By alexandreFinance

Northrim BanCorp Earns $8.4 Million, or $1.48 Per Diluted Share, in Third Quarter 2023

Northrim BanCorp Earns $8.4 Million, or $1.48 Per Diluted Share, in Third Quarter 2023

October 25, 2023

ANCHORAGE, Alaska – Northrim BanCorp, Inc. (NASDAQ: NRIM) (“Northrim” or the “Company”) today reported net income of $8.4 million, or $1.48 per diluted share, for the third quarter of 2023. This represents an increase of 12% compared to the same quarter last year.

Strong Financial Performance Driven by Increased Loan Demand

The Company’s strong financial performance in the third quarter was primarily driven by increased loan demand. Northrim experienced robust growth in its loan portfolio, particularly in commercial and business loans. This growth indicates a healthy economy with businesses investing in expansion and capital projects.

In addition to increased loan demand, Northrim also benefited from prudent credit risk management practices, which resulted in low levels of net charge-offs and non-performing assets. The Company’s disciplined approach to credit underwriting and risk management has helped maintain the quality of its loan portfolio, supporting its profitability.

Furthermore, Northrim’s net interest margin expanded during the quarter due to higher loan yields and increased interest rates. The Company’s focus on asset liability management and efficient deployment of its funding sources allowed it to capture the benefits of improving interest rate environment.

Continued Focus on Cost Control

Northrim BanCorp has continued its focus on cost control measures to enhance profitability. The Company has carefully managed its operating expenses through various initiatives, including the optimization of its branch network and investment in technology. These efforts have helped Northrim improve operational efficiency and reduce non-interest expenses.

Furthermore, Northrim has been successful in growing its core deposit base, which provides stable and low-cost funding for its lending activities. The Company’s continued focus on relationship banking and personalized service has allowed it to attract and retain customers, further supporting its financial performance.

Overall, Northrim is committed to maintaining a strong financial position and delivering value to its shareholders. The Company’s solid performance in the third quarter is a testament to its disciplined approach to risk management and strategic focus on driving growth and profitability.

In conclusion, Northrim BanCorp’s strong financial performance in the third quarter of 2023 is a result of increased loan demand, prudent credit risk management, and effective cost control measures. The Company’s focus on asset liability management and efficient deployment of funding sources has also contributed to its profitability. Moving forward, Northrim remains committed to maintaining its strong financial position and delivering value to its shareholders through its disciplined approach to risk management and strategic focus on growth and profitability.