Alaska Economic Update
"Throughout this economic cycle, Alaska has fared far better than the rest of the country, and we continue to benefit from the strong contribution from natural resources, tourism and government operations," said Chris Knudson, Chief Operating Officer. "There are now two competing proposals for a gas pipeline from the oil and gas fields in northern Alaska to the lower 48 states. If either of these proposals proceeds, the projected investment in this project is expected to exceed $30 billion and may bring many jobs to the state. However, discussions for this project have been ongoing for years, and we are still a long way from breaking ground."
Through June of 2010, reports from the State of Alaska Department of Labor indicate that employment in Alaska increased by 1% over last year. Also, as of June 2010, the Alaska unemployment rate was 7.9% as compared to 9.5% for the United States as a whole.
Northrim Bank recently launched the Alaskanomics blog to provide news, analysis and commentary on Alaska's economy. With contributions from economists, business leaders, policy makers and everyday Alaskans, Alaskanomics aims to engage readers in an ongoing conversation about our economy, now and in the future. Join the conversation at Alaskanomics.com for more information on the Alaska economy by visiting www.northrim.com and click on the "About Alaska" tab.Asset Quality and Balance Sheet Review Northrim's total assets grew 2% to $1.01 billion at June 30, 2010, from $989 million at March 31, 2010, and 3% from $976 million at June 30, 2009, with an increase in overnight and portfolio investments offsetting continuing maturities in the construction loan portfolio and lower levels of commercial loans. The loan portfolio decreased 8% in the second quarter to $628 million from $685 million a year ago. The loan portfolio shows that about 86% of the customers are located in the greater Anchorage area and 14% are in the Fairbanks area.