Jed Ballard
About Jed Ballard
Executive Vice President and Chief Financial Officer (CFO) of Northrim BanCorp, Inc. and Northrim Bank since 2018; age 46. Ballard is a CPA with a BBA in Accounting from the University of Alaska Fairbanks and previously spent over sixteen years at KPMG, culminating as Senior Audit Manager . Recent company performance context: in Q3 2025 NRIM delivered ROAA of 3.32%, ROAE of 35.66%, NIMTE of 4.88%, and diluted EPS of $1.20; adjusted net income (ex-PWA asset sale) was $16.2M . Pay-versus-performance shows strong multi-year TSR and rising net income/assets: a $100 initial investment value of 243 in 2024 (company) vs 115 (peer), net income of $36.97M and total assets of $3.04B in 2024 .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| KPMG | Senior Audit Manager | 16+ years (prior to 2018) | Led public-company audit engagements; deep audit/controls expertise supporting CFO oversight |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Junior Achievement of Alaska | Board Member | Current | Youth financial education/community engagement |
| Alaska Native Heritage Center | Board Member; Chair, Audit & Finance Committee | Current | Governance and financial oversight of a leading cultural institution |
Fixed Compensation
Multi-year reported pay for Jed W. Ballard:
| Metric ($) | 2022 | 2023 | 2024 |
|---|---|---|---|
| Salary | 303,745 | 340,993 | 369,307 |
| Stock Awards (grant-date fair value) | — | 121,389 | 91,273 |
| Non-Equity Incentive (Profit Sharing) | 112,993 | 100,252 | 180,960 |
| Change in Pension/Deferred Earnings | 48 | 22 | 274 |
| All Other Compensation | 46,182 | 48,881 | 54,315 |
| Total | 462,968 | 611,537 | 696,129 |
Additional fixed/elective components:
- 2024 employer contributions: 401(k) $18,975 and SERP $35,340 .
- Deferred Compensation Plan (2023 DCP) elective salary deferral: $23,477 contributed by Ballard in 2024; 2024 DCP earnings $2,786; DCP balance $26,264 at year-end .
- SERP balance $226,751 with 2024 earnings $11,678 (company contribution rate in Ballard’s agreement is 10% of base salary; SERP earnings methodology revised to participant-directed investments beginning in 2025) .
Performance Compensation
Annual Profit Sharing Plan (cash)
| Component | Design | 2024 Outcome |
|---|---|---|
| Funding criteria | 60% based on Community Banking segment budget-to-actual pre-tax income; 40% based on consolidated ROAA rank vs U.S. banks with $1–5B assets (funding between 50–150% if ranked in top 70%; zero if below) | Aggregate payout $5.3M company-wide; $1.0M to NEOs; Ballard earned $180,960 |
| Minimum gates | Regulatory capital ratios (Total ≥10%, Tier 1 ≥8%, Tier 1 leverage ≥5%), classified assets ≤30% of risk-based capital; acceptable regulatory exam | Gates met for 2024 |
2024 Equity Awards (RSUs/PSUs)
| Award Type | Grant Date | Units (Jed Ballard) | Vesting | Fair Value ($) |
|---|---|---|---|---|
| Time-based RSUs | Mar 28, 2024 | 902 | Cliff vest on 3rd anniversary; dividend equivalents accrue/pay only upon vest | 91,273 (total 2024 stock awards) |
| Performance Units (PSUs) | Mar 28, 2024 | Threshold 451; Target 902; Max 1,353 | 3-year cycle; payout 50/100/150% tied to relative TSR (50% weight) and ROAA (50%) vs SNL U.S. Bank Index ($1–5B assets). Percentile hurdles: Threshold 70th, Target 45th, Stretch 25th; dividend equivalents accrue; clawback applies |
Detailed PSU metrics and weights:
- Metric weighting: TSR 50%; ROAA 50% .
- Percentile thresholds: Threshold 70th; Target 45th; Stretch 25th; payout 50/100/150% of target .
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Beneficial ownership | 13,326 shares; includes options exercisable within 60 days (8,464) and 234 shares in 401(k); <1% of shares outstanding |
| Options outstanding (exercisable) | 1,374 @ $42.02 exp 12/1/2031; 2,153 @ $32.09 exp 12/2/2030; 2,450 @ $36.46 exp 12/4/2029; 2,487 @ $37.06 exp 11/28/2028; no unvested options |
| Unvested RSUs (total) | 4,758 units; vesting tranches: 2,902 on Mar 23, 2026 and 1,856 on Mar 29, 2027 (includes dividend equivalents) |
| Ownership guidelines | No formal executive stock ownership requirement (company has not established a program requiring executives to own/purchase stock on a schedule) |
| Hedging/pledging | Hedging prohibited; pledging strongly discouraged under Insider Trading Policy |
| Clawback policy | Compensation Recovery Policy adopted in 2023 covering erroneously awarded incentive-based compensation upon qualifying restatements |
Employment Terms
| Provision | Detail |
|---|---|
| Current role/tenure | EVP & CFO of the Company and Bank since 2018 |
| Contract term | New employment agreements effective Jan 1, 2025; initial term through Dec 31, 2025 with annual auto-renewals unless notice ≥90 days prior to Jan 1 |
| Non-compete | 1-year post-termination (9 months for certain roles; Ballard’s covenant is 1 year) |
| Annual SERP contribution | 10% of base salary; Board/Committee discretion to adjust; participant-directed investments from 2025 |
| Severance (without cause or good reason) | Cash severance equal to 1x highest base salary over prior 3 years; continuation of health/insurance benefits for 1 year; age/service credit under supplemental plans; Ballard’s illustrative table: salary $17,371 (earned); cash severance $376,375; benefits $37,792 |
| Change-of-control (double trigger within 730 days) | Cash severance equal to 2x highest base salary + 2x average profit share over prior 3 years; benefits continuation for 2 years; illustrative Ballard table: salary $17,371; cash severance $1,015,554; benefits $75,585 |
| Equity on CoC | No automatic single-trigger acceleration; awards may be settled/accelerated at Committee discretion if not assumed/replaced; no repricing without shareholder approval |
Performance & Track Record
- Q3 2025 operating performance: ROAA 3.32%, ROAE 35.66%, NIMTE 4.88%; net income $27.1M driven by higher NIM and a $10.9M after-tax gain from an affiliate asset sale; diluted EPS $1.20 .
- Balance sheet strength: total assets $3.31B; deposits $2.91B; portfolio loans $2.22B; CET1 10.26%, Tier 1 10.63% (well-capitalized); tangible common equity to tangible assets 8.12% .
- TSR and pay linkage: 2024 TSR value-of-$100 reached 243 vs peer 115; company-selected pay-for-performance measure is total assets; net income $36.97M in 2024 and total assets $3.04B .
- Say-on-pay: 2024 advisory vote approved at ~94% .
Compensation Structure & Governance Notes
- Peer group and consultant: Compensation benchmarked against 16 peer banks across Pacific Northwest/CA/HI; Frederic W. Cook & Co. engaged; target compensation positioned at peer midpoint .
- Mix and risk controls: Profit Sharing caps; individual profit sharing payment ≤10% of pool; CEO/CFO/COO combined ≤25% of pool; mandatory gates and clawback apply .
- Equity plan discipline: 2023/2025 Stock Incentive Plans prohibit repricing; fungible share ratio (3:1 for full-value awards); no evergreen; dividends/dividend equivalents payable only upon vesting .
Vesting Schedules and Insider Selling Pressure
- Scheduled RSU vestings: 2,902 units on Mar 23, 2026 and 1,856 units on Mar 29, 2027 for Ballard; dividend equivalents accrue but pay only at vest; creates potential liquidity events around those dates .
- Options: All outstanding options are vested and exercisable; expirations range from 2028 to 2031 with strikes $32.09–$42.02; no unvested options reduce near-term forced selling pressure from option vesting .
Risk Indicators & Red Flags
- Hedging prohibited; pledging strongly discouraged—alignment-positive .
- Clawback policy in place since 2023—recoupment of erroneous incentive compensation .
- Related-party transactions ≥$120,000: none in 2024–2022 .
- Equity repricing prohibited without shareholder approval .
- Say-on-pay support high (~94%)—low governance risk signal .
Compensation Committee Analysis
- Committee composition: independent directors; charter updated Mar 5/27, 2025; oversight of profit sharing, SERP, DCP, equity plans, consultant independence .
- Company-selected performance measure for pay-versus-performance disclosure: total assets—reflects size-based peer benchmarking approach .
Investment Implications
- Alignment: Ballard’s incentives tie to ROAA and TSR via PSUs and to profitability/ROAA via profit sharing—direct linkage to shareholder and balance-sheet returns . Clawback, anti-hedging, and no repricing enhance alignment and risk control .
- Retention/pressure: Upcoming RSU vestings (2026/2027) provide retention hooks; severance and double-trigger CoC economics ($1.02M cash severance plus benefits) reduce unplanned departure risk but represent material change-of-control costs .
- Ownership: Beneficial ownership <1% and no executive ownership requirement may dilute “skin-in-the-game”; however, equity awards and exercisable options provide exposure; pledging discouraged mitigates alignment concerns .
- Performance backdrop: Elevated Q3 2025 ROAA/ROAE and improving NIM support incentive attainment probabilities; profit sharing gates and peer-relative PSU design limit windfalls if performance weakens .
Note: All figures and terms are sourced from Northrim BanCorp’s 2025 DEF 14A proxy statement and 2025 8‑K earnings materials; citations are provided inline.