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, 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 (State or other jurisdic ...

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 ...

Economic Performance - Alaska's real Gross State Product (GSP) was $52.1 billion in 2020, a decrease of 4.9% from $54.7 billion in 2019[163]. - Alaska's personal income for 2020 was $47.4 billion, a 3.1% increase from $46 billion in 2019, while U.S. personal income increased by 6.1%[164]. - The Alaska economy began to recover in Q4 2020, with GSP growth continuing at an annualized rate of 5.4% in Q1 2021[161]. Employment and Job Market - Total payroll jobs in Alaska grew by 16,500 from May 2020, representing a 5.7% improvement over the prior 12 months[162]. - The Oil and Gas sector saw a decline of 1,400 jobs to 6,100 in May 2021, marking the only major sector with fewer jobs than in May 2020[162]. Real Estate Market - The average sales price of a single-family home in Anchorage rose by 5.9% in 2020 to $396,779, with a further increase of 8% in the first six months of 2021 compared to the 2020 average[169]. - In 2020, home sales in Anchorage increased by 19.5% to 3,250 units sold, while Matanuska Susitna Borough saw a 9.7% increase to 2,135 units sold[170][171]. Mortgage and Foreclosure Trends - The foreclosure rate in Alaska improved from 0.63% at the end of 2019 to 0.45% at the end of 2020, with a further decline to 0.41% in Q1 2021[167]. - The percentage of delinquent mortgage loans in Alaska increased from 2.9% at the end of 2019 to 6.2% at the end of 2020, but improved to 5.4% in Q1 2021[168]. Financial Performance - As of June 30, 2021, the company reported net income of $8.3 million and diluted earnings per share of $1.33 for Q2 2021, compared to $9.9 million and $1.52 for Q2 2020[177]. - Total revenue for Q2 2021 decreased by 5% to $33.3 million, primarily due to a $3.9 million decrease in mortgage banking income[178]. - Net income for Q2 2021 decreased by $1.6 million to $8.3 million compared to $9.9 million in Q2 2020, primarily due to a $2.3 million decrease in the Home Mortgage Lending segment[182]. - For the first six months of 2021, net income increased by $9.6 million to $20.5 million compared to $10.9 million in the same period of 2020, driven by a $7.0 million increase in the Community Banking segment[183]. Loan and Deposit Trends - Average loans increased by 15% to $1.54 billion in Q2 2021 compared to $1.34 billion in Q2 2020[185]. - Total deposits increased by $321.5 million, or 18%, to $2.146 billion as of June 30, 2021, driven by funding PPP loans and new customer relationships[205]. - Demand deposits rose to $798.2 million, representing 37% of total deposits as of June 30, 2021, up from 35% at December 31, 2020[205]. Government Assistance and PPP Loans - The company funded nearly 5,800 PPP loans totaling $612.6 million, with 745 loans totaling $33 million originated in Q2 2021[176]. - The company received $133.0 million and $238 million in loan forgiveness through the SBA during the three and six-month periods ending June 30, 2021, respectively[184]. Capital and Credit Quality - The total risk-based capital ratio for the Company as of June 30, 2021, was 15.45%, exceeding the minimum requirement of 8.00%[219]. - The Company’s Tier 1 risk-based capital ratio was 14.54% as of June 30, 2021, above the required 6.00%[219]. - The allowance for credit losses (ACL) related to loans with exposure to directly impacted industries was estimated at $4.1 million as of June 30, 2021[203]. Cash Flow and Investments - Net cash provided by operating activities for the first six months of 2021 was $68.5 million, primarily from loan sales[213]. - Net cash used by investing activities during the same period was $152.0 million, mainly due to purchases of available-for-sale securities[213]. - Portfolio investments increased by 38%, or $100.1 million, to $366.8 million as of June 30, 2021, from $266.7 million at December 31, 2020[196].

Economic Performance - In 2020, Alaska's Gross State Product (GSP) was $52.1 billion, a decline of 4.9% from $54.7 billion in 2019, with the U.S. GDP declining by 3.5%[162]. - The unemployment rate in Alaska saw a 7% reduction in total payroll jobs, equating to a loss of 22,300 jobs compared to February 2020, with the leisure and hospitality sector down 23% year over year[161]. - Alaska's personal income for 2020 was $47.4 billion, an increase of 3.1% from $46 billion in 2019, while U.S. personal income rose by 6.1%[163]. - The average price of Alaska North Slope crude oil fell to a low of $16.54 per barrel in April 2020 but stabilized to an average of $55.56 in January 2021[166]. - Alaska's crude oil production averaged 485,300 barrels per day in FY 2020, a decrease of 4.8% from the previous fiscal year, with a forecasted increase to 488,900 bpd in FY 2021[167]. - The foreclosure rate in Alaska was 0.45% at the end of 2020, an improvement from 0.63% at the end of 2019, compared to a national average of 0.56%[168]. - Government transfer payments in Alaska rose by 24.2% or $1.9 billion over 2019 levels, significantly contributing to personal income growth[164]. Company Financial Performance - The company reported net income of $12.2 million and diluted earnings per share of $1.94 for Q1 2021, a significant increase from $1.0 million and $0.16 in Q1 2020[177]. - Total revenue for Q1 2021 increased by 60% to $35.4 million, up from $22.1 million in the same period last year, primarily driven by a $9.0 million increase in mortgage banking income[180]. - Net income for Q1 2021 increased by $11.1 million to $12.2 million compared to $1.0 million in Q1 2020[184]. - Net interest income rose by $3.8 million, or 24%, to $19.5 million in Q1 2021 from $15.7 million in Q1 2020[185]. - Other operating income increased by $9.5 million, or 147%, to $15.9 million in Q1 2021 compared to $6.4 million in Q1 2020, driven by a $9.0 million increase in mortgage banking income[191]. - Other operating expenses rose by $2.5 million, or 14%, to $21.3 million in Q1 2021, primarily due to higher salaries and personnel expenses[192]. - The provision for income taxes increased by $3.1 million, or 1,286%, in Q1 2021 compared to Q1 2020, with an effective tax rate of 22%[193]. Credit and Loan Performance - Nonperforming assets increased by $3.2 million, or 20%, to $19.5 million as of March 31, 2021, compared to $16.3 million at December 31, 2020[179]. - The company recorded a benefit for credit losses of $1.5 million for Q1 2021, compared to a provision of $2.1 million in Q1 2020[180]. - Total credit loss expense decreased to ($1.5 million) in Q1 2021 from $2.1 million in Q1 2020, reflecting improved economic assumptions[190]. - Total loans increased by $104.9 million, or 7%, to $1.549 billion as of March 31, 2021, from $1.444 billion at December 31, 2020, primarily due to increased commercial loans from SBA PPP participation[196]. - The company estimates that $64.7 million, or approximately 4% of loans, had direct exposure to the oil and gas industry as of March 31, 2021, compared to $65.1 million, or approximately 4%, as of December 31, 2020[198]. - The company’s exposure to the tourism sector was $80.0 million, or 5% of portfolio loans, as of March 31, 2021[199]. - The company’s total charge-offs for the three months ended March 31, 2021, were $163,000, while recoveries were $207,000, resulting in net recoveries of $(44,000)[201]. Capital and Funding - The capital ratios of the company were well in excess of all regulatory requirements as of March 31, 2021[177]. - Total risk-based capital ratio was 15.50% and Tier 1 risk-based capital ratio was 14.55% as of March 31, 2021, exceeding regulatory requirements[216]. - The allowance for credit losses (ACL) decreased to $14.764 million as of March 31, 2021, from $21.017 million as of March 31, 2020[201]. - The company had total unfunded commitments to fund loans and letters of credit of $375.7 million as of March 31, 2021[209]. - The company had outstanding advances of $14.7 million from the Federal Home Loan Bank as of March 31, 2021, used to match fund low-income housing projects[204]. - The company's commitments to extend credit and provide letters of credit amounted to $375.7 million as of March 31, 2021[217]. - Commitments to originate loans held for sale were $181.4 million as of March 31, 2021[217]. Cash Flow and Investments - Net cash provided by operating activities was $44.6 million for the first three months of 2021, primarily from loan sales[210]. - Net cash used by investing activities was $178.7 million, mainly due to increases in loans, particularly PPP loans[210]. - Net cash provided by financing activities was $221.8 million, largely due to increases in deposits from funding PPP loans[210]. - As of March 31, 2021, the company had $1.116 billion available for borrowing under existing lines of credit[211]. - The company had $349.9 million in PPP loans eligible for the PPPLF program as of March 31, 2021[211]. Market and Risk Disclosures - The Company implemented ASU 2016-13, which updated the Allowance for Credit Losses Policy, reflecting a shift in credit loss estimation methodology[152]. - The Company anticipates potential impacts from COVID-19 on credit quality and business operations, highlighting the inherent uncertainties in forward-looking statements[151]. - The company’s critical accounting policies include the valuation of goodwill and other intangible assets, with no material changes in valuation techniques during 2021[152]. - There were no material changes in market risk disclosures from the previous annual report as of March 31, 2021[219]. - The company's mix of deposits includes 91% in transaction accounts as of March 31, 2021, contributing to a low cost of funds[202]. - Capital commitments related to branch remodel and relocation in Anchorage are considered immaterial[218].