Northrim BanCorp, Inc. (NASDAQ: NRIM) today reported net profits of $3.1 million, or $0.48 per diluted share, in the second quarter of 2012, compared to $2.6 million, or $0.39 per diluted share in the preceding quarter and $3.2 million or $0.49 per diluted share in the second quarter a year ago. Loan growth, increasing contributions from affiliated businesses, and continued improvements in loan quality generated solid profitability in the second quarter and in the first six months of 2012, compared to similar periods in 2011. For the first six months of 2012, Northrim earned $5.7 million, or $0.87 per diluted share, up from $5.6 million, or $0.86 per diluted share in the first half of 2011.
“Steady growth in shareholders’ equity along with more than 17 years of regular dividend payments have provided good returns to our shareholders over the long-term,” said Marc Langland, Chairman, President and CEO of Northrim BanCorp, Inc.
Financial Highlights (at or for the period ended June 30, 2012, compared to March 31, 2012, and June 30, 2011)
- Diluted earnings per share in the second quarter of 2012 were $0.48, compared to $0.39 per diluted share in the quarter ended March 31, 2012, and $0.49 per diluted share in the quarter ended June 30, 2011.
- Northrim paid a quarterly cash dividend of $0.13 per share in the second quarter of 2012, compared to a quarterly cash dividend of $0.12 per share in the second quarter of 2011, which provides a yield of approximately 2.4% at current market share prices.
- Tangible book value was $18.86 per share at quarter end, an increase through retained earnings of 7% from $17.63 per share a year ago.
- Pretax net income increased to $4.8 million in the second quarter of 2012, compared to $3.7 million in the quarter ended March 31, 2012 and $4.5 million in the quarter ended June 30, 2011. For the first six months of 2012, pretax net income increased 6% to $8.6 million, compared to $8.1 million in the first six months of 2011.
- Other operating income, which includes revenues from financial services affiliates, service charges, and electronic banking, contributed 26.2% to second quarter 2012 total revenues, compared to contributions of 23.6% to total revenues in the preceding quarter and 22.5% to second quarter 2011 total revenues.
- Asset quality improved with nonperforming assets declining to $12.5 million, or 1.16% of total assets at June 30, 2012, compared to $13.5 million, or 1.25% of total assets at the end of March 2012 and $15.0 million, or 1.43% of total assets a year ago.
- The allowance for loan losses totaled 2.51% of gross loans at June 30, 2012, compared to 2.45% at the end of the first quarter of 2012 and 2.46% a year ago. The allowance for loan losses to nonperforming loans also increased to 274.2% at June 30, 2012, from 238.8% in the preceding quarter and 158.0% a year ago.
- Second quarter 2012 net interest margin (NIM) was 4.51%, down 2 basis points from the first quarter of 2012 and down 14 basis points from the year ago quarter.
- Northrim remains well-capitalized with Tier 1 Capital to Risk Adjusted Assets at June 30, 2012, of 15.44%, compared to 15.04% at the end of the prior quarter and 15.59% a year ago. Tangible common equity to tangible assets was 11.47% at June 30, 2012, up from 11.21% in the preceding quarter and 10.90% a year ago.
- Northrim was added to the U.S. Small-Cap Russell 2000 ® Index after the Russell Investment Group reconstituted its comprehensive set of U.S. and global equity indexes in June of this year. Membership in the Russell 2000, which remains in place for one year, is based on membership in the broad-market Russell 3000 ® Index.
“Our “100% 907” marketing campaign (based on the Alaska area code of 907) got off to a great start this quarter,” said Joe Beedle, President and CEO of Northrim Bank. “We continue to differentiate Northrim Bank as the bank founded by Alaskans to serve Alaskan businesses and families.”
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