Northrim BanCorp (NRIM) 8-K Northrim BanCorp, Inc. Reports Net Income Increased 28% to $2.5 Million in First Quarter 2003

Exhibit 99.1

Northrim News

Headquarters: 3111 C Street, Anchorage, AK 99503 For Immediate Release	Date:	April 16, 2003
	Contact:	Chris Knudson EVP & COO
	Phone:	(907) 261-3304

Northrim BanCorp, Inc. Reports Net Income Increased 28% to $2.5 Million
in First Quarter 2003

ANCHORAGE, AK-April 16, 2003-Northrim BanCorp, Inc. (the “company”) (Nasdaq: NRIM) reported today that net income for the first quarter of 2003 increased 28% to $2.5 million, from $2 million for the same period last year. Diluted earnings per share were $0.41, a 32% increase from $0.31 per share in the like period of 2002.

Total assets at March 31, 2003, were $676 million, up 11% from $606 million a year ago. Total portfolio loans, which exclude loans for sale, grew 12% to $531 million, compared to $474 million at March 31, 2002. Commercial real estate term loans were the major component of loan growth, increasing $29.4 million to $220 million, or 15%, from $190 million at March 31, 2002. The majority of the company’s commercial real estate loans have periodic re-pricing features and maturities of 10 years or less.

Deposits increased 12% to $598 million, up from $535 million a year ago. The main areas of deposit growth were non-interest-bearing demand deposits, savings deposits, and interest-bearing demand deposits which increased 17%, 74%, and 8%, respectively. Time deposits decreased by 6%.

Net interest income, before the provision for loan losses, increased 19% to $9.6 million for the first quarter of 2003, from $8 million for the same period last year. Net interest income, as a percentage of average earning assets on a tax equivalent basis (net interest margin), for the first quarter of 2003 equaled 6.24%, which was an increase from the 5.80% margin in the first quarter of 2002. “The company received pre-payment fees on several commercial real estate loans that were refinanced during the first quarter of this year and had a positive impact on the net interest margin,” said Chris Knudson, executive vice president and COO.

At March 31, 2003, the allowance for loan losses was $8.8 million, or 1.66% of portfolio loans and 137% of non-performing loans. A year ago, the allowance for loan losses was $7.5 million, or 1.59% of portfolio loans and 186% of non-performing loans. The provision for loan losses for the quarter ended March 31, 2003, increased 19% to $429,000, from $360,000 in the first quarter a year ago.

Net loan charge-offs for the first quarter of 2003 were $77,000, versus charge-offs of $23,000 for the first quarter of 2002. Non-performing assets totaled $6.4 million, or 0.95% of total assets, at March 31, 2003, up from $4.1 million, or 0.67% of assets at March 31, 2002. The increase in non-performing assets at March 31, 2003, resulted from several loans being categorized as non-performing. “While non-performing loans have increased, the company continues to take appropriate charge-offs based upon its evaluation of the loans and the status of each borrower,” said Marc Langland, chairman and CEO. “The borrower’s status is affected by several factors including competition, the economy, and management issues. Due to several structural non-performing loans that have been on the books for some time, the company expects somewhat higher levels of non-performing loans this year.”

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Page Two-Northrim BanCorp, Inc. First Quarter 2003 Earnings-April 16, 2003

Other operating income increased 17% to $1.2 million in the first quarter of 2003 due primarily to an increase in earnings from Northrim’s affiliated mortgage company. Earnings from the affiliate increased $297,000 to $464,000 in the first quarter of 2003, from income of $167,000 for the same period last year. “The real estate market has benefited from historically low levels of interest rates that have spurred refinance activity and overall mortgage volumes,” Langland said. Other income declined by 42% in the first quarter of 2003 to $253,000 from $438,000 in the same period in 2002. This decline was caused in large part by Northrim’s $209,000 share of the start-up losses of its affiliated investment advisory company, Elliott Cove Capital Management LLC.

Other operating expense was $6.2 million in the first quarter of 2003, an increase of 11% from the $5.6 million expense in the same period in 2002. The efficiency ratio was 56.8% for the first quarter of 2003, an improvement from 60.9% for the same period a year ago.

In the first quarter of 2003, the company’s return on average assets (ROA) was 1.55%, compared to 1.32% in the same quarter a year ago. Return on average equity was 15.1% in the quarter, compared to 13.1% in 2002. Since the September 2002 announcement of the company’s plans to repurchase 5% of its outstanding shares of common stock (approximately 306,000 shares), the company has repurchased 201,000 shares with 132,000 of those shares repurchased in the first quarter of 2003. “This has favorably impacted the company’s earnings per share and return on equity,” Langland said. In addition, the company paid cash dividends of $305,000 and also declared a dividend of $566,000 during the first quarter of 2003.

Tangible book value per share was $10.19 at March 31, 2003, compared to $8.89 one year ago. Shareholders’ equity increased 10% to $68.1 million, and book value per share increased to $11.41 from $10.14 in the same period last year.

Northrim BanCorp, Inc. is the parent company of Northrim Bank. Northrim Bank is a full-service commercial bank that provides a full range of personal and business banking services. With locations in Anchorage, Eagle River, Wasilla and Fairbanks, Alaska, Northrim Bank differentiates itself with a “Customer First Service” philosophy.

www.northrim.com

This release may contain “forward-looking statements” that are subject to risks and uncertainties. Readers should not place undue reliance on forward-looking statements, which reflect management’s views only as of the date hereof. All statements, other than statements of historical fact, regarding our financial position, business strategy and management’s plans and objectives for future operations are forward-looking statements. When used in this report, the words “anticipate,” “believe,” “estimate,” “expect,” and “intend” and words or phrases of similar meaning, as they relate to Northrim or management, are intended to help identify forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Although we believe that management’s expectations as reflected in forward-looking statements are reasonable, we cannot assure readers that those expectations will prove to be correct. Forward-looking statements are subject to various risks and uncertainties that may cause our actual results to differ materially and adversely from our expectations as indicated in the forward-looking statements. These risks and uncertainties include our ability to maintain or expand our market share or net interest margins, and to implement our marketing and growth strategies. Further, actual results may be affected by our ability to compete on price and other factors with other financial institutions; customer acceptance of new products and services; the regulatory environment in which we operate; and general trends in the local, regional and national banking industry and economy as those factors relate to our cost of funds and return on assets. In addition, there are risks inherent in the banking industry relating to collectibility of loans and changes in interest rates. Many of these risks, as well as other risks that may have a material adverse impact on our operations and business, are identified in our other filings with the SEC and the FDIC. However, you should be aware that these factors are not an exhaustive list, and you should not assume these are the only factors that may cause our actual results to differ from our expectations.

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Page Three-Northrim BanCorp, Inc. First Quarter 2003 Earnings-April 16, 2003

FINANCIAL DATA

Income Statement
(Dollars in thousands, except per share data)

				Quarter Ended March 31:
			2003		2002		% Change
			(unaudited)		(unaudited)		(unaudited)
Interest Income:
	Interest on overnight investments		$	16	$	33		-52	%
	Interest on portfolio investments			822		1,057		-22	%
	Interest and fees on loans			10,496		9,628		9	%
		Total interest income		11,334		10,718		6	%
Interest Expense:
	Interest expense on deposits			1,710		2,661		-36	%
	Interest expense on borrowings			74		30		147	%
		Total interest expense		1,784		2,691		-34	%
		Net interest income		9,550		8,027		19	%
Provision for loan losses				429		360		19	%
		Net interest income after provision for loan losses		9,121		7,667		19	%
Other Operating Income:
	Service charges on deposit accounts			446		389		15	%
	Earning from mortgage affiliate			464		167		178	%
	Other income			253		438		-42	%
		Total other operating income		1,163		994		17	%
Other Operating Expense:
	Salaries and other personnel expense			3,317		3,111		7	%
	Occupancy, net			489		479		2	%
	Equipment expense			380		370		3	%
	Intangible asset amortization expense			92		92		0	%
	Other expense			1,901		1,531		24	%
		Total other operating expense		6,179		5,583		11	%
		Income before income taxes		4,105		3,078		33	%
Provision for income taxes				1,561		1,088		43	%
		Net income	$	2,544	$	1,990		28	%
		Basic EPS	$	0.42	$	0.33		27	%
		Diluted EPS	$	0.41	$	0.31		32	%
		Average basic shares		6,035,583		6,108,250		-1	%
		Average diluted shares		6,215,121		6,335,078		-2	%

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Page Four-Northrim BanCorp, Inc. First Quarter 2003 Earnings-April 16, 2003

Balance Sheet
(Dollars in thousands, except per share data)

			March 31,			December 31,			March 31,			Annual
			2003			2002			2002			% Change
			(unaudited)			(audited)			(unaudited)			(unaudited)
Assets:
	Cash and due from banks		$	22,250		$	28,078		$	21,585			3	%
	Overnight investments			22,065			37,502			12,842			N/M
	Portfolio investments			69,742			81,279			75,428			-8	%
	Loans for sale			6,629			7,437			4,297			54	%
	Portfolio loans			530,925			527,553			473,918			12	%
	Allowance for loan losses			(8,828	)		(8,476	)		(7,537	)		17	%
	Net loans			528,726			526,514			470,678			12	%
	Premises and equipment, net			11,219			10,481			5,855			92	%
	Intangible assets			7,278			7,370			7,646			-5	%
	Other non-interest earning assets			14,295			13,025			11,920			20	%
		Total assets	$	675,575		$	704,249		$	605,954			11	%
Liabilities and Shareholders’ Equity:
	Demand deposits		$	141,639		$	151,780		$	120,656			17	%
	Interest-bearing demand			54,225			53,365			50,337			8	%
	Savings deposits			106,293			104,568			60,932			74	%
	Money market deposits			121,893			154,232			118,969			2	%
	Time deposits			173,973			162,470			184,444			-6	%
		Total deposits		598,023			626,415			535,338			12	%
Borrowings				4,649			6,365			4,355			7	%
Other liabilities				4,804			3,096			4,282			12	%
		Total liabilities		607,476			635,876			543,975			12	%
Shareholders’ equity				68,099			68,373			61,979			10	%
		Total liabilities and equity	$	675,575		$	704,249		$	605,954			11	%
Average Quarter Balances- unaudited
	Loans		$	535,085		$	532,266		$	479,840			12	%
	Total earning assets			619,698			645,657			566,444			9	%
	Total assets			666,778			694,683			609,103			9	%
	Non-interest bearing deposits			144,656			152,850			119,808			21	%
	Interest bearing deposits			439,138			464,676			417,927			5	%
		Total deposits		583,794			617,526			537,735			9	%
	Shareholders’ equity		$	68,360		$	66,802		$	61,790			11	%

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Page Five-Northrim BanCorp, Inc. First Quarter 2003 Earnings-April 16, 2003

Other Data
(Dollars in thousands, except per share data)

			March 31,			December 31,			March 31,
			2003			2002			2002
			(unaudited)			(unaudited)			(unaudited)
Asset Quality:
	Non accrual loans		$	4,937		$	4,717		$	2,489
	Loans 90 days past due			1,487			1,019			1,562
	Restructured loans			—			—			—
		Total non-performing loans		6,424			5,736			4,051
	Other real estate owned			—			—			—
		Total non-performing assets	$	6,424		$	5,736		$	4,051
	Non-performing loans / portfolio loans			1.21	%		1.09	%		0.85	%
	Non-performing assets / assets			0.95	%		0.81	%		0.67	%
	Allowance for loan losses / portfolio loans			1.66	%		1.61	%		1.59	%
	Allowance / non-performing loans			137.42	%		147.77	%		186.05	%
	Loan charge-offs, net for the quarter		$	77		$	1,018		$	23
	Loan charge-offs, net year-to-date		$	77		$	1,819		$	23
	Net loan charge-offs / average loans, annualized			0.06	%		0.36	%		0.02	%
Other Data (At quarter end):
	Book value per share		$	11.41		$	11.22		$	10.14
	Tangible book value per share		$	10.19		$	10.01		$	8.89
	Shareholders’ equity to assets			10.08	%		9.71	%		10.23	%
	Shares outstanding			5,965,946			6,094,536			6,110,966
	Unrealized gain (loss) on AFS securities, net of income taxes		$	1,058		$	1,204		$	(10	)
Other Data (For the quarter):
	Net interest margin (tax equivalent)			6.24	%		5.83	%		5.80	%
	Efficiency ratio*			56.82	%		53.11	%		60.87	%
	Return on average assets			1.55	%		1.34	%		1.32	%
	Return on average equity			15.09	%		13.90	%		13.06	%
	*excludes intangible asset amortization expense