ANCHORAGE, Alaska – November 1, 2024 - Northrim BanCorp, Inc. (NASDAQ:NRIM) (“Northrim” or the “Company”) today announced the acquisition of Sallyport Commercial Finance, LLC (“Sallyport” or “SCF”) in an all cash transaction that closed on October 31, 2024 and is valued at approximately $53.9 million. Sallyport Commercial Finance, LLC is a leading provider of factoring, asset based lending and alternative working capital solutions to small and medium sized enterprises in the United States and Canada. The transaction is expected to provide earnings accretion of approximately 15% to Northrim’s 2025 operating results.

“Having worked with Nick and the Sallyport team for several years, we have been impressed by the quality of the business they have built,” said Mike Huston, President and CEO of Northrim. “We view this as an opportunity to partner with a company that has similar core values of customer service, tailored solutions, creativity and responsiveness without distracting from our growing Alaskan banking franchise. We believe our 20 year history in the factoring business through Northrim Funding Services and our low cost deposit base makes us the ideal partner to help Sallyport capture an increased share of a dynamic market segment.”

SCF was founded in 2014 and in 2023 the company surpassed $5 billion in debts factored. SCF’s mission is to provide access to capital through tailored funding solutions to fuel growth and provide entrepreneurs opportunities to create value. SCF has generated consistent profitability since inception including through periods of macroeconomic disruption by cultivating relationships with an approach based on a thorough understanding of each of their clients’ business operations, opportunities, and challenges.

SCF will operate as a wholly-owned subsidiary, and is expected to complement the products currently offered by Northrim Funding Services, a factoring division of Northrim Bank. Executive management at SCF has over 100 years of combined industry experience and will remain in their current positions.

“The time working closely with Northrim as a lender and partner to Sallyport has given me a unique insight into how the team operates at all levels. I have been very impressed with Northrim’s ability to develop solutions and deliver on commitments which have provided growth and opportunity for customers. We are excited to be joining the Northrim team and look forward to what we can learn and accomplish together,” said Nick Hart, Co-Founder and President of SCF.

Northrim has previously invested in related financial enterprises as part of its growth and diversification strategy. Current affiliates include wholly-owned Residential Mortgage, LLC, as well as a non-controlling interest in Pacific Wealth Advisors and Pacific Portfolio Consulting based in Seattle.
 
Advisors
Northrim was advised in this transaction by Janney Montgomery Scott LLC, and Accretive Legal, PLLC served as its legal counsel. Keefe, Bruyette & Woods, A Stifel Company, acted as financial adviser for Sallyport, while Latham & Watkins LLP served as its legal counsel.

Investor Conference Call
Management will host a conference call for the investment community on Monday, November 4, at 9:00 a.m. Alaska Time (1:00 p.m. ET) to discuss the SCF acquisition. Interested parties may access the call by dialing 800-231-0316.

About Northrim BanCorp
Northrim BanCorp, Inc. is the parent company of Northrim Bank, an Alaska-based community bank with 20 branches in Anchorage, Eagle River, the Matanuska Valley, the Kenai Peninsula, Juneau, Fairbanks, Nome, Kodiak, Ketchikan, and Sitka, serving 90% of Alaska’s population; and a factoring and asset-based lending division in Washington; and a wholly-owned residential mortgage company, Residential Mortgage Holding Company, LLC. The Bank differentiates itself with its detailed knowledge of Alaska’s economy and its “Customer First Service” philosophy. Pacific Wealth Advisors, LLC is an affiliated company of Northrim BanCorp.

About Sallyport Commercial Finance, LLC
Sallyport Commercial Finance, LLC is a specialty finance company focused on providing entrepreneurs with working capital solutions for small to medium sized businesses, to help drive growth and achieve business hopes and dreams. Sallyport Commercial Finance, LLC offers a full suite of factoring and asset based products including Accounts Receivable Finance, Purchase Order Finance, Equipment and Inventory Finance, Cash Flow Loans, and Real Estate Loans. Industries represented include but are not limited to Staffing, Energy, Food & Beverage, Apparel, Manufacturing, Service Industry, Transportation, Government Receivables, and IT. Through a subsidiary, Sallyport Commercial Finance, LLC has a minority interest in factoring operations in the United Kingdom.