Northrim Banp(US:NRIM)2021-08-04 17:51Economic Performance - Alaska's real Gross State Product (GSP) was $52.1 billion in 2020, a decrease of 4.9% from $54.7 billion in 2019[163]. - Alaska's personal income for 2020 was $47.4 billion, a 3.1% increase from $46 billion in 2019, while U.S. personal income increased by 6.1%[164]. - The Alaska economy began to recover in Q4 2020, with GSP growth continuing at an annualized rate of 5.4% in Q1 2021[161]. Employment and Job Market - Total payroll jobs in Alaska grew by 16,500 from May 2020, representing a 5.7% improvement over the prior 12 months[162]. - The Oil and Gas sector saw a decline of 1,400 jobs to 6,100 in May 2021, marking the only major sector with fewer jobs than in May 2020[162]. Real Estate Market - The average sales price of a single-family home in Anchorage rose by 5.9% in 2020 to $396,779, with a further increase of 8% in the first six months of 2021 compared to the 2020 average[169]. - In 2020, home sales in Anchorage increased by 19.5% to 3,250 units sold, while Matanuska Susitna Borough saw a 9.7% increase to 2,135 units sold[170][171]. Mortgage and Foreclosure Trends - The foreclosure rate in Alaska improved from 0.63% at the end of 2019 to 0.45% at the end of 2020, with a further decline to 0.41% in Q1 2021[167]. - The percentage of delinquent mortgage loans in Alaska increased from 2.9% at the end of 2019 to 6.2% at the end of 2020, but improved to 5.4% in Q1 2021[168]. Financial Performance - As of June 30, 2021, the company reported net income of $8.3 million and diluted earnings per share of $1.33 for Q2 2021, compared to $9.9 million and $1.52 for Q2 2020[177]. - Total revenue for Q2 2021 decreased by 5% to $33.3 million, primarily due to a $3.9 million decrease in mortgage banking income[178]. - Net income for Q2 2021 decreased by $1.6 million to $8.3 million compared to $9.9 million in Q2 2020, primarily due to a $2.3 million decrease in the Home Mortgage Lending segment[182]. - For the first six months of 2021, net income increased by $9.6 million to $20.5 million compared to $10.9 million in the same period of 2020, driven by a $7.0 million increase in the Community Banking segment[183]. Loan and Deposit Trends - Average loans increased by 15% to $1.54 billion in Q2 2021 compared to $1.34 billion in Q2 2020[185]. - Total deposits increased by $321.5 million, or 18%, to $2.146 billion as of June 30, 2021, driven by funding PPP loans and new customer relationships[205]. - Demand deposits rose to $798.2 million, representing 37% of total deposits as of June 30, 2021, up from 35% at December 31, 2020[205]. Government Assistance and PPP Loans - The company funded nearly 5,800 PPP loans totaling $612.6 million, with 745 loans totaling $33 million originated in Q2 2021[176]. - The company received $133.0 million and $238 million in loan forgiveness through the SBA during the three and six-month periods ending June 30, 2021, respectively[184]. Capital and Credit Quality - The total risk-based capital ratio for the Company as of June 30, 2021, was 15.45%, exceeding the minimum requirement of 8.00%[219]. - The Company’s Tier 1 risk-based capital ratio was 14.54% as of June 30, 2021, above the required 6.00%[219]. - The allowance for credit losses (ACL) related to loans with exposure to directly impacted industries was estimated at $4.1 million as of June 30, 2021[203]. Cash Flow and Investments - Net cash provided by operating activities for the first six months of 2021 was $68.5 million, primarily from loan sales[213]. - Net cash used by investing activities during the same period was $152.0 million, mainly due to purchases of available-for-sale securities[213]. - Portfolio investments increased by 38%, or $100.1 million, to $366.8 million as of June 30, 2021, from $266.7 million at December 31, 2020[196].