Northrim BanCorp, Inc. announced record net income of $13.3 million, or $2.38 per diluted share, for the first quarter of 2025. This represents a substantial increase from $8.2 million, or $1.48 per diluted share, reported in the first quarter of 2024. The strong performance was attributed to increased purchased receivable income, higher net interest income, and improved mortgage banking income.
Purchased receivable income saw a significant boost primarily due to the acquisition of Sallyport Commercial Finance, LLC, which closed on October 31, 2024. Net interest income increased 18% year-over-year to $31.3 million, and the net interest margin (NIMTE) expanded to 4.61% in Q1 2025, up from 4.22% in the prior year's first quarter.
The company recorded a benefit to the provision for credit losses of $1.4 million in Q1 2025, compared to a provision of $149,000 in Q1 2024. This benefit was largely due to the reclassification of $100 million in mortgage loans to held for sale, which provided a $2.2 million benefit in the Home Mortgage Lending segment. Nonperforming loans, net of government guarantees, increased to $8.0 million at March 31, 2025, from $7.5 million at December 31, 2024.
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