Northrim BanCorp Inc. reported unaudited earnings results for the fourth quarter and year ended December 31, 2014. For the fourth quarter of 2014, net income was $6.7 million, or $0.97 per diluted share, compared to $3.7 million, or $0.53 per diluted share, in the third quarter of 2014 and $2.7 million, or $0.40 per diluted share, in the fourth quarter a year ago. Net income, excluding gains and expenses from the acquisitions of Alaska Pacific and Residential Mortgage, expanded 39% in the fourth quarter of 2014 compared to the fourth quarter of 2013, and 23% for the full year in 2014. Total revenues, which include net interest income plus other operating income, increased 25% in the quarter and 63% as compared to the fourth quarter of 2013. Fourth quarter 2014 revenues were $23.3 million compared to $14.3 million in the fourth quarter of 2013. Excluding the gains from the acquisition of Residential Mortgage in the fourth quarter of 2014 and the sale of the branch in the third quarter of 2014, total revenues were $20.3 million in the fourth quarter of 2014. Net interest income grew 6% to $14.5 million in the fourth quarter of 2014, compared to $13.7 million in the third quarter of 2014 and increased 26% from $11.5 million in the fourth quarter a year ago. Total interest income was $15.18 million, compared to $12.02 million a year ago. Income before provision for income taxes was $8.795 million, compared to $3.621 million a year ago. Return on average assets was 1.84%, compared to 0.89% a year ago. Return on average equity was 16.40%, compared to 7.36% a year ago.

The company reported that performance of its core operations, augmented by two acquisitions during the year, generated increased profitability in 2014. Net profits in the full year of 2014 totaled $17.4 million, or $2.54 per diluted share, compared to $12.3 million, or $1.87 per diluted share, in 2013. Contributions from the second quarter acquisition of Alaska Pacific Bancshares Inc. and the fourth quarter acquisition of Residential Mortgage Holding Company, LLC increased revenues and operating costs in 2014. For the full year, revenues increased 29% to $73.4 million from $56.9 million. Excluding the gains from the acquisition of Residential Mortgage in the fourth quarter of 2014 and the sale of the branch in the third quarter of 2014, total revenues were $69.3 million for the full year 2014. Tangible book value was $20.48 per share at December 31, 2014, compared to $22.08 at September 30, 2014 and $20.86 per share a year ago, reflecting an increase in intangible assets attributable to the two major acquisitions completed in the year. Net interest income was $52.905 million, compared to $44.034 million a year ago. Total interest income was $54.96 million, compared to $46.07 million a year ago. Book value per share was $23.99 at December 31, 2014, compared to $22.07 at December 31, 2013. Income before provision for income taxes was $24.703 million, compared to $17.689 million a year ago. Return on average assets was 1.30%, compared to 1.07% a year ago. Return on average equity was 11.19%, compared to 8.75% a year ago.

Net loan charge-offs for the fourth quarter were $20,000 compared to $246,000 for the fourth quarter a year ago.