ANCHORAGE, Alaska, Jan. 25, 2011 (GLOBE NEWSWIRE) -- Northrim BanCorp, Inc. (Nasdaq:NRIM) (Northrim), the bank holding company for Northrim Bank, today reported its full year net income increased 17% to $9.1 million, or $1.40 per diluted share, reflecting continuing improvement in credit quality, increased gains from sales of other real estate owned (OREO), and lower expenses. Northrim earned $7.7 million, or $1.20 per share in 2009. In the fourth quarter of 2010, net income was $1.8 million, or $0.28 per diluted share, and in the fourth quarter a year ago it was $1.9 million, or $0.30 per diluted share.
Financial Highlights (at or for the periods ended December 31, 2010, compared to September 30, 2010, and December 31, 2009)
- Northrim continued to maintain strong capital ratios with Tier 1 Capital/risk adjusted assets of 14.08% as compared to 14.46% in the immediate prior quarter and 13.98% a year ago. Northrim's tangible common equity to tangible assets at year end was 10.36%, up from 10.26% a year earlier.
- Nonperforming assets were reduced 37% year-over-year to $21.8 million or 2.07% of total assets, compared to $34.8 million or 3.47% of total assets at December 31, 2009 and 12.8% compared to $25.0 million, or 2.41% of total assets at September 30, 2010.
- Book value was $18.21 per share and tangible book value was $16.86 per share, up from $17.42 and $16.01, respectively, a year earlier.
- The allowance for loan losses totaled 2.14% of total portfolio loans at December 31, 2010, compared to 2.00% at December 31, 2009. The allowance for loan losses to nonperforming loans also increased to 126.21% from 74.94% a year ago.
- Other operating income, which includes revenues from service charges, electronic banking, and financial services affiliates, accounted for approximately 24% and 22% of fourth quarter and full year total revenues, respectively.
- The cash dividend paid on December 17, 2010, rose 20% to $0.12 per diluted share from $0.10 per diluted share paid in the fourth quarter of 2009.
"The continuing improvement in asset quality, growing operational efficiencies and solid contributions from our affiliated financial services business produced a profitable year in 2010," said Marc Langland, Chairman, President and CEO. "While Alaska has avoided much of the turmoil from the economic downturn of the past two years, we are still seeing soft loan demand as businesses remain cautious. We are investing in marketing our brand to build awareness in our markets and are working to gain loan volume in 2011."