Northrim BanCorp Earns $27.1 Million, or $1.20 Per Diluted Share, in Third Quarter 2025

Core Points - Northrim BanCorp reported a significant increase in net income for Q3 2025, reaching $27.1 million or $1.20 per diluted share, compared to $11.8 million or $0.52 per diluted share in Q2 2025 and $8.8 million or $0.39 per diluted share in Q3 2024, primarily driven by a $14.2 million gain from asset sales and increased net interest income [1][4][5] Financial Performance - Net interest income rose 5% to $35.3 million in Q3 2025 from $33.6 million in Q2 2025, and increased 23% from $28.8 million in Q3 2024 [5][22] - The net interest margin on a tax-equivalent basis (NIMTE) was 4.88% for Q3 2025, up 16 basis points from Q2 2025 and 53 basis points from Q3 2024 [5][23] - Return on average assets (ROAA) was 3.32% and return on average equity (ROAE) was 35.66% for Q3 2025, compared to 1.48% and 16.37% in Q2 2025, and 1.22% and 13.69% in Q3 2024 [5][21] Asset and Deposit Growth - Total assets reached $3.31 billion as of September 30, 2025, up from $3.24 billion in Q2 2025 and $3.04 billion a year ago [6] - Total deposits increased to $2.91 billion, up 3% from Q2 2025 and 11% from $2.63 billion a year ago [5][6] - Non-interest bearing demand deposits rose 12% from Q2 2025 and 14% year-over-year to $872.1 million, representing 30% of total deposits [5] Loan Portfolio - Portfolio loans were $2.22 billion at the end of Q3 2025, up 1% from Q2 2025 and 11% from a year ago [5][6] - Mortgage loan originations totaled $234 million in Q3 2025, down from $277.1 million in Q2 2025 and $248 million in Q3 2024 [5][39] Other Operating Income and Expenses - Other operating income contributed $31.2 million, or 47% of total revenues in Q3 2025, significantly up from $16.6 million or 33% in Q2 2025 [28] - Operating expenses were $30.3 million in Q3 2025, down from $32.5 million in Q2 2025 but up from $26.7 million in Q3 2024 [29] Stock Split - The Company executed a 4-for-1 forward stock split effective after the close of business on September 22, 2025, aimed at enhancing stock liquidity and accessibility for retail investors [2] Community Banking and Market Share - Northrim's deposit market share in Alaska increased to 17.5% as of June 30, 2025, up 187 basis points from the previous year [4][31]