Northrim BanCorp (NRIM) Earnings Call Presentation

Sallyport Commercial Finance Overview - Sallyport Commercial Finance (SCF) was founded in 2014 and provides factoring, asset-based lending, and alternative working capital solutions to SMEs[10] - SCF has factored over $5.5 billion in debts across the U S and Canada[10] - SCF's active clients are primarily in Factoring (65 8%) and Asset Based Lending (22 5%)[5] - SCF's adjusted pre-tax net income was $7 7 million[9] - SCF's total net revenue was $19 5 million[9] Northrim Acquisition and Pro Forma Impact - Northrim is acquiring Sallyport Commercial Finance for $47 9 million upfront and $6 0 million deferred, paid over three years[26] - The acquisition is expected to be approximately 15% accretive to EPS in 2025E and approximately 20% in 2026E[26] - The acquisition is expected to improve ROAA by approximately +15 bps in 2025E and +20 bps in 2026E[26] - The acquisition is expected to improve ROATCE by approximately +475 bps in 2025E and +500 bps in 2026E[26] - The TBV earn-back period is estimated to be approximately 3 ½ years, with an internal rate of return of approximately 25%[26] Market Opportunity - The global factoring market was worth over $3 6 trillion in 2022 and is expected to grow to over $5 7 trillion by 2031[18, 20]