Northrim Bancorp Inc · NASDAQ:NRIM
Northrim Bancorp — Q2 2026 Earnings Presentation
24 slides from Northrim Bancorp's earnings presentation, 2026
Slide 1: Investor Presentation Second Quarter 2026
Investor Presentation Second Quarter 2026 Nasdaq: NRIM 1
Slide 2: Northrim Overview
Northrim Overview $3.4 billion community bank founded in 1990 to provide financial services to Alaskan residents and businesses • Superior customer first service • Strong balance sheet Fairbanks • Solid net interest margin; pricing reflects quality service Nome • Focus on asset quality • Diversified
Slide 3: 2nd Quarter 2026 Financial Highlights
2nd Quarter 2026 | Financial Highlights1 Earnings & Profitability Q2-26 Q1-26 Q2-25 Earnings per Share $0.68 $0.61 $0.52 Net Income EPS Net Income (in Thousands) $15,342 $13,675 $11,778 $15.342 $0.68 million Tax Equivalent Net Interest Margin 5.01% 4.77% 4.72% ROAA 1.84% 1.69% 1.48% ROAE 17.77% 16.6
Slide 4: Enhanced Shareholder Value
CreditManagement Capital Quality – has Non-Performing Assets Enhanced Shareholder Value(“NPAs”) Cash dividend of $0.16 21% of shares per share paid on June repurchased between 18, 2026 2019 and 2023 8.7% CAGR Repurchase activity TBV/share, increased EPS by ~25% since 2015 * Tangible book value per s
Slide 5: Regulatory Capital Ratios
Regulatory Capital Ratios 15.00% 12.50% 10.00% 7.50% 5.00% 2.50% a Northam BanGorp, nc, 14.14% ee 13.86% a wee 11.26% 10.71% 9 9 10.959 10.90% fo 10.63 10.67 10.59% 10.26% 10.31% 9.80% 9.42% 9.13% 8.66% 8.77% 8.82% 7.99% | Q2'25 Q3'25 04°25 Qt '26 02 '26 I Leverage Ratio CET1 Ratio i Tier 1 Ratio Ml
Slide 6: Investment Opportunity
Investment Opportunity Unique Banking Environment Provides Opportunities to Gain Market Share • Northrim deposit market share has increased by 727 basis points since 2018 • Northrim has opened 7 branches in Alaska since 2018 Alaska Banking Environment Drives Higher Yields on Loans and Lower Deposit
Slide 7: Capital Investment Drives Economic Growth - Partial List of Projects
Capital Investment Drives Economic Growth - Partial List of Projects • $6 billion in various federal infrastructure projects over the next 5 years • $400+ million port of Nome • $185 million Lowell Creek flood diversion in Seward • $88 million Moose Creek dam in North Pole to protect Fairbanks • $46
Slide 8: Oil and Gas Development Drives Economic Growth
Oil and Gas Development Drives Economic Growth Future Oil Development Projects • Alaska North Slope oil production averaged 461,000 barrels per day (bpd) in 2024 • Alaska Department of Revenue projects a 33% increase to 621,000 bpd by 2036 • Santos and Repsol making $2.6 billion investment in Pikka
Slide 9: Alaska's Mining Sector Contributes Substantially to the State's Economy
Alaska's Mining Sector Contributes Substantially to the State's Economy • $1.8 billion spent on goods and services to support Alaska's mines, with $1.1 billion directly to Alaska businesses. • $139 million paid in local and state government revenues. • $425 million in royalty payments to Alaska Nati
Slide 10: Steady Loan Growth Supported by Increasing Market Share
Steady Loan Growth Supported by Increasing Market Share Portfolio Loans Outstanding ($2.39 billion) Loan Composition (6/30/2026) 1 2 YTD Portfolio Loan Yield: 6.90% 1After the reclassification of $100.4 million 1-4 family residential properties secured by first liens to loans held for sale in the fi
Slide 11: Diversified Loan Portfolio Limits Concentration Risk
Diversified Loan Portfolio Limits Concentration Risk Special Industries as Percentage of Total Portfolio Loans ($2.39 billion) 11
Slide 12: Commercial Real Estate Non-Owner Occupied Portfolio Details
Commercial Real Estate Non-Owner Occupied Portfolio Details CRE Non-owner Occupied Portfolio Metrics (6/30/2026) Average Loan Size $1.65 million Nonaccrual $0.00 million Special Mention $0.00 million / 0.00% of CRE Non-Owner Occupied Adversely Classified $8.68 million / 1.12% of CRE Non-Owner Occupi
Slide 13: Deposit Franchise also Benefiting from Increasing Market Share
Deposit Franchise also Benefiting from Increasing Market Share Steady Market Share Growth Driving Deposits Deposit Composition (6/30/2026) YTD Cost IB Deposits: 1.74% 13
Slide 14: Deposit Concentrations
Deposit Concentrations Deposit Portfolio as of June 30, 2026: • 33 deposit customers with balances greater than $10 million totaling $745.7 million or 26% of total deposits. • Approximately 33,000 deposit customers with average balance of $65,000. • Uninsured deposits totaled $1.141 billion or 39% o
Slide 15: Net Interest Margin Driven by Asset Yields and Low Cost Liabilities
Net Interest Margin Driven by Asset Yields and Low Cost Liabilities • Three Fed rate cuts in the second half of 2025 impacting loan yields ◦ 19 bps decrease since Q3 2025 • Deposit franchise provides low cost financing ◦ 28% non-interest bearing deposits in Q2 2026 • Strong NIMTE supports profitabil
Slide 16: Credit Quality – Non-Performing Assets
Credit Solid Quality Credit – Non-Performing and a History Assets (“NPAs”) of Low Charge-Offs • Recent increase in nonperforming loans relates to one relationship with sufficient collateral • Historically low charge-offs ◦ 0.01% Net Charge-offs / Loans 6-year average (2020-2025) • ACL / Nonperformin
Slide 17: Credit Quality – Special Mention and Adversely Classified Loans
CreditMention Special Quality and–Adversely Non-Performing Assets Classified Loans (“NPAs”) and Net Charge-Off History 1 1 Northrim believes it has a consistent lending approach throughout economic cycles, which emphasizes appropriate loan-to-value ratios, adequate debt coverage ratios, and competen
Slide 18: Operating Expenses Mitigated by Attractive Market Dynamics
Operating Expenses Mitigated by Attractive Market Dynamics • Alaskan operating expenses are higher than Higher Operating Expenses... mainland banks ◦ 1,300 miles from Nome to Ketchikan (1,400 miles from New York to Dallas) ◦ 6 branches only accessible by boat or plane • Alaskan loan yields are highe
Slide 19: Noninterest Income Supported by Multiple Business Lines
Noninterest Income Supported by Multiple Business Lines Business Line Description Operating Income 2026 ($31.6M) Home Mortgage Lending and • Includes mortgage servicing YTD YTD Residential Mortgage, LLC • Largest mortgage originator in AK 2025 2026 Q2-25 Q2-26 • Majority of loans serviced are Alaska
Slide 20: Diversification has Enhanced Results Over the Long Term
Diversification has Enhanced Results Over the Long Term • Community Banking earnings have grown due to rising rates and successful expansion strategy • Mortgage Lending tends to be more cyclical, but has been a strong contributor over the longer term 20
Slide 21: Appendix
a Northrim BanCorp, Inc. Appendix
Slide 22: Financial Highlights
Financial Highlights1 Balance Sheet 2022 2023 2024 2025 2025 Q2 2026 Q2 Total Assets $2,674,318 $2,807,497 $3,041,869 $3,290,273 $3,243,760 $3,415,386 Portfolio Loans 1,501,785 1,789,497 2,129,263 2,295,499 2,202,115 2,386,328 Deposits 2,387,211 2,485,055 2,680,189 2,813,029 2,809,170 2,918,788 Shar
Slide 23: Non-GAAP Reconciliation
Non-GAAP Reconciliation (In thousands) 2022 2023 2024 2025 2025 Q2 2026 Q2 Shareholders' Equity $218,629 $234,718 $267,116 $326,544 $290,219 $347,614 Total Assets 2,672,041 2,807,497 3,041,869 3,290,273 3,243,760 3,415,386 Total Shareholders' Equity to Total Assets Ratio 8.18% 8.36% 8.78% 9.92% 8.95
Slide 24: Non-GAAP Reconciliation
Non-GAAP Reconciliation 2015 2016 2017 2018 2019 2020 2021 Shareholders' Equity $177,214 $186,712 $192,802 $205,947 $207,117 $221,575 $237,817 Divided by Common Shares Outstanding 27,509 27,592 27,488 27,533 26,235 25,004 24,059 Book Value per Share $6.44 $6.77 $7.01 $7.48 $7.89 $8.86 $9.88 Sharehol