Northrim BanCorp Reports $13.7 Million Net Income in Q1 2026, Driven by Increased Interest Income

Northrim BanCorp, Inc. reported a net income of $13.7 million for the first quarter of 2026, reflecting a 2.6% increase from $13.3 million in the same period of 2025. Earnings per diluted share rose to $0.61, up from $0.60 year-over-year. The increase in net income was primarily driven by a $3.4 million rise in net interest income, which reached $34.7 million, and a $2.2 million increase in mortgage banking income. However, these gains were partially offset by a $2.4 million increase in the provision for credit losses and a $2.5 million rise in other operating expenses.

Total assets for Northrim BanCorp increased to $3.35 billion as of March 31, 2026, up from $3.29 billion at the end of 2025. The growth in assets was largely attributed to an increase in loans, which rose to $2.36 billion, marking an 11% increase from the previous year. The bank's total deposits also saw a modest increase of 2%, reaching $2.87 billion, with non-interest-bearing demand deposits growing by 11% year-over-year. The average cost of interest-bearing deposits decreased to 1.77% from 2.01% a year earlier, contributing to improved net interest margins, which stood at 4.72%, up 17 basis points from the prior year.

In terms of operational developments, Northrim BanCorp's Community Banking segment reported a decrease in net income to $10.5 million, primarily due to increased provisions for credit losses and higher personnel expenses. Conversely, the Home Mortgage Lending segment saw a 35% increase in net income to $1.1 million, driven by higher mortgage servicing revenue. The Specialty Finance segment also performed well, with net income rising 21% to $2.1 million, attributed to increased purchased receivable balances.

The company’s allowance for credit losses increased to $24.8 million as of March 31, 2026, up from $23.7 million at the end of 2025, reflecting the growth in loan balances and an increase in individually evaluated loans. Nonperforming assets rose to $15.3 million, a 34% increase from $11.4 million at the end of the previous year, primarily due to the addition of four loans in the first quarter of 2026. The company identified $20.1 million in potential problem loans, a slight decrease from $21.2 million at the end of 2025.

Looking ahead, Northrim BanCorp remains optimistic about its growth prospects, citing a strong local economy and continued expansion in its loan and deposit base. The company plans to maintain its focus on enhancing customer relationships and expanding its market share, particularly in the residential mortgage sector. Management anticipates that the ongoing economic conditions will support its strategic objectives, although it remains vigilant regarding potential risks, including fluctuations in interest rates and economic uncertainties.