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Jun 30, 2023
Northrim BanCorp Q2 2023 Earnings Report
Northrim BanCorp's profitability increased primarily due to higher mortgage banking income and an increase in net interest income.
Key Takeaways
Northrim BanCorp reported a net income of $5.6 million, or $0.98 per diluted share, for the second quarter of 2023. The increase in profitability compared to the previous quarter was mainly due to higher mortgage banking income, while the increase compared to the same period last year was primarily due to an increase in net interest income.
Net interest income increased slightly to $25.1 million, up 13% compared to the second quarter of 2022.
Net interest margin on a tax equivalent basis (NIMTE) was 4.21%, a 51-basis point increase compared to the second quarter of 2022.
Portfolio loans were $1.66 billion, up 8% from the preceding quarter and 18% from a year ago.
Total deposits were $2.30 billion, up slightly from the preceding quarter, but down 1% from a year ago.
Forward Guidance
Northrim expects its net interest margin to remain relatively stable, with earning-asset yields and the change in mix of earning-assets with the maturing of low rate investment securities supporting future loan growth likely to be offset by increases in deposit rates.
Positive Outlook
- Estimated increases in earning-asset yields
- Change in mix of earning-assets
- Maturing of low rate investment securities
- Supporting future loan growth
- Proactive, targeted approach to increase deposit rates.
Challenges Ahead
- Increases in deposit rates
- Competitive deposit market in a rising interest rate environment
- Potential further increases in interest rates
- Uncertain economic environment
Historical Earnings Impact
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Avg. Return Before/After Earnings
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