Northrim BanCorp Inc · Q4 2023 earnings

Briefing

Northrim BanCorp reported net income, driven by loan and deposit growth in the Community Banking segment, offset by increased operating expenses and a higher provision for credit losses.

Northrim BanCorp reported a net income of $6.6 million, or $1.19 per diluted share, for Q4 2023, compared to $8.6 million, or $1.48 per diluted share, in Q4 a year ago. The decrease was primarily due to lower net income in the Home Mortgage Lending segment, resulting from a decline in mortgage originations and a decline in the fair value of mortgage servicing rights. Loan and deposit growth supported 2023 earnings in the Community Banking segment but were offset by increased other operating expenses, primarily in salaries and other personnel expense as the Company continues to expand its branch network into new markets, and a higher provision for credit losses in 2023 due to higher loan growth compared to 2022.

• Net interest income increased 1% to $26.7 million compared to the third quarter of 2023 and decreased 2% compared to the fourth quarter of 2022.
• Net interest margin on a tax equivalent basis was 4.12% for the fourth quarter of 2023.
• Portfolio loans were $1.79 billion, up 4% from the preceding quarter and up 19% from a year ago.
• Total deposits were $2.49 billion, up 2% from the preceding quarter, and up 4% from a year ago.

Headline financials

Revenue & EPS history

We expect our net interest margin to continue to remain relatively stable as estimated increases in earning-asset yields from the repricing of earning assets will likely be offset by increases in deposit costs.