Northrim BanCorp Earns $11.8 Million, or $2.09 Per Diluted Share, in Second Quarter 2025

ANCHORAGE, Alaska, July 23, 2025 (GLOBE NEWSWIRE) -- Northrim BanCorp, Inc. (NASDAQ:NRIM) (“Northrim” or the “Company”) today reported net income of $11.8 million, or $2.09 per diluted share, in the second quarter of 2025, compared to $13.3 million, or $2.38 per diluted share, in the first quarter of 2025, and $9.0 million, or $1.62 per diluted share, in the second quarter a year ago. The increase in second quarter 2025 profitability as compared to the second quarter a year ago was primarily the result of an increase in net interest income, higher purchased receivable income, and increased mortgage banking income, which were partially offset by a higher provision for credit losses, higher other operating expenses, and a higher provision for income taxes. Net interest income increased primarily due to higher loan balances and higher yields on earning assets. Purchased receivable income increased primarily due to the Company’s acquisition of Sallyport Commercial Finance, LLC (“Sallyport or SCF”), which was completed on October 31, 2024. Sallyport and its direct and indirect subsidiaries provide services and products related to purchased receivable factoring and asset-based lending in the United States, Canada, and the United Kingdom. Dividends per share in the second quarter of 2025 remained consistent with the first quarter of 2025 at $0.64 per share as compared to $0.61 per share in the second quarter of 2024. “Strong loan growth, increasing asset yields, and stable funding costs drove record net interest income in the second quarter of this year,” said Mike Huston, Northrim’s President and Chief Executive Officer. “We continue to attract new customers to Northrim and believe we have an opportunity to steadily increase our market share over the next few years.” Second Quarter 2025 Highlights: Net interest income in the second quarter of 2025 increased 7% to $33.6 million compared to $31.3 million in the first quarter of 2025 and increased 24% compared to $27.1 million in the second quarter of 2024.Net interest margin on a tax equivalent basis (“NIMTE”)* was 4.72% for the second quarter of 2025, up 11-basis points from the first quarter of 2025 and up 42-basis points from the second quarter a year ago.Return on average assets (“ROAA”) was 1.48% and return on average equity (“ROAE”) was 16.37% for the second quarter of 2025 compared to ROAA of 1.76 and ROAE of 19.70 in the prior quarter and ROAA of 1.31% and ROAE of 14.84% for the second quarter of 2024.Portfolio loans were $2.20 billion at June 30, 2025, up 4% from the preceding quarter and up 17% from a year ago, primarily due to new customer relationships and expanding market share, as well as retaining certain mortgages originated by Residential Mortgage, a subsidiary of Northrim Bank (the “Bank”). The Company sold $61 million in consumer mortgages in the second quarter of 2025 that were included in loans held for investment as of the end of 2024 to reduce the concentration of residential real estate loans and to provide additional liquidity for future commercial and construction loan growth.Total deposits were $2.81 billion at June 30, 2025, up 1% from the preceding quarter, and up 14% from $2.46 billion a year ago. Non-interest bearing demand deposits increased 5% from the preceding quarter and increased 10% year-over-year to $777.9 million at June 30, 2025 and represent 28% of total deposits.The average cost of interest-bearing deposits was 2.04% at June 30, 2025, up slightly from 2.01% at March 31, 2025 and down from 2.21% at June 30, 2024.Mortgage loan originations were $277.1 million in the second quarter of 2025, up from $121.6 million in the first quarter of 2025 and up from $181.5 million in the second quarter a year ago. Mortgage loans funded for sale were $249.7 million in the second quarter of 2025, compared to $108.5 million in the first quarter of 2025 and $152.3 million in the second quarter of 2024. Financial HighlightsThree Months Ended(Dollars in thousands, except per share data)June 30, 2025March 31, 2025December 31, 2024September 30, 2024June 30, 2024Total assets$3,243,760 $3,140,960 $3,041,869 $2,963,392 $2,821,668 Total portfolio loans$2,202,115 $2,124,330 $2,129,263 $2,007,565 $1,875,907 Total deposits$2,809,170 $2,777,977 $2,680,189 $2,625,567 $2,463,806 Total shareholders’ equity$290,219 $279,756 $267,116 $260,050 $247,200 Net income$11,778 $13,324 $10,927 $8,825 $9,020 Diluted earnings per share$2.09 $2.38 $1.95 $1.57 $1.62 Return on average assets 1.48% 1.76% 1.43% 1.22% 1.31%Return on average shareholders’ equity 16.37% 19.70% 16.32% 13.69% 14.84%NIM 4.66% 4.55% 4.41% 4.29% 4.24%NIMTE* 4.72% 4.61% 4.47% 4.35% 4.30%Efficiency ratio 64.68% 63.54% 66.96% 66.11% 68.78%Total shareholders’ equity/total assets 8.95% 8.91% 8.78% 8.78% 8.76%Tangible common equity/tangible assets* 7.50% 7.41% 7.23% 8.28% 8.24%Book value per share$52.55 $50.67 $48.41 $47.27 $44.93 Tangible book value per share*$43.35 $41.47 $39.17 $44.36 $42.03 Dividends per share$0.64 $0.64 $0.62 $0.62 $0.61 Common stock outstanding 5,522,271 5,520,892 5,518,210 5,501,943 5,501,562 * References to NIMTE, tangible book value per share, and tangible common equity to tangible common assets, (both 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. See the end of this release for reconciliations of these non-GAAP financial measures to GAAP financial measures. Alaska Economic Update(Note: sources for information included in this section are included on page 14.) The Alaska Department of Labor (“DOL”) has reported Alaska’s seasonally adjusted unemployment rate in May of 2025 was 4.7% compared to the U.S. rate of 4.2%. The rate has held steady in Alaska at 4.7% for eight consecutive months. The total number of payroll jobs in Alaska, not including uniformed military, increased 1.1% or 3,800 jobs between May of 2024 and May of 2025. According to the DOL, the Oil and Gas sector had the largest growth rate in new jobs of 8.8% through May of this year compared to the prior year, up 700 direct jobs. The Construction sector added 700 positions for a year-over-year growth rate of 3.7% through May of 2025. The larger Health Care sector grew by 1,200 jobs for an annual growth rate of 2.9%. Transportation, Warehousing and Utilities added 600 jobs for a 2.3% growth rate over the same period. Professional and Business Services increased 500 jobs year-over-year through May of 2025, up 1.7%. The Government sector grew by 200 jobs for 0.2% growth, adding 400 State positions while losing 200 Federal jobs in Alaska over the same period. Declining sectors between May 2024 and May 2025 were Information down 100 jobs or (-2.3%), Manufacturing (primarily seafood processing) shrinking 200 positions (-2.1%), Wholesale Trade lost 100 jobs (-1.5%) and Financial Activities, down 100 jobs (-0.9%). Alaska’s seasonally adjusted personal income was $57.4 billion in the first quarter of 2025 according to the Federal Bureau of Economic Analysis (“BEA”). This was an annualized improvement in the first quarter of 6.4% for Alaska, compared to the national average of 6.7%. Alaska enjoyed an annual personal income improvement of 6% in 2024 compared to the U.S. increase of 5.4%, ranking Alaska 6th best in the nation. The $885 million increase in personal income in the first quarter of 2025 in Alaska came from a $352 million increase in net earnings from wages, $440 million growth in government transfer receipts, and a $92 million increase in investment income. Alaska’s Gross State Product (“GSP”) in the first quarter of 2025 reached $72 billion according to the BEA. Alaska’s inflation adjusted “real” GSP increased 1.5% in 2024 and decreased -1.8% annualized in the first quarter of 2025. The average U.S. GDP growth rate was 2.8% for 2025 and -0.5% in the first quarter of 2025. Alaska’s real GSP decrease in the first quarter of 2025 was primarily caused by a decrease in the Mining, Oil & Gas sector, somewhat offset by improvements in the Construction sector. Alaska exported $5.9 billion in goods to foreign countries in 2024 according to the U.S. International Trade Administration. China is the largest importer of Alaska’s products at $1.5 billion, followed by Australia at $804 million, Japan at $674 million and South Korea at $634 million in 2024. Fish and related maritime products accounted for the largest volume at $2.1 billion, followed by minerals and ores at $2 billion, and primary metals at $992 million in 2024. Oil & Gas exports are $380 million because the majority of Alaska’s production is refined and consumed in the United States. Chief Credit Officer and Bank Economist Mark Edwards stated, “President Trump’s significant changes to international tariffs has created uncertainty in trade markets. At this time, it is unknown how each country will respond. Alaska’s natural resources are highly valued commodities throughout the world. If issues arise with one country, such as China, it is most likely that Alaska’s products will be redirected to other markets like Japan and South Korea or sold domestically in the United States. Canada is the largest long-term investor in Alaska’s mining industry. This involves significant fixed capital investments made over decades that are unlikely to shift dramatically in the short-run. Alaska’s Legislature just passed a bill HJR-11 with an approval vote of 33-4 titled, Recognizing and honoring the relationship between Canada and Alaska. It highlights the deeply interconnected friendship between Alaska and Canada culturally, economically, and militarily.” According to the US Bureau of Labor Statistics, the Consumer Price Index ("CPI") for the U.S. increased 2.7% between June of 2024 and June of 2025. In Alaska, the rate of CPI increase was lower at 1.6% for the same time period. Food and beverage, housing costs, and medical care costs were the largest causes for inflation. Declining motor fuel prices, transportation, recreation and household furnishing costs have helped moderate inflationary pressures in Alaska. The monthly average price of Alaska North Slope (“ANS”) crude oil has ranged between $76.39 a barrel in January of 2025 and $67.07 in May of the prior year. The June 2025 average was $72.62. 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. Production rose to 469 thousand bpd in fiscal year ending June 30, 2025. In the Spring 2025 Revenue Forecast published March 12, 2025, the DOR expects production to continue to grow to 663 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 developing the large new Willow field. There are also a number of smaller new fields in the ANS that are contributing to the State of Alaska’s production growth estimates. The Alaska Permanent Fund is seeded annually by the oil wealth the State continues to save each year and has grown significantly over 40 years of successful investment. As of May 31, 2025 the fund's value was $83.13 billion. According to the DOR it is scheduled to contribute $3.7 billion to Alaska General Fund in fiscal year 2025 for general government spending and to pay the annual dividend to Alaskan residents. According to the Alaska Multiple Listing Services, the average sales price of a single family home in Anchorage rose 6.2% in 2024 to $510,064, following a 5.2% increase in 2023. This was the seventh consecutive year of price increases. Through June of 2025 prices have continued to increase on average 2.6% to $523,059. The average sales price for single family homes in the Matanuska Susitna Borough rose 3.8% in 2024 to $412,859, after increasing 4% in 2023. This continues a trend of average price increases for more than a decade in the region. Through June of 2025 prices have continued to increase on average 6.9% to $441,463. 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. The first six months of 2025 has seen a 4.8% increase in home sales compared to the first half of 2024 in Anchorage. 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%. In the first six months of 2025 the number of units sold has increased 13.1% in the Matanuska Susitna Borough compared to the first half of 2024. 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 second quarter of 2025, Northrim generated a ROAA of 1.48% and a ROAE of 16.37%, compared to 1.76% and 19.70%, respectively, in the first quarter of 2025 and 1.31% and 14.84%, respectively, in the second quarter a year ago. Net Interest Income/Net Interest Margin Net interest income increased 7% to $33.6 million in the first quarter of 2025 compared to $31.3 million in the first quarter of 2025 and increased 24% compared to $27.1 million in the second quarter of 2024. Interest expense on deposits increased to $10.3 million in the second quarter of 2025 compared to $9.9 million in the first quarter of 2025 and compared to $9.5 million in the second quarter of 2024. NIMTE* was 4.72% in the second quarter of 2025 up from 4.61% in the preceding quarter and 4.30% in the second quarter a year ago. NIMTE* increased 42 basis points in the second quarter of 2025 compared to the second quarter of 2024 primarily due to a favorable change in the mix of earning-assets towards higher loan balances as a percentage of total earning-assets, higher yields on those assets as variable rate loans reset at higher rates which were only partially offset by an increase in borrowings. The weighted average interest rate for new loans booked in the second quarter of 2025 was 7.27% compared to 7.30% in the first quarter of 2025 and 7.90% in the second quarter a year ago. The yield on the investment portfolio in the second quarter of 2025 increased to 3.07% from 2.97% in the first quarter of 2025 and 2.82% in the second quarter of 2024. “We are continuing to see some benefits from the repricing of our loan portfolio and new production increasing our margin” said Jed Ballard, Chief Financial Officer. Northrim’s NIMTE* continues to remain above the peer average of 3.26% posted by the S&P U.S. Small Cap Bank Index with total market capitalization between $250 million and $1 billion as of March 31, 2025. Provision for Credit Losses Northrim recorded a provision for credit losses of $2.0 million in the second quarter of 2025, which was comprised of a provision for credit losses on loans of $1.8 million, a $157,000 provision for credit losses on unfunded commitments, and a provision for credit losses on purchased receivables of $18,000. This compares to a benefit to the provision for credit losses of $1.4 million in the first quarter of 2025, which was comprised of a benefit to the provision for credit losses on loans of $1.1 million, a $322,000 benefit for credit losses on unfunded commitments, and a provision for credit losses on purchased receivables of $46,000. In the second quarter a year ago, Northrim recorded a benefit to the provision for credit losses of $120,000 which was comprised of a $134,000 provision for credit losses on loans and a $254,000 benefit to the provision for credit losses on unfunded commitments. The increase to the provision for credit losses on loans in the second quarter of 2025 as compared to the prior quarter and the same quarter a year ago was primarily a result of increased loan balances as well as an increase in estimated loss rates due to less favorable economic forecasts and trends in qualitative factors. The increase to the provision for unfunded commitments in the second quarter of 2025 was primarily due to an increase in estimated loss rates which was only partially offset by changes in mix of unfunded commitments. Nonperforming assets, net of government guarantees, decreased during the quarter to $11.9 million at June 30, 2025, compared to $12.3 million at March 31, 2025, and increased compared to $5.1 million at June 30, 2024. The increase in nonperforming assets, net of government guarantees at June 30, 2025 compared to June 30, 2024 is primarily the result of the acquisition of Sallyport in the fourth quarter of 2024. The allowance for credit losses on loans was 290% of nonperforming loans, net of government guarantees, at the end of the second quarter of 2025, compared to 262% three months earlier and 365% 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 $16.6 million, or 33% of total second quarter 2025 revenues, as compared to $13.0 million, or 29% of revenues in the first quarter of 2025, and $9.6 million, or 26% of revenues in the second quarter of 2024. The increase in other operating income in the second quarter of 2025 as compared to the second quarter of 2024 was primarily the result of increased purchased receivable income due to the Company's acquisition of Sallyport on October 31, 2024. Mortgage banking income in the second quarter of 2025 increased as compared to the first quarter of 2025 and second quarter of 2024 due to a higher volume of mortgage activity. See further discussion regarding mortgage activity contained under “Home Mortgage Lending” below. Other Operating Expenses Operating expenses were $32.5 million in the second quarter of 2025, compared to $28.2 million in the first quarter of 2025, and $25.2 million in the second quarter of 2024. The increase in other operating expenses in the second quarter of 2025 compared to the first quarter of 2025 was primarily due to an increase in salaries and other personnel expense, including $980,000 in higher mortgage commissions expense due to higher mortgage volume, $763,000 in higher salary expense, a $760,000 increase in group medical expenses, and increases in profit share expense and payroll taxes. Additionally, marketing expense increased due to timing of annual charitable contributions. The increase in total other operating expenses in the second quarter of 2025 compared to the second quarter a year ago was primarily due to an increase in salaries and other personnel expense, the increase in compensation expense for Sallyport acquisition payments, and an increase in data processing expense. Total other operating expense increased $2.1 million in the Specialty Finance segment in the second quarter of 2025 compared to the second quarter of 2024 due to the acquisition of Sallyport on October 31, 2024. Income Tax Provision In the second quarter of 2025, Northrim recorded $4.0 million in state and federal income tax expense for an effective tax rate of 25.3%, compared to $4.3 million, or 24.2% in the first quarter of 2025 and $2.5 million, or 21.9% in the second quarter a year ago. The increase in the tax rate in the second quarter of 2025 as compared to the first quarter of 2025 and second quarter of 2024 is primarily the result of a decrease in tax credits and tax exempt interest income as a percentage of pre-tax income in 2025 as compared to 2024. Community Banking 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 $30.0 million in the second quarter of 2025, compared to $28.2 million in the first quarter of 2025 and $24.3 million in the second quarter of 2024. Net interest income increased $5.7 million or 23% in the second quarter of 2025 as compared to the second quarter of 2024 mostly due to higher interest income on loans. This increase was only partially offset by lower interest income on investments and higher interest expense on deposits and borrowings. The provision for credit losses in the Community Banking segment was $1.3 million in the second quarter of 2025 compared to a benefit to the provision for credit losses of $1.8 million in the first quarter of 2025 and a benefit to the provision for credit losses of $184,000 in the same quarter a year ago. The increase to the provision for credit losses in the Community Banking segment in the second quarter of 2025 as compared to the prior quarter and the same quarter a year ago was primarily a result of increased loan balances as well as an increase in estimated loss rates due to less favorable economic forecasts and trends in qualitative factors. In the first quarter of 2025, the Company recorded a net benefit for credit losses in the Community Banking segment primarily due to changes in the Company's loss rate regression models for commercial, commercial real estate, and construction loans. These decreases in the provision were only partially offset by increases in estimated loss rates for management's assessment of economic conditions and an increase for higher loan balances. Other operating expenses in the Community Banking segment totaled $21.8 million in the second quarter of 2025, up $3.2 million or 17% from $18.6 million in the first quarter of 2025, and up $3.7 million or 20% from $18.1 million in the second quarter a year ago. The increase in the second quarter of 2025 as compared to the prior quarter and compared to the same quarter a year ago was primarily due to increases in salaries and other personnel expense, including $667,000 in higher salary expense, an $873,000 increase in group medical expenses, as well as increases in profit share expense and payroll taxes. Additionally, marketing expense increased due to timing of annual charitable contributions. The following tables provide highlights of the Community Banking segment of Northrim: Three Months Ended(Dollars in thousands, except per share data)June 30, 2025March 31, 2025December 31, 2024September 30, 2024June 30, 2024Net interest income$29,971$28,151 $27,643$25,928$24,318 (Benefit) provision for credit losses 1,319 (1,768) 771 1,492 (184)Other operating income 3,268 2,703 2,535 3,507 2,451 Other operating expense 21,764 18,581 19,116 18,723 18,069 Income before provision for income taxes 10,156 14,041 10,291 9,220 8,884 Provision for income taxes 2,413 3,253 1,474 2,133 1,786 Net income$7,743$10,788 $8,817$7,087$7,098 Weighted average shares outstanding, diluted 5,611,558 5,608,102 5,597,889 5,583,055 5,558,580 Diluted earnings per share attributable to Community Banking$1.37$1.93 $1.58$1.26$1.27 Year-to-date(Dollars in thousands, except per share data)June 30, 2025June 30, 2024Net interest income$58,122 $48,533(Benefit) provision for credit losses (449) 13Other operating income 5,971 4,919Other operating expense 40,345 35,247Income before provision for income taxes 24,197 18,192Provision for income taxes 5,666 3,752Net income Community Banking segment$18,531 $14,440Weighted average shares outstanding, diluted 5,611,734 5,562,025Diluted earnings per share$3.30 $2.59 Home Mortgage Lending During the second quarter of 2025, mortgage loans funded for sale were $249.7 million, compared to $108.5 million in the first quarter of 2025, and $152.3 million in the second quarter of 2024. During the second quarter of 2025, the Bank purchased loans of $27.5 million from its subsidiary, Residential Mortgage, of which approximately half were jumbos, one-quarter were mortgages for second homes, and one-quarter were adjustable rate mortgages, with a weighted average interest rate of 6.71%, as compared to $13.1 million and 6.39% in the first quarter of 2025, and $29.2 million and 6.82% in the second quarter of 2024. Net interest income contributed $3.5 million to total Home Mortgage Lending revenue in the second quarter of 2025, up from $3.0 million in the prior quarter, and up from $2.8 million in the second quarter a year ago. The Company reclassified $100 million in consumer mortgages held for investment to held for sale in the first quarter of 2025 and recorded unrealized losses of $1.2 million related to this portfolio in the first quarter of 2025. In the second quarter of 2025, the Company sold $61 million of the $100 million that was reclassified to loans held for sale in the first quarter of 2025 for a total realized loss of $545,000. The Arizona, Colorado, and Pacific Northwest mortgage expansion markets were responsible for 22% of Residential Mortgage's $216 million total production in the second quarter of 2025 (excluding the $61 million in mortgages sold noted above), 20% of $122 million total production in the first quarter of 2025, and 22% of $182 million total production in the second quarter of 2024. The provision for credit losses in the Home Mortgage Lending segment was $639,000 in the second quarter of 2025 compared to a benefit to the provision for credit losses of $307,000 in the first quarter of 2025 and a provision for credit loses of $64,000 in the second quarter of 2024. The increase in the provision for credit losses in the second quarter of 2025 in the Home Mortgage Lending segment as compared to the prior quarter and the same quarter a year ago was primarily a result of increased loan balances. The benefit to the provision for loan losses in the Home Mortgage Lending segment in the first quarter of 2025 was primarily the result of the reclassification of $100 million in mortgage loans to loans held for sale, which was only partially offset by an increase in the provision for loan losses due to changes in the Company's loss rate regression models for home mortgage loans. The net change in fair value of mortgage servicing rights decreased mortgage banking income by $818,000 during the second quarter of 2025 compared to a decrease of $855,000 for the first quarter of 2025 and a decrease of $81,000 for the second quarter of 2024. Mortgage servicing revenue increased to $3.0 million in the second quarter of 2025 from $2.7 million in the prior quarter and increased from $2.2 million in the second quarter of 2024 due to an increase in production of Alaska Housing Finance Corporation (AHFC) mortgages, which contribute to servicing revenues at origination. In the second quarter of 2025, the Company's servicing portfolio increased $69.3 million compared to a $24.0 million increase in the first quarter of 2025, and an increase of $41.8 million in the second quarter of 2024. As of June 30, 2025, Northrim serviced 6,458 loans in its $1.55 billion home-mortgage-servicing portfolio, a 5% increase compared to the $1.48 billion serviced as of the end of the first quarter of 2025, and a 41% increase from the $1.10 billion serviced a year ago. The following tables provide highlights of the Home Mortgage Lending segment of Northrim: Three Months Ended(Dollars in thousands, except per share data)June 30, 2025March 31, 2025December 31, 2024September 30, 2024June 30, 2024Mortgage commitments$73,198 $68,258 $32,299 $77,591 $88,006 Mortgage loans funded for sale$249,680 $108,499 $162,530 $209,960 $152,339 Mortgage loans funded for investment 27,455 13,061 23,380 38,087 29,175 Total mortgage loans funded$277,135 $121,560 $185,910 $248,047 $181,514 Mortgage loan refinances to total fundings 10% 11% 11% 6% 6%Mortgage loans serviced for others$1,553,987 $1,484,714 $1,460,720 $1,166,585 $1,101,800 Net realized and unrealized gains on mortgage loans sold and held for sale$5,091 $1,580 $3,747 $5,079 $3,189 Change in fair value of mortgage loan commitments, net (110) 660 (665) 60 390 Total production revenue 4,981 2,240 3,082 5,139 3,579 Mortgage servicing revenue 2,957 2,696 2,847 2,583 2,164 Change in fair value of mortgage servicing rights: Due to changes in model inputs of assumptions1 (355) (322) 1,372 (566) 239 Other2 (463) (533) (499) (402) (320)Total mortgage servicing revenue, net 2,139 1,841 3,720 1,615 2,083 Other mortgage banking revenue 280 170 238 293 222 Total mortgage banking income$7,400 $4,251 $7,040 $7,047 $5,884 Net interest income$3,507 $3,046 $3,280 $2,941 $2,775 Provision (benefit) for credit losses 639 (307) 305 571 64 Mortgage banking income 7,400 4,251 7,040 7,047 5,884 Other operating expense 7,593 6,490 7,198 7,643 6,697 Income before provision for income taxes 2,675 1,114 2,817 1,774 1,898 Provision for income taxes 746 310 842 497 532 Net income$1,929 $804 $1,975 $1,277 $1,366 Weighted average shares outstanding, diluted 5,611,558 5,608,102 5,597,889 5,583,055 5,558,580 Diluted earnings per share attributable to Home Mortgage Lending$0.34 $0.14 $0.35 $0.23 $0.25 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-to-date(Dollars in thousands, except per share data)June 30, 2025June 30, 2024Mortgage loans funded for sale$358,179 $236,663 Mortgage loans funded for investment 40,516 46,578 Total mortgage loans funded$398,695 $283,241 Mortgage loan refinances to total fundings 10% 6% Net realized and unrealized gains on mortgage loans sold and held for sale$6,671 $5,168 Change in fair value of mortgage loan commitments, net 550 777 Total production revenue 7,221 5,945 Mortgage servicing revenue 5,653 3,725 Change in fair value of mortgage servicing rights: Due to changes in model inputs of assumptions1 (677) 528 Other2 (996) (634)Total mortgage servicing revenue, net 3,980 3,619 Other mortgage banking revenue 450 351 Total mortgage banking income$11,651 $9,915 Net interest income$6,553 $5,007 Provision for credit losses 332 16 Mortgage banking income 11,651 9,915 Other operating expense 14,083 12,783 Income before provision for income taxes 3,789 2,123 Provision for income taxes 1,056 595 Net income Home Mortgage Lending segment$2,733 $1,528 Weighted average shares outstanding, diluted 5,611,734 5,562,025 Diluted earnings per share$0.48 $0.28 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 The Company’s Specialty Finance segment includes Northrim Funding Services and Sallyport. Northrim Funding Services is a division of the Bank and has offered factoring solutions to small businesses since 2004. Sallyport 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 that the Company acquired on October 31, 2024 in an all cash transaction valued at approximately $53.9 million. The composition of revenues for the Specialty Finance segment are primarily purchased receivable income, but also includes interest income from loans and other fee income. The acquisition of Sallyport included $1.1 million in one-time deal related costs which are reflected in other operating expenses for the fourth quarter of 2024 in the tables below. Total pre-tax income for Sallyport for the second quarter of 2025 was $1.3 million compared to $1.3 million in the first quarter of 2025 and $945,000 for the two months of operations in the fourth quarter of 2024, excluding transaction costs. Average purchased receivables and loan balances at Sallyport were $71.0 million for the second quarter of 2025 with a yield of 27.23% compared to average balances of $59.9 million for the first quarter of 2025 and a yield of 35.8%. The yield in the first quarter of 2025 included the recognition of $899,000 in nonaccrual fee income collected during the quarter related to two nonperforming receivables and the collection of a $350,000 line termination fee. The yield excluding these items for the first quarter of 2025 was 27.4%. The following tables provide highlights of the Specialty Finance segment of Northrim: Three Months Ended(Dollars in thousands, except per share data)June 30, 2025March 31, 2025December 31, 2024September 30, 2024June 30, 2024Purchased receivable income$5,897$6,150 $3,526 $1,033$1,242Other operating income 75 (64) (68) — —Interest income 782 596 407 158 170Total revenue 6,754 6,682 3,865 1,191 1,412Provision for credit losses 18 666 125 — —Compensation expense - SCF acquisition payments 600 600 — — —Other operating expense 2,531 2,500 3,063 362 428Interest expense 668 496 489 185 210Total expense 3,817 4,262 3,677 547 638Income before provision for income taxes 2,937 2,420 188 644 774Provision for income taxes 831 688 53 183 218Net income Specialty Finance segment$2,106$1,732 $135 $461$556Weighted average shares outstanding, diluted 5,611,558 5,608,102 5,597,889 5,583,055 5,558,580Diluted earnings per share attributable to Specialty Finance$0.38$0.31 $0.02 $0.08$0.10 Year-to-date(Dollars in thousands, except per share data)June 30, 2025June 30, 2024Purchased receivable income$12,047$2,587Other operating income 11 —Interest income 1,378 382Total revenue 13,436 2,969Provision for credit losses 684 —Compensation expense - SCF acquisition payments 1,200 —Other operating expense 5,031 802Interest expense 1,164 422Total expense 8,079 1,224Income before provision for income taxes 5,357 1,745Provision for income taxes 1,519 494Net income Specialty Finance segment$3,838$1,251Weighted average shares outstanding, diluted 5,611,734 5,562,025Diluted earnings per share$0.69$0.23 Balance Sheet Review Northrim’s total assets were $3.24 billion at June 30, 2025, up 3% from the preceding quarter and up 15% from a year ago. Northrim’s loan-to-deposit ratio was 78% at June 30, 2025, up from 76% at both March 31, 2025 and June 30, 2024. At June 30, 2025, liquid assets, investments, and loans maturing within one year were $1.15 billion and our funds available for borrowing under our existing lines of credit were $507.9 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 $2.89 billion in the second quarter of 2025, up 4% from $2.78 billion in the first quarter of 2025 and up 12% from $2.57 billion in the second quarter a year ago. The average yield on interest-earning assets was 6.27% in the second quarter of 2025, up from 6.10% in the preceding quarter and up from 5.83% in the second quarter of 2024. Average investment securities decreased to $515.9 million in the second quarter of 2025, compared to $523.8 million in the first quarter of 2025 and $640.0 million in the second quarter a year ago. The average net tax equivalent yield on the securities portfolio was 3.07% for the second quarter of 2025, up from 2.97% in the preceding quarter and up from 2.82% in the year ago quarter. The average estimated duration of the investment portfolio at June 30, 2025, was approximately 2.4 years compared to approximately 2.5 years at June 30, 2024. As of June 30, 2025, $55.7 million of available for sale securities with a weighted average yield of 1.40% are scheduled to mature in the next six months, $106.8 million with a weighted average yield of 1.28% are scheduled to mature in six months to one year, and $145.0 million with a weighted average yield of 1.96% are scheduled to mature in the following year, representing a total of $307.5 million or 11% of earning assets that are scheduled to mature in the next 24 months. Total unrealized losses, net of tax, on available for sale securities decreased by $1.9 million in the second quarter of 2025 resulting in total unrealized loss, net of tax, of $3.6 million compared to $5.5 million at March 31, 2025, and $15.2 million a year ago. The average maturity of the available for sale securities with the majority of the unrealized loss is 1.3 years. Total unrealized losses on held to maturity securities were $711,000 at June 30, 2025, compared to $1.1 million at March 31, 2025, and $3.0 million a year ago. Average interest bearing deposits in other banks decreased to $27.2 million in the second quarter of 2025 from $38.0 million in the first quarter of 2025 and increased from $17.4 million in the second quarter of 2024, as cash was used to fund loan growth and provide liquidity. Loans held for sale decreased to $127.1 million at June 30, 2025, compared to $159.6 million at March 31, 2025, largely due to the sale of $61 million consumer mortgage loans in the second quarter of 2025 that had been reclassified to loans held for sale from portfolio loans in the first quarter of 2025, and increased from $85.9 million a year ago, due to higher loan production by Residential Mortgage. Portfolio loans were $2.20 billion at June 30, 2025, up 4% from the preceding quarter and up 17% from a year ago. Portfolio loans, excluding consumer mortgage loans, were $2.00 billion at June 30, 2025, up $59.1 million or 3% from the preceding quarter and up 21% from a year ago. This increase in the second quarter of 2025 was diversified throughout the loan portfolio including consumer mortgage loans increasing by $19 million, construction loans increasing by $31.2 million, commercial real estate owner-occupied loans increasing $17.1 million, and nonowner-occupied commercial real estate and multi-family loans increasing by $6.5 million from the preceding quarter. These increases were partially offset by a $3.8 million decrease in commercial loans. Average portfolio loans in the second quarter of 2025 were $2.17 billion, which was consistent with the preceding quarter after the sale of $61 million in consumer mortgage loans, and up 18% from a year ago. Yields on average portfolio loans in the second quarter of 2025 increased to 6.99% from 6.89% in the first quarter and increased from 6.87% in the second quarter of 2024. The yield on new portfolio loans, excluding consumer mortgage loans, was 7.45% in the second quarter of 2025 as compared to 7.43% in the first quarter of 2025 and 8.26% in the second quarter of 2024. Northrim's loans and credit lines are subject to approval procedures and amount limitations. These limitations apply to the borrower's total outstanding indebtedness and commitments to us, including the indebtedness of any guarantor. Generally, Northrim is permitted to make loans to one borrower of up to 15% of the unimpaired capital and surplus of the Bank. The legal lending limit was $39.4 million at June 30, 2025. At June 30, 2025, Northrim had 22 relationships totaling $504.0 million in portfolio loans whose total direct and indirect commitments were greater than 50% of the legal lending limit. Alaskans continue to account for substantially all of Northrim’s deposit base. Total deposits were $2.81 billion at June 30, 2025, up 1% from $2.78 billion at March 31, 2025, and up 14% from $2.46 billion a year ago. “The increase in deposits in the second quarter of 2025 was consistent with our customers' normal business cycles which typically result in increases in deposit balances in the second and third quarters and decreases in the first and fourth quarters,” said Ballard. At June 30, 2025, 75% of total deposits were held in business accounts and 25% of deposit balances were held in consumer accounts. Northrim had approximately 34,000 deposit customers with an average balance of $60,000 as of June 30, 2025. Northrim had 27 customers with balances over $10 million as of June 30, 2025, which accounted for $731.1 million, or 27%, of total deposits. Demand deposits increased by 5% from the prior quarter and increased 10% from the prior year to $777.9 million at June 30, 2025. Demand deposits were 28% of total deposits at June 30, 2025 up from 27% at March 31, 2025 and were down from 29% of total deposits at June 30, 2024. Average interest-bearing deposits were up 1% to $2.03 billion with an average cost of 2.04% in the second quarter of 2025, compared to $2.00 billion and an average cost of 2.01% in the first quarter of 2025, and up 18% compared to $1.73 billion and an average cost of 2.21% in the second quarter of 2024. Uninsured deposits totaled $1.02 billion or 36% of total deposits as of June 30, 2025 compared to $1.08 billion or 40% of total deposits as of December 31, 2024. Shareholders’ equity was $290.2 million, or $52.55 book value per share, at June 30, 2025, compared to $279.8 million, or $50.67 book value per share, at March 31, 2025 and $247.2 million, or $44.93 book value per share, a year ago. Tangible book value per share* was $43.35 at June 30, 2025, compared to $41.47 at March 31, 2025, and $42.03 per share a year ago. The increase in shareholders’ equity in the second quarter of 2025 as compared to the first quarter of 2025 was largely the result of earnings of $11.8 million and an increase in the fair value of the available for sale securities portfolio, which increased $1.9 million, net of tax, which were only partially offset by dividends paid of $3.6 million. The Company did not repurchase any shares of common stock in the second quarter of 2025 and currently has no plans to repurchase shares this year. Tangible common equity to tangible assets* was 7.50% as of June 30, 2025, compared to 7.41% as of March 31, 2025 and 8.24% as of June 30, 2024. 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 9.80% at June 30, 2025, compared to 9.76% at March 31, 2025, and 11.68% at June 30, 2024. Asset Quality Northrim believes it has a consistent lending approach throughout economic cycles, which emphasizes appropriate loan-to-value ratios, adequate debt coverage ratios, and competent management. Nonperforming assets (“NPAs”) net of government guarantees were $11.9 million at June 30, 2025, down from $12.3 million at March 31, 2025 and up from $5.1 million a year ago. Of the NPAs at June 30, 2025, $4.2 million are attributable to the Community Banking segment and $7.5 million are attributable to the Specialty Finance segment. Net adversely classified loans were $35.8 million at June 30, 2025, as compared to $20.4 million at March 31, 2025, 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. The increase in adversely classified loans, net of government guarantees, at June 30, 2025 as compared to the prior quarter is mostly attributable to two commercial relationships totaling $16.0 million. Net loan charge-offs were $140,000 in the second quarter of 2025, compared to net loan recoveries of $34,000 in the first quarter of 2025, and net loan recoveries of $26,000 in the second quarter of 2024. Additionally, Northrim had 13 loan modifications to borrowers experiencing financial difficulty totaling $3.3 million, net of government guarantees that had been modified in the last twelve months as of June 30, 2025. Northrim had $141.2 million, or 6% of portfolio loans, in the Healthcare sector, $127.2 million, or 6% of portfolio loans, in the Tourism sector, $121.0 million, or 5% of portfolio loans, in the Accommodations sector, $93.4 million, or 4% of portfolio loans, in the Retail sector, $84.2 million, or 4% of portfolio loans, in the Aviation (non-tourism) sector, $76.2 million, or 3% of portfolio loans, in the Fishing sector, and $59.5 million, or 3% in the Restaurants and Breweries sector as of June 30, 2025. Northrim estimates that $105.9 million, or approximately 5% of portfolio loans, had direct exposure to the oil and gas industry in Alaska, as of June 30, 2025, and $1.5 million of these loans are adversely classified. As of June 30, 2025, Northrim has an additional $76.9 million in unfunded commitments to companies with direct exposure to the oil and gas industry in Alaska, and no unfunded commitments on 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, including tariffs, 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; potential further increases in inflation, supply-chain constraints, and potential geopolitical instability, including the war in Ukraine and the conflict in 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 allowance 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, 2024, 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/ https://www.bls.gov/regions/west/news-release/consumerpriceindex_anchorage.htm https://www.alaskarealestate.com/MLSMember/RealEstateStatistics.aspx https://www.akleg.gov/basis/Bill/Text/34?Hsid=HJR011C https://www.trade.gov/data-visualization/tradestats-express-trade-partner-state https://tax.alaska.gov/programs/programs/reports/RSB.aspx?Year=2025&Type=Spring https://apfc.org https://www.capitaliq.spglobal.com/web/client?auth=inherit&overridecdc=1&#markets/indexFinancials Contact:Mike Huston, President, CEO, and COO (907) 261-8750 Jed Ballard, Chief Financial Officer (907) 261-3539 Income Statement (Dollars in thousands, except per share data)Three Months Ended Year-to-date(Unaudited)June 30,March 31,June 30, June 30,June 30, 2025 2025 2024 2025 2024 Interest Income: Interest and fees on loans$40,519$37,470 $32,367 $77,989$62,817 Interest on portfolio investments 3,765 3,675 4,310 7,440 8,830 Interest on deposits in banks 515 416 232 931 1,070 Total interest income 44,799 41,561 36,909 86,360 72,717 Interest Expense: Interest expense on deposits 10,304 9,935 9,476 20,239 18,656 Interest expense on borrowings 903 329 380 1,232 561 Total interest expense 11,207 10,264 9,856 21,471 19,217 Net interest income 33,592 31,297 27,053 64,889 53,500 Provision (benefit) for credit losses 1,976 (1,409) (120) 567 29 Net interest income after provision for credit losses 31,616 32,706 27,173 64,322 53,471 Other Operating Income: Mortgage banking income 7,400 4,251 5,884 11,651 9,915 Purchased receivable income 5,897 6,100 1,242 12,047 2,587 Bankcard fees 1,153 1,074 1,105 2,227 2,022 Service charges on deposit accounts 726 677 572 1,403 1,121 Unrealized gain (loss) on marketable equity securities 78 (50) (60) 28 254 Other income 1,386 988 834 2,324 1,522 Total other operating income 16,640 13,040 9,577 29,680 17,421 Other Operating Expense: Salaries and other personnel expense 20,854 17,223 16,627 38,077 32,044 Data processing expense 3,366 3,104 2,601 6,470 5,260 Occupancy expense 2,104 1,889 1,843 3,993 3,805 Professional and outside services 1,113 1,115 726 2,228 1,481 Marketing expense 1,042 672 690 1,714 1,203 Insurance expense 756 1,017 692 1,773 1,471 Compensation expense - SCF acquisition payments 600 600 — 1,200 — OREO expense, net rental income and gains on sale 2 3 2 5 (389)Other expense 2,651 2,548 2,013 5,199 3,957 Total other operating expense 32,488 28,171 25,194 60,659 48,832 Income before provision for income taxes 15,768 17,575 11,556 33,343 22,060 Provision for income taxes 3,990 4,251 2,536 8,241 4,841 Net income$11,778$13,324 $9,020 $25,102$17,219 Basic EPS$2.13$2.41 $1.64 $4.54$3.13 Diluted EPS$2.09$2.38 $1.62 $4.47$3.10 Weighted average shares outstanding, basic 5,521,811 5,519,998 5,500,588 5,520,905 5,500,083 Weighted average shares outstanding, diluted 5,611,558 5,608,102 5,558,580 5,611,734 5,562,025 Balance Sheet (Dollars in thousands) (Unaudited)June 30,March 31,June 30, 2025 2025 2024 Assets: Cash and due from banks$43,734 $29,671 $33,364 Interest bearing deposits in other banks 97,549 35,852 21,058 Investment securities available for sale, at fair value 429,421 463,096 584,964 Investment securities held to maturity 36,750 36,750 36,750 Marketable equity securities, at fair value 8,747 8,669 12,381 Investment in Federal Home Loan Bank stock 8,343 5,342 4,929 Loans held for sale 127,116 159,603 85,926 Portfolio loans 2,202,115 2,124,330 1,875,907 Allowance for credit losses, loans (22,585) (20,922) (17,694)Net portfolio loans 2,179,530 2,103,408 1,858,213 Purchased receivables, net 109,098 95,489 25,722 Mortgage servicing rights, at fair value 27,506 26,814 21,077 Other real estate owned, net — — — Premises and equipment, net 36,501 37,070 40,393 Lease right of use asset 7,033 7,632 8,244 Goodwill and intangible assets 50,824 50,824 15,967 Other assets 81,608 80,740 72,680 Total assets$3,243,760 $3,140,960 $2,821,668 Liabilities: Demand deposits$777,948 $742,560 $704,471 Interest-bearing demand 1,196,048 1,187,465 906,010 Savings deposits 248,141 256,650 238,156 Money market deposits 196,166 193,842 195,159 Time deposits 390,867 397,460 420,010 Total deposits 2,809,170 2,777,977 2,463,806 Other borrowings 63,026 13,136 43,961 Junior subordinated debentures 10,310 10,310 10,310 Lease liability 7,077 7,682 8,269 Other liabilities 63,958 52,099 48,122 Total liabilities 2,953,541 2,861,204 2,574,468 Shareholders’ Equity: Total shareholders’ equity 290,219 279,756 247,200 Total liabilities and shareholders’ equity$3,243,760 $3,140,960 $2,821,668 Additional Financial Information(Dollars in thousands)(Unaudited) Composition of Portfolio Loans June 30, 2025 March 31, 2025 December 31, 2024 September 30, 2024 June 30, 2024 Balance% of total Balance% of total Balance% of total Balance% of total Balance% of totalCommercial loans$569,753 27% $573,593 27% $518,148 24% $492,414 24% $495,781 26%Commercial real estate: Owner occupied properties 447,561 20% 430,442 20% 420,060 20% 412,827 20% 383,832 20%Nonowner occupied and multifamily properties 696,766 31% 690,277 32% 619,431 29% 584,302 31% 551,130 30%Residential real estate: 1-4 family properties secured by first liens 206,905 9% 188,219 9% 270,535 13% 248,514 12% 222,026 12%1-4 family properties secured by junior liens & revolving secured by first liens 60,118 3% 53,836 3% 48,857 2% 45,262 2% 41,258 2%1-4 family construction 36,005 2% 34,017 2% 39,789 2% 39,794 2% 29,510 2%Construction loans 187,442 8% 156,211 7% 214,068 10% 185,362 9% 154,009 8%Consumer loans 7,570 —% 7,424 —% 7,562 —% 7,836 —% 6,679 —%Subtotal 2,212,120 2,134,019 2,138,450 2,016,311 1,884,225 Unearned loan fees, net (10,005) (9,689) (9,187) (8,746) (8,318) Total portfolio loans$2,202,115 $2,124,330 $2,129,263 $2,007,565 $1,875,907 Composition of Deposits June 30, 2025 March 31, 2025 December 31, 2024 September 30, 2024 June 30, 2024 Balance% of total Balance% of total Balance% of total Balance% of total Balance% of totalDemand deposits$777,94828% $742,56027% $706,22527% $763,59529% $704,47129%Interest-bearing demand 1,196,04842% 1,187,46543% 1,108,40441% 979,23837% 906,01036%Savings deposits 248,1419% 256,6509% 250,9009% 245,0439% 238,15610%Money market deposits 196,1667% 193,8427% 196,2907% 204,8218% 195,1598%Time deposits 390,86714% 397,46014% 418,37016% 435,87017% 420,01017%Total deposits$2,809,170 $2,777,977 $2,680,189 $2,628,567 $2,463,806 Additional Financial Information(Dollars in thousands)(Unaudited) Asset QualityJune 30, March 31, June 30, 2025 2025 2024 Nonaccrual loans - Community Banking$4,180 $4,274 $4,233 Nonaccrual loans - Home Mortgage Lending 197 221 253 Nonaccrual loans - Specialty Finance 3,484 3,573 344 Nonaccrual loans - Total 7,861 8,068 4,830 Loans 90 days past due and accruing - Community Banking — — 17 Loans 90 days past due and accruing - Total — — 17 Total nonperforming loans - Community Banking 4,180 4,274 4,250 Total nonperforming loans - Home Mortgage Lending 197 221 253 Total nonperforming loans - Specialty Finance 3,484 3,573 344 Total nonperforming loans - Total 7,861 8,068 4,847 Nonperforming loans guaranteed by gov't - Community Banking 70 80 — Nonperforming loans guaranteed by gov't - Total 70 80 — Net nonperforming loans - Community Banking 4,110 4,194 4,250 Net nonperforming loans - Home Mortgage Lending 197 221 253 Net nonperforming loans - Specialty Finance 3,484 3,573 344 Net nonperforming loans - Total 7,791 7,988 4,847 Repossessed assets - Community Banking 50 297 297 Repossessed assets - Total 50 297 297 Nonperforming purchased receivables - Specialty Finance 4,017 4,007 — Net nonperforming assets - Community Banking 4,160 4,491 4,547 Net nonperforming assets - Home Mortgage Lending 197 221 253 Net nonperforming assets - Specialty Finance 7,501 7,580 344 Net nonperforming assets - Total$11,858 $12,292 $5,144 Adversely classified loans, net of gov't guarantees - Community Banking$32,128 $16,592 $6,006 Adversely classified loans, net of gov't guarantees - Home Mortgage Lending 223 252 718 Adversely classified loans, net of gov't guarantees - Specialty Finance 3,484 3,573 344 Adversely classified loans, net of gov't guarantees - Total$35,835 $20,417 $7,068 Special mention loans, net of gov't guarantees - Community Banking$3,966 $14,496 $8,902 Special mention loans, net of gov't guarantees - Home Mortgage Lending 790 637 — Special mention loans, net of gov't guarantees - Total$4,756 $15,133 $8,902 Asset Quality, ContinuedJune 30, March 31, June 30, 2025 2025 2024 Nonperforming loans, net of government guarantees / portfolio loans 0.35 % 0.38 % 0.26 %Nonperforming loans, net of government guarantees / portfolio loans, net of government guarantees 0.38 % 0.40 % 0.28 %Nonperforming assets, net of government guarantees / total assets 0.37 % 0.39 % 0.18 %Nonperforming assets, net of government guarantees / total assets net of government guarantees 0.38 % 0.41 % 0.19 % Loans 30-89 days past due and accruing, net of government guarantees / % portfolio loans 0.06 % 0.04 % 0.03 %Loans 30-89 days past due and accruing, net of government guarantees / portfolio loans, net of government guarantees 0.06 % 0.04 % 0.04 % Allowance for credit losses for loans / portfolio loans 1.03 % 0.98 % 0.94 %Allowance for credit losses for loans / portfolio loans, net of gov't guarantees 1.10 % 1.06 % 1.01 %Allowance for credit losses for loans / nonperforming loans, net of government guarantees 290 % 262 % 365 % Gross loan charge-offs for the quarter - Community Banking$3 $50 $— Gross loan charge-offs for the quarter - Specialty Finance 152 — — Gross loan charge-offs for the quarter - Total 155 50 — Gross loan recoveries for the quarter - Community Banking (15) (84) (26) Gross loan recoveries for the quarter - Home Mortgage Lending — — — Gross loan recoveries for the quarter - Specialty Finance — — — Gross loan recoveries for the quarter - Total($15) ($84) ($26) Net loan (recoveries) charge-offs for the quarter - Community Banking($12) ($34) ($26) Net loan (recoveries) charge-offs for the quarter - Specialty Finance 152 — — Net loan (recoveries) charge-offs for the quarter - Total$140 ($34) ($26) Net loan charge-offs (recoveries) year-to-date - Community Banking($46) ($34) ($68) Net loan charge-offs (recoveries) year-to-date - Specialty Finance 152 — — Net loan charge-offs (recoveries) year-to-date - Total$106 ($34) ($68) Net loan charge-offs (recoveries) for the quarter / average loans, for the quarter 0.01 % — % — % Net loan charge-offs (recoveries) year-to-date / average loans, year-to-date annualized 0.01 % (0.01)% (0.01)% Allowance for credit losses for purchased receivables / purchased receivables 3.05 % 3.72 % — % Net purchased receivable charge-offs (recoveries) for the quarter$281 $— $— Net purchased receivable charge-offs (recoveries) year-to-date$281 $— $— Net purchased receivable charge-offs (recoveries) for the quarter / average purchased receivables, for the quarter 0.27 %NA NA Net purchased receivable charge-offs (recoveries) year-to-date / average purchased receivables, year-to-date annualized 0.61 %NA NA Additional Financial Information(Dollars in thousands)(Unaudited) Average Balances, Yields, and Rates Three Months Ended June 30, 2025 March 31, 2025 June 30, 2024 Average Average Average AverageTax Equivalent AverageTax Equivalent AverageTax Equivalent BalanceYield/Rate BalanceYield/Rate BalanceYield/RateAssets Interest bearing deposits in other banks$27,216 7.60% $37,969 4.44% $17,352 5.27%Portfolio investments 515,916 3.07% 523,753 2.97% 639,980 2.82%Loans held for sale 173,675 6.50% 46,223 5.86% 65,102 6.08%Portfolio loans 2,172,482 6.99% 2,173,425 6.89% 1,845,832 6.87%Total interest-earning assets 2,889,289 6.27% 2,781,370 6.10% 2,568,266 5.83%Nonearning assets 306,206 293,415 204,509 Total assets$3,195,495 $3,074,785 $2,772,775 Liabilities and Shareholders’ Equity Interest-bearing deposits$2,029,100 2.04% $2,002,594 2.01% $1,725,013 2.21%Borrowings 86,404 4.14% 37,081 3.55% 38,390 3.92%Total interest-bearing liabilities 2,115,504 2.12% 2,039,675 2.04% 1,763,403 2.25% Noninterest-bearing demand deposits 737,112 697,534 706,339 Other liabilities 54,320 63,348 58,549 Shareholders’ equity 288,559 274,228 244,484 Total liabilities and shareholders’ equity$3,195,495 $3,074,785 $2,772,775 Net spread 4.15% 4.06% 3.58%NIM 4.66% 4.55% 4.24%NIMTE* 4.72% 4.61% 4.30%Cost of funds 1.57% 1.52% 1.60%Average portfolio loans to average interest-earning assets 75.19% 78.14% 71.87% Average portfolio loans to average total deposits 78.54% 80.49% 75.92% Average non-interest deposits to average total deposits 26.65% 25.83% 29.05% Average interest-earning assets to average interest-bearing liabilities 136.58% 136.36% 145.64% Additional Financial Information(Dollars in thousands)(Unaudited) Average Balances, Yields, and Rates Year-to-date June 30, 2025 June 30, 2024 Average Average AverageTax Equivalent AverageTax Equivalent BalanceYield/Rate BalanceYield/RateAssets Interest bearing deposits in other banks$32,563 5.77% $39,457 5.36%Portfolio investments 519,813 3.02% 655,458 2.82%Loans held for sale 110,301 6.35% 48,868 6.10%Portfolio loans 2,172,950 6.94% 1,819,629 6.81%Total interest-earning assets 2,835,627 6.19% 2,563,412 5.76%Nonearning assets 299,848 202,819 Total assets$3,135,475 $2,766,231 Liabilities and Shareholders’ Equity Interest-bearing deposits$2,015,920 2.02% $1,728,468 2.17%Borrowings 61,879 3.96% 31,167 3.55%Total interest-bearing liabilities 2,077,799 2.08% 1,759,635 2.19% Noninterest-bearing demand deposits 717,432 705,736 Other liabilities 58,809 59,478 Shareholders’ equity 281,435 241,382 Total liabilities and shareholders’ equity$3,135,475 $2,766,231 Net spread 4.11% 3.57%NIM 4.61% 4.20%NIMTE* 4.66% 4.26%Cost of funds 1.55% 1.57%Average portfolio loans to average interest-earning assets 76.63% 70.98% Average portfolio loans to average total deposits 79.50% 74.75% Average non-interest deposits to average total deposits 26.25% 28.99% Average interest-earning assets to average interest-bearing liabilities 136.47% 145.68% Additional Financial Information(Dollars in thousands, except per share data)(Unaudited) Capital Data (At quarter end) June 30, 2025 March 31, 2025 June 30, 2024 Book value per share$52.55 $50.67 $44.93 Tangible book value per share*$43.35 $41.47 $42.03 Total shareholders’ equity/total assets 8.95 % 8.91 % 8.76 %Tangible Common Equity/Tangible Assets* 7.50 % 7.41 % 8.24 %Tier 1 Capital / Risk Adjusted Assets 9.80 % 9.76 % 11.68 %Total Capital / Risk Adjusted Assets 10.71 % 10.62 % 12.58 %Tier 1 Capital / Average Assets 7.99 % 8.02 % 9.17 %Shares outstanding 5,522,271 5,520,892 5,501,562 Total unrealized loss on AFS debt securities, net of income taxes($3,571) ($5,452) ($15,197) Total unrealized gain on derivatives and hedging activities, net of income taxes$1,026 $1,097 $1,212 Profitability Ratios June 30, 2025 March 31, 2025 December 31, 2024 September 30, 2024 June 30, 2024 For the quarter: NIM4.66%4.55%4.41%4.29%4.24%NIMTE* 4.72%4.61%4.47%4.35%4.30%Efficiency ratio64.68%63.54%66.96%66.11%68.78%Return on average assets1.48%1.76%1.43%1.22%1.31%Return on average equity16.37%19.70%16.32%13.69%14.84% June 30, 2025 June 30, 2024 Year-to-date: NIM4.61%4.20%NIMTE* 4.66%4.26%Efficiency ratio64.14%68.85%Return on average assets1.61%1.25%Return on average equity17.99%14.35% *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 2025 and 2024. The most comparable GAAP measure is net interest margin and the following table sets forth the reconciliation of NIMTE to net interest margin for the periods indicated. Three Months Ended June 30, 2025 March 31, 2025 December 31, 2024 September 30, 2024 June 30, 2024Net interest income$33,592 $31,297 $30,841 $28,842 $27,053 Divided by average interest-bearing assets 2,889,289 2,781,370 2,787,517 2,674,291 2,568,266 Net interest margin (“NIM”)2 4.66% 4.55% 4.41% 4.29% 4.24% Net interest income$33,592 $31,297 $30,841 $28,842 $27,053 Plus: reduction in tax expense related to tax-exempt interest income 409 379 379 385 378 $34,001 $31,676 $31,220 $29,227 $27,431 Divided by average interest-bearing assets 2,889,289 2,781,370 2,787,517 2,674,291 2,568,266 NIMTE2 4.72% 4.61% 4.47% 4.35% 4.30% Year-to-date June 30, 2025 June 30, 2024Net interest income$64,889 $53,500 Divided by average interest-bearing assets 2,835,627 2,563,412 Net interest margin ("NIM")3 4.61% 4.20% Net interest income$64,889 $53,500 Plus: reduction in tax expense related to tax-exempt interest income 788 757 $65,677 $54,257 Divided by average interest-bearing assets 2,835,627 2,563,412 NIMTE3 4.66% 4.26% 2Calculated using actual days in the quarter divided by 365 for the quarters ended in 2025 and 366 for the quarters ended in 2024, respectively. 3Calculated using actual days in the year divided by 365 for year-to-date period in 2025 and 366 for year-to-date period in 2024, respectively. *Non-GAAP Financial Measures (Dollars and shares in thousands, except per share data)(Unaudited) Tangible Book Value Per Share Tangible book value per share is a non-GAAP measure defined as shareholders’ equity, less intangible assets, divided by 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 for the periods indicated. June 30, 2025 March 31, 2025 December 31, 2024 September 30, 2024 June 30, 2024 Total shareholders’ equity$290,219 $279,756 $267,116 $260,050 $247,200Divided by shares outstanding 5,522 5,521 5,518 5,502 5,502Book value per share$52.55 $50.68 $48.41 $47.26 $44.93 June 30, 2025 March 31, 2025 December 31, 2024 September 30, 2024 June 30, 2024 Total shareholders’ equity$290,219 $279,756 $267,116 $260,050 $247,200Less: goodwill and intangible assets 50,824 50,824 50,968 15,967 15,967 $239,395 $228,932 $216,148 $244,083 $231,233Divided by shares outstanding 5,522 5,521 5,518 5,502 5,502Tangible book value per share$43.35 $41.47 $39.17 $44.36 $42.03 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 for the periods indicated. Northrim BanCorp, Inc.June 30, 2025 March 31, 2025 December 31, 2024 September 30, 2024 June 30, 2024 Total shareholders’ equity$290,219 $279,756 $267,116 $260,050 $247,200 Total assets 3,243,760 3,140,960 3,041,869 2,963,392 2,821,668 Total shareholders’ equity to total assets 8.95% 8.91% 8.78% 8.78% 8.76% Northrim BanCorp, Inc.June 30, 2025 March 31, 2025 December 31, 2024 September 30, 2024 June 30, 2024Total shareholders’ equity$290,219 $279,756 $267,116 $260,050 $247,200 Less: goodwill and other intangible assets, net 50,824 50,824 50,968 15,967 15,967 Tangible common shareholders’ equity$239,395 $228,932 $216,148 $244,083 $231,233 Total assets$3,243,760 $3,140,960 $3,041,869 $2,963,392 $2,821,668 Less: goodwill and other intangible assets, net 50,824 50,824 50,968 15,967 15,967 Tangible assets$3,192,936 $3,090,136 $2,990,901 $2,947,425 $2,805,701 Tangible common equity ratio 7.50% 7.41% 7.23% 8.28% 8.24% Note Transmitted on GlobeNewswire on July 23, 2025, at 12:15 pm Alaska Standard Time.

Northrim BanCorp Earns $11.8 Million, or $2.09 Per Diluted Share, in Second Quarter 2025

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