Northrim BanCorp, Inc. reported net income of $14.4 million, or $0.63 per diluted share, for the third quarter of 2026. This figure represents a decrease from the $15.3 million, or $0.68 per diluted share, reported in the second quarter of 2026, and a significant drop from the $27.1 million, or $1.20 per diluted share, earned in the same period a year ago.
The company attributes the year-over-year decline primarily to an increase in the provision for credit losses and the absence of a gain on the sale of assets by Pacific Wealth Advisors that occurred in the third quarter of 2025.
Despite the quarterly dip, Northrim highlighted strong operational performance metrics. Net interest income rose 5% to $38.9 million compared to the prior quarter, while the net interest margin on a tax equivalent basis was 5.02%. The company also noted a 21% increase in pre-provision net revenue.
Asset and deposit growth were also reported. Total portfolio loans stood at $2.40 billion as of September 30, 2026, an 8% increase from a year ago. Total deposits reached $3.05 billion, up 5% year-over-year.
The filing also details a material impairment charge related to a single relationship within the Specialty Finance segment. The impaired relationship had an outstanding balance of $20.0 million. Following a review of the customer's payment disputes and the collectability of collateral, management recorded an impairment charge of $8.8 million. This charge is expected to reduce after-tax earnings by approximately $6.7 million or $0.29 per diluted share for the quarter.
In other news, Northrim announced progress toward its acquisition of PBCO Financial Corporation. The company entered into a definitive merger agreement in July 2026, under which PBCO shareholders will receive 1.16 shares of Northrim common stock for each PBCO share. The transaction is expected to close in the first quarter of 2027.
