Segment Information

12 Months Ended

Dec. 31, 2015

Segment Reporting [Abstract]

Segment Information

Segment Information

The Company's operations are managed along two operating segments: Community Banking and Home Mortgage Lending. The Community Banking segment's principal business focus is the offering of loan and deposit products to business and consumer customers in its primary market areas. As of December 31, 2015, the Community Banking segment operated 14 branches throughout Alaska. The Home Mortgage Lending segment's principal business focus is the origination and sale of mortgage loans for 1-4 family residential properties. Prior to December 1, 2014, Home Mortgage Lending income was limited to 23.5% equity interest in earnings from RML.

Net income by operating segment is presented in the tables below. Activity reported in the Home Mortgage Lending Segment in 2014 represents eleven months of net income from RML accounted for using the equity method of accounting and one month accounted for on a consolidated basis following the Company's acquisition of the remaining 76.5% equity interest in RML on December 1, 2014, making RML a wholly-owned consolidated subsidiary of the Company.

Summarized financial information for the Company's reportable segments and the reconciliation to the consolidated financial results is shown in the following tables:

December 31, 2015
(In Thousands)	Community Banking		Home Mortgage Lending		Consolidated
Interest income		$57,729		$2,051		$59,780
Interest expense	1,796		1,075		2,871
Net interest income	55,933		976		56,909
Provision (benefit) for loan losses	1,754		—		1,754
Other operating income	14,995		29,613		44,608
Change in FV earn-out liability	4,094		—		4,094
Other operating expense	47,070		21,481		68,551
Income before provision for income taxes	18,010		9,108		27,118
Provision for income taxes	5,024		3,760		8,784
Net income	12,986		5,348		18,334
Less: net income attributable to the noncontrolling interest	551		—		551
Net income attributable to Northrim BanCorp, Inc.		$12,435		$5,348		$17,783
Total assets		$1,431,759		$67,733		$1,499,492
Loans held for sale		$—		$50,553		$50,553

December 31, 2014
(In Thousands)	Community Banking			Home Mortgage Lending		Consolidated
Interest income		$54,204			$142		$54,346
Interest expense	1,942			111		2,053
Net interest income	52,262			31		52,293
Provision (benefit) for loan losses	(636		)	—		(636		)
Other operating income	17,869			3,280		21,149
Other operating expense	46,165			1,873		48,038
Income before provision for income taxes	24,602			1,438		26,040
Provision for income taxes	7,582			591		8,173
Net income	17,020			847		17,867
Less: net income attributable to the noncontrolling interest	459			—		459
Net income attributable to Northrim BanCorp, Inc.		$16,561			$847		$17,408
Total assets		$1,390,852			$58,497		$1,449,349
Loans held for sale		$—			$43,866		$43,866