2022
ANNUAL REPORT 2022
1
MESSAGE TO SHAREHOLDERS
MESSAGE TO SHAREHOLDERS
GROWTH. PROFITABILITY. CREDIT QUALITY. STRENGTH OF CORE BANKING
OPERATIONS. INVESTMENT IN PEOPLE AND INFRASTRUCTURE. THESE
WERE KEY THEMES FOR NORTHRIM BANK (THE BANK) IN 2022.
Strong net interest income along with core loan growth supported record 2022 earnings in our
Community Banking segment. We continued to grow our core loan portfolio throughout the
state with 15 percent growth in 2022, which built upon 14 percent growth in 2021 and 9 percent
growth in 2020.
In addition, our credit quality metrics are among the best in the Bank’s history. Our 2022 non-
performing assets decreased to $6.4 million, compared to $10.8 million in 2021. Due in part to
loan growth, our 2022 results included a provision for credit losses expense of $1.8 million,
compared to a $4.1 million reversal of the provision expense in 2021.
Loan growth, in tandem with the structure of our balance sheet, helped to increase our net
interest income by 18 percent in 2022, as compared to the prior year. Net interest margin
expanded to 3.85 percent in 2022, a 27 bps increase from 2021, primarily due to higher yields
on portfolio loans, and long- and short-term investments. Our net interest margin remains
above peer average.
Rising mortgage interest rates caused a slowdown of the housing market, and lending activity
at our wholly-owned subsidiary, Residential Mortgage, LLC, (Residential Mortgage) decreased
in 2022. This was partially offset by a 51 percent increase in net revenue from our home
mortgage servicing portfolio from a year ago.
1
Residential Mortgage expanded operations into the Pacifi c
Northwest and Southwest, and attracted experienced,
talented loan originators, positioning the company for
increased loan volume in the future.
Our 2022 net income decreased 18 percent to $30.7 million
in 2022, as compared to 2021. Impacts from the increased
provision for credit losses, along with decreased fee and
interest income from the Paycheck Protection Program
(PPP), and decreased production at Residential Mortgage
were partially offset by our core loan growth and
margin increase.
Total Bank assets at year-end were $2.67 billion, down
2 percent from the prior year. Liquidity levels remain high,
and Northrim continues to maintain capital levels in excess
of the regulatory requirements to be categorized as
“well-capitalized.”
We increased our shareholder dividends by 21 percent
in 2022, and continued our stock repurchase program.
Despite the overall market decrease in 2022, our share
price increased 26 percent, which is one of the highest in
our peer group.
Our 2022 growth is the result of efforts to develop new
customer relationships and deepen existing
relationships. We opened a loan production
offi ce in the Northwest Alaska hub of
Nome in March 2022, and then expedited
the opening of a temporary branch
in December to meet community needs in the aftermath
of storms that devastated the region. We also undertook
construction of a branch in Kodiak, Alaska, expanding the
presence of the loan production offi ce we opened there in
2020. To support our growth into new markets, we attracted
local bankers with longevity in their communities and
expertise in key industries.
We continue to develop full banking relationships with
the more than 2,300 new customers we acquired during
the PPP loan process. We also focused on expanding and
enhancing products and services, including several new
Treasury Management offerings designed to increase
customer effi ciency, savings and security.
As part of ongoing efforts to be an employer of choice, we
enhanced our employee benefi ts, including paid parental
leave, a dedicated wellness day, increased tuition assistance
and compensation adjustments.
We created the Northrim Management Academy to prepare
employees for future leadership opportunities, and the
Commercial Banker Trainee Program to help us develop the
next generation of bankers.
Looking back at 2022, we are proud of the talent, attitude,
cooperation, collaboration and expertise of all
of our employees as we work together to
serve the needs of our customers and our
communities.
JOE SCHIERHORN
Chairman, President, CEO and COO,
Northrim BanCorp, Inc.
Chairman and CEO,
Northrim Bank
MIKE HUSTON
President and Chief Lending Offi cer,
Northrim Bank
ANNUAL REPORT 2022
2
ROOTED IN ALASKA
ROOTED IN ALASKA
Northrim has been rooted in Alaska since inception –
and we’ve remained focused on serving Alaskans and
strengthening our state ever since. We understand
the opportunities and challenges of living and working
here, and are committed to proactively serving the
unique needs of Alaskans and the businesses that power
the Last Frontier. This Alaska focus, adaptability and
responsiveness has provided a strong foundation for the
Bank’s growth.
Expanding our branch network into new areas of Alaska
is one example of how we do things differently. While we
offer the convenience and security of online and mobile
banking, we also understand that our customers want the
benefi ts of an in-person branch – and we strive to offer
them that balance.
In March 2022, we opened a loan production offi ce in
Nome, which is an important hub for the people and
businesses of Northwest Alaska. We planned to open a
full-service branch in early 2023, however, the devastation
wreaked by Typhoon Merbok late last year created a
critical need for banking services in the community.
Northrim received expedited permission under a disaster
relief, “regulatory relief exception” from the FDIC to open
a temporary branch, and departments across the Bank
quickly came together, accelerating the opening of our
18th branch. A larger, permanent fi nancial center will
follow in 2023.
In 2022, we also began construction of a full-service
fi nancial center in Kodiak, building upon the successful
presence of the loan production offi ce we opened there in
March 2020. The Kodiak branch opened in February 2023.
As part of our infrastructure investments, we also
completed a Sustainability Master Plan to address the
infrastructure of our 52-year-old headquarters building
in Anchorage. Revitalization will include implementing
energy effi ciencies and the use of renewable resources.
We are committed to proactively
serving the unique needs of
Alaskans and the businesses that
power the Last Frontier.
3
Photo: CITC
2022 FINANCIAL SNAPSHOT (1)
2022 FINANCIAL SNAPSHOT
Years Ended December 31
(In thousands, except per share data and shares outstanding amounts)
Net interest income
Provision (benefi t) 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
Effi ciency 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 offi ces(7)
Number of employees (FTE)(8)
2022
$95,115
1,846
34,077
—
88,852
$38,494
7,753
30,741
—
$30,741
$2,674,318
1,501,785
2,387,211
218,629
5,700,728
$2,641,008
2,469,383
1,415,125
2,354,881
224,773
5,765,088
5,829,412
$5.33
$5.27
$38.35
$35.55
$1.82
1.16%
13.68%
8.18%
7.62%
3.85%
3.89%
26.38%
68.76%
34.17%
$6,430
6,430
0.43%
(0.08)%
0.92%
0.24%
20%
19
469
2021
$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
2020
$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
2019
$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
2018
$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
Five-Year
Compound
Growth Rate
11%
(10)%
(3)%
(100)%
5%
10%
(6)%
18%
(100)%
19%
12%
9%
14%
3%
(4)%
12%
13%
8%
14%
3%
(4)%
(4)%
23%
23%
6%
7%
16%
6%
15%
(8)%
(8)%
(2)%
(2)%
(9)%
(1)%
(6)%
(21)%
(26)%
(28)%
NM
(16)%
(34)%
(14)%
6%
2%
2017
$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
ANNUAL REPORT 2022
4
5YEAR PICTURE
5YEAR PICTURE
NET INCOME ATTRIBUTION TO
NORTHRIM BANCORP, INC. (IN THOUSANDS)
TOTAL ASSETS (IN THOUSANDS)
37,517
32,888
30,741
20,004
20,691
$40k
$30k
$20k
$10k
$0
2,724,719
2,674,318
2,121,798
1,643,996
1,502,988
$3m
$2.5m
$2m
$1.5m
$1m
$500k
$0
2018
2019
2020
2021
2022
2018
2019
2020
2021
2022
PORTFOLIO LOANS (IN THOUSANDS)
TOTAL DEPOSITS (IN THOUSANDS)
$1.5m
$1.25m
1,444,050
1,413,886
1,501,785
Core
Loans
Core
Loans
984,346
$1m
Core
Loans
1,043,371
Core
Loans
Core
Loans
2,421,631
2,387,211
1,824,981
1,372,351
1,228,088
$2.5m
$2m
$1.5m
$1m
$500k
$0
2018
2019
2020
2021
2022
2018
2019
2020
2021
2022
$750k
$500k
$250k
$0
5
LEADING GROWTH ACROSS ALASKA
LEADING GROWTH ACROSS ALASKA
In addition to our branch network, we are also growing
our market share and loan portfolio across Alaska. The
most recent FDIC deposit market share report for Alaska
banks shows that Northrim increased its market share
by 36 percent over the past fi ve years. We are proud to
be among the few Alaska fi nancial institutions making
consistent progress in this area.
We are also steadily growing our loan portfolio with
high-quality customers in markets across the state. Our
15 percent core loan growth in 2022 marked the second
year in a row of double-digit loan growth, while our credit
quality metrics continued to improve.
We approach lending with a mindset focused on
strengthening the state, creatively solving challenges
and helping businesses thrive. Our participation in
Alaska’s fi rst Commercial Property Assessed Clean
Energy (C-PACE) fi nanced project in 2022 is one example.
Working with a customer, a national lender and the
Municipality of Anchorage, Northrim was the local lender
for the state’s fi rst C-PACE loan, which fi nanced the
retrofi t of a four-story Anchorage offi ce building. With the
energy-effi ciency upgrades, the building’s energy usage is
projected to decrease by 42 percent a year.
Similar to how we responded to the Paycheck Protection
Program in 2020, our lending team saw the potential
of the C-PACE program to benefi t our customers and
community. We dedicated the time to become experts
in this innovative type of fi nancing, and look forward to
being a continued leader in developing C-PACE projects
across Alaska.
We were also proud to be recognized in 2022 by the
U.S. Small Business Association (SBA) as the 2021
Alaska Lender of the Year, marking the third year in a
row the Bank has received either the Alaska Lender of
the Year or Community Lender of the Year award. This
award recognizes our commitment to providing fi nancial
assistance to Alaska’s small business owners.
Our 15 percent loan growth in
2022 marked the second year in
a row of double-digit core loan
growth, while our credit quality
metrics continued to improve.
ANNUAL REPORT 2022
6
A MODEL FOR SUCCESS
Our model of hiring local leaders with relationships in
the community, expertise in their industry and a shared
commitment to serving customers has proven to be very
successful. We have seen signifi cant growth in markets
across Alaska as our team leverages their knowledge and
long-term relationships to attract quality customers to the
Bank. We also continue to earn many customer referrals,
which have led to a number of businesses moving their
banking relationship to Northrim.
Another key to our success is monitoring our customers’
needs and responding with products and services to help
them succeed. Our Jump-Up CDs and Treasury Management
products are two examples of how we work to gain new
customers and add value to existing ones.
TOTAL CAPITAL RATIO
18%
16%
14%
12%
10%
16.73%
2018
15.63%
2019
15.46%
2020
14.79%
2021
13.64%
2022
NONPERFORMING ASSETS, NET OF GOVERNMENT GUARANTEES (IN THOUSANDS)
$25k
$20k
$15k
$10k
$5k
$0
7
1.50%*
1.21%
.77%
.55%
22,619
19,946
16,289
2018
2019
* Nonperforming assets, net of government guarantees divided by total assets
2020
15,031
2021
.24%
6,430
2022
In a rising interest rate environment, we understand that
customers expect to see more return on their dollars. We
responded by creating products that incentivize customers to
keep their deposits at Northrim, while allowing them to take
advantage of higher rates.
We also enhanced our Treasury Management products to
help our business customers increase efficiency, save money
and combat fraud. We implemented a Commercial Purchase
Card program designed to increase customers’ efficiency
and introduced integrated payables, a payment solution that
streamlines the vendor payment process.
Our Treasury Management customers are served by a
dedicated team, and we attracted additional talent to enhance
service to these businesses and further develop this area of
the Bank.
COMPOSITION OF NORTHRIM BANCORP EQUITY | (IN MILLIONS) CAPITAL AS OF DEC. 31, 2022
-$150
-$100
-$50
$0
$50
$100
$150
$200
$250
$300
$350
$400
Total Capital Raised
Cumulative Earnings
$45
$360
Cumulative Dividends Paid
($106)
Repurchases, Equity Compensation,
Costs of Capital Raises, and Other
($80)
Total Equity
$219
LOAN PORTFOLIO (AS OF DEC. 31, 2022)
DEPOSITS (AS OF DEC. 31, 2022)
Commercial Real Estate | 46%
Demand Deposits | 34%
Commercial and Industry | 41%
Interest-Bearing Demand Deposits | 32%
Savings Deposits | 13%
Construction | 8%
Consumer | 5%
Money Market Deposits | 13%
Time Deposits | 8%
8
ANNUAL REPORT 2022 PROVIDING THE BEST TO RETAIN THE BEST
PROVIDING THE BEST TO RETAIN THE BEST
The Bank’s success is closely tied to our employees’ success,
and we place a high priority on monitoring and responding
to the needs of our people. Driven by our vision to be an
employer of choice, we focus on providing the best for our
employees so we can recruit and retain key performers.
Based on the results of our annual 2022 employee survey, we
identifi ed and implemented enhanced benefi ts, offering paid
parental leave, increasing tuition assistance and providing
a dedicated wellness day for employees to focus on their
mental and physical health. We also implemented a special
compensation adjustment to ensure we maintain our vision to
be Alaska’s premier bank and employer of choice.
We were proud to be recognized by the Alaska Journal
of Commerce as one of the Best Workplaces in Alaska in
2022. This external recognition reinforces the fi ndings of our
employee surveys.
Recognizing the need to draw interest in banking careers,
develop new talent and provide opportunities for employees
to grow as the Bank grows, we created the Northrim
Management Academy and the Commercial Banker Trainee
Program. Through the year-long Management Academy,
employees gain knowledge and skills to grow professionally
and move into leadership positions. The Trainee Program
offers university students and new Bank hires exposure
to and experience in the banking industry, with the goal to
attract the next generation of bankers.
We focus on providing the best for
our employees so we can recruit
and retain key performers
9
TIMBERWOLF VENTURES,, INC.
INC.
TIMBERWOLF VENTURES
“A forward-looking team for small businesses”
The Alaska Shirt Company, housed in a bright, cheery
building adjacent to the tram terminal at the base of Mount
Roberts, is one of the fi rst places passengers see as they
disembark the cruise ships in downtown Juneau, Alaska’s
capital city.
The store, established in 1995 by Michael Tripp, CEO of
Timberwolf Ventures, Inc., and his business partners, prides
itself on sourcing the best souvenirs for the Southeast
Alaska community’s one million plus annual visitors.
When rumblings of a pandemic began in early 2020,
Tripp and his team knew they would need to be proactive
to protect their tourism-driven business. Working with
Northrim, “We put together a fi nancial plan/loan package to
carry our company through this storm and had it buttoned
up even before the federal, state and local programs came
into view,” Tripp said. “My goal was to have enough working
capital to survive a zero-passenger season in 2020 and plan
for some sort of rebound in 2021. Our loan offi cer, Jaime
Kissner, and the rest of the Northrim team helped to make
that a reality.”
“I sincerely doubt that any other bank would have acted as
quickly and decisively to support a customer like Northrim
did,” he added. “It is a testament to the forward-thinking that
this team has when it comes to small businesses.”
The planning paid off. Today, the company is not only back
in business – it’s growing. In addition to the fl agship Alaska
Shirt Company, Tripp and his partners also own Trove,
a high-end gift shop catering to Juneau’s local clientele.
Construction is also underway on a new building in Juneau’s
historic district, where a “new concept” Alaska Shirt
Company will debut in spring 2023.
“We want to continue making investments and creating
new businesses in Juneau,” Tripp said. “When you realize
how many people want to make Juneau their home and
how locals support quality businesses, it is a testament to
the power of the local economy even before you consider
the other fi nancial engine that is tourism. We see many
opportunities ahead and know that with the power of our
relationship with Northrim, we should thrive.”
ANNUAL REPORT 2022
10
DOING WHAT IS RIGHT
DOING WHAT IS RIGHT
Northrim has been committed to doing what is right for
our customers, employees, communities and shareholders
since day one. In September 2022, we formalized our
commitment with the adoption of an environmental, social
and governance (ESG) policy. In early 2023, we released
our second ESG report, which details our hard work and
achievements in these areas.
Highlights of the ESG report include community giving,
which has always been a central part of Northrim’s
culture. In 2022, we reached a signifi cant milestone: The
combined giving of the Bank and our employees last year
exceeded $1 million. This total included $141,000 raised
for the annual United Way Campaign in support of local
communities throughout Alaska and Washington state, as
well as contributions to organizations involved in youth
development, Alaska Native culture and issues, economic
development and higher education.
Employees throughout the Bank, from executive
management to frontline employees, are also encouraged
to be active volunteers in their communities. In a return
to pre-pandemic levels of support, Northrim employees
volunteered more than 2,100 hours in their local
communities last year.
From leading fi nancial literacy classes, to organizing
food drives, to painting homes as part of an affordable
housing project, to working with neighborhood schools, our
employees are involved in a wide variety of activities that
are near and dear to their hearts. Employees also serve in
leadership roles with nonprofi t and industry organizations,
sharing their expertise in the community.
In 2022, we reached a signifi cant
milestone: The combined giving of
the Bank and our employees last
year exceeded $1 million.
11
LEGACY FUNERAL HOMES
LEGACY FUNERAL HOMES
“Serving others is what I get to do every day”
When Jared Dye purchased six funeral homes in Alaska in
2006, he knew he had found a way to make a difference.
“There is something to be said about a family-owned
business and what it can provide,” said Dye, president and
owner of Legacy Funeral Homes. “This business can be so
delicate, it requires the feelings and care of a family-owned
business.”
Today, Legacy operates 14 funeral homes across Alaska, as
well as provides cremation services and advance planning
to Alaskan families.
“We’ve doubled in size and in the number of families we care
for and serve. This brings me to why I do what I do: I love
to serve others. And what a time to be at someone’s side
to serve them as when they have lost the most important
person in their lives. Caring and serving others is what I get
to do every day,” Dye said, adding that as a family-owned
business, it is not uncommon to see his children working
alongside him.
Northrim has had the privilege of helping Legacy grow
over the years, starting in 2011 when the Bank assisted Dye
with several business acquisitions. In 2022, Legacy moved
its entire banking and lending relationship to Northrim.
In addition to refi nancing existing loans last year, Legacy
was also the fi rst business to implement Northrim’s new
Commercial Purchase Card program.
“We have around 50 employees and about 20 credit
cards are used throughout the state, so there are lots
of transactions to account for. By working together with
Northrim, we were the fi rst to use this system. It’s been a
huge help to us,” Dye said.
A shared commitment to serving Alaskans is a key reason
Dye chose to work with Northrim.
“I believe in Alaska and keeping it strong. I learned from
the time that I moved here that Northrim believed in Alaska
too, so I always felt we had this connection,” he said. “When
I began this latest acquisition, I knew that I wanted a local
bank to help me through.”
ANNUAL REPORT 2022
12
SUBSIDIARIES, DIVISIONS AND AFFILIATES
SUBSIDIARIES, DIVISIONS AND AFFILIATES
In addition to our core community banking activities,
Northrim has interests in other businesses, including home
mortgage lending, purchased receivables fi nancing 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 $34.1 million,
or 26 percent of 2022 revenues, as compared to $52.3
million, or 39 percent of revenues in 2021.
Residential Mortgage
Northrim Funding Services
With offi ces throughout Alaska, our wholly-owned
subsidiary, Residential Mortgage Lending, LLC, provides
fi nancing and refi nancing for prospective and current
homeowners. Production decreased in 2022 due to rising
mortgage interest rates, which more than doubled during
the year.
The company took the slowdown as an opportunity to
position itself for future growth by expanding into new
areas, opening offi ces and hiring experienced, local loan
originators in several locations in the Pacifi c Northwest
and Southwest. Residential Mortgage was able to expand
in a cost-effective way by using current employees to
support the production of the new loan originators.
The company also reviewed and adapted its mortgage
products, developing new programs to meet the needs of
homebuyers in the current interest rate environment.
We continue to take advantage of opportunities to
streamline operations at both Residential Mortgage and
the Bank, increasing effi ciencies by leveraging expertise
and merging processes.
During 2022, Residential Mortgage promoted its Chief
Operating Offi cer (COO), Mike Baldwin, to the joint position
of President and COO.
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 fi nancial solutions to transition customers back to
other bank lending programs.
Northrim Funding Services’ activity decreased in 2022 due
to large amounts of liquidity in the fi nancial system. The
division contributed $2.0 million to other operating income
in 2022, compared to $2.3 million in 2021.
We continued to invest in Northrim Funding Services,
utilizing our information technology team to develop a
custom, web-based operating system that offers signifi cant
improvements to workfl ows, integrations, document
scanning and reporting. The new solution allows Northrim
Funding Services to scale operations more effi ciently and
provides a platform for future expansion.
Other operating income contributed $34.1 million,
or 26 percent of 2022 revenues, as compared to
$52.3 million, or 39 percent of revenues in 2021.
13
Northrim Investment Services
Pacifi c Portfolio
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 relevant fi nancial products and services.
Pacifi c Wealth Advisors is the holding company for Pacifi c
Portfolio Consulting, LLC, and Pacifi c Portfolio Trust Company
(Pacifi c Portfolio). Founded in 1992 and part of the Northrim
family since 2006, Pacifi c Portfolio is an independent wealth
management and investment advisor serving high-net-worth
individuals and families, institutions, foundations, and trustee-
or participant-directed retirement plans in Alaska and the
Pacifi c Northwest.
In late 2022, Pacifi c Portfolio fi nalized the acquisition of
Conway Jarvis, LLC, a Seattle-based fi rm with approximately
$350 million in assets under advisement. The combined fi rm
now has approximately $4 billion in assets under advisement.
The acquisition is part of Pacifi c Portfolio’s strategic plan
and vision to continue expanding its comprehensive wealth
management and investment advisory services on an
independent and multi-generational ownership platform.
The company contributed $168,000 to Northrim’s other
operating income in 2022, compared to $92,000 in 2021.
ANNUAL REPORT 2022
14
SHARED VALUES, CARING CULTURE
SHARED VALUES, CARING CULTURE
CUSTOMER FIRST SERVICE AWARD
We continue to be inspired and motivated by the stories of our Customer First Service Award winners, who are
nominated by customers and co-workers for their above-and-beyond attitude and actions.
Each quarter, we recognize two Northrim team members who have demonstrated positive attitudes and genuine
passion for caring for their customers, co-workers and communities. While each story is unique, they all share the
Northrim value of providing Superior Customer First Service: showing sincere appreciation for our customers, and
building lasting relationships through professional, prompt and caring service.
This culture of caring is strong throughout the organization, from our branches to our board room. We are
grateful for the members of our board of directors, executive leadership and senior management, who model the
care, cooperation and collaboration that has helped the Bank grow and succeed over our 32-year history.
Mariah Sullivan
Commercial Banker
Trainee, Commercial
Loans
Jyah Gitomer
Call Center
Manager,
Call Center
Diana Soliday
Branch Manager,
Wasilla Financial
Center
Astrid Erdman
Treasury Management
Consultant, Treasury
Management Services
Alysia Isaako
Treasury
Management
Associate, Treasury
Management
Services
AlLecia Casey
Treasury
Management
Associate
Mary Castro
Loan Administrative
Team Lead, Loan
Documentation
15
Benjamin Craig
EVP, Chief Information
Officer
Mike Huston
President and Chief
Lending Officer
Joe Schierhorn
Chairman and CEO
Amber Zins
EVP, Chief Operating
Officer
Jed Ballard
EVP, Chief Financial
Officer
EXECUTIVE LEADERSHIP
We were pleased to promote two employees within the executive team in 2022. Mike Huston was promoted to
President and Chief Lending Officer, in recognition of his successful efforts to develop high-performing loan teams
throughout the Bank and across the state, resulting in growth across all markets.
Amber Zins was promoted to Executive Vice President and Chief Operating Officer. As a Certified Public Accountant,
and former Chief Administrative Officer, Internal Audit Manager and Human Resources Director, Amber brings
broad financial management and operational experience to the position.
We also welcomed an experienced attorney to our senior management team, recruiting Stefan Saldanha to the
Bank as Senior Vice President, General Counsel and Corporate Secretary.
16
ANNUAL REPORT 2022 SENIOR MANAGEMENT
SENIOR MANAGEMENT
TJ Alinen
SVP, Human
Resources Director
Audrey Amundson
SVP, Director of
Accounting, Treasury
& Financial Planning
Katie Bates
SVP, Director of
Business Applications
& Digital Channels
Ryan Caldwell
SVP, Systems &
Network Manager
Catherine Claxton
SVP, Real Estate
Lending Manager
Jason Criqui
SVP, Commercial
Lending Manager
Mark Edwards
SVP, Chief Credit
Offi cer and Bank
Economist
Cindy Fields
SVP, Internal Audit
Director
Doug Frey
SVP, Security &
Business Continuity
Manager
Joe Gelione
SVP, Commercial Loan
Unit Manager
Carolyn Jennings
SVP, Retail Banking
Director
Josh King
SVP, Division Manager,
Northrim Funding
Services
Tammy Kosa
SVP, Regional Market
Manager
Doug Ladenburger
SVP, Director of
Treasury Management
Services
Nate Olmstead
SVP, Data Analytics
Manager
Stefan Saldanha
SVP, General Counsel
and Corporate
Secretary
Kari Skinner
SVP, Marketing &
Communications
Director
Erick Stoeckle
SVP, Enterprise
Architecture Manager
Mhay Sy
SVP, Special Credits
and Loan Servicing
Manager
Latosha Taylor
SVP, Corporate
Accounting Manager
Kevin Tillotson
SVP, Regional Market
Manager
Linda Uttech
SVP, Director of
Facilities Operations
Suzanne Whittle
SVP, Compliance
Manager
17
BOARD OF DIRECTORS
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
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
Our Board of Directors is composed of Alaska business leaders representing industries and communities across the state.
We are grateful for their diverse perspectives and guidance as they add strength to our organization and help guide the
direction and continued success of the Bank.
Joe Schierhorn
Chairman, President, CEO and COO,
Northrim BanCorp, Inc.
Chairman, and CEO, Northrim Bank
Larry Cash
Founder and Chair, RIM Architects, LLC
(President, 1986-2016)
Executive Committee/Director, Anchorage Economic
Development Corporation (Emeritus)
Member/Manager of RIM Investments, LLC
Board Trustee of Alaska Pacifi c University (Emeritus)
Anthony Drabek
Director, Koniag, Inc., an Alaska Native Corporation,
since 2019; Secretary since 2021
President and CEO, Natives of Kodiak, Inc.,
an Alaska Native Corporation, 1989-2010
Karl Hanneman
CEO and Director, International 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 Aviation Services, Inc.,
2011-2018
Director, Alaska Communications Systems, Inc.,
2011-2021
Community Advisory Board Chair, Alaska Communications
Systems, Inc., since 2022
Director, Anchorage Economic Development Corporation
Director, Alaska Resource Education
Joe Marushack
Board Member, Yellowstone Forever, 2015-2022
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 Foundation,
1985-2015
Director, Great Alaska Council Boy Scouts of America,
1993-2012
Director, Alaska Kidney Foundation, 1999-2020
and President
Krystal Nelson
EVP and COO, Bering Straits Native Corporation,
since 2014
SVP and COO, Ahtna Engineering Services, 2007-2014
Recipient of the Alaska Top 40 under 40 Award, 2004
Director, Resource Development Council, since 2022
Aaron Schutt
Director, Resource Development Council, since 2022
President and CEO, Doyon Limited, an Alaska Native
Corporation, 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 Native Heritage Center, 2012-2019
Director, ANCSA Regional Association and Chair,
since 2018
Board of Managers for Doyon Utilities, LLC, since 2007
John Swalling
Founder, Swalling & Associates, PCC, an accounting
fi rm, 1991-2019
Director of Swalling Construction 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 President, CIVIC Ventures,
2005-2019
Director, Commonwealth North, 2002-2020
Linda Thomas
CEO and Director, Alaskan Brewing & Bottling Co. and its
subsidiaries, since 2016, CFO, 1994-1996, COO 1996-2016
Member and Past President,
Juneau Chamber of Commerce, since 2002
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 Corporation, which became BP in 1999
Director, Storm Cat Energy, 2006-2010
Director, Alaska Gasline Development Corporation,
2016-2022
Director, Commonwealth North
Director, United Way of Anchorage
Member and President UAA Chancellor’s Advisory Board,
2002-2016
ANNUAL REPORT 2022
18
MISSION, VISION, VALUES
MISSION, VISION, VALUES
Mission
Vision
To Be Alaska’s Most Trusted Financial Institution
We are committed to adding value for our customers, communities and
shareholders.
To Be Alaska’s Premier Bank And Employer Of Choice
We will be a leader in fi nancial expertise, products and services, focused on
continuous improvement and market growth.
Values Proud To Be Alaskan
We are Alaskan managed. We embody
Alaska’s frontier spirit and values, and
strongly support our communities.
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.
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,
confi dential services. We do what is right.
We Are
ENGAGED
We achieve more because
we are dynamic, proactive
and innovative.
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.
19
INFORMATION & ADDRESSES
INFORMATION & ADDRESSES
Annual Meeting:
May 25, 2023
Virtual Meeting
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
Accretive Legal, PLLC
Investor Information:
For stock information and SEC fi lings, 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 Affi rmative Action Employer. Qualifi ed 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 refl ect 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 refl ected 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 identifi ed in our fi lings 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
refl ect events or conditions after the date of this report.
Financial Snapshot Endnotes:
1 These unaudited schedules provide selected fi nancial information concerning the Company that should be read in conjunction with Item 7 “Management’s Discussion and
Analysis of Financial Condition and Results of Operations” of the 2022 Form 10-K.
2 Tangible book value per share is a non-GAAP ratio 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 effect of intangible assets on the Company’s equity. See
reconciliation to book value per share, the most comparable GAAP measurement included in the 2022 Form 10-K.
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. Management believes this ratio is important as it has received more attention 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. See reconciliation to shareholders’
equity to total assets included in the 2022 Form 10-K.
4 Tax-equivalent net interest margin is a non-GAAP performance measurement in which interest income on non-taxable investments and loan is presented on a tax-
equivalent basis using a combined federal and state statutory rate of 28.43% in 2018 through 2022 and 41.11% in 2017. 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 effectiveness in growing
higher interest yielding assets and managing our costs of interest bearing liabilities over time on a fully tax equivalent basis. See reconciliation to net interest margin, the
comparable GAAP measurement included in the 2022 Form 10-K.
5 In managing our business, we review the effi ciency ratio exclusive of intangible asset amortization, which is a non-GAAP performance measurement. Management believes
that this is a useful fi nancial measurement because we believe this presentation provides investors with a more accurate picture of our operating effi ciency. The effi ciency
ratio is calculated by dividing other operating expense, exclusive of intangible asset amortization, by the sum of net interest income and other operating income. Other
companies may defi ne or calculate this data differently. For additional information see the “Other Operating Expense” section in Part II. Item 7 “Management’s Discussion
and Analysis of Financial Condition and Results of Operations” of the 2022 Form 10-K. See reconciliation to comparable GAAP measurement included in the 2022 Form 10-K.
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 reduction 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, resulting in approximately a $2.7 million increase in tax expense. In
2018, the Company fi nalized changes related to the reduction in the federal tax rate which resulted in a $470,000 reduction in tax expense.
7 Number of banking offi ces does not include RML locations. 2022 number of banking offi ces includes 18 full service branches and 1 loan production offi ce. 2021 number of
banking offi ces includes 17 full service branches and 1 loan production offi ce. 2020 number of banking offi ces includes 16 full service branches and 1 loan production offi ce.
2018 number of banking offi ces includes 15 full service branches and 1 loan production offi ce.
8 FTE includes 336, 321, 312, 311, 320, and 314 Community Banking employees in 2022, 2021, 2020, 2019, 2018 and 2017, respectively. FTE includes 133, 130, 126, 120, 110, and
115 Home Mortgage Lending employees in 2022, 2021, 2020, 2019, 2018 and 2017, respectively.
Reconciliation of Selected Non-GAAP Financial Data to GAAP Financial Measures
These unaudited schedules provide selected fi nancial information concerning the Company that should be read in conjunction with “Part II. Item 7. Management’s Discussion
and Analysis of Financial Condition and Results of Operations” of the 2022 Form 10-K.
ANNUAL REPORT 2022
20
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
4000 W. Dimond Blvd., Suite 2
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 C-3
northrim.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 Financial Center
2695 Mill Bay Road
(907) 481-1620
Nome
110 Front Street, Suite 100
(907) 261-4612
Sitka
Sitka Financial Center
315 Lincoln Street, Suite 206
(907) 747-6252
Soldotna
Soldotna Financial Center
44384 Sterling Highway, Suite 101
(907) 260-7669
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
Residential Mortgage, LLC
Headquarters
100 Calais Drive
Anchorage, AK 99503
(907) 222-8800
residentialmtg.com
10 locations statewide
Affi liated Companies
Northrim Investment Services
3111 C Street
Anchorage, AK 99503
(907) 562-0062
Pacifi c Portfolio Consulting, LLC and
Pacifi c Portfolio Trust Company
Columbia Center
701 5th Ave., Suite 6850
Seattle, WA 98104
(206) 623-6641
pacifi c-portfolio.com
21