Northrim BanCorp (NRIM) investor relations material

Executive summary

• Net income for Q2 2026 was $15.3 million ($0.68 per diluted share), up from $11.8 million in Q2 2025, driven by higher net interest income and loan growth.

• Net interest margin (NIMTE) rose to 5.01%, reflecting higher loan yields and low-cost deposits.

• Announced acquisition of PBCO Financial Corporation in an all-stock transaction, expanding into Oregon and creating a combined company with $4.2 billion in assets.

• Opened a new branch in Palmer, Alaska, expanding to 21 branches statewide and increasing market share in both loans and deposits.

• Growth in net interest income and mortgage banking income drove improved results, partially offset by higher provisions for credit losses and operating expenses.

Financial highlights

• Total assets reached $3.42 billion, portfolio loans $2.39 billion, and deposits $2.92 billion as of Q2 2026.

• Net interest income for Q2 2026 rose 11% to $37.1 million; net interest margin increased 30 bps to 4.96% year-over-year.

• ROAA improved to 1.84% and ROAE to 17.77% year-over-year.

• Tangible book value per share increased to $13.34, up from $10.84 a year ago.

• Efficiency ratio improved to 59.44% from 61.81% in Q1 2026.

Outlook and guidance

• Management expects continued profitable growth, supported by investments in people, technology, and customer relationships.

• 32% of loans mature or reprice in the next three months, supporting stable/improving NIM.

• Branch expansion and competitor pullback expected to drive further loan and deposit growth.

• The PBCO merger is expected to close in late 2026 or early 2027, subject to regulatory and shareholder approvals.

• Sufficient liquidity and capital levels maintained for future growth.