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Here are 1-3 brief analogies to describe Northrim BanCorp (NRIM):

• Alaska's U.S. Bancorp.
• The Alaska Airlines of banking.

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• Deposit Products: Offers various checking, savings, money market, and certificate of deposit accounts for individuals and businesses.
• Commercial Loans: Provides loans and lines of credit to businesses for working capital, equipment financing, commercial real estate, and other business expansion needs.
• Residential Mortgage Loans: Originates and services loans for the purchase or refinance of residential properties.
• Consumer Loans: Offers personal loans, auto loans, and other installment and revolving credit products to individual customers.
• Treasury Management Services: Delivers a suite of cash management solutions including payroll services, remote deposit capture, and wire transfers for business clients.
• Wealth Management & Trust Services: Provides financial planning, investment management, and trust administration services for individuals and institutions.

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Northrim BanCorp (NRIM), a bank holding company operating primarily through its subsidiary Northrim Bank in Alaska, serves a diverse customer base rather than a few major corporate customers. Its services are primarily offered to individuals and businesses within its operating region.

The company primarily serves the following categories of customers:

1. Individuals and Consumers: This category includes residents seeking personal banking services such as checking accounts, savings accounts, certificates of deposit, mortgages, home equity loans, auto loans, and various wealth management and trust services.
2. Businesses (Small to Medium-sized Enterprises - SMEs): Northrim BanCorp provides a full range of commercial banking services to local businesses across various industries (e.g., retail, services, fishing, oil & gas support, tourism). These services include commercial loans, lines of credit, treasury management solutions, and business checking and savings accounts.
3. Commercial Real Estate Developers and Investors: This customer segment includes individuals and companies involved in the acquisition, development, construction, and investment of commercial real estate properties in Alaska, utilizing the bank's specialized real estate lending products and services.

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Fiserv, Inc. (FI)

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Michael G. Huston, President, Chief Executive Officer & Chief Operating Officer

Michael G. Huston was appointed President, Chief Executive Officer, and Chief Operating Officer of Northrim BanCorp, Inc., and President and Chief Executive Officer of Northrim Bank, effective April 6, 2024. He will also succeed Joseph M. Schierhorn as Chairman of the Board of Northrim Bank and the Company starting January 1, 2026. He joined Northrim Bank in May 2017 as Executive Vice President and Chief Lending Officer and was promoted to President and Chief Lending Officer in 2022. Before joining Northrim Bank, Mr. Huston served as Executive Vice President and Chief Banking Officer at First Interstate BancSystem for 25 years. He holds a Bachelor of Science degree in Finance from Arizona State University, graduating Magna Cum Laude, and is a graduate of the Pacific Coast Banking School. Mr. Huston is the immediate past chair of the Anchorage Economic Development Corporation (AEDC) and is on the United Way of Anchorage board.

Jed W. Ballard, Executive Vice President, Chief Financial Officer

Jed W. Ballard serves as Executive Vice President and Chief Financial Officer for both Northrim BanCorp and Northrim Bank. He joined the Company at the beginning of 2018. Prior to Northrim, Mr. Ballard spent over sixteen years with KPMG, an international public accounting firm, where his last role was Senior Audit Manager. He earned a Bachelor of Business Administration with a major in Accounting from the University of Alaska Fairbanks.

Joseph M. Schierhorn, Chairman of the Board

Joseph M. Schierhorn is the Chairman of the Board of Northrim BanCorp. He is a charter officer of Northrim Bank, starting in 1990 as Vice President, Commercial Loan Officer and Regulatory Compliance Manager. Throughout his career at Northrim, he has held positions including Chief Financial Officer, Chief Operating Officer, and President and Chief Executive Officer, becoming Chairman in 2018. His professional career in Alaska spans over 40 years. He also served as Lead Director and Audit Committee Chair on the board of Pacific Wealth Advisors, LLC and as Director for Pacific Portfolio Trust Co. since 2017. Mr. Schierhorn was inducted into the Alaska Business Hall of Fame in 2025.

Amber Zins, Executive Vice President, Chief Operating Officer

Amber Zins is the Executive Vice President and Chief Operating Officer of Northrim Bank. She joined Northrim Bank in 2008 as the internal audit manager and was promoted to Executive Vice President, Chief Operating Officer in 2022, after previously serving as Executive Vice President, Chief Administrative Officer. Ms. Zins holds a Bachelor of Business Administration in Accounting from the University of Alaska Fairbanks and is a Certified Public Accountant. She is attending the Pacific Coast Banking School and has volunteered with United Way of Anchorage, and served as an adjunct professor at the University of Alaska Anchorage for 10 years.

Mark Edwards, Executive Vice President, Chief Credit Officer and Bank Economist

Mark Edwards serves as Executive Vice President, Chief Credit Officer and Bank Economist of Northrim Bank. He started his career at Northrim Bank in 2007 as a Commercial Loan Officer and Bank Economist. He was promoted to Senior Vice President, Commercial Loan Unit Manager and Bank Economist in 2014, and then to Executive Vice President, Chief Credit Officer and Bank Economist in 2019. Mr. Edwards holds a degree in Economics from the University of Virginia and a Master of International Management degree from the Thunderbird School of Global Management.

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1. Interest Rate Risk: Northrim BanCorp's financial performance is highly susceptible to changes in interest rates. Factors beyond the company's control, such as global, domestic, and local economic conditions and the policies of governmental and regulatory agencies, particularly the Federal Reserve Board (FRB), can significantly influence interest rates. Fluctuations in these rates can adversely affect the company's net interest income, the value of its assets, deposit levels, and loan demand. For instance, the FRB's actions in 2022 and 2023 to raise the federal funds rate eleven times, citing inflation and geopolitical instability, increase the risk of an economic recession, which would negatively impact Northrim's asset quality, deposit levels, loan demand, and overall results of operations.
2. Credit Risk and Loan Collectability: As a banking institution, Northrim BanCorp faces inherent risks related to the collectability of its loans. An inability of a significant number of borrowers to repay their loans in accordance with terms would materially impact the company's operations. This risk is amplified by the fact that a substantial portion of its loans are real estate-related, making the company vulnerable to decreases in real estate values, particularly in its operating areas. The company observed an increase in nonperforming loans and adversely classified loans in 2024, signaling a rise in credit risk.
3. Economic Conditions in Alaska: Northrim BanCorp's operations and financial results are heavily dependent on the general health and changes within the Alaska economy, as well as broader local, regional, and national economic trends. Any contraction or downturn in economic activity in Alaska, or the broader U.S. economy, could negatively affect the company's asset quality, deposit base, and demand for loans, thereby impacting its earnings.

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• Commercial Banking: The addressable market size for the Commercial Banking industry in Alaska is $1.0 billion in 2025.
• Home Mortgage Lending: The addressable market for mortgage loan applications in Alaska was $5,225,010,000 in 2023.
• Personal Banking (Checking, Savings, Consumer Loans): null
• Wealth Management/Investment Services: null
• Specialty Finance (Asset-Based Lending, Factoring): null

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Here are 3-5 expected drivers of future revenue growth for Northrim BanCorp (NRIM) over the next 2-3 years:

1. Loan Growth and Market Share Expansion: Northrim BanCorp anticipates continued robust loan growth, driven by efforts to attract new customers and deepen existing relationships within Alaska. The company has seen significant increases in portfolio loans, with an 18% increase year-over-year in Q1 2024 and 11% year-over-year in Q3 2025. This growth is expected to be sustained through expanded customer relationships and increased market share in various lending areas, including commercial and consumer loans.
2. Expansion into New Markets and Services: A key driver is Northrim's strategic expansion, both geographically and in product offerings. The acquisition of Sallyport Commercial Finance, completed in October 2024, diversifies revenue streams by adding purchased receivable factoring and asset-based lending services across the United States, Canada, and the United Kingdom. Additionally, Northrim's Residential Mortgage subsidiary has expanded operations into new markets such as Arizona, Colorado, and the Pacific Northwest, aiming to increase loan volume. The company is also developing a Renewable Energy Financing Group and is actively involved in Commercial Property Assessed Clean Energy (C-PACE) programs in Alaskan communities.
3. Net Interest Margin (NIM) Improvement and Stability: Management expects continued support for margins from favorable loan repricing and stable or lower deposit costs. Northrim has demonstrated an improving net interest margin, which increased to 4.72% in Q2 2025 and 4.88% in Q3 2025, reflecting a more profitable asset allocation and higher yields on earning assets. This trend is anticipated to continue due to the upward repricing of loans and securities, alongside stable deposit costs.
4. Growth in Mortgage Banking Income: Mortgage banking income has been a consistent contributor to Northrim's profitability. The expansion of Residential Mortgage operations into new geographical markets is specifically designed to generate increased loan volume and, consequently, higher mortgage banking income in the coming years.
5. Deposit Growth: Northrim forecasts mid-to-high single-digit growth in deposits in 2025, which is crucial for funding ongoing loan expansion. The company has shown strong deposit gathering capabilities, with total deposits increasing by 6% year-over-year in Q1 2024 and 11% year-over-year in Q3 2025. This healthy deposit base, characterized by a high percentage of non-interest-bearing and core deposits, provides a stable and cost-effective funding source for future lending activities.

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Share Repurchases

• Northrim BanCorp authorized an additional repurchase of up to 300,000 shares, approximately 5% of outstanding shares, representing up to an additional $13 million in stock based on then-current market pricing, on January 28, 2022. Since the inception of the stock repurchase plan, 1,749,927 shares had been repurchased and retired.
• On February 1, 2021, the company authorized the repurchase of an additional 313,000 shares, roughly 5% of outstanding shares, which allowed for up to an additional $11 million in stock buybacks based on market pricing at that time. Since the plan's inception, 1,436,927 shares had been repurchased.
• As of 2025, management indicated no plans for share repurchases.

Share Issuance

• On August 22, 2025, Northrim BanCorp approved a 4-for-1 forward stock split, which increased the number of outstanding common shares from approximately 5.5 million to approximately 22.0 million.
• The stock split also proportionally increased the total number of authorized common shares from 10,000,000 to 40,000,000 and reduced the par value from $1.00 to $0.25, effective September 18, 2025.
• Proceeds from the issuance of common stock were $801,000 in 2024, $555,000 in 2023, and $586,000 in 2022.

Outbound Investments

• Northrim BanCorp acquired Sallyport Commercial Finance, LLC on October 31, 2024.
• This acquisition contributed to a significant increase in purchased receivable income and operating expenses within the Specialty Finance segment.

Capital Expenditures

• As of December 31, 2024, the Company had capital commitments totaling $423,000 related to new branch construction and renovations.
• Northrim opened a new branch in Homer during the first quarter of 2024, reflecting ongoing investments in its banking infrastructure.
• The company has made consistent investments in its people and banking infrastructure, which has contributed to its deposit market share growth.