##### Table of Contents





SECURITIES AND EXCHANGE
    COMMISSION
 Washington, D.C.
    20549
  Form 10-K
  ANNUAL REPORT UNDER
    SECTION 13 OF THE SECURITIES EXCHANGE ACT OF 1934
 For the fiscal year ended December 31, 2007
  Commission File Number 0-33501
  Northrim BanCorp,
    Inc.
 (Exact name of registrant as
    specified in its charter)
  Alaska

92-0175752(State or other jurisdiction
    of
    incorporation or organization)

(I.R.S. Employer Identification Number)  3111 C Street
 Anchorage, Alaska 99503
 (Address of principal executive
    offices) (Zip Code)
  Registrants Telephone Number, Including Area Code:
 (907) 562-0062
  Securities
    Registered Pursuant to Section 12(b) of the Act:
 None
  Securities Registered Pursuant to Section 12(g) of the
    Act:
 Common Stock, $1.00 Par Value
 (Title of Class)
  o þ
  o þ
  þ o
  Regulation S-K Form 10-K Form 10-K.  Yes o þ
  Rule 12b-2
  Large accelerated
    filer o

Accelerated
    filer þ

Non-accelerated
    filer o
    (Do not check if a smaller reporting company)

Smaller reporting
    company o   Rule 12b-2 o þ
      Form 10-K Form 10-K




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##### 





Northrim
    BanCorp, Inc.
    Table of Contents
   
 PageNorthrim BanCorp, Inc.About the Company


1Financial SectionSelected Financial Data


5Managements Discussion and Analysis of
    Financial Condition and Results of Operations


7Report of Independent Registered Public
    Accounting Firm


31Consolidated Financial Statements


33Notes to Consolidated Financial Statements


37Annual Report on
    Form 10-K


64EXHIBIT 23EXHIBIT 34EXHIBIT 31.1EXHIBIT 31.2EXHIBIT 32.1EXHIBIT 32.2     Note
    Regarding Forward-Looking Statements
  This report includes forward-looking statements within the
    meaning of Section 21E of the Securities Exchange Act of
    1934, as amended. These forward-looking statements describe
    Northrims managements expectations about future
    events and developments such as future operating results, growth
    in loans and deposits, continued success of Northrims
    style of banking, and the strength of the local economy. All
    statements other than statements of historical fact, including
    statements regarding industry prospects and future results of
    operations or financial position, made in this report are
    forward-looking. We use words such as anticipates,
    believes, expects, intends
    and similar expressions in part to help identify forward-looking
    statements. Forward-looking statements reflect managements
    current expectations and are inherently uncertain. Our actual
    results may differ significantly from managements
    expectations, and those variations may be both material and
    adverse. 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: the general condition of, and changes in, the Alaska
    economy; factors that impact our net interest margins; and our
    ability to maintain asset quality. 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. 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 filings with the
    SEC. 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. In addition, you should note that we do not intend
    to update any of the forward-looking statements or the
    uncertainties that may adversely impact those statements.
 i




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##### Table of Contents



Northrim
    BanCorp, Inc.
    About the Company  Overview
              
    Anchorage: We have two major financial
    centers in Anchorage, four smaller branches, and one supermarket
    branch. We continue to explore for future branching
    opportunities in this market.
    Fairbanks: We opened our financial center in
    Fairbanks, Alaskas second largest city, in mid-1996. This
    branch has given us a strong foothold in Interior Alaska, and
    management believes that there is significant potential to
    increase our share of that market. In 2007, we began
    construction of a second branch in the Fairbanks market that we
    plan to open in the second quarter of 2008.
    Eagle River: We also serve Eagle River, a
    community outside of Anchorage. In January of 2002, we moved
    from a supermarket branch into a full-service branch to provide
    a higher level of service to this growing market. 1




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##### Table of Contents




    Wasilla: Wasilla is a rapidly growing market
    in the Matanuska Valley outside of Anchorage where we completed
    construction of a new financial center in December of 2002 and
    moved from our supermarket branch and loan production office
    into this new facility.  Elliott
    Cove Capital Management LLC
  start-up
    Northrim
    Funding Services
    High
    Performance Checking
      Business
    Strategies
    
    Providing Customer First Service: We believe
    that we provide a high level of customer service. Our guiding
    principle is to serve our market areas by operating with a
    Customer First Service philosophy, affording our
    customers the highest priority in all aspects of our operations.
    To achieve this objective, our management emphasizes the hiring
    and retention of competent and highly motivated employees at all
    levels of the organization. Management believes that a
    well-trained and highly motivated core of employees allows
    maximum personal contact with customers in order to understand
    and fulfill customer needs and preferences. This Customer
    First Service philosophy is combined with our emphasis on
    personalized, local decision making.
    Emphasizing Business and Professional
    Lending: We endeavor to provide commercial lending
    products and services, and to emphasize relationship banking
    with businesses and professional individuals. Management
    believes that our focus on providing financial services to
    businesses and professional individuals has and may continue to
    increase lending and core deposit volumes.
    Providing Competitive and Responsive Real Estate Lending:We estimate that we are a major land development and
    residential construction lender and an active lender in the
    commercial real estate market in our Alaskan markets. Management
    believes that our willingness to provide these services in a
    professional and responsive manner has contributed significantly
    to our growth. Because of our relatively small size, our
    experienced senior management can be more involved with serving
    customers and making credit decisions, allowing us to compete
    more favorably for lending relationships. 2




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##### Table of Contents




    Pursuing Strategic Opportunities for Additional
    Growth: Management believes that the Bank of
    America branch acquisition in 1999 significantly strengthened
    our local market position and enabled us to further capitalize
    on expansion opportunities resulting from the demand for a
    locally based banking institution providing a high level of
    service. Not only did the acquisition increase our size, number
    of branch offices and lending capacity, but it also expanded our
    consumer lending, further diversifying our loan portfolio.
    Although to a lesser degree than the Bank of America branch
    acquisition, we believe that the Alaska First acquisition also
    strengthened our position in the Anchorage market. We expect to
    continue seeking similar opportunities to further our growth
    while maintaining a high level of credit quality. We plan to
    affect our growth strategy through a combination of growth at
    existing branch locations, new branch openings, primarily in
    Anchorage, Wasilla and Fairbanks, and strategic banking and
    non-banking acquisitions.
    Developing a Sales Culture: In 2003, we
    conducted extensive sales training throughout the Company and
    developed a comprehensive approach to sales. Since then, we have
    continued with this sales training in all of our major customer
    contact areas. Our goal throughout this process is to increase
    and broaden the relationships that we have with new and existing
    customers and to continue to increase our market share within
    our existing markets.
    Improving Credit Quality: In 2007, we formed
    a Quality Assurance department to provide independent, detailed
    financial analysis of our largest, most complex loans. In
    addition, this department, along with the Chief Lending Officer
    and others in the Loan Administration department, has developed
    processes to analyze and manage various concentrations of credit
    within the overall loan portfolio. The Loan Administration
    department has also enhanced the procedures and processes for
    the analysis and reporting of problem loans along with the
    development of strategies to resolve them.  Services
    Deposit Services:
    
    An indexed money market deposit account;
    A
    Jump-Up
    certificate of deposit (CD) that allows additional
    deposits with the opportunity to increase the rate to the
    current market rate for a similar term CD;
    An indexed CD that allows additional deposits, quarterly
    withdrawals without penalty, and tailored maturity
    dates; and
    Arrangements to courier noncash deposits from our customers to
    their branch.  Lending Services:
  Other Customer Services: 24-hour drive-up, drive-up
 3




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##### Table of Contents



Directors and Executive Officers:
  Executive
    Officers/Age

Occupation*R. Marc Langland, 66

Chairman, President, & CEO of the Company and the Bank;
    Director, Alaska Air Group; Director, Usibelli Coal Mine, Inc.*Christopher N. Knudson, 54

Executive Vice President and Chief Operating Officer of the
    Company and the BankJoseph M. Schierhorn, 50

Executive Vice President, Chief Financial Officer, and
    Compliance Manager of the Company and the BankJoseph M. Beedle, 56

Executive Vice President of the Company and Chief Lending
    Officer of the BankSteven L. Hartung, 61

Executive Vice President of the Company and Quality Assurance
    Officer of the Bank     Directors/Age

OccupationLarry S. Cash, 56

President and CEO, RIM Architects (Alaska), Inc.; CEO, RIM
    Architects (Guam), LLC.Mark G. Copeland, 65

Owner and sole member of Strategic Analysis, LLC, a management
    consulting firmRonald A. Davis, 75

Former Vice President, Acordia of Alaska Insurance (full service
    insurance agency)Anthony Drabek, 60

President and CEO, Natives of Kodiak, Inc. (Alaska Native
    Corporation), Chairman and President, Koncor Forest Products
    Co.; Secretary/Director, Atikon Forest Products Co.Richard L. Lowell, 67

Former Chairman, Ribelin Lowell Alaska USA Insurance Brokers,
    Inc. (insurance brokerage firm)Irene Sparks Rowan, 66

Former Chairman and Director, Klukwan, Inc. (Alaska Native
    Corporation) and its subsidiariesJohn C. Swalling, 58

President, Swalling & Associates, P.C. (accounting
    firm)David G. Wight, 67

Former President and CEO, Alyeska Pipeline Service Company, and
    Director, Storm Cat Energy Corporation  4




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##### Table of Contents



Selected
    Financial Data  2007

2006

2005

2004

2003Unaudited(In Thousands Except Per Share Amounts)Net interest income

$49,830

$47,522

$43,908

$41,271

$39,267Provision for loan losses

5,513

2,564

1,170

1,601

3,567Other operating income

9,820

7,658

4,833

3,792

6,089Other operating expense

34,929

31,368

29,477

26,535

24,728Income before income taxes and minority interest

19,208

21,248

18,094

16,927

17,061Minority interest in subsidiaries

290

296





Pre tax income

18,918

20,952

18,094

16,927

17,061Income taxes

7,260

7,978

6,924

6,227

6,516Net income

$11,658

$12,974

$11,170

$10,700

$10,545Earnings per share:Basic

$1.82

$2.02

$1.70

$1.60

$1.60Diluted

1.80

1.99

1.64

1.55

1.53Cash dividends per share

0.57

0.45

0.40

0.36

0.31Assets

$1,014,714

$925,620

$895,580

$800,726

$738,569Loans

714,801

717,056

705,059

678,269

601,119Deposits

867,376

794,904

779,866

699,061

646,197Long-term debt

1,774

2,174

2,574

2,974

3,374Junior subordinated debentures

18,558

18,558

18,558

8,000

8,000Shareholders equity

101,391

95,418

84,474

83,358

75,285Book value per share

$16.09

$15.61

$13.86

$13.01

$11.82Tangible book value per share

$14.51

$14.48

$12.65

$11.97

$10.73Net interest margin (tax equivalent)

5.89%

5.89%

5.66%

5.88%

6.04%Efficiency ratio
    (cash)(1)

57.99%

55.97%

59.72%

58.07%

53.71%Return on assets

1.24%

1.46%

1.33%

1.41%

1.50%Return on equity

11.70%

14.45%

13.17%

13.50%

14.89%Equity/assets

10.00%

10.31%

9.44%

10.41%

10.19%Dividend payout ratio

30.54%

21.43%

22.92%

21.57%

19.04%Nonperforming loans/portfolio loans

1.59%

0.92%

0.86%

0.97%

1.72%Net charge-offs/average loans

0.86%

0.16%

0.18%

0.16%

0.33%Allowance for loan losses/portfolio loans

1.64%

1.69%

1.52%

1.59%

1.70%Nonperforming assets/assets

1.56%

0.79%

0.69%

0.82%

1.40%Number of banking offices

10

10

10

10

10Number of employees (FTE)

302

277

272

272

268   (1)
    In managing our business, we review the efficiency ratio
    exclusive of intangible asset amortiztion (see definition in
    table below), which is not defined in accounting principles
    generally accepted in the United States (GAAP). The
    efficiency ratio is calculated by dividing noninterest expense,
    exclusive of intangible asset amortization, by the sum of net
    interest income and noninterest income. Other companies may
    define or calculate this data differently. We believe this
    presentation provides investors with a more accurate picture of
    our operating efficiency. In this presentation, noninterest
    expense is adjusted for intangible asset amortization. For
    additional information see the Noninterest Expense
    section in Item 7. Managements Discussion and
    Analysis of Financial Condition and Results of Operation
    of this report. 5




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##### Table of Contents



Reconciliation
    of Selected Financial Data to GAAP Financial
    Measures(2)
  Years ended December 31,

2007

2006

2005

2004

2003Net interest
    income(1)

$49,830

$47,522

$43,908

$41,271

$39,267Noninterest income

9,820

7,658

4,833

3,792

6,089Noninterest expense

34,929

31,368

29,477

26,535

24,728Less intangible asset amortization

337

482

368

368

368Adjusted noninterest expense

$34,592

$30,886

$29,109

$26,167

$24,360Efficiency ratio

58.56%

56.85%

60.48%

58.88%

54.52%Efficiency ratio (less intangible asset amortization)

57.99%

55.97%

59.72%

58.07%

53.71%Tax rate

38%

38%

38%

37%

38%   (1)
    Amount represents net interest income before provision for loan
    losses.(2)
    These unaudited schedules provide selected financial information
    concerning the Company that should be read in conjunction with
    Item 7. Managements Discussion and Analysis of
    Financial Condition and Results of Operations of this
    report. 6




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##### Table of Contents



Managements
    Discussion and Analysis of Financial Condition and
    Results of Operation  Overview
            Results
    of Operations
  Net
    Income
    Net
    Interest Income
   7




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8




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##### Table of Contents



Years Ended December 31,

2007

2006

2005Average

Interest



Average

Interest



Average

Interestoutstanding

earned/

Yield/

outstanding

earned/

Yield/

outstanding

earned/

Yield/balance

paid(1)

rate

balance

paid(1)

rate

balance

paid(1)

rate(In Thousands)Assets:Loans(2)

$710,959

$66,463

9.35%

$712,116

$65,347

9.18%

$698,240

$55,870

8.00%Securities

98,578

4,619

4.69%

71,164

2,799

3.93%

61,125

2,202

3.60%Overnight investments

39,726

1,985

5.00%

27,665

1,375

4.97%

19,232

709

3.69%Total interest-earning assets

849,263

73,067

8.60%

810,945

69,521

8.57%

778,597

58,781

7.55%Noninterest-earning assets

92,065





77,920





63,810Total assets

$941,328





$888,865





$842,407Liabilities and Shareholders Equity:Deposits:Interest-bearing demand accounts

$85,192

$1,188

1.39%

$78,872

$830

1.05%

$65,890

$369

0.56%Money market accounts

186,722

7,378

3.95%

151,871

6,053

3.99%

139,331

3,876

2.78%Savings accounts

234,780

8,756

3.73%

254,209

10,113

3.98%

207,277

6,263

3.02%Certificates of deposit

95,961

4,080

4.25%

94,595

3,322

3.51%

138,284

3,482

2.52%Total interest-bearing deposits

602,655

21,402

3.55%

579,547

20,318

3.51%

550,782

13,990

2.54%Borrowings

30,337

1,835

6.05%

26,052

1,681

6.45%

18,792

883

4.70%Total interest-bearing liabilities

632,992

23,237

3.67%

605,599

21,999

3.63%

569,574

14,873

2.61%Demand deposits and other noninterest-bearing liabilities

208,671





193,461





188,000Total liabilities

841,663





799,060





757,574Shareholders equity

99,665





89,805





84,833Total liabilities and shareholders equity

$941,328





$888,865





$842,407Net interest income



$49,830





$47,522





$43,908Net interest
    margin(3)





5.87%





5.86%





5.64%   (1)
    
    Interest income included loan fees.(2)
    
    Nonaccrual loans are included with
    a zero effective yield.(3)
    
    The net interest margin on a tax
    equivalent basis was 5.89%, 5.89%, 5.66%, 5.88%, and 6.04%,
    respectively, for 2007, 2006, 2005, 2004, and 2003. 9




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##### Table of Contents



2007 compared to 2006

2006 compared to 2005Increase (decrease) due to

Increase (decrease) due toVolume

Rate

Total

Volume

Rate

TotalInterest Income:Loans

($106)

$1,222

$1,116

$1,129

$8,348

$9,477Securities

1,217

603

1,820

381

216

597Overnight investments

603

7

610

371

295

666Total interest income

$1,714

$1,832

$3,546

$1,881

$8,859

$10,740Interest Expense:Deposits:Interest-bearing demand accounts

$71

$287

$358

$85

$376

$461Money market accounts

1,378

(53)

1,325

375

1,802

2,177Savings accounts

(747)

(610)

(1,357)

1,605

2,245

3,850Certificates of deposit

49

709

758

(1,292)

1,133

(160)Total interest on deposits

751

333

1,084

773

5,557

6,328Borrowings

249

(95)

154

403

384

798Total interest expense

1,000

$238

$1,238

$1,176

$5,940

$7,126   Other
    Operating Income
    Years Ended December 31,

2007

2006

2005

2004

2003(In Thousands)Other Operating IncomeDeposit service charges

$3,116

$1,975

$1,800

$1,718

$1,805Purchased receivable income

2,519

1,855

993

201

35Employee benefit plan income

1,194

1,113





Electronic banking fees

914

790

632

608

563Loan service fees

516

531

374

379

416Merchant credit card transaction fees

509

531

444

414

363Equity in earnings from RML

454

649

493

438

2,785Other transaction fees

267

227

214

204

247Equity in loss from Elliott Cove

(93)

(230)

(424)

(457)

(554)Other income

314

217

298

136

74Operating sources

9,710

7,658

4,824

3,641

5,734Gain on sale of securities available for sale, net





9

151

310Gain on sale of other real estate owned

110







45Other sources

110



9

151

355Total other operating income

$9,820

$7,658

$4,833

$3,792

$6,089  10




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##### Table of Contents



start-up
 11




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##### Table of Contents



Expenses
  Provision for Loan Losses:
  Other Operating Expense:
  Years ended December 31,

2007

2006

2005

2004

2003(In Thousands)Other Operating ExpenseSalaries and other personnel expense

$20,700

$19,277

$17,656

$15,708

$14,180Occupancy, net

2,823

2,503

2,417

2,130

2,000Equipment, net

1,350

1,350

1,371

1,372

1,504Marketing

1,617

1,641

1,657

1,201

1,205Intangible asset amortization

337

482

368

368

368Other expenses

8,102

6,115

6,008

5,756

5,471Total other operating expense

$34,929

$31,368

$29,477

$26,535

$24,728   Share-Based Payment.
   12




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##### Table of Contents



Income Taxes:
  Financial
    Condition
  Assets
  Loans and Lending Activities
  General:
     13




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##### Table of Contents



Nonperforming Loans; Other Real Estate
    Owned:
  December 31,

2007

2006

2005

2004

2003(In Thousands)Nonperforming loansNonaccrual loans

$9,673

$5,176

$5,090

$5,876

$7,426Accruing loans past due 90 days or more

1,665

708

981

290

2,283Restructured loans



748



424

597Total nonperforming loans

11,338

6,632

6,071

6,590

10,306Real estate owned

4,445

717

105



Total nonperforming assets

$15,783

$7,349

$6,176

$6,590

$10,306Allowance for loan losses to portfolio loans

1.64%

1.69%

1.52%

1.59%

1.70%Allowance for loan losses to nonperforming loans

104%

183%

176%

163%

99%Nonperforming loans to portfolio loans

1.59%

0.92%

0.86%

0.97%

1.72%Nonperforming assets to total assets

1.56%

0.79%

0.69%

0.82%

1.40%   Nonaccrual, Accruing Loans 90 Days or More Past Due, and
    Restructured Loans:
      Potential Problem Loans:
  Analysis of Allowance for Loan Losses:
   14




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##### Table of Contents



December 31,

2007

2006

2005

2004

2003% of Total



% of Total



% of Total



% of Total



% of TotalBalance applicable to:

Amount

Loans(1)

Amount

Loans(1)

Amount

Loans(1)

Amount

Loans(1)

Amount

Loans(1)(Dollars in Thousands)Commercial

$6,496

40%

$8,208

40%

$6,913

41%

$5,130

39%

$5,610

37%Construction

940

19%

330

21%

246

19%

276

18%

282

17%Real estate term

1,661

34%

964

33%

1,214

35%

1,634

37%

413

40%Installment and other consumer

16

7%

6

6%

37

5%



6%

3

6%Unallocated

2,622

0%

2,617

0%

2,296

0%

3,724



3,878Total

$11,735

100%

$12,125

100%

$10,706

100%

$10,764

100%

$10,186

100%   (1)
    
    Represents percentage of this
    category of loans to total loans. 15




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##### Table of Contents



December 31,

2007

2006

2005

2004

2003(In Thousands)Balance at beginning of period


$12,125



$10,706



$10,764



$10,186



$8,476Charge-offs:Commercial loans


(4,291)



(2,545)



(1,552)



(1,387)



(2,067)Construction loans


(2,982)







(100)







Real estate loans


(599)















(127)Installment and other consumer loans


(45)



(72)



(63)



(84)



(91)Total charge-offs


(7,917)



(2,617)



(1,715)



(1,471)



(2,285)Recoveries:Commercial loans


1,723



1,086



418



200



279Construction loans


50







15



185



Real estate loans






355



15







111Installment and other consumer loans


21



31



39



63



38Total recoveries


1,794



1,472



487



448



428Charge-offs net of recoveries


(6,123)



(1,145)



(1,228)



(1,023)



(1,857)Allowance acquired with Alaska First Acquisition


220















Provision for loan losses


5,513



2,564



1,170



1,601



3,567Balance at end of period


$11,735



$12,125



$10,706



$10,764



$10,186Ratio of net charge-offs to average loans outstanding during the
    period


0.86%



0.16%



0.18%



0.16%



0.33%   Credit Authority and Loan Limits:
    Loan Policy:
  Loans Receivable:
 16




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##### Table of Contents



Loan Portfolio Composition:
  December 31,

2007

2006

2005

2004

2003Percent



Percent



Percent



Percent



PercentAmount

of total

Amount

of total

Amount

of total

Amount

of total

Amount

of total(Dollars in Thousands)Commercial loans


$284,956



39.87%



$287,281



40.06%



$287,617



40.79%



$267,737



39.47%



$220,774



36.73%Real estate loans:Construction


138,070



19.32%



153,059



21.35%



131,532



18.66%



122,873



18.12%



102,311



17.02%Real estate term


243,245



34.03%



237,599



33.14%



252,395



35.80%



252,358



37.21%



239,545



39.85%Real estate loans for sale






0.00%







0.00%







0.00%







0.00%



1,395



0.23%Installment and other consumer loans


51,274



7.17%



42,140



5.88%



36,519



5.18%



38,166



5.63%



39,796



6.62%Total


717,545



100.38%



720,079



100.42%



708,063



100.43%



681,134



100.42%



603,821



100.45%Less:Unearned purchase discount






0.00%







0.00%







0.00%



(44)



-0.01%



(44)



-0.01%Unearned loan fees net of origination costs


(2,744)



-0.38%



(3,023)



-0.42%



(3,004)



-0.43%



(2,821)



-0.42%



(2,658)



-0.44%Net loans


$714,801



100.00%



$717,056



100.00%



$705,059



100.00%



$678,269



100.00%



$601,119



100.00%     MaturityWithin



Over1 Year

1-5 Years

5 Years

Total(In Thousands)Commercial


$130,664



$111,815



$42,477



$284,956Construction


125,879



12,191







138,070Real estate term


72,281



66,667



104,297



243,245Installment and other consumer


2,057



9,021



40,196



51,274Total


$330,881



$199,694



$186,970



$717,545Fixed interest rate


$114,833



$66,895



$58,938



$240,666Floating interest rate


216,048



132,799



128,032



476,879Total


$330,881



$199,694



$186,970



$717,545   Commercial Loans:
 17




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##### Table of Contents



Construction Loans:
  Land Development:
  One-to-Four-Family Residences:
  Commercial Construction:
  Commercial Real Estate:
    Consumer Loans:
  Off-Balance Sheet Arrangements  Commitments and
    Contingent Liabilities:
  Investments
    and Investment Activities
  General:
    Investment Portfolio Composition:
  Securities Available For Sale: and/or
  Securities Held To Maturity:
 18




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##### Table of Contents



Amortized

MarketDecember 31,

Cost

Value(In Thousands)Securities Available for Sale:2007:U.S. Treasury

$4,977

$4,982Government Sponsored Entities

134,370

134,738Mortgage-backed Securities

466

465Corporate Bonds

7,813

7,824Total

$147,626

$148,0092006:U.S. Treasury

$16,860

$16,840Government Sponsored Entities

70,438

69,971Mortgage-backed Securities

183

182Total

$87,481

$86,9932005:U.S. Treasury

$15,930

$15,761Government Sponsored Entities

37,140

36,482Mortgage-backed Securities

242

240Total

$53,312

$52,483Securities Held to Maturity:2007:Municipal securities

$11,701

$11,749Total

$11,701

$11,7492006:Municipal securities

$11,776

$11,775Total

$11,776

$11,7752005:Municipal securities

$936

$957Total

$936

$957    19




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##### Table of Contents



Market Value, Maturities and Weighted Average
    Yields:
  MaturityWithin





Over1 Year

1-5 Years

5-10 Years

10 Years

Total(Dollars In Thousands)Securities Available for Sale:U.S. TreasuryBalance

$4,982


$



$



$



$4,982Weighted Average Yield

4.54%


0.00%



0.00%



0.00%



4.54%Government Sponsored EntitiesBalance

39,072


80,622



15,044







134,738Weighted Average Yield

4.53%


4.87%



5.17%



0.00%



4.81%Mortgage-Backed SecuritiesBalance

268


46







151



465Weighted Average Yield

3.25%


5.50%



0.00%



5.44%



4.18%Corporate BondsBalance




7,824











7,824Weighted Average Yield

0.00%


4.87%



0.00%



0.00%



4.87%TotalBalance

$44,322


$88,492



$15,044



$151



$148,009Weighted Average Yield

4.52%


4.87%



5.17%



5.44%



4.80%Securities Held to Maturity:Municipal SecuritiesBalance

$3,275


$8,062



$412



$



$11,749Weighted Average Yield

3.76%


3.81%



3.93%



0.00%



3.80%     Purchased
    Receivables
  General: ® ®
  ®
  Policy and Authority Limits:
  Liabilities
  Deposits
  General:
 20




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##### Table of Contents



Average Balances and Rates:
  December 31,

2007

2006

2005

2004

2003Average

Average

Average

Average

Average

Average

Average

Average

Average

Averagebalance

rate paid

balance

rate paid

balance

rate paid

balance

rate paid

balance

rate paid(Dollars in Thousands)Interest-bearing demand accounts


$85,192



1.39%



$78,872



1.05%



$65,890



0.56%



$57,373



0.39%



$52,955



0.39%Money market accounts


186,722



3.95%



151,871



3.99%



139,331



2.78%



126,567



1.21%



134,582



0.96%Savings accounts


234,780



3.73%



254,209



3.98%



207,277



3.02%



139,876



1.64%



104,158



1.13%Certificates of deposit


95,961



4.25%



94,595



3.51%



138,284



2.52%



155,134



1.72%



164,847



2.14%Total interest-bearing accounts


602,655



3.55%



579,547



3.51%



550,782



2.54%



478,950



1.40%



456,542



1.36%Noninterest-bearing demand accounts


196,313







185,958







182,535







181,731







159,858Total average deposits


$798,968







$765,505







$733,317







$660,681







$616,400   Certificates of Deposit:
  Alaska Certificates of Deposit:
  Alaska Permanent Fund:
  Borrowings
  FHLB:
  Federal Reserve Bank:
    Other Short-term Borrowing:
 21




---



##### Table of Contents



Contractual
    Obligations
    Payments Due by PeriodWithin

1-3

3-5

OverDecember 31, 2007

1 Year

Years

Years

5 Years

Total(In Thousands)Long-term debt obligations

$400


$800



$574



$18,558



$20,332Operating lease obligations

1,867


3,652



3,377



3,209



12,105Other long-term liabilities

950


2,368











3,318Total

$3,217


$6,820



$3,951



$21,767



$35,755   Payments Due by PeriodWithin

1-3

3-5

OverDecember 31, 2006

1 Year

Years

Years

5 Years

Total(In Thousands)Long-term debt obligations

$400


$800



$800



$18,732



$20,732Operating lease obligations

1,434


2,928



2,867



3,711



10,940Other long-term liabilities

1,217


3,277











4,494Total

$3,051


$7,005



$3,667



$22,443



$36,166   90-day 90-day
  Liquidity
    and Capital Resources
     22




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##### Table of Contents



DilutedDiluted EPS

EPS withoutYears Ending:

as Reported

Stock Repurchase2007

$1.80

$1.642006

$1.99

$1.832005

$1.64

$1.562004

$1.55

$1.502003

$1.53

$1.50   90-day
  90-day
       23




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##### Table of Contents



Adequately -


Well -


Actual


ActualDecember 31, 2007

Capitalized


Capitalized


Ratio BHC


Ratio BankTier 1 risk-based capital


4.00%



6.00%



12.32%



11.55%Total risk-based capital


8.00%



10.00%



13.57%



12.80%Leverage ratio


4.00%



5.00%



11.10%



10.43%    Effects
    of Inflation and Changing Prices
    Market
    for Common Stock
        First


Second


Third


FourthQuarter


Quarter


Quarter


Quarter2007High

$
28.71


$
28.73


$
28.29


$
24.20Low

$
25.26


$
24.46


$
23.37


$
18.422006High

$
20.73


$
22.76


$
26.03


$
26.36Low

$
19.71


$
20.35


$
20.99


$
24.66  24




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##### Table of Contents



Market Price of and Dividends on the Registrants Common
    Equity and Related Stockholder Matters
  Stock
    Performance Graph
    Total
    Return Performance
  
  Period EndingIndex

12/31/02

12/31/03

12/31/04

12/31/05

12/31/06

12/31/07Northrim BanCorp, Inc.

100.00

173.79

181.29

183.38

222.66

191.50Russell 3000

100.00

131.06

146.71

155.69

180.16

189.42SNL Bank $500M-$1B Index

100.00

144.19

163.41

170.41

193.81

155.31  25




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##### Table of Contents



Repurchase
    of Securities
    Maximum
    Number(1)
    (orApproximate Dollar Value)Total Number of Shares (or

of Shares (or Units) thatUnits) Purchased as Part of

May Yet Be PurchasedTotal Number of Shares (or

Average Price Paid per

Publicly Announced Plans

Under the Plans orUnits) Purchased

Share (or Unit)

or Programs

ProgramsPeriod

(a)

(b)

(c)

(d)Month #1October 1, 2007 




$







252,242October 31, 2007Month #2November 1, 2007 




$







252,242November 30, 2007Month #3December 1, 2007 

25,000


$19.20



25,000



227,242December 31, 2007Total

25,000


$19.20



25,000



227,242   (1)
    
    In September 2002, the Company
    publicly announced Board of Director authorization to, from time
    to time, repurchase up to 5%, or 306,372, shares of common stock
    in the open market. In August 2004, the Company publicly
    announced the Boards authorization to increase the stock
    in its repurchase program by an additional 304,283, or 5%, of
    total shares outstanding. As a result, the total shares
    available under the Plan at that time increased to
    385,855 shares. On June 8, 2007, the Company publicly
    announced the Boards authorization to increase the stock
    in its repurchase program by an additional 305,029, or 5%, of
    total shares outstanding, bringing the total shares available
    and authorized for repurchase under the Plan at that time to
    342,242 shares.  Equity
    Compensation Plan Information
  Number of SecuritiesNumber of Securities to be





Remaining Available forIssued Upon Exercise of


Weighted-Average Exercise


Future Issuance UnderOutstanding Options,


Price of Outstanding


Equity Compensation PlansWarrants and Rights


Options, Warrants and


(Excluding SecuritiesPlan Category

(a)


Rights(b)


Reflected in Column (a))Equity compensation plans approved by security holders


488,445


$
13.50



121,969Total


488,445


$
13.50



121,969   Recent
    Accounting Pronouncements
  Business Combinations (Revised 2007), Fair Value Measurements Noncontrolling Interests in
    Consolidated Financial Statements, an amendment of ARB
    No. 51.
  Share-Based Payment Accounting for Stock-Based
    Compensation Accounting for Stock Issued to Employees
   26




---



##### Table of Contents



GrantedStock Options:

Nov. 2007

Nov. 2006

Nov. 2005Expected option life (years)

8.3

7.4

7.5Risk free rate

4.37%

4.57%

4.45%Dividends per Share

$0.66

$0.56

$0.50Expected volatility factor

34.12%

37.44%

37.06%     Fair
    Value Disclosures  Prior to FASB 123R
    Adoption
    2005Net income (in thousands)


As reported


$11,170Less stock-based employee compensation





(173)Net income


Pro forma


$10,997Earnings per share, basic


As reported


$1.70Pro forma


$1.67Earnings per share, diluted


As reported


$1.64Pro forma


$1.62    27




---



##### Table of Contents



Transition Election Related to Accounting for the Tax
    Effects of Share-Based Payment Awards
    (FSP 123R-3),
  Quantitative
    and Qualitative Disclosure About Market Risk
    12-month
       28




---



##### Table of Contents



Estimated maturity or repricing at December 31, 2007Within 1 year

1-5 years

35 years

Total(In Thousands)Interest-Earning Assets:Money market investments

$33,039


$



$



$33,039Investment securities

73,582


70,680



19,454



163,716Loans:Commercial

237,500


43,369



916



281,785Real estate construction

128,140


5,197







133,337Real estate term

158,048


59,437



23,999



241,484Installment and other consumer

18,102


17,936



15,227



51,265Total interest-earning assets

648,411


$196,619



$59,596



$904,626Percent of total interest-earning assets

72%


22%



7%



100%Interest-Bearing Liabilities:Interest-bearing demand accounts

$96,455


$



$



$96,455Money market accounts

215,819










215,819Savings accounts

226,626










226,626Certificates of deposit

71,055


32,414



21



103,490FHLB advances








2,174



2,174Other borrowings

14,596










14,596Junior subordinated debentures

18,558










18,558Total interest-bearing liabilities

643,109


$32,414



$2,195



$677,718Percent of total interest-bearing liabilities

95%


5%



0%



100%Interest sensitivity gap

$5,302


$164,205



$57,401



$226,908Cumulative interest sensitivity gap

$5,302


$169,507



$226,908Cumulative interest sensitivity gap as a percentage of total
    assets

1%


17%



22%      29




---



##### Table of Contents



12-month
  Critical
    Accounting Estimates
      Controls
    and Procedures
  Conclusion
    Regarding the Effectiveness of Disclosure Controls and
    Procedures
    Managements
    Report on Internal Control Over Financial Reporting
  Rules 13a-15(f)
    Internal
    Control  Integrated Framework
     30




---



##### Table of Contents



Report of
    Independent Registered Public Accounting Firm     Internal Control  Integrated Framework
        Internal Control 
    Integrated Framework
    
     31




---



##### Table of Contents



Report of
    Independent Registered Public Accounting Firm
           Internal Control  Integrated
    Framework
  
     32




---



##### Table of Contents



Consolidated
    Financial Statements      2007

2006(In Thousands Except Share Amounts)AssetsCash and due from banks (Note 3)

$30,767

$25,565Money market investments (Note 4)

33,039

18,717Investment securities held to maturity (Note 5)

11,701

11,776Investment securities available for sale (Note 5)

148,009

86,993Investment in Federal Home Loan Bank stock (Note 5)

2,003

1,556Total Portfolio Investments

161,713

100,325Loans (Note 6)

714,801

717,056Allowance for loan losses (Note 7)

(11,735)

(12,125)Net Loans

703,066

704,931Purchased receivables

19,437

21,183Accrued interest receivable

5,232

4,916Premises and equipment, net (Note 8)

15,621

12,874Intangible assets (Notes 1 and 10)

9,946

6,903Other real estate owned (Note 9)

4,445

717Other assets (Notes 1 and 10)

31,448

29,489Total Assets

$1,014,714

$925,620LiabilitiesDeposits:Demand

$224,986

$206,343Interest-bearing demand

96,455

89,476Savings

55,285

48,330Alaska CDs

171,341

207,492Money market

215,819

157,345Certificates of deposit less than $100,000 (Note 11)

61,586

57,601Certificates of deposit greater than $100,000 (Note 11)

41,904

28,317Total Deposits

867,376

794,904Borrowings (Note 12)

16,770

6,502Junior subordinated debentures (Note 13)

18,558

18,558Other liabilities (Note 17)

10,595

10,209Total Liabilities

913,299

830,173Minority interest in subsidiaries

24

29Shareholders Equity (Note 18 and 19)Common stock, $1 par value, 10,000,000 shares
    authorized, 6,300,256 and 6,114,247 shares issued and
    outstanding at December 31, 2007 and 2006, respectively

6,300

6,114Additional paid-in capital

50,798

46,379Retained earnings

44,068

43,212Accumulated other comprehensive
    income- net
    unrealized gains/losses on available for sale on investment
    securities

225

(287)Total Shareholders Equity

101,391

95,418Commitments and contingencies (Notes 3, 5, 12, 17, 18, 19,
    20, 21, and 24)Total Liabilities and Shareholders Equity

$1,014,714

$925,620    33




---



##### Table of Contents



NORTHRIM
    BANCORP, INC.
    2007

2006

2005(In Thousands Except Per Share Amounts)Interest IncomeInterest and fees on loans

$66,463

$65,347

$55,870Interest on investment securities-available for sale
    (Note 5)

4,120

2,396

2,171Interest on investment securities-held to maturity (Note 5)

499

403

31Interest on money market investments

1,985

1,375

709Total Interest Income

73,067

69,521

58,781Interest ExpenseInterest expense on deposits and borrowings (Note 14)

23,237

21,999

14,873Net Interest Income

49,830

47,522

43,908Provision for loan losses (Note 7)

5,513

2,564

1,170Net Interest Income After Provision for Loan Losses

44,317

44,958

42,738Other Operating IncomeService charges on deposit accounts

3,116

1,975

1,800Purchased receivable income

2,519

1,855

993Employee benefit plan income

1,194

1,113

Equity in earnings from mortgage affiliate

454

649

493Equity in loss from Elliott Cove

(93)

(230)

(424)Other income

2,630

2,296

1,971Total Other Operating Income

9,820

7,658

4,833Other Operating ExpenseSalaries and other personnel expense

20,700

19,277

17,656Occupancy, net

2,823

2,503

2,417Equipment expense

1,350

1,350

1,371Marketing expense

1,617

1,641

1,657Intangible asset amortization expense

337

482

368Other expense

8,102

6,115

6,008Total Other Operating Expense

34,929

31,368

29,477Income Before Income Taxes and Minority Interest

19,208

21,248

18,094Minority interest in subsidiaries

290

296

Income Before Income Taxes

18,918

20,952

18,094Provision for income taxes (Note 15)

7,260

7,978

6,924Net Income

$11,658

$12,974

$11,170Earnings Per Share, Basic

$1.82

$2.02

$1.70Earnings Per Share, Diluted

$1.80

$1.99

$1.64Weighted Average Shares Outstanding, Basic

6,400,974

6,426,002

6,601,113Weighted Average Shares Outstanding, Diluted

6,485,972

6,516,117

6,805,884    34




---



##### Table of Contents



NORTHRIM
    BANCORP, INC.
     Common StockAccumulatedAdditional



OtherNumber

Par

Paid-in

Retained

Comprehensiveof Shares

Value

Capital

Earnings

Income

Total(In Thousands)Balance as of January 1, 2005

6,089

$6,089

$45,876

$31,389

$4

$83,358Cash dividend declared







(2,560)



(2,560)Stock option expense





68





68Exercise of stock options

23

23

106





129Excess tax benefits from share-based payment arrangements





140





140Treasury stock buy-back

(309)

(309)

(7,029)





(7,338)Comprehensive income:Change in unrealized holding (gain/loss) on available for sale
    investment securities, net of related income tax effect
    (Note 16)









(493)

(493)Net Income







11,170



11,170Total Comprehensive Income











10,677Balance as of December 31, 2005

5,803

$5,803

$39,161

$39,999

($489)

$84,474Cash dividend declared







(2,780)



(2,780)Stock dividend

291

291

6,690

(6,981)



Stock option expense





390





390Exercise of stock options

38

38

300





338Excess tax benefits from share-based payment arrangements





230





230Treasury stock buy-back

(18)

(18)

(392)





(410)Comprehensive income:Change in unrealized holding (gain/loss) on available for sale
    investment securities, net of related income tax effect
    (Note 16)









202

202Net Income







12,974



12,974Total Comprehensive Income











13,176Balance as of December 31, 2006

6,114

$6,114

$46,379

$43,212

($287)

$95,418Cash dividend declared







(3,560)



(3,560)Stock dividend

301

301

6,941

(7,242)



Stock option expense





578





578Exercise of stock options

23

23

50





73Excess tax benefits from share-based payment arrangements





108





108Treasury stock buy-back

(138)

(138)

(3,258)





(3,396)Comprehensive income:Change in unrealized holding (gain/loss) on available for sale
    investment securities, net of related income tax effect
    (Note 16)









512

512Net Income







11,658



11,658Total Comprehensive Income











12,170Balance as of December 31, 2007

6,300

$6,300

$50,798

$44,068

$225

$101,391    35




---



##### Table of Contents



NORTHRIM
    BANCORP, INC.
    2007

2006

2005(In Thousands)Operating Activities:Net income

$11,658

$12,974

$11,170Adjustments to Reconcile Net Income to Net Cash Provided by
    Operating Activities:Security (gains), net





(9)Depreciation and amortization of premises and equipment

1,123

1,116

1,244Amortization of software

240

354

544Intangible asset amortization

337

482

368Amortization of investment security premium, net of discount
    accretion

(500)

(133)

Deferred tax (benefit)

(393)

(1,862)

(821)Stock-based compensation

578

390

68Excess tax benefits from share-based payment arrangements

(108)

(230)

(140)Deferral of loan fees and costs, net

(279)

19

183Provision for loan losses

5,513

2,564

1,170Purchased receivable loss

245



Gain on sale of other real estate owned

(110)



Earnings in RML, net of distributions

118

(124)

(11)Equity in loss from Elliott Cove

93

230

424Minority interest in subsidiaries

290

296

(Increase) in accrued interest receivable

(316)

(519)

(719)(Increase) in other assets

(2,283)

(6,794)

(299)Increase (decrease) of other liabilities

(22)

5,756

578Net Cash Provided by Operating Activities

16,184

14,519

$13,750Investing Activities:Investment in securities:Purchases of investment securities  available-for-sale

(136,393)

(40,643)

(10,874)Purchases of investment securities  held-to-maturity



(10,905)

(277)Proceeds from sales/maturities of securities 
    available-for-sale

100,126

6,608

17,012Proceeds from calls/maturities of securities 
    held-to-maturity

70

65

65Investment in Federal Home Loan Bank stock, net





(254)(Investment in) cash proceeds from purchased receivables, net

1,501

(8,985)

(10,007)Investments in loans:Sales of loans and loan participations

8,886

22,601

25,116Loans made, net of repayments

(2,502)

(35,762)

(53,317)Proceeds from sale of other real estate owned

266



Alaska First acquisition, net of cash received

12,699



Investment in Elliott Cove

(100)

(210)

(150)Investment in NBG





(1,146)Subscription in PWA





(2,015)Loan to Elliott Cove, net of repayments

(48)

58

(575)Loan to PWA, net of repayments



385

(385)Purchases of premises and equipment

(3,861)

(3,387)

(1,264)Purchases of software

(183)

(440)

(195)Net Cash Used by Investing Activities

(19,539)

(70,615)

(38,266)Financing Activities:Increase in deposits

24,786

15,038

80,805Increase (decrease) in borrowings

5,145

(1,913)

1,937Distributions to minority interests

(295)

(267)

Proceeds from issuance of common stock

73

338

129Excess tax benefits from share-based payment arrangements

108

230

140Proceeds from issuance of junior subordinated debentures





10,000Repurchase of common stock

(3,396)

(410)

(7,338)Cash dividends paid

(3,542)

(2,768)

(2,560)Net Cash Provided by Financing Activities

22,879

10,248

83,113Net Increase (Decrease) by Cash and Cash Equivalents

19,524

(45,408)

58,597Cash and cash equivalents at beginning of period

44,282

89,690

31,093Cash and Cash Equivalents at End of Year

$63,806

$44,282

$89,690Supplemental Information:Income taxes paid

$8,740

$9,296

$7,550Interest paid

$23,105

$21,891

$14,741Transfer of loans to other real estate owned

$4,445

$717

$    36




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##### Table of Contents



Notes to
    Consolidated Financial Statements  NOTE 1 
    Organization
    and Summary of Significant Accounting Policies        Estimates and Assumptions:
  Cash and Cash Equivalents:
  Investment Securities:
      Loans and Loan Fees:
 37




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##### Table of Contents



Allowance for Loan Losses:
    Purchased Receivables:
  Premises and Equipment:
  Intangible Assets:
  Other Assets:
  Other Real Estate Owned:
  Advertising:
  Income Taxes:
  Earnings Per Share:
 38




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##### Table of Contents



Stock Option Plans:
    2005Net income (in thousands)

As reported

$11,170Less stock-based employee compensation



(173)Net income

Pro forma

$10,997Earnings per share, basic

As reported

$1.70Pro forma

$1.67Earnings per share, diluted

As reported

$1.64Pro forma

$1.62   Comprehensive Income:
  Reclassifications:
  Segments:
  Business Concentration:
    Consolidation Policy:
  Business Combinations: Business Combinations
 39




---



##### Table of Contents



NOTE 2 
    Alaska
    First Acquisition      (In Thousands)Total Purchase Price

$6,250Allocation of purchase priceAlaska Firsts shareholder equity

4,479Estimated adjustments to reflect assets acquired and liabilities
    assumed at fair value:Investments

165Fixed assets

(109)Other assets

(840)Core deposit intangible

1,311Estimated fair value of net assets aquired

5,006Direct acquisition costs

825Goodwill resulting from acquisition

$2,069       (In Thousands)Cash

$18,806Available for sale securities

23,821Loans, net of allowance for losses of $220,000

13,205Other assets

1,565Core deposit intangible

1,311Goodwill

1,244Total Assets

59,952Deposits

47,686Repurchase Agreements

5,123Other liabilities

893Total Liabilities

53,702Net Assets Acquired

$6,250    40




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##### Table of Contents



NOTE 3 
    Cash and
    Due from Banks    NOTE 4 
    Money
    Market Investments    December 31,

2007

2006(In Thousands)Interest bearing deposits at Federal Home Loan Bank (FHLB)

$6,039

$18,717Fed funds sold

27,000

Total

$33,039

$18,717   one-day
  NOTE 5 
    Investment
    Securities    Gross

GrossAmortized

Unrealized

Unrealized

MarketDecember 31,

Cost

Gains

Losses

Value(In Thousands)2007:Securities Available for SaleU.S. Treasury

$4,977

$5

$

$4,982Government Sponsored Entities

134,370

447

79

134,738Mortgage-backed Securities

466



1

465Corporate Bonds

7,813

11



7,824Total

$147,626

$463

$80

$148,009Securities Held to MaturityMunicipal Securities

$11,701

$49

$1

$11,749Federal Home Loan Bank Stock

$2,003

$

$

$2,0032006:Securities Available for SaleU.S. Treasury

$16,860

$

$20

$16,840Government Sponsored Entities

70,438

16

483

69,971Mortgage-backed Securities

183



1

182Total

$87,481

$16

504

$86,993Securities Held to MaturityMunicipal Securities

$11,776

$32

$33

$11,775Federal Home Loan Bank Stock

$1,556

$

$

$1,556  41




---



##### Table of Contents



December 31,

Less Than 12 Months

More Than 12 Months

TotalUnrealized



Unrealized



UnrealizedFair Value

Losses

Fair Value

Losses

Fair Value

Losses(In Thousands)2007:Securities Available for SaleGovernment Sponsored Entities

$33,390

$55

$12,671

$24

$46,061

$79Mortgage-backed Securities

150

1





150

1Total

$33,540

$56

$12,671

$24

$46,211

$80Securities Held to MaturityMunicipal Securities

$0

$0

$2,037

$1

$2,037

$1   December 31,

Less Than 12 Months

More Than 12 Months

TotalUnrealized



Unrealized



UnrealizedFair Value

Losses

Fair Value

Losses

Fair Value

Losses(In Thousands)2006:Securities Available for SaleU.S. Treasury

$5,862

$5

$10,978

$15

$16,840

$20Government Sponsored Entities





39,966

483

39,966

483Mortgage-backed Securities





182

1

182

1Total

$5,862

$5

$51,126

$499

$56,988

$504Securities Held to MaturityMunicipal Securities

$8,105

$30

$274

$3

$8,379

$33    42




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##### Table of Contents



Within





Over

Amortized

Market1 Year

1-5 Years

5-10 Years

10 Years

Cost

Value(In Thousands)Securities Available for SaleU.S. Treasury

$4,977

$

$

$

$4,977

$4,982Government Sponsored Entities

39,047

80,357

14,966



134,370

134,738Mortgage-backed Securities

268

46



152

466

465Corporate Bonds



7,813





7,813

7,824Total

$44,292

$88,216

$14,966

$152

$147,626

$148,009Weighted Average Yield

4.52%

4.87%

5.17%

5.44%

4.80%

Securities Held to MaturityMunicipal Securities

$3,266

$8,030

$405

$

$11,701

$11,749Weighted Average Yield

3.76%

3.81%

3.93%

0.00%

3.80%

     Gross

GrossDecember 31,

Proceeds

Gains

Losses(In Thousands)2007:Available-for-Sale Securities

$8,900

$

$Held-to-Maturity Securities

$

$

$2006:Available-for-Sale Securities

$

$

$Held-to-Maturity Securities

$

$

$2005:Available-for-Sale Securities

$6,148

$44

$35Held-to-Maturity Securities

$

$

$       December 31,

2007

2006

2005(In Thousands)U.S. Treasury

$363

$438

$472Government Sponsored Entities

3,666

1,948

1,688Other

91

10

11Total

$4,120

$2,396

$2,171  43




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##### Table of Contents



NOTE 6 
    Loans    December 31,

2007

2006(In Thousands)Commercial

$284,956

$287,281Real estate construction

138,070

153,059Real estate term

243,245

237,599Installment and other consumer

51,274

42,140Sub-total

717,545

720,079Less: Unearned origination fees, net of origination costs

(2,744)

(3,023)Total loans

714,801

717,056Allowance for loan losses

(11,735)

(12,125)Net Loans

$703,066

$704,931            44




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##### Table of Contents



MaturityWithin



Over1 Year

1-5 Years

5 Years

Total(In Thousands)Commercial

$127,834

$111,724

$42,227

$281,785Construction

121,146

12,191



133,337Real estate term

72,096

66,667

102,721

241,484Installment and other consumer

2,056

9,011

40,198

51,265Total

$323,132

$199,593

$185,146

$707,871Fixed interest rate

$111,388

$66,885

$57,786

$236,059Floating interest rate

211,744

132,708

127,360

471,812Total

$323,132

$199,593

$185,146

$707,871     December 31,

2007

2006(In Thousands)Balance, beginning of the year

$1,123

$2,995Loans made

6,495

11,520Repayments or change to nondirector status

5,577

13,392Balance, end of year

$2,041

$1,123    45




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##### Table of Contents



NOTE 7 
    Allowance
    for Loan Losses    December 31,

2007

2006

2005(In Thousands)Balance, beginning of the year

$12,125

$10,706

$10,764Allowance aquired with stock purchase

220



Provision charged to operations

5,513

2,564

1,170Charge-offs:Commercial

(4,291)

(2,545)

(1,552)Construction

(2,982)



(100)Real estate

(599)



Installment and other consumer

(45)

(72)

(63)Total Charge-offs

(7,917)

(2,617)

(1,715)Recoveries:Commercial

1,723

1,086

418Construction

50



15Real estate



355

15Installment and other consumer

21

31

39Total Recoveries

1,794

1,472

487Charge-offs net of recoveries

(6,123)

(1,145)

(1,228)Balance, End of Year

$11,735

$12,125

$10,706       NOTE 8 
    Premises
    and Equipment    December 31,

Useful Life

2007

2006(In Thousands)Land



$1,443

$1,443Vehicle

3 years

61

61Furniture and equipment

3-7 years

10,090

9,608Tenant improvements

2-11 years

10,695

7,307Buildings

39 years

6,865

6,865Total Premises and Equipment



29,154

25,284Accumulated depreciation and amortization



(13,533)

(12,410)Total Premises and Equipment, Net



$15,621

$12,874    46




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##### Table of Contents



NOTE 9 
    Other
    Real Estate Owned    NOTE 10 
    Other
    Assets    December 31,

2007

2006(In Thousands)Intangible assets:Goodwill

$7,804

$5,735Core deposits intangible

1,251

163NBG customer relationships

891

1,005Total

$9,946

$6,903Prepaid expenses

$962

$719Software

507

553Deferred taxes, net

10,595

10,560Note receivable from Elliott Cove

665

617Investment in Elliott Cove

88

80Investment in PWA

1,789

1,894Investment in RML Holding Company

4,209

4,327Investment in Low Income Housing Partnerships

7,639

8,220Bank owned life insurance

2,853

1,215Other assets

2,141

1,304Total

$31,448

$29,489        47




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##### Table of Contents



Year Ending December 31:(In Thousands)2008

$3472009

3242010

3002011

2762012

252Thereafter

642Total

$2,141   start-up
     48




---



##### Table of Contents



December 31,

2007

2006(In Thousands)AssetsCurrent assets

$42,924

$53,072Long-term assets

6,507

6,455Total Assets

$49,431

$59,527LiabilitiesCurrent liabilities

$33,312

$41,980Long-term liabilities

537

964Total Liabilities

33,849

42,944Shareholders Equity

15,582

16,583Total Liabilities and Shareholders Equity

$49,431

$59,527Income/expenseGross income

$15,245

$17,036Total expense

14,305

14,403Joint venture allocations

492

102Net Income

$1,432

$2,735     NOTE 11 
    Deposits      Year Ending December 31:(In Thousands)2008

$71,0652009

29,0612010

2,7982011

1002012

445Thereafter

21Total

$103,490    49




---



##### Table of Contents



NOTE 12 
    Borrowings          NOTE 13 
    Junior
    Subordinated Debentures  90-day
  90-day
 50




---



##### Table of Contents



NOTE 14 
    Interest
    Expense    December 31,

2007

2006

2005(In Thousands)Interest-bearing demand accounts

$1,188

$830

$369Money market accounts

7,378

6,053

3,876Savings accounts

8,756

10,113

6,263Certificates of deposit greater than $100,000

1,583

1,425

2,170Certificates of deposit less than $100,000

2,497

1,897

1,312Borrowings

1,835

1,681

883Total

$23,237

$21,999

$14,873   NOTE 15 
    Income
    Taxes    Current Tax

Deferred

TotalDecember 31,



Expense

(Benefit)

Expense(In Thousands)2007:

Federal

$6,026

($303)

$5,723State

1,627

(90)

1,537Total



$7,653

($393)

$7,2602006:

Federal

$7,828

($1,436)

$6,392State

2,012

(426)

1,586Total



$9,840

($1,862)

$7,9782005:

Federal

$6,148

($639)

$5,509State

1,597

(182)

1,415Total



$7,745

($821)

$6,924     December 31,

2007

2006

2005(In Thousands)Computed expected income tax expense

$6,621

$7,333

$6,333State income taxes, net

999

1,031

920Other

(360)

(386)

(329)Total

$7,260

$7,978

$6,924  51




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##### Table of Contents



December 31,

2007

2006

2005(In Thousands)Provision for loan losses

$7,873

$7,113

$5,796Loan fees, net of costs

1,126

1,240

1,227Unrealized gain on available-for-sale
    investment securities

(158)

201

341Depreciation and amortization

902

826

678Other, net

852

1,180

796Net Deferred Tax Asset

$10,595

$10,560

$8,838     NOTE 16 
    Comprehensive
    Income    TaxBefore Tax

(Expense)December 31,

Amount

Benefit

Net Amount(In Thousands)2007:Unrealized net holding gains on
    investment securities arising during 2007

$871

($359)

$512Plus: Reclassification adjustment for net realized gains
    included in net income





Net unrealized gains

$871

($359)

$5122006:Unrealized net holding gains on
    investment securities arising during 2006

$342

($140)

$202Plus: Reclassification adjustment for net realized gains
    included in net income





Net unrealized gains

$342

($140)

$2022005:Unrealized net holding losses on investment securities arising
    during 2005

($828)

$340

($488)Plus: Reclassification adjustment for net realized gains
    included in net income

(9)

4

(5)Net unrealized losses

($837)

$344

($493)  52




---



##### Table of Contents



NOTE 17 
    Employee
    Benefit Plans          NOTE 18 
    Common
    Stock        NOTE 19 
    Options  10-year
 53




---



##### Table of Contents



Shares

Weighted

Range ofUnder

Average

ExerciseOption

Exercise Price

PriceDecember 31, 2004 outstanding

446,578

$10.94

$6.02-$25.94Granted  2005

51,144

18.50Forfeited

(3,154)

16.13Exercised

(27,167)

8.72December 31, 2005 outstanding

467,402

$11.86

$6.02-$25.94Granted  2006

49,731

18.29Forfeited

(6,528)

15.38Exercised

(49,632)

9.76December 31, 2006 outstanding

460,973

$12.73

$6.02-$25.94Granted  2007

64,445

16.93Forfeited

(4,349)

17.34Exercised

(32,624)

8.90December 31, 2007 outstanding

488,445

$13.50

$7.17 - $25.94     WeightedNumber of

AverageShares

Exercise PriceOutstanding at January 1, 2007

431,585

$13.60Changes during the period:Granted

47,424

23.00Exercised

(26,087)

11.13Forfeited

(3,257)

23.15Outstanding at December 31, 2007

449,665

$14.67Options exercisable at December 31, 2007

366,443

$12.61Unexercisable options at December 31, 2007

83,222

$23.71  54




---



##### Table of Contents



WeightedNumber of

AverageShares

Fair ValueOutstanding at January 1, 2007

29,388

$23.42Changes during the period:Granted

17,021

23.00Vested

(6,537)

20.96Forfeited

(1,092)

22.99Outstanding at June 30, 2007

38,780

$23.66             GrantedStock Options:

Nov. 2007

Nov. 2006

Nov. 2005Expected option life (years)

8.3

7.4

7.5Risk free rate

4.37%

4.57%

4.45%Dividends per Share

$0.66

$0.56

$0.50Expected volatility factor

34.12%

37.44%

37.06%    55




---



##### Table of Contents



Years Ended December 31,

2007

2006

2005(Dollars in Thousands)Options:Weighted-average grant-date fair value of stock options granted:

$7.55

$9.79

$8.28Total fair value of shares vested during the period:

342

256

173Total intrinsic value of options exercised:

406

672

340Restricted stock units:Weighted-average grant-date fair value of stock options granted:

$23.00

$26.44

$20.21       Average PeriodUnamortized

to ExpenseExpense

(years)(Dollars in Thousands)Stock options

$588

1.9Restricted stock

595

2.0Total

$1,183

1.9     Transition Election Related to Accounting for the Tax
    Effects of Share-Based Payment Awards
    (FSP 123R-3),
 56




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##### Table of Contents



NOTE 20 
    Commitments
    and Contingent Liabilities    Year Ending December 31:(In Thousands)2007

$1,8672008

1,8312009

1,8222010

1,7732011

1,603Thereafter

3,209Total

$12,105           Off-Balance Sheet Financial Instruments:
    December 31,

2007

2006(In Thousands )Off-balance sheet commitments:Commitments to extend credit

$158,569

$144,364Standby letters of credit

28,216

27,685    57




---



##### Table of Contents



NOTE 21 
    Regulatory
    Matters        Consolidated

Actual

Adequately-Capitalized

Well-CapitalizedAmount

Ratio

Amount

Ratio

Amount

Ratio(In thousands)As of December 31, 2007:Total Capital (to risk-weighted assets)

$120,170

13.57%

$70,845


38.0%

$88,556

310.0%Tier I Capital (to risk-weighted assets)

$109,093

12.32%

$35,420


34.0%

$53,130

36.0%Tier I Capital (to average assets)

$109,093

11.10%

$39,313


34.0%

$49,141

35.0%As of December 31, 2006:Total Capital (to risk-weighted assets)

$116,991

14.21%

$65,864


38.0%

$82,330

310.0%Tier I Capital (to risk-weighted assets)

$106,674

12.95%

$32,949


34.0%

$49,424

36.0%Tier I Capital (to average assets)

$106,674

11.71%

$36,439


34.0%

$45,548

35.0%  58




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##### Table of Contents



Northrim Bank

Actual

Adequately-Capitalized

Well-CapitalizedAmount

Ratio

Amount

Ratio

Amount

Ratio(In Thousands)As of December 31, 2007:Total Capital (to risk-weighted assets)

$113,089

12.80%

$70,681

38.0%

$88,351

310.0%Tier I Capital (to risk-weighted assets)

$102,037

11.55%

$35,337

34.0%

$53,006

36.0%Tier I Capital (to average assets)

$102,037

10.43%

$39,132

34.0%

$48,915

35.0%As of December 31, 2006:Total Capital (to risk-weighted assets)

$101,520

12.35%

$65,762

38.0%

$82,202

310.0%Tier I Capital (to risk-weighted assets)

$91,220

11.09%

$32,902

34.0%

$49,353

36.0%Tier I Capital (to average assets)

$91,220

10.06%

$36,270

34.0%

$45,338

35.0%   NOTE 22 
    Fair
    Value of Financial Instruments    Cash and Money Market Investments:
  Investment Securities:
  Loans:
  Purchased Receivables:
  Deposit Liabilities:
  Borrowings:
  Junior Subordinated Debentures:
  Commitments to Extend Credit and Standby Letters of
    Credit:
  Limitations:
  59




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##### Table of Contents



December 31,

2007

2006Carrying

Fair

Carrying

FairAmount

Value

Amount

Value(In Thousands)Financial Assets:Cash and money market investments

$63,806

$63,806

$44,282

$44,282Investment securities

161,713

161,761

100,325

100,324Net loans

703,066

701,912

704,931

698,346Purchased receivables

19,437

19,437

21,183

21,183Accrued interest receivable

5,232

5,232

4,916

4,916Financial Liabilities:Deposits

$867,376

$866,299

$794,904

$794,520Accrued interest payable

709

709

577

577Borrowings

16,770

16,673

6,502

6,395Junior subordinated debentures

18,558

23,135

18,558

15,812Unrecognized Financial Instruments:Commitments to extend
    credit(a)

$158,569

$1,586

$144,364

$1,444Standby letters of
    credit(a)

28,216

282

27,685

277   (a)
    
    Carrying amounts reflect the
    notional amount of credit exposure under these financial
    instruments.  NOTE 23 
    Quarterly
    Results of Operations (Unaudited)  2007 Quarter Ended

Dec. 31

Sept. 30

June 30

March 31(In Thousands Except Per Share Amounts)Total interest income

$18,242

$18,470

$18,373

$17,982Total interest expense

5,314

6,058

5,986

5,879Net interest income

12,928

12,412

12,387

12,103Provision for loan losses

3,000

725

1,333

455Other operating income

2,705

2,783

2,670

1,662Other operating expense

8,814

8,559

8,624

8,932Income before income taxes and minority interest

3,819

5,911

5,100

4,378Minority interest in subsidiaries

75

85

80

50Pre tax income

3,744

5,826

5,020

4,328Income taxes

1,583

2,200

1,878

1,599Net Income

$2,161

$3,626

$3,142

$2,729Earnings per share, basic

$0.34

$0.57

$0.49

$0.42Earnings per share, diluted

$0.34

$0.56

$0.48

$0.42   60




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2006 Quarter Ended

Dec. 31

Sept. 30

June 30

March 31(In Thousands Except Per Share Amounts)Total interest income

$18,653

$17,841

$16,963

$16,064Total interest expense

5,893

5,904

5,437

4,765Net interest income

12,760

11,937

11,526

11,299Provision for loan losses

800

850

860

54Other operating income

2,076

2,203

1,951

1,428Other operating expense

8,028

7,661

7,715

7,964Income before income taxes and minority interest

6,008

5,629

4,902

4,709Minority interest in subsidiaries

78

70

103

45Pre tax income

5,930

5,559

4,799

4,664Income taxes

2,241

2,108

1,860

1,769Net Income

$3,689

$3,451

$2,939

$2,895Earnings per share, basic

$0.57

$0.54

$0.46

$0.45Earnings per share, diluted

$0.56

$0.53

$0.45

$0.45   NOTE 24 
    Disputes
    and Claims   61




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NOTE 25 
    Parent
    Company Financial Information    Balance Sheets for December 31,

2007

2006

2005(In Thousands)AssetsCash

$3,951

$12,629

$11,014Investment in Northrim Bank

112,184

97,806

87,922Investment in NISC

1,795

2,530

2,484Investment in NCT1

248

248

248Investment in NST2

310

310

310Due from NISC

530

110

718Due from Northrim Bank

312



Other assets

1,001

414

425Total Assets

$120,331

$114,047

$103,121LiabilitiesJunior subordinated debentures

$18,558

$18,558

$18,558Other liabilities

382

71

89Total Liabilities

18,940

18,629

18,647Shareholders EquityCommon stock

6,300

6,114

5,803Additional paid-in capital

50,798

46,379

39,161Retained earnings

44,068

43,212

39,999Accumulated other comprehensive
    income- net
    unrealized gains on available for sale investment securities

225

(287)

(489)Total Shareholders Equity

101,391

95,418

84,474Total Liabilities and Shareholders Equity

$120,331

$114,047

$103,121   Statements of Income For Years
    Ended:

2007

2006

2005(In Thousands)IncomeInterest income

$518

$578

$229Net income from Northrim Bank

13,365

14,432

12,118Net loss from NISC

(95)

(170)

(233)Total Income

13,788

14,840

12,114ExpenseInterest expense

1,421

1,360

565Administrative and other expenses

1,691

1,262

846Total Expense

3,112

2,622

1,411Net Income Before Income Taxes

10,676

12,218

10,703Income tax expense (benefit)

(982)

(756)

(467)Net Income

$11,658

$12,974

$11,170   62




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Statements of Cash Flows For Years
    Ended:

2007

2006

2005(In Thousands)Operating Activities:Net income

$11,658

$12,974

$11,170Adjustments to Reconcile Net Income to Net Cash:Equity in undistributed earnings from subsidiaries

(13,270)

(9,512)

(7,385)Stock-based compensation

578

390

68Changes in other assets and liabilities

(1,027)

583

220Net Cash Used from Operating Activities

(2,061)

4,435

4,073Investing Activities:Investment in Northrim Bank, NISC, NCT1 & NST2

140

(210)

(2,165)Net Cash Used by Investing Activities

140

(210)

(2,165)Financing Activities:Dividends paid to shareholders

(3,542)

(2,768)

(2,560)Proceeds from issuance of trust preferred securities





10,000Proceeds from issuance of common stock and excess tax benefits

181

568

269Repurchase of common stock

(3,396)

(410)

(7,338)Net Cash Provided by Financing Activities

(6,757)

(2,610)

371Net Increase by Cash and Cash Equivalents

(8,678)

1,615

2,279Cash and Cash Equivalents at beginning of period

12,629

11,014

8,735Cash and Cash Equivalents at end of period

$3,951

$12,629

11,014  63




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##### Table of Contents



Annual
    Report on
    Form 10-K        92-0175752
   (907) 562-0062
            Rule 12b-2
         Rule 12b-2
   Regulation S-K Form 10-K.
         Form 10-K Form 10-K.
 64




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##### Table of Contents



Index
  Part I

PageItem 1.

Business

1-4, 8-22, 67-72General

1-4, 67-72Investment Portfolio

18-20, 43-45, 58-59Loan Portfolio

14-18, 45-46Summary of Loan Loss Experience

14-18, 45-47Deposits

20-21, 50Return on Equity and Assets

6Short-term Borrowings

21, 50-51Item 1A.

Risk Factors

71-72Item 1B.

Unresolved Staff Comments

NoneItem 2.

Properties

73Item 3.

Legal Proceedings

62Item 4.

Submission of Matters to a Vote of Security Holders

NonePart IIItem 5.

Market for Registrants Common Equity, Related Stockholder
    Matters and Issuer Purchases of Equity Securities

22-27, 55Item 6.

Selected Financial Data

6-7Item 7.

Managements Discussion and Analysis of Financial Condition
    and Results of Operations

8-31Item 7A.

Quantitative and Qualitative Disclosures about Market Risk

29-30Item 8.

Financial Statements and Supplementary Data

34-64Item 9.

Changes in and Disagreements with Accountants on Accounting and
    Financial Disclosure

NoneItem 9A.

Controls and Procedures

31Item 9B.

Other Information

NonePart IIIItem 10.

Directors and Executive Officers of the Registrant

*Item 11.

Executive Compensation

*Item 12.

Security Ownership of Certain Beneficial Owners and Management
    and Related Stockholder Matters

*Item 13.

Certain Relationships and Related Transactions

*Item 14.

Principal Accounting Fees and Services

*Part IVItem 15.

Exhibits, Financial Statement Schedules

73-75    65




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General
      Competition
       66




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##### Table of Contents



Number of



Market share ofFinancial institution

branches

Total deposits

deposits(Dollars in Thousands)Northrim Bank

8(1)

$697,288

22%Wells Fargo Bank Alaska

14

1,241,462

39%First National Bank Alaska

10

774,373

24%Key Bank

4

437,595

14%Alaska First Bank & Trust

2(2)

47,935

1%Total

38

$3,198,653

100%       Employees
    and Key Personnel
      Alaska
    Economy
       67




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##### Table of Contents



and/or
  Supervision
    and Regulation
     68




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##### Table of Contents



69




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##### Table of Contents



Risk
    Factors
      Adequacy of Loan Loss Allowance:
  Growth and Management:
  Changes in Market Interest Rates:
    Geographic Concentration:
 70




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##### Table of Contents



Regulation:
  Competition: and/or
  Credit Risk:
 71




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##### Table of Contents



Properties
    Locations

Type

Leased/OwnedMidtown Financial Center: Northrim
    Headquarters3111 C Street, Anchorage, AK

Traditional

LeasedSouthSide Financial Center
    8730 Old Seward Highway, Anchorage, AK

Traditional

Land leased;
    building owned36th Avenue Branch
    811 East 36th Avenue, Anchorage, AK

Traditional

OwnedHuffman Branch
    1501 East Huffman Road, Anchorage, AK

Supermarket

LeasedJewel Lake Branch
    9170 Jewel Lake Road, Anchorage, AK

Traditional

LeasedSeventh Avenue Branch
    550 West Seventh Avenue, Anchorage, AK

Traditional

LeasedWest Anchorage Branch/Small Business Center
    2709 Spenard Road, Anchorage, AK

Traditional

OwnedEagle River Branch
    12812 Old Glenn Highway, Fire Lake Plaza, Eagle River, AK

Traditional

LeasedFairbanks Financial Center
    714 Fourth Avenue, Suite 100, Fairbanks, AK

Traditional

LeasedWasilla Financial Center
    850 E. USA Circle, Suite A, Wasilla, AK

Traditional

Owned   Financial
    Statements and Exhibits
               72




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##### Table of Contents



Exhibits
  Index to Exhibits
  ExhibitNumber

Name of Document3.1

Amended and Restated Articles of
    Incorporation(1)3.2

Amended and Restated
    Bylaws(2)4.1

Form of Common Stock
    Certificate(1)4.2

Pursuant to Section 6.0 (b)(4)(iii)(A) of Regulation S-K, copies
    of instruments defining rights of holders of long-term debt and
    preferred securities are not filed.  The Company agrees to
    furnish a copy thereof to the Securities and Exchange Commission
    upon request.4.3

Indenture dated as of December 16,
    2005(5)4.4

Form of Junior Subordinated Debt Security due
    2036(5)10.1

Employee Stock Option and Restricted Stock Award
    Plan(1)10.2

2000 Employee Stock Incentive
    Plan(1)10.7

Plan and Agreement of Reorganization between the Registrant and
    Northrim Bank dated as of March 7,
    2001(3)10.8

Supplemental Executive Retirement Plan dated July 1, 1994, as
    amended January 8,
    2004(4)10.9

Supplemental Executive Retirement Deferred Compensation
    Plan(3)10.10

2004 Stock Incentive
    Plan(4)10.12

Capital Securities Purchase Agreement dated December 14,
    2005(5)10.13

Amended and Restated Declaration of Trust Northrim Statutory
    Trust 2 dated as of December 16,
    2005(5)10.16

Amended and Restated Employment Agreement with R. Marc
    Langland(6)10.17

Amended and Restated Employment Agreement with Joseph M.
    Schierhorn(6)10.18

Amended and Restated Employment Agreement with Christopher N.
    Knudson(6)10.19

Amended and Restated Employment Agreement with Joseph M.
    Beedle(6)10.21

Supplemental Executive Retirement Plan dated July 1, 1994, as
    amended January 1,
    2005(7)10.22

Deferred Compensation Plan dated January 1, 1995, as amended
    January 1,
    2005(7)10.23

Supplemental Executive Retirement Deferred Compensation Plan
    dated February 1, 2002, as amended January 1,
    2005(7)10.24

Employment Agreement with Steven L.
    Hartung(8)21

SubsidiariesNorthrim BankNorthrim Investment Services CompanyNorthrim Capital Trust 123

Consent of KPMG
    LLP(9)24

Power of
    Attorney(9)31.1

Certification of Chief Executive Officer pursuant to
    18 U.S.C. § 1350, as adopted pursuant to Section 302
    of the Sarbanes-Oxley Act of
    2002(9)31.2

Certification of Chief Financial Officer pursuant to
    18 U.S.C. § 1350, as adopted pursuant to Section 302
    of the Sarbanes-Oxley Act of
    2002(9)32.1

Certification of Chief Executive Officer pursuant to
    18 U.S.C. § 1350, as adopted pursuant to Section 906
    of the Sarbanes-Oxley Act of
    2002(9)32.2

Certification of the Chief Financial Officer pursuant to
    18 U.S.C. § 1350, as adopted pursuant to Section 906
    of the Sarbanes-Oxley Act of
    2002(9)     (1)
    
    Incorporated by reference to the Companys
    Form 8-A,
    filed with the SEC on January 14, 2002(2)
    
    Incorporated by reference to the Companys
    Form 8-K,
    filed with the SEC on September 7,2007(3)
    
    Incorporated by reference to the Companys
    Form 10-K
    for the year ended December 31, 2002, filed with the SEC on
    March 19, 2003(4)
    
    Incorporated by reference to the Companys
    Form 10-K
    for the year ended December 31, 2003, filed with the SEC on
    March 15, 2004(5)
    
    Incorporated by reference to the Companys
    Form 10-K
    for the year ended December 31, 2005, filed with the SEC on
    March 16, 2006(6)
    
    Incorporated by reference to the Companys
    Form 10-K
    for the year ended December 31, 2006, filed with the SEC on
    March 16, 2007(7)
    
    Incorporated by reference to the Companys
    Form 10-Q
    for the quarter ended September 30, 2007, filed with the
    SEC on November 8, 2007(8)
    
    Incorporated by reference to the Companys
    Form 8-K,
    filed with the SEC on January 15, 2008(9)
    
    Filed with this
    Form 10-K 73




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##### Table of Contents



Signatures
    Northrim BanCorp, Inc.
  By
    /s/ R. Marc Langland         /s/ R. Marc Langland      /s/ Joseph M. Schierhorn      Form 10-K,
  Larry S. Cash
    Mark G. Copeland
    Ronald A. Davis
    Anthony Drabek
    Christopher N. Knudson

R. Marc Langland Richard L. Lowell
    Irene Sparks Rowan 
    John C. Swalling
    David G. Wight   By
    /s/ R. Marc Langland     74




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##### Table of Contents



Investor
    Information
  Annual
    Meeting
  Date:

Thursday, May 1, 2008Time:

9 a.m.Location:

Hilton Anchorage Hotel
    500 West Third Avenue
    Anchorage, AK 99501   Stock
    Symbol
    Auditor
    Transfer
    Agent and Registrar
  Trust Company: 1-800-937-5449
  Legal
    Counsel
    Information
    Requests
    
    Visit our home page, www.northrim.com, and click on the
    For Investorssection for stock information
    and copies of earnings and dividend releases.
    If you would like to be added to Northrims investor
    e-mail list
    or have investor information mailed to you, send a request to
    investors@nrim.com or call our Corporate Secretary at
    (907) 261-3301.  Written requests should be mailed to the following
    address:
    99524-1489
  (907) 562-0062
 (907) 562-1758
 E-mail:
 http://www.northrim.com
  75