What changed in this filing

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Item 1. Financial Statements

2023-11-03 compared with 2023-08-04 · 228 added, 184 removed, 907 unchanged (31% of the section changed)

3 unchanged sentences

Consolidated Balance Sheets

September 30,

2023 December 31,

33 unchanged sentences

Preferred stock, $ 1 par value, 2,500,000 shares authorized, none issued or outstanding

Common stock, $ 1 par value, 10,000,000 shares authorized, 5,610,841 and 5,700,728 issued and outstanding at June 30, 2023 and December 31, 2022, respectively

Common stock, $ 1 par value, 10,000,000 shares authorized, 5,548,436 and 5,700,728 issued and outstanding at September 30, 2023 and December 31, 2022, respectively

Additional paid-in capital 12,005 17,784

6 unchanged sentences

Consolidated Statements of Income

Three Months Ended Six Months Ended

June 30, June 30,

Three Months Ended Nine Months Ended

September 30, September 30,

(In Thousands, Except Per Share Data) 2023 2022 2023 2022

13 unchanged sentences

Net Interest Income 26,350 26,311 76,524 67,827

Provision for credit losses 1,407 463 1,767 313

Net Interest Income After Provision for Credit Losses 23,735 21,749 48,407 41,203

Provision (benefit) for credit losses 1,190 ( 353 ) 2,957 ( 40 )

Net Interest Income After Provision (Benefit) for Credit Losses 25,160 26,664 73,567 67,867

Other Operating Income

3 unchanged sentences

Service charges on deposit accounts 550 432 1,512 1,208

Unrealized gain (loss) on marketable equity securities

12 33 ( 445 ) ( 1,199 )

Keyman life insurance proceeds — — — 2,002

Unrealized loss on marketable equity securities ( 234 ) ( 810 ) ( 457 ) ( 1,232 )

Other income 833 920 2,406 2,423

5 unchanged sentences

Professional and outside services 803 894 2,326 2,324

Marketing expense 933 814 1,497 1,239

Insurance expense 640 545 1,844 1,627

Marketing expense 499 524 1,996 1,763

Intangible asset amortization expense 4 7 11 19

7 unchanged sentences

Earnings Per Share, Diluted $ 1.48 $ 1.76 $ 3.30 $ 3.79

Weighted Average Shares Outstanding, Basic 5,632,174 5,750,873 5,661,803 5,844,455

Weighted Average Shares Outstanding, Diluted 5,677,292 5,805,870 5,719,453 5,902,287

Weighted Average Common Shares Outstanding, Basic

5,569,238 5,681,089 5,630,948 5,790,000

Weighted Average Common Shares Outstanding, Diluted

5,624,906 5,740,494 5,688,687 5,848,625

See notes to consolidated financial statements

NORTHRIM BANCORP, INC.

Consolidated Statements of Comprehensive Income

Three Months Ended June 30, Six Months Ended June 30,

Consolidated Statements of Comprehensive Income (Loss)

Three Months Ended September 30, Nine Months Ended September 30,

(In Thousands) 2023 2022 2023 2022

4 unchanged sentences

Derivatives and hedging activities:

Unrealized holding (losses) gains arising during the period 281 827 ( 18 ) 1,754

Unrealized holding gains arising during the period

639 684 621 2,438

Income tax benefit related to unrealized (gains) and losses ( 557 ) 4,786 ( 1,606 ) 11,115

31 unchanged sentences

Exercise of stock options and vesting of restricted stock units, net 20 20 ( 297 ) — — ( 277 )

Other comprehensive loss, net of tax — — — — 2,307 2,307

Other comprehensive gain, net of tax

— — — — 2,307 2,307

Net income — — — 8,595 — 8,595

11 unchanged sentences

Repurchase of common stock ( 28 ) ( 28 ) ( 1,299 ) — — ( 1,327 )

Other comprehensive loss, net of tax — — — — 5,597 5,597

Other comprehensive gain, net of tax

— — — — 5,597 5,597

Net income — — — 4,830 — 4,830

3 unchanged sentences

Stock-based compensation expense — — 225 — — 225

Exercise of stock options and vesting of restricted stock units, net — — — — — —

Repurchase of common stock ( 62 ) ( 62 ) ( 2,439 ) — — ( 2,501 )

2 unchanged sentences

Balance as of June 30, 2023 5,611 $ 5,611 $ 14,411 $ 227,756 ($ 26,442 ) $ 221,336

Cash dividend on common stock ($ 0.60 per share)

— — — ( 3,384 ) — ( 3,384 )

Stock-based compensation expense — — 254 — — 254

Exercise of stock options and vesting of restricted stock units, net — — ( 12 ) — — ( 12 )

Repurchase of common stock ( 63 ) ( 63 ) ( 2,648 ) — — ( 2,711 )

Other comprehensive gain, net of tax

— — — — 1,402 1,402

Net income — — — 8,374 — 8,374

Balance as of September 30, 2023 5,548 $ 5,548 $ 12,005 $ 232,746 ($ 25,040 ) $ 225,259

See notes to consolidated financial statements

1 unchanged sentence

Consolidated Statements of Cash Flows

Six Months Ended June 30,

Nine Months Ended September 30,

(In Thousands) 2023 2022

9 unchanged sentences

Deferred loan fees and amortization, net of costs ( 324 ) ( 3,570 )

Provision for credit losses 1,767 313

Provision (benefit) for credit losses

Additions to home mortgage servicing rights carried at fair value ( 2,440 ) ( 3,378 )

4 unchanged sentences

Origination of loans held for sale ( 296,412 ) ( 503,384 )

Gain on sale of other real estate owned ( 929 ) —

Impairment on other real estate owned 123 —

Proceeds from keyman life insurance — ( 2,002 )

2 unchanged sentences

Decrease in other assets 1,903 5,123

(Decrease) in other liabilities ( 4,668 ) ( 6,010 )

Increase (Decrease) in other liabilities 1,127 ( 5,123 )

Net Cash (Used) Provided by Operating Activities ( 11,111 ) 40,841

7 unchanged sentences

Proceeds from redemption of FHLB stock 2,923 15

(Increase) in purchased receivables, net ( 1,872 ) ( 8,290 )

(Increase) decrease in purchased receivables, net ( 14,584 ) 2,202

(Increase) decrease in loans, net ( 218,121 ) 11,230

Proceeds from sale of other real estate owned 929 —

Proceeds from keyman life insurance — 2,002

3 unchanged sentences

Financing Activities:

(Decrease) in deposits ( 84,900 ) ( 86,241 )

Increase in deposits 40,719 17,704

Increase (decrease) in borrowings 49,686 ( 309 )

1 unchanged sentence

Cash dividends paid ( 10,154 ) ( 7,618 )

Net Cash Used by Financing Activities ( 44,750 ) ( 105,393 )

Net Cash Provided (Used) by Financing Activities 73,712 ( 4,380 )

Net Change in Cash and Cash Equivalents ( 148,122 ) ( 238,906 )

4 unchanged sentences

Interest paid $ 18,340 $ 2,678

Noncash commitments to invest in Low Income Housing Tax Credit Partnerships $ 14,273 $ —

Transfer of loans to other real estate owned $ 273 $ —

13 unchanged sentences

The Company has evaluated subsequent events and transactions for potential recognition or disclosure.

Operating results for the interim period ended June 30, 2023 are not necessarily indicative of the results anticipated for the year ending December 31, 2023.

Operating results for the interim period ended September 30, 2023 are not necessarily indicative of the results anticipated for the year ending December 31, 2023.

These consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2022.

25 unchanged sentences

However, the conditions in substance remain consistent with current GAAP.

The amendments in this ASU 2023-02 also eliminate certain LIHTC-specific guidance to align the accounting more closely for LIHTCs with the accounting for other equity investments in tax credit structures and require that the delayed equity contribution guidance in paragraph ASC 323-740-25-3 apply only to tax equity investments accounted for using the proportional amortization method.

The amendments in this ASU 2023-02 also eliminate certain LIHTC-specific guidance to align the accounting more closely for LIHTCs with the accounting for other equity investments in tax credit structures and require that the delayed equity contribution guidance in paragraph ASC 323-740-25-3 applies only to tax equity investments accounted for using the proportional amortization method.

ASU 2023-02 is effective for the Company for fiscal years beginning after December 15, 2023 and must be applied on either a modified retrospective or a retrospective basis.

3 unchanged sentences

Marketable Equity Securities

The Company held marketable equity securities with fair values of $ 10.6 million and $ 10.7 million at June 30, 2023 and December 31, 2022, respectively.

The Company held marketable equity securities with fair values of $ 10.6 million and $ 10.7 million at September 30, 2023 and December 31, 2022, respectively.

The gross realized and unrealized gains (losses) recognized on marketable equity securities in other operating income in the Company's Consolidated Statements of Income were as follows:

Three Months Ended June 30, Six Months Ended June 30,

Three Months Ended September 30, Nine Months Ended September 30,

(In Thousands) 2023 2022 2023 2022

6 unchanged sentences

(In Thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Allowance for Credit Losses Fair Value

June 30, 2023

September 30, 2023

Securities available for sale

5 unchanged sentences

(In Thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value

June 30, 2023

September 30, 2023

Securities held to maturity

16 unchanged sentences

Total securities held to maturity, net of ACL $ 36,750 $ — ($ 4,111 ) $ 32,639

Gross unrealized losses on available for sale securities and the fair value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at June 30, 2023 and December 31, 2022 were as follows:

Gross unrealized losses on available for sale securities and the fair value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at September 30, 2023 and December 31, 2022 were as follows:

Less Than 12 Months More Than 12 Months Total

(In Thousands) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses

June 30, 2023

September 30, 2023

Securities available for sale

13 unchanged sentences

Consideration is given to the extent to which the fair value is less than cost, the financial condition and near-term prospects of the issuer, and the intent and ability of the Company to retain its investment in the security for a period of time sufficient to allow for any anticipated recovery in fair value.

At June 30, 2023, the Company had 83 available for sale securities in an unrealized loss position without an ACL.

At June 30, 2023, the Company had five held to maturity securities in an unrealized loss position without an ACL.

At September 30, 2023, the Company had 82 available for sale securities in an unrealized loss position without an ACL.

At September 30, 2023, the Company had five held to maturity securities in an unrealized loss position without an ACL.

Management does not have the intent to sell any of these securities and believes that it is more likely than not that the Company will not have to sell any such securities before a recovery of cost.

The fair value is expected to recover as the securities approach their

maturity date or repricing date or if market yields for such investments decline.

Accordingly, as of June 30, 2023, management believes that the unrealized losses detailed in the previous table are due to noncredit-related factors, primarily changes in interest rates, and therefore no losses have been recognized in the Company's Consolidated Statements of Income.

At June 30, 2023 and December 31, 2022, carrying amounts of $ 161.7 million and $ 59.3 million in securities were pledged for deposits and borrowings, respectively.

The amortized cost and estimated fair values of debt securities at June 30, 2023, are distributed by contractual maturity as shown below.

The fair value is expected to recover as the securities

approach their maturity date or repricing date or if market yields for such investments decline.

Accordingly, as of September 30, 2023, management believes that the unrealized losses detailed in the previous table are due to noncredit-related factors, primarily changes in interest rates, and therefore no losses have been recognized in the Company's Consolidated Statements of Income.

At September 30, 2023 and December 31, 2022, carrying amounts of $ 168.4 million and $ 59.3 million in securities were pledged for deposits and borrowings, respectively.

The amortized cost and estimated fair values of debt securities at September 30, 2023, are distributed by contractual maturity as shown below.

Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.

16 unchanged sentences

Total $ 820 $ 809

There were no proceeds from sales of investment securities for the three or six-month periods ending June 30, 2023 and 2022.

A summary of interest income for the three and six-month periods ending June 30, 2023 and 2022, on available for sale investment securities are as follows:

Three Months Ended June 30, Six Months Ended June 30,

There were no proceeds from sales of investment securities for the three or nine-month periods ending September 30, 2023 and 2022.

A summary of interest income for the three and nine-month periods ending September 30, 2023 and 2022, on available for sale investment securities are as follows:

Three Months Ended September 30, Nine Months Ended September 30,

(In Thousands) 2023 2022 2023 2022

7 unchanged sentences

Loans Held for Sale

Loans held for sale are comprised entirely of 1-4 family residential mortgage loans as of June 30, 2023 and December 31, 2022.

Loans held for sale are comprised entirely of 1-4 family residential mortgage loans as of September 30, 2023 and December 31, 2022.

Loans Held for Investment

The following table presents amortized cost and unpaid principal balance of loans, categorized by the segments used in the Company's Current Expected Credit Losses methodology to assess credit risk, for the periods indicated:

June 30, 2023 December 31, 2022

The following table presents amortized cost and unpaid principal balance of loans, categorized by the segments used in the Company's Current Expected Credit Losses (“CECL”) methodology to assess credit risk, for the periods indicated:

September 30, 2023 December 31, 2022

(In Thousands) Amortized Cost Unpaid Principal Difference Amortized Cost Unpaid Principal Difference

15 unchanged sentences

$ 1,703,600 $ 1,728,377 ($ 8,286 ) $ 1,487,947 $ 1,510,395 ($ 8,610 )

The difference between the amortized cost and unpaid principal balance is net deferred origination fees totaling $ 7.9 million at June 30, 2023 and $ 8.6 million at December 31, 2022.

Accrued interest on loans, which is excluded from the amortized cost of loans held for investment, totaled $ 6.7 million and $ 5.5 million at June 30, 2023 and December 31, 2022, respectively, and is included in other assets in the Consolidated Balance Sheets.

Amortized cost in the above table includes $ 3.6 million and $ 7.1 million as of June 30, 2023 and December 31, 2022, respectively, in Paycheck Protection Program loans administered by the U.S.

The difference between the amortized cost and unpaid principal balance is net deferred origination fees totaling $ 8.3 million at September 30, 2023 and $ 8.6 million at December 31, 2022.

Accrued interest on loans, which is excluded from the amortized cost of loans held for investment, totaled $ 8.0 million and $ 5.5 million at September 30, 2023 and December 31, 2022, respectively, and is included in other assets in the Consolidated Balance Sheets.

Amortized cost in the above table includes $ 3.2 million and $ 7.1 million as of September 30, 2023 and December 31, 2022, respectively, in Paycheck Protection Program loans administered by the U.S.

Small Business Administration ("SBA") within the Commercial & industrial loan segment.

Allowance for Credit Losses

The activity in the ACL related to loans held for investment for the periods indicated is as follows:

Three Months Ended June 30, Beginning Balance Credit Loss Expense (Benefit) Charge-offs Recoveries Ending Balance

The table below presents activity in the ACL related to loans held for investment for the periods indicated.

The ACL for loans held for investment increased $ 2.7 million from December 31, 2022 primarily due to higher non-government guaranteed loan balances as well as a decrease in estimated prepayment rates in the Company's discounted cash flow model given the current economic environment.

These changes were only partially offset by a decrease in the Company's forecasted future unemployment rates.

Three Months Ended September 30, Beginning Balance Credit Loss Expense (Benefit) Charge-offs Recoveries Ending Balance

(In Thousands)

27 unchanged sentences

Total $ 11,537 ($ 903 ) ($ 48 ) $ 1,396 $ 11,982

Six Months Ended June 30, Beginning Balance Credit Loss Expense (Benefit) Charge-offs Recoveries Ending Balance

Nine Months Ended September 30, Beginning Balance Credit Loss Expense (Benefit) Charge-offs Recoveries Ending Balance

(In Thousands)

28 unchanged sentences

The following table shows gross charge-offs by grade and by year of loan origination for the periods indicated:

Six Months Ended June 30,

Nine Months Ended September 30,

(In Thousands) 2023 2022 2021 2020 2019 Prior Total

Commercial & industrial loans $ — $ — $ 49 $ — $ — $ 91 $ 140

Commercial real estate:

Owner occupied properties — — — — — — —

Non-owner occupied and multifamily properties — — — — — — —

Residential real estate:

1-4 family residential properties secured by first liens — — — — — — —

1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens — — — — — — —

1-4 family residential construction loans — — — — — — —

Other construction, land development and raw land loans — — — — — — —

Obligations of states and political subdivisions in the US — — — — — — —

Agricultural production, including commercial fishing — — — — — — —

Consumer loans — 1 — — — 13 14

Other loans — — — — — — —

Total $ — $ 1 $ 49 $ — $ — $ 104 $ 154

22 unchanged sentences

An asset classified “loss” is considered uncollectible and of such little value that its continuance on the books is not warranted.

This classification does not mean that the asset has absolutely no recovery or salvage value, but rather that it is not

practical or desirable to defer writing off this basically worthless asset, even though partial recovery may be affected in the future.

This classification does not mean that the asset has absolutely no recovery or salvage value, but rather that it is not practical or desirable to defer writing off this basically worthless asset, even though partial recovery may be affected in the future.

The following tables present the Company's portfolio of risk-rated loans by grade and by year of origination.

1 unchanged sentence

Generally, current period renewals of credit are re-underwritten at the point of renewal and considered current period originations for purposes of the table below.

June 30, 2023 2023 2022 2021 2020 2019 Prior Total

September 30, 2023 2023 2022 2021 2020 2019 Prior Total

(In Thousands)

116 unchanged sentences

Due Current Total Greater Than 90 Days Past Due Still Accruing

June 30, 2023

September 30, 2023

Commercial & industrial loans $ 3,748 $ — $ 297 $ 4,045 $ 411,853 $ 415,898 $ —

28 unchanged sentences

Nonaccrual loans:

Nonaccrual loans net of government guarantees totaled $ 5.3 million and $ 6.4 million at June 30, 2023 and December 31, 2022, respectively.

Nonaccrual loans net of government guarantees totaled $ 5.0 million and $ 6.4 million at September 30, 2023 and December 31, 2022, respectively.

The following table presents loans on nonaccrual status and loans on nonaccrual status for the periods presented for which there was no related ACL.

All loans with no ACL are individually evaluated for credit losses in the Company's Current Expected Credit Losses methodology.

June 30, 2023 December 31, 2022

All loans with no ACL are individually evaluated for credit losses in the Company's CECL methodology.

September 30, 2023 December 31, 2022

(In Thousands) Nonaccrual Nonaccrual With No ACL Nonaccrual Nonaccrual With No ACL

12 unchanged sentences

Net nonaccrual loans $ 5,037 $ 4,645 $ 6,430 $ 6,368

There was no interest on nonaccrual loans reversed through interest income during three and six-month periods ending June 30, 2023.

There was no interest on nonaccrual loans reversed through interest income during the three-month period ending June 30, 2022 and $ 2,000 interest on nonaccrual loans reversed through interest income during the six-month period ending June 30, 2022.

There was no interest earned on nonaccrual loans with a principal balance during the three and six-month periods ending June 30, 2023 and June 30, 2022.

However, the Company recognized interest income of $ 205,000 and $ 873,000 in the three-month periods ending June 30, 2023 and 2022, respectively, and $ 384,000 and $ 930,000 in the six-month periods ending June 30, 2023 and 2022, respectively, related to interest collected on nonaccrual loans whose principal had been paid down to zero.

There was no interest on nonaccrual loans reversed through interest income during three and nine-month periods ending September 30, 2023.

There was no interest on nonaccrual loans reversed through interest income during the three-month period ending September 30, 2022 and $ 2,000 interest on nonaccrual loans reversed through interest income during the nine-month period ending September 30, 2022.

There was no interest earned on nonaccrual loans with a principal balance during the three and nine-month periods ending September 30, 2023 and September 30, 2022.

However, the Company recognized interest income of $ 200,000 and $ 1.2 million in the three-month periods ending September 30, 2023 and 2022, respectively, and $ 584,000 and $ 2.1 million in the nine-month periods ending September 30, 2023 and 2022, respectively, related to interest collected on nonaccrual loans whose principal had been paid down to zero.

Loan Modifications:

3 unchanged sentences

The Company may provide multiple types of concessions on one loan.

As noted in Note 1, the Company adopted ASU 2022-02 effective January 1, 2023.

As discussed in Note 1, the Company adopted ASU 2022-02 effective January 1, 2023.

ASU 2022-02 eliminates the accounting guidance for loans classified as TDRs.

TDRs totaled $ 5.1 million at December 31, 2022.

The following table shows the amortized cost basis of the loans that were both experiencing financial difficulty and modified during the period indicated, by class and type of modification.

The following table shows the amortized cost basis of the loans that were both experiencing financial difficulty and modified as of the dates indicated, by class and type of modification.

The percentage of the amortized cost basis of loans that were modified to borrowers experiencing financial difficulty as compared to the amortized cost basis of each class of financing receivable is also presented below:

June 30, 2023

Term Modification Payment Modification Interest Rate Modification Principal Forgiveness Total Modifications Percentage of Class of Financing Receivable

Three Months Ended September 30, 2023

Term Modification Term and payment modifications Total Modifications Percentage of Class of Financing Receivable

(In Thousands)

Commercial real estate:

Owner occupied properties $ — $ 271 $ 271 0.08 %

Residential real estate:

1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens 119 — 119 0.43 %

1-4 family residential construction loans 109 — 109 0.34 %

Other construction, land development and raw land loans 968 577 1,545 1.29 %

Total $ 1,196 $ 848 $ 2,044 0.12 %

Nine Months Ended September 30, 2023

Term Modification Payment Modification Term and payment modifications

Total Modifications Percentage of Class of Financing Receivable

(In Thousands)

Commercial & industrial loans $ 1,511 $ 1,985 $ — $ 3,496 0.84 %

1 unchanged sentence

Owner occupied properties — — 271 271 0.08 %

Non-owner occupied and multifamily properties — — — — — — %

Residential real estate:

1-4 family residential properties secured by first liens — — — — — — %

1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens 119 — — 119 0.43 %

1 unchanged sentence

Other construction, land development and raw land loans 968 — 577 1,545 1.29 %

Obligations of states and political subdivisions in the US — — — — — — %

Agricultural production, including commercial fishing — — — — — — %

Consumer loans — — — — — — %

Other loans — — — — — — %

Total $ 2,707 $ 1,985 $ 848 $ 5,540 0.32 %

The Company has no outstanding commitments to the borrowers included in the previous table.

The Company monitors the performance of loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts.

As of June 30, 2023, no loan modifications were past due.

The following table presents the financial effect of the loan modifications presented above to borrowers experiencing financial difficulty for the three-months ended June 30, 2023:

June 30, 2023

The following table presents the financial effect of the loan modifications presented above to borrowers experiencing financial difficulty as of the dates indicated:

Three Months Ended September 30, 2023

Principal Forgiveness Weighted-Average Interest Rate Reduction Weighted-Average Term Extension (months)

(In Thousands)

Commercial real estate:

Owner occupied properties — — % 5

Residential real estate:

1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens — — % 5

1-4 family residential construction loans — — % 5

Other construction, land development and raw land loans — — % 5

Nine Months Ended September 30, 2023

Principal Forgiveness Weighted-Average Interest Rate Reduction Weighted-Average Term Extension (months)

(In Thousands)

Commercial & industrial loans $ — — % 20

1 unchanged sentence

Owner occupied properties — — % 5

Non-owner occupied and multifamily properties — — % 0

Residential real estate:

1-4 family residential properties secured by first liens — — % 0

1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens — — % 5

1 unchanged sentence

Other construction, land development and raw land loans — — % 5

Obligations of states and political subdivisions in the US — — % 0

Agricultural production, including commercial fishing — — % 0

Consumer loans — — % 0

Other loans — — % 0

The Company monitors the performance of loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts.

The following table presents the payment performance of such loans as of the dates indicated:

September 30, 2023

30-59 Days Past Due 60-89 Days Past Due Greater Than 89 Days Past Due Total Past Due

(In Thousands)

Commercial real estate:

Owner occupied properties $ — $ — $ 271 $ 271

Residential real estate:

1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens — — 119 119

1-4 family residential construction loans — — 109 109

Other construction, land development and raw land loans — — 1,545 1,545

Total $ — $ — $ 2,044 $ 2,044

There were no loans that had a payment default during the three-months ended June 30, 2023 which were modified in the twelve months prior to that default to borrowers experiencing financial difficulty.

The following table presents the amortized cost basis of loans that had a payment default during the three-months ended September 30, 2023 and were modified in the twelve months prior to that default to borrowers experiencing financial difficulty:

September 30, 2023

Term modification Term and payment modification

(In Thousands)

Commercial real estate:

Owner occupied properties $ — $ 271

Residential real estate:

1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens 119 —

1-4 family residential construction loans 109 —

Other construction, land development and raw land loans 968 577

Total $ 1,196 $ 848

Upon the Company's determination that a modified loan (or a portion of a loan) has subsequently been deemed uncollectible, the loan (or a portion of the loan) is written off.

3 unchanged sentences

The Company has elected to adopt these provisions of the CARES Act.

As of June 30, 2023, the Company has no loan modifications related to COVID-19, which are not classified as TDRs.

At December 31, 2022, the Company had made the following types of loan modifications related to COVID-19, which are not classified as TDRs principal balance outstanding of:

As of September 30, 2023, the Company has no loan modifications related to COVID-19, which are not classified as TDRs.

At December 31, 2022, the Company had made the following types of loan modifications related to COVID-19 with a principal balance outstanding of:

Loan Modifications due to COVID-19 as of December 31, 2022

4 unchanged sentences

Purchased receivables are carried at their principal amount outstanding, net of an ACL, and have a maturity of less than one year .

There were no purchased receivables past due at June 30, 2023 or December 31, 2022, and there were no restructured purchased receivables at June 30, 2023 or December 31, 2022.

There were no purchased receivables past due at September 30, 2023 or December 31, 2022, and there were no restructured purchased receivables at September 30, 2023 or December 31, 2022.

Income on purchased receivables is accrued and recognized on the principal amount outstanding using an effective interest method except when management believes doubt exists as to the collectability of the income or principal.

There were no nonperforming purchased receivables as of June 30, 2023 or December 31, 2022.

There was no activity and no balance in the ACL for purchased receivables as of June 30, 2023 or December 31, 2022.

There were no nonperforming purchased receivables as of September 30, 2023 or December 31, 2022.

There was no activity and no balance in the ACL for purchased receivables as of September 30, 2023 or December 31, 2022.

The following table summarizes the components of net purchased receivables for the dates indicated:

(In Thousands) June 30, 2023 December 31, 2022

(In Thousands) September 30, 2023 December 31, 2022

Purchased receivables $ 34,578 $ 19,994

3 unchanged sentences

Mortgage servicing rights

The following table details the activity in the Company's mortgage servicing rights ("MSR") for the six-month periods ended June 30, 2023 and 2022:

Three Months Ended June 30, Six Months Ended June 30,

The following table details the activity in the Company's mortgage servicing rights ("MSR") for the three and nine-month periods ended September 30, 2023 and 2022:

Three Months Ended September 30, Nine Months Ended September 30,

(In Thousands) 2023 2022 2023 2022

8 unchanged sentences

(2) Represents changes due to collection/realization of expected cash flows over time.

The following table details information related to our serviced mortgage loan portfolio as of June 30, 2023 and December 31, 2022:

(In Thousands) June 30, 2023 December 31, 2022

The following table details information related to our serviced mortgage loan portfolio as of September 30, 2023 and December 31, 2022:

(In Thousands) September 30, 2023 December 31, 2022

Balance of mortgage loans serviced for others $ 982,098 $ 898,840

MSR as a percentage of serviced loans 1.98 % 2.07 %

The Company recognized servicing fees of $ 906,000 and $ 804,000 during the three-month periods ending June 30, 2023 and 2022, respectively, and $ 1,811,000 and $ 1,587,000 during the six-month periods ending June 30, 2023 and 2022, respectively, which includes contractually specified servicing fees and ancillary fees as a component of other noninterest income in the Company's Consolidated Statements of Income.

The following table outlines the weighted average key assumptions used in measuring the fair value of MSR as of June 30, 2023 and December 31, 2022:

June 30, 2023 December 31, 2022

Constant prepayment rate 7.70 % 6.64 %

Discount rate 10.97 % 11.25 %

Key economic assumptions and the sensitivity of the current fair value for MSR to immediate adverse changes in those assumptions at June 30, 2023 and December 31, 2022 were as follows:

(In Thousands) June 30, 2023 December 31, 2022

Aggregate portfolio principal balance $ 921,616 $ 898,840

Weighted average rate of note

June 30, 2023 Base 1.0% Adverse Rate Change 2.0% Adverse Rate Change

Constant prepayment rate 7.70 % 8.38 % 10.82 %

Discount rate 10.97 % 9.97 % 8.97 %

Fair value MSR $ 18,248 $ 17,490 $ 14,387

Percentage of MSR 1.98 % 1.90 % 1.56 %

December 31, 2022

3.82 % 3.47 %

MSR as a percentage of serviced loans 1.97 % 2.07 %

The Company recognized servicing fees of $ 937,000 and $ 858,000 during the three-month periods ending September 30, 2023 and 2022, respectively, and $ 2.7 million and $ 2.4 million during the nine-month periods ending September 30, 2023 and 2022, respectively, which includes contractually specified servicing fees and ancillary fees as a component of other noninterest income in the Company's Consolidated Statements of Income.

The following table outlines the weighted average key assumptions used in measuring the fair value of MSRs and the sensitivity of the current fair value of MSRs to immediate adverse changes in those assumptions as of the dates indicated.

See Note 8 for additional information on key assumptions for MSRs.

(In Thousands)

September 30, 2023 December 31, 2022

Fair value of MSRs

$ 19,396 $ 18,635

Expected weighted-average life (in years)

Key assumptions:

Constant prepayment rate 1

7.88 % 6.64 %

Impact on fair value from 10% adverse change

($ 536 ) ($ 518 )

Impact on fair value from 25% adverse change

($ 984 ) ($ 1,233 )

Discount rate

Fair value MSR $ 18,635 $ 14,763 $ 11,796

Percentage of MSR 2.07 % 1.64 % 1.31 %

The above tables show the sensitivity to market rate changes for the par rate coupon for a conventional one-to-four family Alaska Housing Finance Corporation/FNMA/FHLMC serviced home loan.

The above tables reference a 100 basis point and 200 basis point decrease in discount rates.

These sensitivities are hypothetical and should be used with caution as the tables above demonstrate the Company’s methodology for estimating the fair value of MSR is highly sensitive to changes in key assumptions.

For example, actual prepayment experience may differ and any difference may have a material effect on MSR fair value.

Changes in fair value resulting from changes in assumptions generally cannot be extrapolated because the relationship of the change in the assumption to the change in fair value may not be linear.

Also, in these tables, the effects of a variation in a particular assumption on the fair value of the MSR is calculated without changing any other assumption;

in reality, changes in one factor may be associated with changes in another (for example, decreases in market interest rates may provide an incentive to refinance;

however, this may also indicate a slowing economy and an increase in the unemployment rate, which reduces the number of borrowers who qualify for refinancing), which may magnify or counteract the sensitivities.

Thus, any measurement of MSR fair value is limited by the conditions existing and assumptions made at a particular point in time.

Those assumptions may not be appropriate if they are applied to a different point in time.

10.97 % 11.25 %

Impact on fair value from 100 basis point increase

($ 821 ) ($ 635 )

Impact on fair value from 200 basis point increase

($ 1,579 ) ($ 1,224 )

Cost to service assumptions ($ per loan)

Impact on fair value from 10% adverse change

($ 156 ) ($ 153 )

Impact on fair value from 25% adverse change

($ 389 ) ($ 382 )

1 Prepayment speeds are influenced by mortgage interest rates as well as our estimation of drivers of borrower behavior.

These sensitivities in the preceding table are hypothetical and caution should be exercised when relying on this data.

Changes in value based on variations in assumptions generally cannot be extrapolated because the relationship of the change in the assumption to the change in the value may not be linear.

Also, the effect of a variation in a particular assumption on the value of the MSR held is calculated independently without changing any other assumptions.

In reality, changes in one factor may result in changes in others, which might magnify or counteract the sensitivities.

Commercial servicing rights

The commercial servicing rights asset ("CSR") has a carrying value of $ 2.1 million at June 30, 2023 and December 31, 2022, respectively, and is included in other assets and carried at fair value on the Company's Consolidated Balance Sheets.

Total commercial loans serviced for others were $ 286.6 million and $ 285.3 million at June 30, 2023 and December 31, 2022, respectively.

Key assumptions used in measuring the fair value of the CSR as of June 30, 2023 and December 31, 2022 include a constant prepayment rate of 10.19 % and a discount rate of 12.00 %.

The commercial servicing rights asset ("CSR") has a carrying value of $ 2.1 million at September 30, 2023 and December 31, 2022, respectively, and is included in other assets and carried at fair value on the Company's Consolidated Balance Sheets.

Total commercial loans serviced for others were $ 283.7 million and $ 285.3 million at September 30, 2023 and December 31, 2022, respectively.

Key assumptions used in measuring the fair value of the CSR as of September 30, 2023 and December 31, 2022 include a constant prepayment rate of 10.19 % and a discount rate of 12.00 %.

The Company's lease commitments consist primarily of agreements to lease land and office facilities that it occupies to operate several of its retail branch locations that are classified as operating leases and are recognized on the balance sheet as right-of-use (“ROU”) assets and lease liabilities.

As of June 30, 2023, the Company has operating lease ROU assets of $ 10.1 million and operating lease liabilities of $ 10.1 million.

As of September 30, 2023, the Company has operating lease ROU assets of $ 9.7 million and operating lease liabilities of $ 9.7 million.

As of December 31, 2022, the Company had operating lease ROU assets of $ 9.9 million and operating lease liabilities of $ 9.9 million.

The Company did not have any agreements that are classified as finance leases as of June 30, 2023 or December 31, 2022.

The following table presents additional information about the Company's operating leases:

Three Months Ended June 30, Six Months Ended June 30,

The Company did not have any agreements that are classified as finance leases as of September 30, 2023 or December 31, 2022.

The following table presents additional information about the Company's operating leases for the periods indicated:

Three Months Ended September 30, Nine Months Ended September 30,

(In Thousands) 2023 2022 2023 2022

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(In Thousands) Operating Leases

2023 (Six months) $ 1,321

2023 (Three months) $ 662

Thereafter 4,418

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Similarly, the Company could be required to settle its obligations under the agreement if specific regulatory events occur, such as if the Company were issued a prompt corrective action directive or a cease and desist order, or if certain regulatory ratios fall below specified levels.

The Company pledged $ 553,000 as of both June 30, 2023 and December 31, 2022 in available for sale securities to collateralize fair value shortfalls on interest rate swap agreements.

The Company had interest rate swaps related to commercial loans with an aggregate notional amount of $ 221.6 million and $ 226.2 million at June 30, 2023 and December 31, 2022, respectively.

At June 30, 2023, the notional amount of interest rate swaps is made up of 20 variable to fixed rate swaps to commercial loan customers totaling $ 110.8 million, and 20 fixed to variable rate swaps with a counterparty totaling $ 110.8 million.

Changes in fair value from these 20 interest rate swaps offset each other in the first six months of 2023.

The Company recognized $ 61,000 and $ 87,000 in fee income related to interest rate swaps in the three-month periods ending June 30, 2023 and 2022, respectively, and $ 61,000 and $ 90,000 in fee income related to interest rate swaps in the six-month periods ending June 30, 2023 and 2022, respectively.

The Company pledged $ 552,000 as of September 30, 2023 and $ 553,000 as of December 31, 2022, in available for sale securities to collateralize fair value shortfalls on interest rate swap agreements.

The Company had interest rate swaps related to commercial loans with an aggregate notional amount of $ 219.8 million and $ 226.2 million at September 30, 2023 and December 31, 2022, respectively.

At September 30, 2023, the notional amount of interest rate swaps is made up of 20 variable to fixed rate swaps to commercial loan customers totaling $ 109.9 million, and 20 fixed to variable rate swaps with a counterparty totaling $ 109.9 million.

Changes in fair value from these 20 interest rate swaps offset each other in the first nine months of 2023.

The Company recognized no fee income related to interest rate swaps in the three-month periods ending September 30, 2023 and 2022, respectively, and $ 61,000 and $ 90,000 in fee income related to interest rate swaps in the nine-month periods ending September 30, 2023 and 2022, respectively.

Interest rate swap income is recorded in other operating income on the Consolidated Statements of Income.

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The interest rate swap effectively fixes the Company's interest payments on the $ 10.0 million of junior subordinated debentures held under Northrim Statutory Trust 2 at 3.72 % through its maturity date.

As of June 30, 2023, the floating rate that the dealer pays is equal to the three month LIBOR plus 1.37 % which reprices quarterly on the payment date.

This rate was 6.92 % as of June 30, 2023.

Upon the next reprice date, which is September 15, 2023, the floating rate will be based on the three month Secured Overnight Financing Rate, also known as SOFR, as LIBOR rates ceased to be published effective July 1, 2023.

The Company pledged $ 130,000 in cash to collateralize initial margin and fair value exposure of our counterparty on this interest rate swap as of June 30, 2023 and $ 130,000 as of December 31, 2022.

As of September 30, 2023, the floating rate that the dealer pays is equal to the three month Secured Overnight Financing Rate, also known as SOFR, plus 1.63 % which reprices quarterly on the payment date.

This rate was 7.04 % as of September 30, 2023.

The Company pledged $ 130,000 in cash to collateralize initial margin and fair value exposure of our counterparty on this interest rate swap as of September 30, 2023 and $ 130,000 as of December 31, 2022.

Changes in the fair value of this interest rate swap are reported in other comprehensive income on the Consolidated Statements of Income.

The unrealized gain on this interest rate swap was $ 1.4 million as of June 30, 2023 and the unrealized loss was $ 1.5 million as of December 31, 2022.

The unrealized gain, net of tax on this interest rate swap was $ 1.5 million as of September 30, 2023 and the unrealized gain, net of tax was $ 1.0 million as of December 31, 2022.

Derivatives related to home mortgage banking activities

4 unchanged sentences

Market risk with respect to commitments to originate loans arises from changes in the value of contractual positions due to changes in interest rates.

RML had commitments to originate mortgage loans held for sale totaling $ 71.1 million and $ 29.1 million at June 30, 2023 and December 31, 2022, respectively.

RML had commitments to originate mortgage loans held for sale totaling $ 50.1 million and $ 29.1 million at September 30, 2023 and December 31, 2022, respectively.

Changes in the value of RML's interest rate derivatives are recorded in mortgage banking income on the Consolidated Statements of Income.

None of these derivatives are designated as hedging instruments.

The following table presents the fair value of derivatives not designated as hedging instruments at June 30, 2023 and December 31, 2022:

The following table presents the fair value of derivatives not designated as hedging instruments at September 30, 2023 and December 31, 2022:

(In Thousands) Asset Derivatives

June 30, 2023 December 31, 2022

September 30, 2023 December 31, 2022

Balance Sheet Location Fair Value Fair Value

4 unchanged sentences

(In Thousands) Liability Derivatives

June 30, 2023 December 31, 2022

September 30, 2023 December 31, 2022

Balance Sheet Location Fair Value Fair Value

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The following table presents the net gains (losses) of derivatives not designated as hedging instruments for periods indicated below:

Three Months Ended June 30, Six Months Ended June 30,

Three Months Ended September 30, Nine Months Ended September 30,

(In Thousands) Income Statement Location 2023 2022 2023 2022

5 unchanged sentences

We do not offset such financial instruments for financial reporting purposes.

The following table summarizes the derivatives that have a right of offset as of June 30, 2023 and December 31, 2022:

June 30, 2023 Gross amounts not offset in the Statement of Financial Position

The following table summarizes the derivatives that have a right of offset as of September 30, 2023 and December 31, 2022:

September 30, 2023 Gross amounts not offset in the Statement of Financial Position

(In Thousands) Gross amounts of recognized assets and liabilities Gross amounts offset in the Statement of Financial Position Net amounts of assets and liabilities presented in the Statement of Financial Position Financial Instruments Collateral Posted Net Amount

26 unchanged sentences

Interest rate contracts are valued in a model, which uses as its basis a discounted cash flow technique incorporating credit valuation adjustments to reflect nonperformance risk in the measurement of fair value.

Although the Company has determined that the majority of inputs used to value its interest rate derivatives fall within Level 2 of the fair value hierarchy, the credit valuation

adjustments associated with its derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by itself and its counterparties.

However, as of June 30, 2023, the Company has assessed the significance of the impact of these adjustments on the overall valuation of its interest rate positions and has determined that they are not significant to the overall valuation of its interest rate derivatives.

Although the Company has determined that the

majority of inputs used to value its interest rate derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with its derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by itself and its counterparties.

However, as of September 30, 2023, the Company has assessed the significance of the impact of these adjustments on the overall valuation of its interest rate positions and has determined that they are not significant to the overall valuation of its interest rate derivatives.

As a result, the Company has classified its interest rate derivative valuations in Level 2 of the fair value hierarchy.

17 unchanged sentences

Estimated fair values as of the periods indicated are as follows:

June 30, 2023 December 31, 2022

September 30, 2023 December 31, 2022

(In Thousands) Carrying Amount Fair Value Carrying Amount Fair Value

27 unchanged sentences

(In Thousands) Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3)

June 30, 2023

September 30, 2023

Available for sale securities

31 unchanged sentences

Total other liabilities $ 12,728 $ — $ 12,728 $ —

The following tables provide a reconciliation of the assets and liabilities measured at fair value using significant unobservable inputs (Level 3) on a recurring basis during the six-month periods ended June 30, 2023 and 2022:

(In Thousands) Beginning balance Change included in earnings Purchases and issuances Sales and settlements Ending balance Net change in unrealized gains (losses) relating to items held at end of period

Three Months Ended June 30, 2023

Three Months Ended September 30, 2023

Interest rate lock commitments $ 851 ($ 267 ) $ 2,021 ($ 2,087 ) $ 518 $ 518

2 unchanged sentences

Total $ 21,238 ($ 616 ) $ 3,497 ($ 2,087 ) $ 22,032 $ 518

Three Months Ended June 30, 2022

Three Months Ended September 30, 2022

Interest rate lock commitments $ 2,567 ($ 370 ) $ 2,976 ($ 4,819 ) $ 354 $ 354

3 unchanged sentences

Six Months Ended June 30, 2023

Nine Months Ended September 30, 2023

Interest rate lock commitments $ 440 ($ 819 ) $ 6,253 ($ 5,356 ) $ 518 $ 518

2 unchanged sentences

Total $ 21,204 ($ 2,642 ) $ 8,826 ($ 5,356 ) $ 22,032 $ 518

Six Months Ended June 30, 2022

Nine Months Ended September 30, 2022

Interest rate lock commitments $ 1,387 ($ 1,399 ) $ 11,189 ($ 10,823 ) $ 354 $ 354

2 unchanged sentences

Total $ 16,195 ($ 915 ) $ 14,673 ($ 10,823 ) $ 19,130 $ 354

There were no changes in unrealized gains and losses for the three and six-month periods ending June 30, 2023 and 2022 included in other comprehensive income for recurring Level 3 fair value measurements.

As of and for the periods ending June 30, 2023 and December 31, 2022, except for certain assets as shown in the following table, no impairment or valuation adjustment was recognized for assets recognized at fair value on a nonrecurring basis.

There were no changes in unrealized gains and losses for the three and nine-month periods ending September 30, 2023 and 2022 included in other comprehensive income for recurring Level 3 fair value measurements.

As of and for the periods ending September 30, 2023 and December 31, 2022, except for certain assets as shown in the following table, no impairment or valuation adjustment was recognized for assets recognized at fair value on a nonrecurring basis.

For loans individually measured for credit losses, the Company classifies fair value measurements using observable inputs, such as external appraisals, as Level 2 valuations in the fair value hierarchy, and unobservable inputs, such as in-house evaluations, as Level 3 valuations in the fair value hierarchy.

(In Thousands) Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3)

June 30, 2023

Loans individually measured for credit losses $ — $ — $ — $ —

September 30, 2023

Other real estate owned $ 150 $ — $ 150 $ —

Total $ 150 $ — $ 150 $ —

2 unchanged sentences

Total $ — $ — $ — $ —

The following table presents the (gains) losses resulting from nonrecurring fair value adjustments for the three and six-month periods ended June 30, 2023 and 2022:

Three Months Ended June 30, Six Months Ended June 30,

The following table presents the (gains) losses resulting from nonrecurring fair value adjustments for the three and nine-month periods ended September 30, 2023 and 2022:

Three Months Ended September 30, Nine Months Ended September 30,

(In Thousands) 2023 2022 2023 2022

Loans individually measured for credit losses ($ 27 ) ($ 89 ) $ — $ —

Other real estate owned $ 123 $ — $ 123 $ —

Total loss from nonrecurring measurements $ 123 $ — $ 123 $ —

Assets and Liabilities Measured at Fair Value Using Significant Unobservable Inputs (Level 3)

The following table provides a description of the valuation technique, unobservable input, and qualitative information about the unobservable inputs for the Company’s assets and liabilities classified as Level 3 and measured at fair value on a recurring and nonrecurring basis at June 30, 2023 and December 31, 2022:

Financial Instrument Valuation Technique Unobservable Input Weighted Average Rate Range

June 30, 2023

The following tables provide a description of the valuation technique, unobservable input, and qualitative information about the unobservable inputs for the Company’s assets and liabilities classified as Level 3 and measured at fair value on a recurring and nonrecurring basis at September 30, 2023 and December 31, 2022:

Financial Instrument Valuation Technique - Recurring Basis

Unobservable Input Weighted Average Rate Range

September 30, 2023

Interest rate lock commitment External pricing model Pull through rate 93.62 %

9 unchanged sentences

Discount rate 12.00 %

Financial Instrument Valuation Technique - Nonrecurring Basis

Unobservable Input Weighted Average Rate Range

September 30, 2023

Other real estate owned Fair value of collateral Estimated capital costs to complete improvements 45 %

Segment Information

2 unchanged sentences

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 June 30, 2023, the Community Banking segment operated 19 branches throughout Alaska.

As of September 30, 2023, the Community Banking segment operated 19 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 June 30, 2023

Three Months Ended September 30, 2023

(In Thousands) Community Banking Home Mortgage Lending Consolidated

8 unchanged sentences

Net income $ 7,802 $ 572 $ 8,374

Three Months Ended June 30, 2022

Three Months Ended September 30, 2022

(In Thousands) Community Banking Home Mortgage Lending Consolidated

2 unchanged sentences

Net interest income 25,668 643 26,311

Provision for credit losses 463 — 463

Benefit for credit losses ( 353 ) — ( 353 )

Other operating income 2,938 5,734 8,672

Other operating expense 15,977 6,309 22,286

Income (loss) before provision for income taxes 6,632 ( 314 ) 6,318

Income before provision for income taxes 12,982 68 13,050

Provision for income taxes 2,911 14 2,925

Net income (loss) $ 5,027 ($ 232 ) $ 4,795

Six Months Ended June 30, 2023

Net income $ 10,071 $ 54 $ 10,125

Nine Months Ended September 30, 2023

(In Thousands) Community Banking Home Mortgage Lending Consolidated

8 unchanged sentences

Net income (loss) $ 20,725 ($ 1,944 ) $ 18,781

Six Months Ended June 30, 2022

Nine Months Ended September 30, 2022

(In Thousands) Community Banking Home Mortgage Lending Consolidated

2 unchanged sentences

Net interest income 66,180 1,647 67,827

Provision for credit losses 313 — 313

Benefit for credit losses ( 40 ) — ( 40 )

Other operating income 8,686 18,616 27,302

3 unchanged sentences

Net income $ 21,526 $ 620 $ 22,146

June 30, 2023

September 30, 2023

(In Thousands) Community Banking Home Mortgage Lending Consolidated

6 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements