false000116337012/312024Q3xbrli:sharesiso4217:USDiso4217:USDxbrli:sharesnrim:segmentnrim:securityxbrli:purenrim:purchased_receivablenrim:swapnrim:bank00011633702024-01-012024-09-3000011633702024-10-3000011633702024-09-3000011633702023-12-310001163370nrim:MortgageServicingRightsMember2024-09-300001163370nrim:MortgageServicingRightsMember2023-12-3100011633702024-07-012024-09-3000011633702023-07-012023-09-3000011633702023-01-012023-09-300001163370us-gaap:CreditAndDebitCardMember2024-07-012024-09-300001163370us-gaap:CreditAndDebitCardMember2023-07-012023-09-300001163370us-gaap:CreditAndDebitCardMember2024-01-012024-09-300001163370us-gaap:CreditAndDebitCardMember2023-01-012023-09-300001163370us-gaap:DepositAccountMember2024-07-012024-09-300001163370us-gaap:DepositAccountMember2023-07-012023-09-300001163370us-gaap:DepositAccountMember2024-01-012024-09-300001163370us-gaap:DepositAccountMember2023-01-012023-09-300001163370us-gaap:CommonStockMember2022-12-310001163370us-gaap:AdditionalPaidInCapitalMember2022-12-310001163370us-gaap:RetainedEarningsMember2022-12-310001163370us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-12-3100011633702022-12-3100011633702023-01-012023-03-310001163370us-gaap:RetainedEarningsMember2023-01-012023-03-310001163370us-gaap:AdditionalPaidInCapitalMember2023-01-012023-03-310001163370us-gaap:CommonStockMember2023-01-012023-03-310001163370us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-01-012023-03-310001163370us-gaap:CommonStockMember2023-03-310001163370us-gaap:AdditionalPaidInCapitalMember2023-03-310001163370us-gaap:RetainedEarningsMember2023-03-310001163370us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-03-3100011633702023-03-3100011633702023-04-012023-06-300001163370us-gaap:RetainedEarningsMember2023-04-012023-06-300001163370us-gaap:AdditionalPaidInCapitalMember2023-04-012023-06-300001163370us-gaap:CommonStockMember2023-04-012023-06-300001163370us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-04-012023-06-300001163370us-gaap:CommonStockMember2023-06-300001163370us-gaap:AdditionalPaidInCapitalMember2023-06-300001163370us-gaap:RetainedEarningsMember2023-06-300001163370us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-06-3000011633702023-06-300001163370us-gaap:RetainedEarningsMember2023-07-012023-09-300001163370us-gaap:AdditionalPaidInCapitalMember2023-07-012023-09-300001163370us-gaap:CommonStockMember2023-07-012023-09-300001163370us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-07-012023-09-300001163370us-gaap:CommonStockMember2023-09-300001163370us-gaap:AdditionalPaidInCapitalMember2023-09-300001163370us-gaap:RetainedEarningsMember2023-09-300001163370us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-09-3000011633702023-09-3000011633702023-10-012023-12-310001163370us-gaap:RetainedEarningsMember2023-10-012023-12-310001163370us-gaap:AdditionalPaidInCapitalMember2023-10-012023-12-310001163370us-gaap:CommonStockMember2023-10-012023-12-310001163370us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-10-012023-12-310001163370us-gaap:CommonStockMember2023-12-310001163370us-gaap:AdditionalPaidInCapitalMember2023-12-310001163370us-gaap:RetainedEarningsMember2023-12-310001163370us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-12-3100011633702024-01-012024-03-310001163370us-gaap:RetainedEarningsMember2024-01-012024-03-310001163370us-gaap:AdditionalPaidInCapitalMember2024-01-012024-03-310001163370us-gaap:CommonStockMember2024-01-012024-03-310001163370us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-01-012024-03-310001163370us-gaap:CommonStockMember2024-03-310001163370us-gaap:AdditionalPaidInCapitalMember2024-03-310001163370us-gaap:RetainedEarningsMember2024-03-310001163370us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-03-3100011633702024-03-3100011633702024-04-012024-06-300001163370us-gaap:RetainedEarningsMember2024-04-012024-06-300001163370us-gaap:AdditionalPaidInCapitalMember2024-04-012024-06-300001163370us-gaap:CommonStockMember2024-04-012024-06-300001163370us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-04-012024-06-300001163370us-gaap:CommonStockMember2024-06-300001163370us-gaap:AdditionalPaidInCapitalMember2024-06-300001163370us-gaap:RetainedEarningsMember2024-06-300001163370us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-06-3000011633702024-06-300001163370us-gaap:RetainedEarningsMember2024-07-012024-09-300001163370us-gaap:AdditionalPaidInCapitalMember2024-07-012024-09-300001163370us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-07-012024-09-300001163370us-gaap:CommonStockMember2024-09-300001163370us-gaap:AdditionalPaidInCapitalMember2024-09-300001163370us-gaap:RetainedEarningsMember2024-09-300001163370us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-09-300001163370us-gaap:USTreasuryAndGovernmentMember2024-09-300001163370us-gaap:CorporateDebtSecuritiesMember2024-09-300001163370us-gaap:CollateralizedLoanObligationsMember2024-09-300001163370us-gaap:USTreasuryAndGovernmentMember2023-12-310001163370us-gaap:MunicipalBondsMember2023-12-310001163370us-gaap:CorporateDebtSecuritiesMember2023-12-310001163370us-gaap:CollateralizedLoanObligationsMember2023-12-310001163370us-gaap:USTreasuryAndGovernmentMember2024-07-012024-09-300001163370us-gaap:USTreasuryAndGovernmentMember2023-07-012023-09-300001163370us-gaap:USTreasuryAndGovernmentMember2024-01-012024-09-300001163370us-gaap:USTreasuryAndGovernmentMember2023-01-012023-09-300001163370nrim:OtherInvestmentSecuritiesMember2024-07-012024-09-300001163370nrim:OtherInvestmentSecuritiesMember2023-07-012023-09-300001163370nrim:OtherInvestmentSecuritiesMember2024-01-012024-09-300001163370nrim:OtherInvestmentSecuritiesMember2023-01-012023-09-300001163370us-gaap:MunicipalBondsMember2024-07-012024-09-300001163370us-gaap:MunicipalBondsMember2023-07-012023-09-300001163370us-gaap:MunicipalBondsMember2024-01-012024-09-300001163370us-gaap:MunicipalBondsMember2023-01-012023-09-300001163370us-gaap:CommercialPortfolioSegmentMember2024-09-300001163370us-gaap:CommercialPortfolioSegmentMember2023-12-310001163370nrim:OwnerOccupiedPropertiesMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2024-09-300001163370nrim:OwnerOccupiedPropertiesMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2023-12-310001163370nrim:NonOwnerOccupiedAndMultifamilyPropertiesMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2024-09-300001163370nrim:NonOwnerOccupiedAndMultifamilyPropertiesMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2023-12-310001163370nrim:PropertiesSecuredByFirstLiensMemberus-gaap:ResidentialPortfolioSegmentMember2024-09-300001163370nrim:PropertiesSecuredByFirstLiensMemberus-gaap:ResidentialPortfolioSegmentMember2023-12-310001163370nrim:PropertiesSecuredByJuniorLiensAndRevolvingSecuredByFamilyFirstLiensMemberus-gaap:ResidentialPortfolioSegmentMember2024-09-300001163370nrim:PropertiesSecuredByJuniorLiensAndRevolvingSecuredByFamilyFirstLiensMemberus-gaap:ResidentialPortfolioSegmentMember2023-12-310001163370us-gaap:ConstructionLoansMemberus-gaap:ResidentialPortfolioSegmentMember2024-09-300001163370us-gaap:ConstructionLoansMemberus-gaap:ResidentialPortfolioSegmentMember2023-12-310001163370nrim:OtherConstructionLandDevelopmentAndRawLandLoansPortfolioSegmentMember2024-09-300001163370nrim:OtherConstructionLandDevelopmentAndRawLandLoansPortfolioSegmentMember2023-12-310001163370nrim:GovernmentPortfolioSegmentMember2024-09-300001163370nrim:GovernmentPortfolioSegmentMember2023-12-310001163370nrim:AgriculturalProductionPorfolioSegmentMember2024-09-300001163370nrim:AgriculturalProductionPorfolioSegmentMember2023-12-310001163370us-gaap:ConsumerPortfolioSegmentMember2024-09-300001163370us-gaap:ConsumerPortfolioSegmentMember2023-12-310001163370us-gaap:UnallocatedFinancingReceivablesMember2024-09-300001163370us-gaap:UnallocatedFinancingReceivablesMember2023-12-310001163370nrim:SmallBusinessAdministrationSBACARESActPaycheckProtectionProgramMemberus-gaap:CommercialPortfolioSegmentMember2024-09-300001163370nrim:SmallBusinessAdministrationSBACARESActPaycheckProtectionProgramMemberus-gaap:CommercialPortfolioSegmentMember2023-12-310001163370us-gaap:CommercialPortfolioSegmentMember2024-06-300001163370us-gaap:CommercialPortfolioSegmentMember2024-07-012024-09-300001163370nrim:OwnerOccupiedPropertiesMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2024-06-300001163370nrim:OwnerOccupiedPropertiesMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2024-07-012024-09-300001163370nrim:NonOwnerOccupiedAndMultifamilyPropertiesMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2024-06-300001163370nrim:NonOwnerOccupiedAndMultifamilyPropertiesMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2024-07-012024-09-300001163370nrim:PropertiesSecuredByFirstLiensMemberus-gaap:ResidentialPortfolioSegmentMember2024-06-300001163370nrim:PropertiesSecuredByFirstLiensMemberus-gaap:ResidentialPortfolioSegmentMember2024-07-012024-09-300001163370nrim:PropertiesSecuredByJuniorLiensAndRevolvingSecuredByFamilyFirstLiensMemberus-gaap:ResidentialPortfolioSegmentMember2024-06-300001163370nrim:PropertiesSecuredByJuniorLiensAndRevolvingSecuredByFamilyFirstLiensMemberus-gaap:ResidentialPortfolioSegmentMember2024-07-012024-09-300001163370us-gaap:ConstructionLoansMemberus-gaap:ResidentialPortfolioSegmentMember2024-06-300001163370us-gaap:ConstructionLoansMemberus-gaap:ResidentialPortfolioSegmentMember2024-07-012024-09-300001163370nrim:OtherConstructionLandDevelopmentAndRawLandLoansPortfolioSegmentMember2024-06-300001163370nrim:OtherConstructionLandDevelopmentAndRawLandLoansPortfolioSegmentMember2024-07-012024-09-300001163370nrim:GovernmentPortfolioSegmentMember2024-06-300001163370nrim:GovernmentPortfolioSegmentMember2024-07-012024-09-300001163370nrim:AgriculturalProductionPorfolioSegmentMember2024-06-300001163370nrim:AgriculturalProductionPorfolioSegmentMember2024-07-012024-09-300001163370us-gaap:ConsumerPortfolioSegmentMember2024-06-300001163370us-gaap:ConsumerPortfolioSegmentMember2024-07-012024-09-300001163370us-gaap:UnallocatedFinancingReceivablesMember2024-06-300001163370us-gaap:UnallocatedFinancingReceivablesMember2024-07-012024-09-300001163370us-gaap:CommercialPortfolioSegmentMember2023-06-300001163370us-gaap:CommercialPortfolioSegmentMember2023-07-012023-09-300001163370us-gaap:CommercialPortfolioSegmentMember2023-09-300001163370nrim:OwnerOccupiedPropertiesMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2023-06-300001163370nrim:OwnerOccupiedPropertiesMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2023-07-012023-09-300001163370nrim:OwnerOccupiedPropertiesMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2023-09-300001163370nrim:NonOwnerOccupiedAndMultifamilyPropertiesMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2023-06-300001163370nrim:NonOwnerOccupiedAndMultifamilyPropertiesMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2023-07-012023-09-300001163370nrim:NonOwnerOccupiedAndMultifamilyPropertiesMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2023-09-300001163370nrim:PropertiesSecuredByFirstLiensMemberus-gaap:ResidentialPortfolioSegmentMember2023-06-300001163370nrim:PropertiesSecuredByFirstLiensMemberus-gaap:ResidentialPortfolioSegmentMember2023-07-012023-09-300001163370nrim:PropertiesSecuredByFirstLiensMemberus-gaap:ResidentialPortfolioSegmentMember2023-09-300001163370nrim:PropertiesSecuredByJuniorLiensAndRevolvingSecuredByFamilyFirstLiensMemberus-gaap:ResidentialPortfolioSegmentMember2023-06-300001163370nrim:PropertiesSecuredByJuniorLiensAndRevolvingSecuredByFamilyFirstLiensMemberus-gaap:ResidentialPortfolioSegmentMember2023-07-012023-09-300001163370nrim:PropertiesSecuredByJuniorLiensAndRevolvingSecuredByFamilyFirstLiensMemberus-gaap:ResidentialPortfolioSegmentMember2023-09-300001163370us-gaap:ConstructionLoansMemberus-gaap:ResidentialPortfolioSegmentMember2023-06-300001163370us-gaap:ConstructionLoansMemberus-gaap:ResidentialPortfolioSegmentMember2023-07-012023-09-300001163370us-gaap:ConstructionLoansMemberus-gaap:ResidentialPortfolioSegmentMember2023-09-300001163370nrim:OtherConstructionLandDevelopmentAndRawLandLoansPortfolioSegmentMember2023-06-300001163370nrim:OtherConstructionLandDevelopmentAndRawLandLoansPortfolioSegmentMember2023-07-012023-09-300001163370nrim:OtherConstructionLandDevelopmentAndRawLandLoansPortfolioSegmentMember2023-09-300001163370nrim:GovernmentPortfolioSegmentMember2023-06-300001163370nrim:GovernmentPortfolioSegmentMember2023-07-012023-09-300001163370nrim:GovernmentPortfolioSegmentMember2023-09-300001163370nrim:AgriculturalProductionPorfolioSegmentMember2023-06-300001163370nrim:AgriculturalProductionPorfolioSegmentMember2023-07-012023-09-300001163370nrim:AgriculturalProductionPorfolioSegmentMember2023-09-300001163370us-gaap:ConsumerPortfolioSegmentMember2023-06-300001163370us-gaap:ConsumerPortfolioSegmentMember2023-07-012023-09-300001163370us-gaap:ConsumerPortfolioSegmentMember2023-09-300001163370us-gaap:UnallocatedFinancingReceivablesMember2023-06-300001163370us-gaap:UnallocatedFinancingReceivablesMember2023-07-012023-09-300001163370us-gaap:UnallocatedFinancingReceivablesMember2023-09-300001163370us-gaap:CommercialPortfolioSegmentMember2024-01-012024-09-300001163370nrim:OwnerOccupiedPropertiesMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2024-01-012024-09-300001163370nrim:NonOwnerOccupiedAndMultifamilyPropertiesMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2024-01-012024-09-300001163370nrim:PropertiesSecuredByFirstLiensMemberus-gaap:ResidentialPortfolioSegmentMember2024-01-012024-09-300001163370nrim:PropertiesSecuredByJuniorLiensAndRevolvingSecuredByFamilyFirstLiensMemberus-gaap:ResidentialPortfolioSegmentMember2024-01-012024-09-300001163370us-gaap:ConstructionLoansMemberus-gaap:ResidentialPortfolioSegmentMember2024-01-012024-09-300001163370nrim:OtherConstructionLandDevelopmentAndRawLandLoansPortfolioSegmentMember2024-01-012024-09-300001163370nrim:GovernmentPortfolioSegmentMember2024-01-012024-09-300001163370nrim:AgriculturalProductionPorfolioSegmentMember2024-01-012024-09-300001163370us-gaap:ConsumerPortfolioSegmentMember2024-01-012024-09-300001163370us-gaap:UnallocatedFinancingReceivablesMember2024-01-012024-09-300001163370us-gaap:CommercialPortfolioSegmentMember2022-12-310001163370us-gaap:CommercialPortfolioSegmentMember2023-01-012023-09-300001163370nrim:OwnerOccupiedPropertiesMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2022-12-310001163370nrim:OwnerOccupiedPropertiesMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2023-01-012023-09-300001163370nrim:NonOwnerOccupiedAndMultifamilyPropertiesMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2022-12-310001163370nrim:NonOwnerOccupiedAndMultifamilyPropertiesMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2023-01-012023-09-300001163370nrim:PropertiesSecuredByFirstLiensMemberus-gaap:ResidentialPortfolioSegmentMember2022-12-310001163370nrim:PropertiesSecuredByFirstLiensMemberus-gaap:ResidentialPortfolioSegmentMember2023-01-012023-09-300001163370nrim:PropertiesSecuredByJuniorLiensAndRevolvingSecuredByFamilyFirstLiensMemberus-gaap:ResidentialPortfolioSegmentMember2022-12-310001163370nrim:PropertiesSecuredByJuniorLiensAndRevolvingSecuredByFamilyFirstLiensMemberus-gaap:ResidentialPortfolioSegmentMember2023-01-012023-09-300001163370us-gaap:ConstructionLoansMemberus-gaap:ResidentialPortfolioSegmentMember2022-12-310001163370us-gaap:ConstructionLoansMemberus-gaap:ResidentialPortfolioSegmentMember2023-01-012023-09-300001163370nrim:OtherConstructionLandDevelopmentAndRawLandLoansPortfolioSegmentMember2022-12-310001163370nrim:OtherConstructionLandDevelopmentAndRawLandLoansPortfolioSegmentMember2023-01-012023-09-300001163370nrim:GovernmentPortfolioSegmentMember2022-12-310001163370nrim:GovernmentPortfolioSegmentMember2023-01-012023-09-300001163370nrim:AgriculturalProductionPorfolioSegmentMember2022-12-310001163370nrim:AgriculturalProductionPorfolioSegmentMember2023-01-012023-09-300001163370us-gaap:ConsumerPortfolioSegmentMember2022-12-310001163370us-gaap:ConsumerPortfolioSegmentMember2023-01-012023-09-300001163370us-gaap:UnallocatedFinancingReceivablesMember2022-12-310001163370us-gaap:UnallocatedFinancingReceivablesMember2023-01-012023-09-300001163370us-gaap:CommercialPortfolioSegmentMemberus-gaap:PassMember2024-09-300001163370us-gaap:CommercialPortfolioSegmentMemberus-gaap:CriticizedMember2024-09-300001163370us-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:PassMembernrim:OwnerOccupiedPropertiesMember2024-09-300001163370us-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:CriticizedMembernrim:OwnerOccupiedPropertiesMember2024-09-300001163370us-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:PassMembernrim:NonOwnerOccupiedAndMultifamilyPropertiesMember2024-09-300001163370us-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:CriticizedMembernrim:NonOwnerOccupiedAndMultifamilyPropertiesMember2024-09-300001163370us-gaap:ResidentialPortfolioSegmentMemberus-gaap:PassMembernrim:PropertiesSecuredByFirstLiensMember2024-09-300001163370us-gaap:ResidentialPortfolioSegmentMemberus-gaap:CriticizedMembernrim:PropertiesSecuredByFirstLiensMember2024-09-300001163370us-gaap:ResidentialPortfolioSegmentMemberus-gaap:PassMembernrim:PropertiesSecuredByJuniorLiensAndRevolvingSecuredByFamilyFirstLiensMember2024-09-300001163370us-gaap:ResidentialPortfolioSegmentMemberus-gaap:CriticizedMembernrim:PropertiesSecuredByJuniorLiensAndRevolvingSecuredByFamilyFirstLiensMember2024-09-300001163370us-gaap:ResidentialPortfolioSegmentMemberus-gaap:PassMemberus-gaap:ConstructionLoansMember2024-09-300001163370us-gaap:ResidentialPortfolioSegmentMemberus-gaap:CriticizedMemberus-gaap:ConstructionLoansMember2024-09-300001163370nrim:OtherConstructionLandDevelopmentAndRawLandLoansPortfolioSegmentMemberus-gaap:PassMember2024-09-300001163370nrim:OtherConstructionLandDevelopmentAndRawLandLoansPortfolioSegmentMemberus-gaap:CriticizedMember2024-09-300001163370nrim:GovernmentPortfolioSegmentMemberus-gaap:PassMember2024-09-300001163370nrim:GovernmentPortfolioSegmentMemberus-gaap:CriticizedMember2024-09-300001163370nrim:AgriculturalProductionPorfolioSegmentMemberus-gaap:PassMember2024-09-300001163370nrim:AgriculturalProductionPorfolioSegmentMemberus-gaap:CriticizedMember2024-09-300001163370us-gaap:ConsumerPortfolioSegmentMemberus-gaap:PassMember2024-09-300001163370us-gaap:ConsumerPortfolioSegmentMemberus-gaap:CriticizedMember2024-09-300001163370us-gaap:UnallocatedFinancingReceivablesMemberus-gaap:PassMember2024-09-300001163370us-gaap:UnallocatedFinancingReceivablesMemberus-gaap:CriticizedMember2024-09-300001163370us-gaap:PassMember2024-09-300001163370us-gaap:CriticizedMember2024-09-300001163370us-gaap:UsGovernmentAgencyInsuredLoansMemberus-gaap:PassMember2024-09-300001163370nrim:ExcludingUSGovernmentAgencyInsuredLoansMemberus-gaap:PassMember2024-09-300001163370us-gaap:UsGovernmentAgencyInsuredLoansMemberus-gaap:CriticizedMember2024-09-300001163370nrim:ExcludingUSGovernmentAgencyInsuredLoansMemberus-gaap:CriticizedMember2024-09-300001163370us-gaap:CommercialPortfolioSegmentMemberus-gaap:PassMember2023-12-310001163370us-gaap:CommercialPortfolioSegmentMemberus-gaap:CriticizedMember2023-12-310001163370us-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:PassMembernrim:OwnerOccupiedPropertiesMember2023-12-310001163370us-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:CriticizedMembernrim:OwnerOccupiedPropertiesMember2023-12-310001163370us-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:PassMembernrim:NonOwnerOccupiedAndMultifamilyPropertiesMember2023-12-310001163370us-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:CriticizedMembernrim:NonOwnerOccupiedAndMultifamilyPropertiesMember2023-12-310001163370us-gaap:ResidentialPortfolioSegmentMemberus-gaap:PassMembernrim:PropertiesSecuredByFirstLiensMember2023-12-310001163370us-gaap:ResidentialPortfolioSegmentMemberus-gaap:CriticizedMembernrim:PropertiesSecuredByFirstLiensMember2023-12-310001163370us-gaap:ResidentialPortfolioSegmentMemberus-gaap:PassMembernrim:PropertiesSecuredByJuniorLiensAndRevolvingSecuredByFamilyFirstLiensMember2023-12-310001163370us-gaap:ResidentialPortfolioSegmentMemberus-gaap:CriticizedMembernrim:PropertiesSecuredByJuniorLiensAndRevolvingSecuredByFamilyFirstLiensMember2023-12-310001163370us-gaap:ResidentialPortfolioSegmentMemberus-gaap:PassMemberus-gaap:ConstructionLoansMember2023-12-310001163370us-gaap:ResidentialPortfolioSegmentMemberus-gaap:CriticizedMemberus-gaap:ConstructionLoansMember2023-12-310001163370nrim:OtherConstructionLandDevelopmentAndRawLandLoansPortfolioSegmentMemberus-gaap:PassMember2023-12-310001163370nrim:OtherConstructionLandDevelopmentAndRawLandLoansPortfolioSegmentMemberus-gaap:CriticizedMember2023-12-310001163370nrim:GovernmentPortfolioSegmentMemberus-gaap:PassMember2023-12-310001163370nrim:GovernmentPortfolioSegmentMemberus-gaap:CriticizedMember2023-12-310001163370nrim:AgriculturalProductionPorfolioSegmentMemberus-gaap:PassMember2023-12-310001163370nrim:AgriculturalProductionPorfolioSegmentMemberus-gaap:CriticizedMember2023-12-310001163370us-gaap:ConsumerPortfolioSegmentMemberus-gaap:PassMember2023-12-310001163370us-gaap:ConsumerPortfolioSegmentMemberus-gaap:CriticizedMember2023-12-310001163370us-gaap:UnallocatedFinancingReceivablesMemberus-gaap:PassMember2023-12-310001163370us-gaap:UnallocatedFinancingReceivablesMemberus-gaap:CriticizedMember2023-12-310001163370us-gaap:PassMember2023-12-310001163370us-gaap:CriticizedMember2023-12-310001163370us-gaap:UsGovernmentAgencyInsuredLoansMemberus-gaap:PassMember2023-12-310001163370nrim:ExcludingUSGovernmentAgencyInsuredLoansMemberus-gaap:PassMember2023-12-310001163370us-gaap:UsGovernmentAgencyInsuredLoansMemberus-gaap:CriticizedMember2023-12-310001163370nrim:ExcludingUSGovernmentAgencyInsuredLoansMemberus-gaap:CriticizedMember2023-12-310001163370us-gaap:FinancingReceivables30To59DaysPastDueMemberus-gaap:CommercialPortfolioSegmentMember2024-09-300001163370us-gaap:FinancingReceivables60To89DaysPastDueMemberus-gaap:CommercialPortfolioSegmentMember2024-09-300001163370us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberus-gaap:CommercialPortfolioSegmentMember2024-09-300001163370us-gaap:FinancialAssetPastDueMemberus-gaap:CommercialPortfolioSegmentMember2024-09-300001163370us-gaap:FinancialAssetNotPastDueMemberus-gaap:CommercialPortfolioSegmentMember2024-09-300001163370us-gaap:CommercialRealEstatePortfolioSegmentMembernrim:OwnerOccupiedPropertiesMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2024-09-300001163370us-gaap:CommercialRealEstatePortfolioSegmentMembernrim:OwnerOccupiedPropertiesMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2024-09-300001163370us-gaap:CommercialRealEstatePortfolioSegmentMembernrim:OwnerOccupiedPropertiesMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2024-09-300001163370us-gaap:CommercialRealEstatePortfolioSegmentMembernrim:OwnerOccupiedPropertiesMemberus-gaap:FinancialAssetPastDueMember2024-09-300001163370us-gaap:CommercialRealEstatePortfolioSegmentMembernrim:OwnerOccupiedPropertiesMemberus-gaap:FinancialAssetNotPastDueMember2024-09-300001163370us-gaap:CommercialRealEstatePortfolioSegmentMembernrim:NonOwnerOccupiedAndMultifamilyPropertiesMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2024-09-300001163370us-gaap:CommercialRealEstatePortfolioSegmentMembernrim:NonOwnerOccupiedAndMultifamilyPropertiesMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2024-09-300001163370us-gaap:CommercialRealEstatePortfolioSegmentMembernrim:NonOwnerOccupiedAndMultifamilyPropertiesMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2024-09-300001163370us-gaap:CommercialRealEstatePortfolioSegmentMembernrim:NonOwnerOccupiedAndMultifamilyPropertiesMemberus-gaap:FinancialAssetPastDueMember2024-09-300001163370us-gaap:CommercialRealEstatePortfolioSegmentMembernrim:NonOwnerOccupiedAndMultifamilyPropertiesMemberus-gaap:FinancialAssetNotPastDueMember2024-09-300001163370us-gaap:ResidentialPortfolioSegmentMembernrim:PropertiesSecuredByFirstLiensMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2024-09-300001163370us-gaap:ResidentialPortfolioSegmentMembernrim:PropertiesSecuredByFirstLiensMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2024-09-300001163370us-gaap:ResidentialPortfolioSegmentMembernrim:PropertiesSecuredByFirstLiensMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2024-09-300001163370us-gaap:ResidentialPortfolioSegmentMembernrim:PropertiesSecuredByFirstLiensMemberus-gaap:FinancialAssetPastDueMember2024-09-300001163370us-gaap:ResidentialPortfolioSegmentMembernrim:PropertiesSecuredByFirstLiensMemberus-gaap:FinancialAssetNotPastDueMember2024-09-300001163370us-gaap:ResidentialPortfolioSegmentMembernrim:PropertiesSecuredByJuniorLiensAndRevolvingSecuredByFamilyFirstLiensMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2024-09-300001163370us-gaap:ResidentialPortfolioSegmentMembernrim:PropertiesSecuredByJuniorLiensAndRevolvingSecuredByFamilyFirstLiensMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2024-09-300001163370us-gaap:ResidentialPortfolioSegmentMembernrim:PropertiesSecuredByJuniorLiensAndRevolvingSecuredByFamilyFirstLiensMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2024-09-300001163370us-gaap:ResidentialPortfolioSegmentMembernrim:PropertiesSecuredByJuniorLiensAndRevolvingSecuredByFamilyFirstLiensMemberus-gaap:FinancialAssetPastDueMember2024-09-300001163370us-gaap:ResidentialPortfolioSegmentMembernrim:PropertiesSecuredByJuniorLiensAndRevolvingSecuredByFamilyFirstLiensMemberus-gaap:FinancialAssetNotPastDueMember2024-09-300001163370us-gaap:ResidentialPortfolioSegmentMemberus-gaap:ConstructionLoansMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2024-09-300001163370us-gaap:ResidentialPortfolioSegmentMemberus-gaap:ConstructionLoansMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2024-09-300001163370us-gaap:ResidentialPortfolioSegmentMemberus-gaap:ConstructionLoansMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2024-09-300001163370us-gaap:ResidentialPortfolioSegmentMemberus-gaap:ConstructionLoansMemberus-gaap:FinancialAssetPastDueMember2024-09-300001163370us-gaap:ResidentialPortfolioSegmentMemberus-gaap:ConstructionLoansMemberus-gaap:FinancialAssetNotPastDueMember2024-09-300001163370us-gaap:FinancingReceivables30To59DaysPastDueMembernrim:OtherConstructionLandDevelopmentAndRawLandLoansPortfolioSegmentMember2024-09-300001163370us-gaap:FinancingReceivables60To89DaysPastDueMembernrim:OtherConstructionLandDevelopmentAndRawLandLoansPortfolioSegmentMember2024-09-300001163370us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMembernrim:OtherConstructionLandDevelopmentAndRawLandLoansPortfolioSegmentMember2024-09-300001163370us-gaap:FinancialAssetPastDueMembernrim:OtherConstructionLandDevelopmentAndRawLandLoansPortfolioSegmentMember2024-09-300001163370us-gaap:FinancialAssetNotPastDueMembernrim:OtherConstructionLandDevelopmentAndRawLandLoansPortfolioSegmentMember2024-09-300001163370us-gaap:FinancingReceivables30To59DaysPastDueMembernrim:GovernmentPortfolioSegmentMember2024-09-300001163370us-gaap:FinancingReceivables60To89DaysPastDueMembernrim:GovernmentPortfolioSegmentMember2024-09-300001163370us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMembernrim:GovernmentPortfolioSegmentMember2024-09-300001163370us-gaap:FinancialAssetPastDueMembernrim:GovernmentPortfolioSegmentMember2024-09-300001163370us-gaap:FinancialAssetNotPastDueMembernrim:GovernmentPortfolioSegmentMember2024-09-300001163370us-gaap:FinancingReceivables30To59DaysPastDueMembernrim:AgriculturalProductionPorfolioSegmentMember2024-09-300001163370us-gaap:FinancingReceivables60To89DaysPastDueMembernrim:AgriculturalProductionPorfolioSegmentMember2024-09-300001163370us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMembernrim:AgriculturalProductionPorfolioSegmentMember2024-09-300001163370us-gaap:FinancialAssetPastDueMembernrim:AgriculturalProductionPorfolioSegmentMember2024-09-300001163370us-gaap:FinancialAssetNotPastDueMembernrim:AgriculturalProductionPorfolioSegmentMember2024-09-300001163370us-gaap:FinancingReceivables30To59DaysPastDueMemberus-gaap:ConsumerPortfolioSegmentMember2024-09-300001163370us-gaap:FinancingReceivables60To89DaysPastDueMemberus-gaap:ConsumerPortfolioSegmentMember2024-09-300001163370us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberus-gaap:ConsumerPortfolioSegmentMember2024-09-300001163370us-gaap:FinancialAssetPastDueMemberus-gaap:ConsumerPortfolioSegmentMember2024-09-300001163370us-gaap:FinancialAssetNotPastDueMemberus-gaap:ConsumerPortfolioSegmentMember2024-09-300001163370us-gaap:FinancingReceivables30To59DaysPastDueMemberus-gaap:UnallocatedFinancingReceivablesMember2024-09-300001163370us-gaap:FinancingReceivables60To89DaysPastDueMemberus-gaap:UnallocatedFinancingReceivablesMember2024-09-300001163370us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberus-gaap:UnallocatedFinancingReceivablesMember2024-09-300001163370us-gaap:FinancialAssetPastDueMemberus-gaap:UnallocatedFinancingReceivablesMember2024-09-300001163370us-gaap:FinancialAssetNotPastDueMemberus-gaap:UnallocatedFinancingReceivablesMember2024-09-300001163370us-gaap:FinancingReceivables30To59DaysPastDueMember2024-09-300001163370us-gaap:FinancingReceivables60To89DaysPastDueMember2024-09-300001163370us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2024-09-300001163370us-gaap:FinancialAssetPastDueMember2024-09-300001163370us-gaap:FinancialAssetNotPastDueMember2024-09-300001163370us-gaap:FinancingReceivables30To59DaysPastDueMemberus-gaap:CommercialPortfolioSegmentMember2023-12-310001163370us-gaap:FinancingReceivables60To89DaysPastDueMemberus-gaap:CommercialPortfolioSegmentMember2023-12-310001163370us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberus-gaap:CommercialPortfolioSegmentMember2023-12-310001163370us-gaap:FinancialAssetPastDueMemberus-gaap:CommercialPortfolioSegmentMember2023-12-310001163370us-gaap:FinancialAssetNotPastDueMemberus-gaap:CommercialPortfolioSegmentMember2023-12-310001163370us-gaap:CommercialRealEstatePortfolioSegmentMembernrim:OwnerOccupiedPropertiesMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2023-12-310001163370us-gaap:CommercialRealEstatePortfolioSegmentMembernrim:OwnerOccupiedPropertiesMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2023-12-310001163370us-gaap:CommercialRealEstatePortfolioSegmentMembernrim:OwnerOccupiedPropertiesMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2023-12-310001163370us-gaap:CommercialRealEstatePortfolioSegmentMembernrim:OwnerOccupiedPropertiesMemberus-gaap:FinancialAssetPastDueMember2023-12-310001163370us-gaap:CommercialRealEstatePortfolioSegmentMembernrim:OwnerOccupiedPropertiesMemberus-gaap:FinancialAssetNotPastDueMember2023-12-310001163370us-gaap:CommercialRealEstatePortfolioSegmentMembernrim:NonOwnerOccupiedAndMultifamilyPropertiesMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2023-12-310001163370us-gaap:CommercialRealEstatePortfolioSegmentMembernrim:NonOwnerOccupiedAndMultifamilyPropertiesMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2023-12-310001163370us-gaap:CommercialRealEstatePortfolioSegmentMembernrim:NonOwnerOccupiedAndMultifamilyPropertiesMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2023-12-310001163370us-gaap:CommercialRealEstatePortfolioSegmentMembernrim:NonOwnerOccupiedAndMultifamilyPropertiesMemberus-gaap:FinancialAssetPastDueMember2023-12-310001163370us-gaap:CommercialRealEstatePortfolioSegmentMembernrim:NonOwnerOccupiedAndMultifamilyPropertiesMemberus-gaap:FinancialAssetNotPastDueMember2023-12-310001163370us-gaap:ResidentialPortfolioSegmentMembernrim:PropertiesSecuredByFirstLiensMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2023-12-310001163370us-gaap:ResidentialPortfolioSegmentMembernrim:PropertiesSecuredByFirstLiensMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2023-12-310001163370us-gaap:ResidentialPortfolioSegmentMembernrim:PropertiesSecuredByFirstLiensMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2023-12-310001163370us-gaap:ResidentialPortfolioSegmentMembernrim:PropertiesSecuredByFirstLiensMemberus-gaap:FinancialAssetPastDueMember2023-12-310001163370us-gaap:ResidentialPortfolioSegmentMembernrim:PropertiesSecuredByFirstLiensMemberus-gaap:FinancialAssetNotPastDueMember2023-12-310001163370us-gaap:ResidentialPortfolioSegmentMembernrim:PropertiesSecuredByJuniorLiensAndRevolvingSecuredByFamilyFirstLiensMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2023-12-310001163370us-gaap:ResidentialPortfolioSegmentMembernrim:PropertiesSecuredByJuniorLiensAndRevolvingSecuredByFamilyFirstLiensMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2023-12-310001163370us-gaap:ResidentialPortfolioSegmentMembernrim:PropertiesSecuredByJuniorLiensAndRevolvingSecuredByFamilyFirstLiensMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2023-12-310001163370us-gaap:ResidentialPortfolioSegmentMembernrim:PropertiesSecuredByJuniorLiensAndRevolvingSecuredByFamilyFirstLiensMemberus-gaap:FinancialAssetPastDueMember2023-12-310001163370us-gaap:ResidentialPortfolioSegmentMembernrim:PropertiesSecuredByJuniorLiensAndRevolvingSecuredByFamilyFirstLiensMemberus-gaap:FinancialAssetNotPastDueMember2023-12-310001163370us-gaap:ResidentialPortfolioSegmentMemberus-gaap:ConstructionLoansMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2023-12-310001163370us-gaap:ResidentialPortfolioSegmentMemberus-gaap:ConstructionLoansMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2023-12-310001163370us-gaap:ResidentialPortfolioSegmentMemberus-gaap:ConstructionLoansMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2023-12-310001163370us-gaap:ResidentialPortfolioSegmentMemberus-gaap:ConstructionLoansMemberus-gaap:FinancialAssetPastDueMember2023-12-310001163370us-gaap:ResidentialPortfolioSegmentMemberus-gaap:ConstructionLoansMemberus-gaap:FinancialAssetNotPastDueMember2023-12-310001163370us-gaap:FinancingReceivables30To59DaysPastDueMembernrim:OtherConstructionLandDevelopmentAndRawLandLoansPortfolioSegmentMember2023-12-310001163370us-gaap:FinancingReceivables60To89DaysPastDueMembernrim:OtherConstructionLandDevelopmentAndRawLandLoansPortfolioSegmentMember2023-12-310001163370us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMembernrim:OtherConstructionLandDevelopmentAndRawLandLoansPortfolioSegmentMember2023-12-310001163370us-gaap:FinancialAssetPastDueMembernrim:OtherConstructionLandDevelopmentAndRawLandLoansPortfolioSegmentMember2023-12-310001163370us-gaap:FinancialAssetNotPastDueMembernrim:OtherConstructionLandDevelopmentAndRawLandLoansPortfolioSegmentMember2023-12-310001163370us-gaap:FinancingReceivables30To59DaysPastDueMembernrim:GovernmentPortfolioSegmentMember2023-12-310001163370us-gaap:FinancingReceivables60To89DaysPastDueMembernrim:GovernmentPortfolioSegmentMember2023-12-310001163370us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMembernrim:GovernmentPortfolioSegmentMember2023-12-310001163370us-gaap:FinancialAssetPastDueMembernrim:GovernmentPortfolioSegmentMember2023-12-310001163370us-gaap:FinancialAssetNotPastDueMembernrim:GovernmentPortfolioSegmentMember2023-12-310001163370us-gaap:FinancingReceivables30To59DaysPastDueMembernrim:AgriculturalProductionPorfolioSegmentMember2023-12-310001163370us-gaap:FinancingReceivables60To89DaysPastDueMembernrim:AgriculturalProductionPorfolioSegmentMember2023-12-310001163370us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMembernrim:AgriculturalProductionPorfolioSegmentMember2023-12-310001163370us-gaap:FinancialAssetPastDueMembernrim:AgriculturalProductionPorfolioSegmentMember2023-12-310001163370us-gaap:FinancialAssetNotPastDueMembernrim:AgriculturalProductionPorfolioSegmentMember2023-12-310001163370us-gaap:FinancingReceivables30To59DaysPastDueMemberus-gaap:ConsumerPortfolioSegmentMember2023-12-310001163370us-gaap:FinancingReceivables60To89DaysPastDueMemberus-gaap:ConsumerPortfolioSegmentMember2023-12-310001163370us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberus-gaap:ConsumerPortfolioSegmentMember2023-12-310001163370us-gaap:FinancialAssetPastDueMemberus-gaap:ConsumerPortfolioSegmentMember2023-12-310001163370us-gaap:FinancialAssetNotPastDueMemberus-gaap:ConsumerPortfolioSegmentMember2023-12-310001163370us-gaap:FinancingReceivables30To59DaysPastDueMemberus-gaap:UnallocatedFinancingReceivablesMember2023-12-310001163370us-gaap:FinancingReceivables60To89DaysPastDueMemberus-gaap:UnallocatedFinancingReceivablesMember2023-12-310001163370us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberus-gaap:UnallocatedFinancingReceivablesMember2023-12-310001163370us-gaap:FinancialAssetPastDueMemberus-gaap:UnallocatedFinancingReceivablesMember2023-12-310001163370us-gaap:FinancialAssetNotPastDueMemberus-gaap:UnallocatedFinancingReceivablesMember2023-12-310001163370us-gaap:FinancingReceivables30To59DaysPastDueMember2023-12-310001163370us-gaap:FinancingReceivables60To89DaysPastDueMember2023-12-310001163370us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2023-12-310001163370us-gaap:FinancialAssetPastDueMember2023-12-310001163370us-gaap:FinancialAssetNotPastDueMember2023-12-310001163370nrim:ExcludingUSGovernmentAgencyInsuredLoansMember2024-09-300001163370nrim:ExcludingUSGovernmentAgencyInsuredLoansMember2023-12-310001163370us-gaap:UsGovernmentAgencyInsuredLoansMember2024-09-300001163370us-gaap:UsGovernmentAgencyInsuredLoansMember2023-12-310001163370us-gaap:PaymentDeferralMemberus-gaap:CommercialPortfolioSegmentMember2024-07-012024-09-300001163370nrim:PaymentDeferralAndExtendedMaturityMemberus-gaap:CommercialPortfolioSegmentMember2024-07-012024-09-300001163370us-gaap:PaymentDeferralMemberus-gaap:ResidentialPortfolioSegmentMembernrim:PropertiesSecuredByJuniorLiensAndRevolvingSecuredByFamilyFirstLiensMember2024-07-012024-09-300001163370nrim:PaymentDeferralAndExtendedMaturityMemberus-gaap:ResidentialPortfolioSegmentMembernrim:PropertiesSecuredByJuniorLiensAndRevolvingSecuredByFamilyFirstLiensMember2024-07-012024-09-300001163370us-gaap:PaymentDeferralMember2024-07-012024-09-300001163370nrim:PaymentDeferralAndExtendedMaturityMember2024-07-012024-09-300001163370us-gaap:ExtendedMaturityMemberus-gaap:CommercialRealEstatePortfolioSegmentMembernrim:OwnerOccupiedPropertiesMember2023-07-012023-09-300001163370nrim:PaymentDeferralAndExtendedMaturityMemberus-gaap:CommercialRealEstatePortfolioSegmentMembernrim:OwnerOccupiedPropertiesMember2023-07-012023-09-300001163370us-gaap:ExtendedMaturityMemberus-gaap:ResidentialPortfolioSegmentMembernrim:PropertiesSecuredByJuniorLiensAndRevolvingSecuredByFamilyFirstLiensMember2023-07-012023-09-300001163370nrim:PaymentDeferralAndExtendedMaturityMemberus-gaap:ResidentialPortfolioSegmentMembernrim:PropertiesSecuredByJuniorLiensAndRevolvingSecuredByFamilyFirstLiensMember2023-07-012023-09-300001163370us-gaap:ExtendedMaturityMemberus-gaap:ResidentialPortfolioSegmentMemberus-gaap:ConstructionLoansMember2023-07-012023-09-300001163370nrim:PaymentDeferralAndExtendedMaturityMemberus-gaap:ResidentialPortfolioSegmentMemberus-gaap:ConstructionLoansMember2023-07-012023-09-300001163370us-gaap:ExtendedMaturityMembernrim:OtherConstructionLandDevelopmentAndRawLandLoansPortfolioSegmentMember2023-07-012023-09-300001163370nrim:PaymentDeferralAndExtendedMaturityMembernrim:OtherConstructionLandDevelopmentAndRawLandLoansPortfolioSegmentMember2023-07-012023-09-300001163370us-gaap:ExtendedMaturityMember2023-07-012023-09-300001163370nrim:PaymentDeferralAndExtendedMaturityMember2023-07-012023-09-300001163370us-gaap:ExtendedMaturityMemberus-gaap:CommercialPortfolioSegmentMember2024-01-012024-09-300001163370nrim:PaymentDeferralAndExtendedMaturityMemberus-gaap:CommercialPortfolioSegmentMember2024-01-012024-09-300001163370us-gaap:ExtendedMaturityMemberus-gaap:ResidentialPortfolioSegmentMembernrim:PropertiesSecuredByJuniorLiensAndRevolvingSecuredByFamilyFirstLiensMember2024-01-012024-09-300001163370nrim:PaymentDeferralAndExtendedMaturityMemberus-gaap:ResidentialPortfolioSegmentMembernrim:PropertiesSecuredByJuniorLiensAndRevolvingSecuredByFamilyFirstLiensMember2024-01-012024-09-300001163370us-gaap:ExtendedMaturityMember2024-01-012024-09-300001163370nrim:PaymentDeferralAndExtendedMaturityMember2024-01-012024-09-300001163370us-gaap:ExtendedMaturityMemberus-gaap:CommercialPortfolioSegmentMember2023-01-012023-09-300001163370us-gaap:PaymentDeferralMemberus-gaap:CommercialPortfolioSegmentMember2023-01-012023-09-300001163370nrim:PaymentDeferralAndExtendedMaturityMemberus-gaap:CommercialPortfolioSegmentMember2023-01-012023-09-300001163370us-gaap:ExtendedMaturityMemberus-gaap:CommercialRealEstatePortfolioSegmentMembernrim:OwnerOccupiedPropertiesMember2023-01-012023-09-300001163370us-gaap:PaymentDeferralMemberus-gaap:CommercialRealEstatePortfolioSegmentMembernrim:OwnerOccupiedPropertiesMember2023-01-012023-09-300001163370nrim:PaymentDeferralAndExtendedMaturityMemberus-gaap:CommercialRealEstatePortfolioSegmentMembernrim:OwnerOccupiedPropertiesMember2023-01-012023-09-300001163370us-gaap:ExtendedMaturityMemberus-gaap:ResidentialPortfolioSegmentMembernrim:PropertiesSecuredByJuniorLiensAndRevolvingSecuredByFamilyFirstLiensMember2023-01-012023-09-300001163370us-gaap:PaymentDeferralMemberus-gaap:ResidentialPortfolioSegmentMembernrim:PropertiesSecuredByJuniorLiensAndRevolvingSecuredByFamilyFirstLiensMember2023-01-012023-09-300001163370nrim:PaymentDeferralAndExtendedMaturityMemberus-gaap:ResidentialPortfolioSegmentMembernrim:PropertiesSecuredByJuniorLiensAndRevolvingSecuredByFamilyFirstLiensMember2023-01-012023-09-300001163370us-gaap:ExtendedMaturityMemberus-gaap:ResidentialPortfolioSegmentMemberus-gaap:ConstructionLoansMember2023-01-012023-09-300001163370us-gaap:PaymentDeferralMemberus-gaap:ResidentialPortfolioSegmentMemberus-gaap:ConstructionLoansMember2023-01-012023-09-300001163370nrim:PaymentDeferralAndExtendedMaturityMemberus-gaap:ResidentialPortfolioSegmentMemberus-gaap:ConstructionLoansMember2023-01-012023-09-300001163370us-gaap:ExtendedMaturityMembernrim:OtherConstructionLandDevelopmentAndRawLandLoansPortfolioSegmentMember2023-01-012023-09-300001163370us-gaap:PaymentDeferralMembernrim:OtherConstructionLandDevelopmentAndRawLandLoansPortfolioSegmentMember2023-01-012023-09-300001163370nrim:PaymentDeferralAndExtendedMaturityMembernrim:OtherConstructionLandDevelopmentAndRawLandLoansPortfolioSegmentMember2023-01-012023-09-300001163370us-gaap:ExtendedMaturityMember2023-01-012023-09-300001163370us-gaap:PaymentDeferralMember2023-01-012023-09-300001163370nrim:PaymentDeferralAndExtendedMaturityMember2023-01-012023-09-300001163370us-gaap:PrincipalForgivenessMemberus-gaap:CommercialPortfolioSegmentMember2024-07-012024-09-300001163370us-gaap:PrincipalForgivenessMemberus-gaap:CommercialRealEstatePortfolioSegmentMembernrim:OwnerOccupiedPropertiesMember2023-07-012023-09-300001163370us-gaap:PrincipalForgivenessMemberus-gaap:ResidentialPortfolioSegmentMembernrim:PropertiesSecuredByJuniorLiensAndRevolvingSecuredByFamilyFirstLiensMember2023-07-012023-09-300001163370us-gaap:PrincipalForgivenessMemberus-gaap:ResidentialPortfolioSegmentMemberus-gaap:ConstructionLoansMember2023-07-012023-09-300001163370us-gaap:PrincipalForgivenessMembernrim:OtherConstructionLandDevelopmentAndRawLandLoansPortfolioSegmentMember2023-07-012023-09-300001163370us-gaap:PrincipalForgivenessMemberus-gaap:CommercialPortfolioSegmentMember2024-01-012024-09-300001163370us-gaap:PrincipalForgivenessMemberus-gaap:CommercialPortfolioSegmentMember2023-01-012023-09-300001163370us-gaap:PrincipalForgivenessMemberus-gaap:CommercialRealEstatePortfolioSegmentMembernrim:OwnerOccupiedPropertiesMember2023-01-012023-09-300001163370us-gaap:PrincipalForgivenessMemberus-gaap:ResidentialPortfolioSegmentMembernrim:PropertiesSecuredByJuniorLiensAndRevolvingSecuredByFamilyFirstLiensMember2023-01-012023-09-300001163370us-gaap:PrincipalForgivenessMemberus-gaap:ResidentialPortfolioSegmentMemberus-gaap:ConstructionLoansMember2023-01-012023-09-300001163370us-gaap:PrincipalForgivenessMembernrim:OtherConstructionLandDevelopmentAndRawLandLoansPortfolioSegmentMember2023-01-012023-09-300001163370us-gaap:ExtendedMaturityMemberus-gaap:ResidentialPortfolioSegmentMembernrim:PropertiesSecuredByJuniorLiensAndRevolvingSecuredByFamilyFirstLiensMember2024-07-012024-09-300001163370us-gaap:ExtendedMaturityMemberus-gaap:ResidentialPortfolioSegmentMemberus-gaap:ConstructionLoansMember2024-07-012024-09-300001163370us-gaap:ExtendedMaturityMemberus-gaap:ResidentialPortfolioSegmentMemberus-gaap:ConstructionLoansMember2024-01-012024-09-300001163370us-gaap:ExtendedMaturityMembernrim:OtherConstructionLandDevelopmentAndRawLandLoansPortfolioSegmentMember2024-07-012024-09-300001163370us-gaap:ExtendedMaturityMembernrim:OtherConstructionLandDevelopmentAndRawLandLoansPortfolioSegmentMember2024-01-012024-09-300001163370us-gaap:ExtendedMaturityMember2024-07-012024-09-300001163370us-gaap:ExtendedMaturityMemberus-gaap:CommercialPortfolioSegmentMembernrim:OwnerOccupiedPropertiesMember2023-07-012023-09-300001163370nrim:PaymentDeferralAndExtendedMaturityMemberus-gaap:CommercialPortfolioSegmentMembernrim:OwnerOccupiedPropertiesMember2023-07-012023-09-300001163370us-gaap:FinancingReceivables60To89DaysPastDueMemberus-gaap:CommercialPortfolioSegmentMember2023-09-300001163370us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberus-gaap:CommercialPortfolioSegmentMember2023-09-300001163370us-gaap:FinancialAssetPastDueMemberus-gaap:CommercialPortfolioSegmentMember2023-09-300001163370us-gaap:FinancialAssetNotPastDueMemberus-gaap:CommercialPortfolioSegmentMember2023-09-300001163370us-gaap:CommercialRealEstatePortfolioSegmentMembernrim:OwnerOccupiedPropertiesMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2023-09-300001163370us-gaap:CommercialRealEstatePortfolioSegmentMembernrim:OwnerOccupiedPropertiesMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2023-09-300001163370us-gaap:CommercialRealEstatePortfolioSegmentMembernrim:OwnerOccupiedPropertiesMemberus-gaap:FinancialAssetPastDueMember2023-09-300001163370us-gaap:CommercialRealEstatePortfolioSegmentMembernrim:OwnerOccupiedPropertiesMemberus-gaap:FinancialAssetNotPastDueMember2023-09-300001163370us-gaap:ResidentialPortfolioSegmentMembernrim:PropertiesSecuredByJuniorLiensAndRevolvingSecuredByFamilyFirstLiensMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2023-09-300001163370us-gaap:ResidentialPortfolioSegmentMembernrim:PropertiesSecuredByJuniorLiensAndRevolvingSecuredByFamilyFirstLiensMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2023-09-300001163370us-gaap:ResidentialPortfolioSegmentMembernrim:PropertiesSecuredByJuniorLiensAndRevolvingSecuredByFamilyFirstLiensMemberus-gaap:FinancialAssetPastDueMember2023-09-300001163370us-gaap:ResidentialPortfolioSegmentMembernrim:PropertiesSecuredByJuniorLiensAndRevolvingSecuredByFamilyFirstLiensMemberus-gaap:FinancialAssetNotPastDueMember2023-09-300001163370us-gaap:ResidentialPortfolioSegmentMemberus-gaap:ConstructionLoansMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2023-09-300001163370us-gaap:ResidentialPortfolioSegmentMemberus-gaap:ConstructionLoansMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2023-09-300001163370us-gaap:ResidentialPortfolioSegmentMemberus-gaap:ConstructionLoansMemberus-gaap:FinancialAssetPastDueMember2023-09-300001163370us-gaap:ResidentialPortfolioSegmentMemberus-gaap:ConstructionLoansMemberus-gaap:FinancialAssetNotPastDueMember2023-09-300001163370us-gaap:FinancingReceivables60To89DaysPastDueMembernrim:OtherConstructionLandDevelopmentAndRawLandLoansPortfolioSegmentMember2023-09-300001163370us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMembernrim:OtherConstructionLandDevelopmentAndRawLandLoansPortfolioSegmentMember2023-09-300001163370us-gaap:FinancialAssetPastDueMembernrim:OtherConstructionLandDevelopmentAndRawLandLoansPortfolioSegmentMember2023-09-300001163370us-gaap:FinancialAssetNotPastDueMembernrim:OtherConstructionLandDevelopmentAndRawLandLoansPortfolioSegmentMember2023-09-300001163370us-gaap:FinancingReceivables60To89DaysPastDueMember2023-09-300001163370us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2023-09-300001163370us-gaap:FinancialAssetPastDueMember2023-09-300001163370us-gaap:FinancialAssetNotPastDueMember2023-09-300001163370us-gaap:NonperformingFinancingReceivableMembernrim:PurchasedReceivableMember2023-12-310001163370nrim:PurchasedReceivableMember2024-01-012024-09-300001163370nrim:PurchasedReceivableMember2023-01-012023-12-310001163370nrim:PurchasedReceivableMember2024-09-300001163370nrim:PurchasedReceivableMember2023-12-310001163370nrim:MortgageServicingRightsMember2024-06-300001163370nrim:MortgageServicingRightsMember2023-06-300001163370nrim:MortgageServicingRightsMember2022-12-310001163370nrim:MortgageServicingRightsMember2024-07-012024-09-300001163370nrim:MortgageServicingRightsMember2023-07-012023-09-300001163370nrim:MortgageServicingRightsMember2024-01-012024-09-300001163370nrim:MortgageServicingRightsMember2023-01-012023-09-300001163370nrim:MortgageServicingRightsMember2023-09-300001163370nrim:OtherNoninterestIncomeMember2024-07-012024-09-300001163370nrim:OtherNoninterestIncomeMember2023-07-012023-09-300001163370nrim:OtherNoninterestIncomeMember2024-01-012024-09-300001163370nrim:OtherNoninterestIncomeMember2023-01-012023-09-300001163370nrim:MortgageServicingRightsMember2023-01-012023-12-310001163370nrim:CommercialServicingRightsMember2024-09-300001163370nrim:CommercialServicingRightsMember2023-12-310001163370nrim:CommercialServicingRightsMember2023-01-012023-12-310001163370nrim:CommercialServicingRightsMember2024-01-012024-09-300001163370nrim:VariabletoFixedMember2024-09-300001163370nrim:FixedtoVariableMember2024-09-300001163370us-gaap:SubordinatedDebtMember2024-09-300001163370us-gaap:SubordinatedDebtMembernrim:LondonInterbankOfferedRateLIBOR1Member2023-01-012023-09-150001163370us-gaap:SecuredOvernightFinancingRateSofrMember2023-09-162024-09-300001163370us-gaap:SubordinatedDebtMemberus-gaap:SecuredOvernightFinancingRateSofrMember2023-09-162024-09-300001163370us-gaap:SubordinatedDebtMember2024-01-012024-09-300001163370us-gaap:InterestRateSwapMemberus-gaap:DesignatedAsHedgingInstrumentMember2023-12-310001163370us-gaap:InterestRateSwapMemberus-gaap:DesignatedAsHedgingInstrumentMember2024-09-300001163370nrim:ResidentialMortgageHoldingCompanyLlcMember2024-09-300001163370nrim:ResidentialMortgageHoldingCompanyLlcMember2023-12-310001163370us-gaap:InterestRateSwapMemberus-gaap:NondesignatedMemberus-gaap:OtherAssetsMember2024-09-300001163370us-gaap:InterestRateSwapMemberus-gaap:NondesignatedMemberus-gaap:OtherAssetsMember2023-12-310001163370us-gaap:InterestRateLockCommitmentsMemberus-gaap:NondesignatedMemberus-gaap:OtherAssetsMember2024-09-300001163370us-gaap:InterestRateLockCommitmentsMemberus-gaap:NondesignatedMemberus-gaap:OtherAssetsMember2023-12-310001163370us-gaap:NondesignatedMember2024-09-300001163370us-gaap:NondesignatedMember2023-12-310001163370us-gaap:InterestRateSwapMemberus-gaap:NondesignatedMemberus-gaap:OtherLiabilitiesMember2024-09-300001163370us-gaap:InterestRateSwapMemberus-gaap:NondesignatedMemberus-gaap:OtherLiabilitiesMember2023-12-310001163370us-gaap:InterestRateContractMemberus-gaap:NondesignatedMemberus-gaap:OtherLiabilitiesMember2024-09-300001163370us-gaap:InterestRateContractMemberus-gaap:NondesignatedMemberus-gaap:OtherLiabilitiesMember2023-12-310001163370us-gaap:InterestRateContractMemberus-gaap:NondesignatedMemberus-gaap:OtherIncomeMember2024-07-012024-09-300001163370us-gaap:InterestRateContractMemberus-gaap:NondesignatedMemberus-gaap:OtherIncomeMember2023-07-012023-09-300001163370us-gaap:InterestRateContractMemberus-gaap:NondesignatedMemberus-gaap:OtherIncomeMember2024-01-012024-09-300001163370us-gaap:InterestRateContractMemberus-gaap:NondesignatedMemberus-gaap:OtherIncomeMember2023-01-012023-09-300001163370us-gaap:InterestRateLockCommitmentsMemberus-gaap:NondesignatedMemberus-gaap:OtherIncomeMember2024-07-012024-09-300001163370us-gaap:InterestRateLockCommitmentsMemberus-gaap:NondesignatedMemberus-gaap:OtherIncomeMember2023-07-012023-09-300001163370us-gaap:InterestRateLockCommitmentsMemberus-gaap:NondesignatedMemberus-gaap:OtherIncomeMember2024-01-012024-09-300001163370us-gaap:InterestRateLockCommitmentsMemberus-gaap:NondesignatedMemberus-gaap:OtherIncomeMember2023-01-012023-09-300001163370us-gaap:OtherIncomeMemberus-gaap:NondesignatedMember2024-07-012024-09-300001163370us-gaap:OtherIncomeMemberus-gaap:NondesignatedMember2023-07-012023-09-300001163370us-gaap:OtherIncomeMemberus-gaap:NondesignatedMember2024-01-012024-09-300001163370us-gaap:OtherIncomeMemberus-gaap:NondesignatedMember2023-01-012023-09-300001163370us-gaap:InterestRateSwapMemberus-gaap:NondesignatedMember2024-09-300001163370us-gaap:InterestRateContractMemberus-gaap:NondesignatedMember2024-09-300001163370us-gaap:InterestRateSwapMemberus-gaap:NondesignatedMember2023-12-310001163370us-gaap:InterestRateContractMemberus-gaap:NondesignatedMember2023-12-310001163370us-gaap:FairValueInputsLevel1Memberus-gaap:CarryingReportedAmountFairValueDisclosureMember2024-09-300001163370us-gaap:FairValueInputsLevel1Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2024-09-300001163370us-gaap:FairValueInputsLevel1Memberus-gaap:CarryingReportedAmountFairValueDisclosureMember2023-12-310001163370us-gaap:FairValueInputsLevel1Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2023-12-310001163370us-gaap:FairValueInputsLevel2Memberus-gaap:CarryingReportedAmountFairValueDisclosureMember2024-09-300001163370us-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2024-09-300001163370us-gaap:FairValueInputsLevel2Memberus-gaap:CarryingReportedAmountFairValueDisclosureMember2023-12-310001163370us-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2023-12-310001163370us-gaap:FairValueInputsLevel2Memberus-gaap:InterestRateSwapMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2024-09-300001163370us-gaap:FairValueInputsLevel2Memberus-gaap:InterestRateSwapMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2024-09-300001163370us-gaap:FairValueInputsLevel2Memberus-gaap:InterestRateSwapMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2023-12-310001163370us-gaap:FairValueInputsLevel2Memberus-gaap:InterestRateSwapMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2023-12-310001163370us-gaap:FairValueInputsLevel3Memberus-gaap:CarryingReportedAmountFairValueDisclosureMember2024-09-300001163370us-gaap:FairValueInputsLevel3Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2024-09-300001163370us-gaap:FairValueInputsLevel3Memberus-gaap:CarryingReportedAmountFairValueDisclosureMember2023-12-310001163370us-gaap:FairValueInputsLevel3Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2023-12-310001163370us-gaap:FairValueInputsLevel3Memberus-gaap:InterestRateLockCommitmentsMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2024-09-300001163370us-gaap:FairValueInputsLevel3Memberus-gaap:InterestRateLockCommitmentsMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2024-09-300001163370us-gaap:FairValueInputsLevel3Memberus-gaap:InterestRateLockCommitmentsMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2023-12-310001163370us-gaap:FairValueInputsLevel3Memberus-gaap:InterestRateLockCommitmentsMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2023-12-310001163370us-gaap:FairValueInputsLevel3Memberus-gaap:CarryingReportedAmountFairValueDisclosureMembernrim:MortgageServicingRightsMember2024-09-300001163370us-gaap:FairValueInputsLevel3Memberus-gaap:EstimateOfFairValueFairValueDisclosureMembernrim:MortgageServicingRightsMember2024-09-300001163370us-gaap:FairValueInputsLevel3Memberus-gaap:CarryingReportedAmountFairValueDisclosureMembernrim:MortgageServicingRightsMember2023-12-310001163370us-gaap:FairValueInputsLevel3Memberus-gaap:EstimateOfFairValueFairValueDisclosureMembernrim:MortgageServicingRightsMember2023-12-310001163370us-gaap:FairValueInputsLevel3Memberus-gaap:CarryingReportedAmountFairValueDisclosureMembernrim:CommercialServicingRightsMember2024-09-300001163370us-gaap:FairValueInputsLevel3Memberus-gaap:EstimateOfFairValueFairValueDisclosureMembernrim:CommercialServicingRightsMember2024-09-300001163370us-gaap:FairValueInputsLevel3Memberus-gaap:CarryingReportedAmountFairValueDisclosureMembernrim:CommercialServicingRightsMember2023-12-310001163370us-gaap:FairValueInputsLevel3Memberus-gaap:EstimateOfFairValueFairValueDisclosureMembernrim:CommercialServicingRightsMember2023-12-310001163370us-gaap:FairValueInputsLevel2Memberus-gaap:InterestRateContractMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2024-09-300001163370us-gaap:FairValueInputsLevel2Memberus-gaap:InterestRateContractMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2024-09-300001163370us-gaap:FairValueInputsLevel2Memberus-gaap:InterestRateContractMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2023-12-310001163370us-gaap:FairValueInputsLevel2Memberus-gaap:InterestRateContractMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2023-12-310001163370us-gaap:FairValueInputsLevel1Memberus-gaap:USTreasuryAndGovernmentMember2024-09-300001163370us-gaap:FairValueInputsLevel2Memberus-gaap:USTreasuryAndGovernmentMember2024-09-300001163370us-gaap:FairValueInputsLevel3Memberus-gaap:USTreasuryAndGovernmentMember2024-09-300001163370us-gaap:FairValueInputsLevel1Memberus-gaap:CorporateDebtSecuritiesMember2024-09-300001163370us-gaap:FairValueInputsLevel2Memberus-gaap:CorporateDebtSecuritiesMember2024-09-300001163370us-gaap:FairValueInputsLevel3Memberus-gaap:CorporateDebtSecuritiesMember2024-09-300001163370us-gaap:FairValueInputsLevel1Memberus-gaap:CollateralizedLoanObligationsMember2024-09-300001163370us-gaap:FairValueInputsLevel2Memberus-gaap:CollateralizedLoanObligationsMember2024-09-300001163370us-gaap:FairValueInputsLevel3Memberus-gaap:CollateralizedLoanObligationsMember2024-09-300001163370us-gaap:FairValueInputsLevel1Member2024-09-300001163370us-gaap:FairValueInputsLevel2Member2024-09-300001163370us-gaap:FairValueInputsLevel3Member2024-09-300001163370us-gaap:EquitySecuritiesMember2024-09-300001163370us-gaap:FairValueInputsLevel1Memberus-gaap:EquitySecuritiesMember2024-09-300001163370us-gaap:FairValueInputsLevel2Memberus-gaap:EquitySecuritiesMember2024-09-300001163370us-gaap:FairValueInputsLevel3Memberus-gaap:EquitySecuritiesMember2024-09-300001163370us-gaap:InterestRateSwapMember2024-09-300001163370us-gaap:FairValueInputsLevel1Memberus-gaap:InterestRateSwapMember2024-09-300001163370us-gaap:FairValueInputsLevel2Memberus-gaap:InterestRateSwapMember2024-09-300001163370us-gaap:FairValueInputsLevel3Memberus-gaap:InterestRateSwapMember2024-09-300001163370us-gaap:InterestRateLockCommitmentsMember2024-09-300001163370us-gaap:FairValueInputsLevel1Memberus-gaap:InterestRateLockCommitmentsMember2024-09-300001163370us-gaap:FairValueInputsLevel2Memberus-gaap:InterestRateLockCommitmentsMember2024-09-300001163370us-gaap:FairValueInputsLevel3Memberus-gaap:InterestRateLockCommitmentsMember2024-09-300001163370us-gaap:FairValueInputsLevel1Membernrim:MortgageServicingRightsMember2024-09-300001163370us-gaap:FairValueInputsLevel2Membernrim:MortgageServicingRightsMember2024-09-300001163370us-gaap:FairValueInputsLevel3Membernrim:MortgageServicingRightsMember2024-09-300001163370us-gaap:FairValueInputsLevel1Membernrim:CommercialServicingRightsMember2024-09-300001163370us-gaap:FairValueInputsLevel2Membernrim:CommercialServicingRightsMember2024-09-300001163370us-gaap:FairValueInputsLevel3Membernrim:CommercialServicingRightsMember2024-09-300001163370us-gaap:InterestRateContractMember2024-09-300001163370us-gaap:FairValueInputsLevel1Memberus-gaap:InterestRateContractMember2024-09-300001163370us-gaap:FairValueInputsLevel2Memberus-gaap:InterestRateContractMember2024-09-300001163370us-gaap:FairValueInputsLevel3Memberus-gaap:InterestRateContractMember2024-09-300001163370us-gaap:FairValueInputsLevel1Memberus-gaap:USTreasuryAndGovernmentMember2023-12-310001163370us-gaap:FairValueInputsLevel2Memberus-gaap:USTreasuryAndGovernmentMember2023-12-310001163370us-gaap:FairValueInputsLevel3Memberus-gaap:USTreasuryAndGovernmentMember2023-12-310001163370us-gaap:USStatesAndPoliticalSubdivisionsMember2023-12-310001163370us-gaap:FairValueInputsLevel1Memberus-gaap:USStatesAndPoliticalSubdivisionsMember2023-12-310001163370us-gaap:FairValueInputsLevel2Memberus-gaap:USStatesAndPoliticalSubdivisionsMember2023-12-310001163370us-gaap:FairValueInputsLevel3Memberus-gaap:USStatesAndPoliticalSubdivisionsMember2023-12-310001163370us-gaap:FairValueInputsLevel1Memberus-gaap:CorporateDebtSecuritiesMember2023-12-310001163370us-gaap:FairValueInputsLevel2Memberus-gaap:CorporateDebtSecuritiesMember2023-12-310001163370us-gaap:FairValueInputsLevel3Memberus-gaap:CorporateDebtSecuritiesMember2023-12-310001163370us-gaap:FairValueInputsLevel1Memberus-gaap:CollateralizedLoanObligationsMember2023-12-310001163370us-gaap:FairValueInputsLevel2Memberus-gaap:CollateralizedLoanObligationsMember2023-12-310001163370us-gaap:FairValueInputsLevel3Memberus-gaap:CollateralizedLoanObligationsMember2023-12-310001163370us-gaap:FairValueInputsLevel1Member2023-12-310001163370us-gaap:FairValueInputsLevel2Member2023-12-310001163370us-gaap:FairValueInputsLevel3Member2023-12-310001163370us-gaap:EquitySecuritiesMember2023-12-310001163370us-gaap:FairValueInputsLevel1Memberus-gaap:EquitySecuritiesMember2023-12-310001163370us-gaap:FairValueInputsLevel2Memberus-gaap:EquitySecuritiesMember2023-12-310001163370us-gaap:FairValueInputsLevel3Memberus-gaap:EquitySecuritiesMember2023-12-310001163370us-gaap:InterestRateSwapMember2023-12-310001163370us-gaap:FairValueInputsLevel1Memberus-gaap:InterestRateSwapMember2023-12-310001163370us-gaap:FairValueInputsLevel2Memberus-gaap:InterestRateSwapMember2023-12-310001163370us-gaap:FairValueInputsLevel3Memberus-gaap:InterestRateSwapMember2023-12-310001163370us-gaap:InterestRateLockCommitmentsMember2023-12-310001163370us-gaap:FairValueInputsLevel1Memberus-gaap:InterestRateLockCommitmentsMember2023-12-310001163370us-gaap:FairValueInputsLevel2Memberus-gaap:InterestRateLockCommitmentsMember2023-12-310001163370us-gaap:FairValueInputsLevel3Memberus-gaap:InterestRateLockCommitmentsMember2023-12-310001163370us-gaap:FairValueInputsLevel1Membernrim:MortgageServicingRightsMember2023-12-310001163370us-gaap:FairValueInputsLevel2Membernrim:MortgageServicingRightsMember2023-12-310001163370us-gaap:FairValueInputsLevel3Membernrim:MortgageServicingRightsMember2023-12-310001163370us-gaap:FairValueInputsLevel1Membernrim:CommercialServicingRightsMember2023-12-310001163370us-gaap:FairValueInputsLevel2Membernrim:CommercialServicingRightsMember2023-12-310001163370us-gaap:FairValueInputsLevel3Membernrim:CommercialServicingRightsMember2023-12-310001163370us-gaap:InterestRateContractMember2023-12-310001163370us-gaap:FairValueInputsLevel1Memberus-gaap:InterestRateContractMember2023-12-310001163370us-gaap:FairValueInputsLevel2Memberus-gaap:InterestRateContractMember2023-12-310001163370us-gaap:FairValueInputsLevel3Memberus-gaap:InterestRateContractMember2023-12-310001163370us-gaap:InterestRateLockCommitmentsMember2024-06-300001163370us-gaap:InterestRateLockCommitmentsMember2024-07-012024-09-300001163370nrim:CommercialServicingRightsMember2024-06-300001163370nrim:CommercialServicingRightsMember2024-07-012024-09-300001163370us-gaap:InterestRateLockCommitmentsMember2023-06-300001163370us-gaap:InterestRateLockCommitmentsMember2023-07-012023-09-300001163370us-gaap:InterestRateLockCommitmentsMember2023-09-300001163370nrim:CommercialServicingRightsMember2023-06-300001163370nrim:CommercialServicingRightsMember2023-07-012023-09-300001163370nrim:CommercialServicingRightsMember2023-09-300001163370us-gaap:InterestRateLockCommitmentsMember2024-01-012024-09-300001163370us-gaap:InterestRateLockCommitmentsMember2022-12-310001163370us-gaap:InterestRateLockCommitmentsMember2023-01-012023-09-300001163370nrim:CommercialServicingRightsMember2022-12-310001163370nrim:CommercialServicingRightsMember2023-01-012023-09-300001163370us-gaap:FairValueMeasurementsNonrecurringMember2024-09-300001163370us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsNonrecurringMember2024-09-300001163370us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsNonrecurringMember2024-09-300001163370us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsNonrecurringMember2024-09-300001163370us-gaap:FairValueMeasurementsNonrecurringMember2023-12-310001163370us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsNonrecurringMember2023-12-310001163370us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsNonrecurringMember2023-12-310001163370us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsNonrecurringMember2023-12-310001163370us-gaap:FinanceReceivablesMember2024-07-012024-09-300001163370us-gaap:FinanceReceivablesMember2023-07-012023-09-300001163370us-gaap:FinanceReceivablesMember2024-01-012024-09-300001163370us-gaap:FinanceReceivablesMember2023-01-012023-09-300001163370us-gaap:FairValueMeasurementsRecurringMembernrim:MeasurementInputPullThroughRateMemberus-gaap:IncomeApproachValuationTechniqueMembersrt:WeightedAverageMember2024-09-300001163370us-gaap:FairValueMeasurementsRecurringMembersrt:MinimumMembernrim:MortgageServicingRightsMemberus-gaap:MeasurementInputConstantPrepaymentRateMemberus-gaap:ValuationTechniqueDiscountedCashFlowMember2024-09-300001163370us-gaap:FairValueMeasurementsRecurringMembersrt:MaximumMembernrim:MortgageServicingRightsMemberus-gaap:MeasurementInputConstantPrepaymentRateMemberus-gaap:ValuationTechniqueDiscountedCashFlowMember2024-09-300001163370us-gaap:FairValueMeasurementsRecurringMembersrt:MinimumMembernrim:MortgageServicingRightsMemberus-gaap:MeasurementInputDiscountRateMemberus-gaap:ValuationTechniqueDiscountedCashFlowMember2024-09-300001163370us-gaap:FairValueMeasurementsRecurringMembersrt:MaximumMembernrim:MortgageServicingRightsMemberus-gaap:MeasurementInputDiscountRateMemberus-gaap:ValuationTechniqueDiscountedCashFlowMember2024-09-300001163370us-gaap:FairValueMeasurementsRecurringMembersrt:MinimumMembernrim:CommercialServicingRightsMemberus-gaap:MeasurementInputConstantPrepaymentRateMemberus-gaap:ValuationTechniqueDiscountedCashFlowMember2024-09-300001163370us-gaap:FairValueMeasurementsRecurringMembersrt:MaximumMembernrim:CommercialServicingRightsMemberus-gaap:MeasurementInputConstantPrepaymentRateMemberus-gaap:ValuationTechniqueDiscountedCashFlowMember2024-09-300001163370us-gaap:FairValueMeasurementsRecurringMembersrt:WeightedAverageMembernrim:CommercialServicingRightsMemberus-gaap:MeasurementInputDiscountRateMemberus-gaap:ValuationTechniqueDiscountedCashFlowMember2024-09-300001163370us-gaap:FairValueMeasurementsRecurringMembernrim:MeasurementInputPullThroughRateMemberus-gaap:IncomeApproachValuationTechniqueMembersrt:WeightedAverageMember2023-12-310001163370us-gaap:FairValueMeasurementsRecurringMembersrt:MinimumMembernrim:MortgageServicingRightsMemberus-gaap:MeasurementInputConstantPrepaymentRateMemberus-gaap:ValuationTechniqueDiscountedCashFlowMember2023-12-310001163370us-gaap:FairValueMeasurementsRecurringMembersrt:MaximumMembernrim:MortgageServicingRightsMemberus-gaap:MeasurementInputConstantPrepaymentRateMemberus-gaap:ValuationTechniqueDiscountedCashFlowMember2023-12-310001163370us-gaap:FairValueMeasurementsRecurringMembersrt:MinimumMembernrim:MortgageServicingRightsMemberus-gaap:MeasurementInputDiscountRateMemberus-gaap:ValuationTechniqueDiscountedCashFlowMember2023-12-310001163370us-gaap:FairValueMeasurementsRecurringMembersrt:MaximumMembernrim:MortgageServicingRightsMemberus-gaap:MeasurementInputDiscountRateMemberus-gaap:ValuationTechniqueDiscountedCashFlowMember2023-12-310001163370us-gaap:FairValueMeasurementsRecurringMembersrt:MinimumMembernrim:CommercialServicingRightsMemberus-gaap:MeasurementInputConstantPrepaymentRateMemberus-gaap:ValuationTechniqueDiscountedCashFlowMember2023-12-310001163370us-gaap:FairValueMeasurementsRecurringMembersrt:MaximumMembernrim:CommercialServicingRightsMemberus-gaap:MeasurementInputConstantPrepaymentRateMemberus-gaap:ValuationTechniqueDiscountedCashFlowMember2023-12-310001163370us-gaap:FairValueMeasurementsRecurringMembersrt:WeightedAverageMembernrim:CommercialServicingRightsMemberus-gaap:MeasurementInputDiscountRateMemberus-gaap:ValuationTechniqueDiscountedCashFlowMember2023-12-310001163370us-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:MeasurementInputDiscountRateMemberus-gaap:IncomeApproachValuationTechniqueMembersrt:WeightedAverageMember2024-09-300001163370nrim:CommunityBankingSegmentMember2024-09-300001163370nrim:CommunityBankingSegmentMember2024-07-012024-09-300001163370nrim:HomeMortgageLendingSegmentMember2024-07-012024-09-300001163370nrim:CommunityBankingSegmentMember2023-07-012023-09-300001163370nrim:HomeMortgageLendingSegmentMember2023-07-012023-09-300001163370nrim:CommunityBankingSegmentMember2024-01-012024-09-300001163370nrim:HomeMortgageLendingSegmentMember2024-01-012024-09-300001163370nrim:CommunityBankingSegmentMember2023-01-012023-09-300001163370nrim:HomeMortgageLendingSegmentMember2023-01-012023-09-300001163370nrim:HomeMortgageLendingSegmentMember2024-09-300001163370nrim:CommunityBankingSegmentMember2023-12-310001163370nrim:HomeMortgageLendingSegmentMember2023-12-31

美國證券交易委員會
華盛頓特區20549
表格 10-Q
（標記一）
☑    根據1934年證券交易法第13條或15(d)條，提交的季度報告
截至季度結束日期的財務報告2024年9月30日
☐    根據1934年證券交易法第13條或15(d)條，提交的過渡報告
在______至______的過渡期間
委員會文件號 000-33501
NORTHRIm BANCORP， INC。
(根據其章程規定的註冊人準確名稱)
阿拉斯加 92-0175752
（國家或其他管轄區的 公司成立或組織）
 （納稅人識別號碼）
3111 C街
安克雷奇, 阿拉斯加 99503
，（主要行政辦公地址）    (郵政編碼) 

(907) 562-0062

(註冊人電話號碼，包括區號)
根據該法案第12(b)節註冊的證券：無
每種類別的名稱交易標的交易所名稱
請在複選框內打「√」表示公司已按照1934年證券交易法第13或15(d)條的規定提交了過去12個月（或爲期更短的期間，公司必須提交此類報告）的所有報告，並且公司在過去90天一直受到此類報告的提交要求。
ý 是  ¨否
請通過選框標記方式指示註冊人是否在過去12個月內（或註冊人必須提交此類文件的較短期間內），按照S-T條例（本章232.405條）的規定提交併發佈了每個交互數據文件。
ý 是  ¨否
請用勾選標記說明公司是大型加速文件提交者、加速文件提交者、非加速文件提交者、較小報告公司還是新興成長公司。請參閱《交易所法》規則120億.2中關於「大型加速文件提交者」、「加速文件提交者」、「較小報告公司」和「新興成長公司」的定義。
大型加速申報人¨  加速存取器 ý 非加速歸檔者 ¨
小型報告公司☐ 新興成長型企業 ☐

如果是新興成長型企業，請勾選複選標記，表明註冊者已選擇不使用延長過渡期來符合根據證券交易法第13(a)條規定提供的任何新財務會計準則。 ¨
請用複選標記表示註冊人是否爲殼公司（如《交易所法規》第120億.2條定義）。
☐ 是 ý否

2024年10月30日，發行人普通股每股面值1美元的股份數量爲 5,501,943.


目錄
   
第一部分財務信息 
項目1。基本報表（未經審計）
事項二
第3項。
事項4。
第二部分其他信息 
項目1。
項目1A。
事項二
項目5。
項目6。

1

第一部分 財務信息
這些合併基本報表應與包括在Northrim BanCorp, Inc.截至2023年12月31日年度報告Form 10-k中的合併基本報表、附註和其他相關信息一起閱讀。

項目1.基本報表
2

合併財務報表
NORTHRIm BANCORP， INC。
合併資產負債表
(未經審計)
 2020年9月30日
2024		12月31日
2023
股票數量
資產  
現金和存放在銀行的款項$42,805 $27,457 
在其他銀行的利息 bearing 存款60,071 91,073 
可供出售的投資證券，按公允價值計量545,210 637,936 
可變現股份12,957 13,153 
（扣除信用損失準備金$0）36,750 36,750 
投資於聯邦住房抵押貸款銀行股票4,318 2,980 
待售貸款97,937 31,974 
貸款2,007,565 1,789,497 
信貸損失準備，貸款(19,528)(17,270)
淨貸款1,988,037 1,772,227 
購買應收賬款，淨額23,564 36,842 
公允價值計量的抵押貸款服務權21,570 19,564 
資產和設備淨值39,625 40,693 
經營租賃權使用資產7,616 9,092 
商譽15,017 15,017 
其他無形資產，淨額950 950 
其他66,965 71,789 
總資產$2,963,392 $2,807,497 
負債  
存款：  
需求$763,595 $749,683 
活期存款979,238 927,291 
儲蓄245,043 255,338 
貨幣市場201,821 221,492 
存款證書少於$250,000219,838 189,106 
存款證書$250,000及以上216,032 142,145 
存款總額2,625,567 2,485,055 
借款13,354 13,675 
初級次級債券10,310 10,310 
經營租賃負債7,635 9,092 
其他負債46,476 54,647 
負債合計2,703,342 2,572,779 
股東權益  
優先股，$0.00011每股面值，2,500,000 無A類普通股，每股面值爲$
— — 
普通股，每股面值爲 $0.0001；1每股面值，10,000,000 5,501,943和頁面。5,513,459 截至2024年9月30日和2023年12月31日，已發行並流通的股份分別爲
5,502 5,513 
額外實收資本9,460 9,605 
保留盈餘251,842 236,037 
歸屬於母公司股東權益的累積其他綜合收益（扣除所得稅後）(6,754)(16,437)
股東權益合計260,050 234,718 
負債和股東權益合計$2,963,392 $2,807,497 
請參閱基本報表中的註釋
3

NORTHRIm BANCORP， INC。
綜合收益表
(未經審計)
三個月之內結束九個月結束
2020年9月30日2020年9月30日
（以千爲單位，每股數據除外）2024202320242023
利息和股息收入  
貸款和待售貸款的利息和費用$34,863 $29,097 $97,680 $79,104 
可供出售的投資證券利息3,408 4,012 10,682 11,942 
市場股權證券的分紅派息209 199 679 542 
持有到期投資證券的利息467 473 1,419 1,420 
聯邦住房貸款銀行股票的分紅派息80 43 214 114 
在其他銀行的存款利息389 584 1,459 2,901 
總利息和股息收入39,416 34,408 112,133 96,023 
利息費用  
存款的利息支出10,123 7,138 28,779 17,835 
借款利息支出357 825 729 1,381 
次級次優債券利息支出94 95 283 283 
利息支出合計10,574 8,058 29,791 19,499 
淨利息收入28,842 26,350 82,342 76,524 
撥備
2,063 1,190 2,092 2,957 
減去信貸準備後的淨利息收入
26,779 25,160 80,250 73,567 
其他營業收入  
抵押貸款業務收入7,047 4,405 16,962 10,326 
銀行卡費用1,196 1,022 3,218 2,916 
購買應收賬款收入1,033 1,180 3,620 3,175 
存入資金帳戶的服務費605 550 1,726 1,512 
可交易股票股權的未實現盈利（損失）
576 12 830 (445)
其他收入1,130 833 2,652 2,406 
其他營業收入合計11,587 8,002 29,008 19,890 
其他營業費用  
薪資及其他人員費用17,549 15,657 49,593 46,324 
數據處理費用2,618 2,589 7,878 7,321 
房租費用1,911 1,857 5,716 5,611 
專業和外部服務903 803 2,384 2,326 
營銷費用860 499 2,063 1,996 
保險費用596 640 2,067 1,844 
OREO費用、淨租金收入和出售收益2 (784)(387)(766)
無形資產攤銷費用— 4 — 11 
其他營業費用2,289 1,631 6,246 5,521 
其他營業費用總額26,728 22,896 75,560 70,188 
稅前收益11,638 10,266 33,698 23,269 
所得稅費用2,813 1,892 7,654 4,488 
淨利潤$8,825 $8,374 $26,044 $18,781 
基本每股收益$1.60 $1.50 $4.73 $3.34 
稀釋每股收益$1.57 $1.48 $4.67 $3.30 
基本普通股流通在外數量加權平均
5,501,943 5,569,238 5,500,703 5,630,948 
稀釋普通股流通在外數量加權平均
5,583,055 5,624,906 5,574,135 5,688,687 
See notes to consolidated financial statements
4

NORTHRIM BANCORP, INC.
Consolidated Statements of Comprehensive Income
(Unaudited)
2010
Three Months Ended September 30,Nine Months Ended September 30,
(In Thousands)2024202320242023
Net income$8,825 $8,374 $26,044 $18,781 
Other comprehensive income (loss), net of tax:  
   Securities available for sale:  
         Unrealized holding gains arising during the period
$10,591 $1,320 $13,689 $5,025 
Derivatives and hedging activities:
     Unrealized holding gains (losses) arising during the period
(488)639 (160)621 
Income tax expense related to unrealized (gains) losses
(2,872)(557)(3,847)(1,606)
Other comprehensive income, net of tax
7,231 1,402 9,682 4,040 
Comprehensive income
$16,056 $9,776 $35,726 $22,821 
 
See notes to consolidated financial statements

5

NORTHRIM BANCORP, INC.
Consolidated Statements of Changes in Shareholders’ Equity
(Unaudited)
 Common StockAdditional Paid-in Capital Retained EarningsAccumulated Other Comprehensive Income (Loss), net of Tax Total
 Number of SharesPar Value
(In Thousands)
Balance as of January 1, 20235,701 $5,701 $17,784 $224,225 ($29,081)$218,629 
Cash dividend on common stock ($0.60 per share)
— — — (3,444)— (3,444)
Stock-based compensation expense— — 140 — — 140 
Repurchase of common stock(28)(28)(1,299)— — (1,327)
Other comprehensive gain, net of tax
— — — — 5,597 5,597 
Net income— — — 4,830 — 4,830 
Balance as of March 31, 20235,673 $5,673 $16,625 $225,611 ($23,484)$224,425 
Cash dividend on common stock ($0.60 per share)
— — — (3,432)— (3,432)
Stock-based compensation expense— — 225 — — 225 
Repurchase of common stock(62)(62)(2,439)— — (2,501)
Other comprehensive loss, net of tax— — — — (2,958)(2,958)
Net income— — — 5,577 — 5,577 
Balance as of June 30, 20235,611 $5,611 $14,411 $227,756 ($26,442)$221,336 
Cash dividend on common stock ($0.60 per share)
— — — (3,384)— (3,384)
Stock-based compensation expense— — 254 — — 254 
Exercise of stock options and vesting of restricted stock units, net— — (12)— — (12)
Repurchase of common stock(63)(63)(2,648)— — (2,711)
Other comprehensive gain, net of tax
— — — — 1,402 1,402 
Net income— — — 8,374 — 8,374 
Balance as of September 30, 20235,548 $5,548 $12,005 $232,746 ($25,040)$225,259 
Cash dividend on common stock ($0.60 per share)
— — — (3,322)— (3,322)
Stock-based compensation expense— — 318 — — 318 
Exercise of stock options and vesting of restricted stock units, net21 21 (269)— — (248)
Repurchase of common stock(56)(56)(2,449)— — (2,505)
Other comprehensive gain, net of tax
— — — — 8,603 8,603 
Net income— — — 6,613 — 6,613 
Balance as of December 31, 20235,513 $5,513 $9,605 $236,037 ($16,437)$234,718 
 See notes to consolidated financial statements





6

NORTHRIM BANCORP, INC.
Consolidated Statements of Changes in Shareholders’ Equity
(Continued)
(Unaudited)
 Common StockAdditional Paid-in Capital Retained EarningsAccumulated Other Comprehensive Income (Loss), net of Tax Total
 Number of SharesPar Value
(In Thousands)
Balance as of January 1, 20245,513 $5,513 $9,605 $236,037 ($16,437)$234,718 
Cash dividend on common stock ($0.61 per share)
— — — (3,388)— (3,388)
Stock-based compensation expense— — 208 — — 208 
Exercise of stock options and vesting of restricted stock units, net1 1 (27)— — (26)
Repurchase of common stock(14)(14)(774)— — (788)
Other comprehensive gain, net of tax
— — — — 404 404 
Net income— — — 8,199 — 8,199 
Balance as of March 31, 20245,500 $5,500 $9,012 $240,848 ($16,033)$239,327 
Cash dividend on common stock ($0.61 per share)
— — — (3,393)— (3,393)
Stock-based compensation expense— — 219 — — 219 
Exercise of stock options and vesting of restricted stock units, net2 2 (23)— — (21)
Other comprehensive gain, net of tax
— — — — 2,048 2,048 
Net income— — — 9,020 — 9,020 
Balance as of June 30, 20245,502 $5,502 $9,208 $246,475 ($13,985)$247,200 
Cash dividend on common stock ($0.62 per share)
— — — (3,458)— (3,458)
Stock-based compensation expense— — 265 — — 265 
Exercise of stock options and vesting of restricted stock units, net— — (13)— — (13)
Other comprehensive gain, net of tax
— — — — 7,231 7,231 
Net income— — — 8,825 — 8,825 
Balance as of September 30, 20245,502 $5,502 $9,460 $251,842 ($6,754)$260,050 
See notes to consolidated financial statements
7

NORTHRIM BANCORP, INC.
Consolidated Statements of Cash Flows
(Unaudited)
Nine Months Ended September 30,
(In Thousands)20242023
Operating Activities:  
Net income$26,044 $18,781 
Adjustments to Reconcile Net Income to Net Cash (Used) by Operating Activities:
  
Depreciation and amortization of premises and equipment2,712 2,430 
Amortization of software511 865 
Intangible asset amortization— 11 
Amortization of investment security premium, net of discount accretion309 376 
Unrealized (gain) loss on marketable equity securities(830)445 
Stock-based compensation692 619 
Deferred loan fees and amortization, net of costs190 (324)
Provision for credit losses2,092 2,957 
Additions to home mortgage servicing rights carried at fair value(3,080)(2,440)
Change in fair value of home mortgage servicing rights carried at fair value1,074 1,679 
Change in fair value of commercial servicing rights carried at fair value155 144 
Gain on sale of loans(10,247)(6,366)
Proceeds from the sale of loans held for sale
390,907 267,165 
Origination of loans held for sale(446,623)(296,412)
Gain on sale of other real estate owned(392)(929)
Impairment on other real estate owned— 123 
Net changes in assets and liabilities:  
(Increase) in accrued interest receivable(951)(3,265)
Decrease in other assets— 1,903 
(Decrease) increase in other liabilities(6,808)1,127 
Net Cash (Used) by Operating Activities
(44,245)(11,111)
Investing Activities:  
Investment in securities:  
Purchases of investment securities available for sale(19,517)(6,000)
Purchases of marketable equity securities(1,964)(324)
Purchases of FHLB stock(24,872)(5,441)
Proceeds from sales/calls/maturities of securities available for sale125,625 35,528 
Proceeds from calls of marketable equity securities
2,989 — 
Proceeds from redemption of FHLB stock23,534 2,923 
Decrease (increase) in purchased receivables, net
13,278 (14,584)
 Increase in loans, net
(241,563)(218,121)
Proceeds from the sale of loans
23,469 — 
Proceeds from sale of other real estate owned392 929 
Purchases of software(419)(104)
Purchases of premises and equipment(1,644)(5,529)
Net Cash (Used) by Investing Activities
(100,692)(210,723)
Financing Activities:  
Increase in deposits140,512 40,719 
(Decrease) increase in borrowings(321)49,686 
Repurchase of common stock(788)(6,539)
Cash dividends paid(10,120)(10,154)
Net Cash Provided by Financing Activities
129,283 73,712 
Net Change in Cash and Cash Equivalents(15,654)(148,122)
Cash and Cash Equivalents at Beginning of Period118,530 259,350 
Cash and Cash Equivalents at End of Period$102,876 $111,228 
8

Supplemental Information:  
Income taxes paid$3,488 $2,031 
Interest paid$29,286 $18,340 
Noncash commitments to invest in Low Income Housing Tax Credit Partnerships$— $14,273 
Transfer of loans to other real estate owned$— $273 
Non-cash lease liability arising from obtaining right of use assets$265 $423 
Cash dividends declared but not paid$119 $106 
 
See notes to consolidated financial statements
9

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

1. Basis of Presentation and Significant Accounting Policies
The accompanying unaudited consolidated financial statements and corresponding footnotes have been prepared by Northrim BanCorp, Inc. (the “Company”) in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and with instructions to Form 10-Q under the Securities Exchange Act of 1934, as amended. The year-end Consolidated Balance Sheet data was derived from the Company's audited financial statements. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. The Company owns a 100% interest in Residential Mortgage Holding Company, LLC, the parent company of Residential Mortgage, LLC (collectively “RML”) and consolidates their balance sheets and income statement into its financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. The Company determined that it operates in two primary operating segments: Community Banking and Home Mortgage Lending. The Company has evaluated subsequent events and transactions for potential recognition or disclosure. Operating results for the interim period ended September 30, 2024 are not necessarily indicative of the results anticipated for the year ending December 31, 2024. These consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2023.
The Company’s significant accounting policies are discussed in Note 1 to the audited consolidated financial statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2023. There have been no significant changes in our application of these accounting policies in 2024.
Reclassification of Prior Period Presentation
Certain prior year amounts have been reclassified for consistency with the current period presentation. These reclassifications had no effect on the reported results of operations or total shareholders' equity.
Recent Accounting Pronouncements
Accounting pronouncements implemented in 2024
In March 2023, the Financial Accounting Standards Board (“FASB”) issued ASU 2023-02, Investments - Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method (“ASU 2023-02”). Under current GAAP, an entity can only elect to apply the proportional amortization method to investments in low income housing tax credit (“LIHTC”) structures. The amendments in ASU 2023-02 allow entities to elect to account for equity investments made primarily for the purpose of receiving income tax credits using the proportional amortization method, regardless of the tax credit program through which the investment earns income tax credits, if certain conditions are met. ASU 2023-02 provides amendments to Accounting Standards Codification (“ASC”) paragraph 323-740-25-1, which sets forth the conditions needed to apply the proportional amortization method. The amendments make certain limited changes to those conditions to clarify their application to a broader group of tax credit investment programs. However, the conditions in substance remain consistent with current GAAP. The amendments in this ASU 2023-02 also eliminate certain LIHTC-specific guidance to align the accounting more closely for LIHTCs with the accounting for other equity investments in tax credit structures and require that the delayed equity contribution guidance in paragraph ASC 323-740-25-3 applies only to tax equity investments accounted for using the proportional amortization method. The Company adopted ASU 2023-02 on January 1, 2024. The adoption of ASU 2023-02 did not have a material impact on the Company's consolidated financial statements.
In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280) - Improvements to Reportable Segment Disclosures (“ASU 2023-07”). Under current GAAP, public entities are required to report a measure of segment profit or loss. The amendments in ASU 2023-07 do not change or remove this requirement, nor does it change how an entity identifies its operating segments. The amendments in ASU 2023-07 improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The Company adopted ASU 2023-07 on January 1, 2024. The adoption of ASU 2023-07 did not have a material impact on the Company's consolidated financial statements.
10

Accounting pronouncements to be implemented in future periods    
In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740) - Improvements to Income Tax Disclosures (“ASU 2023-09”). The amendments in ASU 2023-09 improve transparency of income tax disclosures related to rate reconciliation and income taxes paid disclosures by requiring consistent categories and greater disaggregation of information in rate reconciliation, and by requiring disclosure of income taxes paid disaggregated by jurisdiction. The amendments in ASU 2023-09 allow investors to better assess, in their capital allocation decisions, how an entity's worldwide operations and related tax risks and tax planning and operations opportunities affect its income tax rate and prospects for future cash flow. ASU 2023-09 is effective for the Company for fiscal years beginning after December 15, 2024 and may be applied on a prospective or retrospective basis. The Company intends to adopt ASU 2023-09 prospectively and does not believe that the adoption will have a material impact on the Company's consolidated financial statements.
In March 2024, the FASB issued ASU 2024-02, Codification Improvements - Amendments to Remove References to the Concepts Statements ("ASU 2024-02"). ASU 2024-02 contains amendments to the Codification that remove references to various Concepts Statements. In most instances, the references are extraneous and not required to understand or apply the guidance. In other instances, the references were used in prior Concepts Statements to provide guidance in certain topical areas. FASB Concepts Statement are nonauthoritative. Removing all references to Concepts Statements in the guidance is intended to simplify the Codification and draw a distinction between authoritative and nonauthoritative literature. ASU 2024-02 is effective for the Company for fiscal years beginning after December 15, 2024 and may be applied on a prospective or retrospective basis. The Company intends to adopt ASU 2024-02 prospectively and does not believe that the adoption will have a material impact on the Company's consolidated financial statements.


2. Investment Securities
Marketable Equity Securities
The Company held marketable equity securities with fair values of $13.0 million and $13.2 million at September 30, 2024 and December 31, 2023, respectively. The gross realized and unrealized gains (losses) recognized on marketable equity securities in other operating income in the Company's Consolidated Statements of Income were as follows:
Three Months Ended September 30,Nine Months Ended September 30,
(In Thousands)2024202320242023
Unrealized gain (loss) on marketable equity securities
$576 $12 $830 ($445)
   Total$576 $12 $830 ($445)

Debt securities
Debt securities have been classified in the financial statements as available for sale or held to maturity. The following table summarizes the amortized cost, estimated fair value, and the Allowance for Credit Losses (“ACL”) of debt securities and the corresponding amounts of gross unrealized gains and losses of available-for-sale securities recognized in accumulated other comprehensive income (loss) and gross unrecognized gains and losses of held to maturity securities at the periods indicated:
(In Thousands)Amortized CostGross Unrealized GainsGross Unrealized LossesAllowance for Credit LossesFair Value
September 30, 2024    
Securities available for sale    
U.S. Treasury and government sponsored entities$500,436 $1,094 ($11,607)$— $489,923 
Corporate bonds9,011 20 (229)— 8,802 
Collateralized loan obligations46,405 87 (7)— 46,485 
Total securities available for sale$555,852 $1,201 ($11,843)$— $545,210 
11

(In Thousands)Amortized CostGross Unrealized GainsGross Unrealized LossesFair Value
September 30, 2024
Securities held to maturity
Corporate bonds$36,750 $— ($2,135)$34,615 
   Allowance for credit losses— — — — 
Total securities held to maturity, net of ACL$36,750 $— ($2,135)$34,615 
(In Thousands)Amortized CostGross Unrealized GainsGross Unrealized LossesAllowance for Credit LossesFair Value
December 31, 2023    
Securities available for sale    
U.S. Treasury and government sponsored entities$587,639 $451 ($23,965)$— $564,125 
Municipal securities820 — (4)— 816 
Corporate bonds14,014 28 (418)— 13,624 
Collateralized loan obligations59,795 12 (436)— 59,371 
Total securities available for sale$662,268 $491 ($24,823)$— $637,936 
(In Thousands)Amortized CostGross Unrealized GainsGross Unrealized LossesFair Value
December 31, 2023
Securities held to maturity
Corporate bonds$36,750 $— ($3,337)$33,413 
   Allowance for credit losses— — — — 
Total securities held to maturity, net of ACL$36,750 $— ($3,337)$33,413 

Gross unrealized losses on available for sale securities and the fair value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at September 30, 2024 and December 31, 2023 were as follows:

Less Than 12 MonthsMore Than 12 MonthsTotal
(In Thousands)Fair ValueUnrealized LossesFair ValueUnrealized LossesFair ValueUnrealized Losses
September 30, 2024
Securities available for sale
     U.S. Treasury and government sponsored entities$9,991 ($9)$434,211 ($11,598)$444,202 ($11,607)
     Corporate bonds— — 4,783 (229)4,783 (229)
     Collateralized loan obligations— — 4,988 (7)4,988 (7)
          Total$9,991 ($9)$443,982 ($11,834)$453,973 ($11,843)
December 31, 2023:
Securities available for sale
     U.S. Treasury and government sponsored entities$9,997 ($3)$528,574 ($23,962)$538,571 ($23,965)
     Corporate bonds— — 6,599 (418)6,599 (418)
     Collateralized loan obligations3,909 (91)43,149 (345)47,058 (436)
     Municipal securities— — 816 (4)816 (4)
          Total$13,906 ($94)$579,138 ($24,729)$593,044 ($24,823)

12

Management evaluates available for sale debt securities in unrealized loss positions to determine whether the impairment is due to credit-related factors or noncredit-related factors. Consideration is given to the extent to which the fair value is less than cost, the financial condition and near-term prospects of the issuer, and the intent and ability of the Company to retain its investment in the security for a period of time sufficient to allow for any anticipated recovery in fair value.

At September 30, 2024, the Company had 50 available for sale securities in an unrealized loss position without an ACL. At September 30, 2024, the Company had five held to maturity securities in an unrealized loss position without an ACL. Management does not have the intent to sell any of these securities and believes that it is more likely than not that the Company will not have to sell any such securities before a recovery of cost. The fair value is expected to recover as the securities approach their maturity date or repricing date or if market yields for such investments decline. Accordingly, as of September 30, 2024, management believes that the unrealized losses detailed in the previous table are due to noncredit-related factors, primarily changes in interest rates, and therefore no losses have been recognized in the Company's Consolidated Statements of Income.

At September 30, 2024 and December 31, 2023, carrying amounts of $179.2 million and $180.1 million in securities were pledged for deposits and borrowings, respectively.

The amortized cost and estimated fair values of debt securities at September 30, 2024, are distributed by contractual maturity as shown below. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. 
(In Thousands)Amortized CostFair Value
US Treasury and government sponsored entities  
Within 1 year$176,092 $174,118 
1-5 years324,344 315,805 
Total$500,436 $489,923 
Corporate bonds  
Within 1 year$3,999 $4,019 
1-5 years15,012 14,722 
5-10 years26,750 24,676 
Total$45,761 $43,417 
Collateralized loan obligations
5-10 years$27,405 $27,432 
Over 10 years19,000 19,053 
Total$46,405 $46,485 

There were no proceeds from sales of investment securities for the three or nine-month periods ending September 30, 2024 and 2023.
A summary of interest income for the three and nine-month periods ending September 30, 2024 and 2023, on available for sale investment securities are as follows:
Three Months Ended September 30,Nine Months Ended September 30,
(In Thousands)2024202320242023
US Treasury and government sponsored entities$2,443 $2,794 $7,511 $8,424 
Other965 1,214 3,168 3,505 
Total taxable interest income$3,408 $4,008 $10,679 $11,929 
Municipal securities$— $4 $3 $13 
Total tax-exempt interest income$— $4 $3 $13 
Total$3,408 $4,012 $10,682 $11,942 
13


3.  Loans and Allowance for Credit Losses
Loans Held for Sale
Loans held for sale are comprised entirely of 1-4 family residential mortgage loans as of September 30, 2024 and December 31, 2023. The Company designates loans held for sale as either carried at fair value or the lower of cost or fair value at loan level at origination.
Loans Held for Investment
The following table presents amortized cost and unpaid principal balance of loans, categorized by the segments used in the Company's Current Expected Credit Losses (“CECL”) methodology to assess credit risk, for the periods indicated:
September 30, 2024December 31, 2023
(In Thousands)Amortized CostUnpaid PrincipalDifferenceAmortized CostUnpaid PrincipalDifference
Commercial & industrial loans$414,201 $416,184 ($1,983)$411,387 $413,293 ($1,906)
Commercial real estate:
Owner occupied properties410,924 412,827 (1,903)366,741 368,357 (1,616)
Non-owner occupied and multifamily properties580,702 584,302 (3,600)515,528 519,115 (3,587)
Residential real estate:
1-4 family residential properties secured by first liens248,906 248,514 392 203,738 203,534 204 
1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens45,531 45,262 269 33,996 33,783 213 
1-4 family residential construction loans39,557 39,794 (237)30,976 31,239 (263)
Other construction, land development and raw land loans183,849 185,362 (1,513)148,373 149,788 (1,415)
Obligations of states and political subdivisions in the US29,586 29,582 4 30,407 30,409 (2)
Agricultural production, including commercial fishing44,489 44,719 (230)41,007 41,237 (230)
Consumer loans7,907 7,836 71 6,241 6,180 61 
Other loans1,913 1,929 (16)1,103 1,118 (15)
Total2,007,565 2,016,311 (8,746)1,789,497 1,798,053 (8,556)
Allowance for credit losses(19,528)(17,270)
   Net loans$1,988,037 $2,016,311 ($8,746)$1,772,227 $1,798,053 ($8,556)
The difference between the amortized cost and unpaid principal balance is net deferred origination fees totaling $8.7 million at September 30, 2024 and $8.6 million at December 31, 2023.
Accrued interest on loans, which is excluded from the amortized cost of loans held for investment, totaled $9.0 million and $7.4 million at September 30, 2024 and December 31, 2023, respectively, and is included in other assets in the Consolidated Balance Sheets.
Amortized cost in the above table includes $1.2 million and $2.8 million as of September 30, 2024 and December 31, 2023, respectively, in Paycheck Protection Program loans administered by the U.S. Small Business Administration within the Commercial & industrial loan segment.



14

Allowance for Credit Losses
The table below presents activity in the ACL related to loans held for investment for the periods indicated.
Three Months Ended September 30,Beginning BalanceCredit Loss Expense (Benefit)Charge-offsRecoveriesEnding Balance
(In Thousands)
2024    
Commercial & industrial loans$4,047 $153 $— $104 $4,304 
Commercial real estate:
Owner occupied properties2,963 (42)— — 2,921 
Non-owner occupied and multifamily properties3,499 273 — — 3,772 
Residential real estate:
1-4 family residential properties secured by first liens3,489 571 — — 4,060 
1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens665 62 — 6 733 
1-4 family residential construction loans180 62 — — 242 
Other construction, land development and raw land loans2,526 639 — — 3,165 
Obligations of states and political subdivisions in the US100 — — — 100 
Agricultural production, including commercial fishing157 (3)— 1 155 
Consumer loans61 25 (15)— 71 
Other loans7 (2)— — 5 
Total$17,694 $1,738 ($15)$111 $19,528 
2023
Commercial & industrial loans$3,418 ($55)($91)$181 $3,453 
Commercial real estate:
Owner occupied properties2,807 (15)— — 2,792 
Non-owner occupied and multifamily properties3,260 (36)— — 3,224 
Residential real estate:
1-4 family residential properties secured by first liens3,206 334 — — 3,540 
1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens423 78 — 5 506 
1-4 family residential construction loans206 (31)— — 175 
Other construction, land development and raw land loans1,996 480 — — 2,476 
Obligations of states and political subdivisions in the US88 (11)— — 77 
Agricultural production, including commercial fishing162 2 — — 164 
Consumer loans74 4 — 1 79 
Other loans5 — — — 5 
Total$15,645 $750 ($91)$187 $16,491 
15

Nine Months Ended September 30,Beginning BalanceCredit Loss Expense (Benefit)Charge-offsRecoveriesEnding Balance
(In Thousands)
2024    
Commercial & industrial loans$3,438 $684 $— $182 $4,304 
Commercial real estate:
Owner occupied properties2,867 54 — — 2,921 
Non-owner occupied and multifamily properties3,294 478 — — 3,772 
Residential real estate:
1-4 family residential properties secured by first liens3,470 590 — — 4,060 
1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens551 166 — 16 733 
1-4 family residential construction loans191 51 — — 242 
Other construction, land development and raw land loans3,127 38 — — 3,165 
Obligations of states and political subdivisions in the US80 20 — — 100 
Agricultural production, including commercial fishing168 7 (25)5 155 
Consumer loans81 4 (15)1 71 
Other loans3 2 — — 5 
Total$17,270 $2,094 ($40)$204 $19,528 
2023
Commercial & industrial loans$2,914 $412 ($140)$267 $3,453 
Commercial real estate:
Owner occupied properties3,094 (302)— — 2,792 
Non-owner occupied and multifamily properties3,615 (391)— — 3,224 
Residential real estate:
1-4 family residential properties secured by first liens1,413 2,127 — — 3,540 
1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens389 100 — 17 506 
1-4 family residential construction loans312 (137)— — 175 
Other construction, land development and raw land loans1,803 673 — — 2,476 
Obligations of states and political subdivisions in the US79 (2)— — 77 
Agricultural production, including commercial fishing145 19 — — 164 
Consumer loans68 21 (14)4 79 
Other loans6 (1)— — 5 
Total$13,838 $2,519 ($154)$288 $16,491 


16

The following table shows gross charge-offs by year of loan origination for the periods indicated:
Nine Months Ended September 30,
(In Thousands)20242023202220212020PriorTotal
2024
Agricultural production, including commercial fishing$— $— $25 $— $— $— $25 
Consumer loans2 — 13 — — — 15 
Total$2 $— $38 $— $— $— $40 
Credit Quality Information
As part of the on-going monitoring of the credit quality of the Company’s loan portfolio, management utilizes a loan risk grading system called the Asset Quality Rating (“AQR”) system to assign a risk classification to each of its loans. The risk classification is a dual rating system that contemplates both probability of default and risk of loss given default. Loans are graded on a scale of 1 to 10 and, loans graded 1 – 6 are considered “pass” grade loans. Loans graded 7 or higher are considered “classified” loans. A description of the general characteristics of the AQR risk classifications are as follows:
Pass grade loans – 1 through 6: The borrower demonstrates sufficient cash flow to fund debt service, including acceptable profit margins, cash flows, liquidity and other balance sheet ratios. Historic and projected performance indicates that the borrower is able to meet obligations under most economic circumstances. The borrower has competent management with an acceptable track record. The category does not include loans with undue or unwarranted credit risks that constitute identifiable weaknesses.

Classified loans:
Special Mention – 7: A “special mention” credit has weaknesses that deserve management's close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset at some future date.

Substandard – 8: A “substandard” credit is inadequately protected by the current worth and paying capacity of the obligor or by the collateral pledged, if any. Assets so classified must have a well-defined weakness, or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that Northrim Bank will sustain some loss if the deficiencies are not corrected.

Doubtful – 9: An asset classified “doubtful” has all the weaknesses inherent in one that is classified "substandard-8" with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently known facts, conditions, and values, highly questionable and improbable. The loan has substandard characteristics, and available information suggests that it is unlikely that the loan will be repaid in its entirety.

Loss – 10: An asset classified “loss” is considered uncollectible and of such little value that its continuance on the books is not warranted. This classification does not mean that the asset has absolutely no recovery or salvage value, but rather that it is not practical or desirable to defer writing off this basically worthless asset, even though partial recovery may be affected in the future.

The following tables present the Company's portfolio of risk-rated loans by grade and by year of origination. Management considers the guidance in ASC 310-20 when determining whether a modification, extension, or renewal of loan constitutes a current period origination. Generally, current period renewals of credit are re-underwritten at the point of renewal and considered current period originations for purposes of the table below.

September 30, 202420242023202220212020PriorTotal
(In Thousands)
Commercial & industrial loans
Pass$76,222 $76,864 $109,502 $49,022 $12,403 $47,192 $371,205 
Classified343 3,432 16,909 14,486 5,970 1,856 42,996 
Total commercial & industrial loans$76,565 $80,296 $126,411 $63,508 $18,373 $49,048 $414,201 
Commercial real estate:
Owner occupied properties
Pass$50,326 $44,030 $75,406 $67,083 $82,326 $89,244 $408,415 
17

Classified— — 492 — 309 1,708 2,509 
Total commercial real estate owner occupied properties$50,326 $44,030 $75,898 $67,083 $82,635 $90,952 $410,924 
Non-owner occupied and multifamily properties
Pass$73,602 $62,978 $106,614 $73,736 $65,785 $186,867 $569,582 
Classified— — 1,173 — — 9,947 11,120 
Total commercial real estate non-owner occupied and multifamily properties$73,602 $62,978 $107,787 $73,736 $65,785 $196,814 $580,702 
Residential real estate:
1-4 family residential properties secured by first liens
Pass$78,006 $111,302 $44,312 $3,482 $4,306 $7,125 $248,533 
Classified— 210 — — — 163 373 
Total residential real estate 1-4 family residential properties secured by first liens$78,006 $111,512 $44,312 $3,482 $4,306 $7,288 $248,906 
1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens
Pass$13,273 $14,555 $5,353 $2,766 $2,266 $6,639 $44,852 
Classified— 372 — — — 307 679 
Total residential real estate 1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens$13,273 $14,927 $5,353 $2,766 $2,266 $6,946 $45,531 
1-4 family residential construction loans
Pass$25,853 $6,374 $2,263 $— $— $4,968 $39,458 
Classified— — — — — 99 99 
Total residential real estate 1-4 family residential construction loans$25,853 $6,374 $2,263 $— $— $5,067 $39,557 
Other construction, land development and raw land loans
Pass$34,183 $61,339 $51,346 $25,525 $1,653 $8,237 $182,283 
Classified— — — 31 — 1,535 1,566 
Total other construction, land development and raw land loans$34,183 $61,339 $51,346 $25,556 $1,653 $9,772 $183,849 
Obligations of states and political subdivisions in the US
Pass$— $— $29,586 $— $— $— $29,586 
Classified— — — — — — — 
Total obligations of states and political subdivisions in the US$— $— $29,586 $— $— $— $29,586 
Agricultural production, including commercial fishing
Pass$5,257 $9,027 $8,764 $16,218 $3,215 $2,008 $44,489 
Classified— — — — — — — 
Total agricultural production, including commercial fishing$5,257 $9,027 $8,764 $16,218 $3,215 $2,008 $44,489 
Consumer loans
Pass$3,008 $2,645 $767 $85 $307 $1,089 $7,901 
Classified— — 6 — — — 6 
Total consumer loans$3,008 $2,645 $773 $85 $307 $1,089 $7,907 
Other loans
Pass$— $185 $136 $291 $1,301 $— $1,913 
Classified— — — — — — — 
Total other loans$— $185 $136 $291 $1,301 $— $1,913 
Total loans
Pass$359,730 $389,299 $434,049 $238,208 $173,562 $353,369 $1,948,217 
Classified343 4,014 18,580 14,517 6,279 15,615 59,348 
Total loans$360,073 $393,313 $452,629 $252,725 $179,841 $368,984 $2,007,565 
Total pass loans$359,730 $389,299 $434,049 $238,208 $173,562 $353,369 $1,948,217 
Government guarantees (29,546)(8,948)(8,114)(16,033)(1,767)(17,742)(82,150)
Total pass loans, net of government guarantees$330,184 $380,351 $425,935 $222,175 $171,795 $335,627 $1,866,067 
18

Total classified loans$343 $4,014 $18,580 $14,517 $6,279 $15,615 $59,348 
Government guarantees— (1,674)(14,877)(13,038)(5,651)(7,964)(43,204)
Total classified loans, net government guarantees$343 $2,340 $3,703 $1,479 $628 $7,651 $16,144 

December 31, 202320232022202120202019PriorTotal
(In Thousands)
Commercial & industrial loans
Pass$97,377 $123,874 $58,708 $24,177 $13,990 $44,674 $362,800 
Classified3,319 18,790 16,964 7,032 56 2,426 48,587 
Total commercial & industrial loans$100,696 $142,664 $75,672 $31,209 $14,046 $47,100 $411,387 
Commercial real estate:
Owner occupied properties
Pass$40,745 $70,925 $69,316 $82,339 $28,588 $71,930 $363,843 
Classified— — — 1,115 — 1,783 2,898 
Total commercial real estate owner occupied properties$40,745 $70,925 $69,316 $83,454 $28,588 $73,713 $366,741 
Non-owner occupied and multifamily properties
Pass$59,990 $96,532 $83,277 $67,037 $56,192 $143,619 $506,647 
Classified— — — — — 8,881 8,881 
Total commercial real estate non-owner occupied and multifamily properties$59,990 $96,532 $83,277 $67,037 $56,192 $152,500 $515,528 
Residential real estate:
1-4 family residential properties secured by first liens
Pass$139,829 $47,775 $4,119 $4,070 $2,240 $5,388 $203,421 
Classified224 — — — — 93 317 
Total residential real estate 1-4 family residential properties secured by first liens$140,053 $47,775 $4,119 $4,070 $2,240 $5,481 $203,738 
1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens
Pass$16,145 $5,417 $3,331 $1,906 $2,277 $4,581 $33,657 
Classified— — — — — 339 339 
Total residential real estate 1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens$16,145 $5,417 $3,331 $1,906 $2,277 $4,920 $33,996 
1-4 family residential construction loans
Pass$16,845 $4,469 $— $— $— $9,553 $30,867 
Classified— — — — — 109 109 
Total residential real estate 1-4 family residential construction loans$16,845 $4,469 $— $— $— $9,662 $30,976 
Other construction, land development and raw land loans
Pass$42,615 $58,714 $32,780 $1,982 $1,454 $7,896 $145,441 
Classified— 1,175 — — — 1,757 2,932 
Total other construction, land development and raw land loans$42,615 $59,889 $32,780 $1,982 $1,454 $9,653 $148,373 
Obligations of states and political subdivisions in the US
Pass$— $30,317 $— $— $— $90 $30,407 
Classified— — — — — — — 
Total obligations of states and political subdivisions in the US$— $30,317 $— $— $— $90 $30,407 
Agricultural production, including commercial fishing
Pass$8,643 $9,649 $17,061 $3,465 $524 $1,665 $41,007 
Classified— — — — — — — 
Total agricultural production, including commercial fishing$8,643 $9,649 $17,061 $3,465 $524 $1,665 $41,007 
Consumer loans
Pass$3,396 $983 $209 $368 $258 $1,026 $6,240 
19

Classified1 — — — — — 1 
Total consumer loans$3,397 $983 $209 $368 $258 $1,026 $6,241 
Other loans
Pass$160 $77 $135 $592 $138 $1 $1,103 
Classified— — — — — — — 
Total other loans$160 $77 $135 $592 $138 $1 $1,103 
Total loans
Pass$425,745 $448,732 $268,936 $185,936 $105,661 $290,423 $1,725,433 
Classified3,544 19,965 16,964 8,147 56 15,388 64,064 
Total loans$429,289 $468,697 $285,900 $194,083 $105,717 $305,811 $1,789,497 
Total pass loans$425,745 $448,732 $268,936 $185,936 $105,661 $290,423 $1,725,433 
Government guarantees (2,792)(8,409)(19,305)(2,295)(12,133)(7,696)(52,630)
Total pass loans, net of government guarantees$422,953 $440,323 $249,631 $183,641 $93,528 $282,727 $1,672,803 
Total classified loans$3,544 $19,965 $16,964 $8,147 $56 $15,388 $64,064 
Government guarantees— (16,805)(15,268)(7,043)— (11,311)(50,427)
Total classified loans, net government guarantees$3,544 $3,160 $1,696 $1,104 $56 $4,077 $13,637 


20


Past Due Loans: The following tables present an aging of contractually past due loans as of the periods presented:
(In Thousands)30-59 Days
Past Due		60-89 Days
Past Due		Greater Than
90 Days Past Due		Total Past
Due		CurrentTotalGreater Than 90 Days Past Due Still Accruing
September 30, 2024      
Commercial & industrial loans$325 $2,761 $— $3,086 $411,115 $414,201 $— 
Commercial real estate:
     Owner occupied properties492 — 231 723 410,201 410,924 — 
     Non-owner occupied and multifamily properties— — — — 580,702 580,702 — 
Residential real estate:
     1-4 family residential properties secured by first liens— — 210 210 248,696 248,906 — 
     1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens34 134 17 185 45,346 45,531 17 
     1-4 family residential construction loans— — 99 99 39,458 39,557 — 
Other construction, land development and raw land loans— 345 1,128 1,473 182,376 183,849 — 
Obligations of states and political subdivisions in the US— — — — 29,586 29,586 — 
Agricultural production, including commercial fishing— — — — 44,489 44,489 — 
Consumer loans— — — — 7,907 7,907 — 
Other loans— — — — 1,913 1,913 — 
Total$851 $3,240 $1,685 $5,776 $2,001,789 $2,007,565 $17 
December 31, 2023
Commercial & industrial loans$326 $148 $1,253 $1,727 $409,660 $411,387 $— 
Commercial real estate:
     Owner occupied properties— — 260 260 366,481 366,741 — 
     Non-owner occupied and multifamily properties— — — — 515,528 515,528 — 
Residential real estate:
     1-4 family residential properties secured by first liens458 — 224 682 203,056 203,738 — 
     1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens53 — 155 208 33,788 33,996 — 
     1-4 family residential construction loans— — 109 109 30,867 30,976 — 
Other construction, land development and raw land loans— — 1,545 1,545 146,828 148,373 — 
Obligations of states and political subdivisions in the US— — — — 30,407 30,407 — 
Agricultural production, including commercial fishing— — — — 41,007 41,007 — 
Consumer loans18 1 — 19 6,222 6,241 — 
Other loans— — — — 1,103 1,103 — 
Total$855 $149 $3,546 $4,550 $1,784,947 $1,789,497 $— 


21

Nonaccrual loans: Nonaccrual loans net of government guarantees totaled $4.9 million and $5.0 million at September 30, 2024 and December 31, 2023, respectively. The following table presents loans on nonaccrual status and loans on nonaccrual status for the periods presented for which there was no related ACL. All loans with no ACL are individually evaluated for credit losses in the Company's CECL methodology.

September 30, 2024December 31, 2023
(In  Thousands)NonaccrualNonaccrual With No ACLNonaccrualNonaccrual With No ACL
Commercial & industrial loans$2,338 $2,092 $3,655 $3,651 
Commercial real estate:
     Owner occupied properties231 231 271 260 
Residential real estate:
     1-4 family residential properties secured by first liens243 — 270 224 
     1-4 family residential properties secured by junior liens
      and revolving secured by 1-4 family first liens		559 472 219 176 
     1-4 family residential construction loans99 99 109 109 
Other construction, land development and raw land loans1,474 1,474 1,545 1,545 
Total nonaccrual loans4,944 4,368 6,069 5,965 
Government guarantees on nonaccrual loans— — (1,067)(1,067)
Net nonaccrual loans$4,944 $4,368 $5,002 $4,898 


There was no interest on nonaccrual loans reversed through interest income during the three and nine-month periods ending September 30, 2024 or September 30, 2023.

There was no interest earned on nonaccrual loans with a principal balance during the three and nine-month periods ending September 30, 2024 and September 30, 2023. However, the Company recognized interest income of $11,000 and $200,000 in the three-month periods ending September 30, 2024 and 2023, respectively, and $245,000 and $584,000 in the nine-month periods ending September 30, 2024 and 2023, respectively, related to interest collected on nonaccrual loans whose principal had been paid down to zero.

Loan Modifications: The Company modifies loans to borrowers experiencing financial difficulty as a normal part of our business. These modifications include providing term extensions/modifications, payment modifications, interest rate modifications, or, on rare occasions, principal forgiveness. When principal forgiveness is provided, the amount of forgiveness is charged-off against the ACL. The Company may provide multiple types of concessions on any one loan.

The following table shows the amortized cost basis of the loans that were both experiencing financial difficulty and modified as of the dates indicated, by class and type of modification. The percentage of the amortized cost basis of loans that were modified to borrowers experiencing financial difficulty as compared to the amortized cost basis of each class of financing receivable is also presented below:
Three Months Ended September 30, 2024
Payment ModificationTerm and payment modificationsTotal ModificationsPercentage of Class of Financing Receivable
(In Thousands)
Commercial & industrial loans$— $195 $195 0.05 %
Residential real estate:
1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens372 — 372 0.82 %
Total$372 $195 $567 0.03 %
22

Three Months Ended September 30, 2023
Term ModificationTerm and payment modificationsTotal ModificationsPercentage of Class of Financing Receivable
(In Thousands)
Commercial real estate:
Owner occupied properties$— $271 $271 0.08 %
Residential real estate:
1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens119 — 119 0.43 %
1-4 family residential construction loans109 — 109 0.34 %
Other construction, land development and raw land loans968 577 1,545 1.29 %
Total$1,196 $848 $2,044 0.12 %

Nine Months Ended September 30, 2024
Term ModificationTerm and payment modificationsTotal ModificationsPercentage of Class of Financing Receivable
(In Thousands)
Commercial & industrial loans$4,033 $448 $4,481 1.08 %
Residential real estate:
1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens— — 372 0.82 %
Total$4,033 $448 $4,853 0.24 %

Nine Months Ended September 30, 2023
Term ModificationPayment ModificationTerm and payment modificationsTotal ModificationsPercentage of Class of Financing Receivable
(In Thousands)
Commercial & industrial loans$1,511 $1,985 $— $3,496 0.84 %
Commercial real estate:
Owner occupied properties— — 271 271 0.08 %
Residential real estate:
1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens119 — — 119 0.43 %
1-4 family residential construction loans109 — — 109 0.34 %
Other construction, land development and raw land loans968 — 577 1,545 1.29 %
Total$2,707 $1,985 $848 $5,540 0.32 %

The Company has no outstanding unfunded commitments to the borrowers included in the previous tables.

The following table presents the financial effect of the loan modifications presented above to borrowers experiencing financial difficulty as of the dates indicated:

Three Months Ended September 30, 2024
Principal ForgivenessWeighted-Average Interest Rate ReductionWeighted-Average Term Extension (months)
(In Thousands)
Commercial & industrial loans$— — %73

23

Three Months Ended September 30, 2023
Principal ForgivenessWeighted-Average Interest Rate ReductionWeighted-Average Term Extension (months)
(In Thousands)
Commercial real estate:
Owner occupied properties$— — %5
Residential real estate:
1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens— — %5
1-4 family residential construction loans— — %5
Other construction, land development and raw land loans— — %5

Nine Months Ended September 30, 2024
Principal ForgivenessWeighted-Average Interest Rate ReductionWeighted-Average Term Extension (months)
(In Thousands)
Commercial & industrial loans$— 8 %10


Nine Months Ended September 30, 2023
Principal ForgivenessWeighted-Average Interest Rate ReductionWeighted-Average Term Extension (months)
(In Thousands)
Commercial & industrial loans$— — %20
Commercial real estate:
Owner occupied properties— — %5
Residential real estate:
1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens— — %5
1-4 family residential construction loans— — %5
Other construction, land development and raw land loans— — %5


The following table presents the amortized cost basis of loans that had a payment default during the period indicated and were modified in the twelve months before default to borrowers experiencing financial difficulty:

Three Months Ended September 30, 2024Nine Months Ended September 30, 2024
Term modificationTerm modification
(In Thousands)
Residential real estate:
1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens$— $100 
1-4 family residential construction loans— 99 
Other construction, land development and raw land loans— 778 
Total$— $977 

24

Three Months Ended September 30, 2023
Term modificationTerm and payment modification
(In Thousands)
Commercial real estate:
Owner occupied properties$— $271 
Residential real estate:
1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens119 — 
1-4 family residential construction loans109 — 
Other construction, land development and raw land loans968 577 
Total$1,196 $848 

The Company monitors the performance of loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following table presents the payment performance of loans that have been modified in the last twelve months as of the date indicated:

September 30, 2024
60-89 Days Past DueGreater Than 89 Days Past DueTotal Past Due
Current
Total
(In Thousands)
Commercial & industrial loans$— $— $— $4,482 $4,482 
Commercial real estate:
Owner occupied properties— 231 231 — 231 
Residential real estate:
1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens100 — 100 372 472 
1-4 family residential construction loans— 99 99 — 99 
Other construction, land development and raw land loans345 1,128 1,473 — 1,473 
Total$445 $1,458 $1,903 $4,854 $6,757 

September 30, 2023
30-59 Days Past DueGreater Than 89 Days Past DueTotal Past DueCurrentTotal
(In Thousands)
Commercial & industrial loans$1,511 $— $1,511 $1,985 $3,496 
Commercial real estate:
Owner occupied properties— 271 271 — 271 
Residential real estate:
1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens— 119 119 — 119 
1-4 family residential construction loans— 109 109 — 109 
Other construction, land development and raw land loans— 1,545 1,545 — 1,545 
Total$— $2,044 $3,555 $1,985 $5,540 


25

Upon the Company's determination that a modified loan (or a portion of a loan) has subsequently been deemed uncollectible, the loan (or a portion of the loan) is written off. Therefore, the amortized cost basis of the loan is reduced by the uncollectible amount and the ACL is adjusted by the same amount.


4. Purchased Receivables
Purchased receivables are carried at their principal amount outstanding, net of an ACL, and have a maturity of less than one year. There were no purchased receivables past due at September 30, 2024 or December 31, 2023, and there were no restructured purchased receivables at September 30, 2024 or December 31, 2023.
Income on purchased receivables is accrued and recognized on the principal amount outstanding using an effective interest method except when management believes doubt exists as to the collectability of the income or principal. There were no nonperforming purchased receivables as of September 30, 2024 and there was one nonperforming purchased receivable with a balance of $808,000 as of December 31, 2023 for which management was not accruing income.
There was no activity and no balance in the ACL for purchased receivables as of September 30, 2024 or December 31, 2023.
The following table summarizes the components of net purchased receivables for the dates indicated:
(In Thousands)September 30, 2024December 31, 2023
Purchased receivables$23,564 $36,842 
Allowance for credit losses - purchased receivables— — 
Total$23,564 $36,842 

5. Servicing Rights
Mortgage servicing rights
The following table details the activity in the Company's mortgage servicing rights (“MSR”) for the three and nine-month periods ended September 30, 2024 and 2023:
Three Months Ended September 30,Nine Months Ended September 30,
(In Thousands)2024202320242023
Balance, beginning of period$21,077 $18,248 $19,564 $18,635 
Additions for new MSR capitalized1,461 1,458 3,080 2,440 
Changes in fair value:
  Due to changes in model inputs of assumptions (1)
(566)— (38)(215)
  Other (2)
(402)(310)(1,036)(1,464)
Balance, end of period$21,570 $19,396 $21,570 $19,396 

(1) Principally reflects changes in discount rates and prepayment speed assumptions, which are primarily affected by changes in interest rates.
(2) Represents changes due to collection/realization of expected cash flows over time.

26

The following table details information related to our serviced mortgage loan portfolio as of September 30, 2024 and December 31, 2023:
(In Thousands)September 30, 2024December 31, 2023
Balance of mortgage loans serviced for others$1,166,585 $1,044,516 
Weighted average rate of note
4.38 %4.03 %
MSR as a percentage of serviced loans1.85 %1.87 %

    The Company recognized servicing fees of $1.1 million and $937,000 during the three-month periods ending September 30, 2024 and 2023, respectively, and $3.2 million and $2.7 million during the nine-month periods ending September 30, 2024 and 2023, respectively, which includes contractually specified servicing fees and ancillary fees as a component of other noninterest income in the Company's Consolidated Statements of Income.

    The following table outlines the weighted average key assumptions used in measuring the fair value of MSRs and the sensitivity of the current fair value of MSRs to immediate adverse changes in those assumptions as of the dates indicated. See Note 8 for additional information on key assumptions for MSR fair value determinations.

(In Thousands)
September 30, 2024December 31, 2023
Fair value of MSRs
$21,570 $19,564 
Expected weighted-average life (in years)
10.1810.23
Key assumptions:
   Constant prepayment rate1
8.51 %8.48 %
      Impact on fair value from 10% adverse change
($1,236)($1,754)
      Impact on fair value from 25% adverse change
($2,237)($2,552)
   Discount rate
10.98 %10.98 %
      Impact on fair value from 100 basis point increase
($1,391)($811)
      Impact on fair value from 200 basis point increase
($2,201)($1,560)
   Cost to service assumptions ($ per loan)
$81 $82 
      Impact on fair value from 10% adverse change
($164)($160)
      Impact on fair value from 25% adverse change
($410)($401)
1Prepayment speeds are influenced by mortgage interest rates as well as our estimation of drivers of borrower behavior.
    These sensitivities in the preceding table are hypothetical and caution should be exercised when relying on this data. Changes in value based on variations in assumptions generally cannot be extrapolated because the relationship of the change in the assumption to the change in the value may not be linear. Also, the effect of a variation in a particular assumption on the value of the MSR held is calculated independently without changing any other assumptions. In reality, changes in one factor may result in changes in others, which might magnify or counteract the sensitivities.

Commercial servicing rights
    The commercial servicing rights asset (“CSR”) has a carrying value of $2.1 million at September 30, 2024 and $2.2 million at December 31, 2023, respectively, and is included in other assets and carried at fair value on the Company's Consolidated Balance Sheets. Total commercial loans serviced for others were $275.8 million and $282.2 million at September 30, 2024 and December 31, 2023, respectively. Key assumptions used in measuring the fair value of the CSR as of September 30, 2024 and December 31, 2023 include a constant prepayment rate of 11.76% and a discount rate of 9.50%.


27

6. Leases

    The Company's lease commitments consist primarily of agreements to lease land and office facilities that it occupies to operate several of its retail branch locations that are classified as operating leases and are recognized on the balance sheet as right-of-use (“ROU”) assets and lease liabilities. As of September 30, 2024, the Company has operating lease ROU assets of $7.6 million and operating lease liabilities of $7.6 million. As of December 31, 2023, the Company had operating lease ROU assets of $9.1 million and operating lease liabilities of $9.1 million. The Company did not have any agreements that are classified as finance leases as of September 30, 2024 or December 31, 2023.

    The following table presents additional information about the Company's operating leases for the periods indicated:

Three Months Ended September 30,Nine Months Ended September 30,
(In Thousands)2024202320242023
Lease Cost
Operating lease cost(1)
$743 $708 $2,225 $2,109 
Short term lease cost(1)
23 36 74 115 
Total lease cost$766 $744 $2,299 $2,224 
Other information
Operating leases - operating cash flows $2,076 $1,966 
Weighted average lease term - operating leases, in years11.0710.23
Weighted average discount rate - operating leases3.63 %3.54 %
(1)
Expenses are classified within occupancy expense on the Consolidated Statements of Income.

    The table below reconciles the remaining undiscounted cash flows for the next five years for each twelve-month period presented (unless otherwise indicated) and the total of the subsequent remaining years to the operating lease liabilities recorded on the balance sheet:

(In Thousands)Operating Leases
2024 (Three months)$678 
20252,422 
20261,245 
2027783 
2028547 
Thereafter3,878 
Total minimum lease payments$9,553 
Less: amount of lease payment representing interest(1,918)
Present value of future minimum lease payments$7,635 

28

7.  Derivatives
Derivatives swaps related to community banking activities     
    The Company enters into commercial loan interest rate swap agreements with commercial banking customers which are offset with a corresponding swap agreement with a third party financial institution (“counterparty”). The Company has agreements with its counterparties that contain provisions that provide that if the Company fails to maintain its status as a “well-capitalized” institution under applicable regulatory guidelines, then the counterparty could terminate the derivative positions and the Company would be required to settle its obligations under the agreements. These agreements also require that the Company and the counterparty collateralize any fair value shortfalls that exceed $250,000 with eligible collateral, which includes cash and securities backed with the full faith and credit of the federal government. Similarly, the Company could be required to settle its obligations under the agreement if specific regulatory events occur, such as if the Company were issued a prompt corrective action directive or a cease and desist order, or if certain regulatory ratios fall below specified levels. The Company pledged $580,000 as of September 30, 2024 and $566,000 as of December 31, 2023, in available for sale securities to collateralize fair value shortfalls on interest rate swap agreements.
    The Company had interest rate swaps related to commercial loans with an aggregate notional amount of $278.6 million and $218.0 million at September 30, 2024 and December 31, 2023, respectively. At September 30, 2024, the notional amount of interest rate swaps is made up of 23 variable to fixed rate swaps to commercial loan customers totaling $139.3 million, and 23 fixed to variable rate swaps with a counterparty totaling $139.3 million. Changes in fair value from these 23 interest rate swaps offset each other in the three and nine-month periods ending September 30, 2024. The Company recognized $287,000 and no fee income related to interest rate swaps in the three-month periods ending September 30, 2024 and 2023, respectively, and $361,000 and $61,000 in fee income related to interest rate swaps in the nine-month periods ending September 30, 2024 and 2023, respectively. Interest rate swap income is recorded in other operating income on the Consolidated Statements of Income. None of these interest rate swaps are designated as hedging instruments.
    The Company has an interest rate swap to hedge the variability in cash flows arising out of its junior subordinated debentures, which is floating rate debt, by swapping the cash flows with an interest rate swap which receives floating and pays fixed. The Company has designated this interest rate swap as a hedging instrument. The interest rate swap effectively fixes the Company's interest payments on the $10.0 million of junior subordinated debentures held under Northrim Statutory Trust 2 at 3.72% through its maturity date. The floating rate that the dealer pays was equal to the three month LIBOR plus 1.37% through September 15, 2023. The floating rate that the dealer pays is now equal to the three month CME SOFR plus tenor spread adjustment 0.26% plus 1.37%, which reprices quarterly on the payment date. This rate was 6.58% as of September 30, 2024. The Company pledged $130,000 in cash to collateralize initial margin and fair value exposure of our counterparty on this interest rate swap as of September 30, 2024 and December 31, 2023. Changes in the fair value of this interest rate swap are reported in other comprehensive income on the Consolidated Statements of Income. The unrealized gain, net of tax on this interest rate swap was $863,000 as of September 30, 2024 and the unrealized gain, net of tax was $1.0 million as of December 31, 2023.
Derivatives related to home mortgage banking activities    
    The Company also uses derivatives to hedge the risk of changes in the fair values of interest rate lock commitments. The Company enters into commitments to originate residential mortgage loans at specific rates; the value of these commitments are detailed in the table below as “interest rate lock commitments”. The Company also hedges the interest rate risk associated with its residential mortgage loan commitments, which are referred to as "retail interest rate contracts" in the table below. Market risk with respect to commitments to originate loans arises from changes in the value of contractual positions due to changes in interest rates. RML had commitments to originate mortgage loans held for sale totaling $77.6 million and $22.9 million at September 30, 2024 and December 31, 2023, respectively. Changes in the value of RML's interest rate derivatives are recorded in mortgage banking income on the Consolidated Statements of Income. None of these derivatives are designated as hedging instruments.

29

    The following table presents the fair value of derivatives not designated as hedging instruments at September 30, 2024 and December 31, 2023:
(In Thousands)Asset Derivatives
September 30, 2024December 31, 2023
Balance Sheet LocationFair ValueFair Value
Interest rate swapsOther assets$8,930 $10,470 
Interest rate lock commitmentsOther assets1,327 342 
Total$10,257 $10,812 
(In Thousands)Liability Derivatives
September 30, 2024December 31, 2023
Balance Sheet LocationFair ValueFair Value
Interest rate swapsOther liabilities$8,930 $10,470 
Retail interest rate contractsOther liabilities96 13 
Total$9,026 $10,483 
    The following table presents the net gains (losses) of derivatives not designated as hedging instruments for periods indicated below:
Three Months Ended September 30,Nine Months Ended September 30,
(In Thousands)Income Statement Location2024202320242023
Retail interest rate contractsMortgage banking income($662)$84 ($443)$375 
Interest rate lock commitmentsMortgage banking income275 (312)920 46 
Total($387)($228)$477 $421 
    Our derivative transactions with counterparties under International Swaps and Derivative Association master agreements include “right of set-off” provisions. “Right of set-off” provisions are legally enforceable rights to offset recognized amounts and there may be an intention to settle such amounts on a net basis. We do not offset such financial instruments for financial reporting purposes.

30

    The following table summarizes the derivatives that have a right of offset as of September 30, 2024 and December 31, 2023:
September 30, 2024Gross amounts not offset in the Statement of Financial Position
(In Thousands)Gross amounts of recognized assets and liabilitiesGross amounts offset in the Statement of Financial PositionNet amounts of assets and liabilities presented in the Statement of Financial PositionFinancial InstrumentsCollateral PostedNet Amount
Asset Derivatives
Interest rate swaps$8,930$— $8,930$— $— $8,930 
Liability Derivatives
Interest rate swaps$8,930$— $8,930$— $8,930$— 
Retail interest rate contracts96 — 96 — — 96 
December 31, 2023Gross amounts not offset in the Statement of Financial Position
(In Thousands)Gross amounts of recognized assets and liabilitiesGross amounts offset in the Statement of Financial PositionNet amounts of assets and liabilities presented in the Statement of Financial PositionFinancial InstrumentsCollateral PostedNet Amount
Asset Derivatives
Interest rate swaps$10,470$— $10,470$— $— $10,470 
Liability Derivatives
Interest rate swaps$10,470$— $10,470$— $10,470$— 
Retail interest rate contracts13 — 13 — — 13 


8.  Fair Value Measurements
Assets and Liabilities Measured at Fair Value on a Recurring Basis
Investment securities available for sale and marketable equity securities: Fair values are based on quoted market prices, where available. If quoted market prices are not available, fair values are based on quoted market prices of comparable instruments.

Servicing rights: MSR and CSR are measured at fair value on a recurring basis. These assets are classified as Level 3 as quoted prices are not available. In order to determine the fair value of MSR and CSR, the present value of net expected future cash flows is estimated. Assumptions used include market discount rates, anticipated prepayment speeds, escrow calculations, delinquency rates, and ancillary fee income net of servicing costs.

Derivative instruments: The fair value of the interest rate lock commitments are estimated using quoted or published market prices for similar instruments, adjusted for factors such as pull-through rate assumptions based on historical information, where appropriate. The pull-through rate assumptions are considered Level 3 valuation inputs and are significant to the interest rate lock commitment valuation; as such, the interest rate lock commitment derivatives are classified as Level 3. Interest rate contracts are valued in a model, which uses as its basis a discounted cash flow technique incorporating credit valuation adjustments to reflect nonperformance risk in the measurement of fair value. Although the Company has determined that the
31

majority of inputs used to value its interest rate derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with its derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by itself and its counterparties. However, as of September 30, 2024, the Company has assessed the significance of the impact of these adjustments on the overall valuation of its interest rate positions and has determined that they are not significant to the overall valuation of its interest rate derivatives. As a result, the Company has classified its interest rate derivative valuations in Level 2 of the fair value hierarchy.

Commitments to extend credit and standby letters of credit: The fair value of commitments is estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the present creditworthiness of the counterparties.  For fixed-rate loan commitments, fair value also considers the difference between current levels of interest rates and the committed rates.  The fair value of letters of credit is based on fees currently charged for similar agreements or on the estimated cost to terminate them or otherwise settle the obligation with the counterparties at the reporting date.

Assets Subject to Nonrecurring Adjustment to Fair Value

    The Company is also required to measure certain assets such as equity method investments, goodwill, intangible assets, impaired loans, and Other Real Estate Owned (“OREO”) at fair value on a nonrecurring basis in accordance with GAAP. Any nonrecurring adjustments to fair value usually result from the write-down of individual assets.

    The Company uses either in-house evaluations or external appraisals to estimate the fair value of OREO and impaired loans as of each reporting date. In-house appraisals are considered Level 3 inputs and external appraisals are considered Level 2 inputs. The Company’s determination of which method to use is based upon several factors. The Company takes into account compliance with legal and regulatory guidelines, the amount of the loan, the size of the assets, the location and type of property to be valued and how critical the timing of completion of the analysis is to the assessment of value. Those factors are balanced with the level of internal expertise, internal experience and market information available, versus external expertise available such as qualified appraisers, brokers, auctioneers and equipment specialists.

Limitations

    Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument. Because no market exists for a significant portion of the Company’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates.

32

    Estimated fair values as of the periods indicated are as follows:
 September 30, 2024December 31, 2023
(In Thousands)Carrying AmountFair ValueCarrying AmountFair  Value
Financial assets:  
Level 1 inputs:  
     Cash, due from banks and deposits in other banks$102,876 $102,876 $118,530 $118,530 
     Investment securities available for sale265,039 265,039 310,896 310,896 
     Marketable equity securities12,957 12,957 13,153 13,153 
Level 2 inputs:  
     Investment securities available for sale280,171 280,171 327,040 327,040 
     Investment in Federal Home Loan Bank stock4,318 4,318 2,980 2,980 
     Loans held for sale97,937 97,937 31,974 31,974 
     Accrued interest receivable12,909 12,909 11,958 11,958 
     Interest rate swaps10,568 10,568 11,836 11,836 
Level 3 inputs:  
     Investment securities held to maturity36,750 34,615 36,750 33,413 
     Loans 2,007,565 1,827,510 1,789,497 1,686,362 
     Purchased receivables, net23,564 23,564 36,842 36,842 
     Interest rate lock commitments1,327 1,327 342 342 
     Mortgage servicing rights21,57021,57019,564 19,564 
     Commercial servicing rights2,1362,1362,200 2,200 
Financial liabilities:  
Level 2 inputs:  
     Deposits$2,625,567 $2,628,018 $2,485,055 $2,482,937 
     Accrued interest payable707 707 202 202 
     Borrowings13,354 10,887 13,675 11,872 
     Interest rate swaps8,930 8,930 10,470 10,470 
     Retail interest rate contracts96 96 13 13 
Level 3 inputs:
     Junior subordinated debentures10,310 11,971 10,310 12,030 


33

    The following table sets forth the balances as of the periods indicated of assets and liabilities measured at fair value on a recurring basis:
(In Thousands)TotalQuoted Prices in Active Markets for Identical Assets (Level 1)Significant Other Observable Inputs (Level 2)Significant Unobservable Inputs (Level 3)
September 30, 2024    
Assets:
    Available for sale securities    
    U.S. Treasury and government sponsored entities$489,923 $256,237 $233,686 $— 
    Corporate bonds8,802 8,802 — — 
    Collateralized loan obligations46,485 — 46,485 — 
           Total available for sale securities$545,210 $265,039 $280,171 $— 
    Marketable equity securities$12,957 $12,957 $— $— 
           Total marketable equity securities$12,957 $12,957 $— $— 
Interest rate swaps$10,136 $— $10,136 $— 
Interest rate lock commitments1,327 — — 1,327 
Mortgage servicing rights21,570 — — 21,570 
Commercial servicing rights2,136 — — 2,136 
           Total other assets$35,169 $— $10,136 $25,033 
Liabilities:
Interest rate swaps$8,930 $— $8,930 $— 
Retail interest rate contracts96 — 96 — 
           Total other liabilities$9,026 $— $9,026 $— 
December 31, 2023    
Assets:
Available for sale securities    
U.S. Treasury and government sponsored entities$564,125 $300,274 $263,851 $— 
Municipal securities816 — 816 — 
Corporate bonds13,624 10,622 3,002 — 
Collateralized loan obligations59,371 — 59,371 — 
           Total available for sale securities$637,936 $310,896 $327,040 $— 
Marketable equity securities$13,153 $13,153 $— $— 
           Total marketable securities$13,153 $13,153 $— $— 
Interest rate swaps$11,836 $— $11,836 $— 
Interest rate lock commitments342 — — 342 
Mortgage servicing rights19,564 — — 19,564 
Commercial servicing rights2,200 — — 2,200 
           Total other assets$33,942 $— $11,836 $22,106 
Liabilities:
Interest rate swaps$10,470 $— $10,470 $— 
Retail interest rate contracts13 — 13 — 
           Total other liabilities$10,483 $— $10,483 $— 

    



    
34

The following tables provide a reconciliation of the assets and liabilities measured at fair value using significant unobservable inputs (Level 3) on a recurring basis during the three and nine-month periods ended September 30, 2024 and 2023:

(In Thousands)Beginning balanceChange included in earningsPurchases and issuancesSales and settlementsEnding balanceNet change in unrealized gains (losses) relating to items held at end of period
Three Months Ended September 30, 2024 
Interest rate lock commitments$1,059 ($647)$5,173 ($4,258)$1,327 $1,327 
Mortgage servicing rights21,077 (968)1,461 — 21,570 — 
Commercial servicing rights2,116 (10)30 — 2,136 — 
Total$24,252 ($1,625)$6,664 ($4,258)$25,033 $1,327 
Three Months Ended September 30, 2023
Interest rate lock commitments$851 ($267)$2,021 ($2,087)$518 $518 
Mortgage servicing rights18,248 (310)1,458 — 19,396 — 
Commercial servicing rights2,139 (39)18 — 2,118 — 
Total$21,238 ($616)$3,497 ($2,087)$22,032 $518 

(In Thousands)Beginning balanceChange included in earningsPurchases and issuancesSales and settlementsEnding balanceNet change in unrealized gains (losses) relating to items held at end of period
Nine Months Ended September 30, 2024 
Interest rate lock commitments$342 ($1,375)$11,102 ($8,742)$1,327 $1,327 
Mortgage servicing rights19,564 (1,074)3,080 — 21,570 — 
Commercial servicing rights2,200 (155)91 — 2,136 — 
Total$22,106 ($2,604)$14,273 ($8,742)$25,033 $1,327 
Nine Months Ended September 30, 2023
Interest rate lock commitments$440 ($819)$6,253 ($5,356)$518 $518 
Mortgage servicing rights18,635 (1,679)2,440 — 19,396 — 
Commercial servicing rights2,129 (144)133 — 2,118 — 
Total$21,204 ($2,642)$8,826 ($5,356)$22,032 $518 

    There were no changes in unrealized gains and losses for the three and nine-month periods ending September 30, 2024 and 2023 included in other comprehensive income for recurring Level 3 fair value measurements.

    As of and for the periods ending September 30, 2024 and December 31, 2023, except for certain assets as shown in the following table, no impairment or valuation adjustment was recognized for assets recognized at fair value on a nonrecurring basis.  For loans individually measured for credit losses, the Company classifies fair value measurements using observable inputs, such as external appraisals, as Level 2 valuations in the fair value hierarchy, and unobservable inputs, such as in-house evaluations, as Level 3 valuations in the fair value hierarchy.               
35

(In Thousands)TotalQuoted Prices in Active Markets for Identical Assets (Level 1)Significant Other Observable Inputs (Level 2)Significant Unobservable Inputs (Level 3)
September 30, 2024    
  Loans individually measured for credit losses$247 $— $— $247 
Total$247 $— $— $247 
December 31, 2023    
  Loans individually measured for credit losses$— $— $— $— 
Total$— $— $— $— 
    The following table presents the (gains) losses resulting from nonrecurring fair value adjustments for the three and nine-month periods ended September 30, 2024 and 2023:

Three Months Ended September 30,Nine Months Ended September 30,
(In Thousands)2024202320242023
Loans individually measured for credit losses$114 $— $117 $— 
Other real estate owned— 123 — 123 
Total loss from nonrecurring measurements$114 $123 $117 $123 


Assets and Liabilities Measured at Fair Value Using Significant Unobservable Inputs (Level 3)
    The following tables provide a description of the valuation technique, unobservable input, and qualitative information about the unobservable inputs for the Company’s assets and liabilities classified as Level 3 and measured at fair value on a recurring and nonrecurring basis at September 30, 2024 and December 31, 2023:
Financial Instrument
Valuation Technique - Recurring Basis
Unobservable InputWeighted Average Rate Range
September 30, 2024
Interest rate lock commitmentExternal pricing modelPull through rate91.42 %
Mortgage servicing rightsDiscounted cash flowConstant prepayment rate
8.41% - 15.59%
Discount rate
9.50% - 11.00%
Commercial servicing rightsDiscounted cash flowConstant prepayment rate
3.99% - 18.90%
Discount rate9.50 %
December 31, 2023
Interest rate lock commitmentExternal pricing modelPull through rate89.84 %
Mortgage servicing rightsDiscounted cash flowConstant prepayment rate
6.13% - 25.33%
Discount rate
9.50% - 11.00%
Commercial servicing rightsDiscounted cash flowConstant prepayment rate
3.99% - 18.90%
Discount rate9.50 %
36

Financial Instrument
Valuation Technique - Nonrecurring Basis
Unobservable InputWeighted Average Rate Range
September 30, 2024
Loans individually measured for credit lossesIn-house valuation of collateralDiscount rate
47%

37



9.  Segment Information
    The Company's operations are managed along two operating segments: Community Banking and Home Mortgage Lending. The Community Banking segment's principal business focus is the offering of loan and deposit products to business and consumer customers in its primary market areas. As of September 30, 2024, the Community Banking segment operated 20 branches throughout Alaska. The Home Mortgage Lending segment's principal business focus is the origination and sale of mortgage loans for 1-4 family residential properties.
    Summarized financial information for the Company's reportable segments and the reconciliation to the consolidated financial results is shown in the following tables:
Three Months Ended September 30, 2024
(In Thousands)Community BankingHome Mortgage LendingConsolidated
Interest income$35,021 $4,395 $39,416 
Interest expense9,120 1,454 10,574 
   Net interest income25,901 2,941 28,842 
(Benefit) provision for credit losses1,492 571 2,063 
Other operating income4,540 7,047 11,587 
Salaries and other personnel expense
11,691 5,858 17,549 
Other operating expense7,394 1,785 9,179 
   Total other operating expense
19,085 7,643 26,728 
   Income before provision for income taxes9,864 1,774 11,638 
Provision for income taxes2,316 497 2,813 
Net income $7,548 $1,277 $8,825 

Three Months Ended September 30, 2023
(In Thousands)Community BankingHome Mortgage LendingConsolidated
Interest income$31,341 $3,067 $34,408 
Interest expense7,291 767 8,058 
   Net interest income24,050 2,300 26,350 
Provision for credit losses1,190 — 1,190 
Other operating income 3,597 4,405 8,002 
Salaries and other personnel expense
11,164 4,493 15,657 
Other operating expense5,781 1,458 7,239 
   Total other operating expense
16,945 5,951 22,896 
   Income before provision for income taxes9,512 754 10,266 
Provision for income taxes1,710 182 1,892 
Net income $7,802 $572 $8,374 

38

Nine Months Ended September 30, 2024
(In Thousands)Community BankingHome Mortgage LendingConsolidated
Interest income$100,436 $11,697 $112,133 
Interest expense26,042 3,749 29,791 
   Net interest income74,394 7,948 82,342 
Provision for credit losses1,505 587 2,092 
Other operating income12,046 16,962 29,008 
Salaries and other personnel expense
34,092 15,501 49,593 
Other operating expense21,042 4,925 25,967 
   Total other operating expense
55,134 20,426 75,560 
   Income before provision for income taxes29,801 3,897 33,698 
Provision for income taxes6,562 1,092 7,654 
Net income $23,239 $2,805 $26,044 
Nine Months Ended September 30, 2023
(In Thousands)Community BankingHome Mortgage LendingConsolidated
Interest income$89,509 $6,514 $96,023 
Interest expense18,007 1,492 19,499 
   Net interest income71,502 5,022 76,524 
Provision for credit losses2,957 — 2,957 
Other operating income9,564 10,326 19,890 
Salaries and other personnel expense
32,557 13,767 46,324 
Other operating expense19,611 4,253 23,864 
   Total other operating expense
52,168 18,020 70,188 
   Income before provision for income taxes25,941 (2,672)23,269 
Provision for income taxes5,216 (728)4,488 
Net income $20,725 ($1,944)$18,781 
September 30, 2024
(In Thousands)Community BankingHome Mortgage LendingConsolidated
Total assets$2,588,267 $375,125 $2,963,392 
Loans held for sale$— $97,937 $97,937 
December 31, 2023
(In Thousands)Community BankingHome Mortgage LendingConsolidated
Total assets$2,539,791 $267,706 $2,807,497 
Loans held for sale$— $31,974 $31,974 


39

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
This discussion should be read in conjunction with the unaudited consolidated financial statements of Northrim BanCorp, Inc. (the “Company”) and the notes thereto presented elsewhere in this report and with the Company’s Annual Report on Form 10-K for the year ended December 31, 2023.
Except as otherwise noted, references to “we”, “our”, “us” or “the Company” refer to Northrim BanCorp, Inc. and its subsidiaries that are consolidated for financial reporting purposes.
Note Regarding Forward Looking-Statements
This quarterly report on Form 10-Q includes “forward-looking statements,” as that term is defined for purposes of Section 21E of the Securities Exchange Act of 1934, as amended, which are not historical facts. These forward-looking statements describe management’s expectations about future events and developments such as future operating results, growth in loans and deposits, continued success of the Company’s style of banking, and the strength of the local economy. All statements, other than statements of historical fact, regarding our financial position, business strategy, management’s plans and objectives for future operations are forward-looking statements. We use words such as “anticipate,” “believe,” “expect,” “intend” and similar expressions in part to help identify forward-looking statements. Forward-looking statements reflect management’s current plans and expectations and are inherently uncertain. Our actual results may differ significantly from management’s expectations, and those variations may be both material and adverse. Forward-looking statements are subject to various risks and uncertainties that may cause our actual results to differ materially and adversely from our expectations as indicated in the forward-looking statements. These risks and uncertainties include: potential further increases in interest rates; the value of securities held in our investment portfolio; the impact of the results of government initiatives on the regulatory landscape, natural resource extraction industries, and capital markets; the impact of declines in the value of commercial and residential real estate markets, high unemployment rates, inflationary pressures and slowdowns in economic growth; changes in banking regulation or actions by bank regulators; inflation, supply-chain constraints, and potential geopolitical instability, including the wars in Ukraine and the Middle East; financial stress on borrowers (consumers and businesses) as a result of higher rates or an uncertain economic environment; the general condition of, and changes in, the Alaska economy; our ability to maintain or expand our market share or net interest margin; the sufficiency of our provision for credit losses and the accuracy of the assumptions or estimates used in preparing our financial statements, including those related to current expected credit losses accounting guidance; our ability to maintain asset quality; our ability to implement our marketing and growth strategies; our ability to identify and address cyber-security risks, including security breaches, “denial of service attacks,” “hacking,” and identity theft; disease outbreaks; and our ability to execute our business plan. Further, actual results may be affected by competition on price and other factors with other financial institutions; customer acceptance of new products and services; the regulatory environment in which we operate; and general trends in the local, regional and national banking industry and economy. In addition, there are risks inherent in the banking industry relating to collectability of loans and changes in interest rates. Many of these risks, as well as other risks that may have a material adverse impact on our operations and business, are identified in Part II. Item 1A Risk Factors of this report and Part I. Item 1A in the Company's Annual Report on Form 10-K for the year ended December 31, 2023, as well as in our other filings with the Securities and Exchange Commission. However, you should be aware that these factors are not an exhaustive list, and you should not assume these are the only factors that may cause our actual results to differ from our expectations. In addition, you should note that forward looking statements are made only as of the date of this report and that we do not intend to update any of the forward-looking statements or the uncertainties that may adversely impact those statements, other than as required by law.
    




40

Update on Economic Conditions

The Alaska Department of Labor (“DOL”) has reported Alaska’s seasonally adjusted unemployment rate in August of 2024 was 4.6% compared to the U.S. rate of 4.2%. The total number of payroll jobs in Alaska, not including uniformed military, increased 1.8% or 6,400 jobs between August of 2023 and August of 2024.
According to the DOL, the Construction sector had the largest growth in new jobs through August compared to the prior year. The Construction sector added 2,600 positions for a year over year growth rate of 12.9% between August of 2023 and 2024. The larger Health Care sector grew by 2,000 jobs for an annual growth rate of 4.9% over the same period. The Oil & Gas sector increased by 6.5% or 500 new direct jobs. Professional and Business Services added 1,000 jobs year over year through August of 2024, up 3.4%. The Government sector grew by 700 jobs for 0.9% growth, adding 500 Federal jobs and 200 Local government positions in Alaska. The only sectors to decline between August 2023 and August 2024 were Manufacturing (primarily seafood processing) shrinking 1,300 positions and Information, down 200 jobs.

Alaska’s Gross State Product (“GSP”) in the second quarter of 2024, was estimated to be $69.8 billion in current dollars, according to the Federal Bureau of Economic Analysis ("BEA"). Alaska’s inflation adjusted “real” GSP increased 6.5% in 2023, placing Alaska fifth best of all 50 states. However, in the second quarter of 2024 Alaska decreased at an annualized rate of 1.1%, compared to the average U.S. growth rate of 3%. Alaska’s real GSP decline in the second quarter of 2024 was primarily caused by a slowdown in the Mining, Oil & Gas; and Transportation and Warehousing sectors.

The BEA also calculated Alaska’s seasonally adjusted personal income at $55.4 billion in the second quarter of 2024. This was an annualized improvement of 4% for Alaska, compared to the national average of 5.3%.

The monthly average price of Alaska North Slope (“ANS”) crude oil was at an annual high of $89.05 in April of 2024 and averaged $74.06 in September of this year. The Alaska Department of Revenue (“DOR”) calculated ANS crude oil production was 479 thousand barrels per day (“bpd”) in Alaska’s fiscal year ending June 30, 2023 and declined to 461 thousand bpd in Alaska’s fiscal year 2024. Starting in fiscal year 2025 it is projected to grow to 477 thousand bpd. The DOR projects the number to grow rapidly and reach 640 thousand bpd by fiscal year 2033. This is primarily a result of new production coming on-line in and around the NPR-A region west of Prudhoe Bay.

According to the Alaska Multiple Listing Services, the average sales price of a single family home in Anchorage rose 5.2% in 2023 to $480,207, following a 7.6% increase in 2022. This was the sixth consecutive year of price increases. In the first nine months of 2024 the average price continues to increase 6.8% to an average sale of $512,815.

The average sales price for single family homes in the Matanuska Susitna Borough rose 4% in 2023 to $397,589, after increasing 9.9% in 2022. This continues a trend of average price increases for more than a decade in the region. In the first nine months of 2024 the average sales price increased 4.6% to $415,709 in the Matanuska Susitna Borough. These two markets represent where the vast majority of the residential lending activity of Northrim Bank (the “Bank”) occurs.

The Alaska Multiple Listing Services reported a 1.2% decrease in the number of units sold in Anchorage when comparing January to September of 2023 and 2024. There were 5.4% less homes sold in the Matanuska Susitna Borough for the same nine month time period in 2024 compared to the prior year.

The Board of Governors of the Federal Reserve System lowered its benchmark interest rate target to 4.75%-5.00% as of September 30, 2024 from 5.25%-5.50% as of December 31, 2023. The prime rate of interest has dropped to 8.00% as of September 30, 2024 compared to 8.50% as of December 31, 2023.



Highlights and Summary of Performance - Third Quarter of 2024

The Company reported net income and earnings per diluted share of $8.8 million and $1.57, respectively, for the third quarter of 2024 compared to net income and earnings per diluted share of $8.4 million and $1.48, respectively, for the third quarter of 2023. The Company reported net income and earnings per diluted share of $26.0 million and $4.67, respectively, for the first nine months of 2024 compared to net income and earnings per diluted share of $18.8 million and $3.30, respectively, for the first nine months of 2023. The increase in net income for both the three and nine-month periods ending September 30, 2024 compared to the same periods last year is primarily attributable to an increase in mortgage banking income and higher net interest income, which was only partially offset by an increase in salaries and other personnel expense and an increase in the provision for credit losses.
41

•Net interest income in the third quarter of 2024 increased 9% to $28.8 million compared to $26.4 million in the third quarter of 2023. Net interest income in the first nine months of 2024 increased 8% to $82.3 million compared to $76.5 million in the first nine months of 2023.
•Net interest margin was 4.29% for the third quarter of 2024, a 14 basis point increase from the third quarter of 2023. Net interest margin was 4.23% for the first nine months of 2024, a 6 basis point increase from the first nine months of 2023. The increase in net interest margin in the third quarter and first nine months of 2024 compared to the same periods in 2023 was primarily due higher yields on earning assets, a favorable change in the mix of earning-assets, and an increase in total earning assets which were only partially offset by higher interest costs.
•The weighted average interest rate for new loans booked in the third quarter of 2024 was 7.24% compared to 7.44% in the third quarter a year ago.
•Loans were $2.01 billion at September 30, 2024, up 12% from December 31, 2023 as a result of growth in nearly all loan segments.
•Total deposits were $2.63 billion at September 30, 2024, up 6% from December 31, 2023. Demand deposits increased 2% at September 30, 2024 from December 31, 2023 and represent 29% of total deposits at September 30, 2024.
•The average cost of interest-bearing deposits for the quarter was 2.24% at September 30, 2024, up from 1.75% at September 30, 2023.
•Total liquid assets and investments and loans maturing within one year were $1.07 billion and our funds available for borrowing under our existing lines of credit were $641.7 million at September 30, 2024.
•Mortgage loan originations increased to $248.05 million in the third quarter of 2024, up from $153.45 million in the third quarter a year ago. Mortgage loans funded for sale were $209.96 million in the third quarter of 2024, compared to $131.86 million in the third quarter of 2023.

Other financial measures are shown in the table below:
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
Return on average assets, annualized1.22 %1.22 %1.24 %0.95 %
Return on average shareholders' equity, annualized13.69 %14.67 %14.12 %11.11 %
Dividend payout ratio39.18 %40.40 %39.31 %54.62 %
Nonperforming assets: Nonperforming assets, net of government guarantees were $5.3 million at September 30, 2024 and $5.8 million at December 31, 2023. Other Real Estate Owned (“OREO”), net of government guarantees was zero at September 30, 2024 and December 31, 2023. Repossessed assets increased to $297,000 as of September 30, 2024 from zero at December 31, 2023. Nonperforming loans, net of government guarantees decreased $41,000 or 1% to $5.0 million as of September 30, 2024 from $5.0 million as of December 31, 2023, primarily due to payoffs and pay downs which were only partially offset by the addition of two loans in the first nine months of 2024. Approximately $3.0 million, or 61% of nonperforming assets, net of government guarantees at September 30, 2024, are nonaccrual loans related to three commercial relationships.
Potential problem assets: Potential problem loans are loans which are currently performing in accordance with contractual terms but that have developed negative indications that the borrower may not be able to comply with present payment terms and which may later be included in nonaccrual, past due, or impaired loans. These loans are closely monitored and their performance is reviewed by management on a regular basis. At September 30, 2024, management had identified $1.5 million potential problem loans, down slightly from $1.9 million at December 31, 2023.

RESULTS OF OPERATIONS
Income Statement
    Net Income
    Net income for the third quarter of 2024 increased $451,000 to $8.8 million as compared to $8.4 million for the same period in 2023. The increase in net income in the third quarter of 2024 as compared to the same quarter a year ago is largely attributable to a $2.6 million increase in mortgage banking income and a $2.5 million increase in net interest income. These changes were only partially offset by a $873,000 increase in the provision for credit losses, a $1.9 million increase in salaries and other personnel expense, as well as a $786,000 increase in OREO expense due to a gain on sale recorded in the third quarter of 2023 for proceeds received related to a government guarantee on an OREO property sold in December 2022.
42

Net income for the first nine months of 2024 increased $7.3 million to $26.0 million as compared to $18.8 million for the same period in 2023. The increase in net income in the first nine months of 2024 as compared to the same period a year ago is largely attributable to a $6.6 million increase in mortgage banking income, a $5.8 million increase in net interest income, and a $865,000 decrease in the provision for credit losses which were only partially offset by and a $3.3 million increase in salaries and other personnel expense, as well as a $557,000 increase in data processing expense.
    Net Interest Income/Net Interest Margin
    Net interest income for the third quarter of 2024 increased 9% or $2.5 million, to $28.8 million as compared to $26.4 million for the third quarter of 2023. The net interest margin increased 14 basis points to 4.29% in the third quarter of 2024 as compared to 4.15% in the third quarter of 2023. Net interest income for the first nine months of 2024 increased 8% or $5.8 million, to $82.3 million as compared to $76.5 million for the first nine months of 2023. The net interest margin increased 6 basis points to 4.23% in the first nine months of 2024 as compared to 4.17% in the first nine months of 2023.
The increase in net interest income in the third quarter and first nine months of 2024 compared to the same periods in 2023 was primarily the result of increased interest on loans which was only partially offset by a decrease in interest income on investments and interest bearing deposits in other banks, as well as an increase in interest expense on interest-bearing deposits.
The increase in net interest margin in the third quarter and first nine months of 2024 as compared to the same periods of 2023 was primarily due to higher yields on earning assets, a favorable change in the mix of earning-assets, and an increase in total earning assets which were only partially offset by higher interest costs.



43

Components of Net Interest Margin

The following table compares average balances and rates as well as margins on earning assets for the three-month periods ended September 30, 2024 and 2023. Average yields or costs are calculated on a tax-equivalent basis.
(Dollars in Thousands)Three Months Ended September 30,
Interest income/Average Tax Equivalent
Average BalancesChangeexpenseChange
 Yields/Costs6
20242023$%20242023$%20242023Change
Interest-bearing deposits in other banks1
$28,409 $42,273 ($13,864)(33)%$389 $584 ($195)(33)%5.28 %5.39 %(0.11)%
Taxable long-term investments2
619,012 715,767 (96,755)(14)%4,164 4,727 (563)(12)%2.80 %2.43 %0.37 %
Loans held for sale93,689 62,350 31,339 50 %1,452 988 464 47 %6.20 %6.34 %(0.14)%
Loans3,4
1,933,181 1,695,736 237,445 14 %33,411 28,109 5,302 19 %6.91 %6.61 %0.30 %
   Interest-earning assets5
2,674,291 2,516,126 158,165 6 %39,416 34,408 5,008 15 %5.92 %5.48 %0.44 %
Nonearning assets196,266 205,770 (9,504)(5)%
          Total$2,870,557 $2,721,896 $148,661 5 %
Interest-bearing demand$929,510 $828,854 $100,656 12 %$4,670 $3,614 $1,056 29 %2.00 %1.73 %0.27 %
Savings deposits240,040 270,945 (30,905)(11)%289 322 (33)(10)%0.48 %0.47 %0.01 %
Money market deposits198,840 232,054 (33,214)(14)%828 766 62 8 %1.66 %1.31 %0.35 %
Time deposits427,717 287,625 140,092 49 %4,336 2,436 1,900 78 %4.03 %3.36 %0.67 %
   Total interest-bearing deposits1,796,107 1,619,478 176,629 11 %10,123 7,138 2,985 42 %2.24 %1.75 %0.49 %
Borrowings43,555 76,681 (33,126)(43)%451 920 (469)(51)%4.07 %4.73 %(0.66)%
   Total interest-bearing liabilities1,839,662 1,696,159 143,503 8 %10,574 8,058 2,516 31 %2.29 %1.88 %0.41 %
Non-interest bearing demand deposits 722,000 747,147 (25,147)(3)%
Other liabilities52,387 52,078 309 1 %
Equity256,508 226,512 29,996 13 %
          Total$2,870,557 $2,721,896 $148,661 5 %
Net interest income$28,842 $26,350 $2,492 9 %
Net interest margin4.29 %4.15 %0.14 %
Average loans to average interest-earning assets72.29 %67.39 %
Average loans to average total deposits76.77 %71.65 %
Average non-interest deposits to average total deposits28.67 %31.57 %
Average interest-earning assets to average interest-bearing liabilities145.37 %148.34 %

1Consists of interest bearing deposits in other banks and domestic CDs.
2Consists of investment securities available for sale, investment securities held to maturity, marketable equity securities, and investment in Federal Home Loan Bank stock.
3Interest income includes loan fees. Loan fees recognized during the period and included in the yield calculation totaled $1.1 million and $881,000 in the third quarter of 2024 and 2023, respectively.
4Nonaccrual loans are included with a zero effective yield. Average nonaccrual loans included in the computation of the average loan balances were $5.0 million and $7.2 million in the third quarter of 2024 and 2023, respectively.
5The Company does not have any fed funds sold or securities purchased with agreements to resell to disclose as part of its total interest-earning assets in the periods presented.
6Tax-equivalent yields/costs assume a federal tax rate of 21% and state tax rate of 7.43% for a combined tax rate of 28.43%.
    
44

The following tables set forth the changes in consolidated net interest income attributable to changes in volume and to changes in interest rates for the three-month periods ending September 30, 2024 and 2023. Changes attributable to the combined effect of volume and interest rate have been allocated proportionately to the changes due to volume and the changes due to interest rates. The Company did not have any fed funds sold or securities purchased with agreements to resell for the three-month periods ending September 30, 2024 and 2023.
(In Thousands)Three Months Ended September 30, 2024 vs. 2023
Increase (decrease) due to
VolumeRateTotal
Interest Income:
   Short-term investments($184)($11)($195)
   Taxable long-term investments(661)98 (563)
   Loans held for sale487 (23)464 
   Loans3,993 1,309 5,302 
          Total interest income$3,635 $1,373 $5,008 
Interest Expense:
   Interest-bearing demand$244 $812 $1,056 
   Savings deposits(38)5 (33)
   Money market deposits(121)183 62 
   Time deposits1,346 554 1,900 
         Interest-bearing deposits1,431 1,554 2,985 
   Borrowings(317)(152)(469)
          Total interest expense$1,114 $1,402 $2,516 



45

The following table compares average balances and rates as well as margins on earning assets for the nine-month periods ended September 30, 2024 and 2023. Average yields or costs are calculated on a tax-equivalent basis.
(Dollars in Thousands)Nine Months Ended September 30,
Interest income/Average Tax Equivalent
Average BalancesChangeexpenseChange
 Yields/Costs6
20242023$%20242023$%20242023Change
Interest-bearing deposits in other banks1
$35,747 $79,362 ($43,615)(55)%$1,459 $2,901 ($1,442)(50)%5.34 %4.82 %0.52 %
Taxable long-term investments2
643,221 723,693 (80,472)(11)%12,994 14,018 (1,024)(7)%2.82 %2.41 %0.41 %
Loans held for sale63,917 40,433 23,484 58 %2,942 1,837 1,105 60 %6.14 %6.06 %0.08 %
Loans3,4
1,857,756 1,608,293 249,463 16 %94,738 77,267 17,471 23 %6.85 %6.46 %0.39 %
   Interest-earning assets5
2,600,641 2,451,781 148,860 6 %112,133 96,023 16,110 17 %5.81 %5.30 %0.51 %
Nonearning assets200,619 192,430 8,189 4 %
          Total$2,801,260 $2,644,211 $157,049 6 %
Interest-bearing demand$908,142 $771,504 $136,638 18 %$13,454 $8,490 $4,964 58 %1.98 %1.47 %0.51 %
Savings deposits244,385 284,841 (40,456)(14)%833 989 (156)(16)%0.46 %0.46 %— %
Money market deposits205,266 256,937 (51,671)(20)%2,491 2,361 130 6 %1.62 %1.23 %0.39 %
Time deposits393,386 264,026 129,360 49 %12,001 5,995 6,006 100 %4.07 %3.04 %1.03 %
   Total interest-bearing deposits1,751,179 1,577,308 173,871 11 %28,779 17,835 10,944 61 %2.20 %1.51 %0.69 %
Borrowings35,327 52,075 (16,748)(32)%1,012 1,664 (652)(39)%3.76 %4.23 %(0.47)%
   Total interest-bearing liabilities1,786,506 1,629,383 157,123 10 %29,791 19,499 10,292 53 %2.23 %1.60 %0.63 %
Non-interest bearing demand deposits 711,197 746,251 (35,054)(5)%
Other liabilities57,097 42,596 14,501 34 %
Equity246,460 225,981 20,479 9 %
          Total$2,801,260 $2,644,211 $157,049 6 %
Net interest income$82,342 $76,524 $5,818 8 %
Net interest margin4.23 %4.17 %0.06 %
Average loans to average interest-earning assets71.43 %65.60 %
Average loans to average total deposits75.45 %69.22 %
Average non-interest deposits to average total deposits28.88 %32.12 %
Average interest-earning assets to average interest-bearing liabilities145.57 %150.47 %

1Consists of interest bearing deposits in other banks and domestic CDs.
2Consists of investment securities available for sale, investment securities held to maturity, marketable equity securities, and investment in Federal Home Loan Bank stock.
3Interest income includes loan fees. Loan fees recognized during the period and included in the yield calculation totaled $3.3 million and $3.2 million in the first nine months of 2024 and 2023, respectively.
4Nonaccrual loans are included with a zero effective yield. Average nonaccrual loans included in the computation of the average loan balances were $5.3 million and $7.4 million in the first nine months of 2024 and 2023, respectively.
5The Company does not have any fed funds sold or securities purchased with agreements to resell to disclose as part of its total interest-earning assets in the periods presented.
6Tax-equivalent yields/costs assume a federal tax rate of 21% and state tax rate of 7.43% for a combined tax rate of 28.43%.
    
46

The following tables set forth the changes in consolidated net interest income attributable to changes in volume and to changes in interest rates for the nine-month periods ending September 30, 2024 and 2023. Changes attributable to the combined effect of volume and interest rate have been allocated proportionately to the changes due to volume and the changes due to interest rates. The Company did not have any fed funds sold or securities purchased with agreements to resell for the nine-month periods ending September 30, 2024 and 2023.
(In Thousands)Nine Months Ended September 30, 2024 vs. 2023
Increase (decrease) due to
VolumeRateTotal
Interest Income:
   Short-term investments($1,720)$278 ($1,442)
   Taxable long-term investments(1,605)581 (1,024)
   Loans held for sale1,082 23 1,105 
   Loans12,648 4,823 17,471 
          Total interest income$10,405 $5,705 $16,110 
Interest Expense:
   Interest-bearing demand$945 $4,019 $4,964 
   Savings deposits(137)(19)(156)
   Money market deposits(533)663 130 
   Time deposits3,535 2,471 6,006 
         Interest-bearing deposits3,810 7,134 10,944 
   Borrowings(439)(213)(652)
          Total interest expense$3,371 $6,921 $10,292 

47

Provision for Credit Losses 
The provision for credit loss expense is the amount of expense that, based on our judgment, is required to maintain the Allowance for Credit Losses (“ACL”) at an appropriate level under the Company's Current Expected Credit Losses (“CECL”) model. The determination of the amount of the ACL is complex and involves a high degree of judgment and subjectivity. The following table presents the major categories of credit loss expense for the three and nine-month periods ended September 30, 2023 and 2024:
Three Months Ended September 30,Nine Months Ended September 30,
(In Thousands)2024202320242023
Credit loss expense on loans held for investment$1,738 $750 $2,093 $2,519 
Credit loss expense on unfunded commitments325 440 (1)438 
Credit loss expense on available for sale debt securities— — — — 
Credit loss expense on held to maturity securities— — — — 
Credit loss expense on purchased receivables— — — — 
Total credit loss expense$2,063 $1,190 $2,092 $2,957 
The increase in the provision for credit losses for both the three- and nine-month periods ended September 30, 2024 as compared to the same periods in 2023 is primarily the result of a higher loan growth. The provision for credit losses on unfunded commitments decreased in both the three- and nine-month periods ended September 30, 2024 as compared to the same periods in 2023 primarily due to lower growth in unfunded commitment balances as well as changes in mix of the portfolio. Fluctuations in the provision for credit losses in the future will be dependent upon changes in economic conditions and forecasts, as well as loan portfolio composition, quality, and duration.
Other Operating Income
Other operating income for the three-month period ended September 30, 2024 increased $3.6 million, or 45%, to $11.6 million as compared to $8.0 million for the same period in 2023, primarily due to a $2.6 million increase in mortgage banking income in the second quarter of 2024 compared to the same quarter a year ago as well as a $564,000 increase in the fair value of marketable equity securities. Service charges on deposit accounts and bankcard fees also increased in the third quarter of 2024 as compared to the same period in 2023. The increase in mortgage banking income in the three-month period ended September 30, 2024 as compared to the same period in 2023 was primarily due to increased production volume due to increased home purchase activity.

Other operating income for the nine-month period ended September 30, 2024 increased $9.1 million, or 46%, to $29.0 million as compared to $19.9 million for the same period in 2023, primarily due to a $6.6 million increase in mortgage banking income as well as a $1.3 million increase in the fair value of marketable equity securities and a $445,000 increase in purchased receivable income. Bankcard fees, purchased receivable income, and service charges on deposit accounts also increased in the first nine months of 2024 as compared to the same period in 2023. The increase in mortgage banking income in the nine-month period ended September 30, 2024 as compared to the same period in 2023 was primarily due to increased production volume due to rebounding home purchase activity.

Other Operating Expense
Other operating expense for the third quarter of 2024 increased $3.8 million, or 17%, to $26.7 million as compared to $22.9 million for the same period in 2023, primarily due to a $1.9 million increase in salaries and other personnel expense as well as a $786,000 increase in OREO expense due to subsequent proceeds received in the third quarter of 2023 that are related to a government guarantee on an OREO property sold in December 2022. The increase in salaries and other personnel expense was primarily due to $1.0 million higher mortgage commissions expense due to higher production in the third quarter of 2024 compared to the same period in 2023 as well as $1.2 million higher profit sharing expense, which generally increases when net income increases to reflect a higher expected payout to employees.
48

Other operating expense for the nine-month period ended September 30, 2024 increased $5.4 million, or 8%, to $75.6 million as compared to $70.2 million for the same period in 2023 is primarily due to a $3.3 million increase in salaries and other personnel expense primarily due to $1.2 million higher mortgage commissions expense due to higher production and $2.0 million higher profit sharing expense as well as a $557,000 increase in data processing expense, and a $379,000 increase in OREO expense due to subsequent proceeds received in the first quarter of 2024 and third quarter of 2023 that are related to a government guarantee on an OREO property sold in December 2022.
Income Taxes
For the third quarter and first nine months of 2024, Northrim recorded a higher effective tax rate as compared to the same periods in 2023 as a result of a decrease in tax credits and tax exempt interest income as a percentage of pre-tax income in 2024. In the third quarter of 2024, Northrim recorded $2.8 million in state and federal income tax expense, for an effective tax rate of 24.17% compared to $1.9 million and 18.43% for the same period in 2023. In the first nine months of 2024, Northrim recorded $7.7 million in state and federal income tax expense, for an effective tax rate of 22.71% compared to $4.5 million and 19.29% for the same period in 2023.
    

FINANCIAL CONDITION
    Balance Sheet Overview
Investment Securities
Investment Securities include investment securities available for sale, investment securities held to maturity, and marketable equity securities, at September 30, 2024 decreased 14% to $594.9 million from $687.8 million at December 31, 2023 primarily due to maturities and calls of available for sale securities during the first nine months of 2024.
The table below details portfolio investment balances by portfolio investment type for the periods indicated:
 September 30, 2024December 31, 2023
 Dollar AmountPercent of TotalDollar AmountPercent of Total
(In Thousands)
Balance% of totalBalance% of total
U.S. Treasury and government sponsored entities$489,923 82.3 %$564,125 82.1 %
Municipal securities— — %816 0.1 %
Corporate bonds45,552 7.7 %50,374 7.3 %
Collateralized loan obligations46,485 7.8 %59,371 8.6 %
Preferred stock12,957 2.2 %13,153 1.9 %
   Total$594,917 $687,839 

The average estimated duration of the investment portfolio at September 30, 2024, was approximately 2.3 years. As of September 30, 2024, $105.1 million of available for sale securities with a weighted average yield of 0.61% are scheduled to mature in the next six months, $73.0 million with a weighted average yield of 2.48% are scheduled to mature in six months to one year, and $177.8 million with a weighted average yield of 1.31% are scheduled to mature in the following year, representing a total of $355.9 million or 13% of earning assets that are scheduled to mature in the next 24 months.

49

Loans and Lending Activities
The following table presents the concentration distribution of the loan portfolio, net of deferred fees and costs, as of the dates indicated:
 September 30, 2024December 31, 2023
 Dollar AmountPercent of TotalDollar AmountPercent of Total
(In Thousands)
Commercial & industrial loans$414,201 20.6 %$411,387 23.0 %
Commercial real estate:
Owner occupied properties410,924 20.5 %366,741 20.5 %
Non-owner occupied and multifamily properties580,702 28.8 %515,528 28.8 %
Residential real estate:
1-4 family residential properties secured by first liens248,906 12.4 %203,738 11.4 %
1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens45,531 2.3 %33,996 1.9 %
1-4 family residential construction loans39,557 2.0 %30,976 1.7 %
Other construction, land development and raw land loans183,849 9.2 %148,373 8.3 %
Obligations of states and political subdivisions in the US29,586 1.5 %30,407 1.7 %
Agricultural production, including commercial fishing44,489 2.2 %41,007 2.3 %
Consumer loans7,907 0.4 %6,241 0.3 %
Other loans1,913 0.1 %1,103 0.1 %
Total loans$2,007,565  $1,789,497  
Loans increased by $218.1 million, or 12%, to $2.008 billion at September 30, 2024 from $1.789 billion at December 31, 2023, as a result of increases in nearly all loan segments.
Information about industry concentrations
The Company defines “direct exposure” to the oil and gas industry as companies that it has identified as significantly reliant upon activity related to the oil and gas industry, such as oilfield services, lodging, equipment rental, transportation, and other logistic services specific to the industry. The Company estimates that $82.0 million, or approximately 4% of loans as of September 30, 2024 have direct exposure to the oil and gas industry as compared to $96.1 million, or approximately 5% of loans as of December 31, 2023. The Company's unfunded commitments to borrowers that have direct exposure to the oil and gas industry were $29.7 million and $38.6 million at September 30, 2024 and December 31, 2023, respectively. The portion of the Company's ACL that related to the loans with direct exposure to the oil and gas industry was estimated at $882,000 as of September 30, 2024 and $884,000 as of December 31, 2023.
    
    The following table details loan balances by loan segment and class of financing receivable for loans with direct oil and gas exposure as of the dates indicated:

(In Thousands)September 30, 2024December 31, 2023
Commercial & industrial loans$67,708 $77,917 
Commercial real estate:
     Owner occupied properties7,975 11,410 
     Non-owner occupied and multifamily properties4,983 5,434 
Other loans1,301 1,357 
Total$81,967 $96,118 

The Company monitors other concentrations within the loan portfolio depending on trends in the current and future estimated economic conditions. At September 30, 2024, the Company had $127.4 million, or 6% of portfolio loans, in the Healthcare sector, $110.4 million, or 5% of portfolio loans, in the Tourism sector, $96.6 million, or 5% of portfolio loans, in the Accommodations sector, $83.6 million, or 4% of portfolio loans, in the Fishing sector, $70.6 million, or 3% of portfolio loans, in the Aviation (non-tourism) sector, $67.7 million, or 3% of portfolio loans, in the Retail sector, and $53.1 million, or 3% in the Restaurant sector.
50

The portion of the Company's ACL that related to the loans with exposure to these industries is estimated at the following amounts as of September 30, 2024:
(In Thousands)TourismAviation (non-tourism)HealthcareRetailFishingRestaurant AccommodationsTotal
ACL$632 $619 $990 $645 $509 $420 $920 $4,735 

51

Credit Quality and Nonperforming Assets
The following table sets forth information regarding our nonperforming loans and total nonperforming assets for the periods indicated:
September 30,December 31,
(In Thousands)20242023
Nonaccrual loans$4,944$6,069
Loans 90 days past due and accruing17—
Total nonperforming loans$4,961$6,069
Nonperforming loans guaranteed by government—(1,067)
Net nonperforming loans$4,961$5,002
Repossessed assets297—
Nonperforming purchased receivables—808
Net nonperforming assets$5,258$5,810
Nonperforming loans, net of government guarantees / portfolio loans0.25 %0.28 %
Nonperforming loans, net of government guarantees / portfolio loans, net of government guarantees0.26 %0.30 %
Nonperforming assets, net of government guarantees / total assets0.18 %0.21 %
Nonperforming assets, net of government guarantees / total assets net of government guarantees0.19 %0.21 %
Adversely classified loans, net of government guarantees$6,503 $7,057 
Special mention loans, net of government guarantees$9,641 $6,580 
Loans 30-89 days past due and accruing, net of government guarantees /portfolio loans0.08 %0.03 %
Loans 30-89 days past due and accruing, net of government guarantees /
     portfolio loans, net of government guarantees0.09 %0.03 %
Allowance for credit losses / portfolio loans0.97 %0.97 %
Allowance for credit losses / portfolio loans, net of government guarantees1.04 %1.02 %
Allowance for credit losses / nonperforming loans, net of government
     guarantees394 %345 %
Gross loan charge-offs for the quarter$15 $281 
Gross loan recoveries for the quarter($111)($185)
Net loan (recoveries) charge-offs for the quarter($96)$96 
Net loan (recoveries) charge-offs year-to-date($164)($38)
Net loan (recoveries) charge-offs for the quarter / average loans, for the quarter— %0.01 %
Net loan (recoveries) charge-offs year-to-date / average loans,
     year-to-date annualized— %— %


52

Allowance for Credit Losses
The following table sets forth information regarding changes in the ACL for the periods indicated:
Three Months Ended September 30,Nine Months Ended September 30,
(In Thousands)2024202320242023
Balance at beginning of period$17,694 $15,645 $17,270 $13,838 
Charge-offs:  
Commercial & industrial loans— (91)— (140)
Agricultural production, including commercial fishing— — (25)— 
Consumer loans(15)— (15)(14)
Total charge-offs(15)(91)(40)(154)
Recoveries:    
Commercial & industrial loans104 181 181 267 
Residential real estate:
     1-4 family residential properties secured by junior liens
     and revolving secured by 1-4 family first liens		6 5 16 17 
Agricultural production, including commercial fishing1 — 6 — 
Consumer loans— 1 1 4 
Total recoveries111 187 204 288 
Net, recoveries and (charge-offs)96 96 164 134 
Provision for credit losses
1,738 750 2,094 2,519 
Balance at end of period$19,528 $16,491 $19,528 $16,491 
    The following table sets forth information regarding changes in the ACL for unfunded commitments for the periods indicated:
Three Months Ended September 30,Nine Months Ended September 30,
(In Thousands)2024202320242023
Balance at beginning of period$2,091 $1,968 $2,418 $1,970 
(Benefit) provision for credit losses325 440 (2)438 
Balance at end of period$2,416 $2,408 $2,416 $2,408 
53

The ACL for loans held for investment at September 30, 2024 increased $2.3 million from December 31, 2023 primarily due to higher non-government guaranteed loan balances and changes in management's CECL model assumptions. While management believes that it uses the best information available to determine the ACL, unforeseen market conditions and other events could result in adjustment to the ACL, and net income could be significantly affected if circumstances differed substantially from the assumptions used in making the final determination of the ACL.
Deposits
Deposits are the Company’s primary source of funds. Total deposits increased $140.5 million, or 6%, to $2.63 billion as of September 30, 2024 compared to $2.49 billion as of December 31, 2023, primarily due to seasonality. The following table summarizes the Company's composition of deposits as of the periods indicated:
September 30, 2024December 31, 2023
(In thousands)Balance% of totalBalance% of total
Demand deposits$763,595 29 %$749,683 31 %
Interest-bearing demand979,238 37 %927,291 37 %
Savings deposits245,043 9 %255,338 10 %
Money market deposits201,821 8 %221,492 9 %
Time deposits435,870 17 %331,251 13 %
   Total deposits$2,625,567 $2,485,055 
The Company’s mix of deposits continues to contribute to a low cost of funds with balances in transaction accounts representing 83% of total deposits at September 30, 2024 and 87% of total deposits at December 31, 2023.
    The only deposit category with stated maturity dates is certificates of deposit. At September 30, 2024, the Company had $435.9 million in certificates of deposit as compared to certificates of deposit of $331.3 million at December 31, 2023. At September 30, 2024, $394.7 million, or 91%, of the Company’s certificates of deposits are scheduled to mature over the next 12 months as compared to $268.5 million, or 81%, of total certificates of deposit at December 31, 2023. The aggregate amount of certificates of deposit in amounts of $250,000 and greater at September 30, 2024 and December 31, 2023, was $216.0 million and $142.1 million, respectively. The following table sets forth the amount outstanding of deposits in amounts of $250,000 and greater by time remaining until maturity and percentage of total deposits as of September 30, 2024:

 Time Certificates of Deposit
 of $250,000 or More
  Percent of Total Deposits
(In Thousands)Amount
Amounts maturing in:  
Three months or less$123,555 57 %
Over 3 through 6 months21,670 10 %
Over 6 through 12 months41,034 19 %
Over 12 months29,773 14 %
Total$216,032 100 %

At September 30, 2024, 73% of total deposits were held in business accounts and 27% of deposit balances were held in consumer accounts. Northrim had approximately 34,000 deposit customers with an average balance of $48,000 as of September 30, 2024. Northrim had 22 customers with balances over $10 million as of September 30, 2024 which accounted for $978.4 million, or 38%, of total deposits.

Uninsured deposits totaled approximately $1.12 billion or 43% of total deposits as of September 30, 2024 compared to $1.0 billion or 41% of total deposits as of December 31, 2023. Since interest rates began increasing in 2023, Northrim has taken a proactive, targeted approach to increase deposit rates. There was no unusual deposit activity during the first nine months of 2024.

54

Borrowings
    FHLB: The Bank is a member of the Federal Home Loan Bank of Des Moines (the “FHLB”). As a member, the Bank is eligible to obtain advances from the FHLB. FHLB advances are dependent on the availability of acceptable collateral such as marketable securities or real estate loans, although all FHLB advances are secured by a blanket pledge of the Bank’s assets. At September 30, 2024, our maximum borrowing line from the FHLB was approximately 45% of the Bank’s assets, subject to the FHLB’s collateral requirements. Based on the Company's current collateral pledged to the FHLB, less outstanding advances, the Company's borrowing line is $343.8 million as of September 30, 2024. The Company has outstanding advances of $13.4 million as of September 30, 2024 which were originated to match fund low income housing projects that qualify for long term fixed interest rates. These advances have original terms of either 18 or 20 years with 30 year amortization periods and fixed interest rates ranging from 1.23% to 3.25%.

    Federal Reserve Bank: The Federal Reserve Bank of San Francisco (the “Federal Reserve Bank”) is holding $70.0 million of securities as collateral to secure the Company's ability to take advances through the discount window on September 30, 2024. There were no discount window advances outstanding at either September 30, 2024 or December 31, 2023.

    Other Short-term Borrowings: The Company is subject to provisions under Alaska state law, which generally limit the amount of outstanding debt to 35% of total assets or $1.03 billion at September 30, 2024 and $975.9 million at December 31, 2023.
    
    At September 30, 2024 and December 31, 2023, the Company had no short-term (original maturity of one year or less) borrowings that exceeded 30% of shareholders’ equity.
    Long-term Borrowings. The Company had no long-term borrowing outstanding other than the FHLB advances noted above as of September 30, 2024 or December 31, 2023.    
    
Liquidity and Capital Resources
    The Company is a single bank holding company and its primary ongoing source of liquidity is from dividends received from the Bank. Such dividends arise from the cash flow and earnings of the Bank. Banking regulations and regulatory authorities may limit the amount of, or require the Bank to obtain certain approvals before paying, dividends to the Company. Given that the Bank currently meets and the Bank anticipates that it will continue to meet, all applicable capital adequacy requirements for a “well-capitalized” institution by regulatory standards, the Company expects to continue to receive dividends from the Bank during the remainder of 2024. Other available sources of liquidity for the bank holding company include the issuance of debt and the issuance of common or preferred stock. As of September 30, 2024, the Company has 10.0 million authorized shares of common stock, of which approximately 5.5 million are issued and outstanding, leaving approximately 4.5 million shares available for issuance. Additionally, the Company has 2.5 million authorized shares of preferred stock available for issuance.
The Bank manages its liquidity through its Asset and Liability Committee. The Bank's primary source of funds are customer deposits. These funds, together with loan repayments, loan sales, maturity of investment securities, borrowed funds, and retained earnings are used to make loans, to acquire securities and other assets, and to fund deposit flows and continuing operations. The primary sources of demands on our liquidity are customer demands for withdrawal of deposits and borrowers’ demands that we advance funds against unfunded lending commitments.
55

The Company had cash and cash equivalents of $102.9 million, or 3% of total assets at September 30, 2024 compared to $118.5 million, or 4% of total assets as of December 31, 2023. The decrease in cash and cash equivalents since the end of 2023 is primarily due to an increase in loans. The Company had other comprehensive income, net of tax, of $7.2 million for the nine-month period ending September 30, 2024 primarily due to unrealized holding gains on available for sale securities. Accumulated unrealized losses, net of income taxes on available for sale securities, which are recorded in total shareholders' equity, are $7.6 million as of September 30, 2024. Accumulated unrealized losses, net of income taxes on held to maturity securities, which are not recorded in shareholders' equity, are $1.5 million as of September 30, 2024. Management does not believe that liquidation of these securities, which would result in realized losses, will occur prior to maturity of these securities. As of September 30, 2024, the weighted average maturity of available for sale securities is 2.3 years, compared to 2.8 years at December 31, 2023, and 3.3 years at December 31, 2022. At September 30, 2024, $178.1 million available for sale securities mature within one year, $177.8 million mature within one to two years, and $112.0 million mature within two to three years. Our total unfunded commitments to fund loans and letters of credit at September 30, 2024 were $482.5 million. We do not expect that all of these loans are likely to be fully drawn upon at any one time. At September 30, 2024, certificates of deposit totaling $394.7 million are scheduled to mature over the next 12 months and may be withdrawn from the Bank. Similar to loans, we do not expect that these maturing certificates of deposit, or other non-maturity deposits, to be withdrawn from the Bank in a manner that will strain liquidity; however, unforeseen future circumstances or events may cause higher than anticipated withdrawal of deposits or draws of unfunded commitments to fund new loans. Management believes that cash requirements to fund future non-deposit and non-borrowing liabilities, including operating lease liabilities and other liabilities, as of September 30, 2024, are not material to the Company's liquidity position as of September 30, 2024.
The Company has other available sources of liquidity to fund unforeseen liquidity requirements. These include borrowings available through our correspondent banking relationships and our credit lines with the Federal Reserve Bank and the FHLB. At September 30, 2024, our liquid assets, which include investments and loans maturing within a year, were $1.07 billion. Our funds available for borrowing under our existing lines of credit based on loans currently pledged and investments available to be pledged as collateral were $641.7 million. Given these sources of liquidity and our expectations for customer demands for cash and for our operating cash needs, we believe our sources of liquidity to be sufficient for the foreseeable future.
As shown in the Consolidated Statements of Cash Flows included in Part I - Item 1 “Financial Statements” of this report, net cash used by operating activities was $44.2 million for the first nine months of 2024, primarily due to cash used in connection with the origination of loans held for sale, which was only partially offset by cash provided by net income and net proceeds from the sale of loans held for sale. Net cash used by investing activities was $100.7 million for the same period, primarily due to an increase in loans which was only partially offset by maturities and calls of available for sale securities. Net cash provided by financing activities in the same period was $129.3 million, primarily due to an increase in deposits which was only partially offset by cash dividends paid to shareholders.
Throughout our history, the Company has periodically repurchased for cash a portion of its shares of common stock in the open market. The Company repurchased 15,034 shares of its common stock under the Company's previously announced repurchase programs in the first quarter of 2024 and did not repurchase any shares in the second or third quarter of 2024. At September 30, 2024, there are 110,000 shares remaining under the repurchase program. The Company may elect to continue to repurchase our common stock from time-to-time depending upon market conditions, but we can make no assurances that we will continue this program or that we will authorize additional shares for repurchase.
Capital Requirements and Ratios
    We are subject to minimum capital requirements. Federal banking agencies have adopted regulations establishing minimum requirements for the capital adequacy of banks and bank holding companies. The requirements address both risk-based capital and leverage capital. We believe as of September 30, 2024, that the Company and the Bank met all applicable capital adequacy requirements for a “well-capitalized” institution by regulatory standards.

    The table below illustrates the capital requirements in effect for the periods noted for the Company and the Bank and the actual capital ratios for each entity that exceed these requirements. Management intends to maintain capital ratios for the Bank in 2024, exceeding the FDIC’s requirements for the “well-capitalized” classification. The capital ratios for the Company exceed those for the Bank primarily because the $10 million trust preferred securities offering completed in the fourth quarter of 2005 is included in the Company’s capital for regulatory purposes, although they are accounted for as a long-term debt in our financial statements. The trust preferred securities are not accounted for on the Bank’s financial statements nor are they included in its capital. As a result, the Company has $10 million more in regulatory capital than the Bank at September 30, 2024, which explains most of the difference in the capital ratios for the two entities.

56

 Minimum Required Capital Well-CapitalizedActual Ratio CompanyActual Ratio Bank
 
September 30, 2024
Total risk-based capital8.00%10.00%12.50%11.15%
Tier 1 risk-based capital6.00%8.00%11.53%10.18%
Common equity tier 1 capital4.50%6.50%11.10%10.18%
Leverage ratio4.00%5.00%9.08%8.01%

    See Note 22 of the Consolidated Financial Statements in Part II. Item 8 of the Company's Annual Report on Form 10-K for the year ended December 31, 2023 for a detailed discussion of the capital ratios. The requirements for “well-capitalized” come from the Prompt Corrective Action rules. See Part I. Item 1 - Business - Supervision and Regulation in the Company's Annual Report on Form 10-K for the year ended December 31, 2023. These rules apply to the Bank but not to the Company. Under the rules of the Federal Reserve Bank, a bank holding company such as the Company is generally defined to be “well capitalized” if its Tier 1 risk-based capital ratio is 8.0% or more and its total risk-based capital ratio is 10.0% or more.
    

Critical Accounting Policies

    Our critical accounting policies are described in detail in Part II. Item 7, Management’s Discussion and Analysis, and in Note 1, Summary of Significant Accounting Policies, of the Notes to Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023. The SEC defines “critical accounting policies” as those that require application of management's most difficult, subjective or complex judgments as a result of the need to make “critical accounting estimates”, which are estimates that involve estimation uncertainty that has had or is reasonably likely to have a material impact on the Company's financial condition or results of operations. The Company's critical accounting policies include allowance for credit losses, valuation of goodwill and other intangible assets, and the valuation of mortgage servicing rights. There have been no material changes to the valuation techniques or assumptions within the models, that affect our estimates during 2024 except as noted below.
Allowance for Credit Losses Policy: For loan pools that utilize the discounted cash flow ("DCF") method, the Company utilizes complex models to obtain reasonable and supportable forecasts to calculate two predictive metrics, the probability of default ("PD") and loss given default ("LGD"). The PD measures the probability that a loan will default within a given time horizon and is an assumption derived from regression models which determine the relationship between historical defaults and certain economic variables. As of December 31, 2023, management used a DCF method for eight of its 11 loan pools, which represented 96% of the amortized cost basis of total loan pools at December 31, 2023. The weighted average remaining life method was used for the remaining three loan pools primarily because loan level data constraints preclude the use of the DCF model. As of December 31, 2023, management utilized and forecasted U.S. unemployment as the sole loss driver for all of the loan pools that utilize the DCF method. The Company's regression models for PD as of these time periods utilize peer historical loan level default data. Peers for this purpose include banks in the United States with total assets between $1 billion and $5 billion whose loan portfolios share certain characteristics with the Company's loan portfolio. Peers differ by loan segment; a bank is included in the peer group for each loan segment under the following circumstances:
•The percentage the balance of the loan segment compared to total loans over a five year look back period is within 1.5 standard deviations of the Company's data;
•The percentage of total charge offs for the loan segment over a five year look back period is within 1 standard deviation of the Company's data; and
•The percentage of total charge offs for the loan segment during the recessionary period from the fourth quarter of 2008 to the fourth quarter of 2012 is within 1 standard deviation of the Company's data.

As of January 1, 2024, management uses a DCF method for seven of its 11 loan pools, which represented 96% of the amortized cost basis of total loan pools at September 30, 2024. The weighted average remaining life method was used for the remaining four loan pools; management changed the consumer pool to the remaining life method primarily because the regression model under the DCF model for this pool fell outside of acceptable levels for certain statistical tests performed by management to determine the appropriateness of model method selections.
57

Additionally, as of January 1, 2024, management utilizes and forecasts both U.S. unemployment and U.S. Gross Domestic Product in a multi-loss driver model for all of the loan pools that utilize the DCF method. The Company's regression models for PD as of January 1, 2024 utilize peer historical loan level default data. Peers for this purpose include banks in the United States with total assets between $1 billion and $5 billion whose loan portfolios share certain characteristics with the Company's loan portfolio. Peers differ by loan segment; a bank is included in the peer group for each loan segment under the following circumstances:
•The percentage the balance of the loan segment compared to total loans over a five year look back period is within 0.5 standard deviations of the Company's data, and
•The percentage of total charge offs for the loan segment over a five year look back period is within 0.25 standard deviation of the Company's data; and
•The percentage of total charge offs for the loan segment during the recessionary period from the fourth quarter of 2008 to the fourth quarter of 2012 is within 0.25 standard deviation of the Company's data.

There were no other changes to estimates and assumptions used in the Company's ACL since December 31, 2023.

Management performs a hypothetical sensitivity analysis of our ACL quarterly to understand the impact of a change in a key input on our ACL. As of September 30, 2024, if the four-quarter U.S. unemployment rate forecast had been approximately 8% higher and the four-quarter annualized growth rate in the U.S. Gross Domestic Product had been approximately 41% lower, our ACL for loans would have increased $1.1 million, or 6%. As of September 30, 2024, if the four-quarter national unemployment rate forecast had been approximately 32% higher and the four-quarter annualized growth rate in the U.S. Gross Domestic Product had been approximately 10% higher, which represents management's estimate of long-term mean rates for these economic factors, our ACL for loans would have increased $2.3 million, or 12%. This sensitivity analysis includes the impact to both the quantitative and qualitative components of our ACL. Changes in quantitative inputs and qualitative loss factors may not occur in the same direction or magnitude across all segments of our loan portfolio and deterioration in some quantitative inputs and qualitative loss factors may offset improvement in others. This sensitivity analysis does not represent a change to our expectations of the economic environment but provides a hypothetical result to assess the sensitivity of the ACL to a change in a key input. This sensitivity analysis does not incorporate changes to management’s judgment of qualitative loss factors.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
    Our assessment of market risk as of September 30, 2024 indicates that there are no material changes in the quantitative and qualitative disclosures from those in our Annual Report on Form 10-K for the year ended December 31, 2023.

ITEM 4. CONTROLS AND PROCEDURES 
Evaluation of Disclosure Controls and Procedures
As of the end of the period covered by this report, we evaluated the effectiveness of our disclosure controls and procedures (as defined in Rule 13a-15(e) or Rule 15d-15(e) under the Securities Exchange Act of 1934). Our principal executive and financial officers supervised and participated in this evaluation. Based on this evaluation, our principal executive and financial officers each concluded that as of September 30, 2024, the disclosure controls and procedures are effective in timely alerting them to material information required to be included in the periodic reports to the Securities and Exchange Commission. The design of any system of controls is based in part upon various assumptions about the likelihood of future events, and there can be no assurance that any of our plans, products, services or procedures will succeed in achieving their intended goals under future conditions.
Changes in Internal Control over Disclosure and Reporting
There was no change in our internal control over financial reporting (as defined in Rule 13a-15(f) and 15-d-15(f) of the Securities Exchange Act of 1934) that occurred during the quarterly period ended September 30, 2024 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

58



PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS
During the normal course of its business, the Company is a party to various debtor-creditor legal actions, disputes, claims, and litigation related to the conduct of its banking business. These include cases filed as a plaintiff in collection and foreclosure cases, and the enforcement of creditors’ rights in bankruptcy proceedings. Management does not expect that the resolution of these matters will have a material effect on the Company’s business, financial position, results of operations, or cash flows.
ITEM 1A. RISK FACTORS
For information regarding risk factors, please refer to Part I. Item 1A in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, as updated by the Company's periodic filings with the SEC. These risk factors have not changed materially as of September 30, 2024.


ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
(a)-(b) Not applicable
(c) There were no stock repurchases by the Company during the three-month period ending September 30, 2024.

59

ITEM 5. OTHER INFORMATION
Rule 10b5-1 Trading Plans

During the quarter ended September 30, 2024, none of the Company’s directors or executive officers adopted, modified or terminated any contract, instruction or written plan for the purchase or sale of Company securities that was intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) or any “non-Rule 10b5-1 trading arrangement.”

ITEM 6. EXHIBITS
101.INS
Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document
101.SCH
Inline XBRL Taxonomy Extension Schema Document
101.CAL
Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.LAB
Inline XBRL Taxonomy Extension Labels Linkbase Document
101.PRE
Inline XBRL Taxonomy Extension Presentation Linkbase Document
101.DEF
Inline XBRL Taxonomy Extension Definition Linkbase Document
104
The cover page for the Company's Quarterly Report on 10-Q for the quarter ended September 30, 2024 - formatted in Inline XBRL (included in Exhibit 101)

60

SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
NORTHRIM BANCORP, INC.
October 30, 2024By/s/ Michael G. Huston
Michael G. Huston
President, Chief Executive Officer
 and Chief Operating Officer
(Principal Executive Officer)

    
October 30, 2024By/s/ Jed W. Ballard
Jed W. Ballard
Executive Vice President, Chief Financial Officer
(Principal Financial and Accounting Officer)

61