Northrim Bancorp Reports Q3 2026 Net Income Drop

By Hao Liu • Friday, October 16 01:47 • Permanent Link

Northrim Bancorp reported third-quarter 2026 net income of $14.4 million, or $0.63 per diluted share, down from $15.3 million, or $0.68 per share, in the second quarter and $27.1 million, or $1.20 per share, a year earlier.

Net interest income rose to $38.9 million from $37.1 million in the prior quarter and $35.3 million a year ago, an increase of 5% quarter over quarter and 10% year over year. Net interest margin on a tax-equivalent basis widened to 5.02% from 5.01% in the second quarter and 4.88% in the third quarter of 2025.

Pre-provision pre-tax net revenue climbed to $26.5 million from $21.9 million in the second quarter and $36.3 million a year earlier. The company said that represented a 21% increase from the prior quarter.

Total assets reached $3.58 billion at Sept. 30, 2026, up from $3.42 billion at June 30 and $3.31 billion a year ago. Portfolio loans were $2.40 billion, compared with $2.39 billion in the prior quarter and $2.22 billion a year earlier. Core loans, excluding consumer mortgages, rose to $2.16 billion from $2.00 billion a year ago.

Deposits increased to $3.05 billion from $2.92 billion in the second quarter and $2.91 billion a year ago. Non-interest-bearing demand deposits were $833.7 million, up 1% from the prior quarter but down 4% from a year earlier, and accounted for 27% of total deposits.

The average cost of interest-bearing deposits fell to 1.69% from 1.71% in the second quarter and 2.00% a year ago.

The efficiency ratio improved to 55.62% from 59.44% in the second quarter and 45.51% in the third quarter of 2025. Return on average assets was 1.65%, down from 1.84% in the prior quarter and 3.32% a year ago. Return on average equity was 15.96%, compared with 17.77% and 35.66% in the same periods.

Dividends per share increased to $0.17 from $0.16 in both the second quarter and the third quarter of 2025.

In specialty finance, average purchased receivables and loan balances rose to $164.3 million from $141.5 million in the second quarter and $127.8 million a year ago. Following these announcements, the company's shares moved -0.94%, and are now trading at a price of $24.11. If you want to know more, read the company's complete 8-K report here.

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