Northrim BanCorp (NRIM) concentration risks

Northrim BanCorp's business carries a pronounced geographic tilt: 74% of the 1-4 family residential mortgages the company originated in 2025 were located in Alaska, and residential housing more broadly contributed 26% of 2025 revenue in the form of loan fees and interest on mortgage loans. Together these describe a bank whose mortgage business is heavily tied to a single state's housing market — a structural exposure to Alaska's economic cycle rather than to any single counterparty. On the funding side, 32 customers with deposit balances over $10 million accounted for $707.8 million, or 25%, of total deposits as of year-end 2025 — a dependency-type exposure to a relatively small number of large depositors. On the lending side, a smaller share, approximately 20%, of the loan portfolio at the same date was attributable to 28 large borrowing relationships, a comparable but somewhat lower degree of dependency concentrated among large borrowers. Netting these out, the Alaska housing concentration is the exposure most capable of moving results broadly, since it sits underneath both the mortgage-origination and revenue figures, while the large-depositor and large-borrower concentrations are more idiosyncratic risks tied to a bounded set of relationships that could pressure liquidity or credit quality if several moved at once.

For the engine’s reasoning on NRIM’s current verdict — including which dimensions drove the score — see the per-dimension breakdown.

Concentration counts reflect items disclosed in each peer’s most recent 10-K; disclosed-size classification uses TrendMatrix’s internal 10-K extraction taxonomy.