Northrim BanCorp Earnings Increase 43% to $7.5 Million, or $1.11 per Diluted Share, in 3Q19 from 3Q18 Reflecting Strong Loan and Deposit Growth and Improved Credit Quality

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ANCHORAGE, Alaska, Oct. 28, 2019 (GLOBE NEWSWIRE) -- Northrim BanCorp, Inc. NRIM ("Northrim" or the "Company") today reported net income increased 43% to $7.5 million, or $1.11 per diluted share, in the third quarter of 2019, compared to $5.3 million, or $0.75 per diluted share, in the third quarter of 2018. In the second quarter of 2019, Northrim earned $4.3 million, or $0.62 per diluted share.  A benefit for loan losses of $2.1 million, higher production in the mortgage banking division, as well as strong loan and deposit growth in the community banking franchise drove third quarter profitability.

Net income for the first nine months of 2019 increased 6% to $16.1 million, or $2.35 per diluted share, compared to $15.2 million, or $2.17 per diluted share, in the first nine months of 2018.  In the first nine months of 2019, operating results include increased operating expenses of $56.2 million, up from $51.5 million in the first nine months of 2018 primarily due to increased salaries and employee benefit costs, higher occupancy expenses and rising costs for data processing and bank technology.  Higher overhead costs reflect Northrim's successful execution of its growth plans, including the addition of two new branch locations in the last year, and its ability to retain and recruit experienced, talented bankers in the Alaska markets it serves.

"The flat yield curve is creating a strong demand for home purchase and refinance mortgages. Despite a highly competitive market, our loan growth has been substantial, and our loan pipeline, for both home mortgages and business loans, remains strong," said Joe Schierhorn, President and CEO.

Third Quarter 2019 Highlights:

  • Total revenue, which includes net interest income plus other operating income, increased 5% to $26.8 million in the third quarter of 2019, compared to $25.5 million in the second quarter of 2019 and increased 9% compared to $24.5 million in the third quarter a year ago.
    • Community Banking provided 71% of total revenues and 84% of earnings in the third quarter of 2019.
    • Home Mortgage Lending provided 29% of total revenues and 16% of third quarter earnings.
  • Net interest income in the third quarter of 2019 increased to $16.3 million from $15.8 million in the third quarter a year ago.
  • Net interest margin on a tax equivalent basis ("NIMTE")* was 4.65% in the third quarter, a 9 basis point contraction compared to the third quarter a year ago, and a 12 basis point contraction compared to the preceding quarter.
  • Return on average assets was 1.90% and return on average equity was 14.45% for the third quarter of 2019.
  • The third quarter 2019 benefit for loan losses was $2.1 million compared to the year ago quarter when Northrim did not record a provision for loan losses, due to improved credit quality and improved overall economic factors.
  • The Company completed its share repurchase  program, buying 192,193 shares of its common stock in the third quarter of 2019 at an average price of $37.29.
Financial HighlightsThree Months Ended
(Dollars in thousands, except per share data)September 30, 2019June 30, 2019March 31, 2019December 31, 2018September 30, 2018
Total assets$1,616,631 $1,552,770 $1,520,051 $1,502,988 $1,502,673 
Total portfolio loans$1,036,547 $1,015,704 $982,341 $984,346 $982,007 
Average portfolio loans$1,020,186 $1,003,019 $988,920 $981,407 $984,914 
Total deposits$1,351,029 $1,288,178 $1,228,018 $1,228,088 $1,233,268 
Average deposits$1,307,795 $1,239,354 $1,194,512 $1,233,479 $1,223,997 
Total shareholders' equity$204,039 $206,338 $208,838 $205,947 $203,242 
Net income$7,538 $4,261 $4,312 $4,848 $5,264 
Diluted earnings per share$1.11 $0.62 $0.62 $0.69 $0.75 
Return on average assets1.90%1.12%1.18%1.27%1.40%
Return on average shareholders' equity14.45%8.13%8.36%9.30%10.27%
NIM4.60%4.71%4.83%4.71%4.69%
NIMTE*4.65%4.77%4.89%4.76%4.74%
Efficiency ratio72.01%77.58%73.23%76.64%73.82%
Total shareholders' equity/total assets12.62%13.29%13.74%13.70%13.53%
Tangible common equity/tangible assets*11.74%12.38%12.81%12.76%12.58%
Book value per share$31.20 $30.66 $30.36 $29.92 $29.52 
Tangible book value per share*$28.74 $28.27 $28.01 $27.57 $27.17 
Dividends per share$0.33 $0.30 $0.30 $0.27 $0.27 

* References to NIMTE, tangible book value per share, tangible common equity and tangible assets (all of which exclude intangible assets) represent non-GAAP financial measures. Management has presented these non-GAAP measurements in this earnings release, because it believes these measures are useful to investors. 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 10.)

The Alaska economy went through three consecutive years of a mild recession.  Macro-economic indicators began to show a positive change in the fourth quarter of 2018, with improvements continuing into 2019.  The State Department of Labor reported growth of 400 jobs in August of 2019 compared to August of 2018.  October of 2018 was the first month of year-over-year increase in employment since September of 2015.  After 37 months of year-over-year declines, Alaska now has eleven consecutive months of year-over-year job increases.  The Department of Labor forecasted an increase of 1,400 jobs, or 0.4% growth for the entire year.  They expect the major drivers of job growth to be military, oil & gas activity and tourism.

Alaska's seasonally adjusted gross state product (GSP) was $54.6 billion in the first quarter of 2019, according to the U.S. Bureau of Economic Analysis (BEA) in a report released on July 25, 2019. Alaska's GSP increased 3.9% annualized in the first quarter of 2019, marking the fourth consecutive quarter of improvement in Alaska's GSP.  Alaska's real GSP declined by 5.7% annualized in the first quarter of 2018, but then grew in the second, third and fourth quarters last year.  The net result was a slight decline of GSP for 2018 of -0.3%.  Alaska's GSP declined -1.8% in 2016 and -0.2 % in 2017.

Alaska's personal income grew 4.3% annualized in the first quarter of 2019 and 5.6% in the second quarter according to a report released on September 24, 2019 by the BEA.  Total personal income from all sources in Alaska grew to $45.5 billion.  The largest increase in dollar terms in the second quarter of 2019 came from a $330 million or 4.6% growth in wages and proprietors income. Dividends, interest and rental income grew by $100 million and income from government transfer payments increased by $185 million in the second quarter.

"The most recent macro-economic indicators show Alaska's economy has begun to grow again and add jobs.  In the near term, there is concern over the effect of State government budget cuts.  However, there is renewed optimism in the private sector that a number of large-scale natural resource development projects are advancing and new discoveries of oil and gas are increasing investment activity for exploration and development," stated Mark Edwards, EVP Chief Credit Officer and Bank Economist.

Alaska North Slope (ANS) average monthly oil prices have been between $60 and $72 in 2019.  The September monthly average for ANS was $63.83. The State Department of Revenue has forecasted an annual average ANS oil price of $68.90 per barrel in fiscal year (FY) 2019 and $66 per barrel in FY 2020.

Alaska's crude oil production averaged 540,500 barrels per day (bpd) in FY 2017.  This was an increase of 9,300 bpd over the previous year and the second year of production growth.  This two-year positive trend reversed slightly last year when total output declined 1.2% to 534,000 bpd in FY 2018.  The State Department of Revenue forecasts production on the North Slope to decline in FY 2019 by 1.3% and then rise by 3.5% in 2020.

"The impact of the pending sale of BP's Alaska operations to Hilcorp, announced in August, provides both opportunities and challenges for oil services firms and the businesses that serve this leading industrial sector," added Schierhorn.  "BP currently employs approximately 1,600 workers or one-sixth of total employment in Alaska's oil and gas industry.  Hilcorp has told BP's workers that they will receive more information on future employment levels in December."

Alaska's home mortgage delinquency and foreclosure levels continue to be better than most of the nation.  Alaskans showed resiliency and kept their home payments current despite the local recession.  According to the Mortgage Bankers Association, Alaska's foreclosure rate was 0.68% at the end of the second quarter 2019.  This compares to 0.63% at the end of the first quarter 2019.  The comparable national average rate was 0.90% at the end of the second quarter 2019.  The national rate continues to improve while the Alaska rate remains relatively lower and stable.

The national survey reported that the percentage of delinquent mortgage loans in Alaska was 3.21% for the second quarter of 2019.  The Alaska delinquency rate at the end of 2018 was 2.92%, compared to 3.37% for the same period in 2017.  The 2018 average delinquency rate across the country was 1.4% higher than Alaska at 4.32%.  The U.S. rate moved slightly higher to 4.41% at the end of the second quarter 2019.

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 third quarter of 2019, Northrim generated a return on average assets ("ROAA") of 1.90% and a return on average equity ("ROAE") of 14.45%, compared to 1.12% and 8.13%, respectively in the second quarter of 2019 and 1.40% and 10.27%, respectively, in the third quarter a year ago.  These results were above the average posted by the SNL Small Cap U.S. Bank Index with total market capitalization between $250 million and $1 billion as of June 30, 20191.

Net Interest Income/Net Interest Margin

Net interest income grew 3% to $16.3 million in the third quarter of 2019 compared to $15.8 million in the third quarter of 2018 and increased modestly compared to $16.0 million in the second quarter of 2019. For the first nine months of 2019, net interest income increased 7% to $48.0 million from $45.1 million in the first nine months of 2018.  Interest income benefited by the growth in the loan portfolio which more than offset increased cost of interest-bearing deposits and borrowings in both the third quarter and first nine months of 2019 compared to the year ago periods.


1As of June 30, 2019, the SNL Small Cap US Bank Index tracked 123 banks with total common market capitalization between $250 million and $1 billion with averages for the following ratios: NIMTE* 3.46%, ROAA 1.13%, and ROAE 10.41%.

NIMTE* was 4.65% in the third quarter of 2019 compared to 4.77% in the preceding quarter and 4.74% in the third quarter a year ago. The yield on interest earning assets in the third quarter of 2019 was 5.08%, down 9 basis points from the second quarter of 2019 and up 11 basis points year-over-year.  The cost of funds increased in the third quarter of 2019 to 68 basis points, up 5 basis points from the preceding quarter and up 32 basis points compared to the third quarter a year ago.

"Our cost of funds increased during the quarter due to CD deposit campaigns that continued through the end of the summer, however, with the recent rate drops we should see costs of funds level off or drop in the fourth quarter," said Jed Ballard, Chief Financial Officer.  "Even with the recent rate decrease by the Fed in the third quarter, our loans reprice at higher rates than when they originated two to three years ago."

Provision for Loan Losses

Northrim recorded a benefit for loan losses of $2.1 million in the third quarter of 2019.  In the second quarter of 2019,  Northrim recorded a $300,000 provision for loan losses, and in the third quarter of 2018, Northrim recorded no provision for loan losses. "We recorded a benefit for loan losses in the third quarter due to a combination of improved credit quality, including net loan recoveries of $694,000, as well as improved overall economic factors," said Ballard.

Nonperforming loans, net of government guarantees, improved during the quarter to $15.5 million at September 30, 2019, compared to $16.9 million at June 30, 2019, and $16.6 million at September 30, 2018.  The allowance for loan losses was 123% of nonperforming loans, net of government guarantees at September 30, 2019.

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 $10.5 million, or 39% of total third quarter 2019 revenues, as compared to $9.6 million, or 37% of revenues in the second quarter of 2019, and $8.7 million, or 35% of revenues in the third quarter of 2018.  In the first nine months of 2019, other operating income totaled $27.6 million, or 37% of revenues, compared to $24.4 million, or 35% of revenues in the first nine months of 2018.  The primary drivers of changes in other operating income are variability in the mortgage market, which is seasonal and cyclical, and gains or losses from the fair value changes of marketable equity securities. The fair value mark-to-market of the marketable equity securities portfolio increased other income by $130,000 in the third quarter of 2019, compared to a $118,000 increase in the second quarter of 2019 and increased other income by $782,000 in the first nine months of 2019, compared to a decrease of $136,000 in the first nine months of 2018. Additionally, $734,000 in interest rate swap income was earned in the second quarter of 2019 on the execution of interest rate swaps related to the Company's commercial lending operations.

Other Operating Expenses

Operating expenses were $19.3 million in the third quarter of 2019, compared to $19.8 million in the second quarter of 2019 and $18.1 million in the third quarter of 2018.  Impacting operating expenses include costs associated with the two new branch locations in Soldotna opened in the fourth quarter of 2018 and East Anchorage opened in the second quarter of 2019, higher compensation costs for the mortgage banking operations due to increased loan originations and increased data processing and banking technology costs.  In the first nine months of 2019, operating expenses were $56.2 million, up from $51.5 million in the first nine months of 2018, reflecting higher overhead expenses, as explained above. "We added several talented bankers in lending and cash management over the past year, to execute our business plan to grow the company and expand market share. In addition, we continue to invest in technology, which increased data processing costs, to introduce new products and services to our customers," said Schierhorn.

Income Tax Provision

For the third quarter of 2019, Northrim recorded $2.0 million in state and federal income tax expense for an effective tax rate of 21.2% compared to $1.1 million, or 17.7% in the third quarter a year ago. For the first nine months of 2019, Northrim recorded $4.3 million in state and federal income tax expense, for an effective tax rate of 21.2% compared to $3.2 million and 17.3% for the same period in 2018.  The tax rate increased in both periods in 2019 due to less tax-exempt income and fewer estimated tax credits as a percentage of pre-tax income in 2019 as compared to 2018.

Community Banking

"Our Alaska franchise is growing, and our recent branch expansions, combined with the addition of  new and existing relationships, will continue to provide long-term opportunities in our market," said Schierhorn.

Net interest income in the Community Banking segment increased 4% to $16.0 million in the third quarter of 2019 from $15.4 million in the third quarter of 2018.

The following table provides highlights of the Community Banking segment of Northrim:

 Three Months Ended
(Dollars in thousands, except per share data)September 30, 2019June 30, 2019March 31, 2019December 31, 2018September 30, 2018
Net interest income$16,000 $15,633$15,488$15,719 $15,358
Provision (benefit) for loan losses(2,075)300750(200)
Other operating income2,944 3,6193,2353,199 2,770
Other operating expense13,126 14,11112,51813,637 12,204
  Income before provision for income taxes7,893 4,8415,4555,481 5,924
Provision for income taxes1,550 9841,155824 996
  Net income$6,343 $3,857$4,300$4,657 $4,928
Average diluted shares6,707,523 6,896,6876,981,9516,990,319 6,990,633
Diluted earnings per share$0.93 $0.56$0.62$0.66 $0.70


 Year-to-date
(Dollars in thousands, except per share data)September 30, 2019September 30, 2018
Net interest income$47,121 $44,008 
(Benefit) provision for loan losses(1,025)(300)
Other operating income9,798 8,124 
Other operating expense39,755 36,319 
  Income before provision for income taxes18,189 16,113 
Provision for income taxes3,689 2,537 
  Net income$14,500 $13,576 
   
Average diluted shares6,861,973 6,978,679 
Diluted earnings per share$2.11 $1.94 

 

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Home Mortgage Lending

"Demand for mortgage loans picked up substantially in the current quarter, in large part due to an increase in refinancing as a result of lower mortgage rates, in addition to the normal seasonality in the mortgage market," said Ballard. Third quarter of 2019 volume increased to $241.8 million, of which 67% were for new home purchases, compared to $169.0 million and 82% of loans funded in the second quarter of 2019 and $156.3 million of which 91% were for new home purchases in the third quarter of 2018.

"Our mortgage servicing business, which was initiated in the fourth quarter of 2015 to service loans for the Alaska Housing Finance Corporation, experienced substantial growth during the quarter," Ballard added.  As of September 30, 2019, Northrim serviced 2,534 loans in its $634.1 million home-mortgage-servicing portfolio, which is a 23% increase from the $516.0 million serviced a year ago.  Mortgage servicing revenue contributed $1.6 million to revenues in the third quarter of 2019 compared to $1.1 million in the second quarter of 2019 and $1.6 million in the third quarter of 2018.  Total mortgage servicing income fluctuates based on the amount of mortgage servicing rights originated during the period and changes in the fair value of mortgage servicing rights, which are driven by interest rate volatility and fluctuations in estimated prepayment speeds based on published industry metrics. The change in the fair value of mortgage servicing rights was a decrease of $662,000 for the third quarter of 2019 compared to a decrease of $950,000 for the second quarter of 2019 and a decrease of $128,000 for the third quarter of 2018. In the first nine months of 2019 the change in fair value of mortgage servicing rights was a decrease of $2.3 million as compared to a decrease of $272,000 for the first nine months of 2018.

The following table provides highlights of the Home Mortgage Lending segment of Northrim:

 Three Months Ended
(Dollars in thousands, except per share data)September 30, 2019June 30, 2019March 31, 2019December 31, 2018September 30, 2018
Mortgage commitments$86,044 $107,330 $66,319 $44,999 $69,026 
Mortgage loans funded for sale$241,795 $168,953 $92,447 $113,963 $156,301 
Mortgage loan refinances to total fundings33%18%16%10%9%
Mortgage loans serviced for others$634,059 $598,415 $586,595 $557,583 $516,008 
      
Net realized gains on mortgage loans sold$6,768 $4,903 $2,927 $3,156 $4,268 
Change in fair value of mortgage loan commitments, net(535)655 356 (442)(66)
Total production revenue6,233 5,558 3,283 2,714 4,202 
Mortgage servicing revenue1,649 1,119 1,668 1,526 1,578 
Change in fair value of mortgage servicing rights, net1(662)(950)(674)145 (128)
Total mortgage servicing revenue, net987 169 994 1,671 1,450 
Other mortgage banking revenue345 223 21 134 251 
  Total mortgage banking income$7,565 $5,950 $4,298 $4,519 $5,903 
      
Net interest income$306 $324 $281 $418 $461 
Mortgage banking income7,565 5,950 4,298 4,519 5,903 
Other operating expense6,198 5,708 4,562 4,663 5,895 
  Income before provision for income taxes1,673 566 17 274 469 
Provision for income taxes478 162 5 83 133 
  Net income$1,195 $404 $12 $191 $336 
      
Average diluted shares6,707,523 6,896,687 6,981,951 6,990,319 6,990,633 
Diluted earnings per share$0.18 $0.06 $— $0.03 $0.05 

1Principally reflects changes in discount rates and prepayment speed assumptions, which are primarily affected by changes in interest rates, net of collection/realization of expected cash flows over time.

 Year-to-date
(Dollars in thousands, except per share data)September 30, 2019September 30, 2018
Mortgage loans funded for sale$503,195 $413,552 
Mortgage loan refinances to total fundings25%11%
   
Net realized gains on mortgage loans sold$14,598 $11,666 
Change in fair value of mortgage loan commitments, net476 282 
Total production revenue15,074 11,948 
Mortgage servicing revenue4,436 4,015 
Change in fair value of mortgage servicing rights, net1(2,286)(272)
Total mortgage servicing revenue, net2,150 3,743 
Other mortgage banking revenue589 634 
  Total mortgage banking income$17,813 $16,325 
   
Net interest income$911 $1,063 
Mortgage banking income17,813 16,325 
Other operating expense16,468 15,181 
  Income before provision for income taxes2,256 2,207 
Provision for income taxes645 627 
  Net income$1,611 $1,580 
   
Average diluted shares6,861,973 6,978,679 
Diluted earnings per share$0.24 $0.23 

1Principally reflects changes in discount rates and prepayment speed assumptions, which are primarily affected by changes in interest rates, net of collection/realization of expected cash flows over time.

Balance Sheet Review

Northrim's total assets increased to $1.62 billion at September 30, 2019, up 4% from the preceding quarter and up 8% from a year ago.  Northrim's loan-to-deposit ratio was 77% at September 30, 2019, down from 79% at June 30, 2019 and 80% at September 30, 2018.

Average interest-earning assets were $1.40 billion in the third quarter of 2019, up 4% from $1.36 billion in the second quarter of 2019 and up 5% from $1.34 billion in the third quarter a year ago.  The average yield on interest-earning assets was 5.08% in the third quarter of 2019, down from 5.17% in the preceding quarter and up from 4.97% in the third quarter a year ago.

Average investment securities decreased 10% to $253.4 million in the third quarter of 2019, compared to $281.5 million in the second quarter of 2019 and decreased 4% from $264.4 million in the third quarter a year ago.  The average net tax equivalent yield on the securities portfolio improved to 2.73% for the third quarter of 2019, from 2.71% in the preceding quarter and 2.29% a year ago*.  The average estimated duration of the investment portfolio was 19 months, at September 30, 2019.

Loan originations more than offset the rate of repayments that results from the short duration of the loan portfolio.  At September 30, 2019, commercial loans increased to 39% of total loans, while commercial real estate remained at 48% of total loans and construction loans decreased slightly to 9% of total loans, compared to three months earlier.  Portfolio loans were $1.04 billion at September 30, 2019, up 2% from the preceding quarter and up 6% from a year ago.  Average portfolio loans in the third quarter of 2019 were $1.02 billion, up 2% from the preceding quarter and up 4% from a year ago.  Yields on average portfolio loans in the third quarter of 2019 declined to 5.92% from 5.96% in the second quarter of 2019 and improved compared to 5.81% in the third quarter of 2018.

"We are executing our deposit strategy on a number of different fronts, most notably with new synergies between commercial cash managers and lenders targeting new deposits.  In addition, we have enhanced several deposit products and services for our customers, which improves our competitive position in our markets," said Schierhorn.

Alaskans account for substantially all of Northrim's deposit base, which is primarily made up of low-cost transaction accounts.  Balances in transaction accounts at September 30, 2019, represented 88% of total deposits.  At September 30, 2019, total deposits were $1.35 billion, up 5% from $1.29 billion at June 30, 2019, and up 10% from $1.23 billion a year ago.  Average interest-bearing deposits were up 6% to $870.4 million with an average cost of 0.62% in the third quarter of 2019, compared to $818.1 million and an average cost of 0.58% in the second quarter of 2019, and up 9% compared to $795.3 million and an average cost of 0.30% in the third quarter of 2018.

Shareholders' equity was $204.0 million, or $31.20 per share, at September 30, 2019, compared to $206.3 million, or $30.66 per share, at June 30, 2019 and $203.2 million, or $29.52 per share, a year ago.  Tangible book value per share* was $28.74 at September 30, 2019, up from $27.17 per share a year ago.  Northrim continues to maintain capital levels in excess of the requirements to be categorized as "well-capitalized" under the Basel III and Dodd Frank regulatory standards with Tier 1 Capital to Risk Adjusted Assets of 14.57% at September 30, 2019.  Share repurchases accounted for the modest decline in shareholders' equity in both the third and second quarters of 2019, compared to a year ago.

Asset Quality

"The overall improvement in the quality of the loan portfolio during the quarter reflects the hard work of our lending and credit administration teams," said Ballard. "Net loan recoveries totaled $694,000 for the quarter, and all credit quality metrics improved compared to three months earlier."

Nonperforming assets ("NPAs") net of government guarantees improved to $21.5 million at September 30, 2019, compared to $23.9 million at June 30, 2019, and $24.1 million at September 30, 2018.  Of the NPAs, $13.0 million, or 61% are nonaccrual loans related to six commercial relationships. Two of these relationships, which totaled $6.0 million at the end of the third quarter of 2019, are businesses in the medical industry.

Net adversely classified loans improved to $24.2 million at the end of the third quarter of 2019 as compared to $25.0 million at the end of the second quarter of 2019, and $29.7 million one year ago.  Loan recoveries were greater than loan charge-offs in the third quarter by $694,000, compared to $9,000 in net loan recoveries in the second quarter of 2019 and $52,000 in net loan recoveries in the year ago quarter.  Year to date, net loan recoveries were $643,000, compared to net loan charge-offs of $1.0 million in the first nine months of 2018.  Adversely classified loans are loans that Northrim has classified as substandard, doubtful, and loss, net of government guarantees.  As of September 30, 2019, $18.3 million, or 76% of net adversely classified loans are attributable to eight relationships with four loans to commercial businesses, two loans to medical businesses, and two loans to oilfield services commercial businesses.

Performing restructured loans that were not included in nonaccrual loans at the end of the third quarter of 2019 were $1.5 million, down from $1.6 million in the preceding quarter and from $3.3 million a year ago.  The decrease in the third quarter of 2019 compared to the year ago quarter is primarily due to the repayment of one relationship.  Borrowers who are in financial difficulty and who have been granted concessions that may include interest rate reductions, term extensions, or payment alterations are categorized as restructured loans.  The Company presents restructured loans that are performing separately from those that are classified as nonaccrual to provide more information on this category of loans and to differentiate between accruing performing and nonperforming restructured loans.

Northrim estimates that $66.3 million, or approximately 6% of portfolio loans as of September 30, 2019, had direct exposure to the oil and gas industry in Alaska, and $2.7 million of these loans are adversely classified.  As of September 30, 2019, Northrim has an additional $29.1 million in unfunded commitments to companies with direct exposure to the oil and gas industry in Alaska, and none of these unfunded commitments are considered to be adversely classified loans.  Northrim defines direct exposure to the oil and gas sector as loans to borrowers that provide oilfield services and other companies that have 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 16 branches in Anchorage, the Matanuska Valley, Soldotna, Juneau, Fairbanks, Ketchikan, and Sitka serving 90% of Alaska's population; and an asset based lending division in Washington; and a wholly-owned mortgage brokerage company, Residential Mortgage Holding Company, LLC. The Bank differentiates itself with its detailed knowledge of Alaska's economy and its "Customer First Service" philosophy. Pacific Wealth Advisors, LLC is an affiliated company of Northrim BanCorp.

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 and 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: our ability to maintain strong asset quality and to maintain or expand our market share or net interest margins; and our ability to execute our business plan.  Further, actual results may be affected by our ability to compete 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 as those factors relate to our cost of funds and return on assets.  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, 2018, 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.alaskanomics.com/alaskas-economy/
https://www.adn.com/business-economy/2019/10/07/as-bp-exits-alaska-1600-employees-are-waiting-to-find-out-whats-next/
https://www.bea.gov/data/gdp/gdp-state

https://www.bea.gov/data/income-saving/personal-income-by-state

http://almis.labor.state.ak.us/

http://labor.alaska.gov/news/2019/news19-20.htm

http://www.tax.alaska.gov/programs/oil/prevailing/ans.aspx

https://tax.alaska.gov/programs/oil/production.aspx

https://www.mba.org/2019-press-releases/august/mortgage-delinquencies-rise-in-the-second-quarter-of-2019

Income Statement      
(Dollars in thousands, except per share data)Three Months Ended Year-to-date
(Unaudited)September 30,June 30,September 30, September 30,September 30,
 201920192018 20192018
Interest Income:      
  Interest and fees on loans$15,863 $15,353$14,992 $46,193 $42,291 
  Interest on portfolio investments1,661 1,8181,419 5,237 4,167 
  Interest on deposits in banks313 135169 591 512 
  Total interest income17,837 17,30616,580 52,021 46,970 
Interest Expense:      
  Interest expense on deposits1,365 1,174595 3,477 1,413 
  Interest expense on borrowings166 175166 512 486 
  Total interest expense1,531 1,349761 3,989 1,899 
  Net interest income16,306 15,95715,819 48,032 45,071 
       
Provision (benefit) for loan losses(2,075)300 (1,025)(300)
  Net interest income after provision for loan losses18,381 15,65715,819 49,057 45,371 
       
Other Operating Income:      
  Mortgage banking income7,565 5,9505,903 17,813 16,325 
  Bankcard fees820 744724 2,214 2,056 
  Purchased receivable income709 837767 2,355 2,474 
  Service charges on deposit accounts398 413407 1,224 1,137 
  Gain (loss) on marketable equity securities130 11837 782 (136)
  Interest rate swap income 73470 734 70 
  Gain on sale of securities  23  
  Other income887 773765 2,466 2,523 
  Total other operating income10,509 9,5698,673 27,611 24,449 
       
Other Operating Expense:      
  Salaries and other personnel expense13,186 12,94511,261 37,433 33,208 
  Data processing expense1,849 1,7961,503 5,324 4,374 
  Occupancy expense1,576 1,6421,687 4,989 4,407 
  Professional and outside services610 684727 1,850 1,780 
  Marketing expense357 833367 1,609 1,461 
  Insurance expense102 232171 592 645 
  Intangible asset amortization expense15 1518 45 53 
  Impairment of equity method investment 804  804 
  OREO expense, net rental income and gains on sale(31)16543 (186)157 
  Other operating expense1,660 1,5071,518 4,567 4,611 
  Total other operating expense19,324 19,81918,099 56,223 51,500 
       
  Income before provision for income taxes9,566 5,4076,393 20,445 18,320 
  Provision for income taxes2,028 1,1461,129 4,334 3,164 
  Net income$7,538 $4,261$5,264 $16,111 $15,156 
       
  Basic EPS$1.13 $0.62$0.77 $2.38 $2.21 
  Diluted EPS$1.11 $0.62$0.75 $2.35 $2.17 
  Average basic shares6,604,044 6,798,3526,877,194 6,760,672 6,873,843 
  Average diluted shares6,707,523 6,896,6876,990,633 6,861,973 6,978,679 


Balance Sheet   
(Dollars in thousands)   
(Unaudited)September 30,June 30,September 30,
 201920192018
    
Assets:   
  Cash and due from banks$45,381 $25,377 $37,651 
  Interest bearing deposits in other banks46,807 45,454 32,528 
  Investment securities available for sale257,270 249,986 264,193 
  Marketable equity securities8,045 7,916 6,035 
  Investment in Federal Home Loan Bank stock2,140 2,069 2,103 
  Loans held for sale81,942 61,531 56,636 
  Portfolio loans1,036,547 1,015,704 982,007 
  Allowance for loan losses(19,137)(20,518)(20,160)
  Net portfolio loans1,017,410 995,186 961,847 
  Purchased receivables, net13,673 13,114 12,706 
  Mortgage servicing rights11,206 10,836 9,695 
  Other real estate owned, net7,043 7,043 8,707 
  Premises and equipment, net38,556 39,155 38,637 
  Lease right of use asset14,307 14,924  
  Goodwill and intangible assets16,109 16,124 16,171 
  Other assets56,742 64,055 55,764 
  Total assets$1,616,631 $1,552,770 $1,502,673 
    
Liabilities:   
  Demand deposits$460,327 $435,425 $450,409 
  Interest-bearing demand292,198 285,664 240,974 
  Savings deposits228,739 232,190 233,611 
  Money market deposits214,352 204,151 208,614 
  Time deposits155,413 130,748 99,660 
  Total deposits1,351,029 1,288,178 1,233,268 
  Securities sold under repurchase agreements 864 32,429 
  Other borrowings8,933 7,158 7,282 
  Junior subordinated debentures10,310 10,310 10,310 
  Lease liability14,224 14,807  
  Other liabilities28,096 25,115 16,142 
  Total liabilities1,412,592 1,346,432 1,299,431 
    
Shareholders' Equity:   
  Total shareholders' equity204,039 206,338 203,242 
  Total liabilities and shareholders' equity$1,616,631 $1,552,770 $1,502,673 
    

 

Additional Financial Information
(Dollars in thousands)
(Unaudited)

Composition of Portfolio Investments       
 September 30, 2019 June 30, 2019 September 30, 2018
 Balance% of total Balance% of total Balance% of total
U.S. Treasury securities$65,30324.6% $55,34921.5% $54,45220.2%
U.S. Agency securities123,19746.5% 127,41749.4% 151,38056.0%
Corporate securities42,46016.0% 40,40015.7% 40,51615.0%
Marketable equity securities8,0453.0% 7,9163.1% 6,0352.2%
Collateralized loan obligations22,9308.6% 22,9318.9% 6,0022.2%
Alaska municipality, utility, or state bonds3,2301.2% 3,7391.4% 7,3072.7%
Other municipality, utility, or state bonds1500.1% 1500.1% 4,5361.7%
  Total portfolio investments$265,315  $257,902  $270,228 
         


Composition of Portfolio Loans            
 September 30, 2019 June 30, 2019 March 31, 2019 December 31, 2018 September 30, 2018
 Balance% of total Balance% of total Balance% of total Balance% of total Balance% of total
Commercial loans$398,231 39% $387,257 38% $344,164 35% $342,420 35% $333,132 34%
CRE owner occupied loans127,045 12% 126,991 12% 130,141 13% 126,414 13% 130,166 13%
CRE nonowner occupied loans377,311 36% 367,703 36% 360,071 37% 367,759 37% 382,313 39%
Construction loans98,716 9% 97,837 10% 109,404 11% 109,367 11% 97,976 10%
Consumer loans39,868 4% 40,234 4% 42,861 4% 42,873 4% 42,775 4%
  Subtotal1,041,171   1,020,022   986,641   988,833   986,362  
Unearned loan fees, net(4,624)  (4,318)  (4,300)  (4,487)  (4,355) 
  Total portfolio loans$1,036,547   $1,015,704   $982,341   $984,346   $982,007  
               


Composition of Deposits            
 September 30, 2019 June 30, 2019 March 31, 2019 December 31, 2018 September 30, 2018
 Balance% of total Balance% of total Balance% of total Balance% of total Balance% of total
Demand deposits$460,32733% $435,42534% $417,06834% $420,98835% $450,40936%
Interest-bearing demand292,19822% 285,66422% 247,63020% 248,05620% 240,97420%
Savings deposits228,73917% 232,19018% 237,51019% 239,05419% 233,61119%
Money market deposits214,35216% 204,15116% 204,56717% 206,71717% 208,61417%
Time deposits155,41312% 130,74810% 121,24310% 113,2739% 99,6608%
  Total deposits$1,351,029  $1,288,178  $1,228,018  $1,228,088  $1,233,268 

 

Additional Financial Information
(Dollars in thousands)
(Unaudited)

Asset Quality      
 September 30, June 30, September 30, 
 2019 2019 2018 
  Nonaccrual loans$17,442  $18,080  $16,728  
  Loans 90 days past due and accruing    152  
  Total nonperforming loans17,442  18,080  16,880  
  Nonperforming loans guaranteed by government(1,935) (1,139) (279) 
  Net nonperforming loans15,507  16,941  16,601  
  Other real estate owned7,043  7,043  8,707  
  Repossessed assets231  1,182  29  
  Other real estate owned guaranteed by government(1,279) (1,279) (1,279) 
  Net nonperforming assets$21,502  $23,887  $24,058  
  Nonperforming loans / portfolio loans, net of government guarantees1.50 %1.67 %1.69 %
  Nonperforming assets / total assets, net of government guarantees1.33 %1.54 %1.60 %
       
  Performing restructured loans$1,498  $1,645  $3,252  
  Nonperforming loans plus performing restructured loans, net of government      
  guarantees$17,005  $18,586  $19,853  
  Nonperforming loans plus performing restructured loans / portfolio loans, net of      
  government guarantees1.64 %1.83 %2.02 %
  Nonperforming assets plus performing restructured loans / total assets, net of      
  government guarantees1.42 %1.64 %1.82 %
       
  Adversely classified loans, net of government guarantees$24,199  $25,016  $29,730  
  Loans 30-89 days past due and accruing, net of government guarantees /      
  portfolio loans0.12 %0.70 %0.26 %
       
  Allowance for loan losses / portfolio loans1.85 %2.02 %2.05 %
  Allowance for loan losses / nonperforming loans, net of government guarantees123 %121 %121 %
       
  Gross loan charge-offs for the quarter$29  $68  $9  
  Gross loan recoveries for the quarter($723) ($77) ($61) 
  Net loan (recoveries) charge-offs for the quarter($694) ($9) ($52) 
  Net loan (recoveries) charge-offs year-to-date($643) $51  $1,001  
  Net loan (recoveries) charge-offs for the quarter / average loans, for the quarter(0.07)%0.00 %(0.01)%
  Net loan (recoveries) charge-offs year-to-date / average loans,      
  year-to-date annualized(0.09)%0.01 %0.14 %

 

Additional Financial Information
(Dollars in thousands)
(Unaudited)

Nonperforming Assets Rollforward       
    WritedownsTransfers toTransfers to  
 Balance at June 30, 2019Additions this quarterPayments this quarter/Charge-offs
 this quarter
OREO/ REPOPerforming Status
this quarter
Sales this quarterBalance at September 30, 2019
Commercial loans$11,207 $1,328 ($1,414)($22)231)$—$— $10,868 
Commercial real estate5,041  (67)   4,974 
Construction loans1,492  (19)   1,473 
Consumer loans340 7 (213)(7)  127 
Non-performing loans guaranteed by government(1,139)(797)1    (1,935)
  Total non-performing loans16,941 538 (1,712)(29)(231) 15,507 
Other real estate owned7,043      7,043 
Repossessed assets1,182 231    (1,182)231 
Other real estate owned guaranteed        
by government(1,279)     (1,279)
  Total non-performing assets,        
  net of government guarantees$23,887 $769 ($1,712)($29)($231)$—($1,182)$21,502 

 

The following table details loan charge-offs, by industry:

Loan Charge-offs by Industry    
 Three Months Ended
 September 30, 2019June 30, 2019March 31, 2019December 31, 2018September 30, 2018
Charge-offs:     
Remediation services$—$—$89$—$—
Transportation and warehousing362
Retail sales22
Excavation and construction20320
Health care and social assistance64
Consumer74319
  Total charge-offs$29$68$109$713$9

 

Additional Financial Information
(Dollars in thousands)
(Unaudited)

Average Balances, Yields, and Rates        
 Three Months Ended
 September 30, 2019 June 30, 2019 September 30, 2018
  Average  Average  Average
 AverageTax Equivalent AverageTax Equivalent AverageTax Equivalent
 BalanceYield/Rate BalanceYield/Rate BalanceYield/Rate
Assets        
Interest bearing deposits in other banks$58,754 2.08% $22,850 2.34% $34,136 1.94%
Portfolio investments253,364 2.73% 281,450 2.71% 264,377 2.29%
Loans held for sale74,181 3.79% 51,280 4.13% 54,792 4.64%
Portfolio loans1,020,186 5.92% 1,003,019 5.96% 984,914 5.81%
  Total interest-earning assets1,406,485 5.08% 1,358,599 5.17% 1,338,219 4.97%
Nonearning assets169,907   167,414   150,808  
  Total assets$1,576,392   $1,526,013   $1,489,027  
         
Liabilities and Shareholders' Equity        
Interest-bearing deposits$870,369 0.62% $818,122 0.58% $795,256 0.30%
Borrowings19,749 3.27% 44,938 1.53% 46,663 1.39%
  Total interest-bearing liabilities890,118 0.68% 863,060 0.63% 841,919 0.36%
         
Noninterest-bearing demand deposits437,426   421,232   428,741  
Other liabilities41,946   31,391   15,039  
Shareholders' equity206,902   210,330   203,328  
  Total liabilities and shareholders' equity$1,576,392   $1,526,013   $1,489,027  
  Net spread 4.40%  4.54%  4.61%
  NIM 4.60%  4.71%  4.69%
  NIMTE* 4.65%  4.77%  4.74%
  Average portfolio loans to average        
   interest-earning assets72.53%  73.83%  73.60% 
  Average portfolio loans to average total deposits78.01%  80.93%  80.47% 
  Average non-interest deposits to average        
   total deposits33.45%  33.99%  35.03% 
  Average interest-earning assets to average        
   interest-bearing liabilities158.01%  157.42%  158.95% 

The components of the change in NIMTE* are detailed in the table below:

 3Q19 vs. 2Q193Q19 vs. 3Q18
Nonaccrual interest adjustments0.01%0.03%
Interest rates and loan fees(0.11)%(0.12)%
Volume and mix of interest-earning assets and liabilities(0.02)%%
Change in NIMTE*(0.12)%(0.09)%

 

Additional Financial Information
(Dollars in thousands)
(Unaudited)

Average Balances, Yields, and Rates     
 Year-to-date
 September 30, 2019 September 30, 2018
  Average  Average
 AverageTax Equivalent AverageTax Equivalent
 BalanceYield/Rate BalanceYield/Rate
Assets     
Interest bearing deposits in other banks$35,394 2.20% $39,335 1.72%
Portfolio investments271,645 2.69% 288,311 2.07%
Loans held for sale52,379 4.05% 46,042 4.30%
Portfolio loans1,004,157 5.97% 968,225 5.66%
  Total interest-earning assets1,363,575 5.16% 1,341,913 4.73%
Nonearning assets166,548   146,006  
  Total assets$1,530,123   $1,487,919  
      
Liabilities and Shareholders' Equity     
Interest-bearing deposits$829,916 0.56% $814,339 0.23%
Borrowings38,618 1.74% 45,943 1.39%
  Total interest-bearing liabilities868,534 0.61% 860,282 0.29%
      
Noninterest-bearing demand deposits417,719   410,841  
Other liabilities35,053   17,734  
Shareholders' equity208,817   199,062  
  Total liabilities and shareholders' equity$1,530,123   $1,487,919  
  Net spread 4.55%  4.44%
  NIM 4.71%  4.49%
  NIMTE* 4.76%  4.54%
  Average portfolio loans to average interest-earning assets73.64%  72.15% 
  Average portfolio loans to average total deposits80.48%  79.03% 
  Average non-interest deposits to average total deposits33.48%  33.53% 
  Average interest-earning assets to average interest-bearing liabilities157.00%  155.99% 

The components of the change in NIMTE* are detailed in the table below:

 YTD19 vs.YTD18
Nonaccrual interest adjustments%
Interest rates and loan fees0.18%
Volume and mix of interest-earning assets and liabilities0.04%
Change in NIMTE*0.22%

 

Additional Financial Information
(Dollars in thousands, except per share data)
(Unaudited)

Capital Data (At quarter end)      
 September 30, 2019 June 30, 2019 September 30, 2018 
Book value per share$31.20  $30.66  $29.52  
Tangible book value per share*$28.74  $28.27  $27.17  
Total shareholders' equity/total assets12.62 %13.29 %13.53 %
Tangible Common Equity/Tangible Assets*11.74 %12.38 %12.58 %
Tier 1 Capital / Risk Adjusted Assets14.57 %15.03 %15.33 %
Total Capital / Risk Adjusted Assets15.82 %16.28 %16.58 %
Tier 1 Capital / Average Assets12.68 %13.22 %13.41 %
Shares outstanding6,539,796  6,729,456  6,884,386  
Unrealized gain (loss) on AFS debt securities, net of income taxes$930  $871  ($1,680) 
Unrealized gain (loss) on derivatives and hedging activities($1,064) ($374) $1,039  


Profitability Ratios          
 September 30, 2019 June 30, 2019 March 31, 2019 December 31, 2018 September 30, 2018 
For the quarter:          
  NIM4.60 %4.71 %4.83 %4.71 %4.69 %
  NIMTE*4.65 %4.77 %4.89 %4.76 %4.74 %
  Efficiency ratio72.01 %77.58 %73.23 %76.64 %73.82 %
  Return on average assets1.90 %1.12 %1.18 %1.27 %1.40 %
  Return on average equity14.45 %8.13 %8.36 %9.30 %10.27 %


 September 30, 2019 September 30, 2018 
Year-to-date:    
  NIM4.71 %4.49 %
  NIMTE*4.76 %4.54 %
  Efficiency ratio74.27 %74.00 %
  Return on average assets1.41 %1.36 %
  Return on average equity10.32 %10.18 %

 

*Non-GAAP Financial Measures
(Dollars and shares in thousands, except per share data)
(Unaudited)

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 2019 and 2018, respectively. The most comparable GAAP measure is net interest margin and the following table sets forth the reconciliation of NIMTE to net interest margin.

 Three Months Ended
 September 30, 2019 June 30, 2019 March 31, 2019 December 31, 2018 September 30, 2018
Net interest income$16,306  $15,957  $15,769  $16,137  $15,819 
Divided by average interest-bearing assets1,406,485  1,358,599  1,324,741  1,359,909  1,338,219 
Net interest margin ("NIM")24.60% 4.71% 4.83% 4.71% 4.69%
          
Net interest income$16,306  $15,957  $15,769  $16,137  $15,819 
Plus: reduction in tax expense related to         
  tax-exempt interest income163  191  188  196  182 
 $16,469  $16,148  $15,957  $16,333  $16,001 
Divided by average interest-bearing assets1,406,485  1,358,599  1,324,741  1,359,909  1,338,219 
NIMTE24.65% 4.77% 4.89% 4.76% 4.74%


 Year-to-date
 September 30, 2019 September 30, 2018
Net interest income$48,032  $45,071 
Divided by average interest-bearing assets1,363,575  1,341,913 
Net interest margin ("NIM")34.71% 4.49%
    
Net interest income$48,032  $45,071 
Plus: reduction in tax expense related to   
  tax-exempt interest income554  530 
 $48,586  $45,601 
Divided by average interest-bearing assets1,363,575  1,341,913 
NIMTE34.76% 4.54%

2Calculated using actual days in the quarter divided by 365 for quarters ended in 2019 and 2018.

3Calculated using actual days in the year divided by 365 for year-to-date periods in 2019 and 2018.

 

*Non-GAAP Financial Measures
(Dollars and shares in thousands, except per share data)
(Unaudited)

Tangible Book Value

Tangible book value is a non-GAAP measure defined as shareholders' equity, less intangible assets, divided by shares outstanding.  The following table sets forth the reconciliation of tangible book value per share and book value per share.

 September 30, 2019 June 30, 2019 March 31, 2019 December 31, 2018 September 30, 2018
          
Total shareholders' equity$204,039 $206,338 $208,838 $205,947 $203,242
Divided by shares outstanding6,540 6,729 6,879 6,883 6,884
Book value per share$31.20 $30.66 $30.36 $29.92 $29.52


 September 30, 2019 June 30, 2019 March 31, 2019 December 31, 2018 September 30, 2018
          
Total shareholders' equity$204,039 $206,338 $208,838 $205,947 $203,242
Less: goodwill and intangible assets16,109 16,124 16,139 16,154 16,171
 $187,930 $190,214 $192,699 $189,793 $187,071
Divided by shares outstanding6,540 6,729 6,879 6,883 6,884
Tangible book value per share$28.74 $28.27 $28.01 $27.57 $27.17

 

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. This ratio has received more attention over the past several years from stock analysts and regulators.  The most comparable GAAP measure of shareholders' equity to total assets is calculated by dividing total shareholders' equity by total assets.

Northrim BanCorp, Inc.

 
September 30, 2019 June 30, 2019 March 31, 2019 December 31, 2018 September 30, 2018
          
Total shareholders' equity$204,039  $206,338  $208,838  $205,947  $203,242 
Total assets1,616,631  1,552,770  1,520,051  1,502,988  1,502,673 
Total shareholders' equity to total assets12.62% 13.29% 13.74% 13.70% 13.53%


Northrim BanCorp, Inc.

 
September 30, 2019 June 30, 2019 March 31, 2019 December 31, 2018 September 30, 2018
Total shareholders' equity$204,039  $206,338  $208,838  $205,947  $203,242 
Less: goodwill and other intangible assets, net16,109  16,124  16,139  16,154  16,171 
Tangible common shareholders' equity$187,930  $190,214  $192,699  $189,793  $187,071 
          
Total assets$1,616,631  $1,552,770  $1,520,051  $1,502,988  $1,502,673 
Less: goodwill and other intangible assets, net16,109  16,124  16,139  16,154  16,171 
Tangible assets$1,600,522  $1,536,646  $1,503,912  $1,486,834  $1,486,502 
Tangible common equity ratio11.74% 12.38% 12.81% 12.76% 12.58%


Contact:Joe Schierhorn,  President, CEO, and COO
 (907) 261-3308
 Jed Ballard, Chief Financial Officer
 (907) 261-3539

 

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