A N N U A L R E P O R T
2 0 1 3
MESSAGE TO SHAREHOLDERS
Led by a talented team focused on serving our
customers and state, Northrim BanCorp, Inc. ended
2013 with net profits of $12.3 million, or $1.87 per
diluted share. Our year was marked by continued
growth of our loan portfolio, net interest income and
core deposits; decreases in nonperforming assets; and
strong capital and balance sheet.
For the second consecutive year, we grew our loan
portfolio by 9%, which helped to generate a 4% increase
in net interest income. This was significant in a year of
historically low interest rates when many of our peers
experienced a decrease in net interest income.
Other positives in 2013 included good core deposit
growth, which provided a source of liquidity for our
operations, as well as continued growth in capital
through retained earnings. Northrim remains well-
capitalized with Tier 1 Capital to Risk Weighted Assets
at December 31, 2013 of 15.35%.
Nonperforming assets declined again in 2013, a result
of our continued focus on loan quality. Shareholders’
equity increased 6%, and our quarterly cash dividend
increased by 13%, providing a yield of approximately
2.7% at current market share prices.
We saw a decrease in other operating income in 2013,
primarily attributable to the significant reduction in
mortgage refinance activity at our affiliate Residential
Mortgage as mortgage interest rates increased in the
second half of the year.
Expenses were up in 2013 due to a number of
investments, including preparations for the proposed
merger with Alaska Pacific Bank in Southeast Alaska.
We also invested in Enroll Alaska, a new division of our
affiliate Northrim Benefits Group that is focused on
serving individual Alaskans needing health insurance
under the Affordable Care Act. We believe that these
investments have set the stage for positive
future returns.
In the past year, we played a role in advocating for a
more competitive oil tax structure, which is essential to
encourage long-term investment in Alaska’s resource
industry. We will continue to actively support the new
policy as it undergoes continued scrutiny in the coming
year, since we believe it is integral to the future success
of Alaska.
Our efforts were once again recognized nationally
when we were selected as part of the Sandler O’Neill
Sm-All Stars Class of 2013. We are one of 30 banks
nationwide – and the only bank in the Pacific Northwest
– to be chosen for this honor, which identifies the top-
performing small-cap banks in the nation. This is in
addition to being recognized with the 2012 and 2013
Raymond James Community Bankers Cup award,
which recognized us as in the top 10% of community
banks based on various profitability, operational
efficiency and balance sheet metrics.
We said farewell to a dear friend and esteemed
colleague last fall - Chris Knudson, who served as
Northrim’s founding Chief Financial Officer, passed
away in September after a long battle with cancer.
We remember Chris for his loyal service and incredible
contributions to Northrim, our employees and affiliated
companies. We dedicate this year’s annual report to
his memory.
Marc Langland
Chairman, President and CEO
Northrim BanCorp, Inc.
Chairman, Northrim Bank
Joe Beedle
President and CEO
Northrim Bank
Marc and Joe hold the
Sm-All Stars “slugger”
award for top-performing
small-cap banks in the nation.
Northrim has won
the award in 2011 and 2013, as
well as the Raymond James
Community Bankers Cup in
2012 and 2013.
2013 FINANCIAL SNAPSHOT
Unaudited (In Thousands Except Per Share Amounts)
2013
2012
2011
2010
2009
Net interest income
Provision for loan losses
Other operating income
Other operating expense
Income before income taxes
Income taxes
Net income
Less: Net income attributable to
noncontrolling interest
Net income attributable to Northrim Bancorp, Inc.
Earnings per share:
Basic
Diluted
Cash dividends per share
$44,034
$42,223
$42,364
$44,213
$46,421
(635)
12,886
39,866
$17,689
5,277
12,412
(1,559)
15,432
39,600
$19,614
6,156
13,458
1,999
13,090
36,755
$16,700
4,873
11,827
5,583
12,377
37,624
$13,383
3,918
9,465
7,066
13,084
41,357
$11,082
2,967
8,115
87
$12,325
512
$12,946
429
$11,398
399
$9,066
388
$7,727
$1.89
1.87
0.64
$2.00
1.97
0.56
$1.77
1.74
0.50
$1.42
1.40
0.44
$1.22
1.20
0.40
Assets
Portfolio loans
Deposits
Borrowings
Junior subordinated debentures
Shareholders' equity
Book value per share
Tangible book value per share(1)
Net interest margin (tax equivalent)(2)
Efficiency ratio(3)
Return on assets
Return on equity
Equity/assets
Dividend payout ratio
Nonperforming loans/portfolio loans
Net charge-offs/average loans
Allowance for loan losses/portfolio loans
Nonperforming assets/assets
Tax rate
Number of banking offices
Number of employees (FTE)[4]
Financial Snapshot Footnotes on page 22
$1,215,006 $1,160,107 $1,085,258 $1,054,529 $1,003,029
655,039
853,108
4,897
18,558
111,020
$17.42
$16.01
5.33%
68.96%
0.79%
7.08%
11.07%
33.18%
2.10%
1.00%
2.00%
3.10%
27%
11
303
770,016
1,003,723
6,527
18,558
144,318
$22.07
$20.86
4.29%
69.64%
1.07%
8.75%
11.88%
34.18%
0.24%
(-0.07%)
2.11%
0.35%
30%
10
269
704,213
970,129
4,479
18,558
136,353
$20.94
$19.69
4.40%
68.25%
1.19%
9.85%
11.75%
28.39%
0.64%
(-0.21%)
2.33%
0.78%
31%
10
252
645,562
911,248
4,626
18,558
125,435
$19.40
$18.09
4.59%
65.78%
1.09%
9.34%
11.56%
28.67%
1.14%
(-0.01%)
2.56%
1.16%
29%
10
269
671,812
892,136
4,766
18,558
117,122
$18.22
$16.87
4.92%
65.96%
0.90%
7.87%
11.11%
31.41%
1.70%
0.66%
2.14%
2.07%
29%
10
276
NET INCOME ATTRIBUTABLE
TO NORTHRIM BANCORP, INC.
in thousands
TOTAL ASSETS
in thousands
$15,000
$12,000
$9,000
$6,000
$3,000
$0
$800,000
$600,000
$400,000
$200,000
$0
$1,500,000
$1,200,000
$900,000
$600,000
$300,000
$0
2009
2010
2011
2012
2013
2009
2010
2011
2012
2013
PORTFOLIO LOANS
in thousands
TOTAL CAPITAL RATIO
20%
15%
10%
5%
0%
2009
2010
2011
2012
2013
2009
2010
2011
WELL CAPITALIZED
2012
2013
• 2 0 1 3 A N N U A L R E P O R T •
4
Alaska Pacific Bank
President, Craig Dahl and
Joe Beedle announced
an agreement to merge
on October 22, 2013
WE KNOW
SOUTHEAST ALASKA
Not just from a business standpoint, but personally as well. We
have employees who grew up in Southeast Alaska, who started
their careers there, and who know those communities inside and
out. And we count on their expertise on everything from local
industry trends – to the best local fishing spot.
ALASKA GROWN — AND GROWING
As a community bank, our focus is on Alaska and the people who call it home.
We are proud to be Alaska grown – and growing!
A Statewide Footprint
In 2014, we expect to finalize our merger with Alaska Pacific Bank, a well-established
community bank in Southeast Alaska. Through this merger, we will increase our statewide
presence, creating long-term value for our customers and shareholders.
In addition to expanding to another region within Alaska, the merger also offers economic
diversification of our loan portfolio. Fishing, mining, tourism and government play a
predominant role in Southeast Alaska, providing a balance to the oil and gas focus of
Southcentral Alaska.
As Northrim grows, we remain committed to our community banking roots and our shared
ideals of local value-added financial expertise, community engagement and customer service.
We look forward to serving Alaska Pacific Bank’s customers, and providing additional value,
resources and services to Southeast Alaska.
Fairbanks
LOAN PORTFOLIO
NONPERFORMING ASSETS (NPA)
in thousands
CONSTRUCTIO
N
8%
L ESTAT E
A
E
L R
A
I
C
R
E
M
M
O
C
%
9
4
C
O
N
4
%
S
U
MER
L
CIA
%
39
C O M MER
$35,000
$30,000
$25,000
$20,000
$15,000
$10,000
$5,000
$0
3.10%
2.07%
1.16%
0.78%
2009
2010
2011
2012
NPA
NPA/ASSETS
0.35%
2013
• 2 0 1 3 A N N U A L R E P O R T •
6
Loan Growth
In 2013, we grew our portfolio loans by 9% as compared to 2012.
The majority of this growth occurred in the commercial and
commercial real estate lending areas. Residential construction loans
increased the most in percentage terms, growing by 17% in 2013.
We have been a market leader in residential construction since
Northrim’s inception, and we continue in that position because of
our ability to maintain long-term relationships with leading builders
and developers, and to attract talented loan officers who offer
experience, expertise and a high level of service. In the past year,
we also benefited from the stable housing market and increases in
construction permit activity.
Balancing Risk and Growth
Part of our loan success is due to our fully integrated approach to
risk management, which includes our commitment to credit quality
and accountability. Our focus is on creating a long-term, enterprise-
wide credit culture that strikes a balance between high standards for
underwriting and managing risk that leads to growth for the customer
and the bank. We achieve this balance by relying on our qualified team
of loan and credit officers, whose experience and expertise allow us to
successfully handle a variety of complex finances.
)
s
n
o
i
l
l
i
M
n
i
(
175
150
125
100
75
50
25
0
-25
-50
COMPOSITION OF
NORTHRIM BANCORP
Capital as of December 31, 2013
$155MM
$144MM
$37MM
-$40MM
-$8MM
Total
Capital
Raised
Cumulative
Earnings
Cumulative
Dividends
Paid
Total Equity
Repurchases,
Equity
Compensation,
Costs of
Capital Raises,
and Other
Maintaining the Highest Standards,
Transparency and Compliance
We are proud of our position as one of only three publicly
traded, SEC-registered companies headquartered in Alaska.
This distinction requires Northrim to maintain the highest
industry standards, comply with the highest level of scrutiny,
and provide the highest level of transparency – all of which
makes us a stronger, better organization.
Growing Deposits – and Relationships
We increased our core deposits over the past year, a success
that can be partially attributed to efforts such as our new
Northrim Perks program. Through Northrim Perks, our
business customers and their employees receive benefits
for banking with us, allowing us to increase our personal
deposits and expand our customer relationships beyond
business services. Similarly, we revamped our referral
program, now offering Alaska Airlines miles to encourage
and reward our referring customers for helping us grow.
Investing in Facilities and Technology
Facilities and technology was another area of growth in 2013.
We continued a multi-year project to upgrade and modernize
our electronic technologies and our headquarters building
in Anchorage in an effort that allows us to attract quality
tenants and provide an efficient base of operations for
future growth.
Of special note was the renovation of the Knudson Room, a
training and meeting space dedicated to our former Chief
Operating Officer, Chris Knudson, who passed away in 2013.
Keeping in line with Chris’ philosophy that “our people are
our greatest strength,” we made significant investments in
the room’s state-of-the-art telecommunication technology,
which enables us to efficiently communicate with and train
employees throughout our network. We also invested in
IT infrastructure throughout the building to enhance safe,
secure, streamlined operations.
Our new ATMs also made their debut in 2013. Specially
designed to optimize customer convenience, we are pleased
to enhance our 24/7 full-service banking services at several
of our new ATMs.
8
+ + + + + + + + + + + + + + + +
+ + + + + + + + + + + + + +
+ + + + + +
DEPOSITS
TIME
9%
M
O
N
2
0
%
E
Y
M
A
R
K
E
T
D
N
A
M
E
D
%
6
3
I
N
S
D
%
11
A LASKA C
1 0 %
S A V I N G
S
14%
T
E
R
E
D
E
M
ST-BEARING
AND
Natural Resources
For many years, we have been actively engaged in the
natural resources industry, primarily in the area of oil
field support. We serve leading companies from the
North Slope to the Kenai Peninsula that provide oil and
gas support services ranging from transportation and
engineering to logistics and supplies.
REFLECTOR OF
THE ECONOMY
Northrim is a reflector of the economy – when the state
prospers, when our customers prosper, then so do we.
We closely monitor economic trends, develop expertise
and explore opportunities in industries important
to Alaska, including fishing, natural resources,
and construction.
Fishing
As one of Alaska’s oldest sustaining industries, fishing
is an important economic driver, and also plays a
defining cultural role to our residents and visitors. The
fishing industry offers significant growth opportunities
for Northrim, and we are steadily building that line of
business through our in-house talent and experience,
as well as through the planned merger with Alaska
Pacific Bank in coastal Southeastern Alaska.
Expanding into this industry provides us with
geographic and economic diversification, and
enables us to serve a special niche of small business
customers. We provide commercial loans of varying
sizes for everything from equipment and facilities to
vessels and operating capital. Through these activities,
we are pleased to help keep this long-standing industry
– and the local businesses and families involved in it –
strong and healthy.
WE KNOW
THE ALASKA ECONOMY
We dedicate significant resources to understanding our
economy – and sharing that knowledge with others. We speak
regularly at local events, host economic luncheons, sponsor
economic research, employ an in-house economist, and
publish our blog, Alaskanomics.com.
Northrim presents contribution to ISER
at annual economic event
The natural resources industry has been the
cornerstone of Alaska’s economy for decades, and
it continues to be a growth area for the state and for
Northrim. We continue to develop expertise and remain
engaged in this industry through our involvement and
leadership with organizations including the Resource
Development Council, the Chambers of Commerce,
the Alaska Support Industry Alliance, Commonwealth
North, the Associated General Contractors of Alaska,
and the Alaska Miners Association, among others.
As part of our engagement, we are active in the
discussion around oil and gas issues, particularly the
oil tax structure. With an abundance of supply in other
states, a competitive tax structure and fiscal certainty
for investors is essential for Alaska’s economy to
continue to do well. We strongly advocated for the
legislative changes made last year, and we will continue
to support oil tax policy that encourages investment
and growth.
Housing
Residential construction is an essential industry for
Alaska, both economically and socially. Northrim has
been a market leader since our beginning, supporting
the industry through the highs and the lows, and
tackling some of the largest and most complex projects.
We experienced a solid year of growth in this area,
attributable to our 50 years of combined lending
experience, active leadership in community and trade
organizations, commitment to the highest level of
customer service, and long-term relationships with
leading builders and developers.
NeighborWorks – Northrim employees volunteering
at the Paint the Town Event
One of our larger construction lending projects in 2013
was a partnership with Cook Inlet Housing Authority on
the Coronado Park Senior Village, a 56-unit apartment
building in Eagle River that will serve the affordable
housing needs of Alaska’s growing senior population.
Northrim became involved in the project because it was
economically viable with a reputable partner, and it
addressed an important need in our community. As both
a project lender and investor, we provided a construction
loan for the project; match funded a fixed rate permanent
loan through our relationship with the Federal Home Loan
Bank – Seattle, and committed to invest in Low Income
Housing Tax Credits that provided additional equity for
the project.
A COMMUNITY BANK
THAT CARES
Northrim is tightly integrated into our communities. We
work here, we play here, and we know the people and
places here. We accept deposits locally, we lend money
locally, and we make decisions locally. We are also
engaged in the community, investing time, effort and
money as an organization and as individuals. This local
focus and regional knowledge offers additional value,
as it directly translates to our ability to help our
customers succeed.
The community involvement of our employees is
significant. Supported by a 50% corporate match,
Northrim employees generously contributed $133,000
to United Way during the 2013 campaign, up 25% from
a previously successful 2012 campaign. In 2013, our
employees also gave over 4,000 hours of their time to
support local organizations and efforts.
Our School Business Partnership with Fairview
Elementary School in Anchorage is one example of our
community involvement. In 2013, we supported the school
through donations and volunteerism, including reading
to students, offering special math classes and tutoring,
holding clothing drives, and organizing a Thanksgiving
turkey giveaway.
During 2013, Northrim Bank contributed $605,203 to
organizations throughout Alaska. Our corporate giving
is focused on organizations and programs that support
community and economic development, strengthen low-
income families, and promote higher education through
the State of Alaska’s Education Tax Credit Program.
We encourage understanding of Alaska’s economy with
our unrestricted annual contribution to the University
of Alaska’s Institute of Social and Economic Research.
We are leading givers and volunteers to the Alaska
Small Business Development Center that helps counsel
emerging businesses in Alaska.
Last year, we also created the permanently endowed Chris
Knudson Northrim Accounting Scholarship to honor the
memory of our founding Chief Financial Officer and help
students throughout the University of Alaska system who
are pursuing a degree in accounting.
WE KNOW
COMMUNIT Y
From chairing boards to reading to schoolchildren, our employees know
the community because they are actively involved in it! Last year, Northrim
employees gave more than 4,000 hours of their time to support local
events and causes they care about.
• 2 0 1 3 A N N U A L R E P O R T •
1 2
ADDING VALUE THROUGH OUR AFFILIATES
Along with providing income, our affiliates offer our customers additional services, including residential
mortgages, employee benefit and individual health insurance programs, and investment advisory and wealth
management services.
Residential Mortgage, LLC (Residential Mortgage), an
affiliate since its inception in 1998, is a market leader
in Alaska’s mortgage industry. We hold 24% of this
Alaskan-owned company with offices in Anchorage,
Juneau, Kodiak, Soldotna, Eagle River and Fairbanks,
as well as in the state of Washington. The company
contributed $1.2 million to Northrim’s other operating
income in 2013, down from 2012’s $2.6 million, due to a
decrease in mortgage refinance activity.
We own a 43% interest
in Elliott Cove Capital
Management LLC (Elliott
Cove), a registered
investment advisor and
Northrim affiliate since
2002. The company, which specializes in helping
financial institutions create or expand investment
programs and retirement plans for their customers,
serves Northrim Bank as well as four community banks
in Washington. Elliott Cove contributed $291,000 to
other operating income in 2013, compared to $215,000
in 2012. In 2013, Elliott Cove also increased its assets
under management to $159.7 million.
Elliott Cove Insurance Agency LLC
Northrim owns a 43% interest in Elliott Cove Insurance
Agency LLC, which offers annuities and life insurance
products through its four bank clients in Washington
and through Northrim Bank in Alaska. The company
contributed $20,000 to our other operating income in
2013, compared to $53,000 in 2012.
We own a 23% interest in Pacific Wealth Advisors, an
independent wealth management and investment
advisor that is the holding company for Pacific Portfolio
Consulting, LLC and Pacific Portfolio Trust Company
(Pacific Portfolio). Part of the Northrim family since
2006, Pacific Portfolio serves high-net-worth individuals
and families, as well as institutions, including
endowments, foundations, and trustee- or participant-
directed retirement plans. The company contributed
$25,000 to other operating income in 2013, compared to
$75,000 in 2012.
N O R T H R I M
BenefitsGroup
Northrim Benefits Group, LLC (Northrim Benefits
Group), which joined the Northrim family in 2005 when
we purchased a 50.1% interest, helps businesses
develop competitive employee health benefit programs,
including medical, vision, dental and long-term care
plans. In 2013, Northrim Benefits Group established a
new division, Enroll Alaska, which focuses on enrolling
individual Alaskans in health insurance plans to meet
new requirements under the Affordable Care Act.
Northrim’s share of net income from Northrim
Benefits Group decreased to $88,000 in 2013 from
$514,000 in 2012 as a result of costs incurred to
launch Enroll Alaska.
Alaskans have a decision to make on
health insurance, we have a solution.
Enroll Alaska
In response to the federal mandate that all individuals
have health insurance beginning January 1, 2014,
Northrim Benefits Group established Enroll Alaska,
a new division focused on individual health coverage
for an estimated 66,000 uninsured or underinsured
Alaskans. This expanded the company’s market
focus from Alaska businesses to include individuals
and families.
Enroll Alaska’s licensed agents guide individuals
through the new federal insurance marketplace created
with the passage of the Affordable Care Act, help
individuals determine if they qualify for a federal tax
subsidy, and assist in selecting a health insurance plan
for each individual and family.
We made a significant investment in Enroll Alaska after
identifying it as a business opportunity that will expand
our line of services and retail customer base while
offering a needed service to the community.
Although enrollment numbers to date are lower than
expected due to issues with the federal marketplace
website that individuals in Alaska use to enroll in
health insurance coverage, we have received significant
recognition for our efforts to provide information on the
Affordable Care Act. The exposure from Enroll Alaska
has also resulted in additional contacts and referrals
from small business customers.
enrollingalaska.com
1.855.385.5550
Brochure
1 4
MISSION, VISION, VALUES
MISSION
MISSION
MISSION
TO BE ALASKA’S MOST TRUSTED FINANCIAL INSTITUTION
We are committed to adding value for our customers, communities, and shareholders.
VISION
VISION
VISION
TO BE ALASKA’S PREMIER BANK AND EMPLOYER OF CHOICE
We will be a leader in financial expertise, products and services, focused on continuous improvement and market growth.
VALUES
VALUES
VALUES
PROUD TO BE ALASKAN
WE ARE
WE ARE
WE ARE
ENGAGED
We are Alaskan managed We embody Alaska’s fro
We are Alaskan managed. We embody Alaska’s frontier spirit
and values, and strongly support our communities.
SUPERIOR CUSTOMER FIRST SERVICE
We achieve more because we are dynamic, proactive,
and innovative.
ACCOUNTABLE
i
W h
We have a sincere appreciation for our customers. We want to build lasting
customer relationships through professional, prompt, and caring service.
b ild l
W
i
i
i
f
GROWTH
f
W l k f
We look for growth opportunities for our customers, our institution and
our employees. We strive to be better, personally and professionally.
i i
h
INTEGRITY
We are trustworthy, reliable, and ethical, and provide our customers
with secure, confidential services. We do what is right.
We take personal responsibility.
We do what we say we will do.
ALIGNED
We value alignment within teams and across departments.
Together we are stronger.
Colleen Roberts
Electronic Banking
Jewel Santiago
Information Technology
Bobbi Kotek
Wasilla Financial Center
Brian Leonard
Wasilla Financial Center
Erin Gage
Branch Administration
Rachel Scantlebury
Customer Service Center
CELEBRATING SUPERIOR
CUSTOMER FIRST SERVICE
(cid:144)
(cid:144)
(cid:144) (cid:144) (cid:144) (cid:144)
Superior customer first service is a core value at Northrim.
It’s why we started, and why we’ve grown. In our 23 years
of operation, we believe we’ve effectively brought that value
to life throughout the bank. Today, we have an organization
full of people who truly care about our customers, and who
provide friendly, creative, flexible service to meet their needs.
We are especially proud of our employees’ ability to build
long-term relationships. We help our customers through
the complete life cycle of their business or personal needs,
offering different products and services – and always with a
spirit of superior customer first service.
We reinforce our customer service value in many ways,
including recognition of employees who go above and beyond
with our quarterly Customer First Service Awards. We honor
and thank the team members who received these awards in
2013 and look forward to celebrating more in the
coming year.
• 2 0 1 3 A N N U A L R E P O R T •
1 6
Jay Blury
VP, Marketing &
Communications Director
Lynn Wolfe
ASVP, Operations &
Branch Administration
Joe Schierhorn
EVP, Chief Financial Officer ,
Chief Operations Officer &
Corporate Secretary
Suzanne Whittle
SVP, Information Services & Compliance Manager
Len Horst
ASVP, Senior Lending Officer
Tara Tetzlaff
SVP, Construction Loan Manager
NORTHRIM SENIOR
MANAGEMENT
People: The Secret to Our Success
From the beginning, Northrim’s founders envisioned an
organization comprised of engaged, dedicated employees
who are constantly striving to learn more and perform
at the very highest standard. As we grow, we celebrate
our success in passing the baton from our pioneering
founders to the next generation of leaders.
Success comes from leading by example. Throughout
the organization, we empower our employees to act
as owners, and think of themselves as leaders. We
encourage them to expand their skills and be engaged in
their jobs and their community.
So while the economy and competition certainly play a
role, the true secret to our success is our people.
Ben Craig
ASVP, Chief Technology Officer
Amber Zins
SVP, Internal Audit Manager
Audrey Amundson
ASVP, Planning &
Organizational Development
Carolyn Jennings
SVP, Branch & Electronic Channel Manager
Steve Hartung
EVP, Chief Credit Officer
Joe Beedle
President and CEO
Dennis Bingham
SVP, Loan Administration Officer
Ellen Izer
SVP, Human Resources Director
Dan Lowell
SVP, Northrim Funding Services Manager
Catherine Claxton
SVP, Commercial Real Estate
Loan Manager
Jim Miller
SVP, Senior Credit Officer
1 8
BOARD OF DIRECTORS
Marc Langland
Director since 1990
Chairman
Joe Beedle
Director since 2011
President and CEO, Northrim Bank
Larry Cash
Director since 1995
Mark Copeland
Director since 1990
Chairman, Audit Committee
Ronald Davis
Director since 1997
Chairman, Compensation Committee
David Wight
Director since 2006
Anthony Drabek
Director since 1991
Richard Lowell
Director since 1990
David McCambridge
Director since 2011
Irene Sparks Rowan
Director since 1991
John Swalling
Director since 2002
Lead Director
Chairman, Governance & Nominating Committee
Marc Langland
Director since 1990
Chairman, President and CEO
Northrim BanCorp, Inc.
Chairman, Northrim Bank
Joe Beedle
Director since 2011
President and CEO, Northrim Bank
Larry Cash
Director since 1995
President and CEO, RIM Architects, LLC
since 1986
Mark Copeland
Director since 1990
Owner of Strategic Analysis, LLC, a
management consulting firm, since 1999
Member of Copeland, Landye, Bennett
and Wolf, LLP, a law firm, for 30 years
prior to that time
Ronald Davis
Director since 1997
CEO and Administrator, Tanana Valley
Clinic until his retirement in 1998
Secretary/Treasurer, Canoe Alaska,
from 1996 to 1999
Vice President, Acordia of Alaska
Insurance, from 1999 to 2003
David Wight
Director since 2006
President and CEO, Alyeska Pipeline
Service Company from 2000 to 2005,
following a 40-year career with the Amoco
Corporation, which became BP in 1998
Director, Storm Cat Energy,
from 2006 to 2011
Anthony Drabek
Director since 1991
President and CEO, Natives of Kodiak,
Inc., an Alaska Native corporation, from
1989 to 2010
Chairman and President, Koncor Forest
Products Company, from 1986 to 2011
Richard Lowell
Director since 1990
President, Ribelin Lowell and Company,
an insurance brokerage firm, from 1985
to 2004
David McCambridge
Director since 2011
Audit Partner, KPMG LLP, from
1991 until retirement in 2010
Director, The Tanaka Foundation
since 1985
Director, Great Alaska Council Boy
Scouts of America, from 1993 to 2012
Director, Alaska Kidney Foundation
since 1999
Irene Sparks Rowan
Director since 1991
Director, Klukwan, Inc., an Alaska Native
corporation, from 1988 to 2000, and 2009
to 2010
Director, Alaska Moving Image
Preservation Association since 2011
John Swalling
Director since 2002
President and Director, Swalling &
Associates, PC, an accounting firm,
since 1991
Director, Swalling Construction Co. Inc.
since 1975
NORTHRIM BANK OFFICERS
Executive Officers
Marc Langland, Chairman****
Joe Beedle, President & Chief Executive Officer*
Joe Schierhorn, Chief Financial Officer, Chief Operating Officer & Corporate Secretary****
Steve Hartung, Chief Credit Officer*
Administrative Senior Vice Presidents
Audrey Amundson, Planning & Organizational Development****
Ben Craig, Chief Technology Officer*
Len Horst, Senior Lending Officer*
Lynn Wolfe, Operations & Branch Administration****
Senior Vice Presidents
Amber Zins, Internal Audit Manager*
Carolyn Jennings, Branch & Electronic Channel Manager***
Catherine Claxton, Commercial Real Estate Loan Manager***
Dan Lowell, Northrim Funding Services Division Manager*
Dennis Bingham, Loan Administration Officer*
Ellen Izer, Human Resources Director
Jim Miller, Senior Credit Officer***
Suzanne Whittle, Information Services & Compliance Manager**
Tara Tetzlaff, Construction Loan Manager***
Vice Presidents
Barb Ervin, Branch Administration Manager**
Bill Staley, Commercial Loan Officer V
Bradley Kiefer, Commercial Loan Officer IV
Darci Ornellas, Regional Sales & Service Manager***
Daryl Lowe, Commercial Loan Officer V
Glenna Hartman, Credit Administration Officer III**
Heidi Moes, Item Processing Operations Manager**
Heidi Roesler, Human Resources Talent Manager**
Janet Holland, Facilities Manager**
Jay Blury, Marketing & Communications Director*
Jeanine Lillo, Assistant Controller**
Jim Culley, Commercial Loan Unit Manager
Josh King, Northrim Funding Services Assistant Division Manager
Kathy Martin, Construction Loan Officer IV***
Katie Bates, Electronic Channel Delivery Manager**
Kelly Lykins-Longlet, Risk Manager**
Kim Farrell Brewington, Commercial Cash Management Officer**
Larry Cooper, Commercial Loan Unit Manager
Latosha Dickinson, Controller of Financial Reporting*
Lisa Adams, Northrim Funding Services Operations Manager*
Mark Edwards, Commercial Loan Unit Manager & Bank Economist*
Mark Renner, Commercial Loan Officer V*
Mhay Sy, Credit Officer*
Mike Martin, Commercial Loan Unit Manager & In-House Counsel
Missie Yost, Branch Administration Operations Manager
Paula Grau, Commercial Loan Administrative Support Manager**
Ray Dinger, Commercial Real Estate Loan Officer V***
Sharon Wright, Loan Support Services Manager***
Steve Brown, Construction Loan Officer V
Steve Ponto, Commercial Loan Officer V*
Sue Wolfe, Commercial Real Estate Loan Officer V
Tammy Kosa, Regional Sales & Service Manager*
Zac Hays, Consumer & Small Business Loan Manager
Assistant Vice Presidents
Adam Baxter, Loan Quality Assurance Officer
Anita DeVore, Branch Manager*
Aracelis Bell, Elliott Cove Relationship Manager**
Barb Snell, Electronic Banking Operations Manager I
Ben Schulman, Small Business Loan Officer
Bill Simpson, Special Credits Officer II*
Brigitte Lampert, Branch Manager*
Christopher Chambos, Branch Manager
Dawn Hoxie, Branch Manager****
Delores Siah, Branch Manager
Erika Bills, Business Development Officer II***
Erin Gage, Branch Administration Assistant Operations Manager**
Esther Fouts, Accounting Supervisor****
Fran Ponge, Branch Manager*
Holly Burns, Northrim Funding Services Relationship Manager*
Jessica Giamona, Training & Development Manager
Josie Thayer, Electronic Business Services Manager*
Kelly McCormack, Commercial Loan Officer IV*
Ligia Lutan, Construction Loan Administrative Officer*
Linda Uttech, Assistant Facilities Manager
Lynn Akers, Elliot Cove Relationship Manager**
Maria Kirksey, Deposit Compliance Officer*
Marsha Fry, Commercial Real Estate Loan Officer III****
Nancy Wilson, Community Development, Information Security & Compliance Manager**
Oziel Villasenor, Branch Manager
Reynold Udarbe, Branch Manager
Rick Pinkerton, Loan Review Officer**
Rodlynn Smallwood, Assistant Electronic Channel Delivery Manager*
Sean Christian, Strategic & Planning Manager*
Sherilee Keopuhiwa, Branch Manager
Tammy Gray, Branch Manager
Tina Hohnstein, Special Credits Officer II***
Tori Brandon, Credit Administration Officer II***
AVP and above as of 2/7/14: * Five-year employee, ** Ten-year employee, *** Fifteen-year employee, **** Twenty-year employee
• 2 0 1 3 A N N U A L R E P O R T •
2 0
REMEMBERING
CHRIS KNUDSON
Northrim’s founding Chief Financial Officer, Chris Knudson, passed
away September 13, 2013 after a lengthy battle against cancer. Chris
was Executive Vice President, Chief Operating Officer for Northrim
BanCorp, Inc. and Northrim Bank and a member of the Board of
Directors for both companies. He was also a charter senior officer
along with founders Marc Langland and the late Arnold Espe, who
started the financial institution in 1990.
Chris is remembered as being a real advocate for employees: their
well-being was his primary concern. They recall a strong, humble
individual with great leadership skills.
We remember Chris and honor his 23 years of leadership at
Northrim through the creation of the Chris Knudson Northrim
Accounting Scholarship Endowment, which will be a lasting tribute
to inspire students in accounting throughout the University of Alaska
system. We also celebrate Chris’ memory with the dedication of the
Knudson Room, a state-of-the-art meeting and training space in
Northrim’s headquarters building.
INFORMATION AND
ADDRESSES
Annual Meeting:
May 15, 2014, 9:00 am
Hilton Anchorage Hotel - 500 W. 3rd Avenue
Anchorage, AK
Stock Symbol:
Northrim BanCorp, Inc. (NASDAQ: NRIM)
Auditor:
Moss Adams LLP
Transfer Agent & Registrar:
American Stock Transfer & Trust Company LLC
(800) 937-5449, info@amstock.com
Legal Counsel:
Davis Wright Tremaine LLP
Investor Requests:
For stock information and SEC filings, copies of earnings &
dividend releases, click on “Investor Relations” section
at northrim.com
Investor Information:
Call our Corporate Secretary at (907) 562-0062 or
write Corporate Secretary, Northrim Bank
PO Box 241489, Anchorage, AK 99524-1489
This report has not been approved or disapproved for accuracy
or adequacy by the Federal Deposit Insurance Corporation,
Federal Reserve Bank, Securities and Exchange Commission,
or any other regulatory authority.
Member FDIC, Equal Opportunity Lender
Equal Opportunity Employer
Cautionary note regarding
forward-looking statements
This report may include “forward-looking statements” within the meaning
of the Private Securities Litigation Reform Act of 1995, as amended,
which are not historical facts. These forward-looking statements describe
management’s expectations about future events and developments such
as future operating results, growth in loans and deposits, continued
success of the Company’s style of banking, and the strength of the
local economy. All statements other than statements of historical fact,
including statements regarding industry prospects and future results of
operations or financial position, made in this report are forward-looking.
We use words such as “anticipate,” “believe,” “expect,” “intend” and
similar expressions in part to help identify forward-looking statements.
Forward-looking statements reflect management’s current plans and
expectations and are inherently uncertain. Our actual results may differ
significantly from management’s expectations, and those variations may
be both material and adverse. Forward-looking statements are subject
to various risks and uncertainties that may cause our actual results to
differ materially and adversely from our expectations as indicated in
the forward-looking statements. These risks and uncertainties include:
expected cost savings, synergies and other financial benefits from the
proposed merger with Alaska Pacific Bancshares, Inc. might not be
realized within the expected time frames and costs or difficulties relating
to integration matters might be greater than expected; the requisite
shareholder and regulatory approvals for the proposed merger might not
be obtained; the ability of the Company and Alaska Pacific Bancshares,
Inc. to execute their respective business plans (including the proposed
merger); the general condition of, and changes in, the Alaska economy;
factors that impact our net interest margin; and our ability to maintain
asset quality. Further, actual results may be affected by competition
on price and other factors with other financial institutions; customer
acceptance of new products and services; the regulatory environment in
which we operate; and general trends in the local, regional and national
banking industry and economy. Many of these risks, as well as other risks
that may have a material adverse impact on our operations and business,
are identified in our filings with the SEC. However, you should be aware
that these factors are not an exhaustive list, and you should not assume
these are the only factors that may cause our actual results to differ from
our expectations. In addition, you should note that we do not intend to
update any of the forward-looking statements or the uncertainties that
may adversely impact those statements, other than as required by law.
Financial Snapshot Footnotes:
(1) Tangible book value per share is a non-GAAP ratio that represents shareholder’s equity, less intangible assets, divided by common stock
outstanding.
(2) Tax-equivalent net interest margin is a non-GAAP performance measurement in which interest income on non-taxable investments and
loans is presented on a tax-equivalent basis using a combined federal and state statutory rate of 41.11% in all years presented.
(3) In managing our business, we review the efficiency ratio exclusive of intangible asset amortization, which is not defined in accounting
principles generally accepted in the United States (“GAAP”). The efficiency ratio is calculated by dividing noninterest expense, exclusive
of intangible asset amortization, by the sum of net interest income and noninterest income. Other companies may define or calculate
this data differently. We believe this presentation provides investors with a more accurate picture of our operating efficiency. In this
presentation, noninterest expense is adjusted for intangible asset amortization.
(4) FTE includes employees of Northrim Bank & Northrim Benefits Group.
Refer to the company’s Annual Report on Form 10k available in the “Investor Relations” section of nothrim.com, for reconciliations of non-
GAAP financial ratios to comparable GAAP measurements.
• 2 0 1 3 A N N U A L R E P O R T •
• 2 0 1 3 A N N U A L R E P O R T •
2 2
ACHIEVE
MORE
ANCHORAGE
Northrim Headquarters
PO Box 241489
Anchorage, AK 99524
(907) 562-0062
(800) 478-2265 outside Anchorage
northrim.com
Midtown Financial Center
3111 C Street
Huffman Branch
1501 E. Huffman Road
Jewel Lake Branch
9170 Jewel Lake Road
SouthSide Financial Center
8730 Old Seward Highway
EAGLE RIVER
Eagle River Branch
12812 Old Glenn Highway
FAIRBANKS
Fairbanks Financial Center
360 Merhar Avenue
West Anchorage Branch &
Small Business Center
2709 Spenard Road
Seventh Avenue Branch
517 W. 7th Avenue
36th Avenue Branch
811 E. 36th Avenue
WASILLA
Wasilla Financial Center
850 E. USA Circle
BELLEVUE, WASHINGTON
Northrim Funding Services
170 120th Avenue N.E., Suite 202
PO Box 50245
Bellevue, WA 98015
(425) 453-1105
AFFILIATED COMPANIES
Elliott Cove Capital
Management LLC
1000 2nd Avenue, Suite 1440
Seattle, WA 98104
(206) 267-2683
elliottcove.com
Northrim Benefits Group, LLC
3111 C Street, Suite 500
Anchorage, AK 99503
(907) 263-1401
northrimbenefits.com
Elliott Cove Insurance Agency LLC
1000 2nd Avenue, Suite 1440
Seattle, WA 98104
(206) 267-2683
elliottcove.com
Enroll Alaska
3111 C Street, Suite 100
Anchorage, AK 99503
(907) 770-5100
enrollingalaska.com
Northrim BanCorp, Inc.
n o r t h r i m . c o m
Residential Mortgage, LLC
Headquarters
100 Calais Drive
Anchorage, AK 99503
(907) 222-8800
residentialmtg.com
Pacific Portfolio Consulting, LLC
and Pacific Portfolio
Trust Company
Two Union Square
601 Union Street, Suite 4343
Seattle, WA 98101
(206) 623-6641
pacific-portfolio.com