Northrim BanCorp (NRIM) Investor Presentation summary

Strategic acquisition overview

• Acquired Sallyport Commercial Finance for $47.9M upfront and $6M deferred, paid in cash; executive management to remain in place.

• Transaction closed after a longstanding relationship and thorough due diligence, including financial, legal, and operational reviews.

• Expected to deliver significant earnings accretion, ROAA and ROATCE improvement, and manageable tangible book value dilution.

• Minimal cost savings anticipated aside from funding costs; integration risk considered low due to management continuity.

Sallyport Commercial Finance profile

• Founded in 2014, Sallyport specializes in factoring, asset-based lending, and alternative working capital for SMEs.

• Factored over $5.5B in debts, with consistent profitability and growth through economic cycles.

• 85 active clients, $19.5M net revenue, $7.7M adjusted pre-tax net income, and 22% CAGR in debts factored since 2015.

• Diversified client base by industry and geography, with operations in the U.S., Canada, and a presence in the U.K.

Financial and credit performance

• Demonstrated strong growth in volume and net funds employed, maintaining profitability through oil downturns, COVID-19, and banking crises.

• Robust underwriting and portfolio management processes, with average annual provision expense/average NFE at 1.7%.

• Maintained superior risk-adjusted returns and low effective advance rates across a diversified portfolio.