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Northrim BanCorp Reports Q3 Earnings Drop as Loan Loss Provision Offsets Record Interest Income

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NRIM$24.43 1.33%

Northrim BanCorp, Inc. (NRIM) reported third-quarter 2026 net income of $14.4 million, or $0.63 per share, down from $15.3 million in the second quarter and $27.1 million a year earlier. The decline came as a $7.7 million credit loss provision, connected to a single $20 million loan in its Specialty Finance segment, weighed on earnings.

Despite the credit charge, core banking performance remained solid. Net interest income reached a record $38.9 million, while net interest margin expanded 14 basis points year-over-year to 5.02%. However, credit quality showed weakness as non-performing assets climbed to $42.9 million. Reflecting management confidence in capital and cash flow, Northrim raised its quarterly dividend to $0.17 per share.

Looking ahead, key areas to monitor include the resolution of the impaired Specialty Finance loan, stabilization of non-performing assets, and progress on the pending PBCO transaction.

Key points

  • Northrim BanCorp earned $14.4 million, or $0.63 per share, in Q3 2026, down from $15.3 million in Q2 and $27.1 million a year ago.
  • Earnings were reduced by a $7.7 million provision for credit losses tied to a single $20 million Specialty Finance loan.
  • Net interest income reached a record $38.9 million, with net interest margin expanding to 5.02%.
  • Non-performing assets increased to $42.9 million, primarily driven by the Specialty Finance portfolio.
  • The company raised its quarterly dividend to $0.17 per share.

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Questions and answers

What were Northrim BanCorp's Q3 2026 earnings?

Northrim BanCorp reported Q3 2026 net income of $14.4 million, or $0.63 per share, down from $15.3 million in Q2 and $27.1 million in the prior-year period.

Why did Northrim BanCorp's earnings decline in Q3 2026?

Earnings decreased mainly due to a $7.7 million provision for credit losses associated with a single $20 million loan in the bank's Specialty Finance division.

Did Northrim BanCorp change its dividend in Q3 2026?

Yes, Northrim BanCorp raised its quarterly dividend to $0.17 per share, signaling ongoing confidence in its capital position.