Business
Northrim BanCorp Earns $8.9 Million, or $1.42 Per Diluted Share, in Third Quarter 2021, and $29.4 Million, or $4.69 Per Diluted Share, in First Nine Months of 2021
ANCHORAGE, Alaska, Oct. 29, 2021 (GLOBE NEWSWIRE) -- Northrim BanCorp, Inc. (NASDAQ:NRIM) (“Northrim” or the "Company") today reported net income of $8.88
About this update from Northrim Bancorp Inc
[{"type":"text","content":"ANCHORAGE, Alaska, Oct. 29, 2021 (GLOBE NEWSWIRE) -- Northrim BanCorp, Inc. (NASDAQ:NRIM) (“Northrim” or the \"Company\") today reported net income of $8.88 million, or $1.42 per diluted share, in the third quarter of 2021, compared to $8.35 million, or $1.33 per diluted share, in the second quarter of 2021, and $11.86 million, or $1.84 per diluted share, in the third quarter a year ago. Third quarter 2021 profitability was fueled by fee and interest income from the Small Business Administration's (\"SBA\") Paycheck Protection Program (\"PPP\") loans, continued high levels of production in the Home Mortgage Lending segment, and strong core loan growth. Also benefiting third quarter 2021 results was a $1.1 million benefit to the provision for credit losses. This compares to a $427,000 benefit to the provision for credit losses in the preceding quarter and a $567,000 provision for credit losses in the third 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 nine months of 2021 increased 29% to $29.40 million, or $4.69 per diluted share, compared to $22.79 million, or $3.52 per diluted share, in the first nine months of 2020. The benefit to the provision for credit losses totaled $3.0 million in the first nine months of 2021, compared to a $3.0 million provision for credit losses in the first nine months of 2020. An increase in net interest income and continued strong mortgage banking revenue also contributed to the increase in net income during the first nine months of 2021 compared to the same period in 2020. “Northrim’s third quarter operating results continue to reflect the effort put forth by all of our employees to meet the needs of our community,” said Joe Schierhorn, President and CEO. “Strong residential mortgage business along with the continued success of our outreach to new and existing customers during the quarter generated increased income and had a meaningful impact on core loan and deposit growth.” “We chose to be active participants in the SBA’s PPP lending programs from the onset of the pandemic...