Northrim Banp(NRIM) - 2025 Q1 - Quarterly Results

Financial Performance - Northrim BanCorp reported net income of $13.3 million, or $2.38 per diluted share, in Q1 2025, up from $10.9 million, or $1.95 per diluted share, in Q4 2024, and $8.2 million, or $1.48 per diluted share, in Q1 2024[1]. - Net interest income increased 1% to $31.3 million in Q1 2025 compared to $30.8 million in Q4 2024, and increased 18% from $26.4 million in Q1 2024[3]. - Return on average assets (ROAA) was 1.76% and return on average equity (ROAE) was 19.70% for Q1 2025, compared to 1.19% and 13.84% in Q1 2024[3]. - Net income for the first quarter of 2025 was $13.3 million, compared to $10.9 million in the fourth quarter of 2024, representing a 22.7% increase[64]. - Basic EPS for the first quarter of 2025 was $2.41, up from $1.99 in the previous quarter and $1.49 a year ago[64]. Deposits and Loans - Total deposits reached $2.78 billion at March 31, 2025, up 4% from the preceding quarter and up 14% from $2.43 billion a year ago[3]. - Portfolio loans were $2.12 billion at March 31, 2025, down slightly from the preceding quarter but up 17% from a year ago[3]. - Non-interest bearing demand deposits increased 5% from the preceding quarter to $742.6 million, representing 27% of total deposits[3]. - Average portfolio loans were $2.17 billion in Q1 2025, up 5% from the previous quarter and up 21% year-over-year[49]. - The loan-to-deposit ratio decreased to 76% at March 31, 2025, down from 79% at December 31, 2024[41]. Interest Income and Margin - Total interest income for the first quarter of 2025 was $41.6 million, compared to $41.8 million in the previous quarter and $35.8 million a year ago[64]. - NIMTE increased to 4.61% in Q1 2025, up from 4.47% in Q4 2024 and 4.22% in Q1 2024, driven by a favorable mix of earning-assets and lower deposit costs[18]. - Average yield on interest-earning assets was 6.10% in Q1 2025, up from 6.02% in Q4 2024[44]. - The net interest margin (NIM) improved to 4.55% for the quarter ended March 31, 2025, compared to 4.41% in the previous quarter[72]. Operating Expenses and Efficiency - Operating expenses were $29.3 million in Q1 2025, slightly down from $29.4 million in Q4 2024 and up from $23.6 million in Q1 2024[24]. - The efficiency ratio improved to 64.47% in Q1 2025 from 66.96% in Q4 2024[4]. - The cost of funds decreased to 1.52% for the quarter ended March 31, 2025, down from 1.59% in the previous quarter[70]. Nonperforming Loans and Credit Losses - Nonperforming loans increased to $8.0 million as of March 31, 2025, from $7.5 million at the end of Q4 2024 and $5.3 million a year ago[22]. - Provision for credit losses recorded a benefit of $1.4 million in Q1 2025, compared to a provision of $1.2 million in Q4 2024 and $149,000 in Q1 2024[19]. - Nonperforming assets (NPAs) rose to $12.3 million at March 31, 2025, up from $11.6 million at December 31, 2024, and $5.4 million a year ago[55]. - The allowance for credit losses for loans to portfolio loans ratio was 0.98% as of March 31, 2025, down from 1.03% on December 31, 2024[69]. Shareholder Equity - Shareholders' equity increased to $279.8 million, or $50.67 book value per share, as of March 31, 2025, up from $267.1 million, or $48.41 per share at December 31, 2024[53]. - Total shareholders' equity reached $279,756 thousand, an increase from $267,116 thousand at the end of the previous quarter, reflecting a growth of 4.1%[79]. - Tangible common equity to tangible assets ratio was 7.41% as of March 31, 2025, compared to 7.23% at December 31, 2024[79]. Mortgage Operations - Mortgage loan originations were $121.6 million in Q1 2025, down from $185.9 million in Q4 2024 but up from $101.7 million in Q1 2024[8]. - Mortgage loans funded for sale were $108.5 million in Q1 2025, down from $162.5 million in Q4 2024 and up from $84.3 million in Q1 2024[30]. - The Arizona, Colorado, and Pacific Northwest mortgage expansion markets accounted for 20% of total production in Q1 2025, contributing to a total production of $122 million[33]. - Mortgage loans serviced for others increased to $1.48 billion at March 31, 2025, up 1.6% from $1.46 billion at December 31, 2024[36].