Northrim Bancorp (NRIM) AI Stock Analysis

• Market Cap: $520.46M
• Dividend Yield: 2.31%
• Average Volume (3M): 184.73K
• Price to Earnings (P/E): 8.2
• Beta (1Y): 0.98
• 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: 286,998
• 30 Day Avg. Volume: 184,728
• PEG Ratio: 0.24
• Price to Book (P/B): 1.61
• Price to Sales (P/S): 2.19
• P/FCF Ratio: -45.92
• Enterprise Value/Market Cap: 1.11
• Enterprise Value/Revenue: 2.46
• Enterprise Value/Gross Profit: 3.07
• Enterprise Value/Ebitda: 6.86
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 2.6
• Revenue Forecast (FY): $225.50M

• Rating: 81 Outperform
• Price Target: $34.00 ▲(20.65% Upside)

Northrim Bancorp's strong financial performance, positive technical indicators, and strategic corporate events contribute to a robust overall stock score. The company's solid financial health and strategic initiatives position it well for future growth, while its valuation metrics suggest it is attractively priced.

Positive Factors

High return on equity

A 21.89% ROE signals durable profitability and efficient use of equity capital. High ROE supports reinvestment, dividend capacity, and ability to absorb loan losses, underpinning long-term shareholder returns and competitive positioning in regional banking.

Completed $60M capital raise

Issuing $60M of Tier 2 capital strengthens regulatory capital and provides headroom for loan growth and strategic initiatives. This structural increase in capital enhances balance sheet flexibility, enabling sustainable expansion without diluting core equity or compromising regulatory ratios.

Very strong cash generation

Exceptional free cash flow growth and high operating cash flow conversion indicate durable cash generation. Strong cash conversion supports funding lending, dividends, and capital needs internally, reducing reliance on volatile external funding over the medium term.

Negative Factors

Concentrated Alaska exposure

Heavy geographic concentration in Alaska and sensitivity to oil, tourism and construction cycles increases credit and revenue cyclicality. Limited geographic diversification raises the risk that regional economic downturns produce correlated loan losses and slower long-term growth.

Rising structural personnel costs

Material increases in executive base pay and employer-funded deferred compensation convert variable costs into higher fixed expenses. Over time, this raises the bank's operating leverage and could pressure net margins if revenue growth moderates, especially for a regional franchise.

High-cost subordinated funding

Issuing subordinated notes at a near-7% coupon raises long-term funding costs. Unless asset yields or net interest margins rise sustainably, this higher-cost Tier 2 debt can compress net interest income and reduce earnings resilience across economic cycles.

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

Northrim Bancorp exhibits strong financial health with robust profitability, efficient operations, and a solid balance sheet. The company has demonstrated consistent revenue and cash flow growth, supported by low leverage and high returns on equity. While the gross profit margin appears low, it is typical for the banking industry.

Income Statement

Northrim Bancorp shows strong profitability with a high net profit margin of 33.71% in the TTM period. The company has demonstrated consistent revenue growth, with a notable increase of 5.38% in the latest period. EBIT and EBITDA margins are robust, indicating efficient operations. However, the gross profit margin appears low due to the nature of the banking industry where interest expenses are not included in gross profit calculations.

Balance Sheet

The balance sheet reflects a solid financial position with a low debt-to-equity ratio of 0.02, indicating minimal leverage. Return on equity is strong at 21.89%, showcasing effective use of equity to generate profits. The equity ratio is healthy, suggesting a stable capital structure. However, the relatively low total debt might limit growth opportunities through leverage.

Cash Flow

Cash flow analysis reveals a significant improvement, with free cash flow growth of 188.82% in the TTM period. The operating cash flow to net income ratio is high at 7.26, indicating strong cash generation relative to net income. The free cash flow to net income ratio is slightly above 1, suggesting efficient conversion of earnings into cash flow. The company has effectively managed its cash flows, enhancing financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	235.03M	195.96M	158.33M	134.41M	136.87M	140.04M
Gross Profit	188.49M	151.93M	125.79M	127.35M	137.19M	131.56M
EBITDA	84.25M	50.60M	34.92M	41.66M	52.47M	46.75M
Net Income	63.09M	36.97M	25.39M	30.74M	37.52M	32.89M
Balance Sheet
Total Assets	3.31B	3.04B	2.81B	2.67B	2.72B	2.12B
Cash, Cash Equivalents and Short-Term Investments	631.87M	541.35M	756.47M	936.38M	1.07B	363.60M
Total Debt	29.79M	40.84M	33.08M	34.27M	35.78M	37.51M
Total Liabilities	3.00B	2.77B	2.57B	2.46B	2.49B	1.90B
Stockholders Equity	315.66M	267.12M	234.72M	218.63M	237.82M	221.57M
Cash Flow
Free Cash Flow	138.09M	-9.35M	32.61M	74.28M	109.48M	-39.72M
Operating Cash Flow	140.31M	-8.73M	38.92M	78.12M	111.99M	-36.45M
Investing Cash Flow	-257.31M	-197.63M	-254.92M	-405.57M	-159.09M	-382.82M
Financing Cash Flow	226.82M	150.56M	75.33M	-58.98M	576.96M	439.82M

Northrim Bancorp Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 28.18
• 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 28.18 is above the 20-day moving average (MA) of 26.76, above the 50-day MA of 26.13, and above the 200-day MA of 22.87, indicating a neutral trend. The MACD of -0.80 indicates Positive momentum. The RSI at 36.17 is Neutral, neither overbought nor oversold. The STOCH value of 8.18 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
NRIM	81 Outperform	$520.46M	8.21	21.77%	2.31%	36.60%	92.63%
UNTY	80 Outperform	$541.73M	9.52	18.08%	1.08%	11.38%	36.10%
AROW	75 Outperform	$555.92M	12.76	8.49%	3.59%	6.86%	6.11%
PGC	73 Outperform	$556.94M	15.10	5.50%	0.70%	9.16%	6.95%
PFIS	69 Neutral	$520.72M	8.86	10.83%	4.97%	39.98%	413.87%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
NFBK	65 Neutral	$515.11M	12.63	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.

Northrim Bancorp Completes $60 Million Private Placement

On November 26, 2025, Northrim BanCorp, Inc. announced the completion of a $60 million private placement of 6.875% Fixed-to-Floating Rate Subordinated Notes due 2035. The proceeds are intended for general corporate purposes and to support regulatory capital ratios for growth initiatives. The notes, which qualify as Tier 2 capital, were sold to qualified institutional buyers and institutional accredited investors, with Keefe, Bruyette & Woods and Hovde Group acting as placement agents. This strategic financial move is expected to bolster Northrim’s capital structure and support its expansion plans.

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.