Regulatory Matters

12 Months Ended

Dec. 31, 2023

Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract]

Regulatory Matters

Regulatory Matters

    The Company and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum requirements can initiate certain mandatory, and possibly discretionary, actions by regulators that, if undertaken, could have a direct material effect on a company's financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of the Company’s and the Bank’s assets, liabilities, and certain off-balance sheet items as calculated under regulatory practices. The Company’s and the Bank’s capital amounts and classification are also subject to qualitative judgment by the regulators about components, risk weightings, and other factors.

    Quantitative measures established by regulation to ensure capital adequacy require the Company and Bank to maintain minimum amounts and ratios (set forth in the following table) of total capital, Tier 1 capital, and common equity Tier 1 to risk-weighted assets, and of Tier 1 capital to average assets (as defined in the regulations).

    The tables below illustrate the capital requirements for the Company and the Bank and the actual capital ratios for each entity that exceed these requirements.  The dividends that the Bank pays to the Company are limited to the extent necessary for the Bank to meet the regulatory requirements of a “well-capitalized” bank. The capital ratios for the Company exceed those for the Bank primarily because the $10 million trust preferred securities offerings that the Company completed in the fourth quarter of 2005 are included in the Company’s capital for regulatory purposes although they are accounted for as a liability in its financial statements. The trust preferred securities are not included in the Bank's capital ratios.  

Northrim BanCorp, Inc.	Actual			Adequately-Capitalized			Well-Capitalized
(In Thousands)	Amount	Ratio		Amount	Ratio		Amount	Ratio
As of December 31, 2023:
Common equity tier 1 capital (to risk-weighted assets)	$235,378	10.98	%	$96,466	≥ 4.5	%	NA	NA
Total Capital (to risk-weighted assets)	$264,775	12.35	%	$171,514	≥ 8	%	NA	NA
Tier I Capital (to risk-weighted assets)	$245,087	11.43	%	$128,655	≥ 6	%	NA	NA
Tier I Capital (to average assets)	$245,087	8.72	%	$112,425	≥ 4	%	NA	NA
As of December 31, 2022:
Common equity tier 1 capital (to risk-weighted assets)	$231,920	12.29	%	$84,918	≥ 4.5	%	NA	NA
Total Capital (to risk-weighted assets)	$257,425	13.64	%	$150,982	≥ 8	%	NA	NA
Tier I Capital (to risk-weighted assets)	$241,617	12.81	%	$113,170	≥ 6	%	NA	NA
Tier I Capital (to average assets)	$241,617	9.01	%	$107,266	≥ 4	%	NA	NA
Northrim Bank	Actual			Adequately-Capitalized			Well-Capitalized
(In Thousands)	Amount	Ratio		Amount	Ratio		Amount	Ratio
As of December 31, 2023:
Common equity tier 1 capital (to risk-weighted assets)	$210,179	9.89	%	$95,633	≥ 4.5	%	$138,136	≥ 6.5	%
Total Capital (to risk-weighted assets)	$229,772	10.81	%	$170,044	≥ 8	%	$212,555	≥ 10	%
Tier I Capital (to risk-weighted assets)	$210,084	9.88	%	$127,581	≥ 6	%	$170,109	≥ 8	%
Tier I Capital (to average assets)	$210,084	7.51	%	$111,896	≥ 4	%	$139,870	≥ 5	%
As of December 31, 2022:
Common equity tier 1 capital (to risk-weighted assets)	$198,034	10.59	%	$84,150	≥ 4.5	%	$121,551	≥ 6.5	%
Total Capital (to risk-weighted assets)	$213,745	11.42	%	$149,734	≥ 8	%	$187,167	≥ 10	%
Tier I Capital (to risk-weighted assets)	$197,937	10.58	%	$112,252	≥ 6	%	$149,669	≥ 8	%
Tier I Capital (to average assets)	$197,937	7.42	%	$106,705	≥ 4	%	$133,381	≥ 5	%

    As of the most recent notification from its regulatory agencies, the Bank was categorized as "well-capitalized" under the regulatory framework for prompt corrective action. There are no conditions or events since that notification that management believes have changed the Bank’s regulatory capital category. Management believes, as of December 31, 2023, that the Company and Bank meets all capital adequacy requirements to which they are subject.