Business Combinations (Tables)

6 Months Ended

Jun. 30, 2014

Business Combinations [Abstract]

Schedule of Business Acquisitions by Acquisition

A summary of the net assets acquired and the estimated fair value adjustments of Alaska Pacific are presented below:  

	Alaska Pacific
(In Thousands)	April 1, 2014
Cost basis net assets		$14,733
Cash payment made	(6,423		)
Common stock issued	(7,446		)
Fair value adjustments:
Net loans	(1,137		)
Premises and equipment	547
Other intangible assets	623
Mortgage servicing rights	(119		)
Deposits	(844		)
Other	224
Bargain purchase gain		$158

Assets Acquired and Liabilities Assumed

A summary of assets acquired and liabilities assumed at their estimated fair values are presented below:  

	Alaska Pacific
(In Thousands)	April 1, 2014
Assets Acquired:
Cash and equivalents		$12,956
Investment securities	7,240
Net loans	138,432
Premises and equipment	3,436
Other intangibles	623
Mortgage servicing rights	1,170
Other real estate owned	1,709
Other assets	1,633
Total assets acquired		$167,199
Liabilities Assumed:
Deposits		$151,438
Other liabilities	1,734
Total liabilities assumed		$153,172

Schedule of Loans Acquired

Alaska Pacific purchased loans not subject to the requirements of FASB ASC  310-30 Loans and Debt Securities Acquired with Deteriorated Credit Quality ("ASC 310-30") are presented below at acquisition:

(In Thousands)	April 1, 2014
Contractually required principal payments		$133,921
Purchase adjustment for credit, interest rate, and liquidity	612
Fair value of purchased non-credit impaired loans		$134,533

Loans Acquired with Deteriorating Quality

Purchased credit impaired loans at acquisition are presented below:

(In Thousands)	April 1, 2014
Contractually required principal payments		$7,553
Nonaccretable difference	(3,654		)
Fair value of purchased credit impaired loans		$3,899

As of June 30, 2014, loans accounted for under ASC 310-30 are as follows:

(In Thousands)
Contractually required principal payments		$7,473
Nonaccretable difference	(3,654		)
Fair value of purchased credit impaired loans		$3,819

Pro Forma Information

The following table presents unaudited pro forma results of operations for the six month periods ended June 30, 2014 and 2013 as if the acquisition of Alaska Pacific had occurred on January 1, 2013. The proforma results have been prepared for comparative purposes only and are not necessarily indicative of the results that would have been obtained had the acquisition actually occurred on January 1, 2013.

(In Thousands, except earnings per share data)	June 30, 2014
						Pro Forma				Pro Forma
	Company		Alaska Pacific1			Adjustments				Combined
Net interest and other income		$31,484		$2,095			($4	)	2		$33,575
Net income attributable to Northrim BanCorp, Inc.	7,027		(1,282		)	(175		)	3	5,570
Earnings Per Share, Basic		$1.05									$0.83
Earnings Per Share, Diluted		$1.04									$0.82
Weighted Average Shares Outstanding, Basic	6,683,897									6,683,897
Weighted Average Shares Outstanding, Diluted	6,774,434									6,774,434
(In Thousands, except earnings per share data)	June 30, 2013
						Pro Forma				Pro Forma
	Company		Alaska Pacific1			Adjustments				Combined
Net interest and other income		$28,332		$4,845			($20	)	2		$33,157
Net income attributable to Northrim BanCorp, Inc.	6,170		82			113			3	6,365
Earnings Per Share, Basic		$0.95									$0.98
Earnings Per Share, Diluted		$0.94									$0.97
Weighted Average Shares Outstanding, Basic	6,513,935									6,513,935
Weighted Average Shares Outstanding, Diluted	6,590,899									6,590,899

¹ Alaska Pacific represents results from January 1 to March 31 for 2014 and represents results from January 1 to June 30 for 2013.

² Amount of amortization/ accretion of the fair value adjustments on loans and certificates of deposit.

³ Amount of amortization/accretion of the fair value adjustments on loans and certificates of deposit, bargain purchase gain, amortization of cored deposit intangible, and the change in the provision for income taxes.