Northrim Banp(US:NRIM)2022-05-06 18:53Financial Performance - The Company reported net income of $7.2 million and diluted earnings per share of $1.20 for Q1 2022, down from $12.2 million and $1.94 in Q1 2021, primarily due to decreased production in the Home Mortgage Lending segment [127]. - Total revenue decreased 15% to $30.1 million in Q1 2022 from $35.4 million in Q1 2021, mainly due to a $6.6 million decrease in mortgage banking income [130]. - Net income for the first quarter of 2022 decreased by $5.0 million to $7.2 million compared to $12.2 million for the same period in 2021 [138]. - Other operating income decreased by $5.1 million, or 32%, to $10.8 million, primarily due to a $6.6 million decrease in mortgage banking income [149]. Interest Income and Expenses - Net interest income for Q1 2022 was $19.3 million, a 1% decrease from $19.5 million in Q1 2021, while net interest income excluding PPP increased 11% to $17.0 million [130]. - Net interest margin decreased by 72 basis points to 3.18% in the first quarter of 2022 compared to 3.90% in the first quarter of 2021 [140]. - Total interest income decreased by $538,000, with a $1,470,000 decrease due to volume and a $932,000 increase due to rate changes [147]. - Interest income from interest-bearing deposits in other banks increased by 346% to $242,000 compared to $38,000 in the same period last year [145]. Loan and Deposit Activity - Loans totaled $1.38 billion at March 31, 2022, down 3% from December 31, 2021, with core portfolio loans excluding PPP increasing 1% to $1.31 billion [130]. - Total loans decreased by $36.5 million, or 2.6%, to $1.377 billion as of March 31, 2022, from $1.414 billion at December 31, 2021, primarily due to decreased SBA PPP loans [154]. - Total deposits decreased by $78.6 million, or 3%, to $2.343 billion as of March 31, 2022, from $2.422 billion at December 31, 2021 [160]. - Demand deposits represented 35% of total deposits at March 31, 2022, down from 37% at December 31, 2021 [160]. Capital and Regulatory Ratios - The capital ratios of the Company and Northrim Bank were well above all regulatory requirements as of March 31, 2022 [130]. - As of March 31, 2022, the Company maintained a total risk-based capital ratio of 14.37%, exceeding the minimum required of 8.00% [174]. - The Tier 1 risk-based capital ratio was reported at 13.64%, above the required minimum of 6.00% [174]. - The Company’s leverage ratio stood at 9.00%, surpassing the minimum requirement of 4.00% [174]. Stock Repurchase and Shareholder Returns - The Company repurchased 133,105 shares of common stock at an average price of $44.50 per share during Q1 2022, with 200,619 shares remaining for repurchase [130]. - The Company repurchased 133,105 shares of its common stock in the first three months of 2022 under its repurchase program [171]. Loan Forgiveness and Modifications - As of March 31, 2022, 99% of PPP round one and 74% of PPP round two loans have been forgiven, totaling $548.3 million [131]. - The total outstanding principal balance of loan modifications due to COVID-19 was $45.1 million as of March 31, 2022, with 81% scheduled to return to normal payments by the end of Q2 2022 [132]. - The company received $56.9 million in loan forgiveness through the SBA in the first quarter of 2022, down from $105.0 million in the same period of 2021 [141]. Asset Quality - Nonperforming assets decreased by 13%, or $2.0 million, to $13.1 million as of March 31, 2022, compared to $15.0 million at December 31, 2021 [133]. - Nonperforming loans, net of government guarantees, decreased by $2.0 million, or 18%, to $8.7 million as of March 31, 2022, from $10.7 million as of December 31, 2021 [135]. - Potential problem loans decreased to $1.7 million as of March 31, 2022, from $2.1 million at December 31, 2021 [136]. - The Company had $10.0 million in troubled debt restructurings (TDRs) at March 31, 2022, compared to $7.3 million at December 31, 2021 [137]. Cash and Liquid Assets - As of March 31, 2022, the Company had cash and cash equivalents of $532.8 million, representing 20% of total assets, down from $645.8 million or 24% as of December 31, 2021 [168]. - Liquid assets totaled $787.0 million, with available borrowing under existing lines of credit at $1.233 billion as of March 31, 2022 [169]. Economic Indicators - Alaska's Gross State Product (GSP) for Q4 2021 was $58 billion, reflecting a 3% increase, with an overall annual growth of 0.3% in 2021 [120].