NORTHRIM BANCORP INCNRIM

NORTHRIM BANCORP INC Debt Disclosure

10-KFiled Mar 6, 20262 min read
Borrowings
    The Company has a maximum line of credit with the FHLB approximating 45% of eligible assets, however the Company is subject to provisions under Alaska state law, which generally limit the amount of the Bank's outstanding debt to 15% of total assets or $490.6 million at December 31, 2025 and $454.1 million at December 31, 2024. FHLB advances are subject to collateral criteria that require the Company to pledge assets under a blanket pledge arrangement as collateral for its borrowings from the FHLB. Based on assets currently pledged and advances currently outstanding at December 31, 2025, the Company's available borrowing line is $433.05 million, representing approximately 13% of total assets. Additional advances of up to 45% of eligible assets, or $1.48 billion, are dependent on the availability of acceptable collateral such as marketable securities or real estate loans, although all FHLB advances are secured by a blanket pledge of the Company’s assets. The Company has outstanding FHLB advances of $12.8 million and $13.2 million as of December 31, 2025 and 2024, respectively, which were originated to match fund low income housing projects that qualify for long-term fixed interest rates. These advances have original terms of either 18 or 20 years with 30 year amortization periods and fixed interest rates ranging from 1.23% to 3.25%.
    The Federal Reserve Bank is holding $70 million of securities as collateral to secure available borrowing lines through the discount window of $69.2 million at December 31, 2025. There were no discount window advances outstanding at December 31, 2025 and 2024.  The Company paid less than $1,000 in interest in 2025 and 2024 on this agreement.
    Securities sold under agreements to repurchase were zero for both December 31, 2025 and 2024. 
    The future principal payments that are required on the Company’s borrowings as of December 31, 2025, are as follows:
(In Thousands)
2026$453 
2027462 
2028474 
2029485 
2030498 
Thereafter10,433 
Total$12,805 
    
    The Company recognized interest expense of $1.5 million, $1.0 million, and $1,783,000 on borrowings and securities sold under repurchase agreements in 2025, 2024, and 2023, respectively. The average interest rates paid on long-term debt in the same periods was 3.76%, 3.13%, and 2.93%, respectively.

Historical Timeline

Fiscal YearFiled
2025Mar 6, 2026Showing above
2024Mar 10, 2025
2023Mar 8, 2024
2022Mar 7, 2023
2021Mar 4, 2022
2020Mar 5, 2021
2019Mar 6, 2020
2018Mar 13, 2019
2017Mar 13, 2018
2016Mar 13, 2017
2015Mar 11, 2016

About Debt Disclosures

Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.

Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.

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