Northrim BanCorp, Inc. reported record net income of $10.9 million, or $1.95 per diluted share, for the fourth quarter of 2024. This marks a significant increase from $6.6 million, or $1.19 per diluted share, in the fourth quarter of 2023. For the full year 2024, net income climbed 46% to $37.0 million, or $6.62 per diluted share, compared to $25.4 million, or $4.49 per diluted share, in 2023.
The increase in Q4 2024 profitability was primarily driven by a surge in purchased receivable income due to the Sallyport Commercial Finance acquisition, completed on October 31, 2024. Additionally, mortgage banking income increased, partly from a rise in the fair value of a purchased mortgage servicing portfolio. Net interest income also grew 15% year-over-year to $30.8 million.
The net interest margin (NIMTE) expanded to 4.47% in Q4 2024, up from 4.12% in the prior year's fourth quarter, benefiting from lower deposit costs due to recent Fed interest rate cuts and new loan volume. Nonperforming loans, net of government guarantees, increased to $7.5 million at December 31, 2024, from $5.0 million at September 30, 2024.
Operating expenses increased to $29.4 million in Q4 2024, up from $24.0 million in Q4 2023, primarily due to higher salaries, personnel expenses, and one-time deal costs associated with the Sallyport acquisition. The company's deposit market share in Alaska increased to 15.66% as of June 30, 2024, up from 15.04% a year prior.
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