This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Northrim BanCorp Profits Increased 14% To $2.1 Million, Or $0.33 Per Share, In 2Q10

The efficiency ratio during the second quarter of 2010 was 68.63%, compared to 71.21% in the first quarter of 2010 and 68.22% in the second quarter a year ago.  The efficiency ratio, calculated by dividing noninterest expense, excluding intangible asset amortization expense, by net interest income and noninterest income, measures overhead costs as a percentage of total revenues.

About Northrim BanCorp

Northrim BanCorp, Inc. is the parent company of Northrim Bank, a commercial bank that provides personal and business banking services through locations in Anchorage, Eagle River, Wasilla, and Fairbanks, Alaska, and an asset based lending division in Washington.  The bank differentiates itself with a "Customer First Service" philosophy. Affiliated companies include Elliott Cove Capital Management, LLC; Residential Mortgage, LLC; Northrim Benefits Group, LLC; and Pacific Wealth Advisors, LLC.  In June 2010, Northrim Bancorp was added to the Russell 2000 Index, a subset of the Russell 3000 Index.  Both indices are widely used by professional money managers as benchmarks for investment strategies.                                                                www.northrim.com

The Northrim BanCorp, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=3818

Sources include the State of Alaska Department of Labor. 

 

Income Statement          
(Dollars in thousands, except per share data) Three Months Ending
(Unaudited)   June 30, March 31, Three Month June 30,  One Year
    2010 2010 % Change 2009 % Change
Interest Income:            
Interest and fees on loans $11,212 $11,422 -2% $12,396 -10%
Interest on portfolio investments  1,315  1,329 -1%  1,043 26%
Interest on overnight investments  42  23 83%  16 163%
Total interest income  12,569 $12,774 -2%  13,455 -7%
Interest Expense:          
Interest expense on deposits 1,265 1,275 -1% 1,423 -11%
Interest expense on borrowings 201 195 3% 366 -45%
Total interest expense 1,466 1,470 0% 1,789 -18%
Net interest income 11,103 11,304 -2% 11,666 -5%
             
Provision for loan losses 1,375 1,375 0% 2,117 -35%
Net interest income after provision for loan losses 9,728 9,929 -2% 9,549 2%
             
Other Operating Income:          
Service charges on deposit accounts 762 700 9% 775 -2%
Purchased receivable income 595 314 89% 474 26%
Employee benefit plan income 530 421 26% 447 19%
Electronic banking income 435 400 9% 351 24%
OREO sale and rental income 383 270 42% 124 209%
Equity in earnings (loss) from mortgage affiliate 182 (73) 349% 764 -76%
Gain on sale of securities 132 281 -53%  196 -33%
Other income   586 550 7% 519 13%
Total other operating income 3,605 2,863 26% 3,650 -1%
             
Other Operating Expense:          
Salaries and other personnel expense   5,402  5,620 -4%  5,708 -5%
Occupancy expense  897  919 -2%  897 0%
Marketing expense  439  439 0%  316 39%
Insurance expense  422  558 -24%  959 -56%
OREO expense, including impairment  343  372 -8%  448 -23%
Professional and outside services  323  242 33%  414 -22%
Equipment expense  244  273 -11%  257 -5%
Purchased receivable losses  406  1 40500%  -- NA
Intangible asset amortization expense  77  76 1%  83 -7%
Other expense    1,618  1,664 -3%  1,450 12%
Total other operating expense  10,171  10,164 0%  10,532 -3%
             
Income before provision for income taxes   3,162  2,628 20%  2,667 19%
Provision for income taxes  912  702 30%  681 34%
Net income    2,250  1,926 17%  1,986 13%
Less: Net income attributable to the noncontrolling interest  110  26 323%  109 1%
 Net income attributable to Northrim BanCorp $2,140 $1,900 13% $1,877 14%
             
             
Basic EPS   $0.34 $0.30 13% $0.29 17%
Diluted EPS   $0.33 $0.29 14% $0.29 14%
Average basic shares 6,386,925 6,385,760 0% 6,396,341 0%
Average diluted shares 6,473,622 6,468,310 0% 6,402,502 1%

 

Income Statement  
(Dollars in thousands, except per share data) Six Months Ended June 30:
(Unaudited)     One Year
  2010 2009 % Change
Interest Income:      
Interest and fees on loans $22,634 $24,454 -7%
Interest on portfolio investments  2,644  2,255 17%
Interest on overnight investments  65  33 97%
Total interest income  25,343  26,742 -5%
Interest Expense:      
Interest expense on deposits 2,540 3,144 -19%
Interest expense on borrowings 396 756 -48%
Total interest expense 2,936 3,900 -25%
Net interest income 22,407 22,842 -2%
       
Provision for loan losses 2,750 3,492 -21%
Net interest income after provision for loan losses 19,657 19,350 2%
       
Other Operating Income:      
Service charges on deposit accounts 1,462 1,478 -1%
Employee benefit plan income 951 813 17%
Purchased receivable income 909 1,232 -26%
Electronic banking Income 835 661 26%
OREO sale and rental income 653 240 172%
Gain on sale of securities 413 196 111%
Equity in earnings from mortgage affiliate 109 1,612 -93%
Other income 1,136 1,000 14%
Total other operating income 6,468 7,232 -11%
       
Other Operating Expense:      
Salaries and other personnel expense   11,022  11,159 -1%
Occupancy, net  1,816  1,812 0%
Insurance Expense  980  1,764 -44%
Marketing expense  878  634 38%
OREO expense, including impairment  715  844 -15%
Professional and outside services  565  959 -41%
Equipment expense  517  520 -1%
Intangible asset amortization expense  153  165 -7%
Purchased receivable losses  407  (16) 2644%
Other expense  3,282  3,211 2%
Total other operating expense  20,335  21,052 -3%
       
Income before income taxes   5,790  5,530 5%
Provision for income taxes  1,614  1,508 7%
Net income  4,176  4,022 4%
Less: Net income attributable to the noncontrolling interest  136  190 -28%
 Net income attributable to Northrim BanCorp $4,040 $3,832 5%
       
Basic EPS $0.63 $0.60 5%
Diluted EPS $0.62 $0.60 3%
Average basic shares 6,386,343 6,394,965 0%
Average diluted shares 6,470,966 6,398,045 1%

 

Balance Sheet          
(Dollars in thousands, except per share data)        
(Unaudited) June 30, March 31,  Three Month June 30, One Year
  2010 2010 % Change 2009 % Change
           
Assets:          
Cash and due from banks $22,316 $18,920 18% $23,509 -5%
Overnight investments  82,749  59,259 40%  43,142 92%
Portfolio investments  177,050  173,686 2%  136,697 30%
           
Loans:          
Commercial loans  244,291  248,732 -2%  266,227 -8%
Commercial real estate  290,122  298,887 -3%  294,249 -1%
Construction loans  49,122  54,238 -9%  79,464 -38%
Consumer loans  47,202  47,391 0%  47,266 0%
Other loans  134  246 -46%  248 -46%
Unearned loan fees  (2,498)  (2,577) -3%  (2,557) -2%
Total portfolio loans  628,373  646,917 -3%  684,897 -8%
Loans held for sale  8,210  -- NA  3,426 140%
Total loans  636,583  646,917 -2%  688,323 -8%
Allowance for loan losses  (14,427)  (14,046) 3%  (13,187) 9%
Net loans  622,156  632,871 -2%  675,136 -8%
Purchased receivables, net  10,754  6,962 54%  9,822 9%
Premises and equipment, net  27,932  28,140 -1%  29,171 -4%
Goodwill and intangible assets  8,843  8,920 -1%  9,156 -3%
Other real estate owned  12,973  16,065 -19%  11,576 12%
Other assets  42,391  43,733 -3%  37,484 13%
Total assets $1,007,164 $988,556 2% $975,693 3%
           
Liabilities:          
Demand deposits $272,743 $260,817 5% $253,118 8%
Interest-bearing demand  120,826  120,373 0%  112,385 8%
Savings deposits  71,167  70,033 2%  61,331 16%
Alaska CDs  113,692  111,019 2%  104,906 8%
Money market deposits  126,841  126,156 1%  119,944 6%
Time deposits  146,216  146,657 0%  167,457 -13%
Total deposits  851,485  835,055 2%  819,141 4%
Securities sold under repurchase agreements  8,871  8,997 -1%  4,633 91%
Other borrowings   5,532  5,594 -1%  16,225 -66%
Junior subordinated debentures  18,558  18,558 0%  18,558 0%
Other liabilities 8,694 7,938 10% 9,089 -4%
Total liabilities 893,140 876,142 2% 867,646 3%
           
Shareholders' Equity:          
Northrim BanCorp shareholders' equity 113,981 112,411 1% 108,015 6%
Noncontrolling interest 43 3 1333% 32 34%
Total shareholders' equity  114,024 112,414 1% 108,047 6%
Total liabilities and shareholders' equity $1,007,164 $988,556 2% $975,693 3%
       
       
Financial Ratios and Other Data      
(Dollars in thousands, except per share data)      
(Unaudited) June 30, March 31, June 30,
  2010 2010 2009
Asset Quality:      
Nonaccrual loans $14,413 $13,950 $18,111
Loans 90 days past due  1,000  1,614  1,893
Total nonperforming loans  15,413  15,564  20,004
Other real estate owned  12,973  16,065  11,576
Total nonperforming assets $28,386 $31,629 $31,580
Nonperforming loans / portfolio loans 2.45% 2.41% 2.92%
Nonperforming assets / assets 2.82% 3.20% 3.24%
Allowance for loan losses / portfolio loans 2.30% 2.17% 1.93%
Allowance / nonperforming loans 93.60% 90.25% 65.92%
Gross loan charge-offs for the quarter $1,136 $950 $2,399
Gross loan recoveries for the quarter $142 $513 $104
Net loan charge-offs for the quarter $994 $437 $2,295
Net Loan charge-offs year-to-date $1,431 $437 $3,205
Net loan charge-offs for the quarter / average loans, quarter 0.16% 0.07% 0.33%
Net loan charge-offs year-to-date / average loans, annualized 0.45% 0.27% 0.91%
       
Capital Data (At quarter end):      
Book value per share $17.85 $17.60 $17.04
Tangible book value per share $16.46 $16.20 $15.60
Tangible Common Equity/Tangible Assets 1 10.53% 10.56% 10.23%
Tier 1 Capital / Risk Adjusted Assets 14.77% 14.31% 13.50%
Total Capital / Risk Adjusted Assets 16.02% 15.57% 14.76%
Tier 1 Capital / Average Assets 12.52% 12.61% 12.21%
Shares outstanding 6,386,925 6,386,925 6,338,138
Unrealized gain on AFS securities, net of income taxes $1,242 $1,295 $1,406
       
Profitability Ratios (For the quarter):      
Net interest margin (tax equivalent) 5.06% 5.34% 5.48%
Efficiency ratio 3 68.63% 71.21% 68.22%
Return on average assets 0.86% 0.79% 0.78%
Return on average equity 7.52% 6.84% 6.96%
       
Profitability Ratios (Year-to-date):      
Net interest margin (tax equivalent) 2 5.20% 5.34% 5.34%
Efficiency ratio 3 69.89% 71.21% 69.45%
Return on average assets 0.83% 0.77% 0.79%
Return on average equity 7.19% 6.70% 7.20%
       
1 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.  This ratio has received more attention over the past several years from stock analysts and regulators.  The GAAP measure of assets to equity would be total assets to total equity.  Total equity to total assets was 11.32% at June 30, 2010 as compared to 11.37% at March 31, 2010 and 11.07% at June 30, 2009.
       
2 Tax-equivalent net interest margin 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 41.11% in both 2010 and 2009, respectively. 
       
3 The efficiency ratio is a non-GAAP ratio that is calculated by dividing non-interest expense, exclusive of intangible asset amortization, by the sum of net interest income and non-interest income. 
         
         
Average Balances        
(Dollars in thousands, except per share data)      
(Unaudited)          
  June 30, March 31, Three Month June 30, One Year
  2010 2010 % Change 2009 % Change
         
Average Quarter Balances        
Total loans $635,810 $648,670 -2% $698,242 -9%
Total earning assets  885,059  863,786 2%  860,161 3%
Total assets  993,460  973,030 2%  965,478 3%
           
Noninterest-bearing deposits  259,799  242,630 7%  243,299 7%
Interest-bearing deposits  578,875  577,496 0%  566,712 2%
Total deposits  838,674  820,126 2%  810,011 4%
           
Shareholders' equity  114,143  112,590 1%  108,247 5%
           
           
Average Year-to-date Balances - unaudited      
Loans $642,204 $648,670 -1% $701,895 -9%
Total earning assets  874,482  863,786 1%  868,532 1%
Total assets  983,302  973,030 1%  977,717 1%
           
Noninterest-bearing deposits  251,262  242,630 4%  225,948 11%
Interest-bearing deposits  578,189  577,496 0%  597,941 -3%
Total deposits  829,451  820,126 1%  823,889 1%
           
Shareholders' equity  113,371  112,590 1%  107,375 6%

This release may contain "forward-looking statements" that are subject to 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 and 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 or management, are intended to help identify forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  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 our ability to maintain or expand our market share or net interest margins, and to implement our marketing and growth strategies.  Further, actual results may be affected by our ability to compete 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 as those factors relate to our cost of funds and return on assets.  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 our other filings with the SEC.  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.

CONTACT:  Northrim BanCorp, Inc.
          Joe Schierhorn, Chief Financial Officer
          (907) 261-3308

Northrim BanCorp, Inc. Logo

8 of 8

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,979.13 +59.54 0.35%
S&P 500 1,986.51 +4.91 0.25%
NASDAQ 4,526.4820 -1.0320 -0.02%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs