Northrim Banp(NRIM) - 2025 Q2 - Quarterly Report

PART I. FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS (UNAUDITED) This section presents Northrim BanCorp's unaudited consolidated financial statements for June 30, 2025, including key financial statements and detailed notes on accounting policies and financial components Consolidated Balance Sheets Consolidated Balance Sheet Highlights (In Thousands) | Item | June 30, 2025 | December 31, 2024 | Change ($) | Change (%) | | :-------------------------------- | :------------ | :---------------- | :--------- | :--------- | | Total assets | $3,243,760 | $3,041,869 | $201,891 | 6.64% | | Total liabilities | $2,953,541 | $2,774,753 | $178,788 | 6.44% | | Total shareholders' equity | $290,219 | $267,116 | $23,103 | 8.65% | | Loans | $2,202,115 | $2,129,263 | $72,852 | 3.42% | | Total deposits | $2,809,170 | $2,680,189 | $128,981 | 4.81% | Consolidated Statements of Income Consolidated Statements of Income Highlights (In Thousands, Except Per Share Data) | Item | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Change ($) | Change (%) | | :----------------------------------- | :------------------------------- | :------------------------------- | :--------- | :--------- | | Total Interest and Dividend Income | $44,799 | $36,909 | $7,890 | 21.38% | | Total Interest Expense | $11,207 | $9,856 | $1,351 | 13.71% | | Net Interest Income | $33,592 | $27,053 | $6,539 | 24.17% | | Provision (benefit) for credit losses | $1,976 | ($120) | $2,096 | -1746.67% | | Total Other Operating Income | $16,640 | $9,577 | $7,063 | 73.75% | | Total Other Operating Expense | $32,488 | $25,194 | $7,294 | 28.95% | | Net Income | $11,778 | $9,020 | $2,758 | 30.58% | | Earnings Per Share, Basic | $2.13 | $1.64 | $0.49 | 29.88% | | Earnings Per Share, Diluted | $2.09 | $1.62 | $0.47 | 29.01% | | Item | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change ($) | Change (%) | | :----------------------------------- | :----------------------------- | :----------------------------- | :--------- | :--------- | | Total Interest and Dividend Income | $86,360 | $72,717 | $13,643 | 18.76% | | Total Interest Expense | $21,471 | $19,217 | $2,254 | 11.73% | | Net Interest Income | $64,889 | $53,500 | $11,389 | 21.29% | | Provision (benefit) for credit losses | $567 | $29 | $538 | 1855.17% | | Total Other Operating Income | $29,680 | $17,421 | $12,259 | 70.37% | | Total Other Operating Expense | $60,659 | $48,832 | $11,827 | 24.22% | | Net Income | $25,102 | $17,219 | $7,883 | 45.78% | | Earnings Per Share, Basic | $4.54 | $3.13 | $1.41 | 45.05% | | Earnings Per Share, Diluted | $4.47 | $3.10 | $1.37 | 44.19% | Consolidated Statements of Comprehensive Income Consolidated Statements of Comprehensive Income Highlights (In Thousands) | Item | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Change ($) | Change (%) | | :----------------------------------- | :------------------------------- | :------------------------------- | :--------- | :--------- | | Net income | $11,778 | $9,020 | $2,758 | 30.58% | | Other comprehensive income, net of tax | $1,955 | $2,048 | ($93) | -4.54% | | Comprehensive income | $13,733 | $11,068 | $2,665 | 24.08% | | Item | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change ($) | Change (%) | | :----------------------------------- | :----------------------------- | :----------------------------- | :--------- | :--------- | | Net income | $25,102 | $17,219 | $7,883 | 45.78% | | Other comprehensive income, net of tax | $4,630 | $2,452 | $2,178 | 88.83% | | Comprehensive income | $29,732 | $19,671 | $10,061 | 51.15% | Consolidated Statements of Changes in Shareholders' Equity Shareholders' Equity Changes (In Thousands) | Item | June 30, 2025 | December 31, 2024 | Change ($) | Change (%) | | :----------------------------------- | :------------ | :---------------- | :--------- | :--------- | | Balance as of January 1 | $267,116 | $234,718 | $32,398 | 13.80% | | Net income (six months) | $25,102 | $17,219 | $7,883 | 45.78% | | Cash dividend on common stock (six months) | ($7,158) | ($6,781) | ($377) | 5.56% | | Other comprehensive income, net of tax (six months) | $4,629 | $2,452 | $2,177 | 88.78% | | Balance as of June 30 | $290,219 | $247,200 | $43,019 | 17.40% | Consolidated Statements of Cash Flows Consolidated Statements of Cash Flows Highlights (Six Months Ended June 30, In Thousands) | Activity | 2025 | 2024 | Change ($) | Change (%) | | :----------------------------------- | :--------- | :--------- | :--------- | :--------- | | Net Cash Provided (Used) by Operating Activities | $12,124 | ($44,044) | $56,168 | -127.53% | | Net Cash (Used) Provided by Investing Activities | ($95,469) | ($21,604) | ($73,865) | 341.90% | | Net Cash Provided (Used) by Financing Activities | $161,892 | $1,540 | $160,352 | 10412.47% | | Net Change in Cash and Cash Equivalents | $78,547 | ($64,108) | $149,655 | -233.44% | | Cash and Cash Equivalents at End of Period | $141,283 | $54,422 | $86,861 | 159.61% | Notes to the Consolidated Financial Statements Note 1. Basis of Presentation and Significant Accounting Policies The Company prepares consolidated financial statements under U.S. GAAP, operating in three primary segments, with no significant accounting policy changes in 2025 - The Company operates in three primary operating segments: Community Banking, Home Mortgage Lending, and Specialty Finance[27] - No significant changes in accounting policies in 2025[28] - FASB ASU 2023-09, effective for fiscal years beginning after December 15, 2024, will improve transparency of income tax disclosures by requiring consistent categories and greater disaggregation of information[30] Note 2. Business Combinations On October 31, 2024, the Company acquired Sallyport Commercial Finance (SCF) for approximately $53.9 million to expand its specialty finance presence, recognizing