Northrim Banp(NRIM) - 2024 Q3 - Quarterly Results

Financial Performance - Northrim BanCorp reported net income of $8.8 million, or $1.57 per diluted share, in Q3 2024, a decrease from $9.0 million, or $1.62 per diluted share, in Q2 2024[1]. - Northrim BanCorp reported a net income of $8.8 million, or $1.57 per diluted share, for Q3 2024[40]. - Northrim BanCorp reported earnings of $8.8 million, or $1.57 per diluted share for Q3 2024[43]. - Northrim BanCorp reported a net income of $8.8 million, or $1.57 per diluted share, for Q3 2024[48]. Income and Revenue - Total interest income increased to $39.4 million in Q3 2024, up 14.5% from $34.4 million in Q3 2023[41]. - Net interest income increased by 7% to $28.8 million in Q3 2024 compared to $27.1 million in Q2 2024, and increased by 9% from $26.4 million in Q3 2023[2]. - Net interest income in the Community Banking segment totaled $25.9 million in Q3 2024, a 7% increase from $24.3 million in Q2 2024 and $24.1 million in Q3 2023[20]. - Net interest income after provision for credit losses was $26.8 million, compared to $25.2 million in the same quarter last year, reflecting a 6.4% year-over-year increase[41]. - Mortgage banking income rose to $7.0 million in Q3 2024, a 59.5% increase from $4.4 million in Q3 2023[41]. Deposits and Loans - Total deposits reached $2.63 billion at September 30, 2024, up 7% from the preceding quarter and up 8% from $2.43 billion a year ago[2]. - Portfolio loans were $2.01 billion at September 30, 2024, reflecting a 7% increase from the previous quarter and a 17% increase year-over-year[2]. - Total deposits grew to $2.63 billion at September 30, 2024, a 7% increase from $2.46 billion at June 30, 2024, and an 8% increase from $2.43 billion a year ago[34]. - Total portfolio loans increased to $2,007,565 thousand, up from $1,875,907 thousand in Q2 2024, representing a growth of 7%[43]. Asset Quality - The provision for credit losses was $2.1 million in Q3 2024, compared to a benefit of $120,000 in Q2 2024 and a provision of $1.2 million in Q3 2023[13]. - Nonperforming loans increased slightly to $5.0 million at September 30, 2024, compared to $4.8 million at June 30, 2024, but decreased from $5.1 million a year ago[14]. - Nonperforming assets (NPAs) were $5.3 million at September 30, 2024, slightly up from $5.1 million at June 30, 2024, and $5.2 million a year ago[36]. - The allowance for credit losses on loans was $19.5 million, up from $16.5 million a year ago, indicating a focus on maintaining asset quality[42]. Capital and Equity - Shareholders' equity increased to $260.1 million, or $47.27 book value per share, compared to $225.3 million, or $40.60 book value per share, a year ago[35]. - The company maintained a Tier 1 Capital to Risk Adjusted Assets ratio of 11.53% at September 30, 2024, indicating strong capital levels[35]. - The tangible common equity ratio improved to 8.28%, up from 7.54% in the same quarter last year[57]. - Total shareholders' equity reached $260.050 million, up from $225.259 million a year ago, representing an increase of 15.4%[55]. Operational Efficiency - Operating expenses increased to $26.7 million in Q3 2024, compared to $25.2 million in Q2 2024 and $22.9 million in Q3 2023, primarily due to higher salaries and personnel expenses[16]. - The efficiency ratio improved to 66.11% in Q3 2024, down from 66.64% in Q3 2023, showing enhanced operational efficiency[49]. Market Position - Deposit market share in Alaska increased to 15.66% as of June 30, 2024, up from 15.04% a year earlier, representing a growth of 62 basis points[19]. - Northrim estimates $82.0 million, or approximately 4% of portfolio loans, had direct exposure to the oil and gas industry in Alaska as of September 30, 2024[39]. Mortgage Activity - Mortgage loans funded for sale increased to $210.0 million in Q3 2024, compared to $152.3 million in Q2 2024 and $131.9 million in Q3 2023[23]. - Total mortgage loans funded reached $531.3 million in Q3 2024, up 28% from $415.6 million in Q3 2023, with mortgage loans funded for sale increasing by 51%[28]. - As of September 30, 2024, Northrim serviced 4,187 loans in its $1.17 billion home-mortgage-servicing portfolio, a 6% increase from Q2 2024 and a 19% increase from a year ago[26].