Northrim Bancorp (NRIM) AI Stock Analysis

• Market Cap: $523.99M
• Dividend Yield: 2.31%
• Average Volume (3M): 209.48K
• Price to Earnings (P/E): 9.1
• Beta (1Y): 1.05
• Revenue Growth: 36.60%
• EPS Growth: 92.63%
• Country: US
• Employees: 503
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.54
• Shares Outstanding: 22,090,668
• 10 Day Avg. Volume: 160,222
• 30 Day Avg. Volume: 209,479
• PEG Ratio: 0.12
• Price to Book (P/B): 1.80
• Price to Sales (P/S): 2.42
• P/FCF Ratio: 4.22
• Enterprise Value/Market Cap: 1.08
• Enterprise Value/Revenue: 2.33
• Enterprise Value/Gross Profit: 2.87
• Enterprise Value/Ebitda: 6.37
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 2.59
• Revenue Forecast (FY): $225.50M

• Rating: 67 Neutral
• Price Target: $25.00 ▼(-11.28% Downside)
• Action: Downgraded Date: 03/07/26
• Date: Action: Downgraded 03/07/26

The score is primarily supported by strong recent financial performance and favorable valuation (low P/E with a decent dividend). It is held back by weak technicals, with the stock trading below key moving averages and negative MACD, suggesting near-term momentum remains unfavorable.

Positive Factors

Revenue & Margin Expansion

Sustained revenue acceleration and meaningful margin expansion indicate the bank's core lending and investment yields are translating into stronger, more predictable earnings. That improves internal cash generation capacity and provides durable support for reinvestment, credit absorption, and medium‑term profitability.

Improving Return on Equity & Capital Base

Rising ROE alongside an expanding equity base shows efficient capital deployment and improving profitability per dollar of capital. This enhances the bank's loss-absorbing capacity, supports strategic initiatives and shareholder returns, and gives management more flexibility to fund growth or withstand shocks over the coming months.

Leadership Continuity & Incentive Alignment

Formalized executive contracts, CEO assuming the chairman role, and updated incentive and retention provisions institutionalize leadership continuity and align management pay with company performance. This reduces execution risk on strategic priorities and supports stable governance over a multi‑quarter horizon.

Negative Factors

Rising Leverage Pace

The notable increase in leverage over a single year reduces the bank's financial flexibility and can magnify earnings volatility if credit costs or funding rates rise. In an adverse credit or funding environment, higher leverage may pressure capital ratios and limit the firm's ability to absorb losses without raising capital or cutting dividends.

Volatile Cash Generation

Multi-year variability in operating and free cash flow undermines predictability of internal funding and increases reliance on external financing during downturns. That unpredictability raises execution risk for growth plans, capital returns and provisioning, and can force reactive balance‑sheet moves under stress.

Earnings Sensitivity & Regional Concentration

Income volatility and explicit sensitivity to interest‑rate and credit cycles, combined with a community bank franchise concentrated in Alaska, mean external macro or sector shocks can materially swing revenue and credit performance. This concentration raises structural cyclicality risk to earnings and capital.

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 interest income from loans and interest-earning assets. The bank's core revenue streams include interest from commercial and residential loans, which are a significant portion of their lending operations. Additionally, Northrim Bancorp earns fee income from various banking services such as account maintenance fees, transaction fees, and service charges. The bank also generates income through its investment portfolio, which includes securities and other financial instruments. Key partnerships with local businesses and community organizations further enhance its revenue by facilitating loan growth and increasing customer deposits. Economic factors specific to Alaska, such as the performance of the oil and gas industry, also play a significant role in influencing the bank's financial performance.

Northrim Bancorp Financial Statement Overview

Summary

Strong recent improvement in revenue and profitability (notably higher net and EBIT margins) and better ROE, but tempered by rising leverage in the latest year and multi-year cash-flow volatility despite a strong 2025 rebound.

Income Statement

Revenue has re-accelerated strongly (up from $158.3M in 2023 to $242.5M in 2025), and profitability improved meaningfully with net margin expanding from ~16.0% (2023) to ~26.6% (2025). Operating profitability is also solid (EBIT margin ~35.5% in 2025 vs ~24.0% in 2024). The main weakness is some historical choppiness, including modest revenue declines in 2021–2022 and unusually high/variable gross margin levels across years, which suggests earnings sensitivity to the rate/credit cycle.

Balance Sheet

Leverage appears moderate with debt-to-equity at ~0.29 in 2025 (up from ~0.15 in 2024), while equity has grown to $326.5M alongside a larger asset base. Returns on equity are strong and improving (about 19.8% in 2025 vs 13.8% in 2024), indicating good profitability relative to capital. The key watch-out is the pace of leverage increase in the latest year, which can reduce flexibility if credit quality or funding costs move against the bank.

Cash Flow

Cash generation is improving in the most recent year, with operating cash flow rebounding to $139.3M in 2025 versus negative in 2024, and free cash flow also strongly positive in 2025. However, cash flow has been volatile over time (negative operating/free cash flow in 2020 and 2024), which increases uncertainty around the consistency of internal funding. Overall, the latest year is a clear strength, but the multi-year variability keeps the score in the mid-range.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	242.53M	195.96M	158.33M	134.41M	136.87M
Gross Profit	197.48M	151.93M	125.79M	127.35M	137.19M
EBITDA	88.81M	50.60M	34.92M	41.66M	52.47M
Net Income	64.61M	36.97M	25.39M	30.74M	37.52M
Balance Sheet
Total Assets	3.29B	3.04B	2.81B	2.67B	2.72B
Cash, Cash Equivalents and Short-Term Investments	456.70M	541.35M	756.47M	936.38M	1.07B
Total Debt	93.61M	40.84M	33.08M	34.27M	35.78M
Total Liabilities	2.96B	2.77B	2.57B	2.46B	2.49B
Stockholders Equity	326.54M	267.12M	234.72M	218.63M	237.82M
Cash Flow
Free Cash Flow	139.34M	-9.35M	32.61M	74.28M	109.48M
Operating Cash Flow	139.34M	-8.73M	38.92M	78.12M	111.99M
Investing Cash Flow	-223.43M	-197.63M	-254.92M	-405.57M	-159.09M
Financing Cash Flow	167.26M	150.56M	75.33M	-58.98M	576.96M

Northrim Bancorp Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 28.18
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 28.18 is above the 20-day moving average (MA) of 24.65, above the 50-day MA of 25.72, and above the 200-day MA of 23.32, indicating a bearish trend. The MACD of -0.55 indicates Positive momentum. The RSI at 36.54 is Neutral, neither overbought nor oversold. The STOCH value of 32.09 is Neutral, 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
PGC	73 Outperform	$596.97M	13.10	5.50%	0.70%	9.16%	6.95%
UNTY	71 Outperform	$522.36M	8.36	18.08%	1.08%	11.38%	36.10%
PFIS	69 Neutral	$534.81M	10.16	10.83%	4.97%	39.98%	413.87%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
NRIM	67 Neutral	$523.99M	9.10	21.77%	2.31%	36.60%	92.63%
AROW	66 Neutral	$542.44M	11.79	8.49%	3.59%	6.86%	6.11%
NFBK	49 Neutral	$558.38M	576.05	5.56%	4.38%	6.08%	52.64%

Northrim Bancorp Corporate Events

Northrim Bancorp updates executive roles and compensation agreements

Effective January 1, 2026, Northrim Bancorp, Inc. and Northrim Bank implemented new employment agreements for key executives that largely preserve prior terms while adjusting roles, base salaries, and retirement-related benefits. Chairman, President and CEO Michael G. Huston assumed the additional role of Chairman of both the company and the bank, received a base salary increase to $630,000, and, like fellow executives Jed W. Ballard, Mark Edwards, and Amber Zins, shifted from eligibility in supplemental executive retirement and deferred compensation plans to receiving specified employer contributions to a non-qualified deferred compensation plan tied to their increased base salaries. On the same date, the bank also entered into a new employment agreement with Jason Criqui as Executive Vice President and Chief Banking Officer, providing for an initial term through December 31, 2026 with automatic one-year renewals, a base salary of $307,400, participation in profit sharing and stock incentive plans, standard employee benefits, and detailed change-of-control and severance protections that include salary and profit-sharing multiples, continued health and dental coverage, and standard restrictive covenants, signaling an effort to formalize and retain senior leadership under updated compensation structures.

The most recent analyst rating on (NRIM) stock is a Buy with a $29.00 price target. To see the full list of analyst forecasts on Northrim Bancorp stock, see the NRIM Stock Forecast page.