UNITED STATES SECURITIES AND EXCHANGE COMMISSION ☐ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from_____to____ WASHINGTON, DC 20549 FORM 10-K (Mark One) ☑ Annual report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the fiscal year ended December 31, 2023 Commission File Number 000-33501 NORTHRIM BANCORP, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation ...

Financial Performance - The Company reported net income of $8.4 million and earnings per diluted share of $1.48 for Q3 2023, down from $10.1 million and $1.76 in Q3 2022[126]. - For the first nine months of 2023, net income was $18.8 million and earnings per diluted share were $3.30, compared to $22.1 million and $3.79 in the same period of 2022[126]. - Net income for Q3 2023 decreased by $1.8 million to $8.4 million compared to $10.1 million in Q3 2022, primarily due to a $1.5 million increase in the provision for credit losses[132]. - For the first nine months of 2023, net income decreased by $3.4 million to $18.8 million from $22.1 million in the same period of 2022, mainly due to a decrease in mortgage banking income and an increase in the provision for credit losses[133]. Interest Income and Expenses - Net interest income increased 13% to $76.5 million in the first nine months of 2023, up from $67.8 million in the same period of 2022[128]. - Total interest income for the three months ended September 30, 2023, increased by $6,849,000, with contributions of $1,871,000 from volume and $4,978,000 from rate changes compared to the same period in 2022[140]. - Total interest expense for the three months ended September 30, 2023, increased by $6,810,000, with $754,000 from volume and $6,056,000 from rate changes compared to the same period in 2022[140]. - Net interest income for the nine months ended September 30, 2023, increased by $8,697,000, or 13%, to $76,524,000 compared to $67,827,000 for the same period in 2022[142]. - Total interest income for the nine months ended September 30, 2023, increased by $25,414,000, with $5,260,000 from volume and $20,154,000 from rate changes compared to the same period in 2022[144]. - Total interest expense for the nine months ended September 30, 2023, increased by $16,717,000, with $1,144,000 from volume and $15,573,000 from rate changes compared to the same period in 2022[144]. Loans and Deposits - Loans totaled $1.72 billion at September 30, 2023, representing a 14% increase from December 31, 2022, primarily due to commercial and consumer mortgage loan growth[128]. - Total deposits were $2.43 billion at September 30, 2023, a 2% increase from December 31, 2022[128]. - Loans increased by $218.3 million, or 15%, to $1.720 billion at September 30, 2023, primarily due to increased commercial and consumer mortgage loans[154]. - Total deposits increased by $40.7 million, or 2%, to $2.428 billion as of September 30, 2023, compared to $2.387 billion at December 31, 2022[158]. - Uninsured deposits totaled $999.5 million, or 41% of total deposits, as of September 30, 2023, down from $1.1 billion, or 46%, at December 31, 2022[160]. Credit Quality - Nonperforming loans decreased by 20% to $5.1 million as of September 30, 2023, from $6.4 million at December 31, 2022[129]. - Potential problem loans increased to $2.2 million as of September 30, 2023, from $1.6 million at December 31, 2022, primarily due to increased line of credit usage[131]. - The Company’s allowance for credit losses (ACL) increased to $16.491 million as of September 30, 2023, from $11.982 million at the end of Q3 2022[157]. - Provision for credit loss expense for the three months ended September 30, 2023, was $1,190,000, compared to a benefit of $353,000 for the same period in 2022[145]. Operating Expenses - Other operating income for the three months ended September 30, 2023, decreased by $670,000, or 8%, to $8,000,000 compared to $8,700,000 for the same period in 2022[146]. - Other operating expense for the three months ended September 30, 2023, increased by $610,000, or 3%, to $22,900,000 compared to $22,300,000 for the same period in 2022[148]. - Other operating income for the nine months ended September 30, 2023, decreased by $7,400,000, or 27%, to $19,900,000 compared to $27,300,000 for the same period in 2022[147]. Capital and Shareholder Returns - The dividend payout ratio increased to 40.40% in Q3 2023, compared to 28.23% in Q3 2022[127]. - The Company has 10.0 million authorized shares of common stock, with 5.5 million issued and outstanding, leaving 4.5 million shares available for issuance[165]. - The Company repurchased 152,887 shares of its common stock in the first nine months of 2023, with 132,113 shares remaining under the repurchase program[171]. - Northrim recorded a lower effective tax rate of 18.43% in Q3 2023 compared to 22.41% in Q3 2022, with tax expense decreasing from $2.9 million to $1.9 million[150]. Liquidity and Investments - The Company had cash and cash equivalents of $111.2 million, representing 4% of total assets, down from $259.4 million or 10% of total assets at December 31, 2022[168]. - The Company’s liquid assets, including investments and loans maturing within a year, totaled $517.8 million as of September 30, 2023[169]. - The average estimated duration of the investment portfolio was approximately 2.8 years as of September 30, 2023, with $308.9 million scheduled to mature in the next year[152]. - The Company has access to additional liquidity sources, including borrowings through correspondent banking relationships and credit lines with the Federal Reserve Bank and the FHLB[169]. Branch Expansion - The Company opened its 19th branch in Kodiak in the first quarter of 2023, contributing to increased salaries and personnel expenses[149].

Part I [Financial Statements (unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(unaudited)) The company's financial statements reflect a slight asset decrease, loan growth, and mixed income results influenced by net interest income and mortgage banking [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) Total assets slightly decreased to $2.64 billion, while net loans grew 10.5% to $1.64 billion, funded by reduced deposits and increased borrowings Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2023 | December 31, 2022 | Change | Change (%) | | :--- | :--- | :--- | :--- | :--- | | **Total Assets** | **$2,638,207** | **$2,674,318** | **($36,111)** | **-1.4%** | | Net Loans | $1,643,594 | $1,487,947 | $155,647 | 10.5% | | Investment Securities (AFS & HTM) | $707,889 | $713,779 | ($5,890) | -0.8% | | Total Deposits | $2,302,311 | $2,387,211 | ($84,900) | -3.6% | | Borrowings | $64,887 | $14,095 | $50,792 | 360.4% | | Total Shareholders' Equity | $221,336 | $218,629 | $2,707 | 1.2% | [Consolidated Statements of Income](index=6&type=section&id=Consolidated%20Statements%20of%20Income) Q2 2023 net income rose to $5.6 million due to higher net interest income, while YTD net income decreased to $10.4 million from lower mortgage banking income Income Statement Summary (in thousands, except per share data) | Metric | Q2 2023 | Q2 2022 | YTD 2023 | YTD 2022 | | :--- | :--- | :--- | :--- | :--- | | Net Interest Income | $25,142 | $22,212 | $50,174 | $41,516 | | Provision for credit losses | $1,407 | $463 | $1,767 | $313 | | Mortgage banking income | $3,913 | $5,900 | $5,921 | $12,882 | | **Net Income** | **$5,577** | **$4,795** | **$10,407** | **$12,021** | | **Earnings Per Share, Diluted** | **$0.98** | **$0.83** | **$1.82** | **$2.03** | [Consolidated Statements of Cash Flows](index=10&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash and equivalents decreased by $222.6 million, with cash used in operations, investing, and financing activities primarily for loan growth and deposit outflows Six Months Ended June 30, 2023 Cash Flow Summary (in thousands) | Activity | 2023 | 2022 | | :--- | :--- | :--- | | Net Cash (Used) Provided by Operating Activities | ($22,519) | $15,309 | | Net Cash (Used) by Investing Activities | ($155,329) | ($218,820) | | Net Cash Used by Financing Activities | ($44,750) | ($105,393) | | **Net Change in Cash and Cash Equivalents** | **($222,598)** | **($308,904)** | [Notes to the Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) Notes detail accounting policies, including ASU 2022-02 adoption, investment portfolio unrealized losses, loan portfolio growth, and segment performance - The company adopted **ASU 2022-02**, which eliminates the accounting guidance for troubled debt restructurings (TDRs) and enhances disclosure requirements for loan modifications to borrowers experiencing financial difficulty; the adoption did **not have a material impact**[29](index=29&type=chunk) - The investment portfolio held available-for-sale securities with gross unrealized losses of **$38.4 million** as of June 30, 2023; management believes these losses are due to **noncredit-related factors**, primarily interest rate changes, and has **not recognized any credit losses**[33](index=33&type=chunk)[36](index=36&type=chunk) - Total loans held for investment grew to **$1.66 billion**; the Allowance for Credit Losses (ACL) for these loans was **$15.6 million**, or **0.94%** of the total loan portfolio[41](index=41&type=chunk) - The Community Banking segment generated **$12.9 million** in net income for the first six months of 2023, while the Home Mortgage Lending segment incurred a **net loss of $2.5 million**, a significant decline from a **$0.6 million profit** in the prior-year period[108](index=108&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=40&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q2 2023 net income growth driven by net interest income, stable Alaskan economy, solid financial condition, and strong liquidity and capital - Alaska's economy is improving, with the seasonally adjusted unemployment rate at **3.6%** in May 2023, below the U.S. average; job growth was led by the **Leisure and Hospitality** sector[113](index=113&type=chunk)[114](index=114&type=chunk) - Q2 2023 net income rose to **$5.6 million**, driven by a **13% increase** in net interest income to **$25.1 million**; net interest margin expanded by **47 basis points** to **4.14%** compared to Q2 2022[123](index=123&type=chunk)[124](index=124&type=chunk) - Loans grew **10%** to **$1.66 billion** since year-end 2022, while deposits decreased **4%** to **$2.30 billion** over the same period[124](index=124&type=chunk) [Results of Operations](index=43&type=section&id=Results%20of%20Operations) H1 2023 net income decreased to $10.4 million due to lower mortgage banking income and higher credit loss provisions, partially offset by increased net interest income Key Performance Ratios | Ratio | Q2 2023 | Q2 2022 | YTD 2023 | YTD 2022 | | :--- | :--- | :--- | :--- | :--- | | Return on average assets, annualized | 0.85 % | 0.74 % | 0.81 % | 0.93 % | | Return on average shareholders' equity, annualized | 9.85 % | 8.58 % | 9.30 % | 10.51 % | - Net interest margin (NIM) for Q2 2023 increased by **47 basis points** to **4.14%** compared to Q2 2022, primarily due to higher yields on earning assets outpacing the rise in deposit costs[131](index=131&type=chunk)[133](index=133&type=chunk) - The provision for credit losses increased to **$1.8 million** for the first six months of 2023, up from **$0.3 million** in the prior-year period, reflecting loan growth and changes in economic forecasts under CECL[142](index=142&type=chunk) - Other operating income for H1 2023 decreased **36%** to **$11.9 million**, mainly due to a **$7.0 million** drop in mortgage banking income from lower production volume caused by rising interest rates; the prior year period also included a one-time **$2.0 million** life insurance proceed[144](index=144&type=chunk) [Financial Condition](index=50&type=section&id=Financial%20Condition) The company's financial condition shows 10% loan growth to $1.66 billion, funded by a 4% deposit decrease and increased borrowings, with strong credit quality - The loan portfolio grew by **$157.5 million** (**10%**) in the first six months of 2023, with commercial & industrial loans and 1-4 family residential properties showing notable increases[151](index=151&type=chunk) - Nonperforming assets, net of government guarantees, decreased to **$5.6 million** at June 30, 2023, from **$6.4 million** at December 31, 2022[125](index=125&type=chunk) - Total deposits decreased by **$84.9 million** (**4%**) to **$2.30 billion**, with a notable shift from demand and savings accounts into higher-yielding time deposits[155](index=155&type=chunk) - Uninsured deposits totaled **$910.7 million**, representing **40%** of total deposits as of June 30, 2023, down from **46%** at year-end 2022[157](index=157&type=chunk) [Liquidity and Capital Resources](index=54&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains robust liquidity with $442.9 million in liquid assets and $1.224 billion in borrowing capacity, exceeding all 'well-capitalized' regulatory capital ratios - The company has strong liquidity sources, including **$442.9 million** in liquid assets maturing within a year and **$1.224 billion** in available borrowing lines from the FHLB and Federal Reserve[165](index=165&type=chunk) Capital Ratios as of June 30, 2023 | Ratio | Minimum Required | Well Capitalized | Company Actual | Bank Actual | | :--- | :--- | :--- | :--- | :--- | | Total risk-based capital | 8.00% | 10.00% | 13.02% | 11.16% | | Tier 1 risk-based capital | 6.00% | 8.00% | 12.13% | 10.26% | | Common equity tier 1 capital | 4.50% | 6.50% | 11.64% | 10.27% | | Leverage ratio | 4.00% | 5.00% | 9.28% | 7.83% | - The company repurchased **89,887 shares** of its common stock in the first six months of 2023; as of June 30, 2023, **195,113 shares** remain authorized for repurchase[167](index=167&type=chunk)[181](index=181&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=56&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes in market risk disclosures were identified from the prior annual report as of June 30, 2023 - There have been **no material changes** in the company's market risk profile since the end of 2022[173](index=173&type=chunk) [Controls and Procedures](index=57&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective, with no material changes to internal control over financial reporting during Q2 2023 - The principal executive and financial officers concluded that disclosure controls and procedures were **effective** as of June 30, 2023[174](index=174&type=chunk) - **No material changes** to the internal control over financial reporting occurred during the second quarter of 2023[175](index=175&type=chunk) Part II [Legal Proceedings](index=57&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in routine legal actions not expected to materially impact its financial condition or results of operations - The company is party to various routine debtor-creditor legal actions, which are **not expected to have a material impact** on its financial position[177](index=177&type=chunk) [Risk Factors](index=57&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the company's risk factors were identified from the prior annual report as of June 30, 2023 - Risk factors have **not changed materially** as of June 30, 2023, from what was reported in the 2022 Form 10-K[178](index=178&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=57&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased 62,000 shares in Q2 2023 at an average of $40.30, with 195,113 shares remaining for repurchase Share Repurchases in Q2 2023 | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | April 2023 | 19,000 | $44.34 | | May 2023 | 22,000 | $37.10 | | June 2023 | 21,000 | $40.09 | | **Total Q2** | **62,000** | **$40.30** | - As of June 30, 2023, **195,113 shares** remain available for repurchase under the company's publicly announced plan[181](index=181&type=chunk)

For the quarterly period ended March 31, 2023 ☐ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from_____to____ Commission File Number 000-33501 NORTHRIM BANCORP, INC. (Exact name of registrant as specified in its charter) Alaska 92-0175752 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☑ Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 (State or other jurisdi ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-K (Mark One) ☑ Annual report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the fiscal year ended December 31, 2022 ☐ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from_____to____ Commission File Number 000-33501 NORTHRIM BANCORP, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☑ Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended September 30, 2022 ☐ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from_____to____ Commission File Number 000-33501 NORTHRIM BANCORP, INC. (Exact name of registrant as specified in its charter) Alaska 92-0175752 (State or other jur ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☑ Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended June 30, 2022 ☐ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from_____to____ Commission File Number 000-33501 NORTHRIM BANCORP, INC. (Exact name of registrant as specified in its charter) Alaska 92-0175752 (State or other jurisdic ...

Financial Performance - The Company reported net income of $7.2 million and diluted earnings per share of $1.20 for Q1 2022, down from $12.2 million and $1.94 in Q1 2021, primarily due to decreased production in the Home Mortgage Lending segment [127]. - Total revenue decreased 15% to $30.1 million in Q1 2022 from $35.4 million in Q1 2021, mainly due to a $6.6 million decrease in mortgage banking income [130]. - Net income for the first quarter of 2022 decreased by $5.0 million to $7.2 million compared to $12.2 million for the same period in 2021 [138]. - Other operating income decreased by $5.1 million, or 32%, to $10.8 million, primarily due to a $6.6 million decrease in mortgage banking income [149]. Interest Income and Expenses - Net interest income for Q1 2022 was $19.3 million, a 1% decrease from $19.5 million in Q1 2021, while net interest income excluding PPP increased 11% to $17.0 million [130]. - Net interest margin decreased by 72 basis points to 3.18% in the first quarter of 2022 compared to 3.90% in the first quarter of 2021 [140]. - Total interest income decreased by $538,000, with a $1,470,000 decrease due to volume and a $932,000 increase due to rate changes [147]. - Interest income from interest-bearing deposits in other banks increased by 346% to $242,000 compared to $38,000 in the same period last year [145]. Loan and Deposit Activity - Loans totaled $1.38 billion at March 31, 2022, down 3% from December 31, 2021, with core portfolio loans excluding PPP increasing 1% to $1.31 billion [130]. - Total loans decreased by $36.5 million, or 2.6%, to $1.377 billion as of March 31, 2022, from $1.414 billion at December 31, 2021, primarily due to decreased SBA PPP loans [154]. - Total deposits decreased by $78.6 million, or 3%, to $2.343 billion as of March 31, 2022, from $2.422 billion at December 31, 2021 [160]. - Demand deposits represented 35% of total deposits at March 31, 2022, down from 37% at December 31, 2021 [160]. Capital and Regulatory Ratios - The capital ratios of the Company and Northrim Bank were well above all regulatory requirements as of March 31, 2022 [130]. - As of March 31, 2022, the Company maintained a total risk-based capital ratio of 14.37%, exceeding the minimum required of 8.00% [174]. - The Tier 1 risk-based capital ratio was reported at 13.64%, above the required minimum of 6.00% [174]. - The Company’s leverage ratio stood at 9.00%, surpassing the minimum requirement of 4.00% [174]. Stock Repurchase and Shareholder Returns - The Company repurchased 133,105 shares of common stock at an average price of $44.50 per share during Q1 2022, with 200,619 shares remaining for repurchase [130]. - The Company repurchased 133,105 shares of its common stock in the first three months of 2022 under its repurchase program [171]. Loan Forgiveness and Modifications - As of March 31, 2022, 99% of PPP round one and 74% of PPP round two loans have been forgiven, totaling $548.3 million [131]. - The total outstanding principal balance of loan modifications due to COVID-19 was $45.1 million as of March 31, 2022, with 81% scheduled to return to normal payments by the end of Q2 2022 [132]. - The company received $56.9 million in loan forgiveness through the SBA in the first quarter of 2022, down from $105.0 million in the same period of 2021 [141]. Asset Quality - Nonperforming assets decreased by 13%, or $2.0 million, to $13.1 million as of March 31, 2022, compared to $15.0 million at December 31, 2021 [133]. - Nonperforming loans, net of government guarantees, decreased by $2.0 million, or 18%, to $8.7 million as of March 31, 2022, from $10.7 million as of December 31, 2021 [135]. - Potential problem loans decreased to $1.7 million as of March 31, 2022, from $2.1 million at December 31, 2021 [136]. - The Company had $10.0 million in troubled debt restructurings (TDRs) at March 31, 2022, compared to $7.3 million at December 31, 2021 [137]. Cash and Liquid Assets - As of March 31, 2022, the Company had cash and cash equivalents of $532.8 million, representing 20% of total assets, down from $645.8 million or 24% as of December 31, 2021 [168]. - Liquid assets totaled $787.0 million, with available borrowing under existing lines of credit at $1.233 billion as of March 31, 2022 [169]. Economic Indicators - Alaska's Gross State Product (GSP) for Q4 2021 was $58 billion, reflecting a 3% increase, with an overall annual growth of 0.3% in 2021 [120].

Financial Performance - Net income attributable to the Company increased 14% to $37.5 million or $6.00 per diluted share for the year ended December 31, 2021, compared to $32.9 million or $5.11 per diluted share for the year ended December 31, 2020[192]. - Net income in the Community Banking segment increased 74% or $11.6 million to $27.2 million in 2021, primarily due to a $7.3 million increase in interest and fee income on PPP loans[193]. - Net income in the Home Mortgage Lending segment decreased 40% or $7.0 million to $10.3 million in 2021, primarily due to a decrease in production volume to $1.118 billion from $1.295 billion in 2020[193]. - Net income for 2021 was $37.5 million, an increase from $32.9 million in 2020, with diluted earnings per share rising to $6.00 from $5.11[212]. Interest Income and Margin - Interest and fee income on PPP loans rose to $15.4 million in 2021 from $8.1 million in 2020, with $426.3 million in PPP loans forgiven in 2021 compared to $65.1 million in 2020[193]. - The net interest margin decreased to 3.58% in 2021 from 4.02% in 2020, attributed to lower average yields on interest-earning assets[198]. - Net interest income for 2021 was $80.83 million, an increase from $70.67 million in 2020, reflecting a growth of approximately 15.3%[209]. - Net interest income increased to $80.8 million in 2021 from $70.7 million in 2020, primarily due to a $7.3 million rise in interest and fee income on PPP loans[214]. - Interest income on PPP loans was $2.9 million in 2021, up from $2.5 million in 2020, while loan fee income on PPP loans surged to $12.5 million from $5.6 million[214]. Credit Losses and Provisions - The provision for credit losses decreased to a benefit of $4.1 million in 2021 from a provision of $2.4 million in 2020, reflecting improved economic assumptions[193]. - The provision for credit loss expense in 2021 was a reversal of $4.1 million, compared to an expense of $2.4 million in 2020, reflecting improved economic assumptions[219]. - The allowance for credit losses totaled 0.83% of total portfolio loans at December 31, 2021, compared to 1.46% at December 31, 2020[193]. - The allowance for credit losses (ACL) was $11.7 million, or 0.83% of portfolio loans, as of December 31, 2021, reflecting the current credit quality and economic conditions[249]. Shareholder Equity and Dividends - The aggregate cash dividends paid by the Company in 2021 rose 6% to $9.4 million from $8.8 million in 2020[198]. - Total shareholders' equity rose to $237.82 million in 2021 from $221.58 million in 2020, marking a growth of 7.3%[207]. - Tangible book value per share increased to $36.88 in 2021 from $32.88 in 2020, reflecting a growth of 12.2%[207]. Operational Efficiency - The efficiency ratio improved to 66.99% in 2021 from 66.47% in 2020, indicating enhanced operational efficiency[210]. - Return on average assets decreased to 1.54% in 2021 from 1.70% in 2020, while return on average equity slightly increased to 15.68% from 15.53%[208]. Loan and Deposit Growth - Total loans amounted to $1,413,886 thousand as of December 31, 2021, reflecting an 8% growth rate over five years[238]. - Loans excluding PPP loans reached $1,295,657 thousand, with a 14% year-over-year increase[238]. - Total deposits increased by 33% to $2.4 billion at December 31, 2021, up from $1.8 billion at December 31, 2020, largely due to funding PPP loans and new client relationships[254]. - Average total deposits for 2021 were $2,125.1 million, compared to $1,638.2 million in 2020[256]. Investment and Liquidity - Investment securities increased by 71% to $455.1 million in 2021 from $266.7 million in 2020, reflecting a strategy to maintain liquidity and mitigate risks[230]. - As of December 31, 2021, the Company had cash and cash equivalents of $645.8 million, representing 24% of total assets, up from $116.0 million (6% of total assets) as of December 31, 2020[265]. - The Company has liquid assets totaling $907.9 million and available borrowing capacity of $1.27 billion as of December 31, 2021[267]. Interest Rate Risk - The company is exposed to interest rate risk, with key sources including re-pricing risk, basis risk, yield curve risk, and option risk[295][296][297]. - The estimated impact on net interest income for a 400 basis points increase in interest rates is $22,226, representing a 31.06% change in the first year[307]. - A 100 basis points increase in interest rates is anticipated to result in a net interest income change of $5,590, or 7.81% in the first year[307]. Other Operating Income and Expenses - Other operating income decreased by 17% to $52.3 million in 2021 from $63.3 million in 2020, with mortgage banking income being the largest component at 81% of total other operating income[221][223]. - Total other operating expenses increased by less than 1% to $89.2 million in 2021, with significant increases in data processing (12%), occupancy (7%), and insurance expenses (30%)[226][227].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☑ Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended September 30, 2021 ☐ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from_____to____ Commission File Number 000-33501 NORTHRIM BANCORP, INC. (Exact name of registrant as specified in its charter) Alaska 92-0175752 (State or other jur ...