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 June 30, 2018, 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.

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



	Three Months Ended June 30, 2018
(In Thousands)	Community Banking			Home Mortgage Lending		Consolidated

Interest income		$15,057			$538		$15,595
Interest expense	443			163		606
Net interest income	14,614			375		14,989
Benefit for loan losses	(300		)	—		(300		)
Other operating income	2,836			5,478		8,314
Other operating expense	11,748			4,858		16,606
Income before provision for income taxes	6,002			995		6,997
Provision for income taxes	882			285		1,167
Net income attributable to Northrim BanCorp, Inc.		$5,120			$710		$5,830



	Three Months Ended June 30, 2017
(In Thousands)	Community Banking		Home Mortgage Lending		Consolidated

Interest income		$14,482		$410		$14,892
Interest expense	529		119		648
Net interest income	13,953		291		14,244
Provision for loan losses	300		—		300
Other operating income	3,411		6,351		9,762
Other operating expense	13,284		5,226		18,510
Income before provision for income taxes	3,780		1,416		5,196
Provision for income taxes	871		584		1,455
Net income	2,909		832		3,741
Less: net income attributable to the noncontrolling interest	152		—		152
Net income attributable to Northrim BanCorp, Inc.		$2,757		$832		$3,589



	Six Months Ended June 30, 2018
(In Thousands)	Community Banking			Home Mortgage Lending		Consolidated

Interest income		$29,520			$870		$30,390
Interest expense	870			268		1,138
Net interest income	28,650			602		29,252
Benefit for loan losses	(300		)	—		(300		)
Other operating income	5,354			10,422		15,776
Other operating expense	24,115			9,286		33,401
Income before provision for income taxes	10,189			1,738		11,927
Provision for income taxes	1,541			494		2,035
Net income attributable to Northrim BanCorp, Inc.		$8,648			$1,244		$9,892



	Six Months Ended June 30, 2017
(In Thousands)	Community Banking		Home Mortgage Lending		Consolidated

Interest income		$28,597		$760		$29,357
Interest expense	1,095		185		1,280
Net interest income	27,502		575		28,077
Provision for loan losses	700		—		700
Other operating income	6,866		11,801		18,667
Compensation expense - RML acquisition payments	174		—		174
Other operating expense	24,906		10,045		34,951
Income before provision for income taxes	8,588		2,331		10,919
Provision for income taxes	2,293		963		3,256
Net income	6,295		1,368		7,663
Less: net income attributable to the noncontrolling interest	249		—		249
Net income attributable to Northrim BanCorp, Inc.		$6,046		$1,368		$7,414



June 30, 2018
(In Thousands)	Community Banking		Home Mortgage Lending		Consolidated

Total assets		$1,392,329		$78,111		$1,470,440
Loans held for sale		$—		$54,306		$54,306



December 31, 2017
(In Thousands)	Community Banking		Home Mortgage Lending		Consolidated

Total assets		$1,452,602		$65,994		$1,518,596
Loans held for sale		$—		$43,979		$43,979