Northrim Bancorp, Inc. (NASDAQ: NRIM) has reported strong financial results for the fourth quarter of 2024, with net income of $10.9 million, or $1.95 per diluted share. This represents a significant increase from the third quarter of 2024, during which the company reported net income of $8.8 million, or $1.57 per diluted share, and an even more substantial increase from the fourth quarter of the previous year, when net income was $6.6 million, or $1.19 per diluted share.
The company's full-year financial performance is also impressive, with net income for the year ended December 31, 2024, reaching $37.0 million, or $6.62 per diluted share. This reflects a 46% increase from the full year of 2023, during which net income was $25.4 million, or $4.49 per diluted share.
The company's net interest income in the fourth quarter of 2024 increased 7% to $30.8 million compared to $28.8 million in the third quarter of 2024, and a 15% increase compared to $26.7 million in the fourth quarter of 2023. The net interest margin on a tax equivalent basis ("NIMTE") was 4.47% for the fourth quarter of 2024, showing a 12-basis point increase from the third quarter of 2024 and a 35-basis point increase compared to the fourth quarter of 2023.
Northrim Bancorp also reported growth in its portfolio loans, which stood at $2.13 billion at December 31, 2024, representing a 6% increase from the preceding quarter and a 19% increase from a year ago. Additionally, total deposits reached $2.68 billion at December 31, 2024, up 2% from the preceding quarter and up 8% from $2.49 billion a year ago.
The company's financial statements indicate a healthy financial position, with total assets at December 31, 2024, exceeding $3 billion for the first time. The company's return on average assets ("ROAA") was 1.43%, and return on average equity ("ROAE") was 16.32% for the fourth quarter of 2024, reflecting strong performance in leveraging its equity.
Northrim Bancorp's financial results are underpinned by the broader economic trends in Alaska, where the company operates. The state's economic indicators, including growth in payroll jobs, construction, health care, and oil & gas sectors, have contributed to the positive performance of Northrim Bancorp.
As a result of these announcements, the company's shares have moved 2.4% on the market, and are now trading at a price of $82.09. For more information, read the company's full 8-K submission here.
