Northrim BanCorp Earns $13.3 Million, or $2.38 Per Diluted Share, in First Quarter 2025

Core Viewpoint - Northrim BanCorp reported strong financial performance in Q1 2025, with net income of $13.3 million, driven by increased purchased receivable income, higher net interest income, and improved mortgage banking income, despite higher operating expenses [1][3][5]. Financial Highlights - Net income for Q1 2025 was $13.3 million, or $2.38 per diluted share, compared to $10.9 million in Q4 2024 and $8.2 million in Q1 2024 [1]. - Total assets increased to $3.14 billion in Q1 2025 from $3.04 billion in Q4 2024 [4]. - Total deposits rose to $2.78 billion, up 4% from the previous quarter and 14% year-over-year [5]. - Net interest income increased by 1% to $31.3 million compared to $30.8 million in Q4 2024, and by 18% compared to $26.4 million in Q1 2024 [5][21]. - Return on average assets (ROAA) was 1.76% and return on average equity (ROAE) was 19.70% for Q1 2025, up from 1.19% and 13.84% respectively in Q1 2024 [5][20]. Dividends - Dividends per share increased to $0.64 in Q1 2025 from $0.62 in Q4 2024 and $0.61 in Q1 2024 [2]. Provision for Credit Losses - The company recorded a benefit to the provision for credit losses of $1.4 million in Q1 2025, compared to a provision of $1.2 million in Q4 2024 [23][24]. Specialty Finance Segment - The acquisition of Sallyport Commercial Finance contributed to increased purchased receivable income, with total pre-tax income for Sallyport at $1.3 million in Q1 2025 [42][44]. - Average purchased receivables and loan balances at Sallyport were $59.9 million, yielding 35.8% [45]. Community Banking Segment - Net interest income in the Community Banking segment totaled $28.2 million in Q1 2025, compared to $27.6 million in Q4 2024 [30]. - Other operating expenses in the Community Banking segment totaled $18.6 million, down from $19.1 million in Q4 2024 [31]. Home Mortgage Lending - Mortgage loans funded for sale were $108.5 million in Q1 2025, down from $162.5 million in Q4 2024 [34]. - The net change in fair value of mortgage servicing rights decreased mortgage banking income by $855,000 in Q1 2025 [38]. Economic Context - Alaska's unemployment rate was reported at 4.7% in February 2025, slightly higher than the U.S. rate of 4.1% [7]. - Alaska's Gross State Product (GSP) reached $70 billion in 2024, with a real GSP increase of 1.5% [11].