Northrim BanCorp (NRIM) investor relations material

Executive summary

• Net income for Q1 2026 was $13.7 million ($0.61/share), up from $12.4 million ($0.55/share) in Q4 2025 and $13.3 million ($0.60/share) in Q1 2025, driven by higher net interest and mortgage banking income, partially offset by increased provision for credit losses and operating expenses.

• Total assets reached $3.35 billion and deposits $2.87 billion as of March 31, 2026, with portfolio loans growing 11% year-over-year to $2.36 billion.

• Maintained strong asset quality, with nonperforming assets at 0.45% of total assets and nonperforming loans at 0.35%–0.60% of portfolio loans.

• Core loan and deposit growth continued, supported by investments in people, technology, and branch expansion.

• All business segments contributed to growth, with community banking, home mortgage lending, and specialty finance showing positive results.

Financial highlights

• Net interest income was $34.7 million in Q1 2026, up 11% year-over-year; NIMTE increased to 4.77% from 4.61% in Q1 2025.

• ROAA was 1.69% and ROAE was 16.60% for Q1 2026.

• Tangible book value per share rose to $12.81, and book value per share to $15.10.

• Dividend payout ratio was 26.25% for Q1 2026, with dividends per share at $0.16.

• Efficiency ratio improved to 61.81% in Q1 2026.

Outlook and guidance

• Management expects continued core loan and deposit growth, supported by investments in technology and customer relationships.

• 30% of loans mature or reprice in the next three months, supporting stable or improving NIM.

• Sufficient liquidity is anticipated, with $1.06 billion in liquid assets and $606.2 million in available borrowing capacity.

• Management expects to maintain capital ratios above regulatory requirements and continue receiving dividends from the bank subsidiary.

• No material changes anticipated in critical accounting estimates or risk factors for the remainder of 2026.