EXHIBIT 99.1

Contact:		Joe Schierhorn, Chief Financial Officer (907) 261-3308

NEWS RELEASE

Northrim BanCorp 2011 Net Profits Increase 26% to $11.4 Million, or $1.74 per Diluted
Share

ANCHORAGE, AK—January 24, 2012—Northrim BanCorp, Inc. (NASDAQ: NRIM) today reported net profits increased 26% to $11.4 million, or $1.74 per diluted share, in 2011, compared to $9.1 million, or $1.40 per diluted share a year ago. Improving asset quality, growing other operating income, improving operating efficiencies and continuing growth in transaction deposit balances generated an increase in profitability in 2011. In the fourth quarter of 2011, Northrim’s profits increased 30% to $3.3 million, or $0.50 per diluted share compared to $2.5 million, or $0.38 per diluted share, in the third quarter of 2011 and increased 76% compared to $1.8 million, or $0.28 per diluted share, in the fourth quarter a year ago.

“We are proud that we have generated sufficient profits over the last 20 years that have allowed us to make consecutive quarterly dividend payments to our shareholders over the past 17 years,” said Marc Langland, Chairman, President and CEO of Northrim BanCorp, Inc. “We have been fortunate to operate in Alaska’s stable economic climate, and we are continuing to build on this solid foundation.”

Financial Highlights (at or for the period ended December 31, 2011, compared to September 30, 2011, and December 31, 2010)

“Both our loan and deposit mix have benefited from the success of a number of marketing and advertising campaigns, as well as the hard work of our relationship managers,” said Joe Beedle, President and CEO of Northrim Bank. “Commercial loans are up 11% from the prior quarter and now account for 39% of total portfolio loans. Transaction accounts (excluding time deposits) are up 6% for the year in 2011 and now account for 88% of total deposits.”

Alaska Economic Update

“With oil prices continuing to hover at the $100 per barrel level, petroleum remains Alaska’s #1 cash producer and a foundation of the local economy,” said Langland. “Earlier this month, Alaska’s governor met in Alaska with the CEO’s of BP, ExxonMobil and ConocoPhillips to discuss the potential for an in-state natural gas pipeline to feed Alaska’s large natural gas reserves to a LNG plant that would allow this resource to be exported to Asia. This and other capital projects designed to open Alaska’s energy reserves to the world are still in the early stages. We are encouraged by the discussions occurring on this long-term project.”

Northrim Bank sponsors the Alaskanomics blog to provide news, analysis and commentary on Alaska’s economy. With contributions from economists, business leaders, policy makers and everyday Alaskans, Alaskanomics aims to engage readers in an ongoing conversation about our economy, now and in the future. Join the conversation at Alaskanomics.com or for more information on the Alaska economy, visit www.northrim.com and click on the “About Alaska” tab.

Asset Quality and Balance Sheet Review

Northrim’s assets totaled $1.09 billion at December 31, 2011, compared to $1.07 billion at September 30, 2011, and $1.05 billion a year ago.

Portfolio loans increased 3% to $645.6 million at December 31, 2011, from $629.7 million at September 30, 2011, with an increase in commercial loans offsetting declines in construction loans while commercial real estate loans were virtually flat. At December 31, 2011, commercial loans accounted for 39% of portfolio loans and commercial real estate loans accounted for 49% of portfolio loans, as compared to 38% and 46%, respectively, a year ago. Construction and land development loans accounted for 6% of portfolio loans at December 31, 2011 and 7% at September 30, 2011 and 9% at December 31, 2010.

“We are continuing to sell foreclosed properties and are finding the valuations for these assets reflect a stable real estate market,” said Chris Knudson, Chief Operating Officer. “In addition, we are seeing fewer property owners in distress in our markets.”

Nonperforming assets (NPAs), declined to $12.5 million at December 31, 2011 from $13.8 million in the prior quarter and from $21.8 million at the end of 2010. The nonperforming assets to total assets ratio stood at 1.16% at December 31, 2011, down from 1.29% three months earlier and 2.07% a year ago.

Loans measured for impairment decreased to $9.5 million at December 31, 2011, from $10.9 million at the end of September 2011, and $18.3 million in the fourth quarter a year ago.

At December 31, 2011, there were $2.2 million of restructured loans included in nonaccrual loans, as compared to $1.5 million at September 30, 2011 and $0 at December 31, 2010. At December 31, 2011 there were $2.3 million in restructured loans that were not included in nonaccrual loans, as compared to $2.6 million at September 30, 2011 and $0 at December 31, 2010. “Restructured loans involve situations where the borrowers were granted concessions on the terms of their loans due to their financial difficulties”, said Joe Schierhorn, Chief Financial Officer. “We chose to break out the restructured loans that were not included in nonaccrual from those that are in nonaccrual to provide more information on this category of loans and to differentiate between accruing performing and nonperforming restructured loans.”

The coverage ratio of the allowance for loan losses to nonperforming loans increased to 224.2% at year-end 2011, compared to 204.6% at September 30, 2011, and to 126.2% a year ago. The allowance for loan losses was $16.5 million, or 2.56% of total loans at year end 2011, compared to $16.1 million, or 2.56% of total loans at September 30, 2011, and $14.4 million, or 2.14% of total loans a year ago. “We generated net recoveries in the fourth quarter of 2011 of $60,000 and $98,000 for the full year which contributed to the increase in the allowance during the year. These net recoveries are in contrast to net charge-offs of $2.7 million in the fourth quarter of 2010 and $4.3 million for the entire year of 2010,” added Knudson.

Investment securities totaled $227.9 million at the end of 2011, up 3% from $222.1 million a year ago. At December 31, 2011, the investment portfolio was comprised of 66% U.S. Agency securities (primarily Federal Home Loan Bank and Federal Farm Credit Bank debt), 9% Alaskan municipality, utility, or state agency securities, 20% corporate securities, 4% U.S. Treasury Notes, and 1% stock in the Federal Home Loan Bank of Seattle. The average estimated duration of the investment portfolio is less than two years.

“Our primary funding source is deposits from business and consumer transaction accounts, which are all generated from our main markets of greater Anchorage and Fairbanks,” said Beedle. At the end of 2011, total deposits were $911.2 million, compared to $893.6 million at September 30, 2011, and $892.1 million a year ago. Year-over-year, average deposit balances grew 1% to $897.4 million from $892.1 million in the like period a year ago. At year end 2011, average noninterest-bearing deposits grew 11% during the year to $293.7 million from $264.9 million a year ago.

Noninterest-bearing demand deposits at December 31, 2011 increased 12% from a year ago and accounted for 36% of total deposits. Interest-bearing demand deposits at the end of 2011 grew 3% year-over-year. Money market balances at the end 2011 were up 4% from year ago levels and savings account balances increased 3% from a year ago. The Alaska CD (a flexible certificate of deposit program) was up 2% at the end of 2011 while time deposit balances fell 21% compared to the fourth quarter a year ago. At the end of the fourth quarter of 2011, noninterest-bearing demand deposits accounted for 36% of total deposits, interest-bearing demand accounts were 15%, savings deposits were 9%, money market balances accounted for 17%, the Alaska CD accounted for 11% and time certificates were 12% of total deposits.

Shareholders’ equity increased 7% to $125.4 million, or $19.39 per share, at December 31, 2011, compared to $117.1 million, or $18.21 per share, a year ago. Tangible book value per share was $18.09 at the end of 2011, compared to $16.86 a year ago. Northrim remains well-capitalized with Tier 1 Capital to Risk Adjusted Assets of 15.20% at December 31, 2011.

Review of Operations

Net Interest Income

Fourth quarter 2011 net interest income was down 1% year-over-year to $10.8 million from $10.9 million in the fourth quarter of 2010 and up 4% from $10.4 million in the immediate prior quarter. For the full year, net interest income was down 4% to $42.4 million from $44.2 million in 2010.

“We continue to generate a net interest margin well above national peer averages according to the Uniform Bank Performance Report that is compiled by the Federal Financial Institutions Examination Council (“FFIEC”),” said Schierhorn. In the fourth quarter of 2011, Northrim’s net interest margin was 4.55%, up 10 basis points from 4.45% in the third quarter of 2011 and down 2 basis points from 4.57% in the fourth quarter a year ago. Northrim’s net interest margin was 4.59% in 2011, compared to a 4.92% net interest margin generated in 2010.

Provision for Loan Losses

The loan loss provision in the fourth quarter of 2011 totaled $350,000, down from $550,000 recorded in the preceding quarter and down from $2.4 million in the fourth quarter a year ago. For 2011, the loan loss provision totaled $2.0 million, down from $5.6 million a year ago.

Other Operating Income

In addition to traditional loans and savings accounts, Northrim offers purchased receivables financing in its Alaska markets and the Pacific Northwest through a division of Northrim Bank and health insurance plans, mortgages, and wealth management including business and employee retirement services through several affiliates in which it shares an ownership position.

Total other operating income increased 15% to $3.9 million in the fourth quarter of 2011, compared to $3.4 million for the third quarter ended September 30, 2011, and $3.4 million in the fourth quarter a year ago. Total other operating income for 2011 increased 6% to $13.1 million, as compared to the same period in 2010.

“Purchased receivable financing is proving to be an attractive alternative to conventional loans for businesses to supplement their operating capital,” said Beedle. Purchased receivables income contributed $817,000 to fourth quarter 2011 revenues, compared to $695,000 in the preceding quarter and $445,000 in the fourth quarter a year ago. For the year 2011, purchased receivables income contributed $2.7 million to revenues compared to $1.8 million in 2010.

Income from Northrim’s mortgage affiliate increased 75% to $626,000 in the fourth quarter ending December 31, 2011, compared to $357,000 for the third quarter ending September 30, 2011, but it decreased 13% from $722,000 in the fourth quarter a year ago. For the year 2011, income from Northrim’s mortgage affiliate decreased 14% to $1.2 million, compared to $1.4 million in 2010. “Mortgage rates continued to decline in the fourth quarter of 2011 which drove strong demand for refinancing at our mortgage affiliate,” said Beedle.

Northrim’s employee benefit plan affiliate, contributed $538,000 to fourth quarter 2011 revenues, compared to $483,000 in the fourth quarter of 2010. In 2011, employee benefit plan income totaled $2.2 million, up from $1.9 million a year ago. “We offer service, value and a wide choice of employee health benefit plans for our business customers,” noted Knudson. “In addition, our three wealth management affiliates in which we have an ownership interest, Elliott Cove Insurance Agency, Elliott Cove Capital Management, and Pacific Wealth Advisors, also added $73,000 to fourth quarter revenues and $279,000 to revenues in 2011.”

In the fourth quarter of 2011, service charges on deposit accounts increased 10% from the fourth quarter a year ago. For the full year, service charges on deposit accounts declined 13% from 2010. “While many banks are seeing lower revenues for overdraft services, we have benefited from other revenue streams,” said Knudson. “We are continuing to see higher volumes of electronic banking transactions and have seen an increase in service charges during the fourth quarter.” Electronic banking fees increased 3% in the fourth quarter of 2011, compared to the preceding quarter, and increased 10% from a year ago. For the year, electronic banking income grew 11% over 2010, reflecting increased debit card transactions.

Other Operating Expenses

“With the continuing sale of bank-owned properties, we are not generating the high levels of rental income from our OREO assets which has been a reduction to other operating expenses in past quarters,” said Beedle. “However, our investments in technology and infrastructure and a bank-wide focus on efficiency are beginning to realize positive results.” Fourth quarter 2011 other operating expenses remained flat at $9.4 million compared to the third quarter of 2011and increased 2% from $9.2 million in the fourth quarter a year ago. For 2011, other operating expenses declined 2% to $36.8 million, compared to $37.6 million in 2010, reflecting reduced personnel, marketing, insurance, and other expenses.

About Northrim BanCorp

Northrim BanCorp, Inc. is the parent company of Northrim Bank, a commercial bank that provides personal and business banking services through locations in Anchorage, Eagle River, Wasilla, and Fairbanks, Alaska, and a factoring/asset based lending division in Washington. The Bank differentiates itself with a “Customer First Service” philosophy. Affiliated companies include Elliott Cove Insurance Agency, LLC; Elliott Cove Capital Management, LLC; Residential Mortgage, LLC; Northrim Benefits Group, LLC; and Pacific Wealth Advisors, LLC.

www.northrim.com

This release may contain “forward-looking statements” that are subject to risks and uncertainties. Readers should not place undue reliance on forward-looking statements, which reflect management’s views only as of the date hereof. All statements, other than statements of historical fact, regarding our financial position, business strategy and management’s plans and objectives for future operations are forward-looking statements.  When used in this report, the words “anticipate,” “believe,” “estimate,” “expect,” and “intend” and words or phrases of similar meaning, as they relate to Northrim or management, are intended to help identify forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  Although we believe that management’s expectations as reflected in forward-looking statements are reasonable, we cannot assure readers that those expectations will prove to be correct.  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 our ability to maintain or expand our market share or net interest margins, and to implement our marketing and growth strategies.  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 as those factors relate to our cost of funds and return on assets.  In addition, there are risks inherent in the banking industry relating to collectibility of loans and changes in interest rates.  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 other 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.