Business
Northrim BanCorp Earns $6.6 million, or $1.19 Per Diluted Share, in Fourth Quarter 2023, and $25.4 Million, or $4.49 Per Diluted Share, for the Year Ended December 31, 2023
ANCHORAGE, Alaska, Jan. 25, 2024 (GLOBE NEWSWIRE) -- Northrim BanCorp, Inc. (NASDAQ:NRIM) (“Northrim” or the "Company") today reported net income of $6.6
About this update from Northrim Bancorp Inc
[{"type":"text","content":"ANCHORAGE, Alaska, Jan. 25, 2024 (GLOBE NEWSWIRE) -- Northrim BanCorp, Inc. (NASDAQ:NRIM) (“Northrim” or the \"Company\") today reported net income of $6.6 million, or $1.19 per diluted share, in the fourth quarter of 2023, compared to $8.4 million, or $1.48 per diluted share, in the third quarter of 2023, and $8.6 million, or $1.48 per diluted share, in the fourth quarter a year ago. The decrease in the fourth quarter of 2023 compared to the third quarter of 2023 is primarily due to lower net income in the Home Mortgage Lending segment resulting from a decline in mortgage originations and a decline in the fair value of mortgage servicing rights. The decrease in the fourth quarter of 2023 profitability as compared to the same quarter of the prior year was largely driven by an increase in interest expense that was only partially offset by higher interest income, as well as increased salaries and other personnel expense. Net income for the full year of 2023 decreased 17% to $25.4 million, or $4.49 per diluted share, compared to $30.7 million, or $5.27 per diluted share, for the full year of 2022. Loan and deposit growth supported 2023 earnings in the Community Banking segment but were offset by increased other operating expenses, primarily in salaries and other personnel expense as the Company continues to expand its branch network into new markets, and a higher provision for credit losses in 2023 due to higher loan growth compared to 2022. A decline in mortgage originations and a decline in the fair value of mortgage servicing rights resulted in a $2.5 million loss in the Home Mortgage Lending segment in 2023 compared to an $897,000 loss in 2022. Dividends per share in the fourth quarter of 2023 remained consistent with the third quarter of 2023 at $0.60 per share and increased 20% from $0.50 per share in the fourth quarter of 2022. “We are pleased with our 2023 results,” said Joe Schierhorn, President and Chief Executive Officer Northrim BanCorp, Inc. “We have continued to gain market share as we expand our branch network, upgrade our treasury management capabilities, and attract talented new individuals to the Northrim team. Market share gains have fueled solid loan and deposit growth and allowed us to maintain enhanced liquidity to ensure our stability in a range of economic scenarios.” Fourth Quarter 2023 Highlights: Net inte...