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, 2018, the Community Banking segment operated 15 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:



December 31, 2018
(In Thousands)	Community Banking			Home Mortgage Lending		Consolidated

Interest income		$62,097			$2,080		$64,177
Interest expense	2,370			599		2,969
Net interest income	59,727			1,481		61,208
Benefit for loan losses	(500		)	—		(500		)
Other operating income	11,323			20,844		32,167
Other operating expense	49,956			19,844		69,800
Income before provision for income taxes	21,594			2,481		24,075
Provision for income taxes	3,361			710		4,071
Net income		$18,233			$1,771		$20,004

Total assets		$1,443,745			$59,243		$1,502,988
Loans held for sale		$—			$34,710		$34,710



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

Interest income		$58,308		$1,800		$60,108
Interest expense	1,860		570		2,430
Net interest income	56,448		1,230		57,678
Provision for loan losses	3,200		—		3,200
Other operating income	17,187		23,287		40,474
Compensation expense, RML acquisition payments	130		—		130
Other operating expense	50,271		20,752		71,023
Income before provision for income taxes	20,034		3,765		23,799
Provision for income taxes	9,499		822		10,321
Net income	10,535		2,943		13,478
Less: net income attributable to the noncontrolling interest	327		—		327
Net income attributable to Northrim BanCorp, Inc.		$10,208		$2,943		$13,151

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



December 31, 2016
(In Thousands)	Community Banking		Home Mortgage Lending		Consolidated

Interest income		$56,986		$1,932		$58,918
Interest expense	1,739		822		2,561
Net interest income	55,247		1,110		56,357
Provision (benefit) for loan losses	2,298		—		2,298
Other operating income	13,756		29,507		43,263
Compensation expense, RML acquisition payments	4,775		—		4,775
Other operating expense	48,610		22,895		71,505
Income before provision for income taxes	13,320		7,722		21,042
Provision for income taxes	2,867		3,185		6,052
Net income	10,453		4,537		14,990
Less: net income attributable to the noncontrolling interest	579		—		579
Net income attributable to Northrim BanCorp, Inc.		$9,874		$4,537		$14,411

Total assets		$1,459,261		$66,590		$1,525,851
Loans held for sale		$—		$43,849		$43,849