Northrim BanCorp, Inc. (NASDAQ:NRIM) (“Northrim” or the “Company”)
today reported net income of $9.0 million, or $1.62 per diluted
share, in the second quarter of 2024, compared to $8.2 million, or
$1.48 per diluted share, in the first quarter of 2024, and $5.6
million, or $0.98 per diluted share, in the second quarter a year
ago. The increase in second quarter 2024 profitability as compared
to the prior quarter and the second quarter a year ago was
primarily the result of an increase in mortgage banking income and
higher net interest income, as well as a lower provision for credit
losses.
Dividends per share in the second quarter of
2024 remained consistent with the first quarter of 2024 at $0.61
per share and increased as compared to $0.60 per share in the
second quarter of 2023.
“Our strategic focus on capturing market share
while maintaining our disciplined credit culture delivered another
quarter of strong results,” said Mike Huston, Northrim’s President
and Chief Executive Officer. “Our investments in infrastructure and
people continue to attract new clients who recognize the
differentiated service we provide. Looking ahead, we are optimistic
about continued deposit and loan growth throughout our expanding
footprint in Alaska.”
“I am also pleased to welcome our new CIO,
Nathan Reed, to the executive team where he will oversee
enhancements to our online banking presence and operating
processes,” continued Mr. Huston.
Second Quarter 2024
Highlights:
- Net interest income in the second
quarter of 2024 increased 2% to $27.1 million compared to $26.4
million in the first quarter of 2024 and increased 8% compared to
$25.1 million in the second quarter of 2023.
- Net interest margin on a tax
equivalent basis (“NIMTE”)* was 4.30% for the second quarter of
2024, up 8-basis points from the first quarter of 2024 and up
9-basis points from the second quarter a year ago.
- The weighted average interest rate
for portfolio loans originated in the second quarter of 2024 was
7.26% compared to 7.15% for loans originated in the first quarter
of 2024 and up from 6.93% in the second quarter a year
ago.
- Return on average assets (“ROAA”)
was 1.31% and return on average equity (“ROAE”) was 14.84% for the
second quarter of 2024.
- Portfolio loans were $1.88 billion
at June 30, 2024, up 4% from the preceding quarter and up 13% from
a year ago, primarily due to new customer relationships, expanding
market share, and to retaining certain mortgages originated by
Residential Mortgage, a subsidiary of Northrim Bank (the “Bank”),
in the loan portfolio.
- Total deposits were $2.46 billion
at June 30, 2024, up 1% from the preceding quarter, and up 7% from
$2.30 billion a year ago. Non-interest bearing demand deposits
decreased 1% from the preceding quarter and decreased 1%
year-over-year to $704.5 million at June 30, 2024 and represents
29% of total deposits.
- The average cost of
interest-bearing deposits was 2.21% at June 30, 2024, up from 2.13%
at March 31, 2024 and 1.56% at June 30, 2023.
- Mortgage loan originations
increased to $181.51 million in the second quarter of 2024, up from
$101.73 million in the first quarter of 2024 and $169.42 million in
the second quarter a year ago. Mortgage loans funded for sale were
$152.34 million in the second quarter of 2024, compared to $84.32
million in the first quarter of 2024 and $113.82 million in the
second quarter of 2023.
- Placed three graduates from
Northrim's Commercial Banking Training Program into full-time
positions within the Bank.
|
Financial Highlights |
Three Months Ended |
|
(Dollars in thousands, except per share data) |
June 30, 2024 |
March 31, 2024 |
December 31, 2023 |
September 30, 2023 |
June 30, 2023 |
|
Total assets |
$2,821,668 |
|
$2,759,560 |
|
$2,807,497 |
|
$2,790,189 |
|
$2,638,207 |
|
|
Total portfolio loans |
$1,875,907 |
|
$1,811,135 |
|
$1,789,497 |
|
$1,720,091 |
|
$1,659,239 |
|
|
Total deposits |
$2,463,806 |
|
$2,434,083 |
|
$2,485,055 |
|
$2,427,930 |
|
$2,302,311 |
|
|
Total shareholders’ equity |
$247,200 |
|
$239,327 |
|
$234,718 |
|
$225,259 |
|
$221,336 |
|
|
Net income |
$9,020 |
|
$8,199 |
|
$6,613 |
|
$8,374 |
|
$5,577 |
|
|
Diluted earnings per share |
$1.62 |
|
$1.48 |
|
$1.19 |
|
$1.48 |
|
$0.98 |
|
|
Return on average assets |
|
1.31 |
% |
|
1.19 |
% |
|
0.93 |
% |
|
1.22 |
% |
|
0.85 |
% |
|
Return on average shareholders’ equity |
|
14.84 |
% |
|
13.84 |
% |
|
11.36 |
% |
|
14.67 |
% |
|
9.85 |
% |
|
NIM |
|
4.24 |
% |
|
4.16 |
% |
|
4.06 |
% |
|
4.15 |
% |
|
4.14 |
% |
|
NIMTE* |
|
4.30 |
% |
|
4.22 |
% |
|
4.12 |
% |
|
4.21 |
% |
|
4.21 |
% |
|
Efficiency ratio |
|
68.78 |
% |
|
68.93 |
% |
|
72.21 |
% |
|
66.64 |
% |
|
74.03 |
% |
|
Total shareholders’ equity/total assets |
|
8.76 |
% |
|
8.67 |
% |
|
8.36 |
% |
|
8.07 |
% |
|
8.39 |
% |
|
Tangible common equity/tangible assets* |
|
8.24 |
% |
|
8.14 |
% |
|
7.84 |
% |
|
7.54 |
% |
|
7.83 |
% |
|
Book value per share |
$44.93 |
|
$43.52 |
|
$42.57 |
|
$40.60 |
|
$39.45 |
|
|
Tangible book value per share* |
$42.03 |
|
$40.61 |
|
$39.68 |
|
$37.72 |
|
$36.60 |
|
|
Dividends per share |
$0.61 |
|
$0.61 |
|
$0.60 |
|
$0.60 |
|
$0.60 |
|
|
Common stock outstanding |
|
5,501,562 |
|
|
5,499,578 |
|
|
5,513,459 |
|
|
5,548,436 |
|
|
5,610,841 |
|
* References to NIMTE, tangible book value per
share, and tangible common equity to tangible common assets, (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 13.)
The Alaska Department of Labor (“DOL”) has
reported Alaska’s seasonally adjusted unemployment rate in May of
2024 was 4.5% compared to the U.S. rate of 4%. The total number of
payroll jobs in Alaska, not including uniformed military, increased
2.9% or 9,300 jobs between May of 2023 and May of
2024.
According to the DOL, Construction and Health
Care had the largest growth in new jobs through May 2024 compared
to the prior year. The Construction sector added 2,500 positions
for a year over year growth rate of 14.5% in May of 2024. The
Health Care sector grew by 1,700 jobs for an annual growth rate of
4.3%. The Oil & Gas sector increased by 9.5% or 700 new direct
jobs. Professional and Business Services added 1,100 jobs year over
year through May of 2024, up 3.9%. The Government sector grew by
1,200 jobs for 1.5% growth, adding 600 Federal jobs and 600 State
and local positions in Alaska. The only sectors to decline between
May 2023 and May 2024 were Financial Activities, shrinking 100
positions and Information, down 200 jobs.
Alaska’s Gross State Product (“GSP”) in the
first quarter of 2024, was estimated to be $69.2 billion in current
dollars, according to the Federal Bureau of Economic Analysis
("BEA"). Alaska’s inflation adjusted “real” GSP grew 5.3% in 2023,
placing Alaska fourth best of all 50 states. In the first quarter
of 2024 Alaska grew at an annualized rate of 2.6%, compared to the
average U.S. rate of 1.4%. This ranked Alaska 10th best of the 50
states for the first quarter of 2024. Alaska’s real GSP improvement
in the first quarter of 2024 was aided by gains in the Mining, Oil
& Gas; and Transportation and Warehousing sectors.
The BEA also calculated Alaska’s seasonally
adjusted personal income at $54.1 billion in the first quarter of
2024. This was an annualized improvement of 7% for
Alaska, equal to the national average of 7%.
The monthly average price of Alaska North Slope
(“ANS”) crude oil was in a range between $75.64 and $95.05 in 2023.
In the first five months of 2024 the monthly average price has been
between $79.64 and $89.05. 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 468 thousand bpd in
Alaska’s fiscal year 2024 and grow to 477 thousand bpd in fiscal
year 2025. The DOR projects the number to reach 641 thousand bpd by
fiscal year 2034 over the next decade. 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 $480,272, following a 7.6% increase
in 2022. This was the sixth consecutive year of price increases. In
the first six months of 2024 the average price continues to
increase 4.8% to an average sale of $503,474.
The average sales price for single family homes
in the Matanuska Susitna Borough rose 4% in 2023 to $397,589, after
increasing 9.9% in 2022. This continues a trend of average price
increases for more than a decade in the region. In the first six
months of 2024 the average sales price increased 3.4% to $410,912
according to the Alaska Multiple Listing Services. 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 in 2023. 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 1,636 homes sold in 2023,
compared to 2,103 in 2022, a decrease of 22.2%.
In the first six months of 2024 in Anchorage
there were 4.2% fewer homes sold than over the same period in 2023.
The Matanuska Susitna Borough declined 9.1% in homes sold comparing
the first six months of 2023 and 2024.
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 second quarter of 2024, Northrim
generated a ROAA of 1.31% and a ROAE of 14.84%, compared to 1.19%
and 13.84%, respectively, in the first quarter of 2024 and 0.85%
and 9.85%, respectively, in the second quarter a year ago.
Net Interest Income/Net Interest Margin
Net interest income increased 2% to
$27.1 million in the second quarter of 2024 compared to
$26.4 million in the first quarter of 2024 and increased 8%
compared to $25.1 million in the second quarter of
2023. Interest expense on deposits increased to
$9.5 million in the second quarter of 2024 compared to
$9.2 million in the first quarter and $6.1 million in the
second quarter of 2023.
NIMTE* was 4.30% in the second quarter of 2024
up from 4.22% in the preceding quarter and 4.21% in the second
quarter a year ago. NIMTE* increased 9 basis points in the second
quarter of 2024 compared to the second quarter of 2023 primarily
due to a favorable change in the mix of earning-assets towards
higher loan balances as a percentage of total earning-assets,
higher earning-assets, and higher yields on those assets which were
only partially offset by an increase in costs on interest-bearing
deposits. The weighted average interest rate for new loans booked
in the second quarter of 2024 was 7.26% compared to 7.15% in the
first quarter of 2024 and 6.93% in the second quarter a year ago.
One long-term investment was purchased during the second quarter of
2024 with a yield of 5.13%. There were no long-term investments
purchased in the first quarter of 2024 or second quarter of 2023.
The yield on the portfolio in the second quarter of 2024 remained
consistent with the first quarter of 2024 at 2.82% and increased
from 2.40% in the second quarter of 2023. “We saw the benefit of
new loan volume and repricing outweigh the modest increase in
deposit costs in the second quarter of 2024 and anticipate net
interest margin leveling off through the remainder of the year,”
said Jed Ballard, Chief Financial Officer. Northrim’s NIMTE*
continues to remain above the peer average of 3.11% 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, 2024.
Provision for Credit Losses
Northrim recorded a benefit to the provision for
credit losses of $120,000 in the second quarter of 2024, which was
the net of a $255,000 benefit for credit losses on unfunded
commitments and a provision for credit losses on loans of $135,000.
The benefit to the provision for unfunded commitments was primarily
due to a decrease in unfunded commitments as well as improvement in
estimated loss rates due to changes in mix and management's
assessment of economic conditions. The increase to the provision
for credit losses on loans was primarily a result of loan growth
which was partially offset by a decrease in the provision for loans
individually evaluated and a decrease in estimated loss rates. This
compares to a provision for credit losses of $149,000 in the first
quarter of 2024, and provision for credit losses of
$1.4 million in the second quarter a year ago. The decrease in
the provision for credit losses on loans in the second quarter of
2024 compared to the second quarter of 2023 was primarily due to
lower loan growth during the second quarter of 2024 as compared to
the second quarter of 2023.
Nonperforming loans, net of government
guarantees, decreased during the quarter to $4.8 million at
June 30, 2024, compared to $5.3 million at March 31,
2024, and $5.3 million at June 30, 2023.
The allowance for credit losses on loans was
365% of nonperforming loans, net of government guarantees, at the
end of the first quarter of 2024, compared to 333% three months
earlier and 292% 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
$9.6 million, or 26% of total second quarter 2024 revenues, as
compared to $7.8 million, or 23% of revenues in the first
quarter of 2024, and $7.0 million, or 22% of revenues in the
second quarter of 2023. The increase in other operating income in
the second quarter of 2024 as compared to the preceding quarter and
the second quarter of 2023 was primarily the result of an increase
in mortgage banking income due to a higher volume of mortgage
activity due to our expansion in Arizona, Colorado, and the Pacific
Northwest markets. The fair market value of marketable equity
securities decreased $60,000 in the second quarter of 2024 compared
to an increase of $314,000 in the prior quarter and a decrease of
$234,000 in the second quarter of 2023. The increase in other
operating income in the second quarter of 2024 as compared to the
second quarter a year ago was due primarily to a higher volume of
mortgage activity, as well as an increase in purchased receivable
income due to higher balances and increased rates. See further
discussion regarding mortgage activity during the second quarter
contained under “Home Mortgage Lending” below.
Other Operating Expenses
Operating expenses were $25.2 million in
the second quarter of 2024, compared to $23.6 million in the
first quarter of 2024, and $23.8 million in the second quarter
of 2023. The increase in other operating expenses in
the second quarter of 2024 compared to the first quarter of 2024
was primarily due to an increase in salaries and other personnel
expense, including $807,000 in mortgage commissions expense due to
higher mortgage volume, as well as an increase in OREO expense due
to a gain on sale recorded in the first quarter of 2024 for
proceeds received related to a government guarantee on an OREO
property sold in December 2022. The increase in other operating
expenses in the second quarter of 2024 compared to a year ago is
primarily due to an increase in salaries and other personnel
expense.
Income Tax Provision
In the first quarter of 2024, Northrim recorded
$2.5 million in state and federal income tax expense for an
effective tax rate of 21.9%, compared to $2.3 million, or
21.9% in the first quarter of 2024 and $1.4 million, or 19.6%
in the second quarter a year ago. The increase in the tax rate in
the second quarter of 2024 as compared to the second quarter of
2023 is primarily the result of a decrease in tax credits and tax
exempt interest income as a percentage of pre-tax income in 2024 as
compared to 2023.
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 109 basis points of 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.
Updated market share data based on Alaska's total deposits as of
June 30, 2024 should be available from the FDIC in September 2024.
Northrim opened a branch in Kodiak in the first quarter of 2023, a
loan production office in Homer in the second quarter of 2023, a
permanent branch in Nome in the third quarter of 2023, and a branch
in Homer in the first quarter of 2024. See below for further
discussion regarding the Company's deposit movement for the
quarter.
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'.
Northrim's Commercial Banking Training Program
was launched in 2022 to address persistent labor shortages in the
Alaskan financial services industry. Trainees are selected from
internal and external candidates to participate in a combination of
classroom and rotational training with the goal of equipping
trainees with the skills and experience they require to achieve
long-term success and grow the future bankers at Northrim. Three
graduates from the program were placed into full-time positions at
the Bank in the second quarter of 2024.
Net interest income in the Community Banking
segment totaled $24.3 million in the second quarter of 2024,
compared to $24.2 million in the first quarter of 2024 and
$22.7 million in the second quarter of 2023. Net interest
income increased slightly in the second quarter of 2024 as compared
to the first quarter of 2024 mostly due to higher interest income
on loans. This increase was only partially offset by higher
interest expense on deposits and borrowings and lower interest
income on short term and portfolio investments.
Other operating expenses totaled
$18.5 million in the second quarter of 2024, up $945,000 or 5%
from $17.6 million in the first quarter of 2024, and up
$692,000 or 4% from the second quarter a year ago. The increase in
the second quarter of 2024 as compared to the prior quarter was
mostly due to an increase in salaries and other personnel expense,
as well as an increase in OREO expense due to a gain on sale
recorded in the first quarter of 2024 for proceeds received related
to a government guarantee on an OREO property sold in December
2022.
The following tables provide highlights of the
Community Banking segment of Northrim:
| |
Three Months Ended |
|
(Dollars in thousands, except per share data) |
June 30, 2024 |
March 31, 2024 |
December 31, 2023 |
September 30, 2023 |
June 30, 2023 |
|
Net interest income |
$24,278 |
|
$24,215 |
$24,456 |
$24,050 |
$22,700 |
|
(Benefit) provision for credit losses |
|
(184 |
) |
|
197 |
|
885 |
|
1,190 |
|
1,407 |
|
Other operating income |
|
3,693 |
|
|
3,813 |
|
4,048 |
|
3,597 |
|
3,067 |
|
Other operating expense |
|
18,497 |
|
|
17,552 |
|
18,516 |
|
16,946 |
|
17,805 |
|
Income before provision for income taxes |
|
9,658 |
|
|
10,279 |
|
9,103 |
|
9,511 |
|
6,555 |
|
Provision for income taxes |
|
2,004 |
|
|
2,242 |
|
1,941 |
|
1,709 |
|
1,192 |
|
Net income |
$7,654 |
|
$8,037 |
$7,162 |
$7,802 |
$5,363 |
|
Weighted average shares outstanding, diluted |
|
5,558,580 |
|
|
5,554,930 |
|
5,578,491 |
|
5,624,906 |
|
5,677,292 |
|
Diluted earnings per share |
$1.37 |
|
$1.45 |
$1.29 |
$1.39 |
$0.94 |
| |
Year-to-date |
|
(Dollars in thousands, except per share data) |
June 30, 2024 |
June 30, 2023 |
|
Net interest income |
$48,493 |
$47,452 |
|
Provision for credit losses |
|
13 |
|
1,767 |
|
Other operating income |
|
7,506 |
|
5,967 |
|
Other operating expense |
|
36,049 |
|
35,222 |
|
Income before provision for income taxes |
|
19,937 |
|
16,430 |
|
Provision for income taxes |
|
4,246 |
|
3,507 |
|
Net income Community Banking segment |
$15,691 |
$12,923 |
|
Weighted average shares outstanding, diluted |
|
5,562,025 |
|
5,719,453 |
|
Diluted earnings per share |
$2.82 |
$2.26 |
Home Mortgage Lending
During the second quarter of 2024, mortgage
loans funded for sale increased to $152.3 million, compared to
$84.3 million in the first quarter of 2024, and
$113.8 million in the second quarter of 2023.
During the second quarter of 2024, the Bank
purchased Residential Mortgage-originated loans of
$29.2 million of which roughly one-third were jumbos,
one-third were adjustable rate mortgages and one-third were
mortgages for second homes, with a weighted average interest rate
of 6.82%, up from $17.4 million and 6.65% in the first quarter
of 2024, and down from $55.6 million and 5.70% in the second
quarter of 2023. The increase in mortgage loans funded for
investment has increased net interest income in the Home Mortgage
Lending segment. Net interest income contributed $2.8 million
to total revenue in the second quarter of 2024, up from
$2.2 million in the prior quarter, and up from
$2.4 million in the second quarter a year ago.
The Arizona, Colorado, and the Pacific Northwest
mortgage expansion markets were responsible for 22% of Residential
Mortgage's $182 million total production in the second quarter of
2024, 19% of $102 million total production in the first quarter of
2024, and 15% of $169 million total production in the second
quarter of 2023.
The net change in fair value of mortgage
servicing rights decreased mortgage banking income by $81,000
during the second quarter of 2024 compared to a decrease of $25,000
for the first quarter of 2024 and a decrease of $574,000 for the
second quarter of 2023. Mortgage servicing revenue increased to
$2.2 million in the second quarter of 2024 from
$1.6 million in the prior quarter and from $1.4 million
in the second quarter of 2023 due to an increase in production of
Alaska Housing Finance Corporation (AHFC) mortgages, which
contribute to servicing revenues at origination. In the second
quarter of 2024, the Company's servicing portfolio increased $41.8
million, which included $58.9 million in new mortgage loans, net of
amortization and payoffs of $17.1 million as compared to a net
increase of $15.5 million in the first quarter of 2024 and $12.8
million in the second quarter of 2023.
As of June 30, 2024, Northrim serviced
4,031 loans in its $1.10 billion home-mortgage-servicing
portfolio, a 4% increase compared to the $1.06 billion
serviced as of the end of the first quarter of 2024, and a 20%
increase from the $922 million serviced a year ago.
The following tables provide highlights of the
Home Mortgage Lending segment of Northrim:
| |
Three Months Ended |
|
(Dollars in thousands, except per share data) |
June 30, 2024 |
March 31, 2024 |
December 31, 2023 |
September 30, 2023 |
June 30, 2023 |
|
Mortgage commitments |
$88,006 |
|
$56,208 |
|
$22,926 |
|
$50,128 |
|
$71,123 |
|
| |
|
|
|
|
|
|
Mortgage loans funded for sale |
$152,339 |
|
$84,324 |
|
$79,742 |
|
$131,863 |
|
$113,824 |
|
|
Mortgage loans funded for investment |
|
29,175 |
|
|
17,403 |
|
|
27,114 |
|
|
21,585 |
|
|
55,595 |
|
|
Total mortgage loans funded |
$181,514 |
|
$101,727 |
|
$106,856 |
|
$153,448 |
|
$169,419 |
|
|
Mortgage loan refinances to total fundings |
|
6 |
% |
|
4 |
% |
|
4 |
% |
|
5 |
% |
|
3 |
% |
|
Mortgage loans serviced for others |
$1,101,800 |
|
$1,060,007 |
|
$ 1,044,516 |
|
$ 982,098 |
|
$921,616 |
|
| |
|
|
|
|
|
|
Net realized gains on mortgage loans sold |
$3,188 |
|
$1,980 |
|
$1,462 |
|
$2,491 |
|
$2,570 |
|
|
Change in fair value of mortgage loan commitments, net |
|
391 |
|
|
386 |
|
|
(296 |
) |
|
(289 |
) |
|
358 |
|
|
Total production revenue |
|
3,579 |
|
|
2,366 |
|
|
1,166 |
|
|
2,202 |
|
|
2,928 |
|
|
Mortgage servicing revenue |
|
2,164 |
|
|
1,561 |
|
|
2,180 |
|
|
2,396 |
|
|
1,424 |
|
|
Change in fair value of mortgage servicing rights: |
|
|
|
|
|
|
Due to changes in model inputs of assumptions1 |
|
239 |
|
|
289 |
|
|
(707 |
) |
|
— |
|
|
(3 |
) |
|
Other2 |
|
(320 |
) |
|
(314 |
) |
|
(301 |
) |
|
(310 |
) |
|
(571 |
) |
|
Total mortgage servicing revenue, net |
|
2,083 |
|
|
1,536 |
|
|
1,172 |
|
|
2,086 |
|
|
850 |
|
|
Other mortgage banking revenue |
|
222 |
|
|
129 |
|
|
99 |
|
|
117 |
|
|
135 |
|
|
Total mortgage banking income |
$5,884 |
|
$4,031 |
|
$2,437 |
|
$4,405 |
|
$3,913 |
|
| |
|
|
|
|
|
|
Net interest income |
$2,775 |
|
$2,232 |
|
$2,276 |
|
$2,300 |
|
$2,442 |
|
|
Provision (benefit) for credit losses |
|
64 |
|
|
(48 |
) |
|
— |
|
|
— |
|
|
— |
|
|
Mortgage banking income |
|
5,884 |
|
|
4,031 |
|
|
2,437 |
|
|
4,405 |
|
|
3,913 |
|
|
Other operating expense |
|
6,697 |
|
|
6,086 |
|
|
5,477 |
|
|
5,951 |
|
|
5,977 |
|
|
Income (loss) before provision for income taxes |
|
1,898 |
|
|
225 |
|
|
(764 |
) |
|
754 |
|
|
378 |
|
|
Provision (benefit) for income taxes |
|
532 |
|
|
63 |
|
|
(215 |
) |
|
182 |
|
|
164 |
|
|
Net income (loss) |
$1,366 |
|
$162 |
|
|
($549 |
) |
$572 |
|
$214 |
|
| |
|
|
|
|
|
|
Weighted average shares outstanding, diluted |
|
5,558,580 |
|
|
5,554,930 |
|
|
5,578,491 |
|
|
5,624,906 |
|
|
5,677,292 |
|
|
Diluted earnings per share |
$0.25 |
|
$0.03 |
|
|
($0.10 |
) |
$0.09 |
|
$0.04 |
|
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-to-date |
|
(Dollars in thousands, except per share data) |
June 30, 2024 |
June 30, 2023 |
|
Mortgage loans funded for sale |
$236,663 |
|
$164,549 |
|
|
Mortgage loans funded for investment |
|
46,578 |
|
|
97,559 |
|
|
Total mortgage loans funded |
$283,241 |
|
$262,108 |
|
|
Mortgage loan refinances to total fundings |
|
6 |
% |
|
4 |
% |
| |
|
|
|
Net realized gains on mortgage loans sold |
$5,168 |
|
$3,875 |
|
|
Change in fair value of mortgage loan commitments, net |
|
777 |
|
|
483 |
|
|
Total production revenue |
|
5,945 |
|
|
4,358 |
|
|
Mortgage servicing revenue |
|
3,725 |
|
|
2,792 |
|
|
Change in fair value of mortgage servicing rights: |
|
|
|
Due to changes in model inputs of assumptions1 |
|
528 |
|
|
(215 |
) |
|
Other2 |
|
(634 |
) |
|
(1,154 |
) |
|
Total mortgage servicing revenue, net |
|
3,619 |
|
|
1,423 |
|
|
Other mortgage banking revenue |
|
351 |
|
|
140 |
|
|
Total mortgage banking income |
$9,915 |
|
$5,921 |
|
| |
|
|
|
Net interest income |
$5,007 |
|
$2,722 |
|
|
Provision for credit losses |
|
16 |
|
|
— |
|
|
Mortgage banking income |
|
9,915 |
|
|
5,921 |
|
|
Other operating expense |
|
12,783 |
|
|
12,069 |
|
|
Income before provision for income taxes |
|
2,123 |
|
|
(3,426 |
) |
|
Provision for income taxes |
|
595 |
|
|
(910 |
) |
|
Net (loss) income Home Mortgage Lending segment |
$1,528 |
|
|
($2,516 |
) |
| |
|
|
|
Weighted average shares outstanding, diluted |
|
5,562,025 |
|
|
5,719,453 |
|
|
Diluted (loss) earnings per share |
$0.28 |
|
|
($0.44 |
) |
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 $2.82 billion
at June 30, 2024, up 2% from the preceding quarter and up 7%
from a year ago. Northrim’s loan-to-deposit ratio was 76% at
June 30, 2024, up from 74% at March 31, 2024, and 72% at
June 30, 2023.
At June 30, 2024, our liquid assets,
investments, and loans maturing within one year were $526.5 million
and our funds available for borrowing under our existing lines of
credit were $643.1 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
$2.57 billion in the second quarter of 2024, up slightly from
$2.56 billion in the first quarter of 2024 and up 5% from
$2.43 billion in the second quarter a year ago. The average
yield on interest-earning assets was 5.83% in the second quarter of
2024, up from 5.69% in the preceding quarter and 5.31% in the
second quarter a year ago.
Average investment securities decreased to
$640.0 million in the second quarter of 2024, compared to
$670.9 million in the first quarter of 2024 and
$727.8 million in the second quarter a year ago. The average
net tax equivalent yield on the securities portfolio was 2.82% for
the second quarter of 2024, consistent with the preceding quarter
and up from 2.40% in the year ago quarter. The average estimated
duration of the investment portfolio at June 30, 2024, was
approximately 2.5 years compared to approximately 3.0 years at June
30, 2023. As of June 30, 2024, $111.5 million of available for sale
securities with a weighted average yield of 1.02% are scheduled to
mature in the next six months, $77.3 million with a weighted
average yield of 2.35% are scheduled to mature in six months to one
year, and $172.2 million with a weighted average yield of 1.49% are
scheduled to mature in the following year, representing a total of
$361.0 million or 14% 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 $2.0 million in the
second quarter of 2024 resulting in total unrealized loss, net of
tax, of $15.2 million compared to $17.2 million at March 31, 2024,
and $27.5 million a year ago. The average maturity of the available
for sale securities with the majority of the unrealized loss is 1.6
years. Total unrealized losses on held to maturity securities were
$3.0 million at June 30, 2024, compared to $3.4 million at March
31, 2024, and $4.2 million a year ago.
Average interest bearing deposits in other banks
decreased to $17.4 million in the second quarter of 2024 from $61.6
million in the first quarter of 2024 and $66.1 million in the
second quarter of 2023 as cash was used to fund the loan growth and
provide liquidity.
Portfolio loans were $1.88 billion at
June 30, 2024, up 4% from the preceding quarter and up 13%
from a year ago. Portfolio loans, excluding consumer mortgage
loans, were $1.65 billion at June 30, 2024, up 4% from the
preceding quarter and up 10% from a year ago. Average portfolio
loans in the second quarter of 2024 were $1.85 billion, which
was up 3% from the preceding quarter and up 15% from a year ago.
Yields on average portfolio loans in the second quarter of 2024
increased to 6.87% from 6.75% in the first quarter of 2024 and from
6.48% in the second quarter of 2023. The increase in the yield on
portfolio loans in the second quarter of 2024 compared to the first
quarter of 2024 and the second quarter a year ago is primarily due
to loan repricing due to the increases in interest rates and new
loans booked at higher rates due to changes in the interest rate
environment. The yield on new portfolio loans, excluding consumer
mortgage loans, was 8.49% in the second quarter of 2024 as compared
to 8.46% in the first quarter of 2024 and 7.70% in the second
quarter of 2023. Approximately 28% of loans mature or reprice in
the next three months, 16% of loans mature or reprice in three to
twelve months, and 29% of loans mature or reprice in one to three
years.
Alaskans continue to account for substantially
all of Northrim’s deposit base. Total deposits were
$2.46 billion at June 30, 2024, up 1% from
$2.43 billion at March 31, 2024, and up 7% from
$2.30 billion a year ago. “The increase in deposits in the
second quarter of 2024 were consistent with our customers' business
cycles and a result of continued acquisition of new relationships,”
said Ballard. At June 30, 2024, 71% of total deposits were held in
business accounts and 29% of deposit balances were held in consumer
accounts. Northrim had approximately 34,000 deposit customers with
an average balance of $74,000 as of June 30, 2024. Northrim
had 21 customers with balances over $10 million as of June 30,
2024, which accounted for $474.5 million, or 20%, of total
deposits. Of these $474.5 million of deposits, approximately 40%
are insured using ICS or CDARS and an additional 16% 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 1% from the prior quarter and decreased 1%
year-over-year to $704.5 million at June 30, 2024. Demand
deposits remained consistent at 29% of total deposits at June 30,
2024 and March 31, 2024 compared to 31% of total deposits at June
30, 2023 and 35% of total deposits at March 31, 2023. Average
interest-bearing deposits were up slightly to $1.73 billion
with an average cost of 2.21% in the second quarter of 2024,
compared to $1.73 billion and an average cost of 2.13% in the
first quarter of 2024, and up 10% compared to $1.57 billion
and an average cost of 1.56% in the second quarter of 2023.
Uninsured deposits totaled $980.0 million or 40% of total deposits
as of June 30, 2024 compared to $1.1 billion or 46% of total
deposits as of December 31, 2022. Since interest rates began
increasing in 2022, Northrim has taken a proactive, targeted
approach to increase deposit rates.
Shareholders’ equity was $247.2 million, or
$44.93 book value per share, at June 30, 2024, compared to
$239.3 million, or $43.52 book value per share, at March 31,
2024 and $221.3 million, or $39.45 book value per share, a
year ago. Tangible book value per share* was $42.03 at
June 30, 2024, compared to $40.61 at March 31, 2024, and
$36.60 per share a year ago. The increase in shareholders’ equity
in the second quarter of 2024 as compared to the first quarter of
2024 was largely the result of earnings of $9.0 million and an
increase in the fair value of the available for sale securities
portfolio, which increased $2.0 million, net of tax, which were
only partially offset by dividends paid of $3.4 million. The
Company did not repurchase any shares of common stock in the second
quarter of 2024 and has 110,000 shares remaining under the current
share repurchase program as of June 30, 2024. Tangible common
equity to tangible assets* was 8.24% as of June 30, 2024, compared
to 8.14% as of March 31, 2024 and 7.83% as of June 30, 2023.
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 11.68% at June 30, 2024,
compared to 11.55% at March 31, 2024, and 12.13% at June 30,
2023.
Asset Quality
Northrim believes it has a consistent lending
approach throughout economic cycles, which emphasizes appropriate
loan-to-value ratios, adequate debt coverage ratios, and competent
management.
Nonperforming assets (“NPAs”) net of government
guarantees were $5.1 million at June 30, 2024, down from
$5.4 million at March 31, 2024 and down from $5.6 million
a year ago. Of the NPAs at June 30, 2024, $3.1 million, or
64%, are nonaccrual loans related to three commercial
relationships.
Net adversely classified loans were
$7.1 million at June 30, 2024, as compared to
$7.2 million at March 31, 2024, and $6.9 million a year
ago. Adversely classified loans are loans that Northrim has
classified as substandard, doubtful, and loss, net of government
guarantees. Net loan recoveries were $26,000 in the second quarter
of 2024, compared to net loan recoveries of $42,000 in the first
quarter of 2024, and net loan charge-offs of $22,000 in the second
quarter of 2023. Additionally, Northrim had eight loan
modifications to borrowers experiencing financial difficulty
totaling $2.7 million, net of government guarantees in the second
quarter of 2024.
Northrim had $122.2 million, or 6% of portfolio
loans, in the Healthcare sector, $121.1 million, or 6% of portfolio
loans, in the Tourism sector, $93.9 million, or 5% of portfolio
loans, in the Accommodations sector, $78.4 million, or 4% of
portfolio loans, in the Fishing sector, $70.8 million, or 4% of
portfolio loans, in the Aviation (non-tourism) sector, $63.9
million, or 3% of portfolio loans, in the Retail sector, and $52.1
million, or 3% in the Restaurants and Breweries sector as of
June 30, 2024.
Northrim estimates that $88.3 million, or
approximately 5% of portfolio loans, had direct exposure to the oil
and gas industry in Alaska, as of June 30, 2024, and
$1.6 million of these loans are adversely classified. As of
June 30, 2024, Northrim has an additional $31.7 million in
unfunded commitments to companies with direct exposure to the oil
and gas industry in Alaska, and no unfunded commitments on
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 20 branches in
Anchorage, Eagle River, the Matanuska Valley, the Kenai Peninsula,
Juneau, Fairbanks, Nome, Kodiak, Ketchikan, and Sitka, 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. The 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 StatementThis
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; 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, 2023, 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:
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) |
June 30, |
March 31, |
June 30, |
|
June 30, |
June 30, |
|
|
|
2024 |
|
|
2024 |
|
|
2023 |
|
|
|
2024 |
|
|
2023 |
|
|
Interest Income: |
|
|
|
|
|
|
|
Interest and fees on loans |
$32,367 |
|
$30,450 |
|
$26,313 |
|
|
$62,817 |
|
$50,007 |
|
|
Interest on portfolio investments |
|
4,310 |
|
|
4,520 |
|
|
4,679 |
|
|
|
8,830 |
|
|
9,291 |
|
|
Interest on deposits in banks |
|
232 |
|
|
838 |
|
|
828 |
|
|
|
1,070 |
|
|
2,317 |
|
|
Total interest income |
|
36,909 |
|
|
35,808 |
|
|
31,820 |
|
|
|
72,717 |
|
|
61,615 |
|
|
Interest Expense: |
|
|
|
|
|
|
|
Interest expense on deposits |
|
9,476 |
|
|
9,180 |
|
|
6,114 |
|
|
|
18,656 |
|
|
10,697 |
|
|
Interest expense on borrowings |
|
380 |
|
|
181 |
|
|
564 |
|
|
|
561 |
|
|
744 |
|
|
Total interest expense |
|
9,856 |
|
|
9,361 |
|
|
6,678 |
|
|
|
19,217 |
|
|
11,441 |
|
|
Net interest income |
|
27,053 |
|
|
26,447 |
|
|
25,142 |
|
|
|
53,500 |
|
|
50,174 |
|
| |
|
|
|
|
|
|
|
(Benefit) provision for credit losses |
|
(120 |
) |
|
149 |
|
|
1,407 |
|
|
|
29 |
|
|
1,767 |
|
|
Net interest income after provision for credit losses |
|
27,173 |
|
|
26,298 |
|
|
23,735 |
|
|
|
53,471 |
|
|
48,407 |
|
| |
|
|
|
|
|
|
|
Other Operating Income: |
|
|
|
|
|
|
|
Mortgage banking income |
|
5,884 |
|
|
4,031 |
|
|
3,913 |
|
|
|
9,915 |
|
|
5,921 |
|
|
Purchased receivable income |
|
1,242 |
|
|
1,345 |
|
|
1,018 |
|
|
|
2,587 |
|
|
1,995 |
|
|
Bankcard fees |
|
1,105 |
|
|
917 |
|
|
986 |
|
|
|
2,022 |
|
|
1,894 |
|
|
Service charges on deposit accounts |
|
572 |
|
|
549 |
|
|
505 |
|
|
|
1,121 |
|
|
962 |
|
|
Unrealized gain (loss) on marketable equity securities |
|
(60 |
) |
|
314 |
|
|
(234 |
) |
|
|
254 |
|
|
(457 |
) |
|
Other income |
|
834 |
|
|
688 |
|
|
792 |
|
|
|
1,522 |
|
|
1,573 |
|
|
Total other operating income |
|
9,577 |
|
|
7,844 |
|
|
6,980 |
|
|
|
17,421 |
|
|
11,888 |
|
| |
|
|
|
|
|
|
|
Other Operating Expense: |
|
|
|
|
|
|
|
Salaries and other personnel expense |
|
16,627 |
|
|
15,417 |
|
|
15,183 |
|
|
|
32,044 |
|
|
30,667 |
|
|
Data processing expense |
|
2,601 |
|
|
2,659 |
|
|
2,377 |
|
|
|
5,260 |
|
|
4,732 |
|
|
Occupancy expense |
|
1,843 |
|
|
1,962 |
|
|
1,811 |
|
|
|
3,805 |
|
|
3,754 |
|
|
Professional and outside services |
|
726 |
|
|
755 |
|
|
801 |
|
|
|
1,481 |
|
|
1,523 |
|
|
Insurance expense |
|
692 |
|
|
779 |
|
|
647 |
|
|
|
1,471 |
|
|
1,204 |
|
|
Marketing expense |
|
690 |
|
|
513 |
|
|
933 |
|
|
|
1,203 |
|
|
1,497 |
|
|
OREO expense, net rental income and gains on sale |
|
2 |
|
|
(391 |
) |
|
(8 |
) |
|
|
(389 |
) |
|
18 |
|
|
Intangible asset amortization expense |
|
— |
|
|
— |
|
|
3 |
|
|
|
— |
|
|
7 |
|
|
Other operating expense |
|
2,013 |
|
|
1,944 |
|
|
2,035 |
|
|
|
3,957 |
|
|
3,889 |
|
|
Total other operating expense |
|
25,194 |
|
|
23,638 |
|
|
23,782 |
|
|
|
48,832 |
|
|
47,291 |
|
| |
|
|
|
|
|
|
|
Income before provision for income taxes |
|
11,556 |
|
|
10,504 |
|
|
6,933 |
|
|
|
22,060 |
|
|
13,004 |
|
|
Provision for income taxes |
|
2,536 |
|
|
2,305 |
|
|
1,356 |
|
|
|
4,841 |
|
|
2,597 |
|
|
Net income |
$9,020 |
|
$8,199 |
|
$5,577 |
|
|
$17,219 |
|
$10,407 |
|
| |
|
|
|
|
|
|
|
Basic EPS |
$1.64 |
|
$1.49 |
|
$0.99 |
|
|
$3.13 |
|
$1.84 |
|
|
Diluted EPS |
$1.62 |
|
$1.48 |
|
$0.98 |
|
|
$3.10 |
|
$1.82 |
|
|
Weighted average shares outstanding, basic |
|
5,500,588 |
|
|
5,499,578 |
|
|
5,632,174 |
|
|
|
5,500,083 |
|
|
5,661,803 |
|
|
Weighted average shares outstanding, diluted |
|
5,558,580 |
|
|
5,554,930 |
|
|
5,677,292 |
|
|
|
5,562,025 |
|
|
5,719,453 |
|
|
Balance Sheet |
|
|
|
|
(Dollars in thousands) |
|
|
|
|
(Unaudited) |
June 30, |
March 31, |
June 30, |
|
|
|
2024 |
|
|
2024 |
|
|
2023 |
|
| |
|
|
|
|
Assets: |
|
|
|
|
Cash and due from banks |
$33,364 |
|
$30,159 |
|
$34,809 |
|
|
Interest bearing deposits in other banks |
|
21,058 |
|
|
50,205 |
|
|
1,943 |
|
|
Investment securities available for sale, at fair value |
|
584,964 |
|
|
592,479 |
|
|
671,139 |
|
|
Investment securities held to maturity |
|
36,750 |
|
|
36,750 |
|
|
36,750 |
|
|
Marketable equity securities, at fair value |
|
12,381 |
|
|
13,467 |
|
|
10,604 |
|
|
Investment in Federal Home Loan Bank stock |
|
4,929 |
|
|
3,236 |
|
|
5,858 |
|
|
Loans held for sale |
|
85,926 |
|
|
43,818 |
|
|
60,759 |
|
| |
|
|
|
|
Portfolio loans |
|
1,875,907 |
|
|
1,811,135 |
|
|
1,659,239 |
|
|
Allowance for credit losses, loans |
|
(17,694 |
) |
|
(17,533 |
) |
|
(15,645 |
) |
|
Net portfolio loans |
|
1,858,213 |
|
|
1,793,602 |
|
|
1,643,594 |
|
|
Purchased receivables, net |
|
25,722 |
|
|
37,698 |
|
|
21,866 |
|
|
Mortgage servicing rights, at fair value |
|
21,077 |
|
|
20,055 |
|
|
18,248 |
|
|
Other real estate owned, net |
|
— |
|
|
— |
|
|
273 |
|
|
Premises and equipment, net |
|
40,393 |
|
|
40,836 |
|
|
39,573 |
|
|
Lease right of use asset |
|
8,244 |
|
|
8,867 |
|
|
10,088 |
|
|
Goodwill and intangible assets |
|
15,967 |
|
|
15,967 |
|
|
15,977 |
|
|
Other assets |
|
72,680 |
|
|
72,421 |
|
|
66,726 |
|
|
Total assets |
$2,821,668 |
|
$2,759,560 |
|
$2,638,207 |
|
| |
|
|
|
|
Liabilities: |
|
|
|
|
Demand deposits |
$704,471 |
|
$714,244 |
|
$711,390 |
|
|
Interest-bearing demand |
|
906,010 |
|
|
889,581 |
|
|
795,128 |
|
|
Savings deposits |
|
238,156 |
|
|
246,902 |
|
|
275,602 |
|
|
Money market deposits |
|
195,159 |
|
|
209,785 |
|
|
232,698 |
|
|
Time deposits |
|
420,010 |
|
|
373,571 |
|
|
287,493 |
|
|
Total deposits |
|
2,463,806 |
|
|
2,434,083 |
|
|
2,302,311 |
|
|
Other borrowings |
|
43,961 |
|
|
13,569 |
|
|
64,887 |
|
|
Junior subordinated debentures |
|
10,310 |
|
|
10,310 |
|
|
10,310 |
|
|
Lease liability |
|
8,269 |
|
|
8,884 |
|
|
10,087 |
|
|
Other liabilities |
|
48,122 |
|
|
53,387 |
|
|
29,276 |
|
|
Total liabilities |
|
2,574,468 |
|
|
2,520,233 |
|
|
2,416,871 |
|
| |
|
|
|
|
Shareholders’ Equity: |
|
|
|
|
Total shareholders’ equity |
|
247,200 |
|
|
239,327 |
|
|
221,336 |
|
|
Total liabilities and shareholders’ equity |
$2,821,668 |
|
$2,759,560 |
|
$2,638,207 |
|
| |
|
|
|
Additional Financial
Information(Dollars in thousands)(Unaudited)
|
Composition of Portfolio Loans |
|
|
|
|
|
|
|
|
|
|
|
|
| |
June 30, 2024 |
|
March 31, 2024 |
|
December 31, 2023 |
|
September 30, 2023 |
|
June 30, 2023 |
| |
Balance |
% of total |
|
Balance |
% of total |
|
Balance |
% of total |
|
Balance |
% of total |
|
Balance |
% of total |
|
Commercial loans |
$495,781 |
|
26 |
% |
|
$475,220 |
|
26 |
% |
|
$486,057 |
|
27 |
% |
|
$492,145 |
|
28 |
% |
|
$499,780 |
|
29 |
% |
|
Commercial real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Owner occupied properties |
|
383,832 |
|
20 |
% |
|
|
372,507 |
|
20 |
% |
|
|
368,357 |
|
20 |
% |
|
|
359,019 |
|
21 |
% |
|
|
350,411 |
|
21 |
% |
|
Nonowner occupied and multifamily properties |
|
551,130 |
|
30 |
% |
|
|
529,904 |
|
30 |
% |
|
|
519,115 |
|
30 |
% |
|
|
509,939 |
|
30 |
% |
|
|
494,505 |
|
31 |
% |
|
Residential real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1-4 family properties secured by first liens |
|
222,026 |
|
12 |
% |
|
|
218,552 |
|
12 |
% |
|
|
203,534 |
|
11 |
% |
|
|
180,719 |
|
10 |
% |
|
|
160,467 |
|
10 |
% |
|
1-4 family properties secured by junior liens & revolving
secured by first liens |
|
41,258 |
|
2 |
% |
|
|
35,460 |
|
2 |
% |
|
|
33,783 |
|
2 |
% |
|
|
27,342 |
|
2 |
% |
|
|
24,970 |
|
1 |
% |
|
1-4 family construction |
|
29,510 |
|
2 |
% |
|
|
27,751 |
|
2 |
% |
|
|
31,239 |
|
2 |
% |
|
|
32,374 |
|
2 |
% |
|
|
35,527 |
|
2 |
% |
|
Construction loans |
|
154,009 |
|
8 |
% |
|
|
153,537 |
|
8 |
% |
|
|
149,788 |
|
8 |
% |
|
|
120,909 |
|
7 |
% |
|
|
96,015 |
|
6 |
% |
|
Consumer loans |
|
6,679 |
|
— |
% |
|
|
6,444 |
|
— |
% |
|
|
6,180 |
|
— |
% |
|
|
5,930 |
|
— |
% |
|
|
5,498 |
|
— |
% |
|
Subtotal |
|
1,884,225 |
|
|
|
|
1,819,375 |
|
|
|
|
1,798,053 |
|
|
|
|
1,728,377 |
|
|
|
|
1,667,173 |
|
|
|
Unearned loan fees, net |
|
(8,318 |
) |
|
|
|
(8,240 |
) |
|
|
|
(8,556 |
) |
|
|
|
(8,286 |
) |
|
|
|
(7,934 |
) |
|
|
Total portfolio loans |
$1,875,907 |
|
|
|
$1,811,135 |
|
|
|
$1,789,497 |
|
|
|
$1,720,091 |
|
|
|
$1,659,239 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Composition of Deposits |
|
|
|
|
|
|
|
|
|
|
|
|
| |
June 30, 2024 |
|
March 31, 2024 |
|
December 31, 2023 |
|
September 30, 2023 |
|
June 30, 2023 |
| |
Balance |
% of total |
|
Balance |
% of total |
|
Balance |
% of total |
|
Balance |
% of total |
|
Balance |
% of total |
|
Demand deposits |
$704,471 |
29 |
% |
|
$714,244 |
29 |
% |
|
$749,683 |
31 |
% |
|
$764,647 |
31 |
% |
|
$711,390 |
31 |
% |
|
Interest-bearing demand |
|
906,010 |
36 |
% |
|
|
889,581 |
37 |
% |
|
|
927,291 |
37 |
% |
|
|
875,814 |
36 |
% |
|
|
795,128 |
35 |
% |
|
Savings deposits |
|
238,156 |
10 |
% |
|
|
246,902 |
10 |
% |
|
|
255,338 |
10 |
% |
|
|
265,799 |
11 |
% |
|
|
275,602 |
12 |
% |
|
Money market deposits |
|
195,159 |
8 |
% |
|
|
209,785 |
9 |
% |
|
|
221,492 |
9 |
% |
|
|
230,814 |
10 |
% |
|
|
232,698 |
10 |
% |
|
Time deposits |
|
420,010 |
17 |
% |
|
|
373,571 |
15 |
% |
|
|
331,251 |
13 |
% |
|
|
290,856 |
12 |
% |
|
|
287,493 |
12 |
% |
|
Total deposits |
$2,463,806 |
|
|
$2,434,083 |
|
|
$2,485,055 |
|
|
$2,427,930 |
|
|
$2,302,311 |
|
Additional Financial
Information(Dollars in thousands)(Unaudited)
|
Asset Quality |
June 30, |
|
March 31, |
|
June 30, |
|
|
|
|
2024 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
Nonaccrual loans |
$4,830 |
|
|
$5,260 |
|
|
$7,723 |
|
|
|
Loans 90 days past due and accruing |
|
17 |
|
|
|
— |
|
|
|
— |
|
|
|
Total nonperforming loans |
|
4,847 |
|
|
|
5,260 |
|
|
|
7,723 |
|
|
|
Nonperforming loans guaranteed by government |
|
— |
|
|
|
— |
|
|
|
(2,374 |
) |
|
|
Net nonperforming loans |
|
4,847 |
|
|
|
5,260 |
|
|
|
5,349 |
|
|
|
Other real estate owned |
|
— |
|
|
|
— |
|
|
|
273 |
|
|
|
Repossessed assets |
|
297 |
|
|
|
— |
|
|
|
— |
|
|
|
Nonperforming purchased receivables |
|
— |
|
|
|
183 |
|
|
|
— |
|
|
|
Net nonperforming assets |
$5,144 |
|
|
$5,443 |
|
|
$5,622 |
|
|
|
Nonperforming loans, net of government guarantees / portfolio
loans |
|
0.26 |
|
% |
|
0.29 |
|
% |
|
0.32 |
|
% |
|
Nonperforming loans, net of government guarantees / portfolio
loans, net of government guarantees |
|
0.28 |
|
% |
|
0.31 |
|
% |
|
0.34 |
|
% |
|
Nonperforming assets, net of government guarantees / total
assets |
|
0.18 |
|
% |
|
0.20 |
|
% |
|
0.21 |
|
% |
|
Nonperforming assets, net of government guarantees / total assets
net of government guarantees |
|
0.19 |
|
% |
|
0.21 |
|
% |
|
0.22 |
|
% |
|
Adversely classified loans, net of government guarantees |
$7,068 |
|
|
$7,206 |
|
|
$6,927 |
|
|
|
Special mention loans, net of government guarantees |
$8,902 |
|
|
$9,976 |
|
|
$5,882 |
|
|
|
Loans 30-89 days past due and accruing, net of government
guarantees / portfolio loans |
|
0.03 |
|
% |
|
0.03 |
|
% |
|
0.01 |
|
% |
|
Loans 30-89 days past due and accruing, net of government
guarantees / portfolio loans, net of government guarantees |
|
0.04 |
|
% |
|
0.04 |
|
% |
|
0.01 |
|
% |
|
|
|
|
|
|
|
|
|
Allowance for credit losses / portfolio loans |
|
0.94 |
|
% |
|
0.97 |
|
% |
|
0.94 |
|
% |
|
Allowance for credit losses / portfolio loans, net of government
guarantees |
|
1.01 |
|
% |
|
1.03 |
|
% |
|
1.01 |
|
% |
|
Allowance for credit losses / nonperforming loans, net of
government guarantees |
|
365 |
|
% |
|
333 |
|
% |
|
292 |
|
% |
|
|
|
|
|
|
|
|
|
Gross loan charge-offs for the quarter |
|
$— |
|
|
$25 |
|
|
$49 |
|
|
|
Gross loan recoveries for the quarter |
|
($26 |
) |
|
|
($67 |
) |
|
|
($27 |
) |
|
|
Net loan (recoveries) charge-offs for the quarter |
|
($26 |
) |
|
|
($42 |
) |
|
$22 |
|
|
|
Net loan charge-offs (recoveries) year-to-date |
|
($68 |
) |
|
|
($42 |
) |
|
|
($38 |
) |
|
|
Net loan charge-offs (recoveries) for the quarter / average loans,
for the quarter |
|
— |
|
% |
|
— |
|
% |
|
— |
|
% |
|
Net loan charge-offs (recoveries) year-to-date / average loans,
year-to-date annualized |
|
(0.01 |
) |
% |
|
(0.01 |
) |
% |
|
— |
|
% |
Additional Financial
Information(Dollars in thousands)(Unaudited)
|
Average Balances, Yields, and Rates |
|
|
|
|
|
|
|
|
| |
Three Months Ended |
| |
June 30, 2024 |
|
March 31, 2024 |
|
June 30, 2023 |
| |
|
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 |
$17,352 |
|
5.27 |
% |
|
$61,561 |
|
5.38 |
% |
|
$66,058 |
|
4.96 |
% |
|
Portfolio investments |
|
639,980 |
|
2.82 |
% |
|
|
670,937 |
|
2.82 |
% |
|
|
727,833 |
|
2.40 |
% |
|
Loans held for sale |
|
65,102 |
|
6.08 |
% |
|
|
32,635 |
|
6.13 |
% |
|
|
37,594 |
|
5.96 |
% |
|
Portfolio loans |
|
1,845,832 |
|
6.87 |
% |
|
|
1,793,425 |
|
6.75 |
% |
|
|
1,603,126 |
|
6.48 |
% |
|
Total interest-earning assets |
|
2,568,266 |
|
5.83 |
% |
|
|
2,558,558 |
|
5.69 |
% |
|
|
2,434,611 |
|
5.31 |
% |
|
Nonearning assets |
|
204,509 |
|
|
|
|
201,137 |
|
|
|
|
185,342 |
|
|
|
Total assets |
$2,772,775 |
|
|
|
$2,759,695 |
|
|
|
$2,619,953 |
|
|
| |
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders’ Equity |
|
|
|
|
|
|
|
|
|
Interest-bearing deposits |
$1,725,013 |
|
2.21 |
% |
|
$1,731,923 |
|
2.13 |
% |
|
$1,568,173 |
|
1.56 |
% |
|
Borrowings |
|
38,390 |
|
3.92 |
% |
|
|
23,944 |
|
2.95 |
% |
|
|
54,602 |
|
4.11 |
% |
|
Total interest-bearing liabilities |
|
1,763,403 |
|
2.25 |
% |
|
|
1,755,867 |
|
2.14 |
% |
|
|
1,622,775 |
|
1.65 |
% |
| |
|
|
|
|
|
|
|
|
|
Noninterest-bearing demand deposits |
|
706,339 |
|
|
|
|
705,134 |
|
|
|
|
735,615 |
|
|
|
Other liabilities |
|
58,549 |
|
|
|
|
60,407 |
|
|
|
|
34,514 |
|
|
|
Shareholders’ equity |
|
244,484 |
|
|
|
|
238,287 |
|
|
|
|
227,049 |
|
|
|
Total liabilities and shareholders’ equity |
$2,772,775 |
|
|
|
$2,759,695 |
|
|
|
$2,619,953 |
|
|
|
Net spread |
|
3.58 |
% |
|
|
3.55 |
% |
|
|
3.66 |
% |
|
NIM |
|
4.24 |
% |
|
|
4.16 |
% |
|
|
4.14 |
% |
|
NIMTE* |
|
4.30 |
% |
|
|
4.22 |
% |
|
|
4.21 |
% |
|
Cost of funds |
|
1.60 |
% |
|
|
1.53 |
% |
|
|
1.13 |
% |
|
Average portfolio loans to average interest-earning assets |
|
71.87 |
% |
|
|
|
70.10 |
% |
|
|
|
65.85 |
% |
|
|
Average portfolio loans to average total deposits |
|
75.92 |
% |
|
|
|
73.59 |
% |
|
|
|
69.59 |
% |
|
|
Average non-interest deposits to average total deposits |
|
29.05 |
% |
|
|
|
28.93 |
% |
|
|
|
31.93 |
% |
|
|
Average interest-earning assets to average interest-bearing
liabilities |
|
145.64 |
% |
|
|
|
145.71 |
% |
|
|
|
150.03 |
% |
|
The components of the change in NIMTE* are detailed
in the table below:
| |
2Q24 vs. 1Q24 |
2Q24 vs. 2Q23 |
|
Nonaccrual interest adjustments |
(0.02 |
)% |
(0.02 |
)% |
|
Interest rates on loans and liabilities and loan fees, all other
loans |
0.06 |
% |
(0.18 |
)% |
|
Volume and mix of other interest-earning assets and
liabilities |
0.04 |
% |
0.29 |
% |
|
Change in NIMTE* |
0.08 |
% |
0.09 |
% |
Additional Financial
Information(Dollars in thousands)(Unaudited)
|
Average Balances, Yields, and Rates |
|
|
|
|
|
| |
Year-to-date |
| |
June 30, 2024 |
|
June 30, 2023 |
| |
|
Average |
|
|
Average |
| |
Average |
Tax Equivalent |
|
Average |
Tax Equivalent |
| |
Balance |
Yield/Rate |
|
Balance |
Yield/Rate |
|
Assets |
|
|
|
|
|
|
Interest bearing deposits in other banks |
$39,457 |
|
5.36 |
% |
|
$98,314 |
|
4.69 |
% |
|
Portfolio investments |
|
655,458 |
|
2.82 |
% |
|
|
727,722 |
|
2.40 |
% |
|
Loans held for sale |
|
48,868 |
|
6.10 |
% |
|
|
29,294 |
|
5.80 |
% |
|
Portfolio loans |
|
1,819,629 |
|
6.81 |
% |
|
|
1,563,847 |
|
6.39 |
% |
|
Total interest-earning assets |
|
2,563,412 |
|
5.76 |
% |
|
|
2,419,177 |
|
5.21 |
% |
|
Nonearning assets |
|
202,819 |
|
|
|
|
185,545 |
|
|
|
Total assets |
$2,766,231 |
|
|
|
$2,604,722 |
|
|
| |
|
|
|
|
|
|
Liabilities and Shareholders' Equity |
|
|
|
|
|
|
Interest-bearing deposits |
$1,728,468 |
|
2.17 |
% |
|
$1,555,874 |
|
1.39 |
% |
|
Borrowings |
|
31,167 |
|
3.55 |
% |
|
|
39,567 |
|
3.74 |
% |
|
Total interest-bearing liabilities |
|
1,759,635 |
|
2.19 |
% |
|
|
1,595,441 |
|
1.44 |
% |
| |
|
|
|
|
|
|
Noninterest-bearing demand deposits |
|
705,736 |
|
|
|
|
745,795 |
|
|
|
Other liabilities |
|
59,478 |
|
|
|
|
37,772 |
|
|
|
Shareholders' equity |
|
241,382 |
|
|
|
|
225,714 |
|
|
|
Total liabilities and shareholders' equity |
$2,766,231 |
|
|
|
$2,604,722 |
|
|
|
Net spread |
|
3.57 |
% |
|
|
3.77 |
% |
|
NIM |
|
4.20 |
% |
|
|
4.18 |
% |
|
NIMTE* |
|
4.26 |
% |
|
|
4.25 |
% |
|
Cost of funds |
|
1.57 |
% |
|
|
0.98 |
% |
|
Average portfolio loans to average interest-earning assets |
|
70.98 |
% |
|
|
|
64.64 |
% |
|
|
Average portfolio loans to average total deposits |
|
74.75 |
% |
|
|
|
67.94 |
% |
|
|
Average non-interest deposits to average total deposits |
|
28.99 |
% |
|
|
|
32.40 |
% |
|
|
Average interest-earning assets to average interest-bearing
liabilities |
|
145.68 |
% |
|
|
|
151.63 |
% |
|
The components of the change in NIMTE* are detailed
in the table below:
| |
YTD24 vs.YTD23 |
|
Nonaccrual interest adjustments |
(0.01 |
)% |
|
Interest rates and loan fees |
(0.26 |
)% |
|
Volume and mix of interest-earning assets and liabilities |
0.28 |
% |
|
Change in NIMTE* |
0.01 |
% |
Additional Financial
Information(Dollars in thousands, except per share
data)(Unaudited)
|
Capital Data (At quarter end) |
|
|
|
|
|
|
| |
June 30, 2024 |
|
March 31, 2024 |
|
June 30, 2023 |
|
|
Book value per share |
$44.93 |
|
|
$43.52 |
|
|
$39.45 |
|
|
|
Tangible book value per share* |
$42.03 |
|
|
$40.61 |
|
|
$36.60 |
|
|
|
Total shareholders’ equity/total assets |
|
8.76 |
|
% |
|
8.67 |
|
% |
|
8.39 |
|
% |
|
Tangible Common Equity/Tangible Assets* |
|
8.24 |
|
% |
|
8.14 |
|
% |
|
7.83 |
|
% |
|
Tier 1 Capital / Risk Adjusted Assets |
|
11.68 |
|
% |
|
11.55 |
|
% |
|
12.13 |
|
% |
|
Total Capital / Risk Adjusted Assets |
|
12.58 |
|
% |
|
12.47 |
|
% |
|
13.02 |
|
% |
|
Tier 1 Capital / Average Assets |
|
9.17 |
|
% |
|
9.01 |
|
% |
|
9.28 |
|
% |
|
Shares outstanding |
|
5,501,562 |
|
|
|
5,499,578 |
|
|
|
5,610,841 |
|
|
|
Total unrealized loss on AFS debt securities, net of income
taxes |
|
($15,197 |
) |
|
|
($17,205 |
) |
|
|
($27,470 |
) |
|
|
Total unrealized gain on derivatives and hedging activities, net of
income taxes |
$1,212 |
|
|
$1,172 |
|
|
$1,028 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profitability Ratios |
|
|
|
|
|
|
|
|
|
|
| |
June 30, 2024 |
|
March 31, 2024 |
|
December 31, 2023 |
|
September 30, 2023 |
|
June 30, 2023 |
|
|
For the quarter: |
|
|
|
|
|
|
|
|
|
|
|
NIM |
4.24 |
% |
4.16 |
% |
4.06 |
% |
4.15 |
% |
4.14 |
% |
|
NIMTE* |
4.30 |
% |
4.22 |
% |
4.12 |
% |
4.21 |
% |
4.21 |
% |
|
Efficiency ratio |
68.78 |
% |
68.93 |
% |
72.21 |
% |
66.64 |
% |
74.03 |
% |
|
Return on average assets |
1.31 |
% |
1.19 |
% |
0.93 |
% |
1.22 |
% |
0.85 |
% |
|
Return on average equity |
14.84 |
% |
13.84 |
% |
11.36 |
% |
14.67 |
% |
9.85 |
% |
|
|
June 30, 2024 |
|
June 30, 2023 |
|
|
Year-to-date: |
|
|
|
|
|
NIM |
4.20 |
% |
4.18 |
% |
|
NIMTE* |
4.26 |
% |
4.25 |
% |
|
Efficiency ratio |
68.85 |
% |
76.19 |
% |
|
Return on average assets |
1.25 |
% |
0.81 |
% |
|
Return on average equity |
14.35 |
% |
9.30 |
% |
*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 2024 and 2023. 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 |
| |
June 30, 2024 |
|
March 31, 2024 |
|
December 31, 2023 |
|
September 30, 2023 |
|
June 30, 2023 |
|
Net interest income |
$27,053 |
|
|
$26,447 |
|
|
$26,732 |
|
|
$26,350 |
|
|
$25,142 |
|
|
Divided by average interest-bearing assets |
|
2,568,266 |
|
|
|
2,558,558 |
|
|
|
2,612,297 |
|
|
|
2,516,126 |
|
|
|
2,434,611 |
|
|
Net interest margin (“NIM”)2 |
|
4.24 |
% |
|
|
4.16 |
% |
|
|
4.06 |
% |
|
|
4.15 |
% |
|
|
4.14 |
% |
| |
|
|
|
|
|
|
|
|
|
|
Net interest income |
$27,053 |
|
|
$26,447 |
|
|
$26,732 |
|
|
$26,350 |
|
|
$25,142 |
|
| Plus: reduction in tax expense
related to tax-exempt interest income |
|
378 |
|
|
|
379 |
|
|
|
374 |
|
|
|
373 |
|
|
|
400 |
|
|
|
$27,431 |
|
|
$26,826 |
|
|
$27,106 |
|
|
$26,723 |
|
|
$25,542 |
|
|
Divided by average interest-bearing assets |
|
2,568,266 |
|
|
|
2,558,558 |
|
|
|
2,612,297 |
|
|
|
2,516,126 |
|
|
|
2,434,611 |
|
|
NIMTE2 |
|
4.30 |
% |
|
|
4.22 |
% |
|
|
4.12 |
% |
|
|
4.21 |
% |
|
|
4.21 |
% |
| |
Year-to-date |
| |
June 30, 2024 |
|
June 30, 2023 |
|
Net interest income |
$53,500 |
|
|
$50,174 |
|
|
Divided by average interest-bearing assets |
|
2,563,412 |
|
|
|
2,419,177 |
|
|
Net interest margin ("NIM")3 |
|
4.20 |
% |
|
|
4.18 |
% |
| |
|
|
|
|
Net interest income |
$53,500 |
|
|
$50,174 |
|
| Plus: reduction in tax expense
related to tax-exempt interest income |
|
757 |
|
|
|
829 |
|
|
|
$54,257 |
|
|
$51,003 |
|
|
Divided by average interest-bearing assets |
|
2,563,412 |
|
|
|
2,419,177 |
|
|
NIMTE3 |
|
4.26 |
% |
|
|
4.25 |
% |
2Calculated using actual days in the quarter
divided by 366 for the quarters ended in 2024 and 365 for the
quarters ended in 2023, respectively.
3Calculated using actual days in the year divided
by 366 for year-to-date period in 2024 and 365 for year-to-date
period in 2023, respectively.
*Non-GAAP Financial Measures
(Dollars and shares in thousands, except per share
data)(Unaudited)
Tangible Book Value Per Share
Tangible book value per share is a non-GAAP measure
defined as shareholders’ equity, less intangible assets, divided by
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.
| |
June 30, 2024 |
|
March 31, 2024 |
|
December 31, 2023 |
|
September 30, 2023 |
|
June 30, 2023 |
| |
|
|
|
|
|
|
|
|
|
|
Total shareholders’ equity |
$247,200 |
|
$239,327 |
|
$234,718 |
|
$225,259 |
|
$221,336 |
|
Divided by shares outstanding |
|
5,502 |
|
|
5,500 |
|
|
5,513 |
|
|
5,548 |
|
|
5,611 |
|
Book value per share |
$44.93 |
|
$43.52 |
|
$42.57 |
|
$40.60 |
|
$39.45 |
| |
June 30, 2024 |
|
March 31, 2024 |
|
December 31, 2023 |
|
September 30, 2023 |
|
June 30, 2023 |
| |
|
|
|
|
|
|
|
|
|
|
Total shareholders’ equity |
$247,200 |
|
$239,327 |
|
$234,718 |
|
$225,259 |
|
$221,336 |
|
Less: goodwill and intangible assets |
|
15,967 |
|
|
15,967 |
|
|
15,967 |
|
|
15,973 |
|
|
15,977 |
| |
$231,233 |
|
$223,360 |
|
$218,751 |
|
$209,286 |
|
$205,359 |
|
Divided by shares outstanding |
|
5,502 |
|
|
5,500 |
|
|
5,513 |
|
|
5,548 |
|
|
5,611 |
|
Tangible book value per share |
$42.03 |
|
$40.61 |
|
$39.68 |
|
$37.72 |
|
$36.60 |
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. |
June 30, 2024 |
|
March 31, 2024 |
|
December 31, 2023 |
|
September 30, 2023 |
|
June 30, 2023 |
| |
|
|
|
|
|
|
|
|
|
|
Total shareholders’ equity |
$247,200 |
|
|
$239,327 |
|
|
$234,718 |
|
|
$225,259 |
|
|
$221,336 |
|
|
Total assets |
|
2,821,668 |
|
|
|
2,759,560 |
|
|
|
2,807,497 |
|
|
|
2,790,189 |
|
|
|
2,638,207 |
|
|
Total shareholders’ equity to total assets |
|
8.76 |
% |
|
|
8.67 |
% |
|
|
8.36 |
% |
|
|
8.07 |
% |
|
|
8.39 |
% |
|
Northrim BanCorp, Inc. |
June 30, 2024 |
|
March 31, 2024 |
|
December 31, 2023 |
|
September 30, 2023 |
|
June 30, 2023 |
|
Total shareholders’ equity |
$247,200 |
|
|
$239,327 |
|
|
$234,718 |
|
|
$225,259 |
|
|
$221,336 |
|
|
Less: goodwill and other intangible assets, net |
|
15,967 |
|
|
|
15,967 |
|
|
|
15,967 |
|
|
|
15,973 |
|
|
|
15,977 |
|
|
Tangible common shareholders’ equity |
$231,233 |
|
|
$223,360 |
|
|
$218,751 |
|
|
$209,286 |
|
|
$205,359 |
|
| |
|
|
|
|
|
|
|
|
|
|
Total assets |
$2,821,668 |
|
|
$2,759,560 |
|
|
$2,807,497 |
|
|
$2,790,189 |
|
|
$2,638,207 |
|
|
Less: goodwill and other intangible assets, net |
|
15,967 |
|
|
|
15,967 |
|
|
|
15,967 |
|
|
|
15,973 |
|
|
|
15,977 |
|
|
Tangible assets |
$2,805,701 |
|
|
$2,743,593 |
|
|
$2,791,530 |
|
|
$2,774,216 |
|
|
$2,622,230 |
|
|
Tangible common equity ratio |
|
8.24 |
% |
|
|
8.14 |
% |
|
|
7.84 |
% |
|
|
7.54 |
% |
|
|
7.83 |
% |
Note Transmitted on GlobeNewswire on July 24, 2024,
at 12:15 pm Alaska Standard Time.
|
Contact: |
Mike Huston, President, CEO, and COO |
| |
(907) 261-8750 |
| |
Jed Ballard, Chief Financial Officer |
| |
(907) 261-3539 |
Grafico Azioni Northrim BanCorp (NASDAQ:NRIM)
Storico
Da Gen 2025 a Feb 2025
Grafico Azioni Northrim BanCorp (NASDAQ:NRIM)
Storico
Da Feb 2024 a Feb 2025
