Northrim Bancorp (NRIM) AI Stock Analysis

Northrim Bancorp

(NASDAQ:NRIM)

Select Model

Rating:66Neutral

Price Target:$26.00▲(9.01% Upside)

Action:downgraded

Date:10/31/26

NRIM’s score is driven primarily by solid underlying financial performance (revenue growth, profitability, and reasonable leverage), supported by attractive valuation (low P/E and a ~2.7% dividend yield). These positives are offset by weak technical momentum (trading below key moving averages with negative MACD) and event-driven risk from the recent impairment and elevated credit-loss provisioning, despite progress on the PBCO acquisition.

Positive Factors

Multi-year revenue growthThe substantial increase in revenue across several years indicates sustained expansion of Northrim’s banking activity rather than reliance on a single reporting period. Continued top-line growth can support reinvestment, broaden the customer base, and strengthen earnings capacity over the next several quarters.

Negative Factors

Specialty-finance impairmentThe impairment shows that specialty-finance exposures can create material earnings volatility when collateral values and expected recoveries deteriorate. Recovery timing remains uncertain, so this event could continue weighing on results and highlights concentration risk within an otherwise broader banking platform.

Northrim Bancorp (NRIM) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $530.54M
Dividend Yield: 2.73%
Average Volume (3M): 137.76K
Price to Earnings (P/E): 9.5
Beta (1Y): 0.84
Revenue Growth: 2.77%
EPS Growth: -11.91%
Country: US
Employees: 516
Sector: Financial
Sector Strength: 68
Industry: Banks - Regional

Northrim Bancorp Business Overview & Revenue Model

Company Description

Northrim BanCorp, Inc. functions as the parent entity for Northrim Bank, which delivers a comprehensive range of commercial banking products and services primarily to businesses and professional clients. Its operations are divided into two main divis...

How the Company Makes Money

Northrim Bancorp primarily makes money through its banking subsidiary by earning (1) net interest income and (2) noninterest income. Net interest income is generated from the spread between interest earned on interest-earning assets—most notably loan...

Northrim Bancorp Financial Statement Overview

Summary

Strong multi-year revenue growth and attractive returns on equity support a solid fundamental profile, but the recent step-down in profitability (2025 to TTM) and cash-flow volatility (including negative OCF/FCF in 2024 and sharply lower TTM FCF growth) temper the score.

Income Statement

74Positive

Balance Sheet

78Positive

Cash Flow

60Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	255.90M	242.53M	195.96M	158.33M	134.41M	136.87M
Gross Profit	204.40M	197.48M	151.93M	125.79M	127.35M	137.19M
EBITDA	78.35M	89.68M	50.60M	34.92M	41.66M	52.47M
Net Income	55.87M	64.61M	36.97M	25.39M	30.74M	37.52M
Balance Sheet
Total Assets	3.58B	3.29B	3.04B	2.81B	2.67B	2.72B
Cash, Cash Equivalents and Short-Term Investments	725.41M	343.94M	541.35M	756.47M	936.38M	1.07B
Total Debt	93.64M	87.67M	40.84M	33.08M	34.27M	35.78M
Total Liabilities	3.22B	2.96B	2.77B	2.57B	2.46B	2.49B
Stockholders Equity	356.11M	326.54M	267.12M	234.72M	218.63M	237.82M
Cash Flow
Free Cash Flow	85.83M	133.87M	-9.35M	32.61M	74.28M	109.48M
Operating Cash Flow	88.05M	139.34M	-8.73M	38.92M	78.12M	111.99M
Investing Cash Flow	-248.13M	-223.43M	-197.63M	-254.92M	-405.57M	-159.09M
Financing Cash Flow	189.22M	167.26M	150.56M	75.33M	-58.98M	576.96M

Northrim Bancorp Technical Analysis

Technical Analysis SentimentNegative

Last Price23.85

Price Trends

50DMA24.85Negative

100DMA25.73Negative

200DMA24.88Negative

Market Momentum

MACD-0.29Negative

RSI43.72Neutral

STOCH62.68Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NRIM, the sentiment is Negative. The current price of 23.85 is below the 20-day moving average (MA) of 24.08, below the 50-day MA of 24.85, and below the 200-day MA of 24.88, indicating a bearish trend. The MACD of -0.29 indicates Negative momentum. The RSI at 43.72 is Neutral, neither overbought nor oversold. The STOCH value of 62.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NRIM.

Northrim Bancorp Risk Analysis

Northrim Bancorp disclosed 9 risk factors in its most recent earnings report. Northrim Bancorp reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added

3 New Risks

1.Shareholder litigation related to the Mergers could prevent or delay the completion of the Mergers, result in the payment of damages or otherwise negatively impact the business and operations of Northrim.Q2, 2026

2.The Merger Agreement limits Northrim's ability to pursue acquisition proposals.Q2, 2026

3.Northrim will be subject to business uncertainties and contractual restrictions while the Mergers are pending.Q2, 2026

Northrim Bancorp Peers Comparison

Overall Rating

UnderperformOutperform

Sector (68)

Financial Indicators

NRIM against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BSRR	82Outperform	$543.29M	10.74	13.89%	2.48%	-1.49%	34.62%
PLBC	81Outperform	$438.77M	10.42	15.86%	2.05%	24.22%	39.38%
BSVN	80Outperform	$558.50M	13.48	15.74%	1.89%	-1.46%	-5.48%
WCCB	80Outperform	$665.52M	11.40	14.73%	1.49%	5.91%	44.03%
TSBK	79Outperform	$364.06M	11.68	11.72%	2.48%	3.87%	8.03%
Sector *	68Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
NRIM	66Neutral	$530.54M	9.46	16.36%	2.73%	2.77%	-11.91%

* Financial Sector Average

Performance Comparison

NRIM and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
NRIM	Northrim	23.85	2.26	10.49%
PLBC	Plumas	63.05	23.13	57.96%
BSRR	Sierra Bancorp	41.90	14.02	50.30%
TSBK	Timberland	46.82	15.31	48.60%
BSVN	Bank7 Corp.	58.63	18.03	44.42%
WCCB	West Coast Community Bancorp	63.30	22.92	56.76%

Northrim Bancorp Corporate Events

Business Operations and StrategyM&A TransactionsShareholder Meetings

Northrim Shareholders Approve Acquisition of PBCO Financial

Positive

Oct 22, 2026

On October 20, 2026, Northrim BanCorp held a virtual special meeting at which shareholders approved the issuance of Northrim common stock as consideration for the planned acquisition of PBCO Financial Corporation, with 72% of eligible shares represen...

Business Operations and StrategyFinancial DisclosuresM&A Transactions

Northrim Bancorp Reports Lower Earnings Amid Impairment

Negative

Oct 15, 2026

On October 15, 2026, Northrim BanCorp reported third-quarter 2026 net income of $14.4 million, or $0.63 per diluted share, down from $27.1 million, or $1.20 per share, a year earlier, largely due to a higher provision for credit losses tied to a sing...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Oct 31, 2026

Northrim Bancorp AI Stock Analysis