Community Banking
Lending Services: We have an emphasis on commercial and real estate lending.
We also believe we have a significant niche in construction and land development
lending in Anchorage, Fairbanks, the Matanuska-Susitna Valley, and Southeast
Alaska.
Asset-based lending: We provide short-term working capital to customers primarily
in our Alaska markets as well as Washington, Oregon and some other states by
purchasing their accounts receivable through NFS. In 2016, we expect NFS to
continue to penetrate these markets and to continue to contribute to the Company’s
net income.
Deposit Services: Our deposit services include noninterest-bearing checking
accounts and interest-bearing time deposits, checking accounts, and savings
accounts. Our interest-bearing accounts generally earn interest at rates established
by management based on competitive market factors and management’s desire
to increase or decrease certain types or maturities of deposits. We have two
deposit products that are indexed to specific U.S. Treasury rates.
Several of our deposit services and products are:
An indexed money market deposit account;
A “Jump-Up” certificate of deposit (“CD”) that allows
additional deposits with the opportunity to increase the rate to the current
market rate for a similar term CD;
An indexed savings account that allows additional deposits, quarterly withdrawals
without penalty, and tailored maturity dates; and
Arrangements to courier noncash deposits from our customers to their local Northrim
Bank branch.
Other Services: In addition to our traditional deposit and lending services,
we offer our customers several convenience services: Consumer Online Banking,
Mobile App and Mobile Deposit, Mobile Web and Text Banking, Business Online
Banking, FinanceWorks™ powered by Quicken®, Online Statements, Consumer
Debit Cards, Business Debit Cards, Cash Back Rewards, personalized checks and
instantly issued debit cards at account opening, telebanking, and automated
teller services. Other special services include personalized checks at account
opening, overdraft protection from a savings account, extended banking hours
and commercial drive-up banking at many locations, automatic transfers and payments,
wire transfers, direct payroll deposit, electronic tax payments, Automated Clearing
House origination and receipt, remote deposit capture, merchant services, cash
management programs to meet the specialized needs of business customers, annuity
products, long term investment portfolios, and in some markets, courier agents
who pick up noncash deposits from business customers.
Other Services Provided through Affiliates: The Company sells and services employee
benefit plans for small and medium sized businesses in Alaska through NBG, an
insurance brokerage company. In the fourth quarter of 2013, we launched the
Enroll Alaska initiative, a division of NBG, which works to bring insurance
coverage under the Affordable Health Care Act to uninsured Alaskans. Our affiliate
PWA provides investment advisory, trust, and wealth management services for
customers who are primarily located in the Pacific Northwest and Alaska. We
plan to continue to leverage our affiliate relationships to strengthen our existing
customer base and bring new customers into the Bank.
Significant Business Concentrations: No individual or single group of related
accounts is considered material in relation to our total assets or total revenues,
or to the total assets, deposits or revenues of the Bank, or in relation to
our overall business. Based on classification by North American Industry Classification
System, there are no segments that exceed 10% of portfolio loans, except for
real estate. In addition to its review of NAICS codes, the Company has also
identified concentrations in two specialized industries. We estimate that approximately
5% of portfolio loans have direct exposure to the oil and gas industry in Alaska
and approximately 8% of portfolio loans are attributable to a combination of
Alaska Native Regional and Village Corporations.
Home Mortgage Lending
Lending Services: The Company originates 1-4 family residential mortgages throughout
Alaska which we sell to the secondary market. Residential mortgage choices include
several products from the Alaska Housing Finance Corporation including first-time
homebuyer, veteran's and rural community programs; Federal Housing Authority,
or "FHA" loans; Veteran's Affairs, or VA loans; Jumbo loans; and various
conventional mortgages.