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Sep 30, 2023
Northrim BanCorp Q3 2023 Earnings Report
Northrim BanCorp achieved net income growth in Q3 2023, driven by higher net interest income and strategic initiatives amid economic challenges.
Key Takeaways
Northrim BanCorp reported a net income of $8.4 million, or $1.48 per diluted share, for the third quarter of 2023. This represents an increase compared to the previous quarter but a decrease compared to the same period last year. The company's performance was boosted by higher net interest income, a gain on an OREO sale, and increased mortgage banking income.
Net interest income increased 5% to $26.4 million compared to the second quarter of 2023.
Total deposits were $2.43 billion, up 5% from the preceding quarter.
Portfolio loans were $1.70 billion, up 4% from the preceding quarter and up 22% from a year ago.
Return on average assets (ROAA) was 1.22% and return on average equity (ROAE) was 14.67%.
Forward Guidance
Northrim anticipates that the volume of mortgages that Northrim Bank will purchase from Residential Mortgage will continue to decrease, as they look to sell a larger percentage of production on the secondary market going forward. The company expects net interest margin to remain relatively stable.
Positive Outlook
- Estimated increases in earning-asset yields.
- Proactive, targeted approach to increase deposit rates.
- Expanding market share.
- New customer relationships.
- Retaining certain mortgages in the loan portfolio.
Challenges Ahead
- Increases in deposit rates.
- Limited supply of homes.
- Higher cost of funds.
- Decrease in mortgage volume.
- Challenges remain in the economic environment.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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