Northrim BanCorp, Inc. reported a 47% year-over-year drop in third-quarter profit as higher credit-loss provisions and weaker other operating income outweighed growth in net interest income.
Net income was $14.4 million, down from $27.1 million in the year-earlier quarter. Revenue totaled $59.65 million, compared with $66.59 million a year earlier, a decline of about 10.4%.
Net interest income increased 10% to $38.9 million. Other operating income fell to $20.8 million from $31.2 million; Northrim said the earlier period included a gain from Pacific Wealth Advisors’ sale of assets.
The provision for credit losses rose to $7.7 million from $1.7 million. Northrim said the increase was primarily tied to a $20 million relationship in its Specialty Finance segment.
Diluted earnings per share under generally accepted accounting principles (GAAP) were $0.63, down from $1.20. Adjusted diluted earnings per share, a non-GAAP measure, were $0.60, compared with $0.72 a year earlier.
Northrim reported a quarterly dividend of $0.17 per share, up from $0.16 a year earlier. The company expects its proposed acquisition of PBCO Financial Corporation to close in the first quarter of 2027, subject to shareholder and regulatory approvals.
