ANCHORAGE, Alaska, July 22, 2026 (GLOBE NEWSWIRE) -- Northrim BanCorp, Inc. (NASDAQ:NRIM) ("Northrim" or the "Company") today reported net income of $15.3 million, or $0.68 per diluted share, in the second quarter of 2026, compared to $13.7 million, or $0.61 per diluted share, in the first quarter of 2026, and $11.8 million, or $0.52 per diluted share, in the second quarter a year ago. The increase in the second quarter 2026 profitability as compared to the second quarter a year ago was mostly due to an increase in net interest income.
Dividends per share in the second quarter of 2026 remained consistent with quarterly dividends in 2025 and the first quarter of 2026 at $0.16 per share.
"Another quarter of record net interest income and continued loan and deposit growth reflects the strength of our relationship-driven banking model and our disciplined execution," said Mike Huston, Northrim's President and Chief Executive Officer. "Our investments in people, technology and customer relationships continue to drive profitable growth, expand our market presence, and create long-term value for our shareholders. We were also pleased to expand our footprint during the quarter with the opening of our Palmer branch, further strengthening our ability to serve communities across Alaska."
Second Quarter 2026 Highlights:
Opened a branch in Palmer, Alaska, Northrim's 21st branch.
Net interest income in the second quarter of 2026 increased 7% to $37.1 million compared to $34.7 million in the first quarter of 2026 and increased 11% compared to $33.6 million in the second quarter of 2025.
Net interest margin on a tax equivalent basis ("NIMTE")* was 5.01% for the second quarter of 2026, up 24-basis points from the first quarter of 2026 and up 29-basis points from the second quarter a year ago.
Return on average assets ("ROAA") was 1.84% and return on average equity ("ROAE") was 17.77% for the second quarter of 2026 compared to ROAA of 1.69% and ROAE of 16.60% in the prior quarter and ROAA of 1.48% and ROAE of 16.37% for the second quarter of 2025.
Portfolio loans were $2.39 billion at June 30, 2026, up 1% from the preceding quarter and up 8% from a year ago, primarily due to new customer relationships and expanding market share, as well as retaining certain mortgages originated by Residential Mortgage, a subsidiary of Northrim Bank (the "Bank"). Core loans (excluding consumer mortgages) were $2.13 billion at June 30, 2026, up 7% from a year ago.
Total deposits were $2.92 billion at June 30, 2026, up 2% from the preceding quarter, and up 4% from $2.81 billion a year ago. Non-interest bearing demand deposits remained consistent with the preceding quarter and increased 6% year-over-year to $826.3 million at June 30, 2026 and represent 28% of total deposits.
The average cost of interest-bearing deposits was 1.71% at June 30, 2026, down from 1.77% at March 31, 2026 and 2.04% at June 30, 2025.
Average purchased receivables and loan balances for the Specialty Finance segment were $141.5 million for the second quarter of 2026, compared to an average balance of $132.2 million for the first quarter of 2026, and $124.1 million for the second quarter of 2025.
Financial Highlights | Three Months Ended | ||||||||||||||
(Dollars in thousands, except per share data) | June 30, 2026 | March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | ||||||||||
Total assets | $3,415,386 | $3,354,908 | $3,290,273 | $3,312,332 | $3,243,760 | ||||||||||
Total portfolio loans | $2,386,328 | $2,358,702 | $2,295,499 | $2,218,970 | $2,202,115 | ||||||||||
Total deposits | $2,918,788 | $2,873,746 | $2,813,029 | $2,906,463 | $2,809,170 | ||||||||||
Net income | $15,342 | $13,675 | $12,441 | $27,065 | $11,778 | ||||||||||
Adjusted net income* | $15,342 | $13,675 | $12,231 | $16,195 | $11,778 | ||||||||||
Diluted earnings per share | $0.68 | $0.61 | $0.55 | $1.20 | $0.52 | ||||||||||
Adjusted diluted earnings per share* | $0.68 | $0.61 | $0.54 | $0.72 | $0.52 | ||||||||||
Return on average assets | 1.84 | % | 1.69 | % | 1.50 | % | 3.32 | % | 1.48 | % | |||||
Adjusted return on average assets* | 1.84 | % | 1.69 | % | 1.47 | % | 1.99 | % | 1.48 | % | |||||
Return on average shareholders' equity | 17.77 | % | 16.60 | % | 15.16 | % | 35.66 | % | 16.37 | % | |||||
Adjusted return on average shareholders' equity* | 17.77 | % | 16.60 | % | 14.91 | % | 21.34 | % | 16.37 | % | |||||
NIM | 4.96 | % | 4.72 | % | 4.70 | % | 4.83 | % | 4.66 | % | |||||
NIMTE* | 5.01 | % | 4.77 | % | 4.75 | % | 4.88 | % | 4.72 | % | |||||
Efficiency ratio | 59.44 | % | 61.81 | % | 64.70 | % | 45.51 | % | 64.68 | % | |||||
Adjusted efficiency ratio* | 59.44 | % | 61.81 | % | 65.05 | % | 57.85 | % | 64.68 | % | |||||
Total shareholders' equity/total assets | 10.18 | % | 10.01 | % | 9.92 | % | 9.53 | % | 8.95 | % | |||||
Tangible common equity/tangible assets* | 8.82 | % | 8.63 | % | 8.51 | % | 8.12 | % | 7.50 | % | |||||
*NIMTE, pre-provision pre-tax net revenue, tangible book value per share, and tangible common equity to tangible common assets, (both of which exclude intangible assets), represent non-GAAP financial measures. Adjusted net income, adjusted diluted earnings per share, adjusted return on average assets, adjusted return on average shareholders' equity, and adjusted efficiency ratio items exclude the impact of the sale of assets by Pacific Wealth Management and also represent non-GAAP financial measures. Management has presented these non-GAAP measurements in this earnings release, because it believes these measures are useful to investors. See the end of this release for reconciliations of these non-GAAP financial measures to GAAP financial measures. | |||||||||||||||
Alaska Economic Update
(Note: sources for information included in this section are included on page 13.)
Alaska's seasonally adjusted unemployment rate was 4.6% in May of 2026, compared to 4.3% for the United States, according to the Alaska Department of Labor and Workforce Development. Both rates were unchanged from April of 2026. Alaska had a total of 343,600 payroll jobs in May of 2026 in Alaska, not including uniformed military. This was consistent with May of 2025. Year over year, the private sector grew by 0.9%, while the government sector declined 2.9%. The Federal component lost 1,500 jobs, or -9.8% since May of 2025, the State of Alaska decreased -700 jobs or 2.9% and Local government decreased -0.5%. The largest private sector growth came from Oil & Gas, up 1,000 direct jobs or +11.6%. Transportation, Warehousing and Utilities grew 1,600 jobs or +5.9% and Financial Activities added 200 jobs or +1.9%.
Alaska's seasonally adjusted aggregate personal income was $60 billion in the first quarter of 2026 according to the Federal Bureau of Economic Analysis ("BEA"). Alaska enjoyed an annual personal income improvement of 2.9% between the first quarter of 2025 and the first quarter of 2026. Based on a population estimate of 736,884 people, the per capita personal income in Alaska was $81,386. This is compared to the U.S. average of $77,816, according to the BEA, ranking Alaska 11th highest of the 50 U.S. states.
Alaska's Gross State Product ("GSP") in the first quarter of 2026 reached $78.8 billion according to the BEA. Alaska's inflation adjusted "real" GSP increased 2.1% between the first quarter of 2025 and 2026. The average U.S. GDP growth rate was 2.7% for the same time period.
Alaska exported $6.7 billion in goods directly to foreign countries in 2025 according to the U.S. Census Bureau, a 13.4% increase over 2024 totals. South Korea took over the top trade spot by importing $1.1 billion in goods directly from Alaska. This was a 73% increase over 2024. South Korea imports significant quantities of fish, lead and zinc. The rapid growth primarily came from $515 million in gold and silver purchases in 2025. Australia imported over $1 billion in goods, primarily gold, zinc and lead. Australia's growth rate in Alaska products was 30% in 2025. Japan moved up to the third spot with a 38% growth in purchases totaling $927 million in 2025. Japan has been a leading customer of a large variety of fish products from Alaska for decades and also purchases an array of minerals. China slipped from first to fourth place due to complex U.S. tariff negotiations. China's imports from Alaska dropped 47% from $1.5 billion in 2024 to $803 million in 2025. Oil & Gas does not contribute a significant amount to international exports ($246 million in 2025) because the majority of Alaska's production is refined and consumed within the United States.
According to the U.S. Bureau of Labor Statistics, the Consumer Price Index ("CPI") for the U.S. increased 3.8% between April of 2025 and April of 2026. In Alaska, the rate of increase was higher at 4.3% for the same time period. The largest increases since last April came from Motor Fuel (+33.1%), Apparel (+15%), Recreation (+5.3%), and Housing (+4.8%). There were declining costs in New and Used Vehicles (-2.8%), and Education (-2%), to help moderate inflationary pressures in Alaska.
The monthly average price of Alaska North Slope ("ANS") crude oil ranged between $76.39 a barrel in January of 2025 and $62.70 in December 2025. Prices began to rise dramatically in 2026 after conflicts began in Venezuela and Iran. ANS was priced at a monthly average price of $111.17 in April of 2026 and $114.66 a barrel in May of 2026. ANS has been earning a consistent premium over Brent and West Texas crude prices. The Alaska Department of Revenue ("DOR") calculated ANS crude oil production was 468 thousand barrels per day ("bpd") in Alaska's fiscal year ending June 30, 2025. In the Fall 2025 Revenue Forecast published December 19, 2025, the DOR expects production to average 457 thousand bpd in fiscal year 2026 and 518 thousand bpd in fiscal year 2027. Over the next decade it is expected to continue to grow to 621 thousand bpd, or 33% by fiscal year 2036. This is primarily a result of new production coming on-line in and around the NPR-A region west of Prudhoe Bay. A partnership between Santos and Repsol is constructing the new Pikka field and ConocoPhillips is developing the large new Willow field. There are also several smaller new fields in Alaska's North Slope that are contributing to the State of Alaska's production growth estimate.
The Alaska Permanent Fund is seeded annually by the natural resource wealth the State continues to save each year and has grown significantly over 40 years of successful investment. As of May 31, 2026 the fund's value was $92.2 billion. According to the DOR it is scheduled to contribute $3.8 billion to Alaska's General Fund in fiscal year 2026 and $4 billion in fiscal year 2027 for general government spending and to pay the annual dividend in October to Alaskan residents.
According to the Alaska Multiple Listing Services, the average sales price of a single-family home in Anchorage rose 4.4% in 2025 to $532,339, following an increase of 6.2% in 2024 and 5.2% in 2023. This was the eighth consecutive year of price increases. In the first six months of 2026, prices are up 6.5% on average to $567,221.
The average sales price for single family homes in the Matanuska Susitna Borough rose 6.6% in 2025 to $440,217, after climbing 3.8% in 2024 and 4% in 2023. In the first half of 2026 average prices in the Matanuska Susitna Borough are up 2.9%. This continues a trend of average price increases for more than a decade in the region. These two markets represent where the majority of the Bank's residential lending activity occurs.
The Alaska Multiple Listing Services reported a 1% increase in the number of units sold in Anchorage when comparing January to June 2026 to the same period in 2025. The number of homes sold in the Matanuska Susitna Borough in the first half of 2026 is 1.9% lower than January to June 2025.
Northrim Bank sponsors the Alaskanomics blog to provide news, analysis, and commentary on Alaska's economy. Join the conversation at Alaskanomics.com, or for more information on the Alaska economy, visit: www.northrim.com and click on the "Business Banking" link and then click "Learn." Information from our website is not incorporated into, and does not form, a part of this earnings release.
Review of Income Statement
Consolidated Income Statement
Net Interest Income/Net Interest Margin
Net interest income increased 7% to $37.1 million in the second quarter of 2026 compared to $34.7 million in the first quarter of 2026 and increased 11% compared to $33.6 million in the second quarter of 2025. Interest expense on deposits decreased to $8.8 million in the second quarter of 2026 compared to $9.0 million in the first quarter of 2026 and $10.3 million in the second quarter of 2025.
NIMTE* was 5.01% in the second quarter of 2026 up from 4.77% in the preceding quarter and 4.72% in the second quarter a year ago. NIMTE* increased 29 basis points in the second quarter of 2026 compared to the second quarter of 2025 primarily due to a favorable change in the mix of earning-assets towards higher loan balances as a percentage of total earning-assets and lower cost of funds due to lower rates on deposits, which were only partially offset by increased borrowing costs. The weighted average interest rate for new loans booked in the second quarter of 2026 was 7.25% compared to 6.70% in the first quarter of 2026 and 7.27% in the second quarter a year ago. The yield on the investment portfolio in the second quarter of 2026 increased to 3.79% from 3.44% in the first quarter of 2026 and 3.07% in the second quarter of 2025. "We saw a slight increase in our loan yields as a result of loan repricing and investment yields from new higher yield purchases. We are also continuing to see impacts from the decrease in our deposit costs from maturing of higher priced time deposits," said Jed Ballard, Chief Financial Officer. Northrim's NIMTE* continues to remain above the peer average of 3.45% posted by the S&P U.S. Small Cap Bank Index with total market capitalization between $250 million and $1 billion as of March 31, 2026.
Provision for Credit Losses
Northrim recorded a provision for credit losses of $1.6 million in the second quarter of 2026, which was comprised of a provision for credit losses on loans of $760,000, a $242,000 provision for credit losses on unfunded commitments, and a provision for credit losses on purchased receivables of $625,000. This compares to a provision for credit losses of $960,000 in the first quarter of 2026, which was comprised of a provision for credit losses on loans of $1.3 million, a $322,000 benefit to the provision for credit losses on unfunded commitments, and a benefit to the provision for credit losses on purchased receivables of $5,000. In the second quarter a year ago, Northrim recorded a provision for credit losses of $2.0 million which was comprised of a $1.8 million provision for credit losses on loans, a $157,000 provision for credit losses on unfunded commitments, and a provision for credit losses on purchased receivables of $18,000.
Nonperforming assets ("NPAs"), net of government guarantees, increased during the quarter to $23.0 million at June 30, 2026, compared to $15.3 million at March 31, 2026, and increased compared to $11.9 million at June 30, 2025. The increase in NPAs was primarily in the Community Banking segment and was mostly attributable to one relationship which includes both commercial real estate and commercial loans which are well-collateralized.
The allowance for credit losses on loans was 117% of nonperforming loans, net of government guarantees, at the end of the second quarter of 2026, compared to 175% three months earlier and 290% a year ago.
Other Operating Income
In addition to home mortgage lending, Northrim has interests in other businesses that complement its core community banking activities, including purchased receivables financing. Other operating income contributed $16.7 million, or 31% of total second quarter 2026 revenues, as compared to $14.9 million, or 30% of revenues in the first quarter of 2026, and $16.6 million, or 33% of revenues in the second quarter of 2025. The increase in other operating income in the second quarter of 2026 as compared to the first quarter of 2026 is primarily the result of higher mortgage banking income due to a higher volume of mortgage activity. See further discussion regarding mortgage activity contained under "Home Mortgage Lending" below.
Other Operating Expenses
Operating expenses were $32.0 million in the second quarter of 2026, compared to $30.6 million in the first quarter of 2026, and $32.5 million in the second quarter of 2025. The increase in other operating expenses in the second quarter of 2026 compared to the first quarter of 2026 was primarily due to an increase in salaries and other personnel expense, mostly due to a $819,000 increase in mortgage originator commission expense, from an increase in mortgage production, as well as a $661,000 increase in group medical expenses.
Income Tax Provision
In the second quarter of 2026, Northrim recorded $4.9 million in state and federal income tax expense for an effective tax rate of 24.1%, compared to $4.3 million, or 23.9% in the first quarter of 2026 and $4.0 million, or 25.3% in the second quarter a year ago. The decrease in the tax rate in the second quarter of 2026 as compared to the second quarter of 2025 is primarily the result of an increase in tax credits and tax exempt interest income as a percentage of pre-tax income.
Community Banking
Northrim is committed to meeting the needs of the diverse communities in which it operates. As a testament to that support, the Bank has branches in four regions of Alaska identified by the Federal Reserve as 'distressed or underserved non-metropolitan middle-income geographies'.
Net interest income in the Community Banking segment totaled $33.2 million in the second quarter of 2026, compared to $31.8 million in the first quarter of 2026 and $30.0 million in the second quarter of 2025. Net interest income increased $3.2 million or 11% in the second quarter of 2026 as compared to the second quarter of 2025 mostly due to higher interest income on loans, on investments, and on deposits in banks as well as lower interest expense on deposits. This increase was only partially offset by higher interest expense on borrowings, as a result of the issuance of subordinated debt in the fourth quarter of 2025.
The provision for credit losses in the Community Banking segment was $503,000 in the second quarter of 2026 compared to $153,000 in the first quarter of 2026 and $1.3 million in the same quarter a year ago. The increase in the provision for credit losses in the Community Banking segment in the second quarter of 2026 as compared to the prior quarter was primarily due to higher growth in loans in this segment during the quarter and an increase in qualitative factors to account for the increase in nonperforming loans, net of government guarantees to $22.3 million at the end of second quarter of 2026 compared to $14.8 million at the end of the first quarter of 2026. The decrease in the provision for credit losses in the second quarter of 2026 compared to the same quarter a year ago was primarily a result of larger increases in qualitative factors due to an increase in adversely classified assets, net of government guarantees in the second quarter of 2025.
The decrease in other operating income in the Community Banking segment in the second quarter of 2026 as compared to the second quarter of 2025 was primarily the result of lower merchant fees and a decrease in the fair value of commercial servicing rights, which were only partially offset by higher service charges on deposit accounts and bankcard fees.
Other operating expenses in the Community Banking segment totaled $20.4 million in the second quarter of 2026, relatively unchanged from $20.4 million in the first quarter of 2026, and down $1.3 million or 6% from $21.8 million in the second quarter a year ago. The decrease in other operating expenses in the second quarter of 2026 as compared to the same quarter a year ago was mostly due to a decrease in salaries and other personnel expense due to lower group medical claims expense and lower accruals for profit sharing and related taxes, as well as decreases in FDIC insurance expense due to improved regulatory capital ratios and marketing expense. These decreases were only partially offset by an increase in professional fees.
The following table provides highlights of the Community Banking segment of Northrim:
Three Months Ended | ||||||||||
(Dollars in thousands, except per share data) | June 30, 2026 | March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | |||||
Net interest income | $33,236 | $31,840 | $32,202 | $32,309 | $29,971 | |||||
Provision for credit losses | 503 | 153 | 1,226 | 1,561 | 1,319 | |||||
Gain on sale by Pacific Wealth Advisors | — | — | 275 | 14,211 | — | |||||
Other operating income | 3,097 | 2,416 | 3,229 | 2,896 | 3,268 | |||||
Other operating expense | 20,434 | 20,390 | 22,090 | 19,965 | 21,764 | |||||
Income before provision for income taxes | 15,396 | 13,713 | 12,390 | 27,890 | 10,156 | |||||
Provision for income taxes | 3,651 | 3,213 | 3,628 | 5,634 | 2,413 | |||||
Net income | $11,745 | $10,500 | $8,762 | $22,256 | $7,743 | |||||
Weighted average shares outstanding, diluted | 22,544,448 | 22,577,720 | 22,533,320 | 22,502,680 | 22,446,232 | |||||
Diluted earnings per share attributable to Community Banking | $0.52 | $0.47 | $0.39 | $0.98 | $0.35 | |||||
Six Months Ended | |||||
(Dollars in thousands, except per share data) | June 30, 2026 | June 30, 2025 | |||
Net interest income | $65,076 | $58,122 | |||
Provision (benefit) for credit losses | 656 | (449 | ) | ||
Other operating income | 5,513 | 5,971 | |||
Other operating expense | 40,824 | 40,345 | |||
Income before provision for income taxes | 29,109 | 24,197 | |||
Provision for income taxes | 6,864 | 5,666 | |||
Net income Community Banking segment | $22,245 | $18,531 | |||
Weighted average shares outstanding, diluted | 22,560,798 | 22,446,936 | |||
Diluted earnings per share | $0.99 | $0.83 | |||
Home Mortgage Lending
During the second quarter of 2026, mortgage loans funded for sale were $239.1 million, compared to $123.4 million in the first quarter of 2026, and $249.7 million in the second quarter of 2025.
During the second quarter of 2026, the Bank purchased loans of $27.9 million from its subsidiary, Residential Mortgage, of which approximately one-third were jumbos, one-third were adjustable rate mortgages, and the remaining one-third were primarily second homes with a weighted average interest rate of 6.35%, as compared to $28.3 million and 6.01% in the first quarter of 2026, and $27.5 million and 6.39% in the second quarter of 2025. Net interest income contributed $3.5 million to Home Mortgage Lending revenue in the second quarter of 2026, up from $2.8 million in the prior quarter, and consistent with $3.5 million in the second quarter a year ago.
The Company reclassified $100 million in consumer mortgages held for investment to held for sale in the first quarter of 2025 and recorded unrealized losses of $1.2 million related to this portfolio in the first quarter of 2025. In the second quarter of 2025, the Company sold $61 million of the $100 million that was reclassified to loans held for sale in the first quarter of 2025 for a total realized loss of $545,000. In the third quarter of 2025, the Company sold $16 million of the $100 million that was reclassified to loans held for sale in the first quarter of 2025 for a total realized loss of $37,000. In the second quarter of 2026, the Company sold the remaining $23 million of the $100 million that was reclassified to loans held for sale in the first quarter of 2025 and an additional $22 million of consumer mortgages held for investment for a total realized gain of $243,000.
The Arizona, Colorado, and Pacific Northwest mortgage expansion markets were responsible for 27% of Residential Mortgage's $222 million total production in the second quarter of 2026 (excluding the $45 million in mortgages sold noted above), 35% of the $152 million total production in the first quarter of 2026, and 22% of the $216 million total production in the second quarter of 2025 (excluding the $61 million in mortgages sold noted above).
The provision for credit losses in the Home Mortgage Lending segment was $279,000 in the second quarter of 2026 compared to $562,000 in the first quarter of 2026 and $639,000 provision for credit losses in the second quarter of 2025. The decrease in the provision for credit losses in the second quarter of 2026 in the Home Mortgage Lending segment as compared to the prior quarter was primarily a result of the sale of mortgage loans.
The net change in fair value of mortgage servicing rights decreased mortgage banking income by $928,000 during the second quarter of 2026 compared to a decrease of $127,000 for the first quarter of 2026 and a decrease of $818,000 for the second quarter of 2025. Mortgage servicing revenue decreased slightly to $2.6 million in the second quarter of 2026 from $2.7 million in the prior quarter and $3.0 million in the second quarter of 2025. Mortgage servicing revenue fluctuates based on production of Alaska Housing Finance Corporation ("AHFC") mortgages, which contribute to servicing revenues at origination. In the second quarter of 2026, the Company's mortgage servicing portfolio consisted of $1.66 billion of mortgage loans which increased $17.2 million compared to a $12.7 million increase in the first quarter of 2026, and an increase of $69.3 million in the second quarter of 2025.
The following table provides highlights of the Home Mortgage Lending segment of Northrim:
Three Months Ended | |||||||||||||||
(Dollars in thousands, except per share data) | June 30, 2026 | March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | ||||||||||
Mortgage commitments | $87,030 | $85,755 | $45,704 | $74,017 | $73,198 | ||||||||||
Mortgage loans funded for sale | $239,138 | $123,384 | $199,619 | $218,234 | $249,680 | ||||||||||
Mortgage loans funded for investment | 27,893 | 28,301 | 31,624 | 15,815 | 27,455 | ||||||||||
Total mortgage loans funded | $267,031 | $151,685 | $231,243 | $234,049 | $277,135 | ||||||||||
Mortgage loan refinances to total fundings | 13 | % | 29 | % | 20 | % | 6 | % | 10 | % | |||||
Mortgage loans serviced for others | $1,659,395 | $1,642,195 | $1,629,528 | $1,601,174 | $1,553,987 | ||||||||||
Net realized and unrealized gains on mortgage loans sold and held for sale | $5,408 | $2,997 | $5,296 | $4,810 | $5,091 | ||||||||||
Change in fair value of mortgage loan commitments, net | (202 | ) | 720 | (575 | ) | 371 | (110 | ) | |||||||
Total production revenue | 5,206 | 3,717 | 4,721 | 5,181 | 4,981 | ||||||||||
Mortgage servicing revenue | 2,568 | 2,667 | 2,113 | 3,056 | 2,957 | ||||||||||
Change in fair value of mortgage servicing rights: | |||||||||||||||
Due to changes in model inputs of assumptions1 | (366 | ) | 463 | (87 | ) | (638 | ) | (355 | ) | ||||||
Other2 | (562 | ) | (590 | ) | (772 | ) | (612 | ) | (463 | ) | |||||
Total mortgage servicing revenue, net | 1,640 | 2,540 | 1,254 | 1,806 | 2,139 | ||||||||||
Other mortgage banking revenue | 292 | 204 | 338 | 286 | 280 | ||||||||||
Total mortgage banking income | $7,138 | $6,461 | $6,313 | $7,273 | $7,400 | ||||||||||
Net interest income | $3,474 | $2,796 | $2,918 | $2,812 | $3,507 | ||||||||||
Provision for credit losses | 279 | 562 | 688 | 158 | 639 | ||||||||||
Mortgage banking income | 7,138 | 6,461 | 6,313 | 7,273 | 7,400 | ||||||||||
Other operating expense | 8,122 | 7,201 | 8,325 | 7,365 | 7,593 | ||||||||||
Income before provision for income taxes | 2,211 | 1,494 | 218 | 2,562 | 2,675 | ||||||||||
Provision for income taxes | 604 | 408 | 5 | 706 | 746 | ||||||||||
Net income | $1,607 | $1,086 | $213 | $1,856 | $1,929 | ||||||||||
Weighted average shares outstanding, diluted | 22,544,448 | 22,577,720 | 22,533,320 | 22,502,680 | 22,446,232 | ||||||||||
Diluted earnings per share attributable to Home Mortgage Lending | $0.07 | $0.05 | $0.01 | $0.08 | $0.09 | ||||||||||
1Principally reflects changes in discount rates and prepayment speed assumptions, which are primarily affected by changes in interest rates. | |||||||||||||||
2Represents changes due to collection/realization of expected cash flows over time. | |||||||||||||||
Six Months Ended | ||||||
(Dollars in thousands, except per share data) | June 30, 2026 | June 30, 2025 | ||||
Mortgage loans funded for sale | $362,522 | $358,179 | ||||
Mortgage loans funded for investment | 56,194 | 40,516 | ||||
Total mortgage loans funded | $418,716 | $398,695 | ||||
Mortgage loan refinances to total fundings | 19 | % | 10 | % | ||
Net realized gains on mortgage loans sold | $8,405 | $6,671 | ||||
Change in fair value of mortgage loan commitments, net | 518 | 550 | ||||
Total production revenue | 8,923 | 7,221 | ||||
Mortgage servicing revenue | 5,235 | 5,653 | ||||
Change in fair value of mortgage servicing rights: | ||||||
Due to changes in model inputs of assumptions1 | 97 | (677 | ) | |||
Other2 | (1,152 | ) | (996 | ) | ||
Total mortgage servicing revenue, net | 4,180 | 3,980 | ||||
... |