Core Insights - Northrim BanCorp reported a net income of $12.4 million, or $0.55 per diluted share, in Q4 2025, a decrease from $27.1 million in Q3 2025, but an increase from $10.9 million in Q4 2024, primarily due to a prior quarter gain from asset sales and increased operating expenses [1][2][4] Financial Performance - For the full year 2025, net income increased by 75% to $64.6 million, or $2.87 per diluted share, compared to $37.0 million, or $1.66 per diluted share, in 2024, driven by increased net interest income and asset sales [2] - Q4 2025 net interest income reached a record $35.4 million, slightly up from $35.3 million in Q3 2025 and up 15% from $30.8 million in Q4 2024 [6][22] - The net interest margin on a tax-equivalent basis (NIMTE) was 4.75% in Q4 2025, a decrease from 4.88% in Q3 2025 but an increase from 4.47% in Q4 2024 [6][23] Operating Segments - The Community Banking segment generated net interest income of $32.2 million in Q4 2025, compared to $32.3 million in Q3 2025 and $27.6 million in Q4 2024 [31] - The Specialty Finance segment's pre-tax income was $2.0 million in Q4 2025, compared to $2.1 million in Q3 2025, reflecting the acquisition of Sallyport [50] Operating Expenses - Total operating expenses in Q4 2025 were $33.4 million, up from $30.3 million in Q3 2025 and $29.4 million in Q4 2024, primarily due to increased salaries and marketing expenses [28] - The provision for credit losses in Q4 2025 was $1.6 million, slightly down from $1.7 million in Q3 2025, attributed to increases in loan balances [24][25] Mortgage Lending - Mortgage loans funded for sale in Q4 2025 decreased to $199.6 million, with 80% for home purchases, compared to $218.2 million in Q3 2025 [36] - The provision for credit losses in the Home Mortgage Lending segment was $688,000 in Q4 2025, up from $158,000 in Q3 2025 [41] Market Position - Northrim's deposit market share in Alaska increased to 17.53% as of June 30, 2025, up from 15.66% a year earlier [29] - The average sales price of single-family homes in Anchorage rose 4.4% in 2025, indicating a stable housing market [16]