Northrim BanCorp, Inc. (NASDAQ:NRIM) (“Northrim” or the "Company")
today reported net income of $6.6 million, or $1.19 per diluted
share, in the fourth quarter of 2023, compared to $8.4 million, or
$1.48 per diluted share, in the third quarter of 2023, and $8.6
million, or $1.48 per diluted share, in the fourth quarter a year
ago. The decrease in the fourth quarter of 2023 compared to the
third quarter of 2023 is primarily due to lower net income in the
Home Mortgage Lending segment resulting from a decline in mortgage
originations and a decline in the fair value of mortgage servicing
rights. The decrease in the fourth quarter of 2023 profitability as
compared to the same quarter of the prior year was largely driven
by an increase in interest expense that was only partially offset
by higher interest income, as well as increased salaries and other
personnel expense.
Net income for the full year of 2023 decreased
17% to $25.4 million, or $4.49 per diluted share, compared to $30.7
million, or $5.27 per diluted share, for the full year of 2022.
Loan and deposit growth supported 2023 earnings in the Community
Banking segment but were offset by increased other operating
expenses, primarily in salaries and other personnel expense as the
Company continues to expand its branch network into new markets,
and a higher provision for credit losses in 2023 due to higher loan
growth compared to 2022. A decline in mortgage originations and a
decline in the fair value of mortgage servicing rights resulted in
a $2.5 million loss in the Home Mortgage Lending segment in 2023
compared to an $897,000 loss in 2022.
Dividends per share in the fourth quarter of
2023 remained consistent with the third quarter of 2023 at $0.60
per share and increased 20% from $0.50 per share in the fourth
quarter of 2022.
“We are pleased with our 2023 results,” said Joe
Schierhorn, President and Chief Executive Officer Northrim BanCorp,
Inc. “We have continued to gain market share as we expand our
branch network, upgrade our treasury management capabilities, and
attract talented new individuals to the Northrim team. Market share
gains have fueled solid loan and deposit growth and allowed us to
maintain enhanced liquidity to ensure our stability in a range of
economic scenarios.”
Fourth Quarter 2023
Highlights:
- Net interest income in the fourth
quarter of 2023 increased 1% to $26.7 million compared to $26.4
million in the third quarter of 2023 and decreased 2% compared to
$27.3 million in the fourth quarter of 2022.
- Net interest margin on a tax
equivalent basis (“NIMTE”)* was 4.12% for the fourth quarter of
2023, a 9-basis point decrease from the third quarter of 2023 and a
24-basis point decrease compared to the fourth quarter of
2022.
- The weighted average interest rate
for new loans booked in the fourth quarter of 2023 was 8.03%
compared to 7.39% in the third quarter of 2023 and 6.26% in the
fourth quarter a year ago.
- Return on average assets (“ROAA”)
was 0.93% and return on average equity ("ROAE") was 11.36% for the
fourth quarter of 2023.
- Portfolio loans were $1.79 billion
at December 31, 2023, up 4% from the preceding quarter and up
19% from a year ago, primarily due to new customer relationships,
expanding market share and retaining certain mortgages originated
by Residential Mortgage, a subsidiary of Northrim Bank (the“Bank”),
in the loan portfolio.
- Total deposits were $2.49 billion
at December 31, 2023, up 2% from the preceding quarter, and up
4% from $2.39 billion a year ago. Noninterest bearing demand
deposits represented 31% of total deposits at both December 31,
2023 and September 30, 2023, down from 34% at December 31, 2022.
Average interest-bearing deposits were $1.72 billion for the fourth
quarter of 2023, up 6% from the preceding quarter, and up 9% from
the fourth quarter a year ago.
- The average cost of
interest-bearing deposits was 2.00% in the fourth quarter of 2023,
up from 1.75% in the third quarter of 2023 and 0.56% in the fourth
quarter a year ago.
- The net unrealized loss, net of tax
on the available for sale investment portfolio reflected in
accumulated other comprehensive income was $17.4 million at
December 31, 2023, down from $26.5 million in the preceding
quarter.
Financial
Highlights |
Three Months Ended |
(Dollars in thousands, except
per share data) |
December 31, 2023 |
September 30, 2023 |
June 30, 2023 |
March 31, 2023 |
December 31, 2022 |
Total assets |
$2,807,497 |
|
$2,790,189 |
|
$2,638,207 |
|
$2,580,037 |
|
$2,674,318 |
|
Total portfolio loans |
$1,789,497 |
|
$1,720,091 |
|
$1,659,239 |
|
$1,535,187 |
|
$1,501,785 |
|
Total deposits |
$2,485,055 |
|
$2,427,930 |
|
$2,302,311 |
|
$2,296,273 |
|
$2,387,211 |
|
Total shareholders'
equity |
$234,718 |
|
$225,259 |
|
$221,336 |
|
$224,425 |
|
$218,629 |
|
Net income |
$6,613 |
|
$8,374 |
|
$5,577 |
|
$4,830 |
|
$8,595 |
|
Diluted earnings per
share |
$1.19 |
|
$1.48 |
|
$0.98 |
|
$0.84 |
|
$1.48 |
|
Return on average assets |
0.93 |
% |
1.22 |
% |
0.85 |
% |
0.76 |
% |
1.26 |
% |
Return on average
shareholders' equity |
11.36 |
% |
14.67 |
% |
9.85 |
% |
8.73 |
% |
15.71 |
% |
NIM |
4.06 |
% |
4.15 |
% |
4.14 |
% |
4.22 |
% |
4.31 |
% |
NIMTE* |
4.12 |
% |
4.21 |
% |
4.21 |
% |
4.30 |
% |
4.36 |
% |
Efficiency ratio |
72.21 |
% |
66.64 |
% |
74.03 |
% |
78.51 |
% |
65.23 |
% |
Total shareholders'
equity/total assets |
8.36 |
% |
8.07 |
% |
8.39 |
% |
8.70 |
% |
8.18 |
% |
Tangible common
equity/tangible assets* |
7.84 |
% |
7.54 |
% |
7.83 |
% |
8.13 |
% |
7.62 |
% |
Book value per share |
$42.57 |
|
$40.60 |
|
$39.45 |
|
$39.56 |
|
$38.35 |
|
Tangible book value per
share* |
$39.68 |
|
$37.72 |
|
$36.60 |
|
$36.74 |
|
$35.55 |
|
Dividends per share |
$0.60 |
|
$0.60 |
|
$0.60 |
|
$0.60 |
|
$0.50 |
|
Common shares outstanding |
5,513,459 |
|
5,548,436 |
|
5,610,841 |
|
5,672,841 |
|
5,700,728 |
|
|
* References to NIMTE, tangible book value per
share, tangible common equity to tangible common assets, and
tangible common equity to tangible assets, excluding the unrealized
losses on the available for sale securities portfolio, (all of
which exclude intangible assets) 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 12.)
The Alaska Department of Labor ("DOL") has
reported Alaska’s seasonally adjusted unemployment rate in November
of 2023 was 4.4% compared to the U.S. rate of 3.7%. The
total number of payroll jobs in Alaska, not including uniformed
military, increased 1.6% or 5,000 jobs between November of 2022 and
November of 2023.
According to the DOL, Health Care had the
largest growth in new jobs in Alaska through November compared to
the prior year. The sector added 1,300 positions for a
year over year growth rate of 3.3%. The Oil & Gas
sector had the largest percentage growth rate at 5.6% or 400 new
jobs. Leisure and Hospitality added 800 jobs for a 2.6% growth
rate. Professional & Business Services and Trade,
Transportation & Utilities both added 700 jobs year over year
through November of 2023. The Government sector grew by
500 jobs for 0.6% growth due to more federal positions in Alaska,
which offset declines in Alaska state government jobs.
Alaska’s Gross State Product (“GSP”) in the
third quarter of 2023, was estimated to be $67.7 billion in current
dollars, according to the Federal Bureau of Economic Analysis
("BEA"). Alaska’s inflation adjusted “real” GSP grew
3.6% at annualized rates in the third quarter of 2023, compared to
the average U.S. rate of 4.9%. Alaska’s real GSP
improvement in the third quarter of 2023 was aided by gains in the
Transportation & Warehousing and Construction sectors.
The BEA also calculated Alaska’s seasonally
adjusted personal income at $52.3 billion in the third quarter of
2023. This was an annualized improvement of 2.2% for
Alaska over the second quarter of 2023, compared to the national
average of 3.5%.
The monthly average price of Alaska North Slope
(“ANS”) crude oil was in a range between $75.64 and $95.05 in 2023.
The Alaska Department of Revenue (“DOR”) calculated ANS crude oil
production was 479 thousand barrels per day (“bpd”) in Alaska’s
fiscal year ending June 30, 2023. The DOR has forecast
production to decline slightly to 470 thousand bpd in Alaska’s
fiscal year 2024. That number is projected to grow by the DOR to
663 thousand bpd by fiscal year 2033. This is primarily
a result of new production coming on line in and around the NPR-A
region west of Prudhoe Bay.
According to the Alaska Multiple Listing
Services, the average sales price of a single family home in
Anchorage rose 5.4% in 2023 to $481,181, following a 7.6% increase
in 2022. This was the sixth consecutive year of price
increases.
Average sales prices for single family homes in
the Matanuska Susitna Borough rose 4% in 2023 to $397,858, after
increasing 9.9% in 2022. This continues a trend of
average price increases for more than a decade in the region. These
two markets represent where the vast majority of the Bank’s
residential lending activity occurs.
However, the Alaska Multiple Listing Services
reported a large decrease in the number of units sold in both
communities. There were 2,162 housing units sold in
Anchorage in 2023, down 24.1% compared to 2,849 in 2022. In the
Matanuska Susitna Borough there were 1,632 homes sold in 2023,
compared to 2,103 in 2022, a decrease of 22.4%.
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
In the fourth quarter of 2023, Northrim
generated a ROAA of 0.93% and a ROAE of 11.36%, compared to 1.22%
and 14.67%, respectively, in the third quarter of 2023 and 1.26%
and 15.71%, respectively, in the fourth quarter a year ago. For the
year 2023, Northrim generated a ROAA of 0.94% and a ROAE of 11.17%,
compared to 1.16% and 13.68% for 2022.
Net Interest Income/Net Interest Margin
Net interest income increased 1% to
$26.7 million in the fourth quarter of 2023 compared to
$26.4 million in the third quarter of 2023 and decreased 2%
compared to $27.3 million in the fourth quarter of 2022.
Interest expense on deposits increased to $8.7 million in the
fourth quarter compared to $7.1 million in the third quarter
of 2023 and $2.2 million in the fourth quarter of 2022.
NIMTE* was 4.12% in the fourth quarter of 2023
compared to 4.21% in the preceding quarter and 4.36% in the fourth
quarter a year ago. NIMTE* decreased 9 basis points in the fourth
quarter of 2023 compared to the prior quarter and 24 basis points
compared to the fourth quarter of 2022 primarily due to higher
costs on interest bearing demand deposits that was only partially
offset by higher earning asset balances and higher loan yields. The
weighted average interest rate for new loans booked in the fourth
quarter of 2023 was 8.03% compared to 7.39% in the third quarter of
2023 and 6.26% in the fourth quarter a year ago. Long-term
investments were purchased in the fourth quarter of 2023 with a
weighted average yield of 5.33%. The yield on the investment
portfolio increased to 2.48% for the quarter as a result of
repricing of the variable rate investments which represent 10% of
the investment portfolio. “We expect our net interest margin to
continue to remain relatively stable as estimated increases in
earning-asset yields from the repricing of earning assets will
likely be offset by increases in deposit costs,” said Jed Ballard,
Chief Financial Officer. Northrim’s NIMTE* continues to remain
above the peer average posted by the S&P U.S. Small Cap Bank
Index with total market capitalization between $250 million and $1
billion as of September 30, 2023.1
Provision for Credit Losses
Northrim recorded a provision for credit losses
of $885,000 in the fourth quarter of 2023, which includes a $9,000
provision for credit losses on unfunded commitments and a provision
for credit losses on loans of $876,000. This compares to a
provision for credit losses of $1.2 million in the third
quarter of 2023, and a provision for credit losses of
$1.9 million in the fourth quarter a year ago. The $885,000
provision for credit losses in the fourth quarter of 2023 is
largely attributable to increases in loan and unfunded commitment
balances.
Nonperforming loans, net of government
guarantees, decreased during the quarter to $5.0 million at
December 31, 2023, compared to $5.1 million at September
30, 2023, and $6.4 million at December 31, 2022.
The allowance for credit losses was 345% of
nonperforming loans, net of government guarantees, at the end of
the fourth quarter of 2023, compared to 326% three months earlier
and 215% 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 and wealth management. Other operating income contributed
$6.5 million, or 20% of total fourth quarter 2023 revenues, as
compared to $8.0 million, or 23% of revenues in the third
quarter of 2023, and $6.8 million, or 20% of revenues in the
fourth quarter of 2022. The decrease in other operating income in
the fourth quarter of 2023 as compared to the preceding quarter and
the fourth quarter of 2022 is primarily the result of decreased
mortgage banking income due to lower volume of mortgage activity
and a change in the value of mortgage servicing rights, that was
only partially offset by higher purchased receivable income and
unrealized gains on marketable equity securities.
|
1As of September 30, 2023, the S&P U.S. Small Cap Bank Index
tracked 253 banks with total common market capitalization between
$250 million to $1B for the following ratios: NIMTE* of 3.23%. |
Other Operating Expenses
Operating expenses were $24.0 million in
the fourth quarter of 2023, compared to $22.9 million in the
third quarter of 2023, and $22.2 million in the fourth quarter
of 2022. The increase in other operating expenses in the fourth
quarter of 2023 compared to the third quarter of 2023 is primarily
due to an increase in OREO expense due to a gain on sale recorded
in the third quarter of 2023 for subsequent proceeds received
related to a government guarantee on an OREO property sold in
December 2022. The increase in other operating expenses in the
fourth quarter of 2023 as compared to the fourth quarter a year ago
is primarily due to increased salaries and other personnel
expense.
Income Tax Provision
In the fourth quarter of 2023, Northrim recorded
$1.7 million in state and federal income tax expense for an
effective tax rate of 20.7%, compared to $1.9 million, or
18.4% in the third quarter of 2023 and $1.4 million, or 13.6%
in the fourth quarter a year ago. The increase in the tax rate in
the fourth quarter of 2023 as compared to the third quarter of 2023
and the fourth quarter a year ago is primarily the result of
decreased tax benefits related to the Company's investment in low
income housing tax credits.
Community Banking
In the most recent deposit market share data
from the FDIC, Northrim’s deposit market share in Alaska increased
to 15.04% of Alaska's total deposits as of June 30, 2023 compared
to 13.95% of Alaska's total deposits as of June 30, 2022. This
represents 7.8% growth in market share percentage for Northrim
during that period while, according to the FDIC, the total deposits
in Alaska were down 8.5% during the same period. Northrim opened a
branch in Kodiak in the first quarter of 2023, a loan production
office in Homer in the second quarter of 2023, and a permanent
branch in Nome in the third quarter of 2023. Northrim also plans to
open a branch in Homer later this year. See below for further
discussion regarding the Company's deposit movement for the
quarter.
Net interest income in the Community Banking
segment totaled $24.5 million in the fourth quarter of 2023,
compared to $24.1 million in the third quarter of 2023 and
$26.7 million in the fourth quarter of 2022. Net interest
income increased in the fourth quarter of 2023 as compared to the
third quarter of 2023 mostly due to increased interest income on
loans that was only partially offset by higher interest expense on
deposits. Net interest income decreased in the fourth quarter of
2023 as compared to the fourth quarter of 2022 primarily due to
higher interest expense on deposits, which was only partially
offset by increased interest income on loans and investments. Other
operating expense increased in the fourth quarter of 2023 as
compared to the third quarter of 2023 primarily due to an increase
in OREO expense. The third quarter of 2023 reflected a decrease in
OREO expense discussed above.
The following table provides highlights of the
Community Banking segment of Northrim:
|
Three Months Ended |
(Dollars in thousands, except per share data) |
December 31, 2023 |
September 30, 2023 |
June 30, 2023 |
March 31, 2023 |
December 31, 2022 |
Net interest income |
$24,456 |
$24,050 |
$22,700 |
$24,752 |
$26,741 |
Provision for credit
losses |
885 |
1,190 |
1,407 |
360 |
1,886 |
Other operating income |
4,048 |
3,597 |
3,067 |
2,900 |
3,819 |
Other operating expense |
18,516 |
16,946 |
17,805 |
17,417 |
16,678 |
Income before provision for income taxes |
9,103 |
9,511 |
6,555 |
9,875 |
11,996 |
Provision for income
taxes |
1,941 |
1,709 |
1,192 |
2,315 |
1,884 |
Net income Community Banking segment |
$7,162 |
$7,802 |
$5,363 |
$7,560 |
$10,112 |
Weighted average shares
outstanding, diluted |
5,578,491 |
5,624,906 |
5,677,292 |
5,757,458 |
5,769,415 |
Diluted earnings per
share |
$1.29 |
$1.39 |
$0.94 |
$1.31 |
$1.74 |
|
|
|
|
|
|
|
Year Ended |
(Dollars in thousands, except
per share data) |
December31, 2023 |
December31, 2022 |
Net interest income |
$95,958 |
$92,921 |
Provision for credit losses |
|
3,842 |
|
1,846 |
Other operating income |
|
13,612 |
|
12,505 |
Other operating expense |
|
70,684 |
|
63,901 |
Income before provision for income taxes |
|
35,044 |
|
39,679 |
Provision for income
taxes |
|
7,157 |
|
8,041 |
Net income Community Banking segment |
$27,887 |
$31,638 |
Weighted average shares
outstanding, diluted |
|
5,661,460 |
|
5,829,412 |
Diluted earnings per
share |
$4.93 |
$5.42 |
|
|
|
|
|
Home Mortgage Lending
During the fourth quarter of 2023, mortgage
loans funded for sale decreased to $79.7 million, of which 96%
was for home purchases, compared to $131.9 million and 95% of
loans funded for home purchases in the third quarter of 2023, and
decreased as compared to $82.1 million, of which 89% was for
home purchases in the fourth quarter of 2022.
The Company has developed mortgage products
including adjustable rate mortgages, a second home product, and
extended locks, which are intended to appeal to customers given the
current interest rate environment. During the fourth quarter of
2023, our home mortgage lending subsidiary, Residential Mortgage
originated $27.1 million in home mortgages, of which roughly
half were adjustable rate mortgages and half were mortgages for
second homes, that the Bank purchased and booked as consumer loans
at a weighted average interest rate of 7.05%, up from
$21.6 million and 6.60% in the third quarter of 2023, $55.6
million and 5.70% in the second quarter of 2023, $42.0 million and
5.11% in the first quarter of 2023, and $34.6 million and 5.52% in
the fourth quarter of 2022. Total mortgage production for the
fourth quarter of 2023 was down 30% compared to the third quarter
of 2023 and down 8% compared to the fourth quarter a year ago.
Given the seasonality of the mortgage operations, the Company
usually sees lower production in the fourth and first quarters and
an increase in production in the second quarter. Additionally,
management anticipates that the volume of mortgages that the Bank
will purchase from Residential Mortgage will continue to decrease,
as they look to sell a larger percentage of production on the
secondary market going forward. Mr. Ballard noted that “purchases
of mortgages by Northrim Bank was a long-term, strategic decision
to deploy excess liquidity, reduce asset sensitivity, and provide
products to loan originators to market for increased production in
this rising interest rate environment.” Mr. Ballard added, “we are
at our target for these mortgages of approximately 10% of our loan
portfolio.”
The expansion efforts of mortgage production in
the Arizona, Colorado, and Pacific Northwest markets in late 2022
contributed to 11% of Residential Mortgage's $107 million total
production in the fourth quarter of 2023, 8% of $153 million in
total production in the third quarter of 2023, 15% of $169 million
in total production in the second quarter of 2023, and 19% of $93
million in total production in the first quarter of 2023. The
expansion efforts into new markets contributed to 13% of
Residential Mortgage's $522 million total production in 2023.
The net change in fair value of mortgage
servicing rights decreased mortgage banking income by
$1.0 million during the fourth quarter of 2023 compared to a
decrease of $310,000 for the third quarter of 2023 and a decrease
of $318,000 for the fourth quarter of 2022. Mortgage servicing
revenue decreased to $2.2 million in the fourth quarter of
2023 from $2.4 million in the prior quarter and increased from
$2.1 million in the fourth quarter of 2022 due to changes in
production of loans sold with servicing retained. In the fourth
quarter of 2023, the Company's servicing portfolio increased $78.6
million in new mortgage loans, net of amortization and payoffs as
compared to an increase of $77.7 million in the third quarter of
2023 and $58.6 million in the fourth quarter of 2022.
As of December 31, 2023, Northrim serviced 3,863
loans in its $1.04 billion home-mortgage-servicing portfolio,
a 6% increase compared to the $982.1 million serviced as of
the end of the third quarter of 2023, and a 16% increase from the
$898.8 million serviced a year ago. Delinquencies in the loan
servicing portfolio totaled 3.0% at December 31, 2023, compared to
2.0% at December 31, 2022.
The following table provides highlights of the
Home Mortgage Lending segment of Northrim:
|
Three Months Ended |
(Dollars in thousands, except
per share data) |
December 31, 2023 |
September 30, 2023 |
June 30, 2023 |
March 31, 2023 |
December 31, 2022 |
Mortgage loan commitments |
$22,926 |
|
$50,128 |
|
$71,123 |
|
$41,050 |
|
$29,065 |
|
|
|
|
|
|
|
Mortgage loans funded for
sale |
$79,742 |
|
$131,863 |
|
$113,824 |
|
$50,725 |
|
$82,149 |
|
Mortgage loans funded for investment |
|
27,114 |
|
|
21,585 |
|
|
55,595 |
|
|
41,964 |
|
|
34,622 |
|
Total mortgage loans
funded |
$106,856 |
|
$153,448 |
|
$169,419 |
|
$92,689 |
|
$116,771 |
|
Mortgage loan refinances to
total fundings |
|
4 |
% |
|
5 |
% |
|
3 |
% |
|
5 |
% |
|
11 |
% |
Mortgage loans serviced for
others |
$1,044,516 |
|
$982,098 |
|
$921,616 |
|
$911,065 |
|
$898,840 |
|
|
|
|
|
|
|
Net realized gains on mortgage
loans sold |
$1,462 |
|
$2,491 |
|
$2,570 |
|
$1,305 |
|
$1,567 |
|
Change in fair value of
mortgage loan commitments, net |
|
(296 |
) |
|
(289 |
) |
|
358 |
|
|
125 |
|
|
(446 |
) |
Total production revenue |
|
1,166 |
|
|
2,202 |
|
|
2,928 |
|
|
1,430 |
|
|
1,121 |
|
Mortgage servicing
revenue |
|
2,180 |
|
|
2,396 |
|
|
1,424 |
|
|
1,368 |
|
|
2,120 |
|
Change in fair value of
mortgage servicing rights: |
|
|
|
|
|
Due to changes in model inputs of assumptions1 |
|
(707 |
) |
|
— |
|
|
(3 |
) |
|
(212 |
) |
|
93 |
|
Other2 |
|
(301 |
) |
|
(310 |
) |
|
(571 |
) |
|
(583 |
) |
|
(411 |
) |
Total mortgage servicing
revenue, net |
|
1,172 |
|
|
2,086 |
|
|
850 |
|
|
573 |
|
|
1,802 |
|
Other mortgage banking
revenue |
|
99 |
|
|
117 |
|
|
135 |
|
|
5 |
|
|
33 |
|
Total mortgage banking income |
$2,437 |
|
$4,405 |
|
$3,913 |
|
$2,008 |
|
$2,956 |
|
|
|
|
|
|
|
Net interest income |
$2,276 |
|
$2,300 |
|
$2,442 |
|
$280 |
|
$546 |
|
Mortgage banking income |
|
2,437 |
|
|
4,405 |
|
|
3,913 |
|
|
2,008 |
|
|
2,956 |
|
Other operating expense |
|
5,477 |
|
|
5,951 |
|
|
5,977 |
|
|
6,092 |
|
|
5,548 |
|
Income before provision for income taxes |
|
(764 |
) |
|
754 |
|
|
378 |
|
|
(3,804 |
) |
|
(2,046 |
) |
Provision for income
taxes |
|
(215 |
) |
|
182 |
|
|
164 |
|
|
(1,074 |
) |
|
(529 |
) |
Net (loss) income Home Mortgage Lending segment |
($549 |
) |
$572 |
|
$214 |
|
($2,730 |
) |
($1,517 |
) |
|
|
|
|
|
|
Weighted average shares
outstanding, diluted |
|
5,578,491 |
|
|
5,624,906 |
|
|
5,805,870 |
|
|
5,757,458 |
|
|
5,769,415 |
|
Diluted (loss) earnings per
share |
($0.10 |
) |
$0.09 |
|
$0.04 |
|
($0.47 |
) |
($0.26 |
) |
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.
|
|
Year Ended |
(Dollars in thousands, except
per share data) |
December 31, 2023 |
December 31, 2022 |
Mortgage loans funded for sale |
$376,154 |
|
$550,911 |
|
Mortgage loans funded for
investment |
146,258 |
|
34,622 |
|
Total mortgage loans
funded |
$522,412 |
|
$585,533 |
|
Mortgage loan refinances to
total fundings |
4 |
% |
12 |
% |
|
|
|
Net realized gains on mortgage
loans sold |
$7,828 |
|
$13,873 |
|
Change in fair value of
mortgage loan commitments, net |
(102 |
) |
(1,035 |
) |
Total production revenue |
7,726 |
|
12,838 |
|
Mortgage servicing
revenue |
7,368 |
|
7,944 |
|
Change in fair value of
mortgage servicing rights: |
|
|
Due to changes in model inputs of assumptions1 |
(922 |
) |
1,615 |
|
Other2 |
(1,765 |
) |
(1,327 |
) |
Total mortgage servicing
revenue, net |
4,681 |
|
8,232 |
|
Other mortgage banking
revenue |
356 |
|
502 |
|
Total mortgage banking income |
$12,763 |
|
$21,572 |
|
|
|
|
Net interest income |
$7,298 |
|
$2,193 |
|
Mortgage banking income |
12,763 |
|
21,572 |
|
Other operating expense |
23,497 |
|
24,950 |
|
Income before provision for income taxes |
(3,436 |
) |
(1,185 |
) |
Provision for income
taxes |
(943 |
) |
(288 |
) |
Net (loss) income Home Mortgage Lending segment |
($2,493 |
) |
($897 |
) |
|
|
|
Weighted average shares
outstanding, diluted |
5,661,460 |
|
5,829,412 |
|
Diluted (loss) earnings per
share |
($0.44 |
) |
($0.15 |
) |
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.
Balance Sheet Review
Northrim’s total assets were $2.81 billion at
December 31, 2023, up 1% from the preceding quarter and up 5%
from a year ago. Northrim’s loan-to-deposit ratio was 72% at
December 31, 2023, up from 71% at September 30, 2023, and 63%
at December 31, 2022.
At December 31, 2023, our liquid assets and
investments and loans maturing within one year were
$575.6 million and our funds available for borrowing under our
existing lines of credit were $742.9 million. Given these
sources of liquidity and our expectations for customer demands for
cash and for our operating cash needs, we believe our sources of
liquidity to be sufficient for the foreseeable future.
Average interest-earning assets were
$2.61 billion in the fourth quarter of 2023, up 4% from
$2.52 billion in the third quarter of 2023 and up 4% from
$2.51 billion in the fourth quarter a year ago. The average
yield on interest-earning assets was 5.51% in the fourth quarter of
2023, up from 5.48% in the preceding quarter and 4.74% in the
fourth quarter a year ago.
Average investment securities decreased to
$690.7 million in the fourth quarter of 2023, compared to
$715.8 million in the third quarter of 2022 and
$712.8 million in the fourth quarter a year ago. The average
net tax equivalent yield on the securities portfolio was 2.48% for
the fourth quarter of 2023, up from 2.43% in the preceding quarter
and up from 2.30% in the year ago quarter. The average estimated
duration of the investment portfolio at December 31, 2023, was
approximately 2.8 years down from approximately 3.3 years a year
ago. As of December 31, 2023, $63.1 million of available for sale
securities are scheduled to mature in the next six months, $99.7
million are scheduled to mature in six months to one year, and
$141.3 million are scheduled to mature in the following year,
representing a total of $304.1 million or 12% of earning assets
that are scheduled to mature in the next 24 months.
Total unrealized losses, net of tax, on
available for sale securities decreased by $9.1 million in the
fourth quarter of 2023 as compared to the prior quarter, and
decreased by $12.7 million compared to the fourth quarter of
2022, resulting in a total unrealized loss of $17.4 million at
December 31, 2023 compared to $26.5 million at September 30,
2023 and $30.1 million a year ago. The average maturity of the
available for sale securities with the majority of the unrealized
loss is 1.9 years. Total unrealized losses on held to maturity
securities were $3.3 million at December 31, 2023, compared to $4.5
million at September 30, 2023, and $4.1 million a year ago.
Average interest bearing deposits in other banks
increased to $126.2 million in the fourth quarter from
$42.3 million in the third quarter of 2023 due to higher
deposit balances and maturing portfolio investments. Average
interest bearing deposits in other banks decreased in the fourth
quarter of this year compared to $294.3 million in the fourth
quarter of 2022 as cash was used to fund the growing loan
portfolio.
Portfolio loans were $1.79 billion at
December 31, 2023, up 4% from the preceding quarter and up 19% from
a year ago. Portfolio loans, excluding consumer mortgage loans,
increased by 3% or $43.0 million to $1.60 billion from the
preceding quarter and were up 11% from a year ago. Average
portfolio loans in the third quarter of 2023 were
$1.75 billion, which was up 3% from the preceding quarter and
up 19% from a year ago. Yields on average portfolio loans in the
fourth quarter of 2023 decreased slightly to 6.55% from 6.61% in
the third quarter of 2023 due to some one time adjustments in both
periods and increased from 5.98% in the fourth quarter of 2022.
Without certain one-time items, including fees from loan
prepayments, yields on average portfolio loans would have been
6.60% in the fourth quarter of 2023 and 6.46% in the third quarter
of 2023. The yield on new portfolio loans, excluding consumer
mortgage loans, was 8.79% in the fourth quarter of 2023 as compared
to 7.98% in the third quarter of 2023 and 6.42% in the fourth
quarter of 2022. 31% of loans mature or reprice in the next three
months, 15% of loans mature or reprice in three to twelve months,
and 16% of loans mature or reprice in one to two years.
Alaskans continue to account for substantially
all of Northrim’s deposit base. Total deposits were
$2.49 billion at December 31, 2023, up 2% from
$2.43 billion at September 30, 2023, and up 4% from
$2.39 billion a year ago. At December 31, 2023, 71% of
total deposits were held in business accounts and 29% of deposit
balances were held in consumer accounts. Northrim had approximately
33,000 deposit customers with an average balance of $75,000 as of
December 31, 2023. Northrim had 19 customers with balances
over $10 million as of December 31, 2023, which accounted for
$453.0 million, or 18%, of total deposits. Of these $453.0 million
of deposits, approximately 36% are insured using ICS or CDARS and
an additional 20% are long-term customers with whom Northrim has
significant lending relationships. ICS and CDARS deposits are
divided into amounts under the FDIC insurance maximum and allocated
among member banks, making the large deposit eligible for FDIC
insurance. Demand deposits decreased by 2% from the prior quarter
and decreased 6% year-over-year to $749.7 million at
December 31, 2023. Demand deposits remained consistent at 31%
of total deposits at December 31, 2023 and September 30, 2023
and decreased from 34% of total deposits at December 31, 2022.
Average interest-bearing deposits were up 6% to $1.72 billion
with an average cost of 2.00% in the fourth quarter of 2023,
compared to $1.62 billion and an average cost of 1.75% in the
third quarter of 2023, and up 9% compared to $1.58 billion and
an average cost of 0.56% in the fourth quarter of 2022. Uninsured
deposits totaled $1.02 billion or 41% of total deposits as of
December 31, 2023 compared to $1.1 billion or 46% of total
deposits as of December 31, 2022. As interest rates continued to
increase in 2023, Northrim has taken a proactive, targeted approach
to increase deposit rates.
Shareholders’ equity was $234.7 million, or
$42.57 book value per share, at December 31, 2023, compared to
$225.3 million, or $40.60 book value per share, at September
30, 2023 and $218.6 million, or $38.35 book value per share, a
year ago. Tangible book value per share* was $39.68 at
December 31, 2023, compared to $37.72 at September 30, 2023,
and $35.55 per share a year ago. The increase in shareholders’
equity in the fourth quarter of 2023 as compared to the third
quarter of 2023 was largely the result of earnings of
$6.6 million and an increase in the fair value of the
available for sale securities portfolio, which increased $9.1
million, net of tax, which were only partially offset by dividends
paid of $3.3 million and repurchases of common stock of $2.5
million. The Company purchased 55,786 shares of common stock in the
fourth quarter of 2023 at an average cost of $43.34 per share and
has 76,327 shares remaining under the current share repurchase
program as of December 31, 2023. Tangible common equity to
tangible assets* was 7.84% as of December 31, 2023. Tangible
common equity to tangible common assets, excluding the impact of
the fair value of the available for sale securities portfolio*, was
8.41% as of December 31, 2023, compared to 8.42% as of
September 30, 2023 and 8.67% as of December 31, 2022. Northrim
continues to maintain capital levels in excess of the requirements
to be categorized as “well-capitalized” with Tier 1 Capital to Risk
Adjusted Assets of 11.43% at December 31, 2023, compared to
11.67% at September 30, 2023, and 12.81% at December 31, 2022.
Asset Quality
Northrim believes it has a consistent lending
approach throughout the economic cycles, which emphasizes
appropriate loan-to-value ratios, adequate debt coverage ratios,
and competent management.
Nonperforming assets (“NPAs”) net of government
guarantees were $5.8 million at December 31, 2023, up
from $5.2 million at September 30, 2023 and down from
$6.4 million a year ago. Of the NPAs at December 31,
2023, $3.5 million, or 61% are nonaccrual loans related to three
commercial relationships.
Net adversely classified loans were
$7.1 million at December 31, 2023, as compared to
$7.3 million at September 30, 2023, and $7.6 million a
year ago. Adversely classified loans are loans that Northrim has
classified as substandard, doubtful, and loss, net of government
guarantees. Net loan charge-offs were $96,000 in the fourth quarter
of 2023, compared to net loan recoveries of $96,000 in the third
quarter of 2023, and net loan recoveries of $87,000 in the fourth
quarter of 2022.
The Company adopted Accounting Standards Update
2022-02, Financial Instruments - Credit Losses (Topic 326):
Troubled Debt Restructurings and Vintage Disclosures ("ASU
2022-02") on January 1, 2023. The amendments in ASU 2022-02
eliminate the accounting guidance for troubled debt restructurings
by creditors while enhancing disclosure requirements for certain
loan modifications by creditors when a borrower is experiencing
financial difficulty. Northrim had eight loan modifications to
borrowers experiencing financial difficulty totaling $4.0 million,
net of government guarantees in the fourth quarter of 2023.
Northrim had $123.3 million, or 7% of total
portfolio loans, in the Healthcare sector; $100.4 million, or 6% of
portfolio loans, in the Tourism sector; $84.2 million, or 5% in the
Accommodations sector; $75.0 million, or 4% in the Fishing sector;
$72.8 million, or 4% in Retail loans; $63.4 million, or 4% of
portfolio loans, in the Aviation (non-tourism) sector; and $52.2
million, or 3% in the Restaurants and Breweries sector as of
December 31, 2023.
Northrim estimates that $96.1 million, or
approximately 5% of portfolio loans, had direct exposure to the oil
and gas industry in Alaska, as of December 31, 2023, and $2.0
million of these loans are adversely classified. As of
December 31, 2023, Northrim has an additional $38.6 million in
unfunded commitments to companies with direct exposure to the oil
and gas industry in Alaska, and none of these unfunded commitments
are considered to be adversely classified loans. Northrim defines
direct exposure to the oil and gas sector as loans to borrowers
that provide oilfield services and other companies that have been
identified as significantly reliant upon activity in Alaska related
to the oil and gas industry, such as lodging, equipment rental,
transportation and other logistics services specific to this
industry.
About Northrim BanCorp
Northrim BanCorp, Inc. is the parent company of
Northrim Bank, an Alaska-based community bank with 19 branches in
Anchorage, the Matanuska Valley, Soldotna, Juneau, Fairbanks,
Ketchikan, Sitka, Kodiak, and Nome, and a loan production office in
Homer, serving 90% of Alaska’s population; and an asset based
lending division in Washington; and a wholly-owned mortgage
brokerage company, Residential Mortgage Holding Company, LLC.
Northrim Bank differentiates itself with its detailed knowledge of
Alaska’s economy and its “Customer First Service” philosophy.
Pacific Wealth Advisors, LLC is an affiliated company of Northrim
BanCorp.
www.northrim.com
Forward-Looking Statement
This release may contain “forward-looking
statements” as that term is defined for purposes of Section 21E of
the Securities Exchange Act of 1934, as amended. These statements
are, in effect, management’s attempt to predict future events, and
thus are subject to various risks and uncertainties. Readers should
not place undue reliance on forward-looking statements, which
reflect management’s views only as of the date hereof. All
statements, other than statements of historical fact, regarding our
financial position, business strategy, management’s plans and
objectives for future operations are forward-looking statements.
When used in this report, the words “anticipate,” “believe,”
“estimate,” “expect,” and “intend” and words or phrases of similar
meaning, as they relate to Northrim and its management are intended
to help identify forward-looking statements. Although we believe
that management’s expectations as reflected in forward-looking
statements are reasonable, we cannot assure readers that those
expectations will prove to be correct. Forward-looking statements,
are subject to various risks and uncertainties that may cause our
actual results to differ materially and adversely from our
expectations as indicated in the forward-looking statements. These
risks and uncertainties include: potential further increases in
interest rates; the value of securities held in our investment
portfolio; the impact of the results of government initiatives on
the regulatory landscape, natural resource extraction industries,
and capital markets; the impact of declines in the value of
commercial and residential real estate markets, high unemployment
rates, inflationary pressures and slowdowns in economic growth;
changes in banking regulation or actions by bank regulators,
including, the continued availability of the Federal Reserve Bank's
Bank Term Funding Program; inflation, supply-chain constraints, and
potential geopolitical instability, including the wars in Ukraine
and the Middle East; financial stress on borrowers (consumers and
businesses) as a result of higher rates or an uncertain economic
environment; the general condition of, and changes in, the Alaska
economy; our ability to maintain or expand our market share or net
interest margin; the sufficiency of our provision for credit losses
and the accuracy of the assumptions or estimates used in preparing
our financial statements, including those related to current
expected credit losses accounting guidance; our ability to maintain
asset quality; our ability to implement our marketing and growth
strategies; our ability to identify and address cyber-security
risks, including security breaches, “denial of service attacks,”
“hacking,” and identity theft; disease, outbreaks, such as the
COVID-19 pandemic, or similar health threats and measures
implemented to combat them; and our ability to execute our business
plan. Further, actual results may be affected by competition on
price and other factors with other financial institutions; customer
acceptance of new products and services; the regulatory environment
in which we operate; and general trends in the local, regional and
national banking industry and economy. In addition, there are risks
inherent in the banking industry relating to collectability of
loans and changes in interest rates. Many of these risks, as well
as other risks that may have a material adverse impact on our
operations and business, are identified in the “Risk Factors”
section of our Annual Report on Form 10-K for the fiscal year ended
December 31, 2022, and from time to time are disclosed in our other
filings with the Securities and Exchange Commission. However, you
should be aware that these factors are not an exhaustive list, and
you should not assume these are the only factors that may cause our
actual results to differ from our expectations. These
forward-looking statements are made only as of the date of this
release, and Northrim does not undertake any obligation to release
revisions to these forward-looking statements to reflect events or
conditions after the date of this release.
References:
www.sba.gov/ak
https://www.bea.gov/
http://almis.labor.state.ak.us/
http://www.tax.alaska.gov/programs/oil/prevailing/ans.aspx
http://www.tax.state.ak.us/
www.mba.org
https://www.alaskarealestate.com/MLSMember/RealEstateStatistics.aspx
https://www.capitaliq.spglobal.com/web/client?auth=inherit&overridecdc=1&#markets/indexFinancials
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
Statement |
|
|
|
|
|
|
|
(Dollars in thousands, except
per share data) |
|
Three Months Ended |
|
Year-to-date |
(Unaudited) |
|
December 31, |
September 30, |
December 31, |
|
December 31, |
December 31, |
|
|
|
2023 |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
Interest Income: |
|
|
|
|
|
|
|
Interest and fees on loans |
|
$29,508 |
|
$29,097 |
|
$22,580 |
|
$108,612 |
|
$82,785 |
|
Interest on investments |
|
|
4,677 |
|
|
4,727 |
|
|
4,380 |
|
|
18,695 |
|
|
11,878 |
|
Interest on deposits in banks |
|
|
1,743 |
|
|
584 |
|
|
2,758 |
|
|
4,644 |
|
|
5,665 |
|
Total interest income |
|
|
35,928 |
|
|
34,408 |
|
|
29,718 |
|
|
131,951 |
|
|
100,328 |
|
Interest Expense: |
|
|
|
|
|
|
|
Interest expense on deposits |
|
|
8,676 |
|
|
7,138 |
|
|
2,247 |
|
|
26,511 |
|
|
4,485 |
|
Interest expense on borrowings |
|
|
520 |
|
|
920 |
|
|
184 |
|
|
2,184 |
|
|
728 |
|
Total interest expense |
|
|
9,196 |
|
|
8,058 |
|
|
2,431 |
|
|
28,695 |
|
|
5,213 |
|
Net interest income |
|
|
26,732 |
|
|
26,350 |
|
|
27,287 |
|
|
103,256 |
|
|
95,115 |
|
|
|
|
|
|
|
|
|
Provision (benefit) for credit
losses |
|
|
885 |
|
|
1,190 |
|
|
1,886 |
|
|
3,842 |
|
|
1,846 |
|
Net interest income after provision (benefit) for loan losses |
|
|
25,847 |
|
|
25,160 |
|
|
25,401 |
|
|
99,414 |
|
|
93,269 |
|
|
|
|
|
|
|
|
|
Other Operating Income: |
|
|
|
|
|
|
|
Mortgage banking income |
|
|
2,437 |
|
|
4,405 |
|
|
2,956 |
|
|
12,763 |
|
|
21,572 |
|
Purchased receivable income |
|
|
1,307 |
|
|
1,180 |
|
|
473 |
|
|
4,482 |
|
|
2,002 |
|
Bankcard fees |
|
|
946 |
|
|
1,022 |
|
|
974 |
|
|
3,862 |
|
|
3,697 |
|
Unrealized gain (loss) on marketable equity securities |
|
|
565 |
|
|
12 |
|
|
81 |
|
|
120 |
|
|
(1,119 |
) |
Service charges on deposit accounts |
|
|
532 |
|
|
550 |
|
|
403 |
|
|
2,044 |
|
|
1,611 |
|
Commercial servicing revenue |
|
|
203 |
|
|
87 |
|
|
1,186 |
|
|
554 |
|
|
1,628 |
|
Keyman insurance proceeds |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
2,002 |
|
Other income |
|
|
495 |
|
|
746 |
|
|
702 |
|
|
2,550 |
|
|
2,684 |
|
Total other operating income |
|
|
6,485 |
|
|
8,002 |
|
|
6,775 |
|
|
26,375 |
|
|
34,077 |
|
|
|
|
|
|
|
|
|
Other Operating Expense: |
|
|
|
|
|
|
|
Salaries and other personnel expense |
|
|
15,417 |
|
|
15,657 |
|
|
14,155 |
|
|
61,741 |
|
|
58,172 |
|
Data processing expense |
|
|
2,500 |
|
|
2,589 |
|
|
2,309 |
|
|
9,821 |
|
|
8,926 |
|
Occupancy expense |
|
|
1,783 |
|
|
1,857 |
|
|
1,731 |
|
|
7,394 |
|
|
6,915 |
|
Marketing expense |
|
|
933 |
|
|
499 |
|
|
984 |
|
|
2,929 |
|
|
2,747 |
|
Professional and outside services |
|
|
802 |
|
|
803 |
|
|
669 |
|
|
3,128 |
|
|
2,993 |
|
Insurance expense |
|
|
675 |
|
|
640 |
|
|
427 |
|
|
2,519 |
|
|
2,054 |
|
Intangible asset amortization expense |
|
|
6 |
|
|
4 |
|
|
6 |
|
|
17 |
|
|
25 |
|
OREO expense, net rental income and gains on sale |
|
|
(28 |
) |
|
(784 |
) |
|
384 |
|
|
(794 |
) |
|
500 |
|
Other operating expense |
|
|
1,905 |
|
|
1,631 |
|
|
1,561 |
|
|
7,426 |
|
|
6,520 |
|
Total other operating expense |
|
|
23,993 |
|
|
22,896 |
|
|
22,226 |
|
|
94,181 |
|
|
88,852 |
|
|
|
|
|
|
|
|
|
Income before provision for income taxes |
|
|
8,339 |
|
|
10,266 |
|
|
9,950 |
|
|
31,608 |
|
|
38,494 |
|
Provision for income taxes |
|
|
1,726 |
|
|
1,892 |
|
|
1,355 |
|
|
6,214 |
|
|
7,753 |
|
Net income |
|
$6,613 |
|
$8,374 |
|
$8,595 |
|
$25,394 |
|
$30,741 |
|
|
|
|
|
|
|
|
|
Basic EPS |
|
$1.19 |
|
$1.50 |
|
$1.51 |
|
$4.53 |
|
$5.33 |
|
Diluted EPS |
|
$1.19 |
|
$1.48 |
|
$1.48 |
|
$4.49 |
|
$5.27 |
|
Weighted average common shares outstanding, basic |
|
|
5,513,041 |
|
|
5,569,238 |
|
|
5,690,354 |
|
|
5,601,471 |
|
|
5,765,088 |
|
Weighted average shares outstanding, diluted |
|
|
5,578,491 |
|
|
5,624,906 |
|
|
5,769,415 |
|
|
5,661,460 |
|
|
5,829,412 |
|
|
|
|
|
|
Balance
Sheet |
|
|
|
|
(Dollars in thousands) |
|
|
|
|
(Unaudited) |
|
December 31, |
September 30, |
December 31, |
|
|
|
2023 |
|
|
2023 |
|
|
2022 |
|
|
|
|
|
|
Assets: |
|
|
|
|
Cash and due from banks |
|
$27,457 |
|
$31,276 |
|
$27,747 |
|
Interest bearing deposits in other banks |
|
|
91,073 |
|
|
79,952 |
|
|
231,603 |
|
Investment securities available for sale, at fair value |
|
|
637,936 |
|
|
652,150 |
|
|
677,029 |
|
Investment securities held to maturity |
|
|
36,750 |
|
|
36,750 |
|
|
36,750 |
|
Marketable equity securities, at fair value |
|
|
13,153 |
|
|
10,615 |
|
|
10,740 |
|
Investment in Federal Home Loan Bank stock |
|
|
2,980 |
|
|
6,334 |
|
|
3,816 |
|
Loans held for sale |
|
|
31,974 |
|
|
63,151 |
|
|
27,538 |
|
Portfolio loans |
|
|
1,789,497 |
|
|
1,720,091 |
|
|
1,501,785 |
|
Allowance for credit losses, loans |
|
|
(17,270 |
) |
|
(16,491 |
) |
|
(13,838 |
) |
Net portfolio loans |
|
|
1,772,227 |
|
|
1,703,600 |
|
|
1,487,947 |
|
Purchased receivables, net |
|
|
36,842 |
|
|
34,578 |
|
|
19,994 |
|
Mortgage servicing rights, at fair value |
|
|
19,564 |
|
|
19,396 |
|
|
18,635 |
|
Other real estate owned, net |
|
|
— |
|
|
150 |
|
|
— |
|
Premises and equipment, net |
|
|
40,693 |
|
|
40,920 |
|
|
37,821 |
|
Operating lease right-of-use assets |
|
|
9,092 |
|
|
9,673 |
|
|
9,868 |
|
Goodwill and intangible assets |
|
|
15,967 |
|
|
15,973 |
|
|
15,984 |
|
Other assets |
|
|
71,789 |
|
|
85,671 |
|
|
68,846 |
|
Total assets |
|
$2,807,497 |
|
$2,790,189 |
|
$2,674,318 |
|
|
|
|
|
|
Liabilities: |
|
|
|
|
Demand deposits |
|
$749,683 |
|
$764,647 |
|
$797,434 |
|
Interest-bearing demand |
|
|
927,291 |
|
|
875,814 |
|
|
767,686 |
|
Savings deposits |
|
|
255,338 |
|
|
265,799 |
|
|
320,917 |
|
Money market deposits |
|
|
221,492 |
|
|
230,814 |
|
|
308,317 |
|
Time deposits |
|
|
331,251 |
|
|
290,856 |
|
|
192,857 |
|
Total deposits |
|
|
2,485,055 |
|
|
2,427,930 |
|
|
2,387,211 |
|
Other borrowings |
|
|
13,675 |
|
|
63,781 |
|
|
14,095 |
|
Junior subordinated debentures |
|
|
10,310 |
|
|
10,310 |
|
|
10,310 |
|
Operating lease liabilities |
|
|
9,092 |
|
|
9,673 |
|
|
9,865 |
|
Other liabilities |
|
|
54,647 |
|
|
53,236 |
|
|
34,208 |
|
Total liabilities |
|
|
2,572,779 |
|
|
2,564,930 |
|
|
2,455,689 |
|
|
|
|
|
|
Shareholders' Equity: |
|
|
|
|
Total shareholders' equity |
|
|
234,718 |
|
|
225,259 |
|
|
218,629 |
|
Total liabilities and shareholders' equity |
|
$2,807,497 |
|
$2,790,189 |
|
$2,674,318 |
|
|
|
|
|
|
Additional Financial Information(Dollars in
thousands)(Unaudited)
Composition of Portfolio Loans |
|
December 31, 2023 |
|
September 30, 2023 |
|
June 30, 2023 |
|
March 31, 2023 |
|
December 31, 2022 |
|
Balance |
% of total |
|
Balance |
% of total |
|
Balance |
% of total |
|
Balance |
% of total |
|
Balance |
% of total |
Commercial loans |
$676,751 |
|
38 |
% |
|
$674,435 |
|
39 |
% |
|
$666,949 |
|
40 |
% |
|
$608,499 |
|
39 |
% |
|
$600,292 |
|
41 |
% |
SBA Paycheck Protection Program loans |
|
2,875 |
|
— |
% |
|
|
3,287 |
|
— |
% |
|
|
3,723 |
|
— |
% |
|
|
4,375 |
|
— |
% |
|
|
7,331 |
|
— |
% |
CRE owner occupied loans |
|
267,264 |
|
15 |
% |
|
|
259,010 |
|
15 |
% |
|
|
274,716 |
|
16 |
% |
|
|
254,911 |
|
17 |
% |
|
|
255,470 |
|
17 |
% |
CRE nonowner occupied
loans |
|
465,358 |
|
26 |
% |
|
|
460,878 |
|
27 |
% |
|
|
432,679 |
|
27 |
% |
|
|
432,679 |
|
28 |
% |
|
|
438,680 |
|
29 |
% |
Construction loans |
|
161,868 |
|
9 |
% |
|
|
135,706 |
|
8 |
% |
|
|
115,522 |
|
7 |
% |
|
|
119,641 |
|
8 |
% |
|
|
125,739 |
|
8 |
% |
Consumer loans |
|
223,937 |
|
12 |
% |
|
|
195,061 |
|
11 |
% |
|
|
173,584 |
|
10 |
% |
|
|
123,707 |
|
8 |
% |
|
|
82,883 |
|
5 |
% |
Subtotal |
|
1,798,053 |
|
|
|
|
1,728,377 |
|
|
|
|
1,667,173 |
|
|
|
|
1,543,812 |
|
|
|
|
1,510,395 |
|
|
Unearned loan fees, net |
|
(8,556 |
) |
|
|
|
(8,286 |
) |
|
|
|
(7,934 |
) |
|
|
|
(8,625 |
) |
|
|
|
(8,610 |
) |
|
Total portfolio loans |
$1,789,497 |
|
|
|
$1,720,091 |
|
|
|
$1,659,239 |
|
|
|
$1,535,187 |
|
|
|
$1,501,785 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Composition of Deposits |
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2023 |
|
September 30, 2023 |
|
June 30, 2023 |
|
March 31, 2023 |
|
December 31, 2022 |
|
Balance |
% of total |
|
Balance |
% of total |
|
Balance |
% of total |
|
Balance |
% of total |
|
Balance |
% of total |
Demand deposits |
$749,683 |
31 |
% |
|
$764,647 |
31 |
% |
|
$711,390 |
31 |
% |
|
$767,772 |
34 |
% |
|
$797,434 |
34 |
% |
Interest-bearing demand |
|
927,291 |
37 |
% |
|
|
875,814 |
36 |
% |
|
|
795,128 |
35 |
% |
|
|
717,910 |
31 |
% |
|
|
767,686 |
32 |
% |
Savings deposits |
|
255,338 |
10 |
% |
|
|
265,799 |
11 |
% |
|
|
275,602 |
12 |
% |
|
|
292,857 |
13 |
% |
|
|
320,917 |
13 |
% |
Money market deposits |
|
221,492 |
9 |
% |
|
|
230,814 |
10 |
% |
|
|
232,698 |
10 |
% |
|
|
262,478 |
11 |
% |
|
|
308,317 |
13 |
% |
Time deposits |
|
331,251 |
13 |
% |
|
|
290,856 |
12 |
% |
|
|
287,493 |
12 |
% |
|
|
255,256 |
11 |
% |
|
|
192,857 |
8 |
% |
Total deposits |
$2,485,055 |
|
|
$2,427,930 |
|
|
$2,302,311 |
|
|
$2,296,273 |
|
|
$2,387,211 |
|
|
Additional Financial Information(Dollars in
thousands)(Unaudited)
Asset
Quality |
December 31, |
|
September 30, |
|
December 31, |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2022 |
|
|
Nonaccrual loans |
$6,069 |
|
|
$6,492 |
|
|
$7,076 |
|
|
Loans 90 days past due and accruing |
|
— |
|
|
|
28 |
|
|
|
— |
|
|
Total nonperforming loans |
|
6,069 |
|
|
|
6,520 |
|
|
|
7,076 |
|
|
Nonperforming loans guaranteed by government |
|
(1,067 |
) |
|
|
(1,455 |
) |
|
|
(646 |
) |
|
Net nonperforming loans |
|
5,002 |
|
|
|
5,065 |
|
|
|
6,430 |
|
|
Other real estate owned |
|
— |
|
|
|
150 |
|
|
|
— |
|
|
Nonperforming purchased receivables |
|
808 |
|
|
|
— |
|
|
|
— |
|
|
Net nonperforming assets |
$5,810 |
|
|
$5,215 |
|
|
$6,430 |
|
|
Nonperforming loans, net of government guarantees / portfolio
loans |
|
0.28 |
|
% |
|
0.29 |
|
% |
|
0.43 |
|
% |
Nonperforming loans, net of government guarantees / portfolio
loans, net of government guarantees |
|
0.30 |
|
% |
|
0.31 |
|
% |
|
0.46 |
|
% |
Nonperforming assets, net of government guarantees / total
assets |
|
0.21 |
|
% |
|
0.19 |
|
% |
|
0.24 |
|
% |
Nonperforming assets, net of government guarantees / total assets
net of government guarantees |
|
0.21 |
|
% |
|
0.19 |
|
% |
|
0.25 |
|
% |
|
|
|
|
|
|
|
Adversely classified loans,
net of government guarantees |
$7,057 |
|
|
$7,250 |
|
|
$7,581 |
|
|
Special mention loans, net of
government guarantees |
$6,580 |
|
|
$5,457 |
|
|
$4,760 |
|
|
Loans 30-89 days past due and
accruing, net of government guarantees / portfolio loans |
|
0.03 |
|
% |
|
— |
|
% |
|
0.01 |
|
% |
Loans 30-89 days past due and
accruing, net of government guarantees / portfolio loans, net of
government guarantees |
|
0.03 |
|
% |
|
— |
|
% |
|
0.01 |
|
% |
|
|
|
|
|
|
|
Allowance for credit losses /
portfolio loans |
|
0.97 |
|
% |
|
0.96 |
|
% |
|
0.92 |
|
% |
Allowance for credit losses /
portfolio loans, net of government guarantees |
|
1.02 |
|
% |
|
1.02 |
|
% |
|
0.99 |
|
% |
Allowance for credit losses /
nonperforming loans, net of government guarantees |
|
345 |
|
% |
|
326 |
|
% |
|
215 |
|
% |
|
|
|
|
|
|
|
Gross loan charge-offs for the
quarter |
$281 |
|
|
$91 |
|
|
|
$— |
|
|
Gross loan recoveries for the
quarter |
($185 |
) |
|
($187 |
) |
|
($87 |
) |
|
Net loan (recoveries)
charge-offs for the quarter |
$96 |
|
|
($96 |
) |
|
($87 |
) |
|
Net loan (recoveries)
charge-offs year-to-date |
($38 |
) |
|
($134 |
) |
|
($1,127 |
) |
|
Net loan (recoveries)
charge-offs for the quarter / average loans, for the quarter |
|
0.01 |
|
% |
|
(0.01 |
) |
% |
|
(0.01 |
) |
% |
Net loan (recoveries)
charge-offs year-to-date / average loans, year-to-date
annualized |
|
— |
|
% |
|
(0.01 |
) |
% |
|
(0.08 |
) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Additional Financial Information(Dollars in
thousands)(Unaudited)
Nonperforming Assets Rollforward |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at September 30, 2023 |
Additions this quarter |
Payments this quarter |
Writedowns/Charge-offsthis quarter |
Transfers toOREO/REPO |
Transfers toPerforming Statusthis quarter |
Sales this quarter |
Balance at December 31, 2023 |
Commercial loans |
$4,792 |
|
$426 |
|
($837 |
) |
($197 |
) |
|
$— |
|
$— |
|
$— |
|
$4,184 |
|
Commercial real estate |
|
1,482 |
|
|
— |
|
|
(34 |
) |
|
— |
|
|
— |
|
— |
|
— |
|
|
1,448 |
|
Construction loans |
|
109 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
— |
|
— |
|
|
109 |
|
Consumer loans |
|
137 |
|
|
308 |
|
|
(33 |
) |
|
(84 |
) |
|
— |
|
— |
|
— |
|
|
328 |
|
Non-performing loans
guaranteed by government |
|
(1,455 |
) |
|
(111 |
) |
|
499 |
|
|
— |
|
|
— |
|
— |
|
— |
|
|
(1,067 |
) |
Total non-performing loans |
|
5,065 |
|
|
623 |
|
|
(405 |
) |
|
(281 |
) |
|
— |
|
— |
|
— |
|
|
5,002 |
|
Other real estate owned |
|
150 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
— |
|
(150 |
) |
|
— |
|
Nonperforming purchased
receivables |
|
— |
|
|
808 |
|
|
— |
|
|
— |
|
|
— |
|
— |
|
— |
|
|
808 |
|
Total non-performing assets, net of government guarantees |
$5,215 |
|
$1,431 |
|
($405 |
) |
($281 |
) |
|
$— |
|
$— |
($150 |
) |
$5,810 |
|
|
The following table details loan charge-offs, by
industry:
Loan
Charge-offs by Industry |
|
|
|
|
|
Three Months Ended |
|
December 31,2023 |
September 30,2023 |
June 30, 2023 |
March 31,2023 |
December 31,2022 |
Charge-offs: |
|
|
|
|
|
Geophysical surveying and mapping services |
|
$197 |
|
$— |
|
$— |
|
$— |
|
$— |
Offices of physicians |
|
— |
|
91 |
|
— |
|
— |
|
— |
Residential intellectual &
developmental disability facility |
|
— |
|
— |
|
49 |
|
— |
|
— |
Consumer |
|
84 |
|
— |
|
— |
|
14 |
|
— |
Total charge-offs |
|
$281 |
|
$91 |
|
$49 |
|
$14 |
|
$— |
|
Additional Financial Information(Dollars in
thousands)(Unaudited)
Average Balances,
Yields, and Rates |
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
December 31, 2023 |
|
September 30, 2023 |
|
December 31, 2022 |
|
|
Average |
|
|
Average |
|
|
Average |
|
Average |
Tax Equivalent |
|
Average |
Tax Equivalent |
|
Average |
Tax Equivalent |
|
Balance |
Yield/Rate |
|
Balance |
Yield/Rate |
|
Balance |
Yield/Rate |
Assets |
|
|
|
|
|
|
|
|
Interest bearing deposits in
other banks |
$126,174 |
|
5.40 |
% |
|
$42,273 |
|
5.39 |
% |
|
$294,267 |
|
3.67 |
% |
Portfolio investments |
|
690,659 |
|
2.48 |
% |
|
|
715,767 |
|
2.43 |
% |
|
|
712,842 |
|
2.30 |
% |
Loans held for sale |
|
45,732 |
|
6.55 |
% |
|
|
62,350 |
|
6.34 |
% |
|
|
40,186 |
|
5.52 |
% |
Portfolio loans |
|
1,749,732 |
|
6.55 |
% |
|
|
1,695,736 |
|
6.61 |
% |
|
|
1,466,567 |
|
5.98 |
% |
Total interest-earning assets |
|
2,612,297 |
|
5.51 |
% |
|
|
2,516,126 |
|
5.48 |
% |
|
|
2,513,862 |
|
4.74 |
% |
Nonearning assets |
|
214,934 |
|
|
|
|
205,770 |
|
|
|
|
182,884 |
|
|
Total assets |
$2,827,231 |
|
|
|
$2,721,896 |
|
|
|
$2,696,746 |
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity |
|
|
|
|
|
|
|
|
Interest-bearing deposits |
$1,724,409 |
|
2.00 |
% |
|
$1,619,478 |
|
1.75 |
% |
|
$1,579,845 |
|
0.56 |
% |
Borrowings |
|
47,964 |
|
4.25 |
% |
|
|
76,681 |
|
4.73 |
% |
|
|
24,470 |
|
2.92 |
% |
Total interest-bearing liabilities |
|
1,772,373 |
|
2.06 |
% |
|
|
1,696,159 |
|
1.88 |
% |
|
|
1,604,315 |
|
0.60 |
% |
|
|
|
|
|
|
|
|
|
Noninterest-bearing demand
deposits |
|
760,566 |
|
|
|
|
747,147 |
|
|
|
|
831,841 |
|
|
Other liabilities |
|
63,321 |
|
|
|
|
52,078 |
|
|
|
|
43,500 |
|
|
Shareholders' equity |
|
230,971 |
|
|
|
|
226,512 |
|
|
|
|
217,090 |
|
|
Total liabilities and shareholders' equity |
$2,827,231 |
|
|
|
$2,721,896 |
|
|
|
$2,696,746 |
|
|
Net spread |
|
3.45 |
% |
|
|
3.60 |
% |
|
|
4.14 |
% |
NIM |
|
4.06 |
% |
|
|
4.15 |
% |
|
|
4.31 |
% |
NIMTE* |
|
4.12 |
% |
|
|
4.21 |
% |
|
|
4.36 |
% |
Cost of funds |
|
1.44 |
% |
|
|
1.31 |
% |
|
|
0.40 |
% |
Average portfolio loans to average interest-earning assets |
|
66.98 |
% |
|
|
|
67.39 |
% |
|
|
|
58.34 |
% |
|
Average portfolio loans to average total deposits |
|
70.41 |
% |
|
|
|
71.65 |
% |
|
|
|
60.81 |
% |
|
Average non-interest deposits to average total deposits |
|
30.61 |
% |
|
|
|
31.57 |
% |
|
|
|
34.49 |
% |
|
Average interest-earning assets to average interest-bearing
liabilities |
|
147.39 |
% |
|
|
|
148.34 |
% |
|
|
|
156.69 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The components of the change in NIMTE* are detailed in the table
below:
|
4Q23 vs. 3Q23 |
|
|
4Q23 vs. 4Q22 |
|
Nonaccrual interest
adjustments |
(0.01) |
% |
|
(0.02) |
% |
Impact of SBA Paycheck
Protection Program loans |
— |
% |
|
(0.01) |
% |
Interest rates and loan
fees |
(0.17) |
% |
|
(0.41 |
)% |
Volume and mix of
interest-earning assets and liabilities |
0.09 |
% |
|
0.20 |
% |
Change in NIMTE* |
(0.09) |
% |
|
(0.24) |
% |
|
Additional Financial Information(Dollars in
thousands)(Unaudited)
Average Balances,
Yields, and Rates |
|
|
|
|
|
|
Year-to-date |
|
December 31, 2023 |
|
December 31, 2022 |
|
|
Average |
|
|
Average |
|
Average |
Tax Equivalent |
|
Average |
Tax Equivalent |
|
Balance |
Yield/Rate |
|
Balance |
Yield/Rate |
Assets |
|
|
|
|
|
Interest bearing deposits in
other banks |
$91,161 |
|
5.02 |
% |
|
$383,939 |
|
1.46 |
% |
Portfolio investments |
|
715,367 |
|
2.43 |
% |
|
|
618,782 |
|
1.84 |
% |
Loans held for sale |
|
41,769 |
|
6.19 |
% |
|
|
51,537 |
|
4.34 |
% |
Portfolio loans |
|
1,643,943 |
|
6.49 |
% |
|
|
1,415,125 |
|
5.71 |
% |
Total interest-earning assets |
|
2,492,240 |
|
5.36 |
% |
|
|
2,469,383 |
|
4.10 |
% |
Nonearning assets |
|
198,107 |
|
|
|
|
171,625 |
|
|
Total assets |
$2,690,347 |
|
|
|
$2,641,008 |
|
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity |
|
|
|
|
|
Interest-bearing deposits |
$1,614,386 |
|
1.64 |
% |
|
$1,534,334 |
|
0.29 |
% |
Borrowings |
|
51,038 |
|
4.24 |
% |
|
|
24,623 |
|
2.92 |
% |
Total interest-bearing liabilities |
|
1,665,424 |
|
1.72 |
% |
|
|
1,558,957 |
|
0.33 |
% |
|
|
|
|
|
|
Noninterest-bearing demand
deposits |
|
749,859 |
|
|
|
|
820,547 |
|
|
Other liabilities |
|
47,820 |
|
|
|
|
36,731 |
|
|
Shareholders' equity |
|
227,244 |
|
|
|
|
224,773 |
|
|
Total liabilities and shareholders' equity |
$2,690,347 |
|
|
|
$2,641,008 |
|
|
Net spread |
|
3.64 |
% |
|
|
3.77 |
% |
NIM |
|
4.14 |
% |
|
|
3.85 |
% |
NIMTE* |
|
4.21 |
% |
|
|
3.89 |
% |
Cost of funds |
|
1.19 |
% |
|
|
0.22 |
% |
Average portfolio loans to average interest-earning assets |
|
65.96 |
% |
|
|
|
57.31 |
% |
|
Average portfolio loans to average total deposits |
|
69.53 |
% |
|
|
|
60.09 |
% |
|
Average non-interest deposits to average total deposits |
|
31.72 |
% |
|
|
|
34.84 |
% |
|
Average interest-earning assets to average interest-bearing
liabilities |
|
149.65 |
% |
|
|
|
158.40 |
% |
|
|
|
|
|
|
|
|
|
|
|
The components of the change in NIMTE* are detailed in the table
below:
|
YTD23 vs.YTD22 |
Nonaccrual interest adjustments |
(0.06) |
% |
Impact of SBA Paycheck
Protection Program loans |
(0.12) |
% |
Interest rates and loan
fees |
0.38 |
% |
Volume and mix of
interest-earning assets and liabilities |
0.12 |
% |
Change in NIMTE* |
0.32 |
% |
|
Additional Financial Information(Dollars in
thousands, except per share data)(Unaudited)
Capital Data (At
quarter end) |
|
|
|
|
|
|
|
December 31, 2023 |
|
September 30, 2023 |
|
December 31, 2022 |
|
Book value per share |
$42.57 |
|
|
$40.60 |
|
|
$38.35 |
|
|
Tangible book value per
share* |
$39.68 |
|
|
$37.72 |
|
|
$35.55 |
|
|
Total shareholders' equity/Total assets |
|
8.36 |
|
% |
|
8.07 |
|
% |
|
8.18 |
|
% |
Tangible common
equity/Tangible assets* |
|
7.84 |
|
% |
|
7.54 |
|
% |
|
7.62 |
|
% |
Tier 1 capital / Risk adjusted
assets |
|
11.43 |
|
% |
|
11.67 |
|
% |
|
12.81 |
|
% |
Total capital / Risk adjusted
assets |
|
12.35 |
|
% |
|
12.58 |
|
% |
|
13.64 |
|
% |
Tier 1 capital / Average
assets |
|
8.72 |
|
% |
|
9.02 |
|
% |
|
9.01 |
|
% |
Common shares outstanding |
|
5,513,459 |
|
|
|
5,548,436 |
|
|
|
5,700,728 |
|
|
Unrealized gain on AFS debt
securities, net of income taxes |
($17,415 |
) |
|
($26,526 |
) |
|
($30,121 |
) |
|
Unrealized (loss) on
derivatives and hedging activities, net of income taxes |
$978 |
|
|
$1,485 |
|
|
$1,040 |
|
|
Profitability Ratios |
|
|
|
|
|
|
|
|
|
|
|
December 31,2023 |
|
September 30,2023 |
|
June 30, 2023 |
|
March 31,2023 |
|
December 31,2022 |
|
For the quarter: |
|
|
|
|
|
|
|
|
|
|
NIM |
4.06 |
% |
4.15 |
% |
4.14 |
% |
4.22 |
% |
4.31 |
% |
NIMTE* |
4.12 |
% |
4.21 |
% |
4.21 |
% |
4.30 |
% |
4.36 |
% |
Efficiency ratio |
72.21 |
% |
66.64 |
% |
74.03 |
% |
78.51 |
% |
65.23 |
% |
Return on average assets |
0.93 |
% |
1.22 |
% |
0.85 |
% |
0.76 |
% |
1.26 |
% |
Return on average equity |
11.36 |
% |
14.67 |
% |
9.85 |
% |
8.73 |
% |
15.71 |
% |
|
December 31, 2023 |
|
December 31, 2022 |
|
Year-to-date: |
|
|
|
|
NIM |
4.14 |
% |
3.85 |
% |
NIMTE* |
4.21 |
% |
3.89 |
% |
Efficiency ratio |
72.64 |
% |
68.76 |
% |
Return on average assets |
0.94 |
% |
1.16 |
% |
Return on average equity |
11.17 |
% |
13.68 |
% |
|
|
|
|
|
*Non-GAAP Financial Measures (Dollars and
shares in thousands, except per share data)(Unaudited)
Non-GAAP financial measures have inherent
limitations, are not required to be uniformly applied, and are not
audited. Although we believe these non-GAAP financial measures are
frequently used by stakeholders in the evaluation of the Company,
they have limitations as analytical tools and should not be
considered in isolation or as a substitute for analysis of results
as reported under GAAP.
Net interest margin on a tax equivalent
basis
Net interest margin on a tax equivalent basis
("NIMTE") is a non-GAAP performance measurement in which interest
income on non-taxable investments and loans is presented on a tax
equivalent basis using a combined federal and state statutory rate
of 28.43% in both 2023 and 2022. The most comparable GAAP measure
is net interest margin and the following table sets forth the
reconciliation of NIMTE to net interest margin.
|
Three Months Ended |
|
December 31, 2023 |
|
September 30, 2023 |
|
June 30, 2023 |
|
March 31, 2023 |
|
December 31, 2022 |
Net interest income |
$26,732 |
|
|
$26,350 |
|
|
$25,142 |
|
|
$25,032 |
|
|
$27,287 |
|
Divided by average interest-bearing assets |
|
2,612,297 |
|
|
|
2,516,126 |
|
|
|
2,434,611 |
|
|
|
2,403,570 |
|
|
|
2,513,862 |
|
Net interest margin
("NIM")2 |
|
4.06 |
% |
|
|
4.15 |
% |
|
|
4.14 |
% |
|
|
4.22 |
% |
|
|
4.31 |
% |
|
|
|
|
|
|
|
|
|
|
Net interest income |
$26,732 |
|
|
$26,350 |
|
|
$25,142 |
|
|
$25,032 |
|
|
$27,287 |
|
Plus: reduction in tax expense
related to tax-exempt interest income |
|
374 |
|
|
|
373 |
|
|
|
400 |
|
|
|
429 |
|
|
|
325 |
|
|
$27,106 |
|
|
$26,723 |
|
|
$25,542 |
|
|
$25,461 |
|
|
$27,612 |
|
Divided by average
interest-bearing assets |
|
2,612,297 |
|
|
|
2,516,126 |
|
|
|
2,434,611 |
|
|
|
2,403,570 |
|
|
|
2,513,862 |
|
NIMTE2 |
|
4.12 |
% |
|
|
4.21 |
% |
|
|
4.21 |
% |
|
|
4.30 |
% |
|
|
4.36 |
% |
|
Year-to-date |
|
December 31, 2023 |
|
December 31, 2022 |
Net interest income |
$103,256 |
|
|
$95,115 |
|
Divided by average interest-bearing assets |
|
2,492,240 |
|
|
|
2,469,383 |
|
Net interest margin
("NIM")3 |
|
4.14 |
% |
|
|
3.85 |
% |
|
|
|
|
Net interest income |
$103,256 |
|
|
$95,115 |
|
Plus: reduction in tax expense
related to tax-exempt interest income |
|
1,576 |
|
|
|
939 |
|
|
$104,832 |
|
|
$96,054 |
|
Divided by average
interest-bearing assets |
|
2,492,240 |
|
|
|
2,469,383 |
|
NIMTE3 |
|
4.21 |
% |
|
|
3.89 |
% |
|
2Calculated using actual days in the quarter divided by 365 for
the quarter ended in 2023 and 2022.
3Calculated using actual days in the year divided by 365 for
year-to-date period in 2023 and 2022.
*Non-GAAP Financial Measures (Dollars and
shares in thousands, except per share data)(Unaudited)
Tangible Book Value
Tangible book value is a non-GAAP measure
defined as shareholders' equity, less intangible assets, divided by
common shares outstanding. The most comparable GAAP measure is book
value per share and the following table sets forth the
reconciliation of tangible book value per share and book value per
share.
|
December 31, 2023 |
|
September 30, 2023 |
|
June 30, 2023 |
|
March 31, 2023 |
|
December 31, 2022 |
|
|
|
|
|
|
|
|
|
|
Total shareholders'
equity |
|
$234,718 |
|
|
$225,259 |
|
|
$221,336 |
|
|
$224,425 |
|
|
$218,629 |
Divided by common shares
outstanding |
|
5,513 |
|
|
5,548 |
|
|
5,611 |
|
|
5,673 |
|
|
5,701 |
Book value per share |
|
$42.57 |
|
|
$40.60 |
|
|
$39.45 |
|
|
$39.56 |
|
|
$38.35 |
|
December 31, 2023 |
|
September 30, 2023 |
|
June 30, 2023 |
|
March 31, 2023 |
|
December 31, 2022 |
|
|
|
|
|
|
|
|
|
|
Total shareholders'
equity |
|
$234,718 |
|
|
$225,259 |
|
|
$221,336 |
|
|
$224,425 |
|
|
$218,629 |
Less: goodwill and intangible
assets |
|
15,967 |
|
|
15,973 |
|
|
15,977 |
|
|
15,980 |
|
|
15,984 |
|
|
$218,751 |
|
|
$209,286 |
|
|
$205,359 |
|
|
$208,445 |
|
|
$202,645 |
Divided by common shares
outstanding |
|
5,513 |
|
|
5,548 |
|
|
5,611 |
|
|
5,673 |
|
|
5,701 |
Tangible book value per
share |
|
$39.68 |
|
|
$37.72 |
|
|
$36.60 |
|
|
$36.74 |
|
|
$35.55 |
|
Tangible Common Equity to Tangible Assets
Tangible common equity to tangible assets is a
non-GAAP ratio that represents total equity less goodwill and
intangible assets divided by total assets less goodwill and
intangible assets. The most comparable GAAP measure of
shareholders' equity to total assets is calculated by dividing
total shareholders' equity by total assets and the following table
sets forth the reconciliation of tangible common equity to tangible
assets and shareholders' equity to total assets.
Northrim BanCorp,
Inc. |
December 31, 2023 |
|
September 30, 2023 |
|
June 30, 2023 |
|
March 31, 2023 |
|
December 31, 2022 |
|
|
|
|
|
|
|
|
|
|
Total shareholders'
equity |
$234,718 |
|
|
$225,259 |
|
|
$221,336 |
|
|
$224,425 |
|
|
$218,629 |
|
Total assets |
|
2,807,497 |
|
|
|
2,790,189 |
|
|
|
2,638,207 |
|
|
|
2,580,037 |
|
|
|
2,674,318 |
|
Total shareholders' equity to
total assets |
|
8.36 |
% |
|
|
8.07 |
% |
|
|
8.39 |
% |
|
|
8.70 |
% |
|
|
8.18 |
% |
Northrim BanCorp,
Inc. |
December 31, 2023 |
|
September 30, 2023 |
|
June 30, 2023 |
|
March 31, 2023 |
|
December 31, 2022 |
Total shareholders'
equity |
$234,718 |
|
|
$225,259 |
|
|
$221,336 |
|
|
$224,425 |
|
|
$218,629 |
|
Less: goodwill and other intangible assets, net |
|
15,967 |
|
|
|
15,973 |
|
|
|
15,977 |
|
|
|
15,980 |
|
|
|
15,984 |
|
Tangible common shareholders'
equity |
$218,751 |
|
|
$209,286 |
|
|
$205,359 |
|
|
$208,445 |
|
|
$202,645 |
|
|
|
|
|
|
|
|
|
|
|
Total assets |
$2,807,497 |
|
|
$2,790,189 |
|
|
$2,638,207 |
|
|
$2,580,037 |
|
|
$2,674,318 |
|
Less: goodwill and other
intangible assets, net |
|
15,967 |
|
|
|
15,973 |
|
|
|
15,977 |
|
|
|
15,980 |
|
|
|
15,984 |
|
Tangible assets |
$2,791,530 |
|
|
$2,774,216 |
|
|
$2,622,230 |
|
|
$2,564,057 |
|
|
$2,658,334 |
|
Tangible common equity
ratio |
|
7.84 |
% |
|
|
7.54 |
% |
|
|
7.83 |
% |
|
|
8.13 |
% |
|
|
7.62 |
% |
|
Tangible Common Equity to Tangible Assets,
excluding the unrealized losses on the available for sales
securities portfolio
Tangible common equity to tangible assets,
excluding the unrealized losses on the available for sales
securities portfolio, is a non-GAAP ratio that represents total
equity less goodwill and intangible assets and the unrealized gain
(loss) on available for sale securities, net of income taxes
divided by total assets less goodwill and intangible assets and the
unrealized gain (loss) on available for sale securities, net of
income taxes. The most comparable GAAP measure of shareholders'
equity to total assets is calculated by dividing total
shareholders' equity by total assets and the following table sets
forth the reconciliation of tangible common equity to tangible
assets and shareholders' equity to total assets.
|
Northrim BanCorp,
Inc. |
December 31,2023 |
|
September 30,2023 |
|
December 31,2022 |
|
|
|
|
|
|
Total shareholders' equity |
|
$234,718 |
|
|
|
$225,259 |
|
|
|
$218,629 |
|
Total assets |
|
2,807,497 |
|
|
|
2,790,189 |
|
|
|
2,672,041 |
|
Total shareholders' equity to
total assets |
|
8.36 |
% |
|
|
8.07 |
% |
|
|
8.18 |
% |
Northrim BanCorp,
Inc. |
December 31, 2023 |
|
September 30, 2023 |
|
December 31, 2022 |
|
|
|
|
|
|
Total shareholders'
equity |
$234,718 |
|
|
$225,259 |
|
|
$218,629 |
|
Less: goodwill and other intangible assets, net |
|
15,967 |
|
|
|
15,973 |
|
|
|
15,984 |
|
Less: unrealized (loss) on
available for sale securities, net of income taxes |
|
(17,415 |
) |
|
|
(26,526 |
) |
|
|
(30,121 |
) |
Tangible common shareholders'
equity, excluding unrealized losses on available for sale
securities |
$236,166 |
|
|
$235,812 |
|
|
$232,766 |
|
|
|
|
|
|
|
Total assets |
$2,807,497 |
|
|
$2,790,189 |
|
|
$2,672,041 |
|
Less: goodwill and other
intangible assets, net |
|
15,967 |
|
|
|
15,973 |
|
|
|
15,984 |
|
Less: unrealized (loss) on
available for sale securities, net of income taxes |
|
(17,415 |
) |
|
|
(26,526 |
) |
|
|
(30,121 |
) |
Tangible assets, excluding
unrealized losses on available for sale securities |
$2,808,945 |
|
|
$2,800,742 |
|
|
$2,686,178 |
|
Tangible common equity ratio,
excluding unrealized losses on available for sale securities |
|
8.41 |
% |
|
|
8.42 |
% |
|
|
8.67 |
% |
|
|
|
|
|
|
Note Transmitted on GlobeNewswire on January 25,
2024, at 12:15 pm Alaska Standard Time.
|
|
Contact: |
Joe Schierhorn, President, CEO, and COO |
|
(907) 261-3308 |
|
Jed Ballard, Chief Financial
Officer |
|
(907) 261-3539 |
Grafico Azioni Northrim BanCorp (NASDAQ:NRIM)
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Da Ago 2024 a Set 2024
Grafico Azioni Northrim BanCorp (NASDAQ:NRIM)
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Da Set 2023 a Set 2024