Loss on sale of premises and equipment 358 7 NM
OREO expense, net rental income and gains on sale 101 176 -43%
Intangible asset amortization expense 70 145 -52%
Other operating expense 3,174 3,254 -2%
Total other operating expense 36,740 36,214 1%
Income before provision for income taxes 11,579 13,009 -11%
Provision for income taxes 3,567 4,433 -20%
Net income 8,012 8,576 -7%
Less: Net income attributable to the noncontrolling interest 286 234 22%
Net income attributable to Northrim BanCorp$7,726 $8,342 -7%
Basic EPS$1.12 $1.22 -8%
Diluted EPS$1.11 $1.20 -8%
Average basic shares 6,877,140 6,854,264 0%
Average diluted shares 6,966,905 6,938,879 0%


Balance Sheet
(Dollars in thousands)
(Unaudited)June 30,March 31,Three MonthJune 30,One Year
2016 2016 % Change 2015 % Change
Assets:
Cash and due from banks$30,095 $23,361 29%$44,017 -32%
Interest bearing deposits in other banks 44,661 55,914 -20% 60,054 -26%
Portfolio investments 293,468 299,139 -2% 229,882 28%
Loans held for sale 60,360 38,907 55% 73,593 -18%
Portfolio loans 967,346 970,517 0% 974,849 -1%
Allowance for loan losses (18,385) (18,183) 1% (17,418) 6%
Net portfolio loans 948,961 952,334 0% 957,431 -1%
Purchased receivables, net 13,596 11,707 16% 14,048 -3%
Other real estate owned, net 2,558 2,702 -5% 2,807 -9%
Premises and equipment, net 38,671 40,348 -4% 37,942 2%
Goodwill and intangible assets 23,706 23,741 0% 23,889 -1%
Other assets 62,294 52,046 20% 56,668 10%
Total assets$1,518,370 $1,500,199 1%$1,500,331 1%
Liabilities:
Demand deposits$461,970 $442,842 4%$455,358 1%
Interest-bearing demand 183,885 195,896 -6% 173,952 6%
Savings deposits 231,246 230,834 0% 227,530 2%
Money market deposits 241,334 240,675 0% 232,877 4%
Time deposits 137,253 136,721 0% 149,000 -8%
Total deposits 1,255,688 1,246,968 1% 1,238,717 1%
Securities sold under repurchase agreements 26,049 25,946 0% 17,895 46%
Other borrowings 4,362 7,727 -44% 22,309 -80%
Junior subordinated debentures 18,558 18,558 0% 18,558 0%
Other liabilities 29,748 20,602 44% 31,770 -6%
Total liabilities 1,334,405 1,319,801 1% 1,329,249 0%
Shareholders' Equity:
Northrim BanCorp shareholders' equity 183,654 180,125 2% 170,805 8%
Noncontrolling interest 311 273 14% 277 12%
Total shareholders' equity 183,965 180,398 2% 171,082 8%
Total liabilities and shareholders' equity$1,518,370 $1,500,199 1%$1,500,331 1%


Additional Financial Information
(Dollars in thousands)
(Unaudited)
Composition of Portfolio Investments
June 30, 2016 March 31, 2016 June 30, 2015
Balance% of total Balance% of total Balance% of total
U.S. Treasury securities$30,315 10.3% $35,264 11.8% $15,150 6.6%
U.S. Agency securities 205,121 69.9% 205,405 68.7% 158,093 68.8%
U.S. Agency mortgage-backed securities 6 0.0% 7 0.0% 926 0.4%
Corporate bonds 45,818 15.6% 45,594 15.2% 40,326 17.5%
Alaska municipality, utility, or state bonds 9,651 3.3% 10,400 3.5% 12,965 5.6%
Other municipality, utility, or state bonds 591 0.2% 594 0.2% 605 0.3%
FHLB Stock 1,966 0.7% 1,875 0.6% 1,817 0.8%
Total portfolio investments$293,468 $299,139 $229,882


Composition of Portfolio Loans
June 30, 2016 March 31, 2016 December 31, 2015 September 30, 2015 June 30, 2015
Balance Balance% of total Balance% of total Balance% of total Balance% of total
Commercial loans$337,354 35% $326,735 34% $329,534 33% $325,092 33% $334,181 34%
CRE owner occupied loans 153,264 16% 128,933 13% 128,763 13% 112,527 12% 111,245 11%
CRE nonowner occupied loans 330,678 33% 340,830 35% 352,098 36% 327,556 33% 334,124 35%
Construction loans 96,236 10% 126,155 13% 119,419 12% 155,920 16% 139,916 14%
Consumer loans 54,134 6% 52,115 5% 55,585 6% 56,933 6% 59,842 6%
Subtotal 971,666 974,768 985,399 978,028 979,308
Unearned loan fees, net (4,320) (4,251) (4,612) (4,348) (4,459)
Total portfolio loans$967,346 $970,517 $980,787 $973,680 $974,849


Composition of Deposits
June 30, 2016 March 31, 2016 December 31, 2015 September 30, 2015 June 30, 2015
Balance% of total Balance% of total Balance% of total Balance% of total Balance% of total
Demand deposits$461,970 37% $442,842 35% $430,191 35% $485,304 39% $455,358 37%
Interest-bearing demand 183,885 15% 195,896 16% 209,291 17% 179,080 14% 173,952 14%
Savings deposits 231,246 18% 230,834 19% 227,969 18% 221,205 17% 227,530 18%
Money market deposits 241,334 19% 240,675 19% 236,675 19% 236,488 19% 232,877 19%
Time deposits 137,253 11% 136,721 11% 136,666 11% 142,842 11% 149,000 12%
Total deposits$1,255,688 $1,246,968 $1,240,792 $1,264,919 $1,238,717


Additional Financial Information
(Dollars in thousands)
(Unaudited)
Asset Quality
June 30, March 31, June 30,
2016 2016 2015
Nonaccrual loans$11,184 $3,196 $5,040
Loans 90 days past due and accruing 47 47
Total nonperforming loans 11,231 3,243 5,040
Nonperforming loans guaranteed by government (1,600) (1,561) (1,640)
Net nonperforming loans 9,631 1,682 3,400
Other real estate owned 2,558 2,702 2,807
Net nonperforming assets$12,189 $4,384 $6,207
Nonperforming loans / portfolio loans, net of government guarantees 1.00 % 0.17 % 0.35 %
Nonperforming assets / total assets, net of government guarantees 0.80 % 0.29 % 0.41 %
Performing restructured loans$11,177 $11,600 $5,736
Nonperforming loans plus performing restructured loans, net of government
guarantees$20,808 $13,282 $9,136
Nonperforming loans plus performing restructured loans / portfolio loans, net of
government guarantees 2.15 % 1.37 % 0.94 %
Nonperforming assets plus performing restructured loans / total assets, net of
government guarantees 1.54 % 1.07 % 0.80 %
Adversely classified loans, net of government guarantees$41,072 $38,361 $20,344
Loans 30-89 days past due and accruing, net of government guarantees /
portfolio loans 0.12 % 0.37 % 0.03 %
Allowance for loan losses / portfolio loans 1.90 % 1.87 % 1.79 %
Allowance for loan losses / nonperforming loans, net of government guarantees 191 % 1,081 % 512 %
Gross loan charge-offs for the quarter$135 $734 $
Gross loan recoveries for the quarter$(137) $(62) $(96)
Net loan charge-offs (recoveries) for the quarter$(2) $672 $(96)
Net loan charge-offs year-to-date$671 $672 $6
Net loan charge-offs (recoveries) for the quarter / average loans, for the quarter 0.00 % 0.07 % (0.01) %
Net loan charge-offs year-to-date / average loans,
year-to-date annualized 0.14 % 0.27 % 0.00 %


Additional Financial Information
(Dollars in thousands)
(Unaudited)
Nonperforming Assets Rollforward
Balance atAdditionsPaymentsWritedowns/Charge-offsTransfers to Performing StatusSalesBalance at
March 31, 2016this quarterthis quarterthis quarterthis quarterthis quarterJune 30, 2016
Commercial loans$2,660 $2,313 $(313) $(135) $(46) $— $4,479
Commercial real estate 271 216 (15) 472
Construction loans 5,884 5,884
Consumer loans 312 184 (6) (94) 396
Non-performing loans guaranteed by government (1,561) (195) 156 (1,600)
Total non-performing loans 1,682 8,402 (178) (135) (140) 9,631
Other real estate owned 2,702 (130) (14) 2,558
Total non-performing assets,
net of government guarantees$4,384 $8,402 $(178) $(265) $(140) $(14) $12,189


Additional Financial Information
(Dollars in thousands)
(Unaudited)
Average Balances, Yields, and Rates
Three Months Ended
June 30, 2016 March 31, 2016 June 30, 2015
Average Average Average
AverageTax Equivalent AverageTax Equivalent AverageTax Equivalent
BalanceYield/Rate BalanceYield/Rate BalanceYield/Rate
Assets
Interest bearing deposits in other banks$33,151 0.49% $38,024 0.49% $39,229 0.25%
Portfolio investments 293,716 1.44% 291,607 1.49% 229,485 1.50%
Loans held for sale 48,826 3.85% 38,164 3.87% 66,074 3.56%
Portfolio loans 969,450 5.54% 980,117 5.55% 966,952 5.67%
Total interest-earning assets 1,345,143 4.46% 1,347,912 4.48% 1,301,740 4.67%
Nonearning assets 144,274 141,282 143,404
Total assets$1,489,417 $1,489,194 $1,445,144
Liabilities and Shareholders' Equity
Interest-bearing deposits$804,944 0.24% $805,823 0.23% $784,972 0.25%
Borrowings 47,996 1.30% 50,864 1.34% 54,644 1.85%
Total interest-bearing liabilities 852,940 0.30% 856,687 0.30% 839,616 0.36%
Noninterest-bearing demand deposits 430,198 430,732 408,390
Other liabilities 20,509 23,379 29,840
Shareholders' equity 185,770 178,396 167,298
Total liabilities and shareholders' equity$1,489,417 $1,489,194 $1,445,144
Net spread 4.16% 4.18% 4.31%
Net interest margin ("NIM") 4.21% 4.23% 4.37%
Tax equivalent NIM* 4.27% 4.29% 4.44%
Average portfolio loans to average
interest-earning assets 72.07 % 72.71 % 74.28 %
Average portfolio loans to average total deposits 78.49 % 79.26 % 81.03 %
Average non-interest deposits to average
total deposits 34.83 % 34.83 % 34.22 %
Average interest-earning assets to average
interest-bearing liabilities 157.71 % 157.34 % 155.04 %


Additional Financial Information
(Dollars in thousands)
(Unaudited)
Average Balances, Yields, and Rates
Year-to-date
June 30, 2016 June 30, 2015
Average Average
AverageTax Equivalent AverageTax Equivalent
BalanceYield/Rate BalanceYield/Rate
Assets
Interest bearing deposits in other banks$35,587 0.49% $26,972 0.26%
Portfolio investments 292,662 1.47% 250,000 1.49%
Loans held for sale 43,495 3.86% 54,780 3.62%
Portfolio loans 974,783 5.54% 956,571 5.65%
Total interest-earning assets 1,346,527 4.47% 1,288,323 4.65%
Nonearning assets 142,777 148,888
Total assets$1,489,304 $1,437,211
Liabilities and Shareholders' Equity
Interest-bearing deposits$805,384 0.24% $780,099 0.25%
Borrowings 49,430 1.32% 56,801 1.84%
Total interest-bearing liabilities 854,814 0.30% 836,900 0.36%
Noninterest-bearing demand deposits 430,465 397,417
Other liabilities 21,943 35,781
Shareholders' equity 182,082 167,113
Total liabilities and shareholders' equity$1,489,304 $1,437,211
Net spread 4.17% 4.29%
Net interest margin ("NIM") 4.22% 4.36%
Tax equivalent NIM* 4.28% 4.41%
Average portfolio loans to average interest-earning assets 72.39 % 74.25 %
Average portfolio loans to average total deposits 78.88 % 81.24 %
Average non-interest deposits to average total deposits 34.83 % 33.75 %
Average interest-earning assets to average interest-bearing liabilities 157.52 % 153.94 %

Additional Financial Information
(Dollars in thousands)
(Unaudited)
Capital Data (At quarter end)
June 30, 2016 March 31, 2016 June 30, 2015
Book value per share$26.75 $26.23 $24.96
Tangible book value per share*$23.30 $22.78 $21.47
Tangible Common Equity/Tangible Assets* 10.72 % 10.61 % 9.97 %
Tier 1 Capital / Risk Adjusted Assets 13.85 % 13.66 % 12.67 %
Total Capital / Risk Adjusted Assets 15.11 % 14.92 % 13.92 %
Tier 1 Capital / Average Assets 12.10 % 11.87 % 10.25 %
Shares outstanding 6,877,140 6,877,140 6,854,413
Unrealized gain on AFS securities, net of income taxes$742 $458 $643


Profitability Ratios
June 30, 2016 March 31, 2016 December 31, 2015 September 30, 2015 June 30, 2015
For the quarter:
Net interest margin ("NIM")4.21 %4.23 %4.05 %4.32 %4.37 %
Tax equivalent NIM*4.27 %4.29 %4.10 %4.38 %4.44 %
Efficiency ratio74.52 %74.47 %74.23 %66.93 %68.64 %
Return on average assets1.17 %0.91 %1.05 %1.42 %1.33 %
Return on average equity9.42 %7.61 %9.37 %12.37 %11.46 %
June 30, 2016 June 30, 2015
Year-to-date:
Net interest margin ("NIM")4.22 % 4.36 %
Tax equivalent NIM*4.28 % 4.41 %
Efficiency ratio74.50 % 72.25 %
Return on average assets1.04 % 1.17 %
Return on average equity8.53 % 10.07 %

*Non-GAAP Financial Measures

(Dollars in thousands, except per share data)
(Unaudited)

Tax equivalent NIM

Tax equivalent NIM 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 41.11% in both 2016 and 2015. The most comparable GAAP measure is net interest margin and the following table sets forth the reconciliation of tax equivalent NIM to net interest margin.

Three Months Ended
June 30, 2016 March 31, 2016 December 31, 2015 September 30, 2015 June 30, 2015
Net interest income$14,079 $14,174 $14,400 $14,682 $14,195
Divided by average interest-bearing assets 1,345,143 1,347,912 1,411,436 1,346,830 1,301,740
Net interest margin ("NIM")2 4.21 % 4.23 % 4.05 % 4.32 % 4.37 %
Net interest income$14,079 $14,174 $14,400 $14,682 $14,195
Plus: reduction in tax expense related to
tax-exempt interest income 197 206 186 185 199
$14,276 $14,380 $14,586 $14,867 $14,394
Divided by average interest-bearing assets 1,345,143 1,347,912 1,411,436 1,346,830 1,301,740
Tax equivalent NIM2 4.27 % 4.29 % 4.10 % 4.38 % 4.44 %
Year-to-date
June 30, 2016 June 30, 2015
Net interest income$28,253 $27,827
Divided by average interest-bearing assets 1,346,527 1,288,323
Net interest margin ("NIM")3 4.22 % 4.36 %
Net interest income$28,253 $27,827
Plus: reduction in tax expense related to
tax-exempt interest income 403 351
$28,656 $28,178
Divided by average interest-bearing assets 1,346,527 1,288,323
Tax equivalent NIM3 4.28 % 4.41 %

2Calculated using actual days in the quarter divided by 366 for quarters ended in 2016 and actual days in the quarter divided by 365 for quarters ended in 2015.

3Calculated using actual days in the year divided by 366 for year-to-date period ended in 2016 and actual days in the year divided by 365 for year-to-date period ended in 2015.

(Dollars in thousands)
(Unaudited)

Tangible Book Value

Tangible book value is a non-GAAP measure defined as shareholders' equity, less intangible assets, divided by shares outstanding. The following table sets forth the reconciliation of tangible book value per share and book value per share.

June 30, 2016 March 31, 2016 December 31, 2015 September 30, 2015 June 30, 2015
Total shareholders' equity$183,965 $180,398 $177,214 $175,336 $171,082
Less: goodwill and intangible assets N/A N/A N/A N/A N/A
$183,965 $180,398 $177,214 $175,336 $171,082
Divided by shares outstanding 6,877 6,877 6,877 6,859 6,854
Book value per share$26.75 $26.23 $25.77 $25.56 $24.96
June 30, 2016 March 31, 2016 December 31, 2015 September 30, 2015 June 30, 2015
Total shareholders' equity$183,965 $180,398 $177,214 $175,336 $171,082
Less: goodwill and intangible assets 23,706 23,741 23,776 23,817 23,889
$160,259 $156,657 $153,438 $151,519 $147,193
Divided by shares outstanding 6,877 6,877 6,877 6,859 6,854
Tangible book value per share$23.30 $22.78 $22.31 $22.09 $21.47

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. This ratio has received more attention over the past several years from stock analysts and regulators. The most comparable GAAP measure of shareholders' equity to total assets is calculated by dividing total shareholders' equity by total assets.

June 30, 2016March 31, 2016 December 31, 2015 September 30, 2015 June 30, 2015
Total shareholders' equity 183,965 180,398 177,214 175,336 171,082
Total assets 1,518,370 1,500,199 1,499,492 1,539,253 1,500,331
Total shareholders' equity to total assets 12.12 % 12.02 % 11.82 % 11.39 % 11.40 %
June 30, 2016 March 31, 2016 December 31, 2015 September 30, 2015 June 30, 2015
Total shareholders' equity$183,965 $180,398 $177,214 $175,336 $171,082
Less: goodwill and other intangible assets, net 23,706 23,741 23,776 23,817 23,889
Tangible common shareholders' equity$160,259 $156,657 $153,438 $151,519 $147,193
Total assets$1,518,370 $1,500,199 $1,499,492 $1,539,253 $1,500,331
Less: goodwill and other intangible assets, net 23,706 23,741 23,776 23,817 23,889
Tangible assets$1,494,664 $1,476,458 $1,475,716 $1,515,436 $1,476,442
Tangible common equity ratio 10.72 % 10.61 % 10.40 % 10.00 % 9.97 %

Contact: Joe Schierhorn, Chief Operating Officer, President, and CEO of Northrim Bank (907) 261-3308 Latosha Frye, Chief Financial Officer (907) 261-8763

Source:Northrim BanCorp, Inc.