Northrim Banp-Northrim BanCorp Announces Acquisition of Sallyport Commercial Finance, LLC

Core Viewpoint - Northrim BanCorp, Inc. has acquired Sallyport Commercial Finance, LLC for approximately $53.9 million in an all-cash transaction, expected to enhance Northrim's earnings by about 15% in 2025 [1][2]. Company Overview - Northrim BanCorp, Inc. is the parent company of Northrim Bank, a community bank in Alaska with 20 branches serving 90% of Alaska's population, and has a factoring and asset-based lending division [8]. - Sallyport Commercial Finance, LLC specializes in providing working capital solutions to small and medium-sized enterprises in the U.S. and Canada, having factored over$ 5 billion in debts by 2023 [2][9]. Transaction Details - The acquisition closed on October 31, 2024, and SCF will operate as a wholly-owned subsidiary of Northrim, complementing the existing products offered by Northrim Funding Services [1][3]. - The executive management team at SCF, which has over 100 years of combined industry experience, will retain their current positions post-acquisition [3]. Strategic Rationale - Northrim views the acquisition as a strategic partnership that aligns with its core values of customer service and tailored solutions, aiming to capture a larger share of the dynamic market segment [2]. - The company has a history of investing in related financial enterprises as part of its growth and diversification strategy [5]. Future Outlook - Management plans to discuss the acquisition in detail during an investor conference call scheduled for November 4, 2024 [7].