Northrim Banp(NRIM) - 2024 Q2 - Quarterly Results

Financial Performance - Northrim BanCorp reported net income of $9.0 million, or $1.62 per diluted share, in Q2 2024, an increase from $8.2 million, or $1.48 per diluted share, in Q1 2024, and $5.6 million, or $0.98 per diluted share, in Q2 2023[9]. - Northrim BanCorp reported earnings of $9.0 million, or $1.62 per diluted share for Q2 2024, compared to $7.7 million in Q2 2023[68]. - Net income for Q2 2024 was $9.02 million, an increase from $8.20 million in Q1 2024 and $5.58 million in Q2 2023[82]. - Return on average assets (ROAA) was 1.31% and return on average equity (ROAE) was 14.84% for Q2 2024, compared to 0.85% and 9.85% a year ago[41]. - Book value per share increased to $44.93 from $39.45 year-over-year, reflecting a growth of 14.3%[105]. - Total shareholders' equity reached $247.2 million, an increase from $221.3 million year-over-year[111]. Income and Revenue - Total interest income for Q2 2024 was $36.91 million, up from $35.81 million in Q1 2024 and $31.82 million in Q2 2023[89]. - Net interest income increased by 2% to $27.1 million in Q2 2024 compared to $26.4 million in Q1 2024, and by 8% compared to $25.1 million in Q2 2023[18]. - The net interest income for Q2 2024 was $27.1 million, up from $26.4 million in Q1 2024, representing a 2.3% increase[99]. - Other operating income contributed $9.6 million, or 26% of total revenues in Q2 2024, compared to 22% a year ago[44]. - Net interest income for the quarter was $53.5 million, up from $50.2 million in the previous year[107]. Asset and Loan Management - Total assets reached $2.82 billion as of June 30, 2024, up from $2.76 billion at the end of Q1 2024[12]. - Portfolio loans reached $1.88 billion at June 30, 2024, up 4% from the preceding quarter and up 13% year-over-year[36]. - Total mortgage loans funded increased to $283,241 thousand in Q2 2024, up 8% from $262,108 thousand in Q2 2023[32]. - Mortgage loans funded for sale increased significantly to $152.3 million in Q2 2024, compared to $84.3 million in Q1 2024 and $113.8 million in Q2 2023[28]. - Nonperforming loans decreased to $4.8 million at June 30, 2024, down from $5.3 million at March 31, 2024, and the same amount a year ago[20]. Deposits and Funding - Total deposits were $2.46 billion at June 30, 2024, reflecting a 7% increase from $2.30 billion a year ago[36]. - The bank's deposit market share in Alaska increased to 15.04% as of June 30, 2023, up from 13.95% a year earlier, despite an 8.5% decline in total deposits in Alaska[24]. - Average interest-bearing deposits rose to $1.73 billion with an average cost of 2.21% in Q2 2024, compared to $1.57 billion and 1.56% in Q2 2023, marking a 10% increase[81]. - Demand deposits decreased slightly to $704.5 million, accounting for 29% of total deposits as of June 30, 2024[92]. - Interest-bearing demand deposits rose to $906.0 million, representing 36% of total deposits[92]. Efficiency and Cost Management - The efficiency ratio improved to 68.78% in Q2 2024 from 68.93% in Q1 2024, indicating better cost management[12]. - Efficiency ratio improved to 68.78% from 74.03% year-over-year, indicating better cost management[105]. Capital and Equity - The tangible book value per share increased to $42.03 as of June 30, 2024, up from $40.61 in Q1 2024[101]. - The company maintained a Tier 1 Capital to Risk Adjusted Assets ratio of 11.68% as of June 30, 2024, compared to 11.55% in the previous quarter[82]. - Tangible common equity to tangible assets improved to 8.24% as of June 30, 2024, compared to 8.14% in the previous quarter and 7.83% a year ago[82]. - Tier 1 capital ratio increased to 11.68% from 12.13% year-over-year, showing a solid capital base[105]. Market and Economic Indicators - The Alaska Department of Labor reported a 2.9% increase in payroll jobs in Alaska from May 2023 to May 2024, indicating a positive employment trend[5]. - The average sales price for single-family homes in the Matanuska Susitna Borough rose 3.4% to $410,912 in the first six months of 2024[15].