Northrim BanCorp, Inc. reported net income of $11.8 million, or $2.09 per diluted share, for the second quarter of 2025. This represents an increase from $9.0 million, or $1.62 per diluted share, in the second quarter of 2024. The improved profitability was driven by higher net interest income, increased purchased receivable income, and improved mortgage banking income.
Net interest income surged 24% year-over-year to $33.6 million, compared to $27.1 million in the second quarter of 2024, reaching a record high. The net interest margin (NIMTE) expanded to 4.72% in Q2 2025, up from 4.30% in the prior year's second quarter, primarily due to higher loan balances and increasing asset yields.
Purchased receivable income increased significantly due to the Sallyport Commercial Finance acquisition, completed on October 31, 2024. However, the company recorded a provision for credit losses of $2.0 million in Q2 2025, compared to a benefit of $120,000 in Q2 2024, primarily due to increased loan balances and less favorable economic forecasts.
Nonperforming assets, net of government guarantees, increased to $11.9 million at June 30, 2025, compared to $5.1 million at June 30, 2024, primarily as a result of the Sallyport acquisition. Despite this, the allowance for credit losses on loans was 290% of nonperforming loans, net of government guarantees, at the end of the quarter.
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