Northrim BanCorp, Inc.
Annual Report
Annual Report
20 21
20 21
Annual Report
Message to Shareholders
Joe Schierhorn
For Northrim Bank (the Bank), 2021 was a year of growth and profi tability, driven by our
employees and our commitment to community.
We opened a new branch in Fairbanks, expanding in response to our customers’
needs. We att racted talented new bankers, who brought experti se and relati onships
that helped drive our growth across all markets. We enhanced customer relati onships
through dedicated outreach, and we conti nued to invest in our people, products and
services to meet our customers’ increasingly sophisti cated needs.
The Bank ended the year with net income of $37.52 million, an increase of 14% from
2020. Total assets increased to $2.72 billion, up 28% from a year ago. Total revenue was
$133.1 million, compared to $134 million for 2020.
Our improved profi tability in 2021 was due to fee and interest income from the Small
Business Administrati on’s (SBA) Paycheck Protecti on Program (PPP) loans, strong core
loan and deposit growth and conti nued high levels of producti on at our wholly-owned
subsidiary, Residenti al Mortgage.
Through our acti ve parti cipati on in the PPP, we helped both new and existi ng customers
sustain their business operati ons as the pandemic conti nued to impact the economy.
Northrim was the largest originator of PPP loans in Alaska.
Our PPP eff orts brought more than 2,300 new customers to the Bank, and we are
working hard to develop full banking relati onships with these businesses. We are proud
of the work we are doing to address the needs of our customers, and as a result, we are
growing our market share across all of our major markets.
Our employees’ outreach to customers, including those introduced to the Bank through
the PPP, had a meaningful impact on core loan and deposit growth in 2021. Portf olio
loans excluding the impact from PPP were $1.3 billion for 2021, up 14% from the year
prior. Total portf olio loans were $1.41 billion, down 2% from a year ago, a result of PPP
loan forgiveness. Total deposits were $2.42 billion at year-end, up 33% from a year ago,
with a large porti on of growth coming from new customers gained through the PPP.
Producti on at Residenti al Mortgage was another important driver of our 2021
profi tability. The company conti nued to provide Alaskans with industry-leading service
and experti se, originati ng $1.1 billion in mortgages in 2021, making them Alaska’s
leading mortgage loan originator.
1
We Bank on Alaskans
In spite of historically low interest rates, net interest income for 2021 was $80.8 million, up 14% from 2020. Excluding
PPP interest and fees, core net interest income in 2021 increased 5% to $65.4 million, compared to $62.6 million in 2020,
and our net interest margin at the end of 2021 remains above peer average.
Also contributi ng to our 2021 results was a $4.1 million benefi t to the provision for credit losses, compared to a $2.43
million provision for credit losses in 2020. Higher credit quality and improving economic conditi ons in the state were
major factors in this shift .
Northrim conti nues to maintain capital levels in excess of the requirements needed to be categorized as “well-capitalized.”
We conti nued our stock repurchase program, which is an important component of our capital plan, repurchasing a total
of 279,276 shares. We increased our shareholder dividend twice in 2021, for an increase of 9% from 2020, highlighti ng
the Bank’s steady growth and solid capital positi on, and commitment to increasing returns to our shareholders.
Our 2021 results refl ect the eff ort of our employees to meet the needs of our community. In additi on to serving
Alaskans’ banking needs, we also serve our communiti es through fi nancial support and volunteerism. We increased our
community giving in 2021, both at the Bank and individual employee level, and volunteer hours increased from 2020 as
we found creati ve ways to be involved in the community during these challenging ti mes.
As we moved through the second full year of the pandemic, a thoughtf ul combinati on of teamwork, customer and
employee safety measures, processes and IT infrastructure allowed us to keep our branches operati onal and provide
our customers with a consistently high level of service. We are deeply appreciati ve of our employees’ eff orts and their
unwavering dedicati on to providing Superior Customer First Service.
As Alaska’s local, community bank, we are grateful for the opportunity to serve the customers and communiti es of our
state, and we look forward to conti nuing to grow together.
Joe Schierhorn
Joe Schierhorn
Chairman, President, CEO and COO, Northrim BanCorp, Inc.
Chairman, President and CEO, Northrim Bank
Annual Report | 2021
2
2021 Financial Snapshot(1)
2021
2020
2019
2018
2017
2016
Five-Year
Compound
Growth Rate
Net interest income
Provision (benefit) for credit losses
Other operating income
Compensation expense, RML acquisition payments
Other operating expense
Income before provision for income taxes
Provision for income taxes
Net income
Less: Net income attributable to noncontrolling interest
Net income attributable to Northrim Bancorp, Inc.
Year-End Balance Sheet
Assets
Loans
Deposits
Shareholders’ equity
Common shares outstanding
Average Balance Sheet
Assets
Earning assets
Loans
Deposits
Shareholders’ equity
Basic common shares outstanding
Diluted common shares outstanding
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
Nonperforming loans, net of government guarantees
Nonperforming assets, net of government guarantees
Nonperforming loans, net of government guarantees/portfolio loans
Net charge-offs (recoveries)/average loans
Allowance for credit losses/portfolio loans
Nonperforming assets, net of government guarantees/assets
Other Data
Effective tax rate(6)
Number of banking offices(7)
Number of employees (FTE)(8)
$80,827
(4,099)
52,263
-
89,196
$47,993
10,476
37,517
-
$37,517
$2,724,719
1,413,886
2,421,631
237,817
6,014,813
$2,432,599
2,260,778
1,478,318
2,125,080
239,214
6,180,801
6,249,313
$6.07
$6.00
$39.54
$36.88
$1.50
1.54%
15.68%
8.73%
8.19%
3.58%
3.60%
39.27%
66.99%
25.02%
$10,672
$15,031
0.75%
0.07%
0.83%
0.55%
22%
18
451
$70,665
2,432
63,328
-
89,114
$42,447
9,559
32,888
-
$32,888
$2,121,798
1,444,050
1,824,981
221,575
6,251,004
$1,936,047
1,758,839
1,339,908
1,638,216
211,721
6,354,687
6,431,367
$5.18
$5.11
$35.45
$32.88
$1.38
1.70%
15.53%
10.44%
9.76%
4.02%
4.05%
47.26%
66.47%
26.66%
$10,048
$16,289
0.70%
0.03%
1.46%
0.77%
23%
17
438
$64,442
(1,175)
37,346
468
76,370
$26,125
5,434
20,691
-
$20,691
$1,643,996
1,043,371
1,372,351
207,117
6,558,809
$1,555,707
1,386,557
1,010,098
1,276,407
208,602
6,708,622
6,808,209
$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%
$13,951
$19,946
1.34%
(0.07)%
1.83%
1.21%
21%
16
431
$61,208
(500)
32,167
-
69,800
$24,075
4,071
20,004
-
$20,004
$1,502,988
984,346
1,228,088
205,947
6,883,216
$1,493,385
1,346,449
971,548
1,227,272
201,022
6,877,573
6,981,557
$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%
$14,694
$22,619
1.49%
0.15%
1.98%
1.50%
17%
16
430
$57,678
3,200
40,474
130
71,023
$23,799
10,321
13,478
327
$13,151
$1,518,596
954,953
1,258,283
192,802
6,871,963
$1,511,052
1,367,203
981,001
1,248,333
193,129
6,889,621
6,977,910
$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%
$21,411
$28,729
2.24%
0.15%
2.25%
1.89%
43%
14
429
$56,357
2,298
43,263
4,775
71,505
$21,042
6,052
14,990
579
$14,411
$1,525,851
974,074
1,267,653
186,712
6,897,890
$1,506,522
1,361,913
976,613
1,250,243
181,628
6,883,663
6,974,864
$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%
$12,936
$19,315
1.33%
0.08%
2.02%
1.27%
29%
14
451
7%
NM
4%
(100)%
5%
18%
12%
20%
(100)%
21%
12%
8%
14%
5%
(3)%
10%
11%
9%
11%
6%
(2)%
(2)%
24%
24%
8%
8%
14%
10%
15%
(7)%
(6)%
(3)%
(3)%
(2)%
(3)%
(8)%
(4)%
(5)%
(11)%
(3)%
(16)%
(15)%
(5)%
5%
- %
3
We Bank on Alaskans Banking on Alaska Businesses
Northrim was founded as a commercial bank, and
that remains true today. We believe it is important for
Alaska businesses to have a dedicated financial team
that understands the local economy, and the obstacles
and opportunities of operating a business in challenging
environments. Northrim has that expertise, and we are
committed to sharing it for the benefit of the business
community.
This commitment was demonstrated clearly over the
past two years through our participation in the Small
Business Administration’s (SBA) Paycheck Protection
Program (PPP). We originated more PPP loans than
any other bank in Alaska, both in number of loans and
in dollar amount, providing the assistance businesses
required to survive in the face of tremendous
challenges.
Under the initial program, we helped approximately
2,900 businesses receive $375.6 million in PPP loans.
During the second round, we helped approximately
2,870 businesses receive $237 million in PPP loans.
Northrim was recognized as the SBA’s 2020 Top Lender
of the Year for the state of Alaska.
We are proud to contribute to the strength of
Alaska by supporting the businesses that form
the foundation of our state’s economy.
Annual Report | 2021
4
CITC
Net Income Att ributi on to Northrim BanCorp, Inc.
(in thousands)
Total Assets
(in thousands)
$40k
$35k
$30k
$25k
$20k
$15k
$10k
$5k
5
5
5
$0k
$13,151
$37,517
$32,888
$3m
$2.5m
$2m
2,724,719
2,121,798
$20,691
$20,004
$1.5m
1,643,996
1,518,596 1,502,988
$1m
$500k
$0
We Bank on Alaskans
We Bank on Alaskans
2017
2018
2019
2020
2021
2017
2018
2019
2020
2021
From PPP to Full Banking Relationships
Through the Paycheck Protecti on Program
(PPP), we off ered assistance to both existi ng
and new customers, working with them as their
needs changed and providing soluti ons tailored
to their circumstances. Our responsiveness,
experti se and high level of service throughout
the PPP process helped us att ract 2,300 new
customers to the Bank.
The PPP process helped
us attract 2,300 new
customers to the Bank.
While the number of businesses served in the fi rst and second rounds of PPP were comparable, our increased
experience, IT infrastructure, automated systems and incredible teamwork resulted in a highly streamlined
process in 2021. This allowed us to produce a signifi cant volume of PPP loans in a shorter period of ti me, providing
a bett er experience for both customers and employees.
Our increased internal effi ciency enabled us to adjust employee resources from loan processing to customer
outreach, with a focus on converti ng new PPP customers into full banking relati onships. This led to signifi cant loan
and deposit growth in 2021, with growth geographically diversifi ed across all of our markets. In 2020 and 2021,
$63 million, or 25% of our core loan growth, and $119 million, or 11% of our deposit growth, came from new
customers obtained from our PPP eff orts over the last two years. As a community leader, the Bank reached out to
nonprofi ts and new customers to ensure they were able to apply for PPP loans.
Portf olio Loans
(in thousands)
Total Deposits
(in thousands)
1,444,050
1,413,886
1,043,371
954,953
984,346
$1.6m
$1.4m
$1.2m
$1m
$800k
$600k
$400k
$200k
$0
2,421,631
1,824,981
1,258,283
1,228,088
1,372,351
$2.5m
$2m
$1.5m
$1m
$500k
$0
6
2017
2018
2019
2020
2021
2017
2018
2019
2020
2021
Customer-Driven Growth
Listening and responding to the needs of our customers and communiti es led to conti nued growth of our places,
people, processes, and products and services in 2021.
Places
To bett er serve our customers, we opened our second Fairbanks branch in the fi rst quarter of 2021, further
diversifying our geographic footprint throughout Alaska. Our decision to expand during a ti me when some other
banks are contracti ng was validated by our customer, loan, deposit and market share growth in 2021.
We also made investments in several of our existi ng faciliti es, including energy effi ciency upgrades that will help us
reduce energy consumpti on and expense.
People
Northrim has a history of att racti ng talented bankers, and that success conti nued in 2021 as we added members to
our team in communiti es across Alaska. These new employees brought both experti se and new relati onships with
them, adding value to the Bank and further encouraging our growth.
We added another experienced lender to our Kodiak loan producti on offi ce, which opened in spring 2020,
enhancing our presence in that market and allowing us to serve more borrowers in the community. We also
expanded our lending staff in Soldotna to meet customer needs on the Kenai Peninsula.
Total Capital Ratio
14%
14.5%
15%
15.5%
16%
16.5%
17%
14.79%
15.46%
15.63%
15.90%
16.73%
Nonperforming Assets (NPA) | (in thousands) Net of Government Guarantees
$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$15,031
0.55%
$16,289
0.77%
$19,946
1.21%
$22,619
1.50%
$28,729
1.89%
2021
2020
2019
2018
2017
2021
2020
2019
2018
2017
Composition of Northrim BanCorp Equity | (in millions) Capital as of December 31, 2021
-$100
-$50
$0
$50
$100
$150
$200
$250
$300
$350
Total Capital Raised
Cumulati ve Earnings
$45
Cumulati ve Dividends Paid
-$96
Repurchases, Equity Compensati on,
Costs of Capital Raises, and Other
Total Equity
7
7
7
-$41
$329
$238
We Bank on Alaskans
We Bank on Alaskans
Processes
We maintained our investments in IT infrastructure,
which facilitated employee communicati on and
collaborati on both in-offi ce and remotely, so we could
seamlessly serve our customers, whether physically in
the branch or virtually online. We also upgraded our
online banking platf orm for an improved customer
experience.
Products and Services
We conti nued to invest in products and services
to address the needs of larger and increasingly
sophisti cated customers. We rebranded our treasury
management services in 2021 and hired a new
director of treasury management, who is leading the
development of enhanced products and services for
our customers.
Loan Portfolio | As of December 31, 2021
Deposits | As of December 31, 2021
3% | Consumer
8% | Constructi on
46% | Commercial
7% | Time
13% | Money
Market
14% | Savings
37% | Demand
43% | Commercial
Real Estate
29% | Interest-Bearing
Demand
Annual Report | 2021
8
+
H I G H L I G H T S
+
Role of Residential Mortgage
With offi ces in Anchorage, Juneau, Kodiak, Soldotna, Eagle River, Fairbanks and the Mat-Su Region, our
wholly-owned subsidiary, Residenti al Mortgage Lending, LLC, retained their positi on as a market leader for
mortgage loan originati ons in Alaska.
Solid residenti al mortgage business conti nued to add strength to the Bank in 2021. Residenti al Mortgage
originated $1.1 billion in mortgage loans in 2021, compared to $1.3 billion in 2020. Home mortgage lending
provided 25% of the Bank’s total revenue and 5% of earnings in 2021.
While refi nance acti vity slowed slightly compared to the record-setti ng pace of 2020, new home purchases
remained strong in 2021 as homebuyers conti nued to take advantage of interest rates that were at
near-historic lows.
Residenti al Mortgage’s keys to success are their long-standing relati onships and returning customer base,
earned through their team’s responsive service and extensive experience. The company deepened its mortgage
and executi ve experti se in 2021 with the additi on of a new chief operati ng offi cer, who brings many years of
mortgage experience to the company.
9
9
We Bank on Alaskans
We Bank on Alaskans
+
C U S T O M E R P R O F I L E
+
We Bank on Alaskans:
Cook Inlet Tribal Council
People. Partnership. Potenti al. This is what Cook Inlet Tribal Council (CITC) is all about. When the Southcentral
Alaska-based tribal nonprofi t organizati on takes on new projects, they search for new partners to engage with –
especially partners who invest in the community they serve. So when CITC was looking to acquire property for
their latest project – the Super Fab Lab – they connected with Northrim.
“CITC knows how acti ve Northrim is in the community and appreciates the important role they play in
philanthropy and as a banking insti tuti on for Alaskans,” says Amy Fredeen, CITC’s Chief Financial Offi cer. “Thanks
to their great reputati on in Alaska, CITC is excited to partner with Northrim on this incredible project.”
The Super Fab Lab is a milestone in CITC’s eff orts to grow Science, Technology, Engineering and Math (STEM)
learning for Alaska Nati ve/American Indian youth. In 2013, CITC created the original Fab Lab, an educati onal space
that challenges students to develop hands-on STEM skills.
The expanded Super Fab Lab will add capacity for students and programs, increasing access to the latest design
and fabricati on technology. It will also be a hub for entrepreneurs developing the products and businesses of
tomorrow.
Aft er acquiring the property, CITC partnered with Northrim on the renovati on of the Super Fab Lab, which they
hope to open in winter 2022-23. Northrim also helped CITC acquire a warehouse property for storage, providing
CITC with a new earned income stream to support their mission.
“Going into these projects during the pandemic was a unique situati on,” Fredeen notes. “Northrim went above
and beyond to make sure the pandemic didn’t impact the additi on of these important assets for CITC’s mission.”
CITC has more than doubled in size in the last two years – and has much more planned. “CITC will conti nue
working to open new paths to opportunity and potenti al for Our People no matt er what obstacles we may face,”
Fredeen says. “To be successful, we know we need great partners on this journey with us.”
“Northrim’s focus is on being an outstanding partner
to the community and Alaska businesses. It’s great to
collaborate with an organizati on like CITC that is so
aligned with the community and to be able to help
them with their projects,” says Bond Stewart, Northrim
Vice President, Commercial Real Estate Loan Offi cer.
“We really appreciate CITC working with Northrim
and look forward to working together on future
projects to help the Alaska Nati ve and American Indian
community.”
Annual Report | 2021
CITC
10
Diversifying Services and Revenue Sources
In addition to home mortgage lending, Northrim has interests in other businesses, including purchased receivables
financing and wealth management. These investments allow us to provide additional services to our customers,
while diversifying our revenue sources and adding strength to our non-interest income. Other operating income
contributed $52.3 million, or 39% of revenues, in 2021, compared to $63.3 million, or 47% of revenues, in 2020.
Northrim Funding Services
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 solutions to transition customers back to other bank
lending programs.
Northrim Funding Services saw a rebound in 2021, after a decrease in
activity in 2020 due to many of its customers obtaining PPP loans or
receiving loan accommodations. As the economy began to recover in
2021, the division saw balances increase to nearly pre-pandemic levels.
Northrim Funding Services contributed $2.3 million to other operating
income in 2021, compared to $2.7 million in 2020.
Northrim Investment Services
Northrim Investment Services offers investment services through Elliott
Cove Capital Management and insurance products via Elliott Cove
Insurance Agency. Through this relationship, our business and individual
customers can access a range of financial products and services.
In 2021, Northrim Investment Services continued to offer diversified
portfolios to our customers.
Pacific Portfolio
Pacific Wealth Advisors is the holding company for Pacific Portfolio
Consulting, LLC and Pacific Portfolio Trust Company (Pacific Portfolio).
Founded in 1992 and part of the Northrim family since 2006, Pacific
Portfolio is an independent wealth management and investment advisor
serving high-net-worth individuals and families, as well as institutions,
foundations, and trustee- or participant-directed retirement plans.
Pacific Portfolio had a strong year, growing assets under advisement
and adding strength to their organization through the hiring of a chief
operating officer at the end of 2020. For the seventh year in a row, the
company’s founder, President and CEO Larry Hood was recognized by
Barron’s as one of America’s Top 100 Independent Financial Advisors
in 2021.
The company contributed $92,000 to Northrim’s other operating
income in 2021, compared to $243,000 in 2020.
11
We Bank on Alaskans
+
C U S T O M E R P R O F I L E
+
We Bank on Alaskans:
Kenaitze Indian Tribe
The mission of the Kenaitze Indian Tribe, located on Alaska’s Kenai Peninsula, is “To assure Kahtnuht’ana Dena’ina
thrive forever.” The Tribe was federally recognized as a sovereign, independent nati on in 1971. Today, they have
more than 1,800 Tribal Members who live across the Kenai Peninsula and beyond.
The Tribe’s more than 300 employees deliver a variety of programs and services that promote the wellness of
their people and the community. The Dena’ina Wellness Center, the Tribe’s integrated healthcare facility, as well
as tribal justi ce system, educati on programs, an Elder center, and social and family services are among the Tribe’s
current eff orts – and much more is on the horizon.
The Tribe has experienced tremendous growth over the past decade. As the Tribal Council and administrati on
look to the future, they are working to ensure that growth is sustainable, and that the Tribe’s membership and
community conti nue to thrive.
The Tribe is currently constructi ng the Kahtnuht’ana Duhdeldiht Campus, a 67,000-square-foot facility that will
house the Tribe’s educati on programs, which focus on language and culture preservati on.
Also in progress is a new transportati on building, named Hetl Qenq’a, or “Sled House,” which will provide a hub for
the Tribe’s vehicle fl eet. The Tribe also plans to pilot a fi xed-route bus service for the central Kenai Peninsula.
Planning is also underway for a new pavilion at the Tribe’s educati onal fi shery at the mouth of the Kenai River, and
they are expanding their Tribal Court facility to meet the Tribe’s growing needs.
The Tribe began working with Northrim in spring 2021, choosing the Bank for its return on investment,
competi ti ve fee structure and responsive local support. The Tribal Council recognizes it is important to be good
stewards of resources, including fi nancial resources. While the Tribe’s primary focus in selecti ng a fi nancial
partner was stewardship of resources, leadership said fi nding that partner in a local Alaska bank has been an
added benefi t.
“Since my childhood on the Kenai Peninsula, the
Kenaitze Indian Tribe has remained a leader both
in terms of our community and our economy,” says
Mike Dye, Northrim Vice President and Lending
Branch Manager in Soldotna. “We are honored
that the Kenaitze Indian Tribe selected Northrim as
their fi nancial partner, and we are excited to play a
role in supporti ng their conti nued growth to serve
their people and our community into the future.”
Annual Report | 2021
12
Kenaitze
A Leader in Community Commitment
As Alaska’s local, community bank, we feel a responsibility to take a leadership role in building the communiti es we
serve. This commitment has been a core value since the Bank began, and we are proud of our conti nued ability to
share our success to improve the quality of life in our communiti es.
When community needs shift ed and grew due to the pandemic, so did our giving. We made new contributi ons to
organizati ons including Cook Inlet Soccer Club and the University of Alaska Anchorage athleti cs program, as well as
increased giving to the Alaska Nati ve Heritage Center, United Way and the University of Alaska.
We conti nued support of organizati ons forced to postpone or cancel events, and we were fl exible with our
donati on request deadlines. We modifi ed our School-Business Partnerships, focusing on donati ons that helped
connect students to the community whether from home or the classroom.
Our employees also demonstrated their generosity through increased giving in 2021. Together, we increased
our annual United Way campaign and have contributed nearly $2.5 million to support United Way since the
Bank was founded.
In additi on to fi nancial contributi ons, we acti vely encourage employee volunteerism, both during work hours
and personal ti me. Volunteer hours increased from 2020 as in-person opportuniti es began to return. In 2021,
Northrim employees gave more than 1,343 hours of their ti me, supporti ng a wide range of community acti viti es
and causes.
Our employees also serve in leadership roles with professional and nonprofi t organizati ons, adding value by
sharing their passion and experti se in the community. Our team gave presentati ons on government assistance
programs and other fi nancial topics, and we presented a virtual economic event for our customers and employees,
as we were once again unable to hold our in-person event due to pandemic precauti ons.
Our employees also serve in leadership roles with
professional and nonprofit organizations, adding value
by sharing their passion and expertise in the community.
Facilitati ng the availability of aff ordable housing for Alaska families conti nued to be a priority for the Bank in
2021. We were honored to receive the Charles L. Edson Tax Credit Excellence Award from the Aff ordable Housing
Tax Credit Coaliti on for our involvement in the Coronado Park II/Qintali View project, which provides safe,
quality aff ordable housing to residents of Eagle River. We were pleased to work with project partners Cook Inlet
Housing Authority, R4 Capital, The Rasmuson Foundati on and the Federal Home Loan Bank of Des Moines on this
important eff ort.
13
We Bank on Alaskans
Environmental, Social and Governance
In 2021, Northrim began work on our initi al environmental, social and governance (ESG) report, which was
published on the Bank’s website in the fi rst quarter of 2022. We believe we have built a strong foundati on in these
areas, as they have been integral to Northrim throughout our history.
The ESG report highlights our hard work and achievements in areas including energy effi ciency; diversity, equity
and inclusion; workplace fl exibility; employee training, health and wellness; volunteerism and giving; support of
small businesses and low- and moderate-income communiti es; and compliance, management and marketi ng. We
look forward to conti nually enhancing these practi ces for the benefi t of the customers and communiti es we serve.
Annual Report | 2021
14
14
Talent and Teamwork
Northrim Bank is a collection of our people, and our success is the result of their dedication and effort.
Throughout our history, we have been successful in attracting the right people with the right expertise and
the right attitude.
In 2021, our people demonstrated their ability to work together as a team to care for our customers and the
community, while adjusting to a changing environment, to produce a year of strong growth and profitability.
We feel pride in seeing employees from different departments throughout the Bank collaborating and taking
on new roles to provide services that, in many cases, were essential for customers to remain in business. Our
employees understand the importance of their work to our customers and community, and this sense of purpose
drives them to put forth their best effort every day.
In line with our Vision to be Alaska’s Employer of Choice, we are purposeful in supporting our employees, so they
can remain highly focused on our customers. In 2021, we created the foundations for an employee development
program with the goal of building the next generation of Bank leaders internally. We also continue to promote
from within and recognize the growing expertise and capabilities of our employees.
Our people demonstrated their ability to work together
as a team to care for our customers and the community.
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We Bank on Alaskans
We Bank on Alaskans +
C U S T O M E R P R O F I L E
+
We Bank on Alaskans:
American Mechanical
From designing and building state-of-the-art aircraft
hangars at Fairbanks Internati onal Airport, to installing
window walls at a 28-story apartment building in
Waikiki, American Mechanical, Inc. and its family of
companies play an important role in shaping Interior
Alaska – and beyond.
Founded in 1982 by Dennis L. Michel, American
Mechanical provides general contracti ng, design-build,
and general building/faciliti es maintenance and repair
to commercial and industrial customers throughout
Alaska.
American-Bucher JV is a Fairbanks-based joint venture
between American Mechanical and Bucher Glass that
installs curtain/window walls, exterior metal and glass
fi nish products in commercial and residenti al high-rise
buildings in Hawaii.
Omni Logisti cs, Inc. is an aviati on ground handling
company at Fairbanks Internati onal Airport providing
aircraft , security and passenger services for its airline
partners, which range from small commuters, to
commercial airlines and cargo aircraft .
Arcti c Sands LLC is a real estate and equipment leasing
company that services the family of companies’ capital
expenditure needs.
As an Alaska Nati ve, family-owned company with a long
history and deep roots in the community, the Michels
believe in the importance of giving back. This includes
sponsoring a wide variety of youth organizati ons. They
also strive to provide sustainable wages and steady
employment for employees.
“Being locally owned and operated means that every
dollar of revenue that fl ows through our companies
stays in the local community. We are proud of that,”
says Dennis L. Michel II, President of Omni Logisti cs.
The multi -faceted family of companies began working
with Northrim in 2020, starti ng with a line of credit for
American-Bucher JV and expanding into a full banking
relati onship, including assistance with a PPP loan.
“Like a lot of companies during the pandemic, we
applied for a PPP loan. American Mechanical had
a very good experience with Northrim to get this
done. Their experti se working with our CPA and the
SBA to quickly process our PPP loan applicati on and
forgiveness was outstanding,” remarks Karen Michel,
Vice President of American Mechanical.
“There are lots of opportuniti es for Interior Alaska
coming down the pike,” Dennis says. “All of this is
backed by our fi nancial partner, Northrim Bank,
that gives us the capacity to respond to these
opportuniti es.”
Scott y Watkins, Northrim Vice President – Commercial
Lending Team Lead in Fairbanks, says it is an honor to
work with the Michels and their group of companies.
“The Michel family of companies have been a staple
in our community over the past 40 years,” he says.
“They have provided Interior Alaska with superior
integrity and knowledge in the industries they
support.”
Annual Report | 2021
16
16
Omni - Hangar 2
Shining in Superior Customer First Service
The changes and challenges resulti ng from the pandemic presented many opportuniti es for our employees to
provide Superior Customer First Service. As an organizati on, we remained adaptable and made adjustments
throughout the year in order to provide a consistently high level of service to our customers.
We focused on keeping our branches operati onal, our services accessible, and our employees and customers safe.
This involved a combinati on of remote work, facilitated by our IT infrastructure, and CDC-approved health and
safety measures that allowed our frontline employees to remain on-site. These eff orts enabled our customers to
access the support and services they needed, when they needed it, throughout the year.
Our employees were highly responsive to Paycheck Protecti on Protecti on Program (PPP) applicants, criti cally
reviewing the applicati ons to maximize the assistance businesses could receive. Depending on a customer’s
circumstances, we identi fi ed other programs they might benefi t from. We also assisted customers through the PPP
forgiveness process, again helping them take advantage of the available support.
Beyond responsiveness, our employees were also proacti ve in reaching out to customers. From government
assistance programs to growth opportuniti es, we explored and presented soluti ons tailored to customers’ specifi c
situati ons, then helped them navigate the process from start to fi nish. As appropriate, we worked with customers
to restructure their debt and provide loan repayment accommodati ons.
We focused on keeping our branches operational, our
services accessible, and our employees and customers safe.
17
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We Bank on Alaskans
We Bank on Alaskans
We Bank on Alaskans
Celebrating Customer First Service
Each year, we present our Customer First Service Awards to celebrate employees who embody Northrim’s core value of
Superior Customer First Service: demonstrati ng sincere appreciati on for our customers, and building lasti ng customer
relati onships through professional, prompt and caring service.
We honor our 2021 Customer First Service Award recipients, and thank them and the many other members of the Northrim
family for their dedicati on and genuine care for their jobs, their co-workers and the customers they serve.
Daisy Arce
Assistant Branch Manager,
Sitka Financial Center
Michele Bear
Card Services Administrator,
Electronic Banking
Mary Ann Robinson
Branch Supervisor,
Wasilla Financial Center
Tori Brandon
Data Analyst,
Informati on Technology
Cindy Fields
SVP, Internal Audit Director,
Internal Audit
Julius Bustarde
Operati ons Specialist,
Electronic Banking
Annual Report | 2021
Annual Report | 2021
18
18
Our Leadership Team
We grew our leadership team in 2021 through internal promoti ons and outside talent, adding strength and a diverse set of
skills to the Bank. This team off ers experti se and vision gained through decades of experience at Northrim and in the industry.
With their combined talent, and the support of our employees, they led the Bank through a year of changes, challenges and
opportuniti es to achieve our 2021 growth and profi tability.
Jed Ballard
EVP, Chief Financial
Offi cer
Mark Edwards
EVP, Chief Credit Offi cer
& Bank Economist
Mike Huston
EVP, Chief Lending
Offi cer
Amber Zins
EVP, Chief Administrati on
Offi cer
Benjamin Craig
EVP, Chief Informati on
Offi cer
Joe Schierhorn
Chairman, President
and CEO
19
19
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We Bank on Alaskans
We Bank on Alaskans
We Bank on Alaskans
+ I N M E M O R Y +
Michael Marti n, EVP — Chief Operati ng Offi cer, General Council and Corporate Secretary, passed
away in November 2021. He had recently celebrated his 10-year anniversary at Northrim. Mike
will be remembered for his deep commitment to the company and the meaningful relati onships
he formed throughout his career.
Mike was acti ve in his community, having served as a past-president of Alaska Public Media
and was currently on the board of the Anchorage Symphony Orchestra and president of the
Alaska Bankers Associati on. In additi on, he taught many courses at Alaska Pacifi c University, the
University of Alaska Anchorage, Pacifi c Coast Banking School at the University of Washington and
the American Insti tute of Banking.
To honor his legacy, the Bank created the Michael Marti n Youth and Sport Development
Endowment fund with a donati on of $100,000 to the Nordic Skiing Associati on of Anchorage
(NSAA), administered by the Alaska Community Foundati on. The donati on will benefi t NSAA’s
Junior Nordic program and will be used to ensure that NSAA is able to promote cross-country
skiing as a health and wellness acti vity and is made available to children of low-income families
and throughout diverse neighborhoods.
Mike was passionate about his work at the Bank and the many customers and colleagues that he
worked with over the years. Northrim is grateful to him for his many years of dedicated service
to the Bank and our community.
Annual Report | 2021
20
Senior Management
TJ Alinen
SVP, Human Resources
Director
Audrey Amundson
SVP, Director of
Accounti ng, Treasury &
Financial Planning
Kati e Bates
SVP, Director of
Business Applicati ons
& Digital Channels
Ryan Caldwell
SVP, Systems &
Network Manager
Catherine Claxton
SVP, Real Estate
Lending Manager
Jason Criqui
SVP, Commercial
Lending Manager
Barb Ervin
SVP, Director of Core
Applicati ons
Cindy Fields
SVP, Internal Audit
Director
Doug Frey
SVP, Security &
Business Conti nuity
Manager
Latosha Frye
SVP, Corporate
Accounti ng Manager
Joe Gelione
SVP, Commercial Loan
Unit Manager
Carolyn Jennings
SVP, Retail Banking
Director
Josh King
SVP, Northrim Funding
Services Division
Manager
Tammy Kosa
SVP, Regional Market
Manager
Doug Ladenburger
SVP, Director of
Treasury Management
Services
Nate Olmstead
SVP, Data Analyti cs
Manager
Kari Skinner
SVP, Marketi ng &
Communicati ons
Director
Erick Stoeckle
SVP, Enterprise
Architecture Manager
Kevin Tillotson
SVP, Regional Market
Manager
Linda Utt ech
SVP, Director of
Faciliti es Operati ons
Suzanne Whitt le
SVP, Compliance
Manager
21
We Bank on Alaskans
Board of Directors
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
Joe Marushack
Director since 2021
David McCambridge
Director since 2011
Chairman, Audit
Committ ee
Krystal Nelson
Director since 2015
Chairman,
Compensati on
Committ ee
Aaron Schutt
Director since 2018
John Swalling
Director since 2002
Lead Director, Chairman,
Governance &
Nominati ng Committ ee
Linda Thomas
Director since 2014
David Wight
Director since 2004
Our Board of Directors is composed of Alaska business leaders representi ng industries and communiti es across the state.
We are grateful for their diverse perspecti ves and guidance as they add strength to our organizati on and help guide the
directi on and conti nued success of the Bank.
Joe Schierhorn
Chairman, President, CEO and COO,
Northrim BanCorp, Inc.
Chairman, President and CEO, Northrim Bank
Larry Cash
Founder and Chair, RIM Architects, LLC
(President, 1986-2016)
Executi ve Committ ee/Director, Anchorage Economic
Development Corporati on (Emeritus)
Member/Manager of RIM Investments, LLC
Board Trustee of Alaska Pacifi c University (Emeritus)
Anthony Drabek
Director, Koniag, Inc., an Alaska Nati ve Corporati on,
2019-2020; Secretary since 2021
President and CEO, Nati ves of Kodiak, Inc.,
an Alaska Nati ve Corporati on, 1989-2010
Chairman, Koncor Forest Products Company,
1986-2010 (President 2001-2010)
Karl Hanneman
CEO and Director, Internati onal Tower Hill Mines Ltd.
(COO 2015-2016, Alaska General Manager 2010-2015)
Director, Fairbanks Chamber of Commerce, 2010-2020
Director, Usibeli Coal Mine, Inc., since 2011
Director, Sunshine Silver Mining & Refi ning Corp.,
2018-2019
Director, Gatos Silver, Inc., since 2020
David Karp
SVP, Managing Director, Alaska Saltchuk, since 2019
President and CEO, Northern Aviati on Services, Inc.,
2011-2018
Director, Alaska Communicati ons Systems, Inc.,
2011-2021
Community Advisory Board Chair, Alaska
Communicati ons Systems, Inc., since 2022
Director, Anchorage Economic Development
Corporati on
Director, Alaska Resource Educati on
Joe Marushack
Board Member, Yellowstone Forever, since 2015
President, ConocoPhillips Alaska, 2015-2021
President, ConocoPhillips Asia, Pacifi c and Middle East,
2012-2015
President, ConocoPhillips Canada, 2010-2012
President, ConocoPhillips Australia, 2007-2010
David McCambridge
Audit Partner, KPMG LLP, 1978-2010
Director and Treasurer, the Tanaka Foundati on,
1985-2015
Director, Great Alaska Council Boy Scouts of America,
1993-2012
Director, Alaska Kidney Foundati on, 1999-2020
and President
Krystal Nelson
EVP and COO, Bering Straits Nati ve Corporati on,
since 2014
SVP and COO, Ahtna Engineering Services, 2007-2014
Recipient of the Alaska Top 40 under 40 Award, 2004
Aaron Schutt
President and CEO, Doyon Limited, an Alaska Nati ve
Corporati on, since 2011 (COO 2008-2011 and SVP
2006-2011)
Director, Akeela, Inc., since 2001 and Chair, since 2018
Recipient of the William A. Egan Alaskan of the Year
Award, 2021
Member of the University of Alaska Fairbanks Advisory
Board, since 2021
Director, Alaska Nati ve Heritage Center, 2012-2019
Director, ANCSA Regional Associati on and Chair,
since 2018
Board of Managers for Doyon Uti liti es, LLC, since 2007
John Swalling
Founder, Swalling & Associates, PCC, an accounti ng
fi rm, 1991-2020
Director of Swalling Constructi on Co., Inc.,
1975-2018
Ernst & Young LLP, Partner, 1984-1991
Director and past Chairman, Providence Health &
Services Alaska, 1998-2019
Director and past Chairman, Visit Anchorage,
1986-2019
Director and Vice Chairman, CIVIC Ventures,
2005-2019
Director, Commonwealth North, 2002-2020
Linda Thomas
CEO, VP and Director, Alaskan Brewing & Bott ling Co.
and its subsidiaries, since 2016 CFO 1994-1996,
COO 1996-2016
Member and Past President,
Juneau Chamber of Commerce
Co-Chair, Mayor’s Task Force for Economic
Stabilizati on Juneau, 2020
Board Member, League of Women Voters, since 2021
David Wight
President and CEO, Alyeska Pipeline Service Company,
2000-2005, following a 41-year career with the
Amoco Corporati on, which became BP in 1999
Director, Storm Cat Energy, 2006-2010
Director, Alaska Gasline Development Corporati on,
since 2016
Director, Commonwealth North
Director, United Way of Anchorage
Past Director and Chair of Providence Alaska and
UAA Chancellor’s Advisory Board
22
Northrim Bank Officers
Executi ve Vice Presidents
Joseph Schierhorn, Chairman, President & Chief Executi ve Offi cer6
Jed Ballard, Chief Financial Offi cer
Benjamin Craig, Chief Informati on Offi cer2
Mark Edwards, Chief Credit Offi cer & Bank Economist2
Michael Huston, Chief Lending Offi cer
Amber Zins, Chief Administrati ve Offi cer2
Senior Vice Presidents
Thomas Alinen, Human Resources Director
Audrey Amundson, Dir of Accounti ng, Treasury & Fncl Planning6
Kathleen Bates, Dir of Bus Applicati ons & Digital Channels4
Ryan Caldwell, Systems & Network Manager1
Catherine Claxton, Real Estate Lending Manager5
Jason Criqui, Commercial Lending Manager1
Barbara Ervin, Director of Core Applicati ons2
Cynthia Fields, Internal Audit Director
Douglas Frey, Security & Business Conti nuity Manager1
Latosha Frye, Corporate Accounti ng Manager3
Joseph Gelione, Commercial Loan Unit Manager
Carolyn Jennings, Retail Banking Director5
Josh King, Division Manager2
Tammy Kosa, Regional Market Manager I3
Douglas Ladenburger, Director of Treasury Management Services
Nathaniel Olmstead, Data Analyti cs Manager1
Kari Skinner, Marketi ng & Communicati ons Director
Erick Stoeckle, Enterprise Architecture Manager1
Kevin Tillotson, Regional Market Manager I
Linda Utt ech, Director of Faciliti es Operati ons1
Suzanne Whitt le, Compliance Manager4
Vice Presidents
Lisa Adams, NFS Operati ons Manager2
Mark Anderson, Loan Offi cer IV - Commercial
Adam Baxter, Loan Offi cer V – Commercial1
James Beasley, Electronic Banking Manager1
Katherine Bender, Community & Public Relati ons Manager1
Clark Bihag, Loan Offi cer IV - Commercial
Timothy Breeden, Loan Offi cer IV - Commercial
David Byrne, Loan Offi cer IV - Commercial
Casey Campbell, Loan Offi cer IV - Commercial
Sean Christi an, Strategic & Planning Manager3
John Damjanovich, Loan Offi cer V - Commercial Real Estate
Anita DeVore, Regional Sales & Service Manager4
Michael Dye, Lending Branch Manager II
Cynthia El-Khoury Hanna, Loan Administrati ve Manager
Kimberly Farrell Brewington, Treasury Management Consultant4
Jyah Gitomer, Call Center Manager1
Allen Hippler, Lending Team Lead1
Jaime Kissner, Loan Offi cer IV – Commercial
Jeanine Lillo, Controller3
Kelly Lykins-Longlet, Risk Manager3
Steven Manley, Loan Offi cer IV - Commercial
Kathleen Marti n, Loan Offi cer V – Constructi on4
Kelly McCormack, Credit Analyst Team Lead3
Gerlie Monta-Guevarra, Branch Manager II1
Loren Olsen, Lending Branch Manager I
Darci Ornellas, Regional Sales & Consumer Lending Manager5
Aili Peyton-Jalbert, Treasury Management Consultant
Nicole Pintsch, Controller of Financial Reporti ng2
Phillip Reid, Loan Offi cer V - Commercial
James Richards, Bus Development Off r Relati onship Manager II1
Jeff rey Sanford, Loan Offi cer IV - Commercial
Davina Simmons Napier, Consumer Lending Manager
William Simpson, Collecti ons Supervisor2
Susan Stenstrom, Corporate Secretary2
James Stewart, Loan Offi cer V - Commercial Real Estate
Mildred Sy, Special Credits & Loan Servicing Manager2
Joann Thayer, Treasury Management Consultant3
Jonathan Tibbs, Loan Offi cer V - Commercial
Bruce Tretzen, NFS Relati onship Manager1
Scott y Watkins, Lending Team Lead
Lynn Wolfe, Loan Operati ons Manager6
23
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We Bank on Alaskans
We Bank on Alaskans
We Bank on Alaskans
Assistant Vice Presidents
Lindsay Atkins, Branch Manager I1
Aracelis Bell, Nrim Investment Services Relati onship Banker3
Erika Bills, Business Banker III5
Angela Bradford, Community Development &
Ln Compliance Manager1
Christopher Chambos, Retail & Investment Services Manager2
Rena Dalman, Treasury Management Business Banker II
Kristi Dent, Consumer Lender III
Paul Dombroski, Loan Offi cer III - Commercial
Seane English, Credit Administrati on Operati ons Manager1
Erin Gage, Retail Banking Operati ons Manager4
Melissa Galloway, Loan Offi cer III - Commercial
Lawrence Gluck, Loan QA Offi cer1
Eric Hamilton, Loan Offi cer IV - Commercial Real Estate
Maia Hernandez, Branch Manager II1
Dawn Hoxie, Branch Manager II5
Eileen Kehoe, Mortgage Servicing Manager
James Larson, Special Credits Offi cer II
Terre Lefebvre, Treasury Merchant Relati onship Manager3
Brian Leonard, Branch Manager II2
Katreena Litt le, Branch Manager I2
Yana Milett e, Electronic Banking Operati ons Manager1
Jill Milham, Retail Banking Operati ons Assistant Manager2
Joseph Moran, Loan Offi cer III – Constructi on1
Bessie Paraoan, Special Credits Offi cer I3
Rick Pinkerton, Loan Review Offi cer3
Kelly Reynolds, Security Manager3
Blake Rod, Branch Manager I
Teressa Saaiman, Branch Manager I1
Judith Schnese, Audit Manager2
Benjamin Schulman, Loan Offi cer III – Commercial2
Micah Scott , BSA & Deposit Comp Manager3
Delores Siah, Branch Manager II1
Sathiane Sikeo, Branch Manager I
Rodlynn Smallwood, Operati ons Support Manager4
Diana Soliday, Branch Manager II3
Kathleen Sti lwell, Card Services Manager
Maureen Swartwood, Branch Manager II
Reynold Udarbe, Branch Manager I2
Tammi Whistler, Loan Administrati ve Offi cer1
Offi cers
Kevin Anderson, Corporate Training Manager
Daisy Arce, Assistant Branch Manager I1
Johnico Bashford-Blumer, Assistant Branch Manager I
Deborah Bolton, Assistant Branch Manager II2
Maricel Bratcher, Assistant Branch Manager I4
Milagros Casti glione, Business Banker I3
Cindy Cheely, Business Banker II4
Christi na Clayton, Assistant Branch Manager II1
Paula Duracinski, Faciliti es Manager4
Astrid Erdman, Treasury Management Business Banker I
Donna Fountain, Call Center Assistant Manager3
Mary Fox, Special Credits Offi cer I3
Jay Gilling, Security Offi cer1
Heidi Hurben, Assistant Branch Manager II
Brigitt e Lampert, Assistant Branch Manager I2
Christi na Lawrence, Assistant Branch Manager II4
Stephanie Love, Marketi ng & Sales Manager1
Michelle Lozano, Special Credits Associate Offi cer3
Lloyd Malpaya, Assistant Branch Manager I
Amanda Maly, Consumer Lender II
Neddie Manabat, Assistant Branch Manager II1
Nicole Mariman, Operati ons Support Assistant Manager4
Sarah Maycock, Electronic Banking Support Manager
Chellaney Middlemas, Assistant Branch Manager I
Fejie Monta-Carandang, Assistant Branch Manager I1
Pamela Oberts, Assistant Branch Manager II
Criselda Parrocha, Business Banker I4
Ruth Regan, Assistant Branch Manager I
William Ringo, Assistant Branch Manager I
Kiersten Russell, Loan Offi cer II – Commercial1
Dagmar Sanchez, Senior Training Specialist5
Jodie Stone, Assistant Branch Manager I
Edwin Strupulis, Assistant Branch Manager I
Deatrice Swazer, Senior Real Estate Valuati on Offi cer3
Elias Wilterding, Credit Administrati on Offi cer1
Rosemarie Yadao, Assistant Branch Manager I1
AVP and above as of 2/2/2022:
1 ≥ Five-year employee | 2 ≥ Ten-year employee | 3 ≥ Fift een-year employee | 4 ≥ Twenty-year employee
5 ≥ Twenty-fi ve-year employee | 6 ≥ Thirty-year employee
Annual Report | 2021
24
Mission
Mission
To Be Alaska’s Most Trusted Financial Insti tuti on
We are committ ed to adding value for our customers, communiti es and shareholders.
Vision
Vision
To Be Alaska’s Premier Bank And Employer Of Choice
We will be a leader in fi nancial experti se, products and services, focused on conti nuous
improvement and market growth.
Values
Values
Proud To Be Alaskan
We are Alaskan managed. We embody
Alaska’s fronti er spirit and values, and
strongly support our communiti es.
Superior Customer First Service
We have a sincere appreciati on for
our customers. We want to build
lasti ng customer relati onships through
professional, prompt and caring service.
Growth
We look for growth opportuniti es for
our customers, our insti tuti on and our
employees. We strive to be bett er,
personally and professionally.
Integrity
We are trustworthy, reliable and ethical,
and provide our customers with secure,
confi denti al services. We do what is right.
We Are
Engaged
We achieve more because
we are dynamic, proacti ve
and innovati ve.
Accountable
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.
25
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We Bank on Alaskans
We Bank on Alaskans
We Bank on Alaskans
Information & Addresses
Annual Meeti ng:
May 26, 2022
Virtual Meeti ng
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
Accreti ve Legal, PLLC
Investor Informati on:
For stock informati on and SEC fi lings, copies of earnings and
dividend releases, click on “Investor Relati ons”
secti on 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 Corporati on, Federal Reserve Bank,
Securiti es and Exchange Commission, or any other regulatory authority.
An Equal Opportunity and Affi rmati ve Acti on Employer. Qualifi ed applicants
and employees receive considerati on for employment without regard to
race, color, religion, sex, sexual orientati on, gender identi ty, age, nati onal
origin, physical or mental disability, protected veteran status, pregnancy,
parenthood, marital status, changes in marital status, geneti c informati on
or any other status protected by federal, state or local law.
Cauti onary Note Regarding Forward-Looking Statements
This report contains forward-looking statements within the meaning of
the Private Securiti es Liti gati on Reform Act of 1995, as amended, which
are not historical facts. These forward-looking statements are, in eff ect,
management’s att empt to predict future events, and thus are subject to
various risks and uncertainti es. Readers should not place undue reliance
on forward- looking statements, which refl ect management’s views only as
of the date hereof. When used herein, the words “anti cipate,” “believe,”
“esti mate,” “expect,” and “intend” and words or phrases of similar meaning
are intended to help identi fy forward-looking statements. Although
we believe that management’s expectati ons as refl ected in forward-
looking statements are reasonable, we cannot assure readers that those
expectati ons will prove to be correct as forward- looking statements are
subject to various risks and uncertainti es that may cause our actual results
to diff er materially and adversely from our expectati ons 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 operati ons and business,
are identi fi ed in our fi lings with the Securiti es and Exchange Commission.
Forward-looking statements contained herein are made only as of the
date of this report, and Northrim does not undertake any obligati on to
release revisions to these forward- looking statements to refl ect events or
conditi ons aft er the date of this report.
Financial Snapshot Endnotes:
1 These unaudited schedules provide selected fi nancial informati on concerning the Company that should be read in conjuncti on with Item 7 “Management’s Discussion and
Analysis of Financial Conditi on and Results of Operati ons” of this report.
2 Tangible book value per share is a non-GAAP rati o defi ned as shareholders’ equity, less intangible assets, divided by common shares outstanding. Management believes that
tangible book value is a useful measurement of the value of the Company’s equity because it excludes the eff ect of intangible assets on the Company’s equity.
3 Tangible common equity to tangible assets is a non-GAAP rati o that represents total equity less goodwill and intangible assets divided by total assets less goodwill and
intangible assets. Management believes this rati o is important as it has received more att enti on over the past several years from stock analysts and regulators. The most
comparable GAAP measure of shareholders’ equity to total assets is calculated by dividing total shareholders’ equity by total 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 2018 through 2021 and 41.11% in all other years presented. Management believes that tax-equivalent net
interest margin is a useful fi nancial measure because it enables investors to evaluate net interest margin excluding tax expense in order to monitor our eff ecti veness in growing
higher interest yielding assets and managing our costs of interest bearing liabiliti es over ti me on a fully tax equivalent basis.
5 In managing our business, we review the effi ciency rati o exclusive of intangible asset amorti zati on, which is a non-GAAP performance measurement. Management believes that
this is a useful fi nancial measurement because we believe this presentati on provides investors with a more accurate picture of our operati ng effi ciency. The effi ciency rati o is
calculated by dividing other operati ng expense, exclusive of intangible asset amorti zati on, by the sum of net interest income and other operati ng income. Other companies may
defi ne or calculate this data diff erently.
6 The Company’s 2017 results included the impact of the enactment of the Tax Cuts and Jobs Act, which was signed into law on December 22, 2017. The law includes signifi cant
changes to the U.S. corporate tax system, including a Federal corporate rate reducti on from 35% to 21%. In 2017, the Company applied the newly enacted corporate federal
income tax rate of 21%, reducing the value of the Company’s net deferred tax asset, resulti ng in approximately a $2.7 million increase in tax expense. In 2018, the Company
fi nalized changes related to the reducti on in the federal tax rate which resulted in a $470,000 reducti on in tax expense.
7 Number of banking offi ces does not include RML locati ons. 2021 number of banking offi ces includes 17 full service branches and 1 loan producti on offi ce. 2020 number of
banking offi ces includes 16 full service branches and 1 loan producti on offi ce. 2018 number of banking offi ces include 15 full service branches and 1 loan producti on offi ce.
8 FTE includes 321, 312, 311, 320, 314, and 321 Community Banking employees in 2021, 2020, 2019, 2018, 2017 and 2016, respecti vely. FTE includes 130, 126, 120, 110, 115, and
130 Home Mortgage Lending employees in 2021, 2020, 2019, 2018, 2017 and 2016, respecti vely.
Annual Report | 2021
Annual Report | 2021
Annual Report | 2021
Annual Report | 2021
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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
Huff man Branch
1501 E. Huff man Road
Jewel Lake Branch
4000 W. Dimond Blvd., Suite 2
Lake Oti s 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 C-3
Wasilla
Wasilla Financial Center
850 E. USA Circle, Suite A
(907) 376-0357
Bellevue, Washington
Northrim Funding Services
170 120th Ave. NE, Suite 202
PO Box 50245
Bellevue, WA 98015
(425) 453-1105
Home Mortgage Lending
Residenti al Mortgage, LLC
Headquarters
100 Calais Drive
Anchorage, AK 99503
(907) 222-8800
residenti almtg.com
10 locati ons statewide
Affi liated Companies
Northrim Investment Services
3111 C Street
Anchorage, AK 99503
(907) 562-0062
Pacifi c Portf olio Consulti ng, LLC and
Pacifi c Portf olio Trust Company
Columbia Center
701 5th Ave., Suite 6850
Seatt le, WA 98104
(206) 623-6641
pacifi c-portf olio.com
Fairbanks
Fairbanks Financial Center
360 Merhar Avenue
(907) 455-1111
Fairbanks West Community Branch
3637 Airport Way
(907) 452-5965
Juneau
Juneau Financial Center
2094 Jordan Avenue
(907) 790-5168
Juneau Downtown Branch
301 N. Franklin Street
(907) 586-1010
Ketchikan
Ketchikan Financial Center
2491 Tongass Avenue
(907) 225-4545
Kodiak
Kodiak Loan Producti on Offi ce
2011 Mill Bay Road
(907) 481-1020
Sitka
Sitka Financial Center
315 Lincoln Street, Suite 206
(907) 747-6252
Soldotna
Soldotna Financial Center
44384 Sterling Highway, Suite 101
(907) 260-7669
northrim.com