Northrim BanCorp acquired Sallyport Commercial Finance (SCF) in an all-cash transaction that closed on Oct. 31, 2024 and is valued at approximately $53.9 million. The transaction is expected to provide earnings accretion of approximately 15% to Northrim’s 2025 operating results.
“Having worked with Nick and the Sallyport team for several years, we have been impressed by the quality of the business they have built,” Mike Huston, president and CEO of Northrim, said. “We view this as an opportunity to partner with a company that has similar core values of customer service, tailored solutions, creativity and responsiveness without distracting from our growing Alaskan banking franchise. We believe our 20-year history in the factoring business through Northrim Funding Services and our low-cost deposit base makes us the ideal partner to help Sallyport capture an increased share of a dynamic market segment.”
SCF will operate as a wholly-owned subsidiary, and is expected to complement the products currently offered by Northrim Funding Services, a factoring division of Northrim Bank. Executive management at SCF has over 100 years of combined industry experience and will remain in their current positions.
“The time working closely with Northrim as a lender and partner to Sallyport has given me a unique insight into how the team operates at all levels,” Nick Hart, co-founder and president of SCF, said. “I have been very impressed with Northrim’s ability to develop solutions and deliver on commitments which have provided growth and opportunity for customers. We are excited to be joining the Northrim team and look forward to what we can learn and accomplish together.”
Northrim was advised in this transaction by Janney Montgomery Scott, and Accretive Legal served as its legal counsel. Keefe, Bruyette & Woods, a Stifel company, acted as financial adviser for Sallyport, while Latham & Watkins served as its legal counsel.
