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SEC filingNorthrim BanCorp, Inc. reported strong financial results for fiscal year 2025, with net income of $64.6 million, a significant increase from $37.0 million in 2024. Total revenue grew to $212.8 million from $155.2 million in the prior year, driven by a 21.4% increase in net interest income to $135.6 million and an 83.6% surge in other operating income to $77.2 million. The company's total assets reached $3.29 billion, up from $3.04 billion in 2024, while total deposits increased to $2.81 billion from $2.68 billion. Key drivers included robust loan growth, with net loans increasing to $2.27 billion, and a $14.5 million gain from the sale of Pacific Wealth Advisors. The efficiency ratio improved to 58.45% from 67.60% in 2024, reflecting better operational efficiency.
Northrim BanCorp, Inc. delivered exceptional financial performance in fiscal year 2025, with net income reaching $64.6 million, representing a 74.7% increase from $37.0 million in 2024. Total revenue grew to $212.8 million, up 37.1% from $155.2 million in the prior year. This strong performance was driven by significant growth in both net interest income and other operating income. Net interest income increased 21.4% to $135.6 million, while other operating income surged 83.6% to $77.2 million. The company's efficiency ratio improved substantially to 58.45% from 67.60% in 2024, indicating enhanced operational efficiency. Total assets grew to $3.29 billion from $3.04 billion, with net loans increasing to $2.27 billion from $2.11 billion.
Revenue growth was driven by multiple factors across the company's operations. Net interest income of $135.6 million benefited from higher interest and fees on loans and loans held for sale, which increased to $160.1 million from $134.7 million in 2024. Other operating income of $77.2 million included several significant components: mortgage banking income of $25.2 million, purchased receivable income of $25.8 million, and a $14.5 million gain on sale by Pacific Wealth Advisors. The company's interest expense on deposits was $40.5 million, while total interest expense was $42.8 million. The net interest margin was 4.69%, up from 4.27% in 2024.
Profitability metrics showed significant improvement in 2025. The operating margin was 39.7%, calculated from income before provision for income taxes of $84.5 million divided by total revenue of $212.8 million. The provision for credit losses was $3.9 million, compared to $3.3 million in 2024. Other operating expenses totaled $124.4 million, with salaries and other personnel expense being the largest component at $78.3 million. The company's tax-equivalent net interest margin was 4.74%, up from 4.33% in 2024. The adjusted efficiency ratio exclusive of intangible asset amortization was 58.45%, significantly improved from 67.60% in the prior year.
The company generated strong cash flow from operations of $139.3 million in 2025, a substantial improvement from negative $8.7 million in 2024. Net cash used by investing activities was $223.4 million, primarily due to increased loans net of $268.5 million and purchases of investment securities available for sale of $96.4 million. Net cash provided by financing activities was $167.3 million, driven by an increase in deposits of $132.8 million and proceeds from the issuance of subordinated debt of $60.0 million. The balance sheet shows total assets of $3.29 billion, with cash and cash equivalents of $145.9 million. Total liabilities were $2.96 billion, and shareholders' equity was $326.5 million, resulting in a total shareholders' equity to total assets ratio of 9.92%.
The company operates in three reportable segments: Community Banking, Home Mortgage Lending, and Specialty Finance. Management has highlighted several strategic priorities including continued growth in core banking operations, expansion of specialty finance activities through the SCF acquisition completed in October 2024, and optimization of operational efficiency. Risk factors identified include credit risk in the loan portfolio, interest rate risk, and economic conditions in Alaska and other markets where the company operates. The company maintains a focus on maintaining strong capital ratios and liquidity positions while pursuing growth opportunities in its core markets.