Northrim BanCorp, Inc. is a publicly traded bank holding company headquartered
in Anchorage, Alaska. The Company’s common stock trades on the Nasdaq
Global Select Stock Market (“NASDAQ”) under the symbol, “NRIM.”
The Company is regulated by the Board of Governors of the Federal Reserve System.
We began banking operations in Anchorage in December 1990, and formed the Company
as an Alaska corporation in connection with our reorganization into a holding
company structure; that reorganization was completed effective December 31,
2001. The Company has grown to be the third largest commercial bank in Alaska
and in Anchorage in terms of deposits. Through our fourteen banking branches
and fourteen mortgage origination offices, we are accessible to approximately
90% of the Alaska population.
The Company has four direct wholly-owned subsidiaries:
Northrim Bank (the “Bank”), a state chartered, full-service commercial
bank headquartered in Anchorage, Alaska. The Bank is regulated by the Federal
Deposit Insurance Corporation (the "FDIC") and the State of Alaska
Department of Commerce, Community and Economic Development, Division of Banking,
Securities and Corporations. The Bank has fourteen branch locations in Alaska;
seven in Anchorage, one in Wasilla, two in Juneau, one in Fairbanks, one in
Ketchikan, one in Sitka, and one Eagle River. We also operate in Washington
State through Northrim Funding Services (“NFS”), a factoring business
that the Bank started in 2004. We offer a wide array of commercial and consumer
loan and deposit products, investment products, and electronic banking services
over the Internet;
Northrim Investment Services Company (“NISC”) was formed in November
2002 to hold the Company’s equity interest in Elliott Cove Capital Management,
LLC ("ECCM"), an investment advisory services company. In the first
quarter of 2006, through NISC, we purchased an equity interest in Pacific Wealth
Advisors, LLC (“PWA”), an investment advisory, trust, and wealth
management business located in Seattle, Washington, in which we hold 24% of
PWAs total outstanding equity interests. In May 2015, we sold all of our equity
interest in ECCM held by NISC;
Northrim Capital Trust I (“NCTI”), an entity that we formed in
May of 2003 to facilitate a trust preferred securities offering by the Company;
Northrim Statutory Trust 2 (“NST2”), an entity that we formed in
December of 2005 to facilitate a trust preferred securities offering by the
Company; and
The Bank has three direct wholly-owned subsidiaries:
Northrim Capital Investments Co. (“NCIC”) is a wholly-owned subsidiary
of the Bank, which holds a 100% interest in a residential mortgage holding company,
Residential Mortgage Holding Company, LLC (“RML”). The predecessor
of RML, Residential Mortgage, LLC, was formed in 1998 and has fourteen offices
throughout Alaska. RML became a wholly-owned subsidiary of NCIC on December
1, 2014. Prior to that, the Company held a 23.5% interest in RML. RML holds
a 30% investment in Homestate Mortgage, LLC and held a 33% interest in Sentinel
until August 31, 2015, when the interest was divested. In March and December
of 2005, NCIC purchased ownership interests totaling 50.1% in Northrim Benefits
Group, LLC (“NBG”), an insurance brokerage company that focuses
on the sale and servicing of employee benefit plans. In the fourth quarter of
2011, NCIC purchased an equity interest in Elliott Cove Insurance Agency LLC
(“ECIA”); an insurance agency that offers annuity and other insurance
products. We sold all of our equity interests in ECIA held by NCIC in May 2015.
Northrim Building, LLC (“NBL”) is a wholly-owned subsidiary of the
Bank that owns and operates the Company’s main office facility at 3111
C Street in Anchorage.
Lake Otis, LLC is a wholly-owned subsidiary of the Bank that owns and operates
the Company’s community branch facility at 2270 E. 37th Avenue in Anchorage.
The Company operates in two primary segments: Community Banking and Home Mortgage
Lending.
The Company’s primary objective is to become Alaskas most trusted financial
institution by adding value for our customers, communities, and shareholders.
We aspire to be Alaskas premier bank and employer of choice as a leader in
financial expertise, products, and services. We value our state, and we are
proud to be Alaskan. We embody Alaskas frontier spirit and values, and we support
our communities. We have a sincere appreciation for our customers, and we strive
to deliver superior customer first service that is reliable, ethical, and secure.
We look for growth opportunities for our customers, our institution and our
employees.
Our strategy is one of value-added growth. Management believes that calculated,
sustainable organic and inorganic market share growth coupled with good asset
quality, an appropriate core deposit and capital base, operational efficiency,
diversified sources of other operating income, and improved profitability is
the most appropriate means of increasing shareholder value.
Our business strategy emphasizes commercial lending products and services through
relationship banking with businesses and professional individuals. Additionally,
we are a significant land development and residential construction lender and
an active lender in the commercial real estate market in our Alaskan markets.
Because of our relatively small size, our experienced senior management team
can be more involved with serving customers and making credit decisions, allowing
us to compete more favorably with larger competitors for lending relationships.
We believe that there is opportunity to increase the Company’s loan portfolio,
particularly in the commercial portion of the portfolio, in the Company’s
current market areas through existing and new customers including in the Companys
new market area in Southeast Alaska. Through our acquisition of Alaska Pacific
Bank, the Companys market now includes Ketchikan, Sitka, and the states capital
city, Juneau. In addition to lending products, in many cases commercial customers
also require multiple deposit and affiliate services that add franchise value
to the Company. Additionally, management believes that our real estate construction
and term real estate loan departments have developed a strong level of expertise
and will continue to compete favorably in our markets.