Northrim BanCorp Earns $10.9 Million, or $1.95 Per Diluted Share, in Fourth Quarter 2024, and $37.0 Million, or $6.62 Per Diluted Share, for the Year Ended December 31, 2024

ANCHORAGE, Alaska, Jan. 24, 2025 (GLOBE NEWSWIRE) -- Northrim BanCorp, Inc. (NASDAQ:NRIM) (“Northrim” or the “Company”) today reported net income of $10.9 million, or $1.95 per diluted share, in the fourth quarter of 2024, compared to $8.8 million, or $1.57 per diluted share, in the third quarter of 2024, and $6.6 million, or $1.19 per diluted share, in the fourth quarter a year ago. The increase in the fourth quarter of 2024 compared to the third quarter of 2024 is primarily due to an increase in purchased receivable income due to the Company’s acquisition of Sallyport Commercial Finance, LLC (“Sallyport”), which was completed on October 31, 2024. Sallyport and its direct and indirect subsidiaries provide services and products related to factoring and asset-based lending in the United States, Canada, and the United Kingdom. Additionally, in the fourth quarter of 2024 the Company had an increase in mortgage banking income, primarily as a result of an increase in the fair value of a mortgage servicing portfolio that the Company purchased from another financial institution in the fourth quarter. The increase profitability in the fourth quarter of 2024 as compared to the same quarter of the prior year was largely driven by an increase in mortgage banking income and higher net interest income, as well as an increase in purchased receivable income as noted above, which was only partially offset by higher other operating expenses and an increase in the provision for credit losses. Net income for the full year of 2024 increased 46% to $37.0 million, or $6.62 per diluted share, compared to $25.4 million, or $4.49 per diluted share, for the full year of 2023. Increased net interest income resulting from loan and deposit growth supported 2024 earnings in the Community Banking segment but were offset by increases in other operating expenses, primarily in salaries and other personnel expense as the Company continued to expand its branch network into new markets in Alaska. An increase in mortgage originations and an increase in the fair value of mortgage servicing rights resulted in net income of $4.4 million in the Home Mortgage Lending segment in 2024 compared to a $2.5 million loss in 2023. Dividends per share in the fourth quarter of 2024 remained consistent with the third quarter of 2024 at $0.62 per share and increased from $0.60 per share in the fourth quarter of 2023. “Northrim reported record core earnings in 2024 and record earnings per share in the fourth quarter,” said Mike Huston, Northrim’s President and Chief Executive Officer. “We are pleased with our results as we continue to focus on profitable growth. In the last five years Northrim’s deposit market share in Alaska has increased from 11% to 16%, loans and deposits have increased by almost 100%, and net interest income has increased by 60%.” “2024 results were also supported by an improvement in mortgage banking income,” continued Mr. Huston. “We believe the acquisition of Sallyport in the fourth quarter will further diversify fee income and provide attractive risk-adjusted returns to Northrim shareholders.” Fourth Quarter 2024 Highlights: Net interest income in the fourth quarter of 2024 increased 7% to $30.8 million compared to $28.8 million in the third quarter of 2024 and increased 15% compared to $26.7 million in the fourth quarter of 2023.Net interest margin on a tax equivalent basis (“NIMTE”)* was 4.47% for the fourth quarter of 2024, a 12-basis point increase from the third quarter of 2024 and a 35-basis point increase compared to the fourth quarter of 2023.Return on average assets (“ROAA”) was 1.43% and return on average equity (“ROAE”) was 16.32% for the fourth quarter of 2024.Portfolio loans were $2.13 billion at December 31, 2024, up 6% from the preceding quarter and up 19% from a year ago, primarily due to new customer relationships, expanding market share, and to retaining certain mortgage loans originated by Residential Mortgage, a subsidiary of Northrim Bank (the “Bank”), in the loan portfolio.Total deposits were $2.68 billion at December 31, 2024, up 2% from the preceding quarter, and up 8% from $2.49 billion a year ago. Noninterest bearing demand deposits represented 27% of total deposits at December 31, 2024, down from 29% at September 30, 2024 and 31% at December 31, 2023.Total assets at December 31, 2024 exceeded $3 billion for the first time.The average cost of interest-bearing deposits was 2.15% in the fourth quarter of 2024, down from 2.24% in the third quarter of 2024 and up from 2.00% in the fourth quarter a year ago.Acquired Sallyport for approximately $53.9 million (approximately $47.9 million in cash and $6 million in an earn-out payable over 3 years) on October 31, 2024. Financial HighlightsThree Months Ended(Dollars in thousands, except per share data)December 31, 2024September 30, 2024June 30, 2024March 31, 2024December 31, 2023Total assets$3,041,869 $2,963,392 $2,821,668 $2,759,560 $2,807,497 Total portfolio loans$2,129,263 $2,007,565 $1,875,907 $1,811,135 $1,789,497 Total deposits$2,680,189 $2,625,567 $2,463,806 $2,434,083 $2,485,055 Total shareholders’ equity$267,116 $260,050 $247,200 $239,327 $234,718 Net income$10,927 $8,825 $9,020 $8,199 $6,613 Diluted earnings per share$1.95 $1.57 $1.62 $1.48 $1.19 Return on average assets1.43%1.22%1.31%1.19%0.93%Return on average shareholders’ equity16.32%13.69%14.84%13.84%11.36%NIM4.41%4.29%4.24%4.16%4.06%NIMTE*4.47%4.35%4.30%4.22%4.12%Efficiency ratio66.96%66.11%68.78%68.93%72.21%Total shareholders’ equity/total assets8.78%8.78%8.76%8.67%8.36%Tangible common equity/tangible assets*7.23%8.28%8.24%8.14%7.84%Book value per share$48.41 $47.27 $44.93 $43.52 $42.57 Tangible book value per share*$39.17 $44.36 $42.03 $40.61 $39.68 Dividends per share$0.62 $0.62 $0.61 $0.61 $0.60 Common shares outstanding5,518,210 5,501,943 5,501,562 5,499,578 5,513,459 * References to NIMTE, tangible book value per share, and tangible common equity to tangible common assets, (all of which exclude intangible assets) represent non-GAAP financial measures. Management has presented these non-GAAP measurements in this earnings release, because it believes these measures are useful to investors. Please refer to the end of this release for reconciliations of these non-GAAP financial measures to GAAP financial measures. Alaska Economic Update (Note: sources for information in this section are listed on page 13.) The Alaska Department of Labor (“DOL”) has reported Alaska’s seasonally adjusted unemployment rate in November 2024 was 4.6% compared to the U.S. rate of 4.2%. The total number of payroll jobs in Alaska, not including uniformed military, increased 2.4% or 7,700 jobs between November 2023 and November 2024. According to the DOL, Construction had the largest growth in new jobs in Alaska through November compared to the prior year. The Construction sector added 2,100 positions for a year over year growth rate of 12.7% in November 2024. The larger Health Care sector grew by 1,500 jobs for an annual growth rate of 3.7%. The Oil & Gas sector increased by 9.2% or 700 new direct jobs. Transportation, Warehousing and Utilities added 1,000 jobs for a 4.5% growth rate. Professional and Business Services increased 700 jobs year over year through November 2024, up 2.5%. The Government sector grew by 1,200 jobs for 1.5% growth, adding 100 Federal jobs, 800 State and 300 Local government positions in Alaska over the same period. Declining sectors between November 2023 and November 2024 were Manufacturing (primarily seafood processing) shrinking 500 jobs (-6.6%), Information, down 100 jobs (-2.2%), and Retail lost 100 jobs (-0.3%). Alaska’s Gross State Product (“GSP”) in the third quarter of 2024, exceeded $70 billion for the first time, and is estimated to be $70.1 billion in current dollars, according to the Federal Bureau of Economic Analysis (“BEA”). Alaska’s inflation adjusted “real” GSP increased 6.5% in 2023, placing Alaska fifth best of all 50 states. In the third quarter of 2024 Alaska GSP increased at an annualized rate of 2.2%, compared to the average U.S. growth rate of 3.1%. Alaska’s real GSP improvement in the third quarter of 2024 was primarily caused by growth in the Health Care, Trade, Transportation and Warehousing sectors. The BEA also calculated Alaska’s seasonally adjusted personal income at $55.7 billion in the third quarter of 2024. This was an annualized improvement in the third quarter of 3.3% for Alaska, compared to the national average of 3.2%. Alaska enjoyed an annual personal income improvement of 3.8% in 2023. The $445 million increase in personal income in the third quarter in Alaska came from a $310 million increase in net earnings from wages, $145 million growth in government transfer receipts (which grew in all 50 states), and a $10 million decrease in investment income. The monthly average price of Alaska North Slope (“ANS”) crude oil was at an annual high of $89.05 in April 2024 and most recently averaged $72.50 in November 2024. The Alaska Department of Revenue (“DOR”) calculated ANS crude oil production was 461 thousand barrels per day (“bpd”) in Alaska’s fiscal year ending June 30, 2024 and is projected to increase to 467 thousand bpd in Alaska’s fiscal year 2025. The DOR expects production to continue to grow rapidly to 657 thousand bpd by fiscal year 2034. This is primarily a result of new production coming on-line in and around the NPR-A region west of Prudhoe Bay. A partnership between Santos and Repsol is constructing the new Pikka field and ConocoPhillips is reportedly developing the large new Willow field. There are also a number of smaller new fields in Alaska’s North Slope that are contributing to the State of Alaska’s production growth estimates. According to the Alaska Multiple Listing Services, the average sales price of a single family home in Anchorage rose 6.2% in 2024 to $509,994, following a 5.2% increase in 2023. This was the seventh consecutive year of price increases. The average sales price for single family homes in the Matanuska Susitna Borough rose 3.9% in 2024 to $412,907, after increasing 4% in 2023. This continues a trend of average price increases for more than a decade in the region. These two markets represent where the vast majority of the Bank’s residential lending activity occurs. The Alaska Multiple Listing Services reported a 3.4% increase in the number of units sold in Anchorage when comparing 2024 to 2023. There was virtually no change in the number of homes sold in the Matanuska Susitna Borough, with only four fewer homes sold in 2024 than in 2023 or 0.2%. Northrim Bank sponsors the Alaskanomics blog to provide news, analysis, and commentary on Alaska’s economy. Join the conversation at Alaskanomics.com, or for more information on the Alaska economy, visit: www.northrim.com and click on the “Business Banking” link and then click “Learn.” Information from our website is not incorporated into, and does not form, a part of this earnings release. Review of Income Statement Consolidated Income Statement In the fourth quarter of 2024, Northrim generated a ROAA of 1.43% and a ROAE of 16.32%, compared to 1.22% and 13.69%, respectively, in the third quarter of 2024 and 0.93% and 11.36%, respectively, in the fourth quarter a year ago. For the year 2024, Northrim generated a ROAA of 1.29% and a ROAE of 14.70%, compared to 0.94% and 11.17% for 2023. Net Interest Income/Net Interest Margin Net interest income increased 7% to $30.8 million in the fourth quarter of 2024 compared to $28.8 million in the third quarter of 2024 and increased 15% compared to $26.7 million in the fourth quarter of 2023. Interest expense on deposits increased to $10.6 million in the fourth quarter compared to $10.1 million in the third quarter of 2024 and $8.7 million in the fourth quarter of 2023. NIMTE* was 4.47% in the fourth quarter of 2024 compared to 4.35% in the preceding quarter and 4.12% in the fourth quarter a year ago. NIMTE* increased 12 basis points in the fourth quarter of 2024 compared to the prior quarter and 35 basis points compared to the fourth quarter of 2023 primarily due to a favorable change in the mix of earning-assets towards higher loan balances as a percentage of total earning-assets, higher earning-assets, and higher yields on those assets which were only partially offset by an increase in costs on interest-bearing deposits. The weighted average interest rate for new loans booked in the fourth quarter of 2024 was 7.23% compared to 7.24% in the third quarter of 2024 and 7.74% in the fourth quarter a year ago. The yield on the investment portfolio increased to 2.84% from 2.80% in the third quarter of 2024 and increased from 2.48% in the fourth quarter of 2023. “We are beginning to see improvements in our net interest margin as a result of lower deposit costs from the recent Fed interest rate cuts, in addition to the benefit of new loan volume and loan repricing driving our net interest margin to 4.47% for the fourth quarter,” said Jed Ballard, Chief Financial Officer. Northrim’s NIMTE* continues to remain above the peer average of 3.16% posted by the S&P U.S. Small Cap Bank Index with total market capitalization between $250 million and $1 billion as of September 30, 2024. Provision for Credit Losses Northrim recorded a provision for credit losses of $1.2 million in the fourth quarter of 2024, which includes a $125,000 provision for credit losses on purchased receivables, $107,000 benefit to the provision for credit losses on unfunded commitments, and a provision for credit losses on loans of $1.2 million. This compares to a provision for credit losses of $2.1 million in the third quarter of 2024, and a provision for credit losses of $885,000 in the fourth quarter a year ago. The $1.2 million provision for credit losses in the fourth quarter of 2024 is largely attributable to increases in loan and purchased receivable balances. Nonperforming loans, net of government guarantees, increased during the quarter to $7.5 million at December 31, 2024, compared to $5.0 million at both September 30, 2024 and December 31, 2023. The allowance for credit losses was 292% of nonperforming loans, net of government guarantees, at the end of the fourth quarter of 2024, compared to 394% three months earlier and 345% a year ago. Other Operating Income In addition to home mortgage lending, Northrim has interests in other businesses that complement its core community banking activities, including purchased receivables financing and wealth management. Other operating income contributed $13.0 million, or 30% of total fourth quarter 2024 revenues, as compared to $11.6 million, or 29% of revenues in the third quarter of 2024, and $6.5 million, or 20% of revenues in the fourth quarter of 2023. The increase in other operating income in the fourth quarter of 2024 as compared to the preceding quarter and the fourth quarter of 2023 is largely the result of higher purchased receivable income due to the acquisition of Sallyport. Additionally, other operating income in the fourth quarter of 2024 as compared to the fourth quarter a year ago increased due to an increase in mortgage banking income arising from higher volume of mortgage activity and an increase in the value of mortgage servicing rights. The changes in mortgage banking are discussed further in the Home Mortgage Lending section below. Other Operating Expenses Operating expenses were $29.4 million in the fourth quarter of 2024, compared to $26.7 million in the third quarter of 2024, and $24.0 million in the fourth quarter of 2023. The increase in other operating expenses in the fourth quarter of 2024 compared to the third quarter of 2024 and the fourth quarter a year ago is primarily due to an increase in salaries and other personnel expense, as well as increases in professional fees from one-time deal costs associated with the acquisition of Sallyport and insurance expense due to higher FDIC insurance costs due to the Company's asset and net income growth. Income Tax Provision In the fourth quarter of 2024, Northrim recorded $2.4 million in state and federal income tax expense for an effective tax rate of 17.8%, compared to $2.8 million, or 24.2% in the third quarter of 2024 and $1.7 million, or 20.7% in the fourth quarter a year ago. For the year, Northrim recorded $10.0 million in state and federal income tax expense in 2024 for an effective tax rate of 21.3%, compared to $6.2 million, or 19.7% in 2023. The decrease in the tax rate in the fourth quarter of 2024 as compared to the third quarter of 2024 and the fourth quarter a year ago is primarily the result of increased tax benefits related to the Company’s investment in low income housing tax credits and the purchase of renewable energy tax credits. Community Banking In the most recent deposit market share data from the FDIC, Northrim’s deposit market share in Alaska increased to 15.66% of Alaska's total deposits as of June 30, 2024 compared to 15.04% of Alaska’s total deposits as of June 30, 2023. This represents 62 basis points of growth in market share percentage for Northrim during that period while, according to the FDIC, the total deposits in Alaska were up 2.3% during the same period. Northrim opened a branch in Kodiak in the first quarter of 2023, a loan production office in Homer in the second quarter of 2023, a permanent branch in Nome in the third quarter of 2023, and a branch in Homer in the first quarter of 2024. See below for further discussion regarding the Company’s deposit movement for the quarter. Northrim is committed to meeting the needs of the diverse communities in which it operates. As a testament to that support, the Bank has branches in four regions of Alaska identified by the Federal Reserve as “distressed or underserved non-metropolitan middle-income geographies”. Net interest income in the Community Banking segment totaled $27.6 million in the fourth quarter of 2024, compared to $25.9 million in the third quarter of 2024 and $24.2 million in the fourth quarter of 2023. Net interest income increased in the fourth quarter of 2024 as compared to the third quarter of 2024 and the fourth quarter a year ago mostly due to increased interest income on loans that was only partially offset by higher interest expense on deposits. The following table provides highlights of the Community Banking segment of Northrim: Three Months Ended(Dollars in thousands, except per share data)December 31, 2024September 30, 2024June 30, 2024March 31, 2024December 31, 2023Net interest income$27,643 $25,928 $24,318 $24,215 $24,221 Provision (benefit) for credit losses771 1,492 (184)197 885 Other operating income2,535 3,507 2,450 2,468 2,741 Other operating expense19,116 18,723 18,068 17,177 18,158 Income before provision for income taxes10,291 9,220 8,884 9,309 7,919 Provision for income taxes1,474 2,133 1,786 1,966 1,604 Net income Community Banking segment$8,817 $7,087 $7,098 $7,343 $6,315 Weighted average shares outstanding, diluted5,597,889 5,583,055 5,558,580 5,554,930 5,578,491 Diluted earnings per share$1.58 $1.26 $1.27 $1.32 $1.14 Year Ended(Dollars in thousands, except per share data)December 31, 2024December 31, 2023Net interest income$102,104 $95,555 Provision for credit losses2,276 3,842 Other operating income10,960 9,130 Other operating expense73,085 69,253 Income before provision for income taxes37,703 31,590 Provision for income taxes7,359 6,175 Net income Community Banking segment$30,344 $25,415 Weighted average shares outstanding, diluted5,583,983 5,661,460 Diluted earnings per share$5.43 $4.49 Home Mortgage Lending During the fourth quarter of 2024, mortgage loans funded for sale decreased to $162.5 million, of which 89% was for home purchases, compared to $210.0 million and 94% of loans funded for home purchases in the third quarter of 2024, and increased as compared to $79.7 million, of which 96% was for home purchases in the fourth quarter of 2023. During the fourth quarter of 2024, the Bank purchased Residential Mortgage-originated mortgage loans to hold on the Bank's balance sheet of $23.4 million of which roughly two-thirds were jumbos and one-third were mortgages for second homes, with a weighted average interest rate of 6.30%, down from $38.1 million and 6.59% in the third quarter of 2024, and down from $27.1 million and 7.05% in the fourth quarter of 2023. Mortgage loans funded for investment has increased net interest income in the Home Mortgage Lending segment. Net interest income contributed $3.3 million to total revenue in the fourth quarter of 2024, up from $2.9 million in the prior quarter, and up from $2.3 million in the fourth quarter a year ago. The Arizona, Colorado, and the Pacific Northwest mortgage expansion markets were responsible for 19% of Residential Mortgage’s $186 million total production in the fourth quarter of 2024, 20% of the $248 million total production in the third quarter of 2024, and 11% of the $107 million in total production in the fourth quarter of 2023. The net change in fair value of mortgage servicing rights increased mortgage banking income by $873,000 during the fourth quarter of 2024 compared to a decrease of $968,000 for the third quarter of 2024 and a decrease of $1.0 million for the fourth quarter of 2023. In the fourth quarter of 2024, the Bank purchased an Alaska Housing Finance Corporation (AHFC) servicing portfolio from another financial institution for $2.3 million. At December 31, 2024, this servicing portfolio was valued at $3.1 million resulting in a $750,000 increase in fair value. Mortgage servicing revenue increased to $2.8 million in the fourth quarter of 2024 from $2.6 million in the prior quarter and increased from $2.2 million in the fourth quarter of 2023 due to an increase in production of AHFC mortgages, which contribute to servicing revenues at origination. In the fourth quarter of 2024, the Company’s mortgage servicing portfolio increased to $294.1 million, which includes the purchase of the AHFC servicing portfolio of $235.6 million, $86.3 million in new mortgage loans, net of amortization and payoffs of $27.8 million as compared to a net increase of $64.8 million in the third quarter of 2024 and $62.4 million in the fourth quarter of 2023. As of December 31, 2024, Northrim serviced 6,378 loans in its $1.46 billion home mortgage servicing portfolio, a 25% increase compared to the $1.17 billion serviced as of the end of the third quarter of 2024, and a 40% increase from the $1.04 billion serviced a year ago. The following table provides highlights of the Home Mortgage Lending segment of Northrim: Three Months Ended(Dollars in thousands, except per share data)December 31, 2024September 30, 2024June 30, 2024March 31, 2024December 31, 2023Mortgage loan commitments$32,299 $77,591 $88,006 $56,208 $22,926 Mortgage loans funded for sale$162,530 $209,960 $152,339 $84,324 $79,742 Mortgage loans funded for investment23,380 38,087 29,175 17,403 27,114 Total mortgage loans funded$185,910 $248,047 $181,514 $101,727 $106,856 Mortgage loan refinances to total fundings11%6%6%4%4%Mortgage loans serviced for others$1,460,720 $1,166,585 $1,101,800 $1,060,007 $1,044,516 Net realized gains on mortgage loans sold$3,747 $5,079 $3,188 $1,980 $1,462 Change in fair value of mortgage loan commitments, net(665)60 391 386 (296)Total production revenue3,082 5,139 3,579 2,366 1,166 Mortgage servicing revenue2,847 2,583 2,164 1,561 2,180 Change in fair value of mortgage servicing rights: Due to changes in model inputs of assumptions11,372 (566)239 289 (707)Other2(499)(402)(320)(314)(301)Total mortgage servicing revenue, net3,720 1,615 2,083 1,536 1,172 Other mortgage banking revenue238 293 222 129 99 Total mortgage banking income$7,040 $7,047 $5,884 $4,031 $2,437 Net interest income$3,280 $2,941 $2,775 $2,232 $2,276 Provision (benefit) for credit losses305 571 64 (48)— Mortgage banking income7,040 7,047 5,884 4,031 2,437 Other operating expense7,198 7,643 6,697 6,086 5,477 Income before provision for income taxes2,817 1,774 1,898 225 (764)Provision for income taxes842 497 532 63 (215)Net (loss) income Home Mortgage Lending segment$1,975 $1,277 $1,366 $162 ($549) Weighted average shares outstanding, diluted5,597,889 5,583,055 5,558,580 5,554,930 5,769,415 Diluted (loss) earnings per share$0.35 $0.23 $0.25 $0.03 ($0.10)1Principally reflects changes in discount rates and prepayment speed assumptions, which are primarily affected by changes in interest rates.2Represents changes due to collection/realization of expected cash flows over time. Year Ended(Dollars in thousands, except per share data)December 31, 2024December 31, 2023Mortgage loans funded for sale$609,153 $376,154 Mortgage loans funded for investment108,045 146,258 Total mortgage loans funded$717,198 $522,412 Mortgage loan refinances to total fundings7%4% Net realized gains on mortgage loans sold$13,994 $7,828 Change in fair value of mortgage loan commitments, net172 (102)Total production revenue14,166 7,726 Mortgage servicing revenue9,155 7,368 Change in fair value of mortgage servicing rights: Due to changes in model inputs of assumptions11,334 (922)Other2(1,535)(1,765)Total mortgage servicing revenue, net8,954 4,681 Other mortgage banking revenue882 356 Total mortgage banking income$24,002 $12,763 Net interest income$11,228 $7,298 Provision for credit losses892 — Mortgage banking income24,002 12,763 Other operating expense27,624 23,497 Income before provision for income taxes6,714 (3,436)Provision for income taxes1,934 (943)Net (loss) income Home Mortgage Lending segment$4,780 ($2,493) Weighted average shares outstanding, diluted5,583,983 5,661,460 Diluted (loss) earnings per share$0.86 ($0.44)1Principally reflects changes in discount rates and prepayment speed assumptions, which are primarily affected by changes in interest rates. 2Represents changes due to collection/realization of expected cash flows over time. Specialty Finance On October 31, 2024, the Company completed the acquisition of Sallyport Commercial Finance, LLC in an all cash transaction valued at approximately $53.9 million. Sallyport Commercial Finance, LLC is a leading provider of factoring, asset based lending and alternative working capital solutions to small and medium sized enterprises in the United States, Canada, and the United Kingdom. The Company determined that a new Specialty Finance segment was appropriate for the Company upon the completion of the acquisition. The Specialty Finance segment also includes Northrim Funding Services, a division of Northrim Bank that has offered factoring solutions to small businesses since 2004. The composition of revenues for the Specialty Finance segment are primarily purchased receivable income, but also include interest income and other fee income. The acquisition of Sallyport included $1.13 million in one-time deal related costs which are reflected in other operating expenses for the fourth quarter and full year of 2024 in the tables below. Total pre-tax income for Sallyport for two months of operations, excluding transaction costs was $945,000. The following table provides highlights of the Specialty Finance segment of Northrim: Three Months Ended(Dollars in thousands, except per share data)December 31, 2024September 30, 2024June 30, 2024March 31, 2024December 31, 2023Purchased receivable income$3,526 $1,033 $1,243 $1,345 $1,307 Other operating income(68)— — — — Interest income407 158 170 212 235 Total revenue3,865 1,191 1,413 1,557 1,542 Provision for credit losses125 — — — — Other operating expense3,063 362 429 374 358 Interest expense489 185 210 212 — Total expense3,677 547 639 586 358 Income before provision for income taxes188 644 774 971 1,184 Provision for income taxes53 183 218 276 337 Net income Specialty Finance segment$135 $461 $556 $695 $847 Weighted average shares outstanding, diluted5,597,889 5,583,055 5,558,580 5,554,930 5,578,491 Diluted earnings per share$0.02 $0.08 $0.10 $0.13 $0.15 Year Ended(Dollars in thousands, except per share data)December 31, 2024December 31, 2023Purchased receivable income$7,147 $4,482 Other operating income(68)— Interest income947 403 Total revenue8,026 4,885 Provision for credit losses125 — Other operating expense4,228 1,431 Interest expense1,096 — Total expense5,449 1,431 Income before provision for income taxes2,577 3,454 Provision for income taxes730 982 Net income Specialty Finance segment$1,847 $2,472 Weighted average shares outstanding, diluted5,583,983 5,661,460 Diluted earnings per share$0.33 $0.44 Balance Sheet Review Northrim’s total assets were $3.04 billion at December 31, 2024, up 3% from the preceding quarter and up 8% from a year ago. Northrim’s loan-to-deposit ratio was 79% at December 31, 2024, up from 76% at September 30, 2024, and 72% at December 31, 2023. At December 31, 2024, our liquid assets and investments and loans maturing within one year were $1.01 billion and our funds available for borrowing under our existing lines of credit were $566.8 million. Given these sources of liquidity and our expectations for customer demands for cash and for our operating cash needs, we believe our sources of liquidity to be sufficient for the foreseeable future. Average interest-earning assets were $2.79 billion in the fourth quarter of 2024, up 4% from $2.67 billion in the third quarter of 2024 and up 7% from $2.61 billion in the fourth quarter a year ago. The average yield on interest-earning assets was 6.02% in the fourth quarter of 2024, up from 5.92% in the preceding quarter and 5.51% in the fourth quarter a year ago. Average investment securities decreased to $565.8 million in the fourth quarter of 2024, compared to $619.0 million in the third quarter of 2024 and $690.7 million in the fourth quarter a year ago. The average net tax equivalent yield on the securities portfolio was 2.84% for the fourth quarter of 2024, up from 2.80% in the preceding quarter and up from 2.48% in the year ago quarter. The average estimated duration of the investment portfolio at December 31, 2024, was approximately 2.4 years down from approximately 2.8 years a year ago. As of December 31, 2024, $79.0 million of available for sale securities are scheduled to mature in the next six months, $55.8 million are scheduled to mature in six months to one year, and $189.3 million are scheduled to mature in the following year, representing a total of $324.0 million or 12% of earning assets that are scheduled to mature in the next 24 months. Total unrealized losses, net of tax, on available for sale securities increased by $678,000 in the fourth quarter of 2024 as compared to the prior quarter, and decreased by $9.1 million compared to the fourth quarter of 2023, resulting in a total unrealized loss of $8.3 million at December 31, 2024 compared to $7.6 million at September 30, 2024 and $17.4 million a year ago. The average maturity of the available for sale securities with the majority of the unrealized loss is 1.5 years at the end of 2024. Total unrealized losses on held to maturity securities were $1.0 million at December 31, 2024, compared to $2.1 million at September 30, 2024, and $3.3 million a year ago. Average interest bearing deposits in other banks increased to $72.2 million in the fourth quarter from $28.4 million in the third quarter of 2024 due to higher deposit balances and maturing portfolio investments. Average interest bearing deposits in other banks decreased in the fourth quarter of this year compared to $126.2 million in the fourth quarter of 2023 as cash was used to fund the growing loan portfolio. Portfolio loans were $2.13 billion at December 31, 2024, up 6% from the preceding quarter and up 19% from a year ago. Portfolio loans, excluding consumer mortgage loans, were $1.86 million at December 31, 2024, up 6% or $99.9 million from $1.76 billion in the preceding quarter and up 14% from a year ago. This increase was diversified throughout the loan portfolio including commercial real estate nonowner-occupied and multi-family loans increasing by $35.1 million, construction loans increasing by $28.7 million, commercial loans increasing $24.9 million, and commercial real estate owner-occupied loans increasing $7.2 million from the preceding quarter. Average portfolio loans in the fourth quarter of 2024 were $2.07 billion, which was up 7% from the preceding quarter and up 18% from a year ago. Yields on average portfolio loans in the fourth quarter of 2024 increased slightly to 6.93% from 6.91% in the third quarter of 2024 and increased from 6.55% in the fourth quarter of 2023. The increase in the yield on portfolio loans in the fourth quarter of 2024 compared to the third quarter of 2024 and the fourth quarter a year ago is primarily due to loan repricing due to the increases in interest rates and new loans booked at higher rates due to changes in the interest rate environment. The yield on new portfolio loans, excluding consumer mortgage loans, was 7.40% in the fourth quarter of 2024 as compared to 7.43% in the third quarter of 2024 and 8.07% in the fourth quarter of 2023. Alaskans continue to account for substantially all of Northrim’s deposit base. Total deposits were $2.68 billion at December 31, 2024, up 2% from $2.63 billion at September 30, 2024, and up 8% from $2.49 billion a year ago. “Our bankers are working hard to continue to bring over new relationships to the Bank, which is helping to magnify normal increases in deposit balances from our customers’ business cycles,” said Ballard. At December 31, 2024, 73% of total deposits were held in business accounts and 27% of deposit balances were held in consumer accounts. Northrim had approximately 34,000 deposit customers with an average balance of $61,000 as of December 31, 2024. Northrim had 26 customers with balances over $10 million as of December 31, 2024, which accounted for $612.9 million, or 24%, of total deposits. Demand deposits decreased by 8% from the prior quarter and decreased 6% year-over-year to $706.2 million at December 31, 2024. Demand deposits decreased to 27% of total deposits at December 31, 2024 compared to 29% at September 30, 2024 and 31% of total deposits at December 31, 2023. Average interest-bearing deposits were up 9% to $1.95 billion with an average cost of 2.15% in the fourth quarter of 2024, compared to $1.80 billion and an average cost of 2.24% in the third quarter of 2024, and up 13% compared to $1.72 billion and an average cost of 2.00% in the fourth quarter of 2023. Uninsured deposits totaled $1.08 billion or 40% of total deposits as of December 31, 2024 compared to $1.1 billion or 46% of total deposits as of December 31, 2022. As interest rates continued to increase in 2022, Northrim has taken a proactive, targeted approach to increase deposit rates. Shareholders’ equity was $267.1 million, or $48.41 book value per share, at December 31, 2024, compared to $260.1 million, or $47.27 book value per share, at September 30, 2024 and $234.7 million, or $42.57 book value per share, a year ago. Tangible book value per share* was $39.17 at December 31, 2024, compared to $44.36 at September 30, 2024, and $39.68 per share a year ago. The increase in shareholders’ equity in the fourth quarter of 2024 as compared to the third quarter of 2024 was largely the result of earnings of $10.9 million which was partially offset by dividends paid of $3.4 million and a decrease in the fair value of the available for sale securities portfolio, which decreased $678,000, net of tax. The Company did not purchase any shares of common stock in the fourth quarter of 2024 and had 110,000 shares remaining under the current share repurchase program as of December 31, 2024. Tangible common equity to tangible assets* was 7.23% as of December 31, 2024, compared to 8.28% as of September 30, 2024 and 7.84% as of December 31, 2023. The decrease in tangible common equity to tangible assets* was primarily due to $35.0 million of Goodwill booked as part of the acquisition of Sallyport. Northrim continues to maintain capital levels in excess of the requirements to be categorized as “well-capitalized” with Tier 1 Capital to Risk Adjusted Assets of 9.76% at December 31, 2024, compared to 11.53% at September 30, 2024, and 11.43% at December 31, 2023. Asset Quality Northrim believes it has a consistent lending approach throughout the economic cycles, which emphasizes appropriate loan-to-value ratios, adequate debt coverage ratios, and competent management. Nonperforming assets (“NPAs”) net of government guarantees were $11.6 million at December 31, 2024, up from $5.3 million at September 30, 2024 and from $5.8 million a year ago. Of the NPAs at December 31, 2024, $3.0 million, or 26% are nonaccrual loans related to three commercial relationships, $2.8 million, or 24% is related to a Sallyport nonaccrual loan, and $3.3 million, or 28% is related to one purchased receivable relationship. Net adversely classified loans were $9.6 million at December 31, 2024, as compared to $6.5 million at September 30, 2024, and $7.1 million a year ago. Adversely classified loans are loans that Northrim has classified as substandard, doubtful, and loss, net of government guarantees. Net loan recoveries were $51,000 in the fourth quarter of 2024, compared to net loan recoveries of $96,000 in the third quarter of 2024, and net loan charge-offs of $96,000 in the fourth quarter of 2023. Northrim had $138.0 million, or 6% of total portfolio loans, in the Healthcare sector; $117.0 million, or 5% of portfolio loans, in the Tourism sector; $104.3 million, or 5% in the Accommodations sector; $87.4 million, or 4% in Retail loans; $84.6 million, or 4% of portfolio loans, in the Aviation (non-tourism) sector; $76.5 million, or 4% in the Fishing sector; and $55.1 million, or 3% in the Restaurants and Breweries sector as of December 31, 2024. Northrim estimates that $99.7 million, or approximately 5% of portfolio loans, had direct exposure to the oil and gas industry in Alaska, as of December 31, 2024, and $1.6 million of these loans are adversely classified. As of December 31, 2024, Northrim has an additional $45.8 million in unfunded commitments to companies with direct exposure to the oil and gas industry in Alaska, and none of these unfunded commitments are considered to be adversely classified loans. Northrim defines direct exposure to the oil and gas sector as loans to borrowers that provide oilfield services and other companies that have been identified as significantly reliant upon activity in Alaska related to the oil and gas industry, such as lodging, equipment rental, transportation and other logistics services specific to this industry. About Northrim BanCorp Northrim BanCorp, Inc. is the parent company of Northrim Bank, an Alaska-based community bank with 20 branches throughout the state and differentiates itself with its detailed knowledge of Alaska’s economy and its “Customer First Service” philosophy. The Bank has two wholly-owned subsidiaries, Sallyport Commercial Finance, LLC, a specialty finance company and Residential Mortgage Holding Company, LLC, a regional home mortgage company. Pacific Wealth Advisors, LLC is an affiliated company. www.northrim.com Forward-Looking Statement This release may contain “forward-looking statements” as that term is defined for purposes of Section 21E of the Securities Exchange Act of 1934, as amended. These statements are, in effect, management’s attempt to predict future events, and thus are subject to various risks and uncertainties. Readers should not place undue reliance on forward-looking statements, which reflect management’s views only as of the date hereof. All statements, other than statements of historical fact, regarding our financial position, business strategy, management’s plans and objectives for future operations are forward-looking statements. When used in this report, the words “anticipate,” “believe,” “estimate,” “expect,” and “intend” and words or phrases of similar meaning, as they relate to Northrim and its management are intended to help identify forward-looking statements. Although we believe that management’s expectations as reflected in forward-looking statements are reasonable, we cannot assure readers that those expectations will prove to be correct. Forward-looking statements, are subject to various risks and uncertainties that may cause our actual results to differ materially and adversely from our expectations as indicated in the forward-looking statements. These risks and uncertainties include: descriptions of Northrim’s and Sallyport’s financial condition, results of operations, asset based lending volumes, asset and credit quality trends and profitability and statements about the expected financial benefits and other effects of the acquisition of Sallyport by Northrim Bank; expected cost savings, synergies and other financial benefits from the acquisition of Sallyport by Northrim Bank might not be realized within the expected time frames and costs or difficulties relating to integration matters might be greater than expected; the ability of Northrim and Sallyport to execute their respective business plans; potential further increases in interest rates; the value of securities held in our investment portfolio; the impact of the results of government initiatives on the regulatory landscape, natural resource extraction industries, and capital markets; the impact of declines in the value of commercial and residential real estate markets, high unemployment rates, inflationary pressures and slowdowns in economic growth; changes in banking regulation or actions by bank regulators; inflation, supply-chain constraints, and potential geopolitical instability, including the wars in Ukraine and the Middle East; financial stress on borrowers (consumers and businesses) as a result of higher rates or an uncertain economic environment; the general condition of, and changes in, the Alaska economy; our ability to maintain or expand our market share or net interest margin; the sufficiency of our provision for credit losses and the accuracy of the assumptions or estimates used in preparing our financial statements, including those related to current expected credit losses accounting guidance; our ability to maintain asset quality; our ability to implement our marketing and growth strategies; our ability to identify and address cyber-security risks, including security breaches, “denial of service attacks,” “hacking,” and identity theft; disease outbreaks; and our ability to execute our business plan. Further, actual results may be affected by competition on price and other factors with other financial institutions; customer acceptance of new products and services; the regulatory environment in which we operate; and general trends in the local, regional and national banking industry and economy. In addition, there are risks inherent in the banking industry relating to collectability of loans and changes in interest rates. Many of these risks, as well as other risks that may have a material adverse impact on our operations and business, are identified in the “Risk Factors” section of our Annual Report on Form 10-K for the fiscal year ended December 31, 2023, and from time to time are disclosed in our other filings with the Securities and Exchange Commission. However, you should be aware that these factors are not an exhaustive list, and you should not assume these are the only factors that may cause our actual results to differ from our expectations. These forward-looking statements are made only as of the date of this release, and Northrim does not undertake any obligation to release revisions to these forward-looking statements to reflect events or conditions after the date of this release. References: https://www.bea.gov/ http://almis.labor.state.ak.us/ http://www.tax.alaska.gov/programs/oil/prevailing/ans.aspx http://www.tax.state.ak.us/ www.mba.org https://www.alaskarealestate.com/MLSMember/RealEstateStatistics.aspx https://www.capitaliq.spglobal.com/web/client?auth=inherit&overridecdc=1&#markets/indexFinancials Income Statement (Dollars in thousands, except per share data)Three Months Ended Year-to-date(Unaudited)December 31,September 30,December 31, December 31,December 31, 202420242023 20242023Interest Income: Interest and fees on loans$37,059 $34,863 $29,508 $134,739 $108,612 Interest on investments3,844 4,164 4,677 16,838 18,695 Interest on deposits in banks883 389 1,743 2,342 4,644 Total interest income41,786 39,416 35,928 153,919 131,951 Interest Expense: Interest expense on deposits10,568 10,123 8,676 39,347 26,511 Interest expense on borrowings377 451 520 1,389 2,184 Total interest expense10,945 10,574 9,196 40,736 28,695 Net interest income30,841 28,842 26,732 113,183 103,256 Provision for credit losses1,201 2,063 885 3,293 3,842 Net interest income after provision for loan losses29,640 26,779 25,847 109,890 99,414 Other Operating Income: Mortgage banking income7,040 7,047 2,437 24,002 12,763 Purchased receivable income3,526 1,033 1,307 7,146 4,482 Bankcard fees1,148 1,196 946 4,366 3,862 Service charges on deposit accounts622 605 532 2,348 2,044 Gain on sale of securities112 — — 112 — Unrealized gain (loss) on marketable equity securities(364)576 565 465 120 Other income949 1,130 698 3,602 3,104 Total other operating income13,033 11,587 6,485 42,041 26,375 Other Operating Expense: Salaries and other personnel expense18,254 17,549 15,417 67,847 61,741 Data processing expense3,108 2,618 2,500 10,986 9,821 Occupancy expense1,893 1,911 1,783 7,609 7,394 Professional and outside services1,967 903 802 4,351 3,128 Marketing expense965 860 933 3,028 2,929 Insurance expense894 596 675 2,961 2,519 OREO expense, net rental income and gains on sale2 2 (28) (385)(794)Intangible asset amortization expense— — 6 — 17 Other operating expense2,294 2,289 1,905 8,540 7,426 Total other operating expense29,377 26,728 23,993 104,937 94,181 Income before provision for income taxes13,296 11,638 8,339 46,994 31,608 Provision for income taxes2,369 2,813 1,726 10,023 6,214 Net income$10,927 $8,825 $6,613 $36,971 $25,394 Basic EPS$1.99 $1.60 $1.19 $6.72 $4.53 Diluted EPS$1.95 $1.57 $1.19 $6.62 $4.49 Weighted average common shares outstanding, basic5,509,078 5,501,943 5,513,041 5,502,797 5,601,471 Weighted average shares outstanding, diluted5,597,889 5,583,055 5,578,491 5,583,983 5,661,460 Balance Sheet (Dollars in thousands) (Unaudited)December 31,September 30,December 31, 202420242023 Assets: Cash and due from banks$42,101 $42,805 $27,457 Interest bearing deposits in other banks20,635 60,071 91,073 Investment securities available for sale, at fair value478,617 545,210 637,936 Investment securities held to maturity36,750 36,750 36,750 Marketable equity securities, at fair value8,719 12,957 13,153 Investment in Federal Home Loan Bank stock5,331 4,318 2,980 Loans held for sale59,957 97,937 31,974 Portfolio loans2,129,263 2,007,565 1,789,497 Allowance for credit losses, loans(22,020)(19,528)(17,270)Net portfolio loans2,107,243 1,988,037 1,772,227 Purchased receivables, net74,078 23,564 36,842 Mortgage servicing rights, at fair value26,439 21,570 19,564 Premises and equipment, net37,757 39,625 40,693 Operating lease right-of-use assets7,455 7,616 9,092 Goodwill and intangible assets50,968 15,967 15,967 Other assets85,819 66,965 71,789 Total assets$3,041,869 $2,963,392 $2,807,497 Liabilities: Demand deposits$706,225 $763,595 $749,683 Interest-bearing demand1,108,404 979,238 927,291 Savings deposits250,900 245,043 255,338 Money market deposits196,290 201,821 221,492 Time deposits418,370 435,870 331,251 Total deposits2,680,189 2,625,567 2,485,055 Other borrowings23,045 13,354 13,675 Junior subordinated debentures10,310 10,310 10,310 Operating lease liabilities7,487 7,635 9,092 Other liabilities53,722 46,476 54,647 Total liabilities2,774,753 2,703,342 2,572,779 Shareholders’ Equity: Total shareholders’ equity267,116 260,050 234,718 Total liabilities and shareholders’ equity$3,041,869 $2,963,392 $2,807,497 Additional Financial Information (Dollars in thousands) (Unaudited) Composition of Portfolio Loans December 31, 2024 September 30, 2024 June 30, 2024 March 31, 2024 December 31, 2023 Balance% of total Balance% of total Balance% of total Balance% of total Balance% of totalCommercial loans$518,148 24% $492,414 24% $495,781 26% $475,220 26% $486,057 27%Commercial real estate: Owner occupied properties420,060 20% 412,827 20% 383,832 20% 372,507 20% 368,357 20%Nonowner occupied and multifamily properties619,431 29% 584,302 31% 551,130 30% 529,904 30% 519,115 30%Residential real estate: 1-4 family properties secured by first liens270,535 13% 248,514 12% 222,026 12% 218,552 12% 203,534 11%1-4 family properties secured by junior liens & revolving secured by first liens48,857 2% 45,262 2% 41,258 2% 35,460 2% 33,783 2%1-4 family construction39,789 2% 39,794 2% 29,510 2% 27,751 2% 31,239 2%Construction loans214,068 10% 185,362 9% 154,009 8% 153,537 8% 149,788 8%Consumer loans7,562 —% 7,836 —% 6,679 —% 6,444 —% 6,180 —%Subtotal2,138,450 2,016,311 1,884,225 1,819,375 1,798,053 Unearned loan fees, net(9,187) (8,746) (8,318) (8,240) (8,556) Total portfolio loans$2,129,263 $2,007,565 $1,875,907 $1,811,135 $1,789,497 Composition of Deposits December 31, 2024 September 30, 2024 June 30, 2024 March 31, 2024 December 31, 2023 Balance% of total Balance% of total Balance% of total Balance% of total Balance% of totalDemand deposits$706,225 27% $763,595 29% $704,471 29% $714,244 29% $749,683 31%Interest-bearing demand1,108,404 41% 979,238 37% 906,010 36% 889,581 37% 927,291 37%Savings deposits250,900 9% 245,043 9% 238,156 10% 246,902 10% 255,338 10%Money market deposits196,290 7% 204,821 8% 195,159 8% 209,785 9% 221,492 9%Time deposits418,370 16% 435,870 17% 420,010 17% 373,571 15% 331,251 13%Total deposits$2,680,189 $2,628,567 $2,463,806 $2,434,083 $2,485,055 Additional Financial Information (Dollars in thousands) (Unaudited) Asset QualityDecember 31,September 30,December 31, 202420242023 Nonaccrual loans$7,516 $4,944 $6,069 Loans 90 days past due and accruing17 17 — Total nonperforming loans7,533 4,961 6,069 Nonperforming loans guaranteed by government— — (1,067) Net nonperforming loans7,533 4,961 5,002 Repossessed assets297 297 — Nonperforming purchased receivables3,768 — 808 Net nonperforming assets$11,598 $5,258 $5,810 Nonperforming loans, net of government guarantees / portfolio loans0.35%0.25%0.28% Nonperforming loans, net of government guarantees / portfolio loans, net of government guarantees0.38%0.26%0.30% Nonperforming assets, net of government guarantees / total assets0.38%0.18%0.21% Nonperforming assets, net of government guarantees / total assets net of government guarantees0.40%0.19%0.21% Adversely classified loans, net of government guarantees$9,636 $6,503 $7,057 Special mention loans, net of government guarantees$19,769 $9,641 $6,580 Loans 30-89 days past due and accruing, net of government guarantees / portfolio loans0.03%0.08%0.03% Loans 30-89 days past due and accruing, net of government guarantees / portfolio loans, net of government guarantees0.03%0.09%0.03% Allowance for credit losses - loans / portfolio loans1.03%0.97%0.97% Allowance for credit losses - loans / portfolio loans, net of government guarantees1.10%1.04%1.02% Allowance for credit losses - loans / nonperforming loans, net of government guarantees292%394%345% Allowance for credit losses - purchased receivables / purchased receivables4.69%—%—% Allowance for credit losses - purchased receivables / nonperforming purchased receivables97%—%—% Gross loan charge-offs for the quarter$149 $15 $281 Gross loan recoveries for the quarter($200)($111)($185) Net loan (recoveries) charge-offs for the quarter($51)($96)$96 Net loan (recoveries) charge-offs year-to-date($215)($164)($38) Net loan (recoveries) charge-offs for the quarter / average loans, for the quarter0.00%0.00%0.01% Net loan (recoveries) charge-offs year-to-date / average loans, year-to-date annualized(0.01)%(0.01)%0.00% Additional Financial Information (Dollars in thousands) (Unaudited) Average Balances, Yields, and Rates Three Months Ended December 31, 2024 September 30, 2024 December 31, 2023 Average Average Average AverageTax Equivalent AverageTax Equivalent AverageTax Equivalent BalanceYield/Rate BalanceYield/Rate BalanceYield/RateAssets Interest bearing deposits in other banks$72,212 4.72% $28,409 5.28% $126,174 5.40%Portfolio investments565,785 2.84% 619,012 2.80% 690,659 2.48%Loans held for sale83,304 5.97% 93,689 6.20% 45,732 6.55%Portfolio loans2,066,216 6.93% 1,933,181 6.91% 1,749,732 6.55%Total interest-earning assets2,787,517 6.02% 2,674,291 5.92% 2,612,297 5.51%Nonearning assets251,364 196,266 214,934 Total assets$3,038,881 $2,870,557 $2,827,231 Liabilities and Shareholders’ Equity Interest-bearing deposits$1,954,495 2.15% $1,796,107 2.24% $1,724,409 2.00%Borrowings29,251 3.95% 43,555 4.07% 47,964 4.25%Total interest-bearing liabilities1,983,746 2.18% 1,839,662 2.29% 1,772,373 2.06% Noninterest-bearing demand deposits738,911 722,000 760,566 Other liabilities49,815 52,387 63,321 Shareholders’ equity266,409 256,508 230,971 Total liabilities and shareholders’ equity$3,038,881 $2,870,557 $2,827,231 Net spread 3.84% 3.63% 3.45%NIM 4.41% 4.29% 4.06%NIMTE* 4.47% 4.35% 4.12%Cost of funds 1.59% 1.64% 1.44%Average portfolio loans to average interest-earning assets74.12% 72.29% 66.98% Average portfolio loans to average total deposits76.71% 76.77% 70.41% Average non-interest deposits to average total deposits27.43% 28.67% 30.61% Average interest-earning assets to average interest-bearing liabilities140.52% 145.37% 147.39% Additional Financial Information (Dollars in thousands) (Unaudited) Average Balances, Yields, and Rates Year-to-date December 31, 2024 December 31, 2023 Average Average AverageTax Equivalent AverageTax Equivalent BalanceYield/Rate BalanceYield/RateAssets Interest bearing deposits in other banks$44,913 5.09% $91,161 5.02%Portfolio investments623,756 2.82% 715,367 2.43%Loans held for sale68,790 6.08% 41,769 6.19%Portfolio loans1,910,156 6.87% 1,643,943 6.49%Total interest-earning assets2,647,615 5.86% 2,492,240 5.36%Nonearning assets213,397 198,107 Total assets$2,861,012 $2,690,347 Liabilities and Shareholders’ Equity Interest-bearing deposits$1,802,286 2.18% $1,614,386 1.64%Borrowings33,799 3.81% 51,038 4.24%Total interest-bearing liabilities1,836,085 2.21% 1,665,424 1.72% Noninterest-bearing demand deposits718,163 749,859 Other liabilities55,265 47,820 Shareholders’ equity251,499 227,244 Total liabilities and shareholders’ equity$2,861,012 $2,690,347 Net spread 3.65% 3.64%NIM 4.28% 4.14%NIMTE* 4.33% 4.21%Cost of funds 1.59% 1.19%Average portfolio loans to average interest-earning assets72.15% 65.96% Average portfolio loans to average total deposits75.79% 69.53% Average non-interest deposits to average total deposits28.49% 31.72% Average interest-earning assets to average interest-bearing liabilities144.20% 149.65% Additional Financial Information (Dollars in thousands, except per share data) (Unaudited) Capital Data (At quarter end) December 31, 2024 September 30, 2024 December 31, 2023Book value per share$48.41 $47.27 $42.57 Tangible book value per share*$39.17 $44.36 $39.68 Total shareholders’ equity/Total assets8.78% 8.78% 8.36%Tangible common equity/Tangible assets*7.23% 8.28% 7.84%Tier 1 capital / Risk adjusted assets9.76% 11.53% 11.43%Total capital / Risk adjusted assets10.94% 12.50% 12.35%Tier 1 capital / Average assets7.68% 9.08% 8.72%Common shares outstanding5,518,210 5,501,943 5,513,459 Unrealized gain on AFS debt securities, net of income taxes($8,295) ($7,617) ($17,415)Unrealized (loss) on derivatives and hedging activities, net of income taxes$1,272 $863 $978 Profitability Ratios December 31, 2024 September 30, 2024 June 30, 2024 March 31, 2024 December 31, 2023For the quarter: NIM4.41% 4.29% 4.24% 4.16% 4.06%NIMTE* 4.47% 4.35% 4.30% 4.22% 4.12%Efficiency ratio66.96% 66.11% 68.78% 68.93% 72.21%Return on average assets1.43% 1.22% 1.31% 1.19% 0.93%Return on average equity16.32% 13.69% 14.84% 13.84% 11.36% December 31, 2024 December 31, 2023Year-to-date: NIM4.28% 4.14%NIMTE* 4.33% 4.21%Efficiency ratio67.60% 72.64%Return on average assets1.29% 0.94%Return on average equity14.70% 11.17% *Non-GAAP Financial Measures (Dollars and shares in thousands, except per share data) (Unaudited) Non-GAAP financial measures have inherent limitations, are not required to be uniformly applied, and are not audited. Although we believe these non-GAAP financial measures are frequently used by stakeholders in the evaluation of the Company, they have limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of results as reported under GAAP. Net interest margin on a tax equivalent basis Net interest margin on a tax equivalent basis ("NIMTE") is a non-GAAP performance measurement in which interest income on non-taxable investments and loans is presented on a tax equivalent basis using a combined federal and state statutory rate of 28.43% in both 2023 and 2022. The most comparable GAAP measure is net interest margin and the following table sets forth the reconciliation of NIMTE to net interest margin. Three Months Ended December 31, 2024 September 30, 2024 June 30, 2024 March 31, 2024 December 31, 2023Net interest income$30,841 $28,842 $27,053 $26,447 $26,732 Divided by average interest-bearing assets2,787,517 2,674,291 2,568,266 2,558,558 2,612,297 Net interest margin ("NIM")24.41% 4.29% 4.24% 4.16% 4.06% Net interest income$30,841 $28,842 $27,053 $26,447 $26,732 Plus: reduction in tax expense related to tax-exempt interest income379 385 378 379 374 $31,220 $29,227 $27,431 $26,826 $27,106 Divided by average interest-bearing assets2,787,517 2,674,291 2,568,266 2,558,558 2,612,297 NIMTE24.47% 4.35% 4.30% 4.22% 4.12% Year-to-date December 31, 2024 December 31, 2023Net interest income$113,183 $103,256 Divided by average interest-bearing assets2,647,615 2,492,240 Net interest margin ("NIM")34.28% 4.14% Net interest income$113,183 $103,256 Plus: reduction in tax expense related to tax-exempt interest income1,521 1,576 $114,704 $104,832 Divided by average interest-bearing assets2,647,615 2,492,240 NIMTE34.33% 4.21% 2Calculated using actual days in the quarter divided by 366 for the quarters ended in 2024 and 365 for the quarters ended in 2023, respectively. 3Calculated using actual days in the year divided by 366 for year-to-date period in 2024 and 365 for year-to-date period in 2023, respectively. *Non-GAAP Financial Measures (Dollars and shares in thousands, except per share data) (Unaudited) Tangible Book Value Tangible book value is a non-GAAP measure defined as shareholders’ equity, less intangible assets, divided by common shares outstanding. The most comparable GAAP measure is book value per share and the following table sets forth the reconciliation of tangible book value per share and book value per share. December 31, 2024 September 30, 2024 June 30, 2024 March 31, 2024 December 31, 2023 Total shareholders’ equity$267,116 $260,050 $247,200 $239,327 $234,718 Divided by common shares outstanding5,518 5,502 5,502 5,500 5,513 Book value per share$48.41 $47.26 $44.93 $43.52 $42.57 December 31, 2024 September 30, 2024 June 30, 2024 March 31, 2024 December 31, 2023 Total shareholders’ equity$267,116 $260,050 $247,200 $239,327 $234,718 Less: goodwill and intangible assets50,968 15,967 15,967 15,967 15,967 $216,148 $244,083 $231,233 $223,360 $218,751 Divided by common shares outstanding5,518 5,502 5,502 5,500 5,513 Tangible book value per share$39.17 $44.36 $43.52 $40.61 $39.68 Tangible Common Equity to Tangible Assets Tangible common equity to tangible assets is a non-GAAP ratio that represents total equity less goodwill and intangible assets divided by total assets less goodwill and intangible assets. The most comparable GAAP measure of shareholders' equity to total assets is calculated by dividing total shareholders’ equity by total assets and the following table sets forth the reconciliation of tangible common equity to tangible assets and shareholders’ equity to total assets. Northrim BanCorp, Inc. December 31, 2024 September 30, 2024 June 30, 2024 March 31, 2024 December 31, 2023 Total shareholders’ equity$267,116 $260,050 $247,200 $239,327 $234,718 Total assets3,041,869 2,963,392 2,821,668 2,759,560 2,807,497 Total shareholders’ equity to total assets8.78% 8.78% 8.76% 8.67% 8.36% Northrim BanCorp, Inc. December 31, 2024 September 30, 2024 June 30, 2024 March 31, 2024 December 31, 2023Total shareholders’ equity$267,116 $260,050 $247,200 $239,327 $234,718 Less: goodwill and other intangible assets, net50,968 15,967 15,967 15,967 15,967 Tangible common shareholders’ equity$216,148 $244,083 $231,233 $223,360 $218,751 Total assets$3,041,869 $2,963,392 $2,821,668 $2,759,560 $2,807,497 Less: goodwill and other intangible assets, net50,968 15,967 15,967 15,967 15,967 Tangible assets$2,990,901 $2,947,425 $2,805,701 $2,743,593 $2,791,530 Tangible common equity ratio7.23% 8.28% 8.24% 8.14% 7.84% Note Transmitted on GlobeNewswire on January 24, 2025, at 12:15 pm Alaska Standard Time. Contact:Mike Huston, President, CEO, and COO (907) 261-8750 Jed Ballard, Chief Financial Officer (907) 261-3539

Northrim BanCorp Earns $10.9 Million, or $1.95 Per Diluted Share, in Fourth Quarter 2024, and $37.0 Million, or $6.62 Per Diluted Share, for the Year Ended December 31, 2024

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