Business
Northrim BanCorp Earns $5.6 Million, or $0.98 Per Diluted Share, in Second Quarter 2023
ANCHORAGE, Alaska, July 27, 2023 (GLOBE NEWSWIRE) -- Northrim BanCorp, Inc. (NASDAQ:NRIM) (“Northrim” or the “Company”) today reported net income of $5.6
About this update from Northrim Bancorp Inc
[{"type":"text","content":"ANCHORAGE, Alaska, July 27, 2023 (GLOBE NEWSWIRE) -- Northrim BanCorp, Inc. (NASDAQ:NRIM) (“Northrim” or the “Company”) today reported net income of $5.6 million, or $0.98 per diluted share, in the second quarter of 2023, compared to $4.8 million, or $0.84 per diluted share, in the first quarter of 2023, and $4.8 million, or $0.83 per diluted share, in the second quarter a year ago. The increase in second quarter 2023 profitability as compared to the prior quarter was primarily the result of higher mortgage banking income. This increase was partially offset by a higher provision for credit losses compared to the preceding quarter due to loan growth. The increase in profitability in the second quarter of 2023 compared to the same period a year ago was primarily due to an increase in net interest income, which was only partially offset by a higher provision for credit losses and a decrease in mortgage banking income. Dividends per share in the second quarter remained consistent with the first quarter of 2023 at $0.60 per share and increased 48% from $0.41 per share in the second quarter of 2022. “We had solid loan growth in the second quarter as we continue to establish new customer relationships and gain market share,” said Joe Schierhorn, President and Chief Executive Officer Northrim BanCorp, Inc. “We continue to face increased deposit and funding costs but expect stabilization of our net interest margin in future quarters as lower yielding securities and loans begin to reprice.Credit remains strong but we remain vigilant as businesses adjust to increased expenses due to inflation and interest costs due to the rate environment.” Second Quarter 2023 Highlights: Net interest income in the second quarter of 2023 increased slightly to $25.1 million compared to $25.0 million in the first quarter of 2023 and increased 13% compared to $22.2 million in the second quarter of 2022.Net interest margin on a tax equivalent basis (“NIMTE”)* was 4.21% for the second quarter of 2023, a 9-basis point decrease from the first quarter of 2023 and a 51-basis point increase compared to the second quarter of 2022 due primarily to the increased yields on loans, investments, and cash.The weighted average interest rate for new portfolio loans booked in the second quarter of 2023 was 6.93% compared to 6.42% in the first quarter of 2023 and 5.07% in the s...