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

Interest income		$15,923		$657		$16,580
Interest expense	565		196		761
Net interest income	15,358		461		15,819
Benefit for loan losses	—		—		—
Other operating income	2,770		5,903		8,673
Other operating expense	12,204		5,895		18,099
Income before provision for income taxes	5,924		469		6,393
Provision for income taxes	996		133		1,129
Net income attributable to Northrim BanCorp, Inc.		$4,928		$336		$5,264



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

Interest income		$14,953		$566		$15,519
Interest expense	388		214		602
Net interest income	14,565		352		14,917
Provision for loan losses	2,500		—		2,500
Other operating income	7,636		6,219		13,855
Compensation expense - RML acquisition payments	149		—		149
Other operating expense	12,252		5,290		17,542
Income before provision for income taxes	7,300		1,281		8,581
Provision for income taxes	2,452		528		2,980
Net income	4,848		753		5,601
Less: net income attributable to the noncontrolling interest	78		—		78
Net income attributable to Northrim BanCorp, Inc.		$4,770		$753		$5,523



	Nine Months Ended September 30, 2018
(In Thousands)	Community Banking			Home Mortgage Lending		Consolidated

Interest income		$45,443			$1,527		$46,970
Interest expense	1,435			464		1,899
Net interest income	44,008			1,063		45,071
Benefit for loan losses	(300		)	—		(300		)
Other operating income	8,124			16,325		24,449
Other operating expense	36,319			15,181		51,500
Income before provision for income taxes	16,113			2,207		18,320
Provision for income taxes	2,537			627		3,164
Net income attributable to Northrim BanCorp, Inc.		$13,576			$1,580		$15,156



	Nine Months Ended September 30, 2017
(In Thousands)	Community Banking		Home Mortgage Lending		Consolidated

Interest income		$43,550		$1,326		$44,876
Interest expense	1,483		399		1,882
Net interest income	42,067		927		42,994
Provision for loan losses	3,200		—		3,200
Other operating income	14,502		18,020		32,522
Compensation expense - RML acquisition payments	323		—		323
Other operating expense	37,158		15,335		52,493
Income before provision for income taxes	15,888		3,612		19,500
Provision for income taxes	4,745		1,491		6,236
Net income	11,143		2,121		13,264
Less: net income attributable to the noncontrolling interest	327		—		327
Net income attributable to Northrim BanCorp, Inc.		$10,816		$2,121		$12,937



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

Total assets		$1,421,407		$81,266		$1,502,673
Loans held for sale		$—		$56,636		$56,636



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