NORTHRIM BANCORP INC 10-Q

ITEM 1A. RISK FACTORS The disclosure below supplements the risk factors previously disclosed under Part I. Item 1A in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. Changes in income tax laws and interpretations, or in accounting standards, could materially affect our financial condition or results of operations. On March 31, 2021, President Biden unveiled his infrastructure plan, which includes a proposal to increase the federal corporate income tax rate from 21% to 28% as part of a package of tax reforms to help fund the spending proposals in the plan. The Biden plan is in the legislative process, which is expected to proceed this year due to the Democratic Party's majority in both houses of Congress. If adopted as proposed, the increase of the corporate income tax rate would adversely affect our results of operations in future periods. In addition, further changes in income tax laws could be enacted, or interpretations of existing income tax laws could change, causing an adverse effect on our financial condition or results of operations. Similarly, our accounting policies and methods are fundamental to how we report our financial condition and results of operations. Some of these policies require the use of estimates and assumptions that may affect the value of our assets, liabilities, and financial results. Periodically, new accounting standards are issued or existing standards are revised, changing the methods for preparing our financial statements. These changes are not within our control and may significantly impact our financial condition and results of operations. ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS (a)-(b) Not applicable (c) There were no stock repurchases by the Company during the three-month period ending June 30, 2021. ITEM 3. DEFAULTS UPON SENIOR SECURITIES None. ITEM 4. MINE SAFETY DISCLOSURES Not applicable. 66