Northrim Banp(NRIM) - 2024 Q1 - Quarterly Results

Financial Performance - Northrim BanCorp reported net income of $8.2 million, or$ 1.48 per diluted share, in Q1 2024, up from $6.6 million, or$ 1.19 per diluted share, in Q4 2023, and $4.8 million, or$ 0.84 per diluted share, in Q1 2023[1]. - Northrim reported net income of $8.2 million, or$ 1.48 per diluted share for Q1 2024, compared to $7.16 million, or$ 1.29 per diluted share, in Q4 2023[25]. - Total interest income for Q1 2024 was $35.8 million, up from$ 29.8 million in Q1 2023, reflecting a 20% year-over-year growth[55]. - The bank's net interest income after provision for credit losses was $26.3 million, an increase from$ 24.7 million in the same quarter last year, marking a 6.6% year-over-year increase[55]. - The efficiency ratio improved to 68.93% in Q1 2024 from 72.21% in Q4 2023, indicating better operational efficiency[7]. - Return on average assets (ROAA) was 1.19% and return on average equity (ROAE) was 13.84% for Q1 2024, compared to 0.93% and 11.36% in Q4 2023[18]. - The net change in fair value of mortgage servicing rights decreased mortgage banking income by $25,000 in Q1 2024, compared to a decrease of$ 1.0 million in Q4 2023[33]. - The bank's mortgage banking income rose to $4.03 million in Q1 2024, compared to$ 2.01 million in Q1 2023, representing a 100% increase year-over-year[55]. Loan and Deposit Metrics - Total portfolio loans reached $1.81 billion at March 31, 2024, up 1% from the previous quarter and up 18% year-over-year[9]. - Total deposits were$ 2.43 billion at March 31, 2024, down 2% from the previous quarter but up 6% from $2.30 billion a year ago[9]. - The loan-to-deposit ratio increased to 74% at March 31, 2024, from 72% at December 31, 2023, and 67% at March 31, 2023[36]. - Approximately 32% of loans are set to mature or reprice in the next three months, indicating potential changes in interest income[43]. - Mortgage loans funded for sale increased to$ 84.3 million in Q1 2024, compared to $79.7 million in Q4 2023 and$ 50.7 million in Q1 2023[30]. - The average interest-bearing deposits increased to $1.73 billion with an average cost of 2.13% in Q1 2024, compared to$ 1.72 billion and 2.00% in Q4 2023[44]. Asset Quality - Nonperforming loans increased to $5.3 million at March 31, 2024, from$ 5.0 million at December 31, 2023, but decreased from $6.1 million a year ago[22]. - Nonperforming loans decreased to$ 5.26 million, down from $6.07 million in Q4 2023, showing a 13% improvement in asset quality[59]. - The allowance for credit losses as a percentage of portfolio loans remained stable at 0.97% as of March 31, 2024[59]. - Northrim recorded a provision for credit losses of$ 149,000 in Q1 2024, significantly lower than $885,000 in Q4 2023 and$ 360,000 in Q1 2023[21]. - Net adversely classified loans were $7.2 million at March 31, 2024, unchanged from a year ago, with net loan recoveries of$ 42,000 in Q1 2024[48]. Shareholder Equity - Shareholders' equity increased to $239.3 million, or$ 43.52 book value per share, at March 31, 2024, compared to $234.7 million at December 31, 2023[46]. - Total shareholders' equity increased to$ 239,327 million as of March 31, 2024, compared to $234,718 million in 2023, and$ 224,425 million in March 2023, reflecting a year-over-year growth of 6.6%[71]. - The ratio of total shareholders' equity to total assets improved to 8.67% as of March 31, 2024, compared to 8.36% in 2023, but slightly decreased from 8.70% in March 2023[71]. - The tangible common equity ratio increased to 8.14% in Q1 2024 from 7.84% in Q4 2023[68]. Market Presence and Operations - A new branch was opened in Homer, Alaska, to expand market presence following the success of a loan production office established in 2023[4]. - Northrim's deposit market share in Alaska grew to 15.04% as of June 30, 2023, up from 13.95% a year earlier, despite a total deposit decline of 8.5% in Alaska[26]. - Operating expenses decreased to $23.6 million in Q1 2024 from$ 24.0 million in Q4 2023 and $23.5 million in Q1 2023[24].