Business
Northrim BanCorp Earnings of $8.3 Million, or $1.33 Per Diluted Share, in Second Quarter 2021, and $20.5 Million, or $3.27 Per Diluted Shares, in First Half of 2021
ANCHORAGE, Alaska, July 26, 2021 (GLOBE NEWSWIRE) -- Northrim BanCorp, Inc. (NASDAQ:NRIM) (“Northrim” or the "Company") today reported net income of $8.35
About this update from Northrim Bancorp Inc
[{"type":"text","content":"ANCHORAGE, Alaska, July 26, 2021 (GLOBE NEWSWIRE) -- Northrim BanCorp, Inc. (NASDAQ:NRIM) (“Northrim” or the \"Company\") today reported net income of $8.35 million, or $1.33 per diluted share, in the second quarter of 2021, compared to $12.18 million, or $1.94 per diluted share, in the first quarter of 2021, and $9.90 million, or $1.52 per diluted share, in the second quarter a year ago. Fee and interest income from the Small Business Administration's (\"SBA\") Paycheck Protection Program (\"PPP\") loans and high levels of production in the Home Mortgage Lending segment contributed to profitability for the quarter. Also benefiting second quarter results was a $427,000 benefit to the provision for credit losses. This compares to a $1.5 million benefit to the provision for credit losses in the preceding quarter and a $404,000 provision for credit losses in the second quarter of 2020. The benefit to the provision for credit losses for the current quarter was recorded under ASU 2016-13, which is also commonly referred to as the Current Expected Credit Loss (“CECL”) methodology that Northrim implemented on January 1, 2021, and includes a benefit to the provision for credit losses on loans and unfunded commitments. Net income for the first six months of 2021 increased 88% to $20.53 million, or $3.27 per diluted share, compared to $10.93 million, or $1.68 per diluted share, in the first six months of 2020. The benefit to the provision for credit losses totaled $1.9 million in the first half of 2021, compared to a $2.5 million provision for credit losses in the first half of 2020. Increases in net interest income and mortgage banking revenue also contributed to the increase in net income during the first half of 2021 compared to the same period in 2020. “Our second quarter operating results were supported by another quarter of solid production in mortgage banking operations and the continued success of our outreach to new and existing customers, as we navigate through the pandemic and its impact on the Alaska economy,” said Joe Schierhorn, President and CEO. “Over the past 15 months we have been active participants in the SBA’s PPP lending programs, helping our new and existing business customers sustain their business operations. Under the initial PPP program, we helped approximately 2,900 businesses receive $375.6 million in PPP loan...