- Net income for Northrim BanCorp (NRIM, Financial) soared to $13.3 million in Q1 2025, marking a 62% year-over-year increase.
- Net interest margin improved to 4.61%, reflecting a 39 basis point rise from the previous year.
- Total deposits increased by 14%, reaching $2.78 billion.
Northrim BanCorp, Inc. (NRIM) has announced impressive financial results for the first quarter of 2025, showcasing significant profitability growth. The company's net income reached $13.3 million, or $2.38 per diluted share, indicating a substantial increase of 60.9% compared to $8.2 million in Q1 2024 and a 22% rise from $10.9 million in the previous quarter.
Key contributors to this robust performance include a rise in net interest income to $31.3 million, an 18% increase year-over-year. The net interest margin on a tax-equivalent basis (NIMTE) improved to 4.61%, up by 39 basis points from the previous year. This reflects Northrim's adept asset-liability management amid evolving interest rate environments.
Northrim also reported strong deposit growth, with total deposits climbing to $2.78 billion, a 14% year-over-year increase. Portfolio loans grew by 17% to $2.12 billion, while the average cost of interest-bearing deposits decreased to 2.01%, offering the bank a competitive advantage.
The acquisition of Sallyport Commercial Finance in October 2024 has already begun contributing to the company's revenue streams, particularly through increased purchased receivable income. This strategic move has bolstered Northrim's financial position, allowing it to deliver enhanced shareholder value.
In line with its strong earnings, Northrim increased its quarterly dividend to $0.64 per share, up from $0.62 in the previous quarter. This increase reflects management's confidence in the bank's continued financial health and growth prospects.
Overall, Northrim BanCorp's Q1 2025 financial results underscore the company's stability and strategic focus, positioning it well for future profitability in the evolving economic landscape.
