Northrim Bancorp (NRIM) AI Stock Analysis

• Market Cap: $460.99M
• Dividend Yield: 2.98%
• Average Volume (3M): 28.98K
• Price to Earnings (P/E): 11.1
• Beta (1Y): 1.14
• Revenue Growth: 23.96%
• EPS Growth: 47.39%
• Country: US
• Employees: 503
• Sector: Financial
• Sector Strength: 87
• Industry: Banks - Regional
• EPS (TTM): 7.53
• Shares Outstanding: 5,520,892
• 10 Day Avg. Volume: 28,496
• 30 Day Avg. Volume: 28,984
• PEG Ratio: 0.79
• Price to Book (P/B): 1.63
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.20
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $96.50
• Price Target Upside: 15.57% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

Northrim Bancorp demonstrates strong financial performance with solid revenue growth, profitability, and prudent financial management, which significantly supports its stock score. Technical indicators suggest positive momentum, though caution is advised as the stock approaches overbought levels. Valuation metrics are favorable, with a low P/E ratio and attractive dividend yield further enhancing its investment profile.

Northrim Bancorp Business Overview & Revenue Model

Company Description

Northrim BanCorp, Inc. operates as the bank holding company for Northrim Bank that provides commercial banking products and services to businesses and professional individuals. It operates in two segments, Community Banking and Home Mortgage Lending. The company offers noninterest-bearing checking accounts and interest-bearing time deposits, checking and savings accounts, individual retirement and money market deposit accounts, certificates of deposit, and business sweep accounts. It also provides short and medium-term commercial loans, commercial credit lines, construction and real estate loans, and consumer loans, as well as short-term working capital. In addition, the company offers other services comprising consumer and business online banking, mobile app, and mobile deposits; and debit and credit cards. Further, it provides mobile web and text banking, consumer online account opening, personal finance, online documents, consumer debit cards, business debit cards, my rewards for consumer debit cards, retail lockbox, card control, business employee purchase cards, home equity advantage access cards, telebanking, and automated teller services. Additionally, the company offers personalized checks at account opening, overdraft protection from a savings account, commercial drive-up banking, automatic transfer and payment, People Pay, external transfer, Bill Pay, wire transfer, direct payroll deposit, electronic tax payment, Automated Clearing House origination and receipt, remote deposit capture, account reconciliation and positive pay, merchant, cash management, annuity, and long term investment portfolio products and services. It also provides investment advisory, trust, wealth management, factoring, and mortgage brokerage services. As of January 28, 2022, the company operated 17 branches in Anchorage, the Matanuska Valley, Soldotna, Juneau, Fairbanks, Ketchikan, and Sitka. Northrim BanCorp, Inc. was founded in 1990 and is headquartered in Anchorage, Alaska.

How the Company Makes Money

Northrim Bancorp generates revenue primarily through the interest income earned on loans and securities, as well as fee-based income from various banking services. The company's key revenue streams include interest charged on commercial and consumer loans, mortgage origination fees, and service charges on deposit accounts. Additionally, Northrim Bancorp benefits from non-interest income, which includes fees from treasury management services, wealth management, and electronic banking services. The company also invests in securities, which contribute to its interest income. Significant partnerships with local businesses and a strong presence in the Alaskan market are critical factors supporting its earnings.

Northrim Bancorp Financial Statement Overview

Summary

Northrim Bancorp exhibits a strong overall financial performance with robust revenue and profit growth, low leverage, and solid equity ratios. While there are areas to monitor, such as EBIT margin contraction and negative free cash flow growth, the company's financial health appears stable and well-managed, positioning it favorably within the regional banking sector.

Income Statement

Northrim Bancorp has demonstrated solid revenue growth with a TTM increase from $155.2 million to $168.9 million, indicating a positive trajectory. The gross profit margin remains strong at approximately 94.4% for TTM. The net profit margin is healthy at 24.9% TTM, showing profitability. However, there is a slight contraction in EBIT margin from 27.1% in the previous year to 30.2% TTM, which should be monitored.

Balance Sheet

The company's balance sheet reflects financial stability with a low debt-to-equity ratio of 0.03, indicating conservative leverage. The equity ratio is robust at 8.9% TTM, showing a solid equity base. Return on Equity (ROE) has improved to 15.1% TTM, showcasing effective use of equity. Overall, the balance sheet demonstrates financial prudence and strength.

Cash Flow

Northrim Bancorp's cash flow performance is mixed. The operating cash flow to net income ratio is strong at 1.32 TTM, indicating efficient cash generation. The free cash flow to net income ratio is commendable at 1.33. However, the negative free cash flow growth compared to the previous year is a concern. Despite this, the company maintains a healthy cash flow position.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
168.95M	155.22M	125.79M	129.19M	133.09M	133.99M
	Gross Profit
159.53M	155.22M	125.79M	129.19M	133.09M	133.99M
	EBIT
51.07M	42.04M	26.38M	48.01M	47.99M	42.45M
	EBITDA
26.81M	0.00	0.00	42.82M	52.47M	46.75M
	Net Income Common Stockholders
42.10M	36.97M	25.39M	30.74M	37.52M	32.89M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
38.34M	520.72M	118.13M	936.38M	1.07B	363.60M
	Total Assets
3.14B	3.04B	2.81B	2.67B	2.72B	2.12B
	Total Debt
31.13M	40.84M	33.08M	34.27M	35.78M	37.51M
	Net Debt
-34.40M	-21.89M	-85.45M	-225.08M	-610.04M	-78.46M
	Total Liabilities
2.86B	2.77B	2.57B	2.45B	35.78M	37.51M
	Stockholders Equity
279.76M	267.12M	234.72M	218.63M	237.82M	221.57M
Cash Flow		Free Cash Flow
55.68M	-9.35M	32.61M	74.28M	109.48M	-39.72M
	Operating Cash Flow
55.47M	-8.73M	38.92M	78.12M	111.99M	-36.45M
	Investing Cash Flow
-360.43M	-197.63M	-255.07M	-405.63M	-159.09M	-382.82M
	Financing Cash Flow
290.12M	150.56M	75.33M	-58.98M	576.96M	439.82M

Northrim Bancorp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 83.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NRIM, the sentiment is Positive. The current price of 83.5 is above the 20-day moving average (MA) of 77.65, above the 50-day MA of 75.24, and above the 200-day MA of 74.02, indicating a bullish trend. The MACD of 2.72 indicates Negative momentum. The RSI at 69.52 is Neutral, neither overbought nor oversold. The STOCH value of 83.88 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NRIM.

Northrim Bancorp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FBIZ	78 Outperform	$402.63M	8.85	14.36%	2.19%	12.02%	26.09%
NRIM	77 Outperform	$460.99M	11.09	16.22%	2.98%	23.96%	47.39%
COFS	73 Outperform	$434.43M	23.98	2.27%	3.79%	24.39%	-56.37%
GCBC	69 Neutral	$381.91M	13.38	13.33%	1.56%	14.44%	16.49%
TCBX	68 Neutral	$428.42M	11.59	11.27%	―	15.07%	53.76%
Sector *	64 Neutral	$12.60B	9.73	7.92%	16985.68%	12.21%	-5.61%
FFIC	48 Neutral	$430.66M	16.43	-6.53%	6.90%	-5.55%	-242.78%

Northrim Bancorp Corporate Events

Northrim Bancorp Announces Executive Employment Agreements

Northrim BanCorp, Inc. announced new employment agreements for its key executives effective January 1, 2025, with minor amendments. Notable changes include salary increases for Jed W. Ballard and Amber Zins, and the introduction of Mark Edwards as Executive Vice President, Chief Credit Officer, and Bank Economist with specific terms regarding salary, benefits, and conditions upon termination or a change of control.