Northrim BanCorp Inc (NRIM) Reports Q3 2023 Earnings of $8.4 Million
Northrim BanCorp Inc (NASDAQ:NRIM) reported net income of $8.4 million, or $1.48 per diluted share, in Q3 2023
Net interest income increased 5% to $26.4 million compared to Q2 2023
Portfolio loans were $1.70 billion at the end of Q3 2023, up 4% from the preceding quarter
Total deposits were $2.43 billion at the end of Q3 2023, up 5% from the preceding quarter
Northrim BanCorp Inc (NASDAQ:NRIM) announced its Q3 2023 earnings on October 26, 2023. The company reported a net income of $8.4 million, or $1.48 per diluted share, compared to $5.6 million, or $0.98 per diluted share, in Q2 2023, and $10.1 million, or $1.76 per diluted share, in Q3 2022. The increase in profitability was primarily due to higher net interest income, a gain on an OREO sale, an increase in mortgage banking income, unrealized gains on marketable equity securities, and a lower provision for credit losses compared to the preceding quarter.
Financial Performance
Northrim's net interest income in Q3 2023 increased 5% to $26.4 million compared to $25.1 million in Q2 2023 and increased slightly compared to $26.3 million in Q3 2022. The company's net interest margin on a tax equivalent basis (NIMTE) was 4.21% for Q3 2023, unchanged from Q2 2023 and a 6-basis point decrease compared to Q3 2022. The weighted average interest rate for new portfolio loans originated in Q3 2023 was 7.39% compared to 6.93% in Q2 2023 and 5.83% in Q3 2022.
Portfolio Loans and Deposits
Portfolio loans were $1.70 billion at the end of Q3 2023, up 4% from the preceding quarter and up 22% from a year ago, primarily due to new customer relationships, expanding market share, and retaining certain mortgages in the loan portfolio. Total deposits were $2.43 billion at the end of Q3 2023, up 5% from the preceding quarter, and down slightly from $2.44 billion a year ago.
Dividends and Market Share
Dividends per share in Q3 2023 remained consistent with Q1 and Q2 2023 at $0.60 per share and increased 20% from $0.50 per share in Q3 2022. The company also reported an 8% increase in market share.
Outlook
Despite the challenges, Northrim's management believes the strategies pursued over the past few years will continue to drive profits and expansion in the market. The company's focus on delivering superior customer service and its ability to deliver profitable growth in a variety of economic environments were highlighted as key factors in its Q3 2023 performance.
Explore the complete 8-K earnings release (here) from Northrim BanCorp Inc for further details.
This article first appeared on GuruFocus.
