2 0 1 9 A
N
N
U
A
L
R
E
P
O
R
T
PROUD TO
ALASKAN
BE
+ + + +
+ + + +
MESSA GE TO
SHAREHOLDERS
Over the past several years, we have invested time
and capital to build capacity in our infrastructure,
people, services and technology. In 2019, we began to
leverage this expanded capacity, and our performance
reflects the successful execution of our business plan.
Northrim ended 2019 with record earnings of
$20.7 million, an increase of 3% from 2018. Total
revenue for 2019 increased 9% to $102.0 million,
and total assets increased to $1.64 billion, up 9%
from a year ago. Improved asset quality, including
net loan recoveries for the year; higher production in
our mortgage banking division; and loan and deposit
growth were key drivers of this record profitability.
Through the leadership and expertise of our credit
administration and lending teams, the Bank’s loan
portfolio quality improved and net recoveries provided
a $1.2 million benefit to the loan loss provision
in 2019. Portfolio loans increased 6% to $1.04 billion at
the end of 2019, while average portfolio loans were up
5% from a year ago.
While interest rate decreases challenged the Bank’s
net interest margin, lower rates supported mortgage
purchase and refinance activity at our wholly-owned
subsidiary, Residential Mortgage. This was a significant
contributor to other operating income in 2019.
At year-end, net interest income increased 5% to
$64.4 million, and our net interest margin remained
above our peer average. Favorable cost of funds and
growth in deposits continued to support our net interest
margin. Total deposits increased 12% to $1.37 billion
at year-end, with Alaskans accounting for nearly all
of Northrim’s deposit base, underscoring the Bank’s
continued commitment to serving the state.
We expanded our Alaska market presence in 2019, with
investments in new branches and people, contributing
to our progress with both loans and deposits. Our new
Soldotna Financial Center, serving the Kenai Peninsula,
and several significant additions to the lending teams
1PG
+ + + + + R O S S A L A S K
A
C
A
supported our community banking operating results
and led to increased statewide market share in 2019.
We will continue to look for other opportunities to
expand within our Alaska footprint.
Northrim continues to have strong capital, maintaining
levels above the regulatory requirements to be
categorized as well-capitalized. In 2019, Northrim
completed its authorized share repurchase plan,
buying a total of 347,676 shares. We also increased
our shareholder dividend by 24% in 2019. We intend
to continue to use our share repurchase and dividend
programs to enhance value to our shareholders.
including modest
in 2019,
increased activity
There were noticeable positive shifts in the state
economy
job growth
in resource development,
and
transportation, military and tourism. As a bank, we
advocate for a long-term, stable and sustainable fiscal
plan for the state. We also encourage the state to make
investments that will foster economic development.
are increasingly able to meet all of our customers’
financial needs.
Our support of the community remains strong,
demonstrated in diverse sponsorships from the
iconic Iditarod Trail Sled Dog Race, to our regional
school-business partnerships and support of the
University of Alaska system, as well as participation
with United Way.
As part of our vision to be an employer of choice,
we remain committed to providing our employees
with meaningful benefits, competitive salaries and
opportunities to advance.
We are pleased with our progress in 2019 and
appreciate all of our employees who connect with
customers throughout the state. As we continue to
grow, Northrim is proud to be Alaskan, and we remain
focused on helping all achieve more.
We remain committed to our customers, community
and employees. We are focused on attracting and
retaining customers, using a consultative, active
and relationship-based approach and providing
superior personalized service. Through a culture of
teamwork and development of relevant services, we
JOE SCHIERHORN
Chairman, President, CEO and COO, Northrim BanCorp, Inc.
Chairman, President and CEO, Northrim Bank
2PG
+ + + + + 2019
FINANCIAL SNAPSHOT [1]*
(In thousands, except Share Data)
Net interest income
Provision (benefit) for loan losses
Other operating income
Compensation expense, RML acquisition payments
Other operating expense
2019
2018
2017
2016
2015
2014
$64,442
$61,208
$57,678
$56,357
$56,909
$52,293
(1,175)
37,346
468
(500)
32,167
—
3,200
40,474
130
76,370
69,800
71,023
2,298
43,263
4,775
71,505
1,754
44,608
4,094
68,551
(636)
20,034
—
46,923
Income before provision for income taxes
$26,125
$24,075
$23,799
$21,042
$27,118
$26,040
Provision for income taxes
Net income
Less: Net income attributable to noncontrolling interest
5,434
20,691
—
4,071
20,004
—
10,321
13,478
327
6,052
14,990
579
8,784
18,334
551
8,173
17,867
459
Net income attributable to Northrim BanCorp, Inc.
$20,691
$20,004
$13,151
$14,411
$17,783
$17,408
Year-End Balance Sheet
Assets
Portfolio loans
Deposits
Shareholders' equity
Common shares outstanding
Average Balance Sheet
Assets
Earning assets
Portfolio loans
Deposits
$1,643,996
$1,502,988
$1,518,596
$1,525,851
$1,498,691
$1,448,327
1,043,371
984,346
954,953
974,074
979,682
923,122
1,372,351
1,228,088
1,258,283
1,267,653
1,240,792
1,179,747
207,117
205,947
192,802
186,712
177,214
164,441
6,558,809
6,883,216
6,871,963
6,897,890
6,877,140
6,854,189
$1,555,707
$1,493,385
$1,511,052
$1,506,522
$1,480,913
$1,335,929
1,386,557
1,346,449
1,367,203
1,361,913
1,334,102
1,212,291
1,010,098
971,548
981,001
976,613
968,752
893,031
1,276,407
1,227,272
1,248,333
1,250,243
1,219,445
1,111,594
Diluted common shares outstanding
6,808,209
6,981,557
6,977,910
6,974,864
6,948,474
6,852,267
Per Common Share Data
Basic earnings
Diluted earnings
Book value per share
Tangible book value per share(2)*
Cash dividends per share
Performance Ratios
Return on average assets
Return on average equity
Equity/assets
Tangible common equity/tangible assets(3)*
Net interest margin
Net interest margin (tax equivalent)(4)*
Non-interest income/total revenue
Efficiency ratio(5)*
Dividend payout ratio
Asset Quality
$3.08
$3.04
$31.58
$29.12
$1.26
1.33 %
9.92 %
12.60 %
11.73 %
4.65 %
4.70 %
36.69 %
75.43 %
40.79 %
$2.91
$2.86
$29.92
$27.57
$1.02
1.34 %
9.95 %
13.70 %
12.76 %
4.55 %
4.60 %
34.45 %
74.68 %
35.08 %
$1.91
$1.88
$28.06
$25.70
$0.86
0.87 %
6.81 %
12.70 %
11.75 %
4.22 %
4.28 %
41.24 %
72.39 %
45.44 %
$2.09
$2.06
$27.07
$24.70
$0.78
0.96 %
7.93 %
12.24 %
11.29 %
4.14 %
4.20 %
43.43 %
76.44 %
37.59 %
$2.59
$2.56
$25.77
$22.31
$0.74
1.20 %
10.47 %
11.82 %
10.40 %
4.27 %
4.32 %
43.94 %
71.31 %
28.81 %
$2.57
$2.54
$23.99
$20.48
$0.70
1.30 %
11.19 %
11.35 %
9.86 %
4.31 %
4.36 %
27.70 %
64.48 %
27.40 %
Nonperforming assets, net of government guarantees
$19,946
$22,619
$28,729
$19,315
$5,178
$7,231
Nonperforming assets/assets, net of government guarantees
Nonperforming loans/portfolio loans, net of government guarantees
Net charge-offs (recoveries)/average loans
Allowance for loan losses/portfolio loans
Other Data
Number of banking offices(6)
Number of employees (FTE)(7)
Financial Snapshot endnotes on page 22.
1.21 %
1.34 %
(0.07)%
1.83 %
1.50 %
1.49 %
0.15 %
1.98 %
1.89 %
2.24 %
0.15 %
2.25 %
16
431
16
430
14
429
1.27 %
1.33 %
0.08 %
2.02 %
14
451
0.35 %
0.22 %
0.03 %
1.85 %
14
441
0.50 %
0.38 %
(0.12)%
1.81 %
14
426
Five-Year
Compound
Growth Rate
4 %
NM
13 %
NM
10 %
0 %
(8)%
3 %
NM
4 %
3 %
2 %
3 %
5 %
(1)%
3 %
3 %
2 %
3 %
(0)%
4 %
4 %
6 %
7 %
12 %
0 %
(2)%
2 %
4 %
2 %
2 %
6 %
3 %
8 %
22 %
19 %
29 %
NM
0 %
3 %
0 %
Net Income Attributable
Net Income Attributable
to Northrim BanCorp, Inc.
to Northrim BanCorp, Inc.
(in thousands)
(in thousands)
Total Assets
Total Assets
(in thousands)
(in thousands)
$1,750,000
$1,400,000
$1,050,000
$700,000
$350,000
$0
2015
2016
2017
2018
2019
2015
2016
2017
2018
2019
Portfolio Loans
Portfolio Loans
(in thousands)
(in thousands)
Total Deposits
Total Deposits
(in thousands)
(in thousands)
$1,500,000
$1,200,000
$900,000
$600,000
$300,000
0
2015
2016
2017
2018
2019
2015
2016
2017
2018
2019
$22,000
$17,600
$13,200
$8,800
$4,400
$0
$1,200,000
$1,000,000
$800,000
$600,000
$400,000
$200,000
$0
4PG
+ + + + + o
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15.80%
15.90%
16.73%
15.63%
14.60%
Loan Portfolio
Loan Portfolio
As of December 31, 2019
As of December 31, 2019
I O N
T
C
U
R
1 0 %
C O N S T
20%
15%
10%
5%
0%
2015
2016
2017
2018
2019
Well-capitalized
1.89%
1.50%
1.21%
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5PG
1.27%
0.35%
2015
2016
2017
2018
2019
NPA
NPA/Assets
Net of government guarantees
$259
$207
$45
-$19
-$77
Total
Capital
Raised
Cumulative
Earnings
Cumulative
Dividends
Paid
Total Equity
Repurchases,
Equity
Compensation,
Costs of
Capital Raises,
and Other
C
O
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M
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C
I
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4
7
%
R
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A
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3
3
%
M
A
N
D
4 %
C O N S U M E
R
Deposits
Deposits
As of December 31, 2019
As of December 31, 2019
T I M E
2 %
1
KET
R
A
Y M
%
5
1
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N
O
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1
7
A
%
V
I
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A
INTER E S T - B E
D E M A N D
G
R I N
C O M M U N I T Y
ALLEN MARINE TOURS
Supporting the local economy is at the heart of Allen
Marine, which is Alaska family-owned and operated,
with three generations active in the company. “We
support businesses by being in business,” Zak says.
Allen Marine’s desire to work with Alaska businesses
extends to banking. “As a locally owned, family-owned
company, we like working with fellow Alaskans,” Zak
shares. “We are pleased to be aligned with a local
entity like Northrim.”
Northrim has played a role in several significant
expansion projects in recent years, including financing
the construction of the Fin Island Lodge and the St.
Theodosius, a 78-foot catamaran for a new Hubbard
Glacier tour. “Northrim provided the necessary capital
for us to expand and respond to the growing industry
in a timely manner,” Zak says.
The relationship extends beyond lending to include
succession planning endeavors, as well as deposit
accounts,
internet banking, merchant services
and corporate credit cards, notes Todd Greimann,
Northrim Senior Vice President, Southeast Regional
Market Manager. “We look forward to continuing to
serve Allen Marine, as an Alaska bank and Alaska
company working together for a positive Alaska
business environment,” he says.
When Bob and Betty Allen took passengers on their
first sightseeing cruise in 1970, they had no idea
they were embarking on a journey that would make
them the largest, most experienced day-cruise
company in Alaska.
Since that maiden voyage 50 years ago, Allen
Marine has expanded exponentially, now with
operations in Sitka, Juneau and Ketchikan, a fleet
of nearly 50 vessels, and 150 full-time and 550
seasonal employees.
“It’s an exciting time in the cruise and visitor industry
It’s growing steadily and
in Southeast Alaska.
providing employment opportunities
local
Southeast residents,” says Zak Kirkpatrick, Allen
Marine’s Chief Marketing Officer.
for
SOUTH
EAST
6PG
STRATEGIC EXPANSION
& P OSITIVE MOMENTUM
We realized a long-term goal in 2019 with the
opening of our new financial center in Soldotna,
on Alaska’s Kenai Peninsula. Soldotna brings
our total number of branches in Alaska to 16,
the latest in a continuing demonstration of
investment in the state. We look forward to future
strategic expansion throughout Alaska.
branch manager, a
third-generation Kenai
Peninsula resident and accomplished banker,
and the promotion of a lifelong Alaskan and
long-time Northrim employee to regional market
manager in Fairbanks. We are pleased with this
momentum and are optimistic about growth in
these and other markets.
Positive momentum on the Kenai Peninsula and
in other markets is already being generated,
due in part to our ability to recruit and retain
experienced, talented bankers. In the past year,
we have welcomed several bankers with deep
community and business connections and a
wealth of experience in the financial industry.
Two key examples include our new Soldotna
As part of our vision to be an employer of choice,
and recruit and retain top talent, we continued
to make improvements to compensation and
employee benefits in 2019. We look forward to
realizing the return on these investments, as
our high-performing employees drive growth,
develop new relationships and create new
opportunities.
7PG
+ + + + + C O M M U N I T Y
OPA ORTHOPEDIC
PHYSICIANS ALASKA
“Northrim sought to understand our business needs
holistically,” says Eric Olson, OPA’s Chief Financial
Officer. “Northrim is playing a very important role in
the growth and development of how we serve patients
in the Valley.”
Northrim also entered into a preferred provider
relationship, which offers Bank employees a reduced
rate through their insurance for receiving care at OPA.
“Doing business with those who do business with
us is extremely important,” Eric says. “We feel like
Northrim’s approach to servicing our needs is the
same approach we strive for in serving our patients –
top-notch, genuine, individualized care.”
In a state where health care access can be difficult
and expensive, Orthopedic Physicians Alaska (OPA)
is taking an innovative approach that is making
a difference.
OPA’s pioneering orthopedic injury walk-in clinics
have saved patients with non-life threating injuries
hundreds of thousands of dollars in unnecessary
emergency room expenses. And by providing athletic
training services to high schools at no charge,
OPA prevents approximately 4,500 athletic injuries
each year.
“The founders’ collective vision to provide high-quality,
insured
low-cost orthopedic care, accessible to
and non-insured patients in an independent private
practice setting, has always been OPA’s driving force,”
says Rick Watson, OPA’s Chief Executive Officer.
OPA is the largest, most comprehensive orthopedic
practice in Alaska – and they are continuing to
grow. Most recently, OPA partnered with Alaska
Heart & Vascular Institute and Gagnon Plastic &
Reconstructive Surgery to construct a new building
in Wasilla.
OPA chose to work with Northrim on the construction
financing for the state-of-the-art facility, slated to
open this fall. The relationship has since expanded,
with Northrim now providing a full suite of services.
SOUTH
CENTRAL
8PG
Seamless Service,
Complete Solutions
encourage
We
to
continue
teamwork
cross-departmental
that allows us to seamlessly
provide complete banking solu-
tions to our customers, from re-
tail banking to lending and cash
management services. This com-
mitment to working in concert
and providing Superior Customer
First Service has been significant
as recent new customers have
come to Northrim first as depos-
it customers, then expanded into
loan relationships as their bor-
rowing needs arose.
services. Over
Listening carefully to the needs
of the market enables us to
continually improve and develop
relevant
the
past year, these efforts have
proven effective
in attracting
new customers and growing our
banking relationships, positioning
us to effectively compete with
other financial institutions and
successfully gain market share.
Navigating an
Ever-Changing
Landscape
Our continued significant invest-
ment in technology and the talent
to leverage that technology allows
us to nimbly evolve and remain at
the forefront of the ever-changing
landscape of electronic banking,
while improving efficiency and the
customer experience. Our new
branches, with smaller footprints
and robust technology, exemplify
our skillful navigation of the tran-
sition between traditional branch
banking and electronic bank-
ing. Through our 16 statewide
branches and electronic banking
services, we are proud to serve
approximately 90% of Alaska’s
population.
Conversion to a new loan origi-
nation system in 2019 was also
a substantial investment of time
and resources, which will result
in a faster, more responsive, more
efficient loan approval, funding
and booking process for both our
customers and our team.
Quality Growth
improvement
A highlight of our year was the
overall
in asset
quality. We saw improvements in
various qualitative loan factors,
including loan portfolio quality,
nonperforming
loans, nonper-
forming assets, net adversely
classified loans and net loan re-
coveries, and recorded a benefit
for loan losses.
This accomplishment is attribut-
able to several factors, including
the work of our credit adminis-
tration team, under the leader-
ship of Chief Credit Officer Mark
Edwards. We were pleased to ex-
pand the executive team in 2019
to include Mr. Edwards, a lifelong
Alaskan and long-time Northrim
employee, who also serves as
Bank Economist.
Consistent with our vision of con-
tinual improvement, our lending
team is also becoming increas-
ingly experienced, with a focus
on intimately understanding our
customers’ operations, challeng-
es and opportunities and provid-
ing flexible, customized solutions.
The result is high-quality loans
that help our customers achieve
their goals. This level of expertise
and service has also led to new
valuable customer relationships
with some of the state’s oldest
and most respected companies,
and we are proud to earn their
business and referrals.
9PG
C O M M U N I T Y
THE SHOPPES AT SUN MOUNTAIN
Developer Cameron Johnson called Wasilla home for
most of his growing-up years, and still considers it
his hometown. “I want to see the Valley continue to
prosper and grow responsibly. I believe I can help in
both those areas,” he says.
entertainment, banking, lodging, health and wellness
care, housing and business opportunities. The
development has already signed leases with popular
chains including Sonic Drive-In, Planet Fitness and
Krispy Kreme.
His latest development, The Shoppes at Sun Mountain,
is a significant stride in that direction. The 32-acre
property in Wasilla had previously been foreclosed
and languished vacant for years. “I have always had
an interest in developing the Sun Mountain property,”
Cameron says.
is expected to
Once completed, Sun Mountain
create hundreds of new jobs and provide Mat-Su
residents with new restaurant options, retail choices,
Northrim Bank has provided financing solutions for
Cameron’s businesses and developments since 2012.
“In 2019, I transferred all of my business banking
services from a national institution to Northrim
and I couldn’t be happier with that decision. Their
commitment to providing excellent customer service,
business solutions and an aligned vision of seeing
Alaska continue to thrive and grow has made Northrim
an incredible partner in my many business ventures in
the state,” Cameron says.
“Cameron and his partners have been important
customers for a long time. We’re pleased to have
earned more of his business,” says Sue Wolfe,
Northrim Vice President, Commercial Real Estate
Loan Officer.
“Northrim’s vision, innovative thinking, work ethic and
dedication in providing the most competitive financing
solutions for Sun Mountain played a vital role in its
success,” Cameron says. “Northrim took a chance
on me as a developer when other banks wouldn’t and
that’s something I won’t forget.”
SOUTH
CENTRAL
PG
10
COMPLEMENTING
COMMUNITY BANKING
In addition to community banking, Northrim has
interests in other lines of business, including
home mortgage lending, purchased receivables
financing and wealth management. These
subsidiaries, affiliates and divisions complement
our core community banking activity, strengthen
the diversity of our income streams, and enable
us to offer complete financial services to meet our
customers’ needs.
Northrim Investment Services provides investment
services through Elliott Cove Capital Management
and insurance products via Elliott Cove Insurance
Agency. Northrim Investment Services enables
the Bank to offer a range of relevant, best-in-class
financial products and services to meet the needs
of our business and individual customers.
PG
11
Northrim Funding Services, a division of the Bank,
purchases the accounts receivable of capital-
constrained small to mid-size businesses, as well
as businesses experiencing rapid growth or
change. The division also offers financial solu-
tions to transition customers back to conventional
bank lending programs.
Despite increased competition, Northrim Fund-
ing Services saw substantial growth in 2019, and
continued to grow its customer base in Alaska
and the Western United States.
Funding
Northrim
contributed
$3.3 million to other operating income in both
2019 and 2018.
Services
+ + + + +
interest
in Pacific
Northrim holds a 24%
Wealth Advisors, LLC, the holding company for
Pacific Portfolio Consulting, LLC and Pacific
Portfolio Trust Company (collectively, “Pacific
Portfolio”). Founded in 1992 and part of the
Northrim family since 2006, Pacific Portfolio
provides comprehensive financial guidance to
individuals, families and institutions.
Pacific Portfolio is led by founder, president and
CEO Larry Hood, who once again was included
in Barron’s prestigious annual ranking of Top
100 Independent Financial Advisors, moving up
seven spots to No. 61 in 2019. Pacific Portfolio
continues to grow its assets under advisement,
ending the year at $4.0 billion, one-third of
which are in Alaska.
company
The
to
Northrim’s other operating income in 2019,
compared to $231,000 in 2018.
contributed $305,000
Residential Mortgage has been a Northrim
affiliate since 1998, and became a wholly-owned
subsidiary in 2014. The company, which is the
leading mortgage loan originator in the state,
has a significant footprint across Alaska, with
offices in Anchorage, Juneau, Kodiak, Soldotna,
Eagle River, Fairbanks and the Mat-Su Region.
After flat performance over the past several
years, and coinciding efforts to reduce expenses
and improve efficiency, Residential Mortgage
operations
in 2019,
increased substantially
driven in part by lower mortgage interest rates.
While a part of the mortgage demand was due
to an increase in refinancing, purchase activity
was also up, increasing 7% year over year. In
2019, Northrim serviced 2,643 loans in our
home-mortgage-servicing
$659.0 million
portfolio, which is an 18% increase over the
prior year.
Mortgage banking operations contributed
$24.2 million to Northrim’s other operating
income in 2019, compared to $20.8 million
in 2018.
PG
12
COMMUNITY ENGAGEMENT
As a community bank in Alaska, we believe it is our
responsibility to be good community stewards,
actively vested in the communities where we live
and work. This engagement is modeled at the
top level of the Bank. From the boardroom to the
local branch, our employees are encouraged to
actively support issues, organizations and events
for which they are passionate.
Just as we take the time to understand the
financial needs of our customers, we take the
time to discern what is meaningful in each of our
communities, and our support and engagement
takes many forms. In 2019, we continued our
Lead Dog sponsorship of the Iditarod Trail Sled
Dog Race, an iconic Alaska event and a point of
pride for many Alaskans. We support the efforts
of United Way, both as an organization and as
individuals. Believing in the critical importance
of our state’s university system, we remain
steadfast supporters of University of Alaska
campuses across the state.
We spend time with local students through
our school-business partnerships. We share
expertise and encouragement through financial
literacy workshops at local shelters. We devote
time to serving on boards and committees
for a diverse array of nonprofit and industry
organizations throughout Alaska.
We are leaders in addressing issues of importance
to our state, from developing the next generation
of IT professionals, to influencing the economy
through efforts such as ongoing advocacy, and
educating Alaskans via our annual economic
luncheons and Alaskanomics blog.
PG
13
+ + + + + SET APART BY SUPERIOR SERVICE
Superior Customer First Service is a core Northrim
value, and through it, we strive to differentiate
ourselves from other financial institutions. Building
a reputation for this high level of service requires
the daily dedicated performance of each individual
employee within our Bank family. Our success is
directly attributable to the positive attitude, skills
and service of employees throughout the company,
from the branches to behind the scenes.
it
We believe
is essential to emphasize the
importance of Superior Customer First Service,
share how it’s making a difference and celebrate
those employees who have gone above and beyond
in providing it. Our Customer First Service Award
celebrates a select group of employees who have
exemplified this value in 2019. We honor them and
thank the many other employees who are dedicated
to providing Superior Customer First Service.
Back Row,
L to R
Jayme Griffin
Universal Banker,
Eagle River Branch
Bronte Howard
Universal Banker,
Wasilla Financial Center
Bill Kurtz
AVP, Branch Manager,
Midtown Financial Center
Angela Merculief
Bank Applications
Supervisor
Front Row,
L to R
Kimberly Farrell
Brewington
VP, Commercial Cash
Management Officer
Aiko Willborg
Compensation Analyst
Meliza Maluto
Electronic Banking
Operations Administrator
Sue Wolfe
VP, Commercial Real
Estate Loan Officer
Photo taken at Eastside Community Branch in Anchorage
PG
14
+ + + + + E A D E R S H I P
L
LEADERSHIP.
LONGEVITY.
LEVEL OF SERVICE.
Each day, our executive and senior management
teams offer a breadth of talent from diverse fields,
a deep level of expertise and strong commitment to
service. The Bank, along with our customers, directly
benefit from their longevity at Northrim, experience in
the industry, and connections in the community.
We are also grateful for the leadership and expertise
our board members bring from many different
sectors in order to provide trusted guidance and
direction for the future of the Bank.
PG
15
E
X
E
C U T I V E T E A
M
Mark Edwards
EVP, Chief Credit Officer
& Bank Economist
Mike Huston
EVP, Chief Lending
Officer
Joe Schierhorn
Chairman, President &
Chief Executive Officer
Jed Ballard
EVP, Chief Financial
Officer
Audrey Amundson
EVP, Director of Accounting,
Treasury & Financial
Planning
Lynn Wolfe
EVP, Chief
Administration Officer
Mike Martin
EVP, Chief Operating
Officer, General
Counsel & Corporate
Secretary
Benjamin Craig
EVP, Chief
Information Officer
PG
16
+ + + + + R
O
I
N
E
S
M A N A G E M E N
T
T
E
A
M
From
L to R:
Suzanne Whittle
SVP, Compliance
Manager
Todd Greimann
SVP, Regional
Market Manager
Catherine Claxton
SVP, Real Estate
Lending Manager
Linda Uttech
SVP, Facilities
Manager
Barb Ervin
SVP, Director of
Business Applications
Cindy Fields
VP, Internal Audit
Manager
Katie Bates
SVP, Director of
Electronic Channels
Kari Skinner
SVP, Marketing &
Communications
Director
Jason Criqui
SVP, Commercial
Lending Manager
Carolyn Jennings
SVP, Retail Banking
Manager
Amber Zins
SVP, Human
Resources Director
Dan Lowell
SVP, Northrim
Funding Services
Manager
Latosha Frye
SVP, Corporate
Accounting Manager
PG
17
+ + + + + B O A R D O F D I R E C T O R S
Joe Schierhorn
Director since 2016
Larry Cash
Director since 1995
Anthony Drabek
Director since 1991
Karl Hanneman
Director since 2014
David Karp
Director since 2015
David McCambridge
Director since 2011
Chairman,
Audit Committee
Krystal Nelson
Director since 2015
Chairman,
Compensation Committee
Aaron Schutt
Director since 2018
John Swalling
Director since 2002
Lead Director
Chairman, Governance &
Nominating Committee
Linda Thomas
Director since 2014
David Wight
Director since 2006
Joe Schierhorn
Chairman, President, CEO and COO,
Northrim BanCorp, Inc.
Chairman, President and CEO,
Northrim Bank
Larry Cash
CEO RIM Architects, LLC since 2017
(President from 1986-2016)
Executive Committee/Director
Anchorage Economic Development
Corporation (Emeritus)
Member/Manager of RIM Investments,
LLC
Board Trustee of Alaska Pacific
University (Emeritus)
Anthony Drabek
Director, Koniag, Inc., an Alaska Native
Corporation, since 2019
President and CEO, Natives of Kodiak,
Inc., an Alaska Native Corporation,
from 1989-2010
Chairman, Koncor Forest Products
Company, from 1986-2010 and President
from 2001-2010
Karl Hanneman
CEO and Director, International Tower
Hill Mines Ltd. (COO from 2015-2016,
Alaska General Manager from 2010-
2015)
Director, Fairbanks Chamber of
Commerce since 2010
Director, Usibeli Coal Mine, Inc. since
2011
Director, Sunshine Silver Mining &
Refining Corp. since 2018
David Karp
SVP, Managing Director, Alaska Saltchuk,
since 2019
President and CEO, Northern Aviation
Services, Inc. from 2011-2018
Director, Alaska Communications
Systems, Inc. since 2011
Member, National Air Carriers Association
David McCambridge
Audit Partner, KPMG LLP, from
1978-2010
Director and Treasurer of the Tanaka
Foundation from 1985-2015
Director, Great Alaska Council Boy
Scouts of America, from 1993-2012
Director Alaska Kidney Foundation
(since 1999) and President
Krystal Nelson
SVP and COO, Bering Straits Native
Corporation since 2014
SVP and COO, Ahtna Engineering
Services from 2007-2014
Recipient of Alaska Top 40 under
40 Award in 2004
Aaron Schutt
President and CEO, Doyon Limited,
an Alaska Native Corporation
since 2011 (COO from 2008-2011
and SVP from 2006-2011)
Director, Akeela, Inc., since 2001 and
Chair since 2018
Director, Alaska Native Heritage Center
from 2012-2019
Director, ANCSA Regional Association
and Chair since 2018
Board of Managers for Doyon Utilities,
LLC since 2007
John Swalling
President and Director, Swalling &
Associates, PCC, an accounting firm,
from 1991-2019
Director of Swalling Construction Co.,
Inc., from 1975-2018
Ernst & Young LLP, Partner from 1984-
1991
Director and past Chairman, Providence
Health & Services Alaska, from 1998-2019
Director and past Chairman, Visit
Anchorage, from 1986-2019
Director and Vice Chairman, CIVIC
Ventures, from 2005-2019
Linda Thomas
CEO, VP and Director, Alaskan Brewing &
Bottling Co. and its subsidiaries
since 2016 (CFO from 1994-1996,
COO from 1996-2016)
Director and Past President, Bartlett
Regional Hospital
Director and Past President, Juneau
Chamber of Commerce
David Wight
President and CEO, Alyeska Pipeline
Service Company from 2000-2005,
following a 41-year career with the
Amoco Corporation, which became
BP in 1999
Director, Storm Cat Energy from 2006-
2010
Director, Alaska Gasline Development
Corporation since 2016
PG
18
R
H
T
R
O
N
I M B A N K O F F
I
C
E
R
S
EXECUTIVE VICE PRESIDENTS
Audrey Amundson, Director of Accounting, Treasury & Financial
Planning*****
Benjamin Craig, Chief Information Officer**
Jed Ballard, Chief Financial Officer
Joseph Schierhorn, Chairman, President & Chief Executive
Officer*****
Lynn Wolfe, Chief Administration Officer*****
Mark Edwards, Chief Credit Officer & Bank Economist**
Michael Huston, Chief Lending Officer
Michael Martin, Chief Operating Officer, General Counsel &
Corporate Secretary*
SENIOR VICE PRESIDENTS
Amber Zins, Human Resources Director**
Barbara Ervin, Director of Business Applications***
Carolyn Jennings, Retail Banking Manager****
Catherine Claxton, Real Estate Lending Manager*****
Daniel Lowell, NFS Division Manager***
Jason Criqui, Commercial Lending Manager*
Kari Skinner, Marketing & Communications Director
Kathleen Bates, Director of Electronic Channels***
Latosha Frye, Corporate Accounting Manager**
Linda Uttech, Director of Facilities Operations*
Suzanne Whittle, Compliance Manager****
Todd Greimann, Regional Market Manager II
VICE PRESIDENTS
Adam Baxter, Commercial Loan Officer V*
Aili Peyton-Jalbert, Commercial Cash Management Officer
Allen Hippler, Commercial Loan Officer V*
Anita DeVore, Regional Sales & Service Manager***
Annette Delong, Construction Loan Unit Manager*
Bruce Tretzen, NFS Relationship Manager
Cynthia Fields, Internal Audit Director
Cynthia El-Khoury Hanna, Loan Documentation Manager
Darci Ornellas, Regional Sales & Consumer Lending Manager****
Douglas Frey, Security & Business Continuity Manager
Erick Stoeckle, Enterprise Architecture Manager*
Gerlie Monta-Guevarra, Branch Manager II*
Jaime Kissner, Commercial Loan Officer IV
James Beasley, Electronic Banking Manager
James Richards, Business Development Officer-Relationship Manager II*
Jason Gentry, Lending Branch Manager
Jeanine Lillo, Controller***
Joann Thayer, Commercial Cash Management Officer**
John Damjanovich, Commercial Real Estate Loan Officer V
Jonathan Tibbs, Commercial Loan Officer IV
Joseph Gelione, Commercial Loan Unit Manager
Josh King, NFS Assistant Division Manager**
Jyah Gitomer, Call Center Manager
Kathleen Martin, Construction Loan Officer V****
Kelly Lykins-Longlet, Risk Manager***
Kelly McCormack, Lending Team Lead**
Kimberly Farrell Brewington, Commercial Cash
Management Officer****
Lisa Adams, NFS Operations Manager**
Marc Guevarra, Commercial Loan Officer IV*
Michael Dye, Lending Branch Manager II
Mildred Sy, Special Credits & Loan Servicing Manager**
Nathaniel Olmstead, Data Analytics Manager
Phillip Reid, Commercial Loan Officer V
Ryan Caldwell, Systems & Network Manager
Scotty Watkins, Lending Team Lead
Sean Christian, Strategic & Planning Manager**
Sue Wolfe, Commercial Real Estate Loan Officer V*
Tammy Kosa, Regional Market Manager I***
Timothy Breeden, Commercial Loan Officer IV
William Simpson, Collections Supervisor**
PG
19
ASSISTANT VICE PRESIDENTS
Angela Bradford, Community Development &
Loan Compliance Manager*
Annie Her, Branch Manager I*
Aracelis Bell, NIS Relationship Banker***
Benjamin Schulman, Loan Officer III*
Bessie Paraoan, Special Credits Officer I**
Christopher Chambos, Retail & Investment Services Manager*
Danicia Shiryayev, Loan Officer III
Dawn Hoxie, Branch Manager II*****
Delores Siah, Branch Manager II*
Diana Soliday, Branch Manager II**
Eileen Kehoe, Mortgage Servicing Manager
Erika Bills, Business Banker III****
Erin Gage, Retail Banking Operations Manager****
Esther Fouts, Accounting Supervisor*****
James Larson, Special Credits Officer II
Jill Milham, Retail Banking Operations Assistant Manager*
Joseph Moran, Construction Loan Officer III*
Judith Schnese, Audit Manager**
Katherine Bender, Community & Public Relations Manager*
Kathleen Stilwell, Card Services Manager
Kelly Reynolds, Security Manager**
Kristi Dent, Consumer Lender II
Lawrence Gluck, Loan QA Officer
Maia Hernandez, Branch Manager I*
Marsha Fry, Commercial Real Estate Loan Officer III*****
Maureen Swartwood, Branch Manager II
Micah Scott, BSA & Deposit Compliance Manager**
Nicole Pintsch, Assistant Controller**
Reynold Thomas Udarbe, Branch Manager I*
Rick Pinkerton, Loan Review Officer***
Rodlynn Smallwood, Operations Support Manager**
Seane English, Credit Administration Operations Manager*
Susan Kurtz, Branch Manager I
Susan Stenstrom, Assistant Corporate Secretary**
Tammi Whistler, Loan Administrative Officer*
Teressa Saaiman, Branch Manager I*
William Kurtz, Branch Manager II
Leary David, Branch Manager I**
Yana Milette, Electronic Banking Operations Manager
OFFICERS
Astrid Erdman, Business Banker I
Blake Rod, Assistant Branch Manager
Brian Leonard, Assistant Branch Manager II*
Brigitte Lampert, Assistant Branch Manager**
Christina Clayton, Assistant Branch Manager
Christina Lawrence, Assistant Branch Manager II****
Cindy Cheely, Business Banker II**
Criselda Parrocha, Business Banker I****
Dagmar Sanchez, Senior Training Specialist*****
Daisy Arce, Assistant Branch Manager*
Deatrice Swazer, Senior Real Estate Valuation Officer***
Deborah Bolton, Assistant Branch Manager**
Ervin Hetemi, Loan Officer II
Fejie Monta-Carandang, Assistant Branch Manager*
Heidi Hurben, Assistant Branch Manager
Jay Gilling, Security Officer*
Joohee Ok, Call Center Assistant Manager*
Justin Jay, Assistant Branch Manager
Katreena Little, Assistant Branch Manager II**
Lillian Owens, Loan Officer II*
Lindsay Atkins, Assistant Branch Manager*
Maricel Bratcher, Assistant Branch Manager***
Mary Fox, Special Credits Associate Officer***
Megan Liska, Corporate Training Manager
Milagros Castiglione, Business Banker I***
Neddie Manabat, Assistant Branch Manager II*
Nicole Shook, Operations Support Assistant Manager****
Pamela Oberts, Assistant Branch Manager
Paula Duracinski, Facilities Manager****
Rosemarie Yadao, Assistant Branch Manager*
Sarah Maycock, Electronic Banking Support Manager
Sathiane Sikeo, Assistant Branch Manager**
Stephanie Love, Marketing & Sales Manager
Susan Peach, Real Estate Valuation Officer*
Terre Lefebvre, Merchant Relationship Manager***
Tiana Allen, Special Credits Associate Officer
AVP and above as of 1/30/2020: * ≥ Five-year employee, ** ≥Ten-year employee,
*** ≥ Fifteen-year employee, **** ≥Twenty-year employee, ***** ≥Twenty-five-year employee
PG
20
+ + + + +
N
O
I
S
S
I
M
·
V I S I O N · V
A
L
U
E
S
MISSION
To be Alaska’s most trusted financial institution
We are committed to adding value for our customers, communities, and shareholders.
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
WE ARE
Proud to be Alaskan
We are Alaskan managed. We embody Alaska’s frontier
spirit and values, and strongly support our communities.
Engaged
We achieve more because we are
dynamic, proactive, and innovative.
Superior Customer First Service
We have a sincere appreciation for our customers. We want
to build lasting customer relationships through professional,
prompt, and caring service.
Accountable
We take personal responsibility.
We do what we say we will do.
Growth
We look for growth opportunities for our customers,
our institution and our employees. We strive to be better,
personally and professionally.
Integrity
We are trustworthy, reliable, and ethical, and provide our
customers with secure, confidential services. We do what
is right.
Aligned
We value alignment within teams and
across departments. Together we are
stronger.
PG
21
I N F O R M A T I O N & A D D R E S S E S
Annual Meeting:
May 28, 2020, 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 Information:
For stock information and SEC filings, copies of earnings and dividend
releases, click on “Investor Relations” section at northrim.com
Investor Requests:
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.
An Equal Opportunity and Affirmative Action Employer. Qualified applicants
and employees receive consideration for employment without regard to
race, color, religion, sex, sexual orientation, gender identity, age, national
origin, physical or mental disability, protected veteran status, pregnancy,
parenthood, marital status, changes in marital status, genetic information
or any other status protected by federal, state or local law.
Cautionary note regarding
forward-looking statements
This report contains 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 are, in effect,
management’s attempt to predict future events, and
thus are subject to various risks and uncertainties.
Readers should not place undue reliance on forward-
looking statements, which reflect management’s
views only as of the date hereof. When used herein, the
words “anticipate,” “believe,” “estimate,” “expect,” and
“intend” and words or phrases of similar meaning are
intended to help identify forward-looking statements.
Although we believe that management’s expectations
as reflected in forward-looking statements are
reasonable, we cannot assure readers that those
expectations will prove to be correct as 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.
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
Securities and Exchange Commission. Forward-looking
statements contained herein are made only as of the
date of this report, and Northrim does not undertake
any obligation to release revisions to these forward-
looking statements to reflect events or conditions after
the date of this report.
Financial Snapshot Endnotes:
(*) Refer to the Company’s Form 10-K at northrim.com for further discussion of non-GAAP ratios.
(1) These unaudited schedules provide selected financial information concerning the Company’s Form 10-K.
(2) Tangible book value per share is a non-GAAP ratio defined as shareholders’ equity, less intangible assets, divided by common shares outstanding.
(3) Tangible common equity to tangible assets is a non-GAAP ratio that represents total equity less goodwill and intangible assets divided by total assets less goodwill and intangible assets.
(4) 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 28.43% in 2019 and 2018 and 41.11% in all other years presented.
(5) In managing our business, we review the efficiency ratio exclusive of intangible asset amortization, which is a non-GAAP performance measurement. The efficiency ratio is calculated by
dividing other operating expense, exclusive of intangible asset amortization, by the sum of net interest income and other operating income.
(6) Number of banking offices does not include Residential Mortgage Lending locations. 2018 number includes 15 full service branches and one loan production office.
(7) FTE includes 311, 320, 314, 321, 317, and 309 Community Banking employees in 2019, 2018, 2017, 2016, 2015 and 2014, respectively. FTE includes 120, 110, 115, 130, 124, and 117 Home
Mortgage Lending employees in 2019, 2018, 2017, 2016, 2015 and 2014, respectively.
PG
22
ANCHORAGE
Northrim Headquarters
PO Box 241489
Anchorage, AK 99524
(907) 562-0062
(800) 478-2265 outside Anchorage
northrim.com
Eastside Community Branch
7905 Creekside Center Drive,
Suite 100
Huffman Branch
1501 E. Huffman Road
Jewel Lake Branch
9170 Jewel Lake Road
Lake Otis Community Branch
2270 E. 37th Avenue
Midtown Financial Center
3111 C Street
Seventh Avenue Branch
517 W. 7th Avenue, Suite 300
Southside Financial Center
8730 Old Seward Highway
West Anchorage Branch
2709 Spenard Road
EAGLE RIVER
Eagle River Branch
12812 Old Glenn Highway, Suite CO3
WASILLA
Wasilla Financial Center
850 E. USA Circle, Suite A
(907) 376-0357
FAIRBANKS
Fairbanks Financial Center
360 Merhar Avenue
(907) 455-1111
SOLDOTNA
Soldotna Financial Center
44384 Sterling Highway, Suite 101
(907) 260-7669
JUNEAU
Juneau Financial Center
2094 Jordan Avenue
(907) 789-4844
Juneau Downtown Branch
301 N. Franklin Street
(907) 789-4844
SITKA
Sitka Financial Center
315 Lincoln Street, Suite 206
(907) 747-8688
KETCHIKAN
Ketchikan Financial Center
2491 Tongass Avenue
(907) 225-4545
BELLEVUE, WASHINGTON
Northrim Funding Services
170 120th Avenue N.E., Suite 202
PO Box 50245
Bellevue, WA 98015
(425) 453-1105
HOME MORTGAGE LENDING
Residential Mortgage, LLC
Headquarters
100 Calais Drive
Anchorage, AK 99503
(907) 222-8800
residentialmtg.com
10 locations statewide
AFFILIATED COMPANIES
Northrim Investment Services
3111 C Street
Anchorage, AK 99503
(907) 562-0062
Pacific Portfolio Consulting, LLC
and Pacific Portfolio Trust Company
Columbia Center
701 5th Avenue, Suite 6850
Seattle, WA 98104
(206) 623-6641
pacific-portfolio.com
# A C H I E V E M O R E
+ + + + +