EX-99.1

Northrim BanCorp, Inc. Reports 11% Increase in Earnings Per Share and 8% increase in Profits for
Fourth Quarter; Assets of $895 Million at Year End

ANCHORAGE, AK—Jan. 18, 2006—Northrim BanCorp, Inc. (the “company”) (Nasdaq: NRIM) reported today that for the fourth quarter ended December 31, 2005, net income increased 8% to $3.1 million, from $2.9 million in the same quarter last year. During the fourth quarter ended December 31, 2005, diluted earnings per share were up 11% to $0.51, as compared to diluted earnings per share of $0.46 in the same quarter last year. For 2005, net income increased 4% to $11.2 million, as compared to $10.7 million in 2004. For the year 2005, diluted earnings per share increased 6% to $1.81, as compared to diluted earnings per share of $1.71 for the year ended December 31, 2004.

Total assets at December 31, 2005, were $895 million, up 12% from $801 million a year ago. Total average assets for the year ended December 31, 2005, were $842 million, up 11% from $759 million, for the year ended December 31, 2004. Assets from purchased receivables increased more than four-fold, to $12.2 million as compared to $2.2 million at December 31, 2004.

Total average loans for the period ended December 31, 2005 were $698 million, up 11% from $629 million for the year ended December 31, 2004. Total loans at December 31, 2005, were $705 million, up 4%, from $678 million at December 31, 2004. Commercial loans accounted for approximately 73% of the loan growth, increasing $20 million to $287 million, at December 31, 2005. “Our loan growth this year was tempered by several large pay-offs in the fourth quarter of 2005,” said Joe Schierhorn, CFO. “We anticipate additional loan pay-offs through the first quarter of 2006, which are expected to impact our loan growth during that period.”

Deposits increased 12% to $780 million for the year ended December 31, 2005, up from $699 million a year ago. Total average deposits for the period ended December 31, 2005 were $733 million, up 11% from $661 million, for the period ended December 31, 2004.

The Alaska CD, a savings account with an adjustable interest rate and an open-ended maturity, grew 61%, to $198 million for the period ending December 31, 2005. Interest-bearing demand deposits grew 27%, to $76 million, from $60 million in 2004, and demand deposits grew 7% to $197 million, from $184 million in 2004. “We are beginning to see results from our new High Performance Checking program in higher demand deposits as well as in service charge income,” said Marc Langland, president and CEO. Deposit service charge income was up 17% in the fourth quarter of 2005, to $474,000, as compared to $404,000 for the same quarter in 2004.

Net interest income, before the provision for loan losses, was up 7% for the quarter ended December 31, 2005, from $10.9 million to $11.6 million, and 6% for the year ended December 31, 2005, to $43.9 million, from $41.3 million for the year ended December 31, 2004. Net interest income, as a percentage of average earning assets on a tax equivalent basis (net interest margin), for 2005 was 5.66%, a decrease from 5.88% for the like period in 2004. “In a rapidly rising interest rate environment, the increases to our interest costs reduced our net interest margin,” said Joe Schierhorn, CFO. “As interest rates level off, and we continue to reprice our loan portfolio to current market conditions, we anticipate improvement in the net interest margin.”

At December 31, 2005, the allowance for loan losses was $10.7 million, or 1.52% of portfolio loans and 176% of non-performing loans. A year ago, the allowance for loan losses was $10.8 million, or 1.59% of portfolio loans and 163% of non-performing loans. The provision for loan losses increased 7% to $642,000 for the quarter ended December 31, 2005, from $600,000 in the fourth quarter a year ago. For the year ended December 31, 2005, the provision for loan losses decreased 27% to $1.2 million, from $1.6 million for the same period in 2004.

Net loan charge-offs for 2005 increased to $1.2 million, or .18% of average loans for 2005, from $1 million, or .16% of average loans, for 2004. Non-performing assets totaled $6.2 million, or .69% of total assets, at December 31, 2005, a decrease from $6.6 million, or .82% of assets, at December 31, 2004.

Total other operating income increased 28% to $1.4 million in the fourth quarter of 2005, and 27% to $4.8 million for the year. Earnings from Northrim’s mortgage affiliate decreased 39% to $156,000 in the fourth quarter of 2005, but increased 13% to $493,000 for the year due to an increase in its mortgage loan volume. In addition, purchased receivable income increased 484% to $339,000 in the fourth quarter of 2005, and 394% to $993,000 for the year.

Other operating expense was $7.4 million in the fourth quarter of 2005, an increase of 8% from $6.9 million in the same period in 2004. For the year ending December 31, 2005, other operating expense increased 11% to $29.5 million as compared to $26.5 million for the year ending December 31, 2004. The efficiency ratio was 55.9% for the fourth quarter and 59.7% for the full year of 2005, compared to 56.2% and 58.1%, respectively, for the fourth quarter and full year of 2004.

In the fourth quarter of 2005, the company’s return on average assets (ROA) was 1.36%, compared to 1.43% in the same quarter a year ago. ROA was 1.33% for the full year of 2005 compared to an ROA of 1.41% in 2004. Return on average equity was 14.59% for the fourth quarter in 2005 and 13.17% for the year, compared to 13.79% and 13.50%, respectively, in 2004.

Tangible book value per share was $13.48 at December 31, 2005, compared to $12.60 one year ago. Shareholders’ equity increased 1% to $84.5 million at December 31, 2005, and book value per share increased to $14.56 from $13.69 in the same period last year. “Northrim repurchased approximately 309,000 shares of stock in 2005 under the currently authorized stock repurchase program, resulting in a 4% reduction in shares outstanding in the fourth quarter, and a corresponding increase in earnings per share for the fourth quarter of $.02 per share, or 4%” said Chris Knudson, COO. “Our strong results for 2005 and the decrease in shares outstanding have delivered good value to our shareholders.”

The company intends to continue to repurchase shares of its common stock from time to time depending on market conditions, but it can make no assurances that it will continue this program or that it will repurchase all of the 77,213 remaining shares authorized for repurchase under this program.

During 2005, the company declared and paid dividends totaling $.425 per share to its shareholders. At December 31, 2005, the closing price of the company’s stock was $23.45 per share, which resulted in a dividend yield of 1.81%.

Northrim BanCorp, Inc. is the parent company of Northrim Bank, a full-service commercial bank that provides a full range of personal and business banking services through locations in Anchorage, Eagle River, Wasilla, and Fairbanks, Alaska, and a factoring division in Washington. The bank differentiates itself with a “Customer First Service” philosophy. Affiliated companies include Elliott Cove Capital Management, LLC; Residential Mortgage; and Northrim Benefits Group, LLC.

This release includes “forward-looking statements” as that term is defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on management’s beliefs and assumptions based on currently available information, and we have not undertaken to update these statements except as required by the Securities Exchange Act of 1934, as amended, and the rules promulgated thereunder. All statements, other than statements of historical fact, regarding our financial position, business strategy and management’s plans and objectives for future operations are forward-looking statements. When used in this report, the words “anticipate,” “believe,” “estimate,” “expect,” and “intend” and words or phrases of similar meaning, as they relate to Northrim or management, are intended to help identify forward-looking statements. Although we believe that management’s expectations as reflected in forward-looking statements are reasonable, we cannot assure readers that those expectations will prove to be correct. Forward-looking statements are subject to various risks and uncertainties that may cause our actual results to differ materially and adversely from our expectations as indicated in the forward-looking statements. These risks and uncertainties include our ability to maintain or expand our market share or net interest margins, and to implement our marketing and growth strategies. Further, actual results may be affected by our ability to compete on price and other factors with other financial institutions; customer acceptance of new products and services; the regulatory environment in which we operate; and general trends in the local, regional and national banking industry and economy as those factors relate to our cost of funds and return on assets. In addition, there are risks inherent in the banking industry relating to collectibility of loans and changes in interest rates. Many of these risks, as well as other risks that may have a material adverse impact on our operations and business, are identified in our other filings with the SEC and the FDIC. However, you should be aware that these factors are not an exhaustive list, and you should not assume these are the only factors that may cause our actual results to differ from our expectations.


Balance Sheet
(Dollars in thousands, except per share data)
December 31,				December 31,			Annual
		2005			2004		% Change

(unaudited)				(unaudited)			(unaudited)
Assets:
Cash and due from banks	$	28,854		$	18,936			52	%
Overnight investments		60,836			12,157			400	%
Portfolio investments		54,975			61,475			-11	%
Purchased receivables		12,198			2,191			457	%
Loans		705,059			678,269			4	%
Allowance for loan losses		(10,706	)		(10,764	)		-1	%

Net loans		694,353			667,505			4	%
Premises and equipment, net		10,603			10,583			0	%
Intangible assets		6,266			6,634			-6	%
Other assets		26,937			21,245			27	%
Total assets	$	895,022		$	800,726			12	%

Liabilities and Shareholders’ Equity:
Demand deposits	$	196,616		$	183,959			7	%
Interest-bearing demand		75,988			59,933			27	%
Savings deposits		46,790			47,406			-1	%
Alaska CDs		197,989			123,223			61	%
Money market deposits		151,903			142,181			7	%
Time deposits		110,580			142,359			-22	%

Total deposits		779,866			699,061			12	%
Borrowings		8,415			6,478			30	%
Trust preferred securities		18,000			8,000			125	%
Other liabilities		4,267			3,829			11	%

Total liabilities		810,548			717,368			13	%
Shareholders' equity		84,474			83,358			1	%
Total liabilities and equity	$	895,022		$	800,726			12	%

Average Quarter Balances — unaudited
Loans	$	713,849		$	664,978			7	%
Total earning assets		826,548			740,256			12	%
Total assets		899,476			796,697			13	%
Non-interest bearing deposits		192,006			191,863			0	%
Interest bearing deposits		598,898			503,697			19	%
Total deposits		790,904			695,560			14	%
Shareholders' equity		84,105			82,693			2	%
Average Year-to-date Balances — unaudited
Loans	$	698,240		$	628,830			11	%
Total earning assets		778,597			704,471			11	%
Total assets		842,407			759,259			11	%
Non-interest bearing deposits		182,535			181,731			0	%
Interest bearing deposits		550,782			478,951			15	%
Total deposits		733,317			660,682			11	%
Shareholders' equity		84,833			79,278			7	%


Income Statement
(Dollars in thousands, except per share data)
	Quarter EndedDecember 31:
		2005		2004	% Change
(unaudited)			(unaudited)		(unaudited)
Interest Income:
Interest and fees on loans	$	15,281	$	12,544		22	%
Interest on portfolio investments		529		593		-11	%
Interest on overnight investments		534		65		722	%
Total interest income		16,344		13,202		24	%
Interest Expense:
Interest expense on deposits		4,489		2,147		109	%
Interest expense on borrowings		241		153		58	%
Total interest expense		4,730		2,300		106	%
Net interest income		11,614		10,902		7	%
Provision for loan losses		642		600		7	%
Net interest income after provision for loan losses		10,972		10,302		7	%
Other Operating Income:
Service charges on deposit accounts		474		404		17	%
Earning from mortgage affiliate		156		256		-39	%
Purchased receivable income		339		58		484	%
Other income		457		396		15	%
Total other operating income		1,426		1,114		28	%
Other Operating Expense:
Salaries and other personnel expense		4,383		4,044		8	%
Occupancy, net		660		566		17	%
Equipment expense		346		356		-3	%
Intangible asset amortization expense		92		92		0	%
Other expense		1,890		1,792		5	%
Total other operating expense		7,371		6,850		8	%
Income before income taxes		5,027		4,566		10	%
Provision for income taxes		1,935		1,699		14	%
Net income	$	3,092	$	2,867		8	%
Basic EPS	$	0.53	$	0.47		13	%
Diluted EPS	$	0.51	$	0.46		11	%
Average basic shares		5,830,351		6,090,963		-4	%
Average diluted shares		6,011,918		6,275,316		-4	%


Income Statement
(Dollars in thousands, except per share data)
			Twelve Months Ended December 31:
				2005		2004	% Change
Interest Income:			(unaudited)		(unaudited)		(unaudited)
	Interest and fees on loans		$	55,870	$	45,898		22	%
	Interest on portfolio investments			2,202		2,492		-12	%
	Interest on overnight investments			709		164		332	%
		Total interest income		58,781		48,554		21	%
Interest Expense:
	Interest expense on deposits			13,990		6,709		109	%
	Interest expense on borrowings			883		574		54	%
		Total interest expense		14,873		7,283		104	%
		Net interest income		43,908		41,271		6	%
Provision for loan losses				1,170		1,601		-27	%
		Net interest income after provision for loan losses		42,738		39,670		8	%
Other Operating Income:
	Service charges on deposit accounts			1,800		1,718		5	%
	Earnings from mortgage affiliate			493		438		13	%
	Purchased receivable income			993		201		394	%
	Other income			1,547		1,435		8	%
		Total other operating income		4,833		3,792		27	%
Other Operating Expense:
	Salaries and other personnel expense			17,656		15,708		12	%
	Occupancy, net			2,417		2,130		13	%
	Equipment expense			1,371		1,372		0	%
	Intangible asset amortization expense			368		368		0	%
	Other expense			7,665		6,957		10	%
		Total other operating expense		29,477		26,535		11	%
		Income before income taxes		18,094		16,927		7	%
Provision for income taxes				6,924		6,227		11	%
		Net income	$	11,170	$	10,700		4	%
		Basic EPS	$	1.87	$	1.76		6	%
		Diluted EPS	$	1.81	$	1.71		6	%
		Average basic shares		5,987,404		6,079,315		-2	%
		Average diluted shares		6,173,137		6,270,615		-2	%


Other Data
(Dollars in thousands, except per share data)
December 31,				December 31,
		2005			2004
(unaudited)				(unaudited)
Asset Quality:
Non accrual loans	$	5,090		$	5,876
Loans 90 days past due		981			290
Restructured loans		—			424
Total non-performing loans		6,071			6,590
Other real estate owned		105			—
Total non-performing assets	$	6,176		$	6,590
Non-performing loans / portfolio loans		0.86	%		0.97	%
Non-performing assets / assets		0.69	%		0.82	%
Allowance for loan losses / portfolio loans		1.52	%		1.59	%
Allowance / non-performing loans		176.35	%		163.34	%
Loan charge-offs, net for the quarter	$	1,184		$	529
Loan charge-offs, net year-to-date	$	1,228		$	1,024
Net loan charge-offs / average loans, annualized		0.18	%		0.16	%
Other Data (At quarter end):
Book value per share	$	14.56		$	13.69
Tangible book value per share	$	13.48		$	12.60
Tier 1 / Risk Adjusted Assets		12.10	%		11.62	%
Total Capital / Risk Adjusted Assets		13.35	%		12.87	%
Tier 1 /Average Assets		10.81	%		10.72	%
Shares outstanding		5,803,487			6,089,120
Unrealized gain (loss) on AFS securities,
net of income taxes		($489	)	$	4
Other Data (For the quarter):
Net interest margin (tax equivalent)		5.59	%		5.87	%
Efficiency ratio*		55.82	%		56.24	%
Return on average assets		1.36	%		1.43	%
Return on average equity		14.59	%		13.79	%
Other Data (Year-to-date):
Net interest margin (tax equivalent)		5.66	%		5.88	%
Efficiency ratio*		59.72	%		58.07	%
Return on average assets		1.33	%		1.41	%
Return on average equity		13.17	%		13.50	%
*excludes intangible asset amortization expense


Northrim News			Exhibit 99.1
Headquarters: 3111 C Street, Anchorage, AK 99503
For Immediate Release Date:	January 18, 2006
Contact:	Joe Schierhorn, SVP& CFO
Phone:		(907) 261-3308