Northrim Bancorp (NRIM) AI Stock Analysis

• Market Cap: $395.42M
• Dividend Yield: 3.42%
• Average Volume (3M): 46.65K
• Price to Earnings (P/E): 10.8
• Beta (1Y): 1.25
• Revenue Growth: 22.97%
• EPS Growth: 47.91%
• Country: US
• Employees: 472
• Sector: Financial
• Sector Strength: 77
• Industry: Banking
• EPS (TTM): 6.63
• Shares Outstanding: 5,501,943
• 10 Day Avg. Volume: 31,881
• 30 Day Avg. Volume: 46,649
• PEG Ratio: 0.23
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.61
• Price to Cash Flow (P/CF): 2.80
• P/FCF Ratio: 2.20
• 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: 32.39% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

Northrim Bancorp's overall stock score reflects a company dealing with significant revenue and cash flow challenges, despite a strong equity position and a manageable debt profile. The technical analysis indicates bearish momentum, and although the valuation metrics offer some appeal, the underlying financial and market conditions suggest caution. Investors should be aware of the potential risks posed by the recent financial inconsistencies and market trends.

Northrim Bancorp Business Overview & Revenue Model

Company Description

Northrim Bancorp, Inc. operates as a bank holding company, which provides personal, business, and commercial banking products and services. It operates through two segments: Community Banking and Home Mortgage Lending. The Community Banking segment offers loan and deposit products to business and consumer customers in the company's primary market areas. The Home Mortgage Lending segment focuses on the origination and sale of mortgage loans for 1-4 family residential properties. Northrim Bancorp was founded on December 4, 1990 and is headquartered in Anchorage, AK.

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 demonstrates solid financial health with strong revenue growth and profitability, complemented by a stable balance sheet with low leverage. However, there are potential risks due to declining operational efficiency and volatility in cash flow generation.

Income Statement

The income statement shows strong profitability with a high gross profit margin of 89.4% and a net profit margin of 19.8% for TTM (Trailing-Twelve-Months). Revenue growth rate was notable at 30.99% from the previous year, indicating a robust growth trajectory. However, the EBIT margin has decreased compared to previous years, indicating increased operational costs. Despite this, the company maintains solid profitability metrics.

Balance Sheet

The balance sheet reflects a stable financial position with a low debt-to-equity ratio of 0.12, suggesting low leverage. Return on equity is strong at 12.56% for TTM, indicating efficient use of equity. The equity ratio stands at 8.77%, showing a relatively low proportion of equity to total assets, which could be a potential risk if liabilities increase.

Cash Flow

Cash flow analysis indicates a challenging year with a decline in operating cash flow compared to previous periods. The free cash flow to net income ratio is 0.55, suggesting moderate cash conversion from earnings. While the company has managed to sustain free cash flow, the operating cash flow to net income ratio of 0.63 reflects potential volatility in cash generation.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
164.75M	125.79M	129.19M	133.09M	133.99M	101.79M
	Gross Profit
147.25M	125.79M	129.19M	133.09M	133.99M	101.79M
	EBIT
41.21M	26.38M	48.01M	47.99M	42.45M	26.13M
	EBITDA
22.11M	0.00	42.82M	52.47M	46.75M	30.19M
	Net Income Common Stockholders
32.66M	25.39M	30.74M	37.52M	32.89M	20.69M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
349.15M	118.13M	936.38M	1.07B	363.60M	371.56M
	Total Assets
1.50B	2.81B	2.67B	2.72B	2.12B	1.64B
	Total Debt
17.55M	33.08M	34.27M	35.78M	37.51M	33.43M
	Net Debt
-59.99M	-85.45M	-225.08M	-610.04M	-78.46M	-61.99M
	Total Liabilities
1.30B	2.57B	2.45B	35.78M	37.51M	33.43M
	Stockholders Equity
205.95M	234.72M	218.63M	237.82M	221.57M	207.12M
Cash Flow		Free Cash Flow
17.99M	32.61M	74.28M	109.48M	-39.72M	-3.86M
	Operating Cash Flow
20.74M	38.92M	78.12M	111.99M	-36.45M	-821.00K
	Investing Cash Flow
-159.99M	-255.07M	-405.63M	-159.09M	-382.82M	-71.92M
	Financing Cash Flow
130.90M	75.33M	-58.98M	576.96M	439.82M	90.63M

Northrim Bancorp Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 72.89
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 72.89 is below the 20-day moving average (MA) of 79.75, below the 50-day MA of 79.95, and above the 200-day MA of 70.08, indicating a neutral trend. The MACD of -2.47 indicates Positive momentum. The RSI at 31.95 is Neutral, neither overbought nor oversold. The STOCH value of 8.91 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NRIM.

Northrim Bancorp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HFWA	72 Outperform	$795.73M	19.09	5.04%	3.93%	4.64%	-28.68%
CASY	70 Outperform	$14.06B	26.60	17.16%	0.51%	2.60%	11.03%
BOH	68 Neutral	$2.68B	19.46	9.73%	4.16%	4.63%	-16.29%
Sector *	64 Neutral	$13.79B	10.52	9.20%	4.24%	17.25%	-7.60%
FIBK	63 Neutral	$2.90B	12.70	6.92%	6.77%	3.61%	-11.55%
WASH	54 Neutral	$562.09M	12.16	-5.77%	7.68%	-14.04%	-155.40%
NRIM	52 Neutral	$395.42M	10.84	14.73%	3.42%	22.97%	47.91%

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.