Northrim BanCorp, Inc. reported significant financial growth in its third quarter of 2025, with net income reaching $27.1 million, or $1.20 per diluted share, compared to $8.8 million, or $0.39 per diluted share, in the same period last year. For the first nine months of 2025, net income totaled $52.2 million, up from $26.0 million in the prior year. The increase in net income for both periods was primarily driven by a $14.2 million gain from the sale of assets by Pacific Wealth Advisors, alongside higher net interest income and increased purchased receivable income. The company’s net interest margin improved to 4.83%, a 54-basis point increase from the previous year.
Total assets for Northrim BanCorp increased to $3.31 billion as of September 30, 2025, up from $3.04 billion at the end of 2024. The growth in assets was largely attributed to an increase in loans, which rose to $2.22 billion, an 11% increase year-over-year. This growth was supported by new customer relationships and an expanding market share. Total deposits also saw an 11% increase, reaching $2.91 billion, with non-interest-bearing demand deposits rising 14% to $872.1 million.
The company’s operational developments included the acquisition of Sallyport Commercial Finance, LLC, which was completed in October 2024. This acquisition is expected to enhance Northrim's presence in the specialty finance sector, contributing to increased revenues from purchased receivable income. The Specialty Finance segment reported a net income of $2.95 million for the third quarter of 2025, a significant increase from $461,000 in the same quarter of 2024, primarily due to the acquisition's impact.
Northrim's credit quality indicators showed some deterioration, with nonperforming loans increasing to $11.3 million as of September 30, 2025, up from $7.5 million at the end of 2024. The allowance for credit losses also rose to $23.4 million, reflecting increased loan balances and a rise in estimated loss rates due to less favorable economic forecasts. Despite these challenges, the company maintained a strong capital position, with total risk-based capital ratios exceeding regulatory requirements for a "well-capitalized" institution.
Looking ahead, Northrim BanCorp anticipates continued growth in its loan and deposit portfolios, supported by favorable economic conditions in Alaska. The company remains focused on expanding its market share and enhancing its product offerings, particularly in the specialty finance sector, while managing credit risk and maintaining strong capital ratios.
About NORTHRIM BANCORP INC
Northrim Bancorp, Inc. is a bank holding company based in Alaska, operating through Northrim Bank and subsidiaries. It provides commercial banking, mortgage lending, and specialty finance services to small and medium-sized businesses and individuals primarily in Alaska. The company emphasizes relationship banking, customer service, and asset quality, leveraging local expertise and diversified revenue streams to serve regional markets.
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