Northrim BanCorp calls $8 million trust preferred security due 2033

By Wendy Van Sickle

Columbus, Ohio, July 14 – Northrim BanCorp Inc. will redeem its $8 million trust preferred security held under Northrim Capital Trust I due May 15, 2033 on Aug. 15, according to a news release.

The preferred securities bear interest at Libor plus 315 basis points. They became callable in 2008.

Last year, the total interest cost on the preferreds was $310,000.

“Based on the capital levels we have built over the past few years, this redemption allows us to eliminate one of our higher-cost debt securities,” Joe Schierhorn, president and chief executive officer of Northrim, said in the release.

“It will support our strong net interest margin and reduce risks associated with rising interest rates.”

The $10 million trust preferred security due May 15, 2036 is not being redeemed, the release notes.

Northrim BanCorp, Inc. is the parent company of Northrim Bank, an Alaska-based community bank with 14 branches. Its headquarters are in Anchorage.

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