Northrim BanCorp, Inc. reported a significant increase in its financial performance for the fiscal year ending December 31, 2024, with net income rising 46% to $37.0 million, or $6.62 per diluted share, compared to $25.4 million, or $4.49 per diluted share, in 2023. This growth was primarily driven by a $7.3 million increase in net income from the Home Mortgage Lending segment and a $4.9 million increase from the Community Banking segment. The company's total assets reached $3.04 billion, up from $2.81 billion in the previous year, while total deposits increased by 8% to $2.68 billion.
The acquisition of Sallyport Commercial Finance, LLC (SCF) on October 31, 2024, for approximately $53.9 million marked a strategic development for Northrim, allowing the company to expand its presence in the specialty finance sector. This acquisition is expected to enhance Northrim's offerings in factoring and asset-based lending. The Specialty Finance segment, which includes SCF and Northrim Funding Services, reported a decrease in net income to $1.8 million, down from $2.5 million in 2023, largely due to one-time deal-related costs.
Operationally, Northrim's loan portfolio grew by 19% to $2.13 billion, with nonperforming loans increasing to $7.5 million from $5.0 million in the previous year. The allowance for credit losses (ACL) rose to 1.03% of total portfolio loans, reflecting the company's proactive approach to managing credit risk amid economic uncertainties. The company maintained a strong customer base, with approximately 34,000 deposit customers and an average deposit balance of $61,000.
Looking ahead, Northrim anticipates continued growth in 2025, supported by its strategic focus on expanding market share and enhancing customer relationships. The company aims to leverage its recent acquisition to drive profitability and improve operational efficiencies. However, management acknowledged potential risks, including economic fluctuations in Alaska, interest rate volatility, and the impact of inflation on borrowers' repayment capabilities, which could affect future performance.
About NORTHRIM BANCORP INC
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