Northrim BanCorp, Inc. reported a net income of $15.3 million for the second quarter of 2026, reflecting a 30% increase from $11.8 million in the same period last year. Earnings per diluted share rose to $0.68, up from $0.52. For the first half of 2026, net income reached $29.0 million, compared to $25.1 million in the first half of 2025. The growth in net income was primarily driven by a $6.9 million increase in net interest income, which totaled $71.8 million for the first six months of 2026, alongside a $1.9 million rise in mortgage banking income.
Total assets for Northrim BanCorp increased to $3.42 billion as of June 30, 2026, up from $3.29 billion at the end of 2025. The company's loan portfolio grew by 4% to $2.39 billion, with significant contributions from commercial and industrial loans, as well as residential real estate loans. Total deposits also rose by 4% to $2.92 billion, with non-interest-bearing demand deposits increasing by 6% year-over-year. The net interest margin improved to 4.96%, a 30-basis point increase from the previous year, attributed to higher interest income on loans and a favorable shift in the mix of earning assets.
In terms of operational developments, Northrim BanCorp announced a merger agreement with PBCO Financial Corporation on July 22, 2026. This all-stock transaction is expected to enhance the company's market presence, particularly in Oregon, and will result in a combined asset base of approximately $4.2 billion. The merger is subject to regulatory and shareholder approvals and is anticipated to close in late 2026 or early 2027.
The company reported an increase in nonperforming assets, which rose to $23.0 million as of June 30, 2026, compared to $11.4 million at the end of 2025. This increase was primarily due to a rise in nonperforming loans, particularly in the Community Banking segment. The allowance for credit losses also increased to $25.5 million, reflecting the company's proactive approach to managing credit risk amid changing economic conditions.
Looking ahead, Northrim BanCorp remains optimistic about its growth trajectory, bolstered by the anticipated benefits of the merger with PBCO and ongoing efforts to expand its customer base and market share. The company is focused on maintaining its capital adequacy and liquidity, with a strong emphasis on managing credit quality and operational efficiency in the evolving economic landscape.
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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