Northrim BanCorp, Inc. reported a significant increase in financial performance for the second quarter of 2025, with net income rising to $11.8 million, or $2.09 per diluted share, compared to $9.0 million, or $1.62 per diluted share, in the same period last year. For the first half of 2025, net income reached $25.1 million, up from $17.2 million in the first half of 2024. The growth in net income is attributed to a $6.5 million increase in net interest income, a $4.7 million rise in purchased receivable income, and a $1.5 million increase in mortgage banking income, despite higher operating expenses and an increased provision for credit losses.
Total assets for Northrim BanCorp increased to $3.24 billion as of June 30, 2025, up from $3.04 billion at the end of 2024. The company's loan portfolio also saw growth, with total loans amounting to $2.20 billion, a 17% increase year-over-year. This growth was primarily driven by new customer relationships and an expanding market share, particularly in commercial real estate and commercial and industrial loans. Total deposits rose to $2.81 billion, reflecting a 14% increase from the previous year, with non-interest-bearing demand deposits making up 28% of total deposits.
Strategically, Northrim completed the acquisition of Sallyport Commercial Finance, LLC in October 2024, which has contributed to the Specialty Finance segment's performance. The acquisition is expected to enhance the company's offerings in factoring and asset-based lending. The Specialty Finance segment reported a net income of $2.1 million for the second quarter of 2025, a substantial increase from $556,000 in the same quarter of 2024. The integration of Sallyport is anticipated to provide additional revenue streams and operational efficiencies.
Operationally, the company reported a net interest margin of 4.66% for the second quarter of 2025, an increase of 42 basis points from the previous year. The average cost of interest-bearing deposits decreased to 2.04%, down from 2.21% a year earlier. The company also experienced a rise in mortgage loan originations, which totaled $277.1 million in the second quarter, compared to $181.5 million in the same period of 2024. Additionally, the number of serviced mortgage loans increased significantly, reflecting the company's growing presence in the mortgage market.
Looking ahead, Northrim BanCorp remains optimistic about its growth trajectory, supported by a strong capital position and a favorable economic environment in Alaska. The company anticipates continued success in expanding its loan and deposit base, while managing credit quality and operational efficiencies. However, management acknowledges potential risks, including economic fluctuations and changes in market conditions, which could impact future performance.
About NORTHRIM BANCORP INC
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