Northrim Bancorp Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Northrim Bancorp Inc. has submitted its 2023 annual report (10-K) detailing financial performance and operations for the year ended December 31, 2023.</b>

AI Summary

NORTHRIM BANCORP INC (NRIM) filed a Annual Report (10-K) with the SEC on March 8, 2024. Northrim Bancorp Inc. filed its 2023 Form 10-K on March 8, 2024. The filing covers the fiscal year ending December 31, 2023. The company is incorporated in Alaska (AK). Its Standard Industrial Classification is Savings Institution, Federally Chartered [6035]. The filing includes data for fiscal years 2020, 2021, 2022, and 2023.

Why It Matters

For investors and stakeholders tracking NORTHRIM BANCORP INC, this filing contains several important signals. This 10-K filing provides a comprehensive overview of Northrim Bancorp's financial health, operational performance, and strategic direction for the fiscal year 2023, crucial for investors and stakeholders to assess the company's standing. The detailed financial data and risk factors disclosed in this report are essential for understanding the company's performance in the context of the banking and savings institution industry, particularly in Alaska.

Risk Assessment

Risk Level: low — NORTHRIM BANCORP INC shows low risk based on this filing. The filing is a standard annual report (10-K) and does not contain immediate red flags or significant negative developments, indicating a routine disclosure.

Analyst Insight

Review the detailed financial statements and risk factors within the 10-K to understand Northrim Bancorp's performance and outlook for 2023.

Key Numbers

• 2023-12-31 — Fiscal Year End (Period of report)
• 2024-03-08 — Filing Date (Date of filing)
• 0001163370 — Accession Number (Unique identifier for the filing)

Key Players & Entities

• NORTHRIM BANCORP INC (company) — Filer name
• NRIM (company) — Ticker symbol
• 2023 (dollar_amount) — Fiscal year end
• 2024-03-08 (date) — Filing date
• AK (company) — State of incorporation
• 0001163370 (company) — Central Index Key

FAQ

Industry Context

Northrim Bancorp Inc. operates as a savings institution, federally chartered, within the financial services sector.

Regulatory Implications

As a federally chartered savings institution, Northrim Bancorp is subject to regulations from federal banking authorities.

What Investors Should Do

1. Analyze the financial statements for revenue, net income, and asset growth for FY 2023.
2. Review any disclosed risk factors related to the banking industry or Northrim's specific operations.
3. Compare key financial metrics from this 10-K to previous years to identify trends.

Key Dates

• 2024-03-08: Filing of 10-K — Submission of the annual report for the fiscal year 2023.
• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K.

Year-Over-Year Comparison

This filing is the 2023 annual report (10-K), providing updated financial and operational data compared to previous filings.

Key Financial Figures

• $1.00 — ction 12(g) of the Act: Common Stock, $1.00 par value The NASDAQ Stock Market, LLC
• $2.5 billion — nk in Alaska in terms of deposits, with $2.5 billion in total deposits and $2.8 billion in t
• $2.8 billion — with $2.5 billion in total deposits and $2.8 billion in total assets at December 31, 2023. N
• $465.4 million — of real estate loans). The Company has $465.4 million non-owner occupied commercial real esta
• $123.3 m — as of December 31, 2023 the Company had $123.3 million, or 7% of total portfolio loans,
• $100.4 m — tfolio loans, in the Healthcare sector; $100.4 million, or 6% of portfolio loans, in the
• $84.2 m — portfolio loans, in the Tourism sector; $84.2 million, or 5% in the Accommodations sect
• $75.0 m — on, or 5% in the Accommodations sector; $75.0 million, or 4% in the Fishing sector; $72
• $72.8 m — 0 million, or 4% in the Fishing sector; $72.8 million, or 4% in Retail loans; $63.4 mil
• $63.4 m — ; $72.8 million, or 4% in Retail loans; $63.4 million, or 4% of portfolio loans, in the

Filing Documents

• nrim-20231231.htm (10-K) — 4427KB
• exhibit1003profitshareplan.htm (EX-10.03) — 37KB
• exhibit1009supplementalexe.htm (EX-10.09) — 77KB
• exhibit211subsidiaries2023.htm (EX-21.1) — 4KB
• exhibit231consent2023.htm (EX-23.1) — 2KB
• exhibit241poa2023.htm (EX-24.1) — 33KB
• exhibit3112023.htm (EX-31.1) — 10KB
• exhibit3122023.htm (EX-31.2) — 10KB
• exhibit3212023.htm (EX-32.1) — 6KB
• exhibit3222023.htm (EX-32.2) — 6KB
• exhibit97northrimbancorpin.htm (EX-97) — 36KB
• nrim-20231231_g1.jpg (GRAPHIC) — 40KB
• 0001163370-24-000010.txt (&nbsp;) — 22069KB
• nrim-20231231.xsd (EX-101.SCH) — 115KB
• nrim-20231231_cal.xml (EX-101.CAL) — 191KB
• nrim-20231231_def.xml (EX-101.DEF) — 711KB
• nrim-20231231_lab.xml (EX-101.LAB) — 1329KB
• nrim-20231231_pre.xml (EX-101.PRE) — 1061KB
• nrim-20231231_htm.xml (XML) — 4478KB

Risk Factors

Item 1A. Risk Factors 14

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 31 Item 1C. C ybersecurity 32

Properties

Item 2. Properties 34

Legal Proceedings

Item 3. Legal Proceedings 35

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 35 Part II

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 36

[RESERVED]

Item 6. [RESERVED] 38

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 38

Quantitative and Qualitative Disclosures About Market Risk

Item 7A. Quantitative and Qualitative Disclosures About Market Risk 64

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data 68

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 124

Controls and Procedures

Item 9A. Controls and Procedures 124

Other Information

Item 9B. Other Information 124

Disclosures Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C. Disclosures Regarding Foreign Jurisdictions that Prevent Inspections 125 Part III

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance 126

Executive Compensation

Item 11. Executive Compensation 126

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 126

Certain Relationships and Related Transactions, and Director Independence

Item 13. Certain Relationships and Related Transactions, and Director Independence 126

Principal Account ant Fees and Services

Item 14. Principal Account ant Fees and Services 126 Part IV

Exhibits and Financial Statement Schedules

Item 15. Exhibits and Financial Statement Schedules 127 Index to Exhibits 127

Form 10-K Summary

Item 16. Form 10-K Summary 128

Signatures

Signatures 130 1 PART I Cautionary Note Regarding Forward Looking Statements This Annual Report on Form 10-K includes "forward-looking statements", within the meaning of the Private Securities Litigation Reform Act of 1995, 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 Northrim BanCorp Inc.'s style of banking, and the strength of the local economy in which we operate. All statements other than statements of historical fact, including statements regarding industry prospects, and future results of operations or financial position, made in this report are forward-looking. 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; 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, including, the continued availability of the Federal Reserve Bank's Bank Term Funding Program; potential further increa

BUSINESS

ITEM 1. BUSINESS In this document, please note that references to "we", "our", "us", or the "Company" mean Northrim BanCorp, Inc. and its subsidiaries, unless the context suggests otherwise. General We are a publicly traded bank holding company headquartered in Anchorage, Alaska. The Company's common stock trades on the Nasdaq Global Select Stock Market ("NASDAQ") under the symbol, "NRIM." The Company is regulated by the Board of Governors of the Federal Reserve System. We began banking operations in Anchorage in December 1990, and formed the Company as an Alaska corporation in connection with our reorganization into a holding company structure; that reorganization was completed effective December 31, 2001. The Company has grown to be the third largest commercial bank in Alaska in terms of deposits, with $2.5 billion in total deposits and $2.8 billion in total assets at December 31, 2023. Northrim Bank and Residential Mortgage are easily accessible to approximately 90% of the Alaska's population through our geographically dispersed 19 branches and 12 mortgage origination offices. 2 The Company has three direct wholly-owned subsidiaries: Northrim Bank (the "Bank"), a state chartered, full-service commercial bank headquartered in Anchorage, Alaska. The Bank is regulated by the Federal Deposit Insurance Corporation (the "FDIC") and the State of Alaska Department of Commerce, Community and Economic Development, Division of Banking and Securities. The Bank has 19 branch locations in Alaska; eight in Anchorage, one in Wasilla, two in Juneau, two in Fairbanks, one in Ketchikan, one in Sitka, one in Eagle River, one in Nome, one in Soldotna, and one in Kodiak. Additionally, we have a loan production office in Homer. We operate in Washington State through Northrim Funding Services ("NFS"), a factoring business that the Bank started in 2004. We offer a wide array of commercial and consumer loan and deposit products, investment products, and electronic banking services

View Full Filing

View this 10-K filing on SEC EDGAR