Email
Print
FeedNorthrim BanCorp Earnings Per Share Up 25% to $0.30 in 3Q09 From $0.24 in 3Q08
ANCHORAGE, Alaska, Oct. 21, 2009 (GLOBE NEWSWIRE) -- Northrim BanCorp,
Inc. (Nasdaq:NRIM) today reported that growth in its net interest
margin, lower provisions for loan losses, and larger contributions from
affiliates contributed to a 26% increase in profits for the third
quarter of 2009 as compared to the third quarter a year ago. Net income
attributable to Northrim BanCorp in the quarter ended September 30,
2009, increased to $1.9 million, or $0.30 per diluted share, from $1.6
million, or $0.24 per diluted share, in the third quarter of 2008.
Year-to-date, profits grew 13% to $5.8 million, or $0.90 per diluted
share, compared to $5.1 million, or $0.78 per diluted share, in the
first nine months of 2008.
Financial Highlights (at or for the periods ended September 30, 2009,
compared to September 30, 2008)
* Northrim remains well-capitalized with Tier 1 Capital/risk adjusted
assets 13.96% at September 30, 2009, up from 13.50% in the
immediate prior quarter and 12.81% a year ago. Northrim's total
tangible common equity to total tangible assets at September 30,
2009, was 10.32%, up from 9.42% a year ago. These ratios do not
reflect any government investment in Northrim as the company
elected not to participate in the Capital Purchase Program
sponsored by the U. S. Treasury in 2008.
* The $154 million investment portfolio, consisting primarily of
high quality, short term income producing investments, is managed
to provide a balance of yield and liquidity.
* The net interest margin (NIM) for the third quarter improved to
5.38% up from 5.10% a year ago. Year-to-date, NIM expanded to
5.36% from 5.31% for the first nine months of 2008.
* Book value per share grew 5% to $17.28 and tangible book value
grew 6% to $15.85 per share.
* Contributions from affiliates boosted other operating income for
the first nine months of 2009 by 25% compared to a year ago.
* Nonperforming assets were $39.0 million, or 3.95% of total assets
at September 30, 2009, compared to $31.6 million, or 3.24% of total
assets at June 30, 2009, and $33.0 million, or 3.27% of assets a
year ago.
* The allowance for loan losses totaled 2.00% of gross loans at
September 30, 2009, compared to 1.93% at June 30, 2009 and 1.94% a
year ago.
* High cost long term borrowings were reduced by more than half as
Northrim prepaid $9.9 million of Federal Home Loan Bank (FHLB)
advances with an average remaining life of over 8 years during the
quarter ended September 30, 2009. The resulting $718,000
prepayment penalty reduced 3Q09 earnings per share by $0.07 and is
expected to save as much as $0.05 per share in 2010 and additional
amounts in future years.
Capital Adequacy and Liquidity
"We continue to build tangible common equity through profitable
operations," said Marc Langland, Chairman, President and CEO of
Northrim BanCorp, Inc. "Our capital ratios exceed the regulatory
requirements for well-capitalized institutions, and we are happy to be
able to meet these requirements without any investments from the
federal government. We continue to maintain high levels of liquidity
with 23% of our assets in liquid investments."
Alaska Economic Update
Alaska's economy continues to be healthier than the nation as a whole
in the areas of employment, housing and state revenues. Alaska
employment fell slightly in September, according to the State of Alaska
Department of Labor, dropping 0.6% or 2,000 jobs to an estimated
335,000, primarily due to a typical seasonal decline in seafood
processing employment. Based on statistics released by the State of
Alaska Department of Labor, employment in construction, accommodations,
retail trade, and restaurants are all down from the September 2008
levels, with job losses in these industries partially offset by
over-the-year gains in health care and government jobs. On a
year-to-date basis through September of 2009, Alaska's total employment
level remains unchanged as compared to the same period in 2008.
According to studies conducted by the University of Alaska Institute of
Social and Economic Research, natural resources, and oil and gas in
particular, continue to provide the majority of Alaska state revenues
and indirectly generate more than one-third of the jobs in the state.
The state has current reserves of $12 billion and a Permanent Fund of
$34 billion based upon information provided by the State of Alaska. The
Permanent Fund distributed a dividend of $1,305 to every eligible
Alaskan this month, which totaled approximately $850 million and
provides a source of added liquidity to the state. These yearly
dividends contribute to the overall strong household income in the
state.
"Our housing markets also continue to perform better than the rest of
the country with stable values and strong affordability," noted Chris
Knudson, Chief Operating Officer. For more information on the Alaska
economy, visit www.northrim.com and click on the "About Alaska" tab.
Asset Quality and Balance Sheet Review
Northrim's total assets increased to $985.7 million at September 30,
2009, from $975.7 million at June 30, 2009. Total assets at the end of
the third quarter of 2009 decreased from $1.01 billion a year ago,
primarily due to a $32 million decline in construction loans.
The loan portfolio contracted 4% to $674.2 million at the end of
September 2009 from $705.2 million a year ago, with a continued decline
in construction and commercial loans partially offset by growth in
commercial real estate loans. The geographic distribution of the loan
portfolio continues to show about 85% of the portfolio consists of
loans made to customers located in the greater Anchorage area and 15%
in the Fairbanks area.
The loan portfolio remains diversified with commercial loans accounting
for 37% of the portfolio and commercial real estate accounting for 44%
of the portfolio at September 30, 2009. Construction and land
development loans, which account for 12% of the loan portfolio at
September 30, 2009, are down 28% to $82.2 million from $113.8 million a
year ago, reflecting the maturing of projects funded in past years and
the reduction in new projects starts in the past two years.
While nonperforming assets at September 30, 2009, increased by $6
million year-over-year and $7.4 million from the prior quarter, the
risk profile of the portfolio improved as a result of the following
developments:
* The projects in the construction and development category, both
loans to builders and foreclosed developments in other real estate
owned (OREO), are complete and on the market.
* Sales of OREO continued during the quarter ending September 30,
2009, with 15 properties sold for $2.6 million, generating a
$200,000 gain over current book value. Year-to-date through
September 30, 2009, 40 OREO properties sold for $7.5 million and
generated a $424,000 gain.
* The increase in nonaccrual loans during the third quarter ending
September 30, 2009, reflects the addition of a $9.0 million
condominium conversion project in Anchorage. Of the 68 original
units, 15 condos have been sold and 48 are rented, providing cash
flow for the project.
* Restructured loans of $3.8 million represent the balance of a
troubled debt restructuring of a $4.6 million loan. The borrower
is current with payments and the loan is at current market rates.
* Net charge-offs in the third quarter ending September 30, 2009
totaled $1.1 million, or 0.16% of average loans, down from
$2.3 million, or 0.33% of average loans in the second quarter
ending June 30, 2009 and $1.9 million, or 0.26% of average loans
in the third quarter a year ago.
* Loans measured for impairment decreased to $52.6 million at
September 30, 2009, compared to $67.1 million at June 30, 2009 and
$87 million in the third quarter a year ago.
"We continue to move impaired loans through the collections process,
and we are confident this proactive approach of our team is working to
reduce the costs and risks in this portfolio," said Joe Beedle,
President of Northrim Bank. "Gains from the OREO portfolio continue to
support the valuation of our total loan portfolio, and the level of
write downs and net charge-offs in the portfolio is moving in the right
direction."
At the end of the third quarter of 2009, nonperforming loans totaled
$28.9 million, or 4.28% of total portfolio loans, compared to $20.0
million, or 2.92% of total portfolio loans at June 30, 2009, and $20.7
million, or 2.94% of total portfolio loans a year ago. "The increase in
nonperforming loans in the third quarter of this year reflects
management's decision to deal with its problem assets by taking steps
to acquire the underlying collateral of loans when borrowers fail to
perform," said Beedle.
Nonperforming assets consist of nonaccrual loans, accruing loans 90
days or more past due, restructured loans, and OREO. Total
nonperforming assets were $39.0 million, or 3.95% of total assets at
September 30, 2009, compared to $31.6 million, or 3.24% of total assets
at June 30, 2009, and $33.0 million, or 3.27% of total assets a year
ago. Approximately 63% of the nonperforming assets at September 30,
2009, were for construction and land development projects, 26% were for
commercial loans and the remainder was for commercial real estate
loans.
The allowance for loan losses was $13.5 million, or 2.00% of total
loans at the end of the third quarter of 2009, compared to $13.7
million, or 1.94% of total loans a year ago. Net charge-offs (NCOs) in
the third quarter of 2009 were $1.1 million, or 0.16% of average loans,
compared to $1.9 million, or 0.26% of average loans in the third
quarter of 2008. Year-to-date NCOs totaled $4.3 million or 0.83% of
average loans annualized, compared to $3.8 million or 0.71% of average
loans annualized in the first nine months of 2008.
Investment securities totaled $154.3 million at the end of the third
quarter of 2009, up from $116.3 million a year ago. At September 30,
2009, the portfolio was comprised of 70% U.S. Agency securities, 17%
securities of Alaskan municipalities, utilities, or state agencies, 12%
corporate bonds, and 1%, or $2 million of stock in the Federal Home
Loan Bank of Seattle. "Our investment securities portfolio consists of
high-quality, short-term income-producing investments, which support
our liquidity requirements," said Joe Schierhorn, Chief Financial
Officer.
Total deposits increased to $837.1 million at September 30, 2009,
compared to $819.1 million from the immediate prior quarter and
decreased from $854.5 million at September 30, 2008.
Noninterest-bearing demand deposits at September 30, 2009, increased 9%
and account for 32% of total deposits. Interest bearing demand deposits
at September 30, 2009 grew 10% year-over-year reflecting customer
preferences for flexibility of demand accounts over both the Alaska CD
and money market accounts. The Alaska CD (a flexible certificate of
deposit program) and money market balances fell 6% and 24%
respectively, from year ago levels. Time deposit balances at September
30, 2009 fell 4% and savings account balances increased 5% compared to
a year ago. At the end of the third quarter of 2009, demand deposits
accounted for 32% of total deposits, interest-bearing demand accounts
were 14%, savings deposits were 7%, money market balances accounted for
15%, the Alaska CD accounted for 13% and time certificates were 19% of
total deposits. "With no brokered deposits or 'hot money' our deposit
base provides a very stable and cost effective funding source," said
Beedle.
Shareholders' equity increased 6% to $110.0 million, or $17.28 per
share, at September 30, 2009, compared to $103.6 million, or $16.40 per
share, at September 30, 2008. Tangible book value per share was $15.85
at September 30, 2009, compared to $14.91 a year earlier. Northrim
remains well-capitalized with Tier 1 Capital to Risk Adjusted Assets of
13.96% at September 30, 2009.
Review of Operations
Reflecting growth in contributions from affiliates and an increase in
net interest income, revenue (net interest income plus other operating
income) grew 6% year-over-year to $15.1 million in the third quarter of
2009, compared to $14.3 million in the third quarter a year ago.
Year-to-date revenue grew 4% to $45.2 million from $43.2 million in the
first nine months of 2008.
Third quarter 2009 net interest income, before the provision for loan
losses, grew 6% year-over-year to $11.7 million from $11.1 million in
the third quarter of 2008. In the first nine months of 2009, net
interest income before provision for loan losses was down slightly to
$34.6 million from $34.8 million in the first nine months of 2008.
Northrim's net interest margin (net interest income as a percentage of
average earning assets on a tax equivalent basis) was 5.38% in the
third quarter of 2009, compared to 5.10% in the third quarter a year
ago. For the first nine months of 2009, Northrim's net interest margin
was 5.36% compared to 5.31% in the like period a year ago. "Our net
interest margin continues to be one of the highest in the country,
because of our strong core deposit base and solid demand for loans from
our business community," said Beedle. Net recoveries of interest on
nonperforming assets contributed 1 basis point to the net interest
margin in the third quarter of 2009, compared to net reversals of
interest that reduced the net interest margin in the third quarter of
2008 by 7 basis points. Net reversals of interest on nonperforming
assets reduced the net interest margin for the nine month period ending
September 30, 2009 by 1 basis point, compared to a 7 basis point
reduction for the nine month period ending September 30, 2008.
The loan loss provision in the third quarter of 2009 totaled $1.4
million, compared to $2.0 million in the third quarter a year ago.
Year-to-date, the provision for loan losses totaled $4.9 million
compared to $5.7 million in the first nine months of 2008.
Total other operating income increased 5% for the third quarter of 2009
and 25% year-to-date compared to the same periods a year ago due to
contributions from affiliated financial services offerings,
particularly from earnings of Northrim's mortgage and employee benefits
affiliates. "We have consciously built a suite of complementary
financial services to better serve our customers and attract new
business to the bank," said Langland. "We offer employee benefit
insurance products, factoring, mortgage loans and wealth management
through a division of the bank and several affiliated businesses in
which we have an ownership position. We believe this business model is
scalable and contributes nicely to the profitability of our core
operations."
Other operating income grew to $3.4 million in the third quarter of
2009 compared to $3.2 million in the third quarter a year ago.
Year-to-date, other operating income grew to $10.6 million from $8.5
million for the first nine months of 2008. Deposit account service
charge income was down 6% at $791,000 in the third quarter of 2009
compared to $841,000 for the third quarter a year ago due to fewer
overdraft transactions. For the first nine months of the year, service
charges on deposit accounts were down 12% to $2.3 million from $2.6
million in the first nine months of 2008.
Purchased receivable income fell 33% to $474,000 in the third quarter
of 2009 from $712,000 in the third quarter a year ago. These balances
decreased primarily because two purchased receivable customers
restructured their businesses which allowed them to pay off their
purchased receivable balances at the end of the first quarter and
during the third quarter of 2009. Employee benefit plan income grew to
$469,000 for the third quarter of 2009 compared to $398,000 for the
third quarter of 2008 due to the additional customers utilizing this
product line.
Income from Northrim's mortgage affiliate was $385,000 during the third
quarter ending September 30, 2009, a decline from income of $764,000 in
the second quarter of this year and up from $210,000 in the third
quarter a year ago. While income from Northrim's mortgage affiliate
increased on a year-over-year basis due to continuing refinance demand,
this income was down in the third quarter of 2009 as compared to the
second quarter due to lower refinance volume on a linked quarter basis.
Operating expenses in the third quarter of 2009 increased 3% on a
linked quarter basis and 10% year-over-year. Reflecting the one-time
$718,000 prepayment penalty on FHLB advances, third quarter 2009
overhead expenses increased to $10.9 million compared to $10.5 million
in the second quarter and $9.9 million in the third quarter a year ago.
Year-to-date, noninterest expenses increased 7% to $31.9 million from
$29.8 million in the first nine months of 2008.
The efficiency ratio during the third quarter of 2009 was 71.41%,
compared to 68.22% in the preceding quarter and 68.58% in the third
quarter a year ago. The efficiency ratio, calculated by dividing
noninterest expense, excluding intangible asset amortization expense,
by net interest income and noninterest income, measures overhead costs
as a percentage of total revenues.
About Northrim BanCorp
Northrim BanCorp, Inc. is the parent company of Northrim Bank, a
commercial bank that provides personal and business banking services
through locations in Anchorage, Eagle River, Wasilla, and Fairbanks,
Alaska, and an asset based lending division in Washington. The bank
differentiates itself with a "Customer First Service" philosophy.
Affiliated companies include Elliott Cove Capital Management, LLC;
Residential Mortgage, LLC; Northrim Benefits Group, LLC; and Pacific
Wealth Advisors, LLC. In June 2009, Northrim Bancorp was added to the
Russell 2000 Index, a subset of the Russell 3000 Index. Both indices
are widely used by professional money managers as benchmarks for
investment strategies.
The Northrim BanCorp, Inc. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=3818
Income Statement
----------------
(Dollars in thousands, except per share data)
(Unaudited)
Three Months Ending
--------------------------------------------
Three One
Month Year
Sept. 30, June 30, % Sept. 30, %
2009 2009 Change 2008 Change
--------------------------------------------
Interest Income:
Interest and fees
on loans $12,218 $12,396 -1% $13,189 -7%
Interest on
portfolio
investments 1,155 1,043 11% 1,154 0%
Interest on
overnight
investments 31 16 94% 264 -88%
--------------------------------------------
Total interest
income 13,404 $13,455 0% 14,607 -8%
Interest Expense:
Interest expense
on deposits 1,351 1,423 -5% 2,947 -54%
Interest expense
on borrowings 311 366 -15% 564 -45%
--------------------------------------------
Total interest
expense 1,662 1,789 -7% 3,511 -53%
--------------------------------------------
Net interest
income 11,742 11,666 1% 11,096 6%
Provision for loan
losses 1,374 2,117 -35% 2,000 -31%
--------------------------------------------
Net interest
income after
provision for
loan losses 10,368 9,549 9% 9,096 14%
Other Operating
Income:
Service charges
on deposit
accounts 791 775 2% 841 -6%
Purchased
receivable
income 474 474 0% 712 -33%
Employee
benefit plan
income 469 447 5% 398 18%
Equity in earnings
from mortgage
affiliate 385 764 -50% 210 83%
Other income 1,241 1,190 4% 1,041 19%
--------------------------------------------
Total other
operating
income 3,360 3,650 -8% 3,202 5%
Other Operating
Expense:
Salaries and
other personnel
expense 5,730 5,708 0% 5,135 12%
Occupancy, net 977 897 9% 875 12%
Equipment expense 286 297 -4% 316 -9%
Insurance expense 502 959 -48% 491 2%
OREO expense,
including
impairment 304 448 -32% 395 -23%
Professional and
outside services 374 309 21% 411 -9%
Marketing expense 317 316 0% 391 -19%
Prepayment penalty
on FHLB advance
repayment 718 -- NA -- NA
Intangible
asset
amortization
expense 82 83 -1% 89 -8%
Other expense 1,577 1,515 4% 1,792 -12%
--------------------------------------------
Total other
operating
expense 10,867 10,532 3% 9,895 10%
Income before
income taxes 2,861 2,667 7% 2,403 19%
--------------------------------------------
Provision for
income taxes 810 681 19% 751 8%
--------------------------------------------
Net income 2,051 1,986 3% 1,652 24%
--------------------------------------------
Less: Net income
attributable
to the non-
controlling
interest 102 109 -6% 102 0%
--------------------------------------------
Net income
attributable
to Northrim
BanCorp $1,949 $1,877 4% $1,550 26%
--------------------------------------------
Basic EPS $0.31 $0.29 7% $0.24 29%
Diluted EPS $0.30 $0.29 3% $0.24 25%
Average basic
shares 6,348,519 6,396,341 -1% 6,351,210 0%
Average
diluted
shares 6,422,262 6,402,502 0% 6,539,295 -2%
Income Statement
----------------
(Dollars in thousands, except per share data)
Nine Months Ended September 30:
-------------------------------
(Unaudited) One Year
2009 2008 % Change
-------------------------------
Interest Income:
Interest and fees on loans $ 36,672 $ 40,900 -10%
Interest on portfolio investments 3,352 4,148 -19%
Interest on overnight investments 122 804 -85%
-------------------------------
Total interest income 40,146 45,852 -12%
Interest Expense:
Interest expense on deposits 4,495 9,824 -54%
Interest expense on borrowings 1,067 1,271 -16%
-------------------------------
Total interest expense 5,562 11,095 -50%
-------------------------------
Net interest income 34,584 34,757 0%
Provision for loan losses 4,866 5,699 -15%
-------------------------------
Net interest income after
provision for loan losses 29,718 29,058 2%
Other Operating Income:
Service charges on deposit accounts 2,269 2,591 -12%
Purchased receivable income 1,706 1,763 -3%
Employee benefit plan income 1,282 1,057 21%
Equity in earnings from mortgage
affiliate 1,997 516 287%
Other income 3,338 2,548 31%
-------------------------------
Total other operating income 10,592 8,475 25%
Other Operating Expense:
Salaries and other personnel
expense 16,889 15,978 6%
Occupancy, net 2,789 2,538 10%
Equipment expense 887 903 -2%
Insurance Expense 2,266 1,085 109%
OREO expense, including impairment 1,148 1,530 -25%
Professional and outside services 1,061 1,143 -7%
Marketing expense 951 1,172 -19%
Prepayment penalty on FHLB advance
repayment 718 -- NA
Intangible asset amortization
expense 247 265 -7%
Other expense 4,963 5,164 -4%
-------------------------------
Total other operating expense 31,919 29,778 7%
Income before income taxes 8,391 7,755 8%
-------------------------------
Provision for income taxes 2,318 2,347 -1%
-------------------------------
Net income 6,073 5,408 12%
-------------------------------
Less: Net income attributable
to the noncontrolling
interest 292 271 8%
-------------------------------
Net income attributable
to Northrim BanCorp $ 5,781 $ 5,137 13%
-------------------------------
Basic EPS $0.91 $0.81 12%
Diluted EPS $0.90 $0.78 15%
Average basic shares 6,338,757 6,350,166 0%
Average diluted shares 6,406,117 6,545,427 -2%
Balance Sheet
-------------
(Dollars in thousands, except per share data)
Three One
Month Year
Sept. 30, June 30, % Sept. 30, %
2009 2009 Change 2008 Change
-------------------------------------------
(Unaudited)(Unaudited) (Unaudited)
Assets:
Cash and due from banks $ 24,979 $ 23,509 6% $ 31,809 -21%
Overnight investments 51,120 43,142 18% 63,266 -19%
Portfolio investments 154,272 136,697 13% 116,319 33%
Loans:
Commercial loans 249,171 266,227 -6% 277,782 -10%
Commercial real
estate 298,828 294,249 2% 263,812 13%
Construction loans 82,160 79,464 3% 113,842 -28%
Consumer loans 46,047 47,266 -3% 51,978 -11%
Other loans 691 248 179% 481 44%
Unearned loan fees (2,706) (2,557) 6% (2,656) 2%
-------------------------------------------
Total portfolio
loans 674,191 684,897 -2% 705,239 -4%
Real estate loans
for sale -- 3,426 -1% -- NA
-------------------------------------------
Total loans 674,191 688,323 -2% 705,239 -4%
Allowance for loan
losses (13,452) (13,187) 2% (13,656) -1%
-------------------------------------------
Net loans 660,739 675,136 -2% 691,583 -4%
Purchased
receivables, net 8,202 9,822 -16% 15,905 -48%
Premises and
equipment, net 28,889 29,171 -1% 30,108 -4%
Goodwill and
intangible assets 9,072 9,156 -1% 9,402 -4%
Other real estate
owned 10,118 11,576 -13% 12,261 -17%
Other assets 38,301 37,484 2% 38,638 -1%
-------------------------------------------
Total assets $985,692 $975,693 1% $1,009,291 -2%
===========================================
Liabilities:
Demand deposits $267,291 $253,118 6% $244,559 9%
Interest-bearing
demand 115,337 112,385 3% 104,521 10%
Savings deposits 62,761 61,331 2% 59,723 5%
Alaska CDs 108,057 104,906 3% 115,010 -6%
Money market deposits 123,239 119,944 3% 162,820 -24%
Time deposits 160,423 167,457 -4% 167,827 -4%
-------------------------------------------
Total deposits 837,108 819,141 2% 854,460 -2%
Borrowings 10,739 20,858 -49% 23,634 -55%
Junior subordinated
debentures 18,558 18,558 0% 18,558 0%
Other liabilities 9,356 9,089 3% 9,004 4%
-------------------------------------------
Total liabilities 875,761 867,646 1% 905,656 -3%
Shareholder's Equity:
Northrim BanCorp
shareholders' equity 109,900 108,015 2% 103,591 6%
-------------------------------------------
Noncontrolling
interest 31 32 -3% 44 -30%
-------------------------------------------
Total shareholders'
equity 109,931 108,047 2% 103,635 6%
-------------------------------------------
Total liabilities
and equity $985,692 $975,693 1% $1,009,291 -2%
===========================================
Financial Ratios and Other Data
-------------------------------
(Dollars in thousands, except per share data)
(Unaudited)
Sept. 30, June 30, Sept. 30,
2009 2009 2008
-------------------------------
Asset Quality:
Nonaccrual loans $ 22,432 $ 18,111 $ 15,747
Loans 90 days past due 2,625 1,893 4,953
Restructured loans 3,800 -- --
-------------------------------
Total nonperforming loans 28,857 20,004 20,700
Other real estate owned 10,118 11,576 12,261
-------------------------------
Total nonperforming assets $ 38,975 $ 31,580 $ 32,961
-------------------------------
Nonperforming loans / portfolio
loans 4.28% 2.92% 2.94%
Nonperforming assets / assets 3.95% 3.24% 3.27%
Allowance for loan losses /
portfolio loans 2.00% 1.93% 1.94%
Allowance / nonperforming loans 46.62% 65.92% 65.97%
Net Loan charge-offs for the
quarter $ 1,109 $ 2,295 $ 1,863
Net Loan charge-offs year-to-date $ 4,314 $ 3,205 $ 3,778
Net loan charge-offs for the
quarter / average loans, quarter 0.16% 0.33% 0.26%
Net loan charge-offs year-to-date
/ average loans, annualized 0.83% 0.91% 0.71%
Capital Data (At quarter end):
Book value per share $ 17.28 $ 17.04 $ 16.40
Tangible book value per share $ 15.85 $ 15.60 $ 14.91
Tangible Common Equity/Tangible
Assets(1) 10.32% 10.23% 9.42%
Tier 1 / Risk Adjusted Assets 13.96% 13.50% 12.81%
Total Capital / Risk Adjusted
Assets 15.21% 14.76% 14.06%
Tier 1 /Average Assets 12.29% 12.21% 11.46%
Shares outstanding 6,359,650 6,338,138 6,315,109
Unrealized gain (loss) on AFS
securities, net of income taxes $ 1,727 $ 1,406 ($121)
Profitability Ratios (For the
quarter):
Net interest margin (tax
equivalent) 5.38% 5.48% 5.10%
Efficiency ratio(2) 71.41% 68.22% 68.58%
Return on average assets 0.79% 0.78% 0.62%
Return on average equity 7.05% 6.96% 5.87%
Profitability Ratios (Year-to-date):
Net interest margin (tax
equivalent) 5.36% 5.34% 5.31%
Efficiency ratio(2) 70.11% 69.45% 68.27%
Return on average assets 0.79% 0.79% 0.70%
Return on average equity 7.15% 7.20% 6.61%
(1) Tangible common equity to tangible assets is a non-GAAP ratio that
represents total equity less goodwill and intangible assets divided
by total assets less goodwill and intangible assets.
(2) The efficiency ratio is a non-GAAP ratio that is calculated by
dividing noninterest expense, exclusive of intangible asset
amortization, by the sum of net interest income and noninterest
income.
Average Balances
----------------
(Dollars in thousands, except per share data)
(Unaudited)
Three One
Month Year
Sept. 30, June 30, % Sept. 30, %
2009 2009 Change 2008 Change
----------------------------------------
Average Quarter Balances
Total Loans $674,872 $698,242 -3% $706,661 -4%
Total earning assets 868,459 860,161 1% 872,470 0%
Total assets 972,837 965,478 1% 988,274 -2%
Noninterest-bearing
deposits 247,647 243,299 2% 224,290 10%
Interest-bearing deposits 568,754 566,712 0% 592,469 -4%
Total deposits 816,401 810,011 1% 816,759 0%
Shareholders' equity 109,695 108,247 1% 105,115 4%
Average Year-to-date
Balances - unaudited
Loans $692,788 $701,895 -1% $705,913 -2%
Total earning assets 868,507 868,532 0% 881,065 -1%
Total assets 976,073 977,717 0% 985,848 -1%
Noninterest-bearing
deposits 233,261 225,948 3% 207,551 12%
Interest-bearing deposits 588,105 597,941 -2% 623,600 -6%
Total deposits 821,366 823,889 0% 831,151 -1%
Shareholders' equity 108,157 107,375 1% 103,822 4%
www.northrim.com
Sources include the
http://www.iser.uaa.alaska.edu/presentations/LookingAheadAKEconomy.pdf
and the State of Alaska Department of Labor.
This release may contain "forward-looking statements" that are subject
to risks and uncertainties. Readers should not place undue reliance on
forward-looking statements, which reflect management's views only as of
the date hereof. All statements, other than statements of historical
fact, regarding our financial position, business strategy and
management's plans and objectives for future operations are
forward-looking statements. When used in this report, the words
"anticipate," "believe," "estimate," "expect," and "intend" and words
or phrases of similar meaning, as they relate to Northrim or
management, are intended to help identify forward-looking statements
within the meaning of the Private Securities Litigation Reform Act of
1995. Although we believe that management's expectations as reflected
in forward-looking statements are reasonable, we cannot assure readers
that those expectations will prove to be correct. 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 our ability to maintain or expand our
market share or net interest margins, and to implement our marketing
and growth strategies. Further, actual results may be affected by our
ability to compete 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 as those
factors relate to our cost of funds and return on assets. In addition,
there are risks inherent in the banking industry relating to
collectibility 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 our other filings
with the SEC. 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.
More Latest News »
