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Northrim BanCorp Earns $4.1 Million, Or $0.62 Per Diluted Share, In Third Quarter Of 2012

Stocks in this article: NRIM

Sources: http://www.labor.state.ak.us/trends/oct12.pdf

http://www.muni.org/Departments/OCPD/development/BSD/Permit%20Activity%20Reports/sept2012summary.pdf

Income Statement

         
(Dollars in thousands, except per share data) Three Months Ended      
(Unaudited) September 30, June 30, Three Month September 30, One Year
2012   2012   % Change   2011   % Change
Interest Income:
Interest and fees on loans $ 10,416 $ 10,305 1 % $ 10,392 0 %
Interest on portfolio investments 708 755 -6 % 766 -8 %
Interest on deposits in banks   80       63   27 %     72     11 %
Total interest income 11,204 11,123 1 % 11,230 0 %
Interest Expense:
Interest expense on deposits 408 423 -4 % 671 -39 %
Interest expense on borrowings   203       204   0 %     205     -1 %
Total interest expense   611       627   -3 %     876     -30 %
Net interest income 10,593 10,496 1 % 10,354 2 %
 
Provision (benefit) for loan losses   (1,437 )     89   -1,715 %     550     -361 %
Net interest income after provision for loan losses 12,030 10,407 16 % 9,804 23 %
 
Other Operating Income:
Purchased receivable income 826 712 16 % 695 19 %
Employee benefit plan income 609 616 -1 % 536 14 %
Service charges on deposit accounts 536 569 -6 % 609 -12 %
Electronic banking income 520 493 5 % 508 2 %
Equity in earnings from mortgage affiliate 963 405 138 % 357 170 %
Gain on sale of securities 0 246 -100 % 33 -100 %
Other income   703       684   3 %     624     13 %
Total other operating income 4,157 3,725 12 % 3,362 24 %
 
Other Operating Expense:
Salaries and other personnel expense 5,484 5,154 6 % 5,230 5 %
Occupancy expense 842 920 -8 % 914 -8 %
Marketing expense 436 435 0 % 435 0 %
Professional and outside services 427 287 49 % 370 15 %
Equipment expense 257 342 -25 % 291 -12 %
Insurance expense 236 301 -22 % 391 -40 %
OREO expense, rental income and gains on sale, net 249 118 111 % (14 ) 1,879 %
Reserve for Purchased Receivables 349 - NA - NA
Intangible asset amortization expense 64 65 -2 % 70 -9 %
Other expense   1,648       1,673   -1 %     1,742     -5 %
Total other operating expense 9,992 9,295 7 % 9,429 6 %
 
Income before provision for income taxes   6,195       4,837   28 %     3,737     66 %
Provision for income taxes   1,991       1,551   28 %     1,125     77 %
Net income   4,204       3,286   28 %     2,612     61 %
Less: Net income attributable to the noncontrolling interest   138       144   -4 %     106     30 %
Net income attributable to Northrim BanCorp $ 4,066     $ 3,142   29 %   $ 2,506     62 %
 
 
Basic EPS $ 0.63 $ 0.49 29 % $ 0.39 62 %
Diluted EPS $ 0.62 $ 0.48 29 % $ 0.38 63 %
Average basic shares 6,471,572 6,469,909 0 % 6,436,178 1 %
Average diluted shares 6,570,772 6,573,729 0 % 6,554,776 0 %

Income Statement

       
(Dollars in thousands, except per share data) Nine Months Ended September 30,
(Unaudited) One Year
2012   2011   % Change
Interest Income:
Interest and fees on loans $ 30,946 $ 31,788 -3 %
Interest on portfolio investments 2,250 2,420 -7 %
Interest on deposits in banks   183       160     14 %
Total interest income 33,379 34,368 -3 %
Interest Expense:
Interest expense on deposits 1,315 2,152 -39 %
Interest expense on borrowings   621       605     3 %
Total interest expense   1,936       2,757     -30 %
Net interest income 31,443 31,611 -1 %
 
Provision (benefit) for loan losses   (1,259 )     1,649     -176 %
Net interest income after provision for loan losses 32,702 29,962 9 %
 
Other Operating Income:
Purchased receivable income 2,250 1,886 19 %
Employee benefit plan income 1,765 1,629 8 %
Service charges on deposit accounts 1,673 1,727 -3 %
Electronic banking Income 1,496 1,424 5 %
Equity in earnings from mortgage affiliate 1,669 575 190 %
Gain on sale of securities 273 296 -8 %
Other income   1,963       1,673     17 %
Total other operating income 11,089 9,210 20 %
 
Other Operating Expense:
Salaries and other personnel expense 16,344 15,746 4 %
Occupancy expense 2,758 2,821 -2 %
Marketing expense 1,308 1,315 -1 %
Professional and outside services 1,103 1,045 6 %
Equipment expense 893 887 1 %
Insurance expense 655 1,122 -42 %
OREO expense, rental income and gains on sale, net 464 (895 ) 152 %
Reserve for Purchased Receivables 349 - NA
Intangible asset amortization expense 193 211 -9 %
Other expense   4,978       5,092     -2 %
Total other operating expense 29,045 27,344 6 %
 
Income before provision for income taxes   14,746       11,828     25 %
Provision for income taxes   4,568       3,357     36 %
Net income   10,178       8,471     20 %
Less: Net income attributable to the noncontrolling interest   394       328     20 %
Net income attributable to Northrim BanCorp $ 9,784       8,143     20 %
 
Basic EPS $ 1.51 $ 1.27 19 %
Diluted EPS $ 1.49 $ 1.24 20 %
Average basic shares 6,469,673 6,431,989 1 %
Average diluted shares 6,570,287 6,553,462 0 %

Balance Sheet

           
(Dollars in thousands)
(Unaudited) September 30, June 30, Three Month September 30, One Year
2012   2012   % Change   2011   % Change
 
Assets:
Cash and due from banks $ 34,753 $ 34,560 1 % $ 34,365 1 %
Interest bearing deposits in other banks 127,354 76,144 67 % 94,205 35 %
Portfolio investments 177,078 194,851 -9 % 218,207 -19 %
 
Loans:
Loans held for sale 37,291 22,629 65 % - NA
Portfolio loans
Commercial loans 251,195 240,395 4 % 228,538 10 %
Commercial real estate 339,436 340,530 0 % 316,463 7 %
Construction loans 47,333 40,922 16 % 45,984 3 %
Consumer loans 37,029 38,260 -3 % 41,609 -11 %
Unearned loan fees, net   (3,349 )     (3,257 )   3 %     (2,930 )   14 %
Total portfolio loans 671,644 656,850 2 % 629,664 7 %
Total loans 708,935 679,479 4 % 629,664 13 %
Allowance for loan losses   (16,490 )     (16,490 )   0 %     (16,093 )   2 %
Net loans 692,445 662,989 4 % 613,571 13 %
Purchased receivables, net 23,326 23,650 -1 % 25,536 -9 %
Other real estate owned 5,766 6,448 -11 % 5,838 -1 %
Premises and equipment, net 27,989 27,797 1 % 28,320 -1 %
Goodwill and intangible assets 8,228 8,292 -1 % 8,486 -3 %
Other assets   36,859       37,346     -1 %     37,083     -1 %
Total assets $ 1,133,798     $ 1,072,077     6 %   $ 1,065,611     6 %
 
Liabilities:
Demand deposits $ 352,633 $ 298,953 18 % $ 307,529 15 %
Interest-bearing demand 137,333 139,220 -1 % 133,495 3 %
Savings deposits 85,035 83,100 2 % 76,847 11 %
Alaska CDs 98,504 102,481 -4 % 95,481 3 %
Money market deposits 171,210 164,942 4 % 153,924 11 %
Time deposits   100,229       106,077     -6 %     126,291     -21 %
Total deposits 944,944 $ 894,773 6 % 893,567 6 %
Securities sold under repurchase agreements 22,623 15,265 48 % 17,034 33 %
Other borrowings 4,517 4,553 -1 % 4,662 -3 %
Junior subordinated debentures 18,558 18,558 0 % 18,558 0 %
Other liabilities   9,045       8,503     6 %     8,445     7 %
Total liabilities 999,687 941,652 6 % 942,266 6 %
 
Shareholders' Equity:
Northrim BanCorp shareholders' equity   134,006       130,348     3 %     123,282     9 %
Noncontrolling interest   105       77     36 %     63     67 %
Total shareholders' equity   134,111       130,425     3 %     123,345     9 %
Total liabilities and shareholders' equity $ 1,133,798     $ 1,072,077     6 %   $ 1,065,611     6 %

Financial Ratios and Other Data

     
(Dollars in thousands)
(Unaudited) September 30, June 30, September 30,
2012   2012   2011
Asset Quality:
Nonaccrual loans $ 4,887 $ 5,922 $ 7,866
Loans 90 days past due   -       91       -  
Total nonperforming loans 4,887 6,013 7,866
Other real estate owned 5,766 6,448 5,838
Repossessed assets   -       -       48  
Total nonperforming assets $ 10,653     $ 12,461     $ 13,752  
Performing restructured loans $ 7,879 $ 8,143 $ 2,577
Nonperforming loans / portfolio loans 0.73 % 0.92 % 1.25 %
Nonperforming assets / total assets 0.94 % 1.16 % 1.29 %
Allowance for loan losses / portfolio loans 2.46 % 2.51 % 2.56 %
Allowance for loan losses / nonperforming loans 337.43 % 274.24 % 204.59 %
Gross loan charge-offs for the quarter $ 68 $ 128 $ 354
Gross loan (recoveries) for the quarter ($1,506 ) ($240 ) ($324 )
Net loan charge-offs (recoveries) for the quarter ($1,438 ) ($112 ) $ 30
Net loan charge-offs (recoveries) year-to-date ($1,246 ) $ 192 ($38 )
Net loan charge-offs (recoveries) for the quarter / average loans, for the quarter (0.21 %) (0.02 %) 0.00 %

Net loan charge-offs (recoveries) year-to-date / average loans, year-to-date annualized

(0.24 %) 0.06 % (0.01 %)
 
Capital Data (At quarter end):
Book value per share $ 20.70 $ 20.14 $ 19.14
Tangible book value per share 1 $ 19.43 $ 18.86 $ 17.82
Tangible Common Equity/Tangible Assets 2 11.17 % 11.47 % 10.86 %
Tier 1 Capital / Risk Adjusted Assets 15.36 % 15.44 % 15.39 %
Total Capital / Risk Adjusted Assets 16.61 % 16.70 % 16.65 %
Tier 1 Capital / Average Assets 13.13 % 13.33 % 12.84 %
Shares outstanding 6,473,680 6,470,518 6,440,241
Unrealized gain on AFS securities, net of income taxes $ 1,430 $ 984 $ 680
 
Profitability Ratios (For the quarter):
Net interest margin (tax equivalent) 3 4.36 % 4.51 % 4.45 %
Efficiency ratio 4 67.31 % 64.90 % 68.23 %
Return on average assets 1.46 % 1.19 % 0.95 %
Return on average equity 12.22 % 9.74 % 8.06 %
 
Profitability Ratios (Year-to-date):
Net interest margin (tax equivalent) 3 4.46 % 4.52 % 4.60 %
Efficiency ratio 4 67.84 % 68.12 % 66.47 %
Return on average assets 1.22 % 1.09 % 1.05 %
Return on average equity 10.10 % 8.94 % 9.00 %
 

1 Tangible book value is a non-GAAP measure defined as shareholder's equity, less intangible assets, divided by common stock outstanding.

 

2 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 common equity to assets would be total equity to total assets. Total equity to total assets was 11.83% at September 30, 2012 as compared to 12.17% at June 30, 2012 and 11.58% at September 30, 2011.

 

3 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 2012 and 2011.

 

4 The efficiency ratio is a non-GAAP ratio that is calculated by dividing other operating expense, exclusive of intangible asset amortization, by the sum of net interest income and other operating income.

Average Balances

         
(Dollars in thousands)
(Unaudited)
September 30, June 30, Three Month September 30, One Year
2012   2012   % Change   2011   % Change
 
Average Quarter Balances
Loans held for sale $ 31,985 $ 12,768 151 % $ - NM
Portfolio loans 663,984 664,435 0 % 633,032 5 %
Total loans 695,969 677,203 3 % 633,032 10 %
 
Total earning assets 987,172 949,977 3 % 935,614 5 %
Total assets 1,105,789 1,064,547 3 % 1,049,518 5 %
 
Noninterest-bearing deposits 322,290 291,855 10 % 294,658 9 %
Interest-bearing deposits 604,860 597,878 1 % 587,507 3 %
Total deposits 927,150 889,733 4 % 882,165 5 %
 
Shareholders' equity 132,344 129,784 -3 % 123,287 2 %
 
Average Year-to-date Balances
Loans held for sale $ 20,049 $ 14,015 43 % $ 409 NM
Portfolio loans 660,796 659,184 0 % 648,524 2 %
Total loans 680,845 673,199 1 % 648,933 5 %
 
Total earning assets 957,203 942,054 1 % 929,859 3 %
Total assets 1,072,524 1,055,709 1 % 1,041,294 3 %
 
Noninterest-bearing deposits 299,996 288,726 4 % 288,733 4 %
Interest-bearing deposits 596,498 592,271 1 % 589,228 1 %
Total deposits 896,494 880,997 2 % 877,961 2 %
 
Shareholders' equity 129,832 128,562 -1 % 121,001 5 %




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