Northrim BanCorp Earns $10.9 Million, or $1.95 Per Diluted Share, in Fourth Quarter 2024, and $37.0 Million, or $6.62 Per Diluted Share, for the Year Ended December 31, 2024

Core Financial Performance - Northrim BanCorp reported a net income of $10.9 million, or$1.95 per diluted share, in Q4 2024, an increase from $8.8 million, or$1.57 per diluted share, in Q3 2024, and $6.6 million, or$1.19 per diluted share, in Q4 2023 [1][2] - For the full year 2024, net income increased by 46% to $37.0 million, or$6.62 per diluted share, compared to $25.4 million, or$4.49 per diluted share, in 2023 [2] - The increase in profitability in Q4 2024 was driven by higher mortgage banking income, net interest income, and purchased receivable income, partially offset by increased operating expenses and credit loss provisions [1][2] Income and Expenses - Net interest income in Q4 2024 rose by 7% to $30.8 million compared to$28.8 million in Q3 2024 and increased by 15% from $26.7 million in Q4 2023 [5][18] - Operating expenses were$29.4 million in Q4 2024, up from $26.7 million in Q3 2024 and$24.0 million in Q4 2023, primarily due to increased salaries and one-time deal costs related to the acquisition of Sallyport [24][41] Acquisition Impact - The acquisition of Sallyport Commercial Finance, completed on October 31, 2024, for approximately $53.9 million, is expected to diversify fee income and enhance profitability [1][40] - The Specialty Finance segment, which includes Sallyport, generated$3.9 million in revenue in Q4 2024, significantly contributing to overall income [41] Mortgage Banking Segment - Mortgage loans funded for sale decreased to $162.5 million in Q4 2024, with 89$210.0 million in Q3 2024 [30] - The net change in fair value of mortgage servicing rights increased mortgage banking income by $873,000 in Q4 2024, contributing to overall revenue growth [33] Balance Sheet Highlights - Total assets reached$3.04 billion at December 31, 2024, up 3% from the previous quarter and 8% year-over-year [43] - Portfolio loans increased to $2.13 billion, a 6$2.68 billion, reflecting a 2% increase from the previous quarter and an 8% increase year-over-year [5][49] Market Position and Growth - Northrim's deposit market share in Alaska increased from 11% to 16% over the past five years, with loans and deposits nearly doubling [4] - The company opened several new branches in Alaska, contributing to its growth strategy and market presence [26][27]