Northrim Bancorp Inc · NASDAQ:NRIM
Northrim Bancorp — Merger or Acquisition (August 2014)
14 slides from Northrim Bancorp's merger presentation, Aug 7, 2014
Slide 1: Acquisition of Residential Mortgage Holding Company, LLC
Exhibit 99.1 Exhibit 99.1 Northrim ACQUISITION Investor Presentation—August BanCorp,Inc. OF RESIDENTIAL 6, 2014 MORTGAGE HOLDING COMPANY, LLC.
Slide 2: Forward Looking Statements
FORWARD This origination Residential plans as RML, expectations uncertainties other regulatory actual and collectability with from 2statements ofgeneral presentation the the our financial and results orSecurities date RML expectations. objectives approvals to volume, Mortgage trends LOOKING as that
Slide 3: Anticipated Transaction Highlights
ANTICIPATED Strategic NRIM Low Reinforces Increases Financially Healthy Internal Tangible Effective Capital (a) (b) GAAP 3reconciliation Based Tangible execution affiliate measure, ratios rate EPS book Rationale use Non onNRIM’s Attractive of book market accretion: of remain of Interest value return
Slide 4: Residential Mortgage Holding Company, LLC Overview
OVERVIEW Relationship Business: Founded: Service Full 1998 Market Servicing: Products: Origination 1–4 TOTAL Pre YTD (a) (b) 4(c) For Source: Market Tax Single service June six Position: Territory: Income PURCHASE 2014: months share family Alaska Volume mortgage with OF information $RESIDENTIAL NRIM
Slide 5: Estimated Market Share of RML in Alaska Market
ESTIMATED (IN 2014 Average: (a) 5Source: For $MILLIONS) YTD the Alaska 20.05% three (a) MARKET $Housing 494 months TOTAL $ 108 ended Finance SHARE ALASKA 21.9% 3/31/14 Corporation 2013 OFMARKET RESIDENTIAL $4,006and $ RML 792 Residential 19.8% RML MORTGAGE MARKET 2013 Mortgage $5,233 INOF Holding AL
Slide 6: Northrim Bank and Residential Mortgage Branch System: Extended Alaska Coverage
NORTHRIM Anchorage Alaska Fairbanks Juneau Northrim Ketchikan Sitka Gulf Yukon 6Cook ofInlet Territory Kodiak Alaska Bank Soldotna BANK Branches AND(15) RESIDENTIAL Residential Mortgage MORTGAGEBranches BRANCH (9) SYSTEM: EXTENDED ALASKA COVERAGE
Slide 7: Transaction Overview
TRANSACTION Estimated Consideration Structure (2) Termination Combined Anticipated Board Required Due Expected 7(a) See Five Diligence: Representation/ Exhibit year Approvals: (a): Closing: Transaction Transaction Cost Fee/Walk earn-out (1) Mix: A Completed, Estimated savings: for OVERVIEW Fourth 10
Slide 8: Strategic Rationale
STRATEGIC Acquisition Provides Enhances Alaska — 8(a) Alaska Source: housing #3 Non housing US of position RATIONALE aInterest Census markets well markets in established Income Bureau. Alaska arehas stable mortgage been See organization and appendix steadier improving market than for intimately data
Slide 9: Pro Forma Financial Impact
PRO Book Transaction 2014 Consolidated (As TCE/TA Leverage (a) (b) (d) 9acquisition NRIM Source: Calculated ofFORMA EPS Value 6/30/14) 11.02% Ratio Accretion data expenses. SNL. 1.26X Multiples Metrics Capital as FINANCIAL as 12.55% Pro 9.29% the Includes of1.97X Forma (estimated) 6/30/2014. (c) num
Slide 10: Conclusion
Northrim is CONCLUSION Acquisition Financially Complementary Increased Transaction 10 size attractive; buying is expected intended in andbusiness line scale 100% with to to expected enhance increase favorably models of Northrim an affiliate 15% Northrim’s and with positions strategic EPS diversify s
Slide 11: Appendix
APPENDIX Northrim BanCorp, Inc.
Slide 12: Earn-Out Payments
EARN-OUT EARN brought These Payments $400,000 (f) 12 Over payments OUT about $6plus for million: PAYMENTS—The PAYMENTS each by 50% are NRIM 12of $3,300,000 contingent month earnings period upon over plus sellers following $2 55% themillion will continued of have earnings closing (d)the $3 employment
Slide 13: Alaska Mortgage Volume Has Been Steadier Than US Average
ALASKA Single TOTAL 2013 NA Source: 13 $2,460 $4,006 family Alaska NEW PURCHASE NA$2,424 and LOANS Housing NAcondominium 2006 $1,582 REFINANCING MORTGAGE Finance NA39.5% $2,560 new Corporation 2012 NA loan VOLUME $5,233 NA REFINANCING and2005 refinancing $2,136 HAS NA $2,294 $3,097 BEEN (AS activity
Slide 14: Building Activity - Alaska
BUILDING ALASKA 01Number 4000 6000 8000 10000 12000 9% 11,248 2012 2010 2008 2006 2004 2002 2000 1998 1996 1994 1992 1990 1988 1986 1984 1982 Source: 1081 14 980increase US ofBUILDING new, Census ACTIVITY—ALASKA in 2013, privately Bureau, most PERMITS owned since 20132007 housing, is November STATEW
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