Northrim BanCorp Earns $13.7 Million, or $0.61 Per Diluted Share, in First Quarter 2026
Rhea-AI Summary
Northrim BanCorp (NASDAQ:NRIM) reported net income $13.7M or $0.61 diluted EPS for Q1 2026. Portfolio loans reached $2.36B (up 11% YoY) and total deposits were $2.87B. NIMTE was 4.77%. Nonperforming assets rose to $15.3M and the allowance coverage declined to 175%.
Dividends remained $0.16 per share. Results reflected higher net interest income and mortgage banking income, partially offset by increased operating expenses and a provision for credit losses.
Positive
- Net income $13.7M (Q1 2026)
- Diluted EPS $0.61
- Portfolio loans $2.36B (up 11% YoY)
- Total deposits $2.87B
- NIMTE 4.77%
Negative
- Nonperforming assets $15.3M at March 31, 2026
- Allowance coverage 175% of nonperforming loans (down from 210%)
- Provision for credit losses $0.96M in Q1 2026
- Other operating expenses increased, pressuring adjusted results
News Market Reaction – NRIM
In the Apr 23 session, NRIM gained 3.54%, reflecting a moderate positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Jan 26 | Dividend declaration | Positive | -5.3% | Quarterly cash dividend of $0.16 alongside Q4 2025 earnings detail. |
| Jan 23 | Earnings report | Positive | -14.9% | Q4 2025 and full-year 2025 earnings growth with higher net income and loans. |
| Dec 05 | Dividend declaration | Positive | -3.1% | Regular quarterly $0.16 dividend and strong Q3 2025 profit update. |
| Nov 26 | Subordinated notes offering | Negative | -2.0% | Private placement of $60.0M 6.875% subordinated notes for capital support. |
| Nov 13 | Credit ratings | Positive | -0.2% | KBRA assigns investment-grade ratings with a Stable outlook highlighting earnings power. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Recent history shows the stock often trading lower after generally positive news, with only the subordinated notes offering showing a modest decline consistent with its more mixed/negative nature.
Over the last several months, Northrim has reported stronger earnings, steady dividends, and capital actions. Q4 2025 results featured higher net income and loan growth, yet the stock fell after both that report and subsequent dividend declarations. A $60.0M subordinated notes deal and KBRA investment-grade ratings also saw mild negative reactions. Against that backdrop, this Q1 2026 earnings report with higher net income and stable dividends continues the theme of solid fundamentals despite previously muted or negative price responses.
Key Terms
net interest margin financial
return on average assets financial
return on average equity financial
nonperforming assets financial
allowance for credit losses financial
efficiency ratio financial
consumer price index financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
ANCHORAGE, Alaska, April 22, 2026 (GLOBE NEWSWIRE) -- Northrim BanCorp, Inc. (NASDAQ:NRIM) (“Northrim” or the “Company”) today reported net income of
Dividends per share in the first quarter of 2026 remained consistent with quarterly dividends in 2025 at
“2026 is off to a strong start as another quarter of core loan growth, continued deposit growth and normalized operating expenses reflects Northrim’s ability to consistently execute our strategy,” said Mike Huston, Northrim’s President and Chief Executive Officer. “Our investments in people, technology and customer relationships continue to drive profitable growth, strengthen our market position and create long-term value for our shareholders.”
First Quarter 2026 Highlights:
- Net interest income in the first quarter of 2026 decreased
2% to$34.7 million compared to$35.4 million in the fourth quarter of 2025 and increased11% compared to$31.3 million in the first quarter of 2025. - Net interest margin on a tax equivalent basis (“NIMTE”)* was
4.77% for the first quarter of 2026, up 2-basis points from the fourth quarter of 2025 and up 16-basis points from the first quarter a year ago. - Return on average assets (“ROAA”) was
1.69% and return on average equity (“ROAE”) was16.60% for the first quarter of 2026 compared to ROAA of1.50% and ROAE of15.16% in the prior quarter and ROAA of1.76% and ROAE of19.70% for the first quarter of 2025. - Portfolio loans were
$2.36 billion at March 31, 2026, up3% from the preceding quarter and up11% 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”). Core loans (excluding consumer mortgages) were$2.09 billion at March 31, 2026, up8% from a year ago. - Total deposits were
$2.87 billion at March 31, 2026, up2% from the preceding quarter, and up3% from$2.78 billion a year ago. Non-interest bearing demand deposits increased14% from the preceding quarter and increased11% year-over-year to$826.4 million at March 31, 2026 and represent29% of total deposits. - The average cost of interest-bearing deposits was
1.77% at March 31, 2026, down from1.91% at December 31, 2025 and2.01% at March 31, 2025. - Average purchased receivables and loan balances for the Specialty Finance segment were
$132.2 million for the first quarter of 2026, compared to average balance of$137.4 million for the fourth quarter of 2025, and$97.1 million for the first quarter of 2025.
| Financial Highlights | Three Months Ended | ||||||||||||||
| (Dollars in thousands, except per share data) | March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | ||||||||||
| Total assets | $ | 3,354,908 | $ | 3,290,273 | $ | 3,312,332 | $ | 3,243,760 | $ | 3,140,960 | |||||
| Total portfolio loans | $ | 2,358,702 | $ | 2,295,499 | $ | 2,218,970 | $ | 2,202,115 | $ | 2,124,330 | |||||
| Total deposits | $ | 2,873,746 | $ | 2,813,029 | $ | 2,906,463 | $ | 2,809,170 | $ | 2,777,977 | |||||
| Net income | $ | 13,675 | $ | 12,441 | $ | 27,065 | $ | 11,778 | $ | 13,324 | |||||
| Adjusted net income* | $ | 13,675 | $ | 12,231 | $ | 16,195 | $ | 11,778 | $ | 13,324 | |||||
| Diluted earnings per share | $ | 0.61 | $ | 0.55 | $ | 1.20 | $ | 0.52 | $ | 0.60 | |||||
| Adjusted diluted earnings per share* | $ | 0.61 | $ | 0.54 | $ | 0.72 | $ | 0.52 | $ | 0.60 | |||||
| Return on average assets | 1.69 | % | 1.50 | % | 3.32 | % | 1.48 | % | 1.76 | % | |||||
| Adjusted return on average assets* | 1.69 | % | 1.47 | % | 1.99 | % | 1.48 | % | 1.76 | % | |||||
| Return on average shareholders’ equity | 16.60 | % | 15.16 | % | 35.66 | % | 16.37 | % | 19.70 | % | |||||
| Adjusted return on average shareholders’ equity* | 16.60 | % | 14.91 | % | 21.34 | % | 16.37 | % | 19.70 | % | |||||
| NIM | 4.72 | % | 4.70 | % | 4.83 | % | 4.66 | % | 4.55 | % | |||||
| NIMTE* | 4.77 | % | 4.75 | % | 4.88 | % | 4.72 | % | 4.61 | % | |||||
| Efficiency ratio | 61.81 | % | 64.70 | % | 45.51 | % | 64.68 | % | 63.54 | % | |||||
| Adjusted efficiency ratio* | 61.81 | % | 65.05 | % | 57.85 | % | 64.68 | % | 63.54 | % | |||||
| Total shareholders’ equity/total assets | 10.01 | % | 9.92 | % | 9.53 | % | 8.95 | % | 8.91 | % | |||||
| Tangible common equity/tangible assets* | 8.63 | % | 8.51 | % | 8.12 | % | 7.50 | % | 7.41 | % | |||||
* NIMTE, pre-provision pre-tax net revenue, tangible book value per share, and tangible common equity to tangible common assets, (both of which exclude intangible assets), represent non-GAAP financial measures. Adjusted net income, adjusted diluted earnings per share, adjusted return on average assets, adjusted return on average shareholders' equity, and adjusted efficiency ratio items exclude the impact of the sale of assets by Pacific Wealth Management and also 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 12.)
Alaska’s seasonally adjusted unemployment rate was
Alaska’s seasonally adjusted aggregate personal income was
Alaska’s Gross State Product (“GSP”) in the third quarter of 2025 reached
Alaska exported
According to the U.S. Bureau of Labor Statistics, the Consumer Price Index (“CPI”) for the U.S. increased
The monthly average price of Alaska North Slope (“ANS”) crude oil ranged between
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 February 28, 2026 the fund’s value was
According to the Alaska Multiple Listing Services, the average sales price of a single-family home in Anchorage rose
The average sales price for single family homes in the Matanuska Susitna Borough rose
The Alaska Multiple Listing Services reported a
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
Net Interest Income/Net Interest Margin
Net interest income decreased
NIMTE* was
Provision for Credit Losses
Northrim recorded a provision for credit losses of
Nonperforming assets (“NPAs”), net of government guarantees, increased during the quarter to
The allowance for credit losses on loans was
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. Other operating income contributed
Other Operating Expenses
Operating expenses were
Income Tax Provision
In the first quarter of 2026, Northrim recorded
Community Banking
In the most recent deposit market share data from the FDIC, Northrim’s deposit market share in Alaska increased to
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
The provision for credit losses in the Community Banking segment was
The decrease in other operating income in the Community Banking segment in the first quarter of 2026 as compared to the first quarter of 2025 was primarily the result of a loss on fair value of marketable securities and a decrease in interest rate swap income, which was only partially offset by higher service charges on deposit accounts.
Other operating expenses in the Community Banking segment totaled
The following table provides highlights of the Community Banking segment of Northrim:
| Three Months Ended | |||||||||||
| (Dollars in thousands, except per share data) | March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | ||||||
| Net interest income | $ | 31,840 | $ | 32,202 | $ | 32,309 | $ | 29,971 | $ | 28,151 | |
| Provision (benefit) for credit losses | 153 | 1,226 | 1,561 | 1,319 | (1,768 | ) | |||||
| Gain on sale by Pacific Wealth Advisors | — | 275 | 14,211 | — | — | ||||||
| Other operating income | 2,416 | 3,229 | 2,896 | 3,268 | 2,703 | ||||||
| Other operating expense | 20,390 | 22,090 | 19,965 | 21,764 | 18,581 | ||||||
| Income before provision for income taxes | 13,713 | 12,390 | 27,890 | 10,156 | 14,041 | ||||||
| Provision for income taxes | 3,213 | 3,628 | 5,634 | 2,413 | 3,253 | ||||||
| Net income | $ | 10,500 | $ | 8,762 | $ | 22,256 | $ | 7,743 | $ | 10,788 | |
| Weighted average shares outstanding, diluted | 22,577,720 | 22,533,320 | 22,502,680 | 22,446,232 | 22,432,408 | ||||||
| Diluted earnings per share attributable to Community Banking | $ | 0.47 | $ | 0.39 | $ | 0.98 | $ | 0.35 | $ | 0.48 | |
Home Mortgage Lending
During the first quarter of 2026, mortgage loans funded for sale were
During the first quarter of 2026, the Bank purchased loans of
The Company reclassified
The Arizona, Colorado, and Pacific Northwest mortgage expansion markets were responsible for
The provision for credit losses in the Home Mortgage Lending segment was
The net change in fair value of mortgage servicing rights decreased mortgage banking income by
As of March 31, 2026, Northrim serviced 6,637 loans in its
The following table provides highlights of the Home Mortgage Lending segment of Northrim:
| Three Months Ended | |||||||||||||||
| (Dollars in thousands, except per share data) | March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | ||||||||||
| Mortgage commitments | $ | 85,755 | $ | 45,704 | $ | 74,017 | $ | 73,198 | $ | 68,258 | |||||
| Mortgage loans funded for sale | $ | 123,384 | $ | 199,619 | $ | 218,234 | $ | 249,680 | $ | 108,499 | |||||
| Mortgage loans funded for investment | 28,301 | 31,624 | 15,815 | 27,455 | 13,061 | ||||||||||
| Total mortgage loans funded | $ | 151,685 | $ | 231,243 | $ | 234,049 | $ | 277,135 | $ | 121,560 | |||||
| Mortgage loan refinances to total fundings | 29 | % | 20 | % | 6 | % | 10 | % | 11 | % | |||||
| Mortgage loans serviced for others | $ | 1,642,195 | $ | 1,629,528 | $ | 1,601,174 | $ | 1,553,987 | $ | 1,484,714 | |||||
| Net realized and unrealized gains on mortgage loans sold and held for sale | $ | 2,997 | $ | 5,296 | $ | 4,810 | $ | 5,091 | $ | 1,580 | |||||
| Change in fair value of mortgage loan commitments, net | 720 | (575 | ) | 371 | (110 | ) | 660 | ||||||||
| Total production revenue | 3,717 | 4,721 | 5,181 | 4,981 | 2,240 | ||||||||||
| Mortgage servicing revenue | 2,667 | 2,113 | 3,056 | 2,957 | 2,696 | ||||||||||
| Change in fair value of mortgage servicing rights: | |||||||||||||||
| Due to changes in model inputs of assumptions1 | 463 | (87 | ) | (638 | ) | (355 | ) | (322 | ) | ||||||
| Other2 | (590 | ) | (772 | ) | (612 | ) | (463 | ) | (533 | ) | |||||
| Total mortgage servicing revenue, net | 2,540 | 1,254 | 1,806 | 2,139 | 1,841 | ||||||||||
| Other mortgage banking revenue | 204 | 338 | 286 | 280 | 170 | ||||||||||
| Total mortgage banking income | $ | 6,461 | $ | 6,313 | $ | 7,273 | $ | 7,400 | $ | 4,251 | |||||
| Net interest income | $ | 2,796 | $ | 2,918 | $ | 2,812 | $ | 3,507 | $ | 3,046 | |||||
| Provision (benefit) for credit losses | 562 | 688 | 158 | 639 | (307 | ) | |||||||||
| Mortgage banking income | 6,461 | 6,313 | 7,273 | 7,400 | 4,251 | ||||||||||
| Other operating expense | 7,201 | 8,325 | 7,365 | 7,593 | 6,490 | ||||||||||
| Income before provision for income taxes | 1,494 | 218 | 2,562 | 2,675 | 1,114 | ||||||||||
| Provision for income taxes | 408 | 5 | 706 | 746 | 310 | ||||||||||
| Net income | $ | 1,086 | $ | 213 | $ | 1,856 | $ | 1,929 | $ | 804 | |||||
| Weighted average shares outstanding, diluted | 22,577,720 | 22,533,320 | 22,502,680 | 22,446,232 | 22,432,408 | ||||||||||
| Diluted earnings per share attributable to Home Mortgage Lending | $ | 0.05 | $ | 0.01 | $ | 0.08 | $ | 0.09 | $ | 0.04 | |||||
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
Average purchased receivables and loan balances for the Specialty Finance segment were
The following table provides highlights of the Specialty Finance segment of Northrim:
| Three Months Ended | ||||||||||||
| (Dollars in thousands, except per share data) | March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | |||||||
| Total revenue3 | $ | 6,671 | $ | 7,400 | $ | 7,779 | $ | 6,754 | $ | 6,682 | ||
| Provision (benefit) for credit losses | 245 | (287 | ) | (3 | ) | 18 | 666 | |||||
| Compensation expense - SCF acquisition payments | 500 | 533 | 600 | 600 | 600 | |||||||
| Other operating expense | 2,531 | 2,476 | 2,370 | 2,531 | 2,500 | |||||||
| Interest expense | 644 | 679 | 695 | 668 | 496 | |||||||
| Total expense | 3,920 | 3,401 | 3,662 | 3,817 | 4,262 | |||||||
| Income before provision for income taxes | 2,751 | 3,999 | 4,117 | 2,937 | 2,420 | |||||||
| Provision for income taxes | 662 | 533 | 1,164 | 831 | 688 | |||||||
| Net income Specialty Finance segment | $ | 2,089 | $ | 3,466 | $ | 2,953 | $ | 2,106 | $ | 1,732 | ||
| Weighted average shares outstanding, diluted | 22,577,720 | 22,533,320 | 22,502,680 | 22,446,232 | 22,432,408 | |||||||
| Diluted earnings per share attributable to Specialty Finance | $ | 0.09 | $ | 0.15 | $ | 0.13 | $ | 0.09 | $ | 0.08 | ||
3Includes interest income, purchased receivable income, and other operating income.
Balance Sheet Review
Northrim’s total assets were
At March 31, 2026, liquid assets, investments, and loans maturing within one year were
Average interest-earning assets were
Average investment securities decreased slightly to
Average interest bearing deposits in other banks decreased to
Loans held for sale decreased to
Portfolio loans were
Alaskans continue to account for substantially all of Northrim’s deposit base. Total deposits were
Shareholders’ equity was
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.
NPAs net of government guarantees were
Net adversely classified loans were
Northrim had
Northrim estimates that
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.
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 financial condition, results of operations, asset based lending volumes, asset and credit quality trends and profitability; the ability of Northrim to execute its business plans; potential further increases in interest rates; the value of securities held in our investment portfolio; the impact of the results of government shutdowns and 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, tariffs, 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 wars in Ukraine and Iran; 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 and increased cyber threats due to artificial intelligence; 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, 2025, 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.
Media Contact: Mercedes Cozzubbo (Morgan & Morgan) – pr@forthepeople.com / (407) 244-3986
References:
http://almis.labor.state.ak.us/
http://www.tax.alaska.gov/programs/oil/prevailing/ans.aspx
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://www.capitaliq.spglobal.com/web/client?auth=inherit&overridecdc=1&#markets/indexFinancials
| Income Statement | ||||||||
| (Dollars in thousands, except per share data) | Three Months Ended | |||||||
| (Unaudited) | March 31, | December 31, | March 31, | |||||
| 2026 | 2025 | 2025 | ||||||
| Interest Income: | ||||||||
| Interest and fees on loans | $ | 39,977 | $ | 41,015 | $ | 37,470 | ||
| Interest on portfolio investments | 3,774 | 3,538 | 3,675 | |||||
| Interest on deposits in banks | 1,145 | 1,488 | 416 | |||||
| Total interest income | 44,896 | 46,041 | 41,561 | |||||
| Interest Expense: | ||||||||
| Interest expense on deposits | 8,997 | 10,078 | 9,935 | |||||
| Interest expense on borrowings | 1,238 | 588 | 329 | |||||
| Total interest expense | 10,235 | 10,666 | 10,264 | |||||
| Net interest income | 34,661 | 35,375 | 31,297 | |||||
| Provision (benefit) for credit losses | 960 | 1,627 | (1,409 | ) | ||||
| Net interest income after provision for credit losses | 33,701 | 33,748 | 32,706 | |||||
| Other Operating Income: | ||||||||
| Mortgage banking income | 6,461 | 6,313 | 4,251 | |||||
| Purchased receivable income | 6,132 | 6,490 | 6,150 | |||||
| Bankcard fees | 1,089 | 1,219 | 1,074 | |||||
| Service charges on deposit accounts | 811 | 787 | 677 | |||||
| Unrealized (loss) gain on marketable equity securities | (256 | ) | 61 | (50 | ) | |||
| Gain on sale by Pacific Wealth Advisors | — | 275 | — | |||||
| Gain on sale of securities | — | 1 | — | |||||
| Other income | 642 | 1,137 | 938 | |||||
| Total other operating income | 14,879 | 16,283 | 13,040 | |||||
| Other Operating Expense: | ||||||||
| Salaries and other personnel expense | 19,506 | 20,828 | 17,223 | |||||
| Data processing expense | 3,305 | 3,415 | 3,104 | |||||
| Occupancy expense | 2,104 | 1,908 | 1,889 | |||||
| Professional and outside services | 1,159 | 1,342 | 1,115 | |||||
| Insurance expense | 404 | 637 | 1,017 | |||||
| Compensation expense - SCF acquisition payments | 500 | 533 | 600 | |||||
| Marketing expense | 901 | 1,506 | 672 | |||||
| OREO expense, net rental income and gains on sale | 12 | — | 3 | |||||
| Other expense | 2,731 | 3,255 | 2,548 | |||||
| Total other operating expense | 30,622 | 33,424 | 28,171 | |||||
| Income before provision for income taxes | 17,958 | 16,607 | 17,575 | |||||
| Provision for income taxes | 4,283 | 4,166 | 4,251 | |||||
| Net income | $ | 13,675 | $ | 12,441 | $ | 13,324 | ||
| Basic EPS | $ | 0.62 | $ | 0.56 | $ | 0.60 | ||
| Diluted EPS | $ | 0.61 | $ | 0.55 | $ | 0.60 | ||
| Weighted average shares outstanding, basic | 22,166,888 | 22,097,658 | 22,079,992 | |||||
| Weighted average shares outstanding, diluted | 22,577,720 | 22,533,320 | 22,432,408 | |||||
| Pre-provision pre-tax net revenue (“PPNR”)* | $ | 18,918 | $ | 18,234 | $ | 16,166 | ||
| Balance Sheet | |||||||||
| (Dollars in thousands) | |||||||||
| (Unaudited) | March 31, | December 31, | March 31, | ||||||
| 2026 | 2025 | 2025 | |||||||
| Assets: | |||||||||
| Cash and due from banks | $ | 33,030 | $ | 36,042 | $ | 29,671 | |||
| Interest bearing deposits in other banks | 121,907 | 109,864 | 35,852 | ||||||
| Investment securities available for sale, at fair value | 418,447 | 420,661 | 463,096 | ||||||
| Investment securities held to maturity | 31,750 | 26,750 | 36,750 | ||||||
| Marketable equity securities, at fair value | 10,145 | 8,392 | 8,669 | ||||||
| Investment in Federal Home Loan Bank stock | 7,060 | 6,764 | 5,342 | ||||||
| Loans held for sale | 81,179 | 100,323 | 159,603 | ||||||
| Portfolio loans | 2,358,702 | 2,295,499 | 2,124,330 | ||||||
| Allowance for credit losses, loans | (24,812 | ) | (23,737 | ) | (20,922 | ) | |||
| Net portfolio loans | 2,333,890 | 2,271,762 | 2,103,408 | ||||||
| Purchased receivables, net | 105,029 | 101,642 | 95,489 | ||||||
| Mortgage servicing rights, at fair value | 28,426 | 27,474 | 26,814 | ||||||
| Other real estate owned, net | 1,036 | — | — | ||||||
| Premises and equipment, net | 41,728 | 39,692 | 37,070 | ||||||
| Lease right of use asset | 11,749 | 5,911 | 7,632 | ||||||
| Goodwill and intangible assets | 50,824 | 50,824 | 50,824 | ||||||
| Other assets | 78,708 | 84,172 | 80,740 | ||||||
| Total assets | $ | 3,354,908 | $ | 3,290,273 | $ | 3,140,960 | |||
| Liabilities: | |||||||||
| Demand deposits | $ | 826,445 | $ | 721,925 | $ | 742,560 | |||
| Interest-bearing demand | 1,215,182 | 1,242,546 | 1,187,465 | ||||||
| Savings deposits | 243,667 | 250,006 | 256,650 | ||||||
| Money market deposits | 197,402 | 195,793 | 193,842 | ||||||
| Time deposits | 391,050 | 402,759 | 397,460 | ||||||
| Total deposits | 2,873,746 | 2,813,029 | 2,777,977 | ||||||
| Borrowings | 81,652 | 81,729 | 23,446 | ||||||
| Lease liability | 11,857 | 5,941 | 7,682 | ||||||
| Other liabilities | 51,844 | 63,030 | 52,099 | ||||||
| Total liabilities | 3,019,099 | 2,963,729 | 2,861,204 | ||||||
| Shareholders’ Equity: | |||||||||
| Total shareholders’ equity | 335,809 | 326,544 | 279,756 | ||||||
| Total liabilities and shareholders’ equity | $ | 3,354,908 | $ | 3,290,273 | $ | 3,140,960 | |||
Additional Financial Information
(Dollars in thousands)
(Unaudited)
| Composition of Portfolio Loans | |||||||||||||||||||||||||||||
| March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | |||||||||||||||||||||||||
| Balance | % of total | Balance | % of total | Balance | % of total | Balance | % of total | Balance | % of total | ||||||||||||||||||||
| Commercial loans | $ | 599,912 | 25 | % | $ | 569,128 | 25 | % | $ | 558,736 | 25 | % | $ | 569,753 | 27 | % | $ | 573,593 | 27 | % | |||||||||
| Commercial real estate: | |||||||||||||||||||||||||||||
| Owner occupied properties | 436,979 | 18 | % | 435,050 | 19 | % | 439,971 | 20 | % | 447,561 | 20 | % | 430,442 | 20 | % | ||||||||||||||
| Nonowner occupied and | |||||||||||||||||||||||||||||
| multifamily properties | 770,325 | 33 | % | 767,618 | 32 | % | 717,576 | 32 | % | 696,766 | 31 | % | 690,277 | 32 | % | ||||||||||||||
| Residential real estate: | |||||||||||||||||||||||||||||
| 1-4 family properties | |||||||||||||||||||||||||||||
| secured by first liens | 264,555 | 11 | % | 243,167 | 11 | % | 216,690 | 10 | % | 206,905 | 9 | % | 188,219 | 9 | % | ||||||||||||||
| 1-4 family properties | |||||||||||||||||||||||||||||
| secured by junior liens & | |||||||||||||||||||||||||||||
| revolving secured by first liens | 70,464 | 3 | % | 66,470 | 3 | % | 65,698 | 3 | % | 60,118 | 3 | % | 53,836 | 3 | % | ||||||||||||||
| 1-4 family construction | 38,900 | 2 | % | 39,311 | 2 | % | 37,429 | 2 | % | 36,005 | 2 | % | 34,017 | 2 | % | ||||||||||||||
| Construction loans | 178,029 | 8 | % | 175,261 | 8 | % | 184,447 | 8 | % | 187,442 | 8 | % | 156,211 | 7 | % | ||||||||||||||
| Consumer loans | 9,097 | — | % | 9,658 | — | % | 8,236 | — | % | 7,570 | — | % | 7,424 | — | % | ||||||||||||||
| Subtotal | 2,368,261 | 2,305,663 | 2,228,783 | 2,212,120 | 2,134,019 | ||||||||||||||||||||||||
| Unearned loan fees, net | (9,559 | ) | (10,164 | ) | (9,813 | ) | (10,005 | ) | (9,689 | ) | |||||||||||||||||||
| Total portfolio loans | $ | 2,358,702 | $ | 2,295,499 | $ | 2,218,970 | $ | 2,202,115 | $ | 2,124,330 | |||||||||||||||||||
| Composition of Deposits | ||||||||||||||||||||||||
| March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | ||||||||||||||||||||
| Balance | % of total | Balance | % of total | Balance | % of total | Balance | % of total | Balance | % of total | |||||||||||||||
| Demand deposits | $ | 826,445 | 29 | % | $ | 721,925 | 26 | % | $ | 872,086 | 30 | % | $ | 777,948 | 28 | % | $ | 742,560 | 27 | % | ||||
| Interest-bearing demand | 1,215,182 | 42 | % | 1,242,546 | 44 | % | 1,191,867 | 41 | % | 1,196,048 | 42 | % | 1,187,465 | 43 | % | |||||||||
| Savings deposits | 243,667 | 8 | % | 250,006 | 9 | % | 239,738 | 8 | % | 248,141 | 9 | % | 256,650 | 9 | % | |||||||||
| Money market deposits | 197,402 | 7 | % | 195,793 | 7 | % | 202,491 | 7 | % | 196,166 | 7 | % | 193,842 | 7 | % | |||||||||
| Time deposits | 391,050 | 14 | % | 402,759 | 14 | % | 400,281 | 14 | % | 390,867 | 14 | % | 397,460 | 14 | % | |||||||||
| Total deposits | $ | 2,873,746 | $ | 2,813,029 | $ | 2,906,463 | $ | 2,809,170 | $ | 2,777,977 | ||||||||||||||
Additional Financial Information
(Dollars in thousands)
(Unaudited)
| Asset Quality | March 31, | December 31, | March 31, | |||||
| 2026 | 2025 | 2025 | ||||||
| Nonaccrual loans - Community Banking | $ | 10,006 | $ | 9,066 | $ | 4,274 | ||
| Nonaccrual loans - Home Mortgage Lending | 499 | 514 | 221 | |||||
| Nonaccrual loans - Specialty Finance | 4,276 | 2,388 | 3,573 | |||||
| Nonaccrual loans - Total | 14,781 | 11,968 | 8,068 | |||||
| Loans 90 days past due and accruing - Community Banking | — | — | — | |||||
| Loans 90 days past due and accruing - Home Mortgage Lending | — | — | — | |||||
| Loans 90 days past due and accruing - Total | — | — | — | |||||
| Total nonperforming loans - Community Banking | 10,006 | 9,066 | 4,274 | |||||
| Total nonperforming loans - Home Mortgage Lending | 499 | 514 | 221 | |||||
| Total nonperforming loans - Specialty Finance | 4,276 | 2,388 | 3,573 | |||||
| Total nonperforming loans - Total | 14,781 | 11,968 | 8,068 | |||||
| Nonperforming loans guaranteed by gov't - Community Banking | 567 | 639 | 80 | |||||
| Nonperforming loans guaranteed by gov't - Total | 567 | 639 | 80 | |||||
| Net nonperforming loans - Community Banking | 9,439 | 8,427 | 4,194 | |||||
| Net nonperforming loans - Home Mortgage Lending | 499 | 514 | 221 | |||||
| Net nonperforming loans - Specialty Finance | 4,276 | 2,388 | 3,573 | |||||
| Net nonperforming loans - Total | 14,214 | 11,329 | 7,988 | |||||
| Other real estate owned - Community Banking | 1,036 | — | — | |||||
| Other real estate owned - Home Mortgage Lending | — | — | — | |||||
| Other real estate owned - Specialty Finance | — | — | — | |||||
| Other real estate owned - Total | 1,036 | — | — | |||||
| Other real estate owned guaranteed by government - Community Banking | — | — | — | |||||
| Other real estate owned guaranteed by government - Home Mortgage Lending | — | — | — | |||||
| Other real estate owned guaranteed by government - Specialty Finance | — | — | — | |||||
| Other real estate owned guaranteed by government - Total | — | — | — | |||||
| Repossessed assets - Community Banking | — | — | 297 | |||||
| Repossessed assets - Total | — | — | 297 | |||||
| Nonperforming purchased receivables - Specialty Finance | — | 67 | 4,007 | |||||
| Net nonperforming assets - Community Banking | 10,475 | 8,427 | 4,491 | |||||
| Net nonperforming assets - Home Mortgage Lending | 499 | 514 | 221 | |||||
| Net nonperforming assets - Specialty Finance | 4,276 | 2,455 | 7,580 | |||||
| Net nonperforming assets - Total | $ | 15,250 | $ | 11,396 | $ | 12,292 | ||
| Adversely classified loans, net of gov't guarantees - Community Banking | $ | 29,395 | $ | 29,447 | $ | 16,592 | ||
| Adversely classified loans, net of gov't guarantees - Home Mortgage Lending | 667 | 687 | 252 | |||||
| Adversely classified loans, net of gov't guarantees - Specialty Finance | 4,276 | 3,364 | 3,573 | |||||
| Adversely classified loans, net of gov't guarantees - Total | $ | 34,338 | $ | 33,498 | $ | 20,417 | ||
| Special mention loans, net of gov't guarantees - Community Banking | $ | 7,985 | $ | 10,481 | $ | 14,496 | ||
| Special mention loans, net of gov't guarantees - Home Mortgage Lending | — | — | 637 | |||||
| Special mention loans, net of gov't guarantees - Total | $ | 7,985 | $ | 10,481 | $ | 15,133 | ||
| Asset Quality, Continued | March 31, | December 31, | March 31, | |||||||||
| 2026 | 2025 | 2025 | ||||||||||
| Nonperforming loans, net of government guarantees / portfolio loans | 0.60 | % | 0.49 | % | 0.38 | % | ||||||
| Nonperforming loans, net of government guarantees / portfolio loans, | ||||||||||||
| net of government guarantees | 0.64 | % | 0.53 | % | 0.40 | % | ||||||
| Nonperforming assets, net of government guarantees / total assets | 0.45 | % | 0.35 | % | 0.39 | % | ||||||
| Nonperforming assets, net of government guarantees / total assets | ||||||||||||
| net of government guarantees | 0.48 | % | 0.36 | % | 0.41 | % | ||||||
| Loans 30-89 days past due and accruing, net of government guarantees / | % | |||||||||||
| portfolio loans | 0.09 | % | 0.07 | % | 0.04 | % | ||||||
| Loans 30-89 days past due and accruing, net of government guarantees / | ||||||||||||
| portfolio loans, net of government guarantees | 0.10 | % | 0.08 | % | 0.04 | % | ||||||
| Allowance for credit losses for loans / portfolio loans | 1.05 | % | 1.03 | % | 0.98 | % | ||||||
| Allowance for credit losses for loans / portfolio loans, net of gov't guarantees | 1.12 | % | 1.10 | % | 1.06 | % | ||||||
| Allowance for credit losses for loans / nonperforming loans, net of | ||||||||||||
| government guarantees | 175 | % | 210 | % | 262 | % | ||||||
| Gross loan charge-offs for the quarter - Community Banking | $ | 2 | $ | 214 | $ | 50 | ||||||
| Gross loan charge-offs for the quarter - Specialty Finance | 250 | 317 | — | |||||||||
| Gross loan charge-offs for the quarter - Total | 252 | 531 | 50 | |||||||||
| Gross loan recoveries for the quarter - Community Banking | (41 | ) | (36 | ) | (84 | ) | ||||||
| Gross loan recoveries for the quarter - Specialty Finance | — | — | — | |||||||||
| Gross loan recoveries for the quarter - Total | $ | (41 | ) | $ | (36 | ) | $ | (84 | ) | |||
| Net loan (recoveries) charge-offs for the quarter - Community Banking | $ | (39 | ) | $ | 178 | $ | (34 | ) | ||||
| Net loan (recoveries) charge-offs for the quarter - Specialty Finance | 250 | 317 | — | |||||||||
| Net loan (recoveries) charge-offs for the quarter - Total | $ | 211 | $ | 495 | $ | (34 | ) | |||||
| Net loan charge-offs (recoveries) for the quarter / average loans, for the quarter | 0.01 | % | 0.02 | % | — | % | ||||||
| Allowance for credit losses for purchased receivables / purchased receivables | — | % | — | % | 3.72 | % | ||||||
| Net purchased receivable (recoveries) charge-offs for the quarter | $ | (5 | ) | $ | 1,911 | $ | — | |||||
| Net purchased receivable (recoveries) charge-offs for the quarter / | ||||||||||||
| average purchased receivables, for the quarter | — | % | 1.76 | % | NA | |||||||
Additional Financial Information
(Dollars in thousands)
(Unaudited)
| Average Balances, Yields, and Rates | |||||||||||||||||
| Three Months Ended | |||||||||||||||||
| March 31, 2026 | December 31, 2025 | March 31, 2025 | |||||||||||||||
| Average | Average | Average | |||||||||||||||
| Average | Tax Equivalent | Average | Tax Equivalent | Average | Tax Equivalent | ||||||||||||
| Balance | Yield/Rate | Balance | Yield/Rate | Balance | Yield/Rate | ||||||||||||
| Assets | |||||||||||||||||
| Interest bearing deposits in other banks | $ | 123,643 | 3.71 | % | $ | 149,812 | 3.89 | % | $ | 37,969 | 4.44 | % | |||||
| Portfolio investments | 466,386 | 3.44 | % | 466,548 | 3.18 | % | 523,753 | 2.97 | % | ||||||||
| Loans held for sale | 74,144 | 5.83 | % | 101,132 | 5.91 | % | 46,223 | 5.86 | % | ||||||||
| Portfolio loans | 2,305,181 | 6.86 | % | 2,268,177 | 6.95 | % | 2,173,425 | 6.89 | % | ||||||||
| Total interest-earning assets | 2,969,354 | 6.17 | % | 2,985,669 | 6.17 | % | 2,781,370 | 6.10 | % | ||||||||
| Nonearning assets | 311,415 | 315,422 | 293,415 | ||||||||||||||
| Total assets | $ | 3,280,769 | $ | 3,301,091 | $ | 3,074,785 | |||||||||||
| Liabilities and Shareholders’ Equity | |||||||||||||||||
| Interest-bearing deposits | $ | 2,067,101 | 1.77 | % | $ | 2,095,675 | 1.91 | % | $ | 2,002,594 | 2.01 | % | |||||
| Borrowings | 81,702 | 6.13 | % | 46,238 | 5.01 | % | 37,081 | 3.55 | % | ||||||||
| Total interest-bearing liabilities | 2,148,803 | 1.93 | % | 2,141,913 | 1.97 | % | 2,039,675 | 2.04 | % | ||||||||
| Noninterest-bearing demand deposits | 732,454 | 763,037 | 697,534 | ||||||||||||||
| Other liabilities | 65,492 | 70,602 | 63,348 | ||||||||||||||
| Shareholders’ equity | 334,020 | 325,539 | 274,228 | ||||||||||||||
| Total liabilities and shareholders’ equity | $ | 3,280,769 | $ | 3,301,091 | $ | 3,074,785 | |||||||||||
| Net spread | 4.24 | % | 4.20 | % | 4.06 | % | |||||||||||
| NIM | 4.72 | % | 4.70 | % | 4.55 | % | |||||||||||
| NIMTE* | 4.77 | % | 4.75 | % | 4.61 | % | |||||||||||
| Cost of funds | 1.44 | % | 1.46 | % | 1.52 | % | |||||||||||
| Average portfolio loans to average | |||||||||||||||||
| interest-earning assets | 77.63 | % | 75.97 | % | 78.14 | % | |||||||||||
| Average portfolio loans to average total deposits | 82.34 | % | 79.34 | % | 80.49 | % | |||||||||||
| Average non-interest deposits to average | |||||||||||||||||
| total deposits | 26.16 | % | 26.69 | % | 25.83 | % | |||||||||||
| Average interest-earning assets to average | |||||||||||||||||
| interest-bearing liabilities | 138.19 | % | 139.39 | % | 136.36 | % | |||||||||||
Additional Financial Information
(Dollars in thousands, except per share data)
(Unaudited)
| Capital Data (At quarter end) | ||||||||||||
| March 31, 2026 | December 31, 2025 | March 31, 2025 | ||||||||||
| Book value per share | $ | 15.10 | $ | 14.77 | $ | 12.67 | ||||||
| Tangible book value per share* | $ | 12.81 | $ | 12.47 | $ | 10.37 | ||||||
| Total shareholders’ equity/total assets | 10.01 | % | 9.92 | % | 8.91 | % | ||||||
| Tangible Common Equity/Tangible Assets* | 8.63 | % | 8.51 | % | 7.41 | % | ||||||
| Common Equity Tier 1 Capital / Risk Adjusted Assets | 10.59 | % | 10.31 | % | 9.37 | % | ||||||
| Tier 1 Capital / Risk Adjusted Assets | 10.95 | % | 10.67 | % | 9.76 | % | ||||||
| Total Capital / Risk Adjusted Assets | 14.14 | % | 13.86 | % | 10.62 | % | ||||||
| Tier 1 Capital / Average Assets | 9.13 | % | 8.77 | % | 8.02 | % | ||||||
| Shares outstanding | 22,244,766 | 22,111,637 | 22,083,568 | |||||||||
| Total unrealized loss on AFS debt securities, net of income taxes | $ | (927 | ) | $ | (480 | ) | $ | (5,452 | ) | |||
| Total unrealized gain on derivatives and hedging activities, net of income taxes | $ | 1,032 | $ | 1,028 | $ | 1,097 | ||||||
| Profitability Ratios | ||||||||||
| March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | ||||||
| Three Months Ended: | ||||||||||
| NIM | 4.72 | % | 4.70 | % | 4.83 | % | 4.66 | % | 4.55 | % |
| NIMTE* | 4.77 | % | 4.75 | % | 4.88 | % | 4.72 | % | 4.61 | % |
| Efficiency ratio | 61.81 | % | 64.70 | % | 45.51 | % | 64.68 | % | 63.54 | % |
| Adjusted efficiency ratio* | 61.81 | % | 65.05 | % | 57.85 | % | 64.68 | % | 63.54 | % |
| Return on average assets | 1.69 | % | 1.50 | % | 3.32 | % | 1.48 | % | 1.76 | % |
| Adjusted return on average assets* | 1.69 | % | 1.47 | % | 1.99 | % | 1.48 | % | 1.76 | % |
| Return on average equity | 16.60 | % | 15.16 | % | 35.66 | % | 16.37 | % | 19.70 | % |
| Adjusted return on average shareholders' equity* | 16.60 | % | 14.91 | % | 21.34 | % | 16.37 | % | 19.70 | % |
*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
| Three Months Ended | |||||||||||||||||||
| March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | |||||||||||||||
| Net interest income | $ | 34,661 | $ | 35,375 | $ | 35,346 | $ | 33,592 | $ | 31,297 | |||||||||
| Divided by average interest-bearing assets | 2,969,354 | 2,985,669 | 2,906,830 | 2,889,289 | 2,781,370 | ||||||||||||||
| Net interest margin (“NIM”)2 | 4.72 | % | 4.70 | % | 4.83 | % | 4.66 | % | 4.55 | % | |||||||||
| Net interest income | $ | 34,661 | $ | 35,375 | $ | 35,346 | $ | 33,592 | $ | 31,297 | |||||||||
| Plus: reduction in tax expense related to | |||||||||||||||||||
| tax-exempt interest income | 400 | 386 | 373 | 409 | 379 | ||||||||||||||
| $ | 35,061 | $ | 35,761 | $ | 35,719 | $ | 34,001 | $ | 31,676 | ||||||||||
| Divided by average interest-bearing assets | 2,969,354 | 2,985,669 | 2,906,830 | 2,889,289 | 2,781,370 | ||||||||||||||
| NIMTE2 | 4.77 | % | 4.75 | % | 4.88 | % | 4.72 | % | 4.61 | % | |||||||||
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.
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.
| March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | ||||||||||
| Total shareholders’ equity | $ | 335,809 | $ | 326,544 | $ | 315,663 | $ | 290,219 | $ | 279,756 | ||||
| Divided by shares outstanding | 22,245 | 22,112 | 22,091 | 22,088 | 22,084 | |||||||||
| Book value per share | $ | 15.10 | $ | 14.77 | $ | 14.29 | $ | 13.14 | $ | 12.67 | ||||
| March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | ||||||||||
| Total shareholders’ equity | $ | 335,809 | $ | 326,544 | $ | 315,663 | $ | 290,219 | $ | 279,756 | ||||
| Less: goodwill and intangible assets | 50,824 | 50,824 | 50,824 | 50,824 | 50,824 | |||||||||
| $ | 284,985 | $ | 275,720 | $ | 264,839 | $ | 239,395 | $ | 228,932 | |||||
| Divided by shares outstanding | 22,245 | 22,112 | 22,091 | 22,088 | 22,084 | |||||||||
| Tangible book value per share | $ | 12.81 | $ | 12.47 | $ | 11.99 | $ | 10.84 | $ | 10.37 | ||||
*Non-GAAP Financial Measures
(Dollars and shares in thousands, except per share data)
(Unaudited)
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. | March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | ||||||||||||||
| Total shareholders’ equity | $ | 335,809 | $ | 326,544 | $ | 315,663 | $ | 290,219 | $ | 279,756 | |||||||||
| Total assets | 3,354,908 | 3,290,273 | 3,312,332 | 3,243,760 | 3,140,960 | ||||||||||||||
| Total shareholders’ equity to total assets | 10.01 | % | 9.92 | % | 9.53 | % | 8.95 | % | 8.91 | % | |||||||||
| Northrim BanCorp, Inc. | March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | ||||||||||||||
| Total shareholders’ equity | $ | 335,809 | $ | 326,544 | $ | 315,663 | $ | 290,219 | $ | 279,756 | |||||||||
| Less: goodwill and other intangible assets, net | 50,824 | 50,824 | 50,824 | 50,824 | 50,824 | ||||||||||||||
| Tangible common shareholders’ equity | $ | 284,985 | $ | 275,720 | $ | 264,839 | $ | 239,395 | $ | 228,932 | |||||||||
| Total assets | $ | 3,354,908 | $ | 3,290,273 | $ | 3,312,332 | $ | 3,243,760 | $ | 3,140,960 | |||||||||
| Less: goodwill and other intangible assets, net | 50,824 | 50,824 | 50,824 | 50,824 | 50,824 | ||||||||||||||
| Tangible assets | $ | 3,304,084 | $ | 3,239,449 | $ | 3,261,508 | $ | 3,192,936 | $ | 3,090,136 | |||||||||
| Tangible common equity ratio | 8.63 | % | 8.51 | % | 8.12 | % | 7.50 | % | 7.41 | % | |||||||||
*Non-GAAP Financial Measures
(Dollars and shares in thousands, except per share data)
(Unaudited)
Pre-provision pre-tax net revenue
Pre-provision pre-tax net revenue is a non-GAAP measure that represents income before provision for income taxes excluding the provision for credit losses. The most comparable GAAP measure is income before provision for income taxes and the following tables set forth the reconciliation of pre-provision pre-tax net revenue to income before provision for income taxes for the periods indicated.
| Three Months Ended | |||||||||||||||
| Northrim BanCorp, Inc. | March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | ||||||||||
| Net interest income | $ | 34,661 | $ | 35,375 | $ | 35,346 | $ | 33,592 | $ | 31,297 | |||||
| Provision for credit losses | 960 | 1,627 | 1,716 | 1,976 | (1,409 | ) | |||||||||
| Total other operating income | 14,879 | 16,283 | 31,239 | 16,640 | 13,040 | ||||||||||
| Less: total other operating expense | 30,622 | 33,424 | 30,300 | 32,488 | 28,171 | ||||||||||
| Income before provision for income taxes | $ | 17,958 | $ | 16,607 | $ | 34,569 | $ | 15,768 | $ | 17,575 | |||||
| Three Months Ended | ||||||||||||||
| Northrim BanCorp, Inc. | March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | |||||||||
| Net interest income | $ | 34,661 | $ | 35,375 | $ | 35,346 | $ | 33,592 | $ | 31,297 | ||||
| Total other operating income | 14,879 | 16,283 | 31,239 | 16,640 | 13,040 | |||||||||
| Less: total other operating expense | 30,622 | 33,424 | 30,300 | 32,488 | 28,171 | |||||||||
| Pre-provision pre-tax net revenue | $ | 18,918 | $ | 18,234 | $ | 36,285 | $ | 17,744 | $ | 16,166 | ||||
*Non-GAAP Financial Measures
(Dollars and shares in thousands, except per share data)
(Unaudited)
Adjusted net income
Adjusted net income is a non-GAAP measure that represents net income excluding the gain on sale of certain assets by Pacific Wealth Advisors The most comparable GAAP measure is net income and the following tables set forth the reconciliation of net income to adjusted net income for the periods indicated.
| Three Months Ended | |||||
| Northrim BanCorp, Inc. | December 31, 2025 | September 30, 2025 | |||
| Net income | $ | 12,441 | $ | 27,065 | |
| Net income | $ | 12,441 | $ | 27,065 | |
| Less: gain on sale by Pacific Wealth Advisors, net of tax | 210 | 10,870 | |||
| Adjusted net income | $ | 12,231 | $ | 16,195 | |
Adjusted diluted earnings per share
Adjusted diluted earnings per share is a non-GAAP measure that represents diluted earnings per share excluding the gain on sale of certain assets by Pacific Wealth Advisors The most comparable GAAP measure is diluted earnings per share and the following tables set forth the reconciliation of diluted earnings per share to adjusted diluted earnings per share for the periods indicated.
| Three Months Ended | |||||
| Northrim BanCorp, Inc. | December 31, 2025 | September 30, 2025 | |||
| Net income | $ | 12,441 | $ | 27,065 | |
| Divided by weighted average shares outstanding, diluted | 22,533,320 | 22,502,680 | |||
| Diluted earnings per share | $ | 0.55 | $ | 1.20 | |
| Net income | $ | 12,441 | $ | 27,065 | |
| Less: gain on sale by Pacific Wealth Advisors, net of tax | 210 | 10,870 | |||
| Adjusted net income | $ | 12,231 | $ | 16,195 | |
| Divided by weighted average shares outstanding, diluted | 22,533,320 | 22,502,680 | |||
| Diluted earnings per share | $ | 0.54 | $ | 0.72 | |
*Non-GAAP Financial Measures
(Dollars and shares in thousands, except per share data)
(Unaudited)
Adjusted return on average assets
Adjusted return on average assets is a non-GAAP measure that represents the return on average assets excluding the gain on sale of certain assets by Pacific Wealth Advisors, net of tax expense. The most comparable GAAP measure is return on average assets and the following tables set forth the reconciliation of return on average assets to adjusted return on average assets for the periods indicated.
| Three Months Ended | ||||||||
| Northrim BanCorp, Inc. | December 31, 2025 | September 30, 2025 | ||||||
| Net income | $ | 12,441 | $ | 27,065 | ||||
| Divided by average assets | 3,301,091 | 3,229,655 | ||||||
| Return on average assets4 | 1.50 | % | 3.32 | % | ||||
| Net income | $ | 12,441 | $ | 27,065 | ||||
| Less: gain on sale by Pacific Wealth Advisors, net of tax | 210 | 10,870 | ||||||
| Adjusted net income | $ | 12,231 | $ | 16,195 | ||||
| Divided by average assets | 3,301,091 | 3,229,655 | ||||||
| Adjusted return on average assets4 | 1.47 | % | 1.99 | % | ||||
Adjusted return on average shareholders' equity
Adjusted return on average shareholders' equity is a non-GAAP measure that represents the return on average shareholders' equity excluding the gain on sale of certain assets by Pacific Wealth Advisors, net of tax expense. The most comparable GAAP measure is return on average shareholders' equity and the following tables set forth the reconciliation of return on average shareholders' equity to adjusted return on average shareholders' equity for the periods indicated.
| Three Months Ended | |||||||
| Northrim BanCorp, Inc. | December 31, 2025 | September 30, 2025 | |||||
| Net income | $ | 12,441 | $ | 27,065 | |||
| Divided by average shareholders' equity | 325,539 | 301,082 | |||||
| Return on average shareholders' equity4 | 15.16 | % | 35.66 | % | |||
| Net income | $ | 12,441 | $ | 27,065 | |||
| Less: gain on sale by Pacific Wealth Advisors, net of tax | 210 | 10,870 | |||||
| Adjusted net income | $ | 12,231 | $ | 16,195 | |||
| Divided by average shareholders' equity | 325,539 | 301,082 | |||||
| Adjusted return on average shareholders' equity3 | 14.91 | % | 21.34 | % | |||
3Calculated using actual days in the quarter or year-to-date divided by 365.
*Non-GAAP Financial Measures
(Dollars and shares in thousands, except per share data)
(Unaudited)
Adjusted efficiency ratio
Adjusted efficiency ratio is a non-GAAP measure that represents other operating expense to income excluding the gain on sale of certain assets by Pacific Wealth Advisors The most comparable GAAP measure is the efficiency ratio and the following tables set forth the reconciliation of the efficiency ratio to adjusted efficiency ratio for the periods indicated.
| Three Months Ended | |||||||
| Northrim BanCorp, Inc. | December 31, 2025 | September 30, 2025 | |||||
| Other operating expense | $ | 33,424 | $ | 30,300 | |||
| Net interest income | $ | 35,375 | $ | 35,346 | |||
| Other operating income | 16,283 | 31,239 | |||||
| Total income | $ | 51,658 | $ | 66,585 | |||
| Other operating expense divided by total income | 64.70 | % | 45.51 | % | |||
| Other operating expense | $ | 33,424 | $ | 30,300 | |||
| Net interest income | $ | 35,375 | $ | 35,346 | |||
| Other operating income | 16,283 | 31,239 | |||||
| Less: gain on sale by Pacific Wealth Advisors | 275 | 14,211 | |||||
| Adjusted total income | $ | 51,383 | $ | 52,374 | |||
| Other operating expense divided by adjusted total income | 65.05 | % | 57.85 | % | |||
Note Transmitted on GlobeNewswire on April 22, 2026, at 12:15 pm Alaska Standard Time.
