Northrim Bancorp (NRIM) AI Stock Analysis

• Market Cap: $605.28M
• Dividend Yield: 2.34%
• Average Volume (3M): 119.89K
• Price to Earnings (P/E): 9.8
• Beta (1Y): 0.96
• Revenue Growth: 36.60%
• EPS Growth: 92.63%
• Country: US
• Employees: 503
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.72
• Shares Outstanding: 22,090,668
• 10 Day Avg. Volume: 173,659
• 30 Day Avg. Volume: 119,890
• 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: 0.79
• Enterprise Value/Revenue: 2.02
• Enterprise Value/Gross Profit: 2.52
• Enterprise Value/Ebitda: 5.65
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 2.42
• Revenue Forecast (FY): $198.10M

• Rating: 81 Outperform
• Price Target: $29.00 ▲(15.77% 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

Revenue Growth

Consistent revenue growth indicates strong market position and effective business strategies, supporting long-term financial stability.

Cash Generation

Strong cash generation enhances financial flexibility, allowing for reinvestment in growth opportunities and shareholder returns.

Capital Structure

Strengthened capital structure supports expansion plans and enhances financial stability, positioning the company for future growth.

Negative Factors

Growth Opportunities

While low leverage indicates financial prudence, it may limit growth opportunities that could be financed through additional debt.

Profit Margin

Low gross profit margin, typical in banking, may limit profitability compared to other industries, affecting long-term earnings potential.

Industry Dependence

Dependence on regional economic conditions, like the oil and gas sector, could impact financial stability if these industries face downturns.

Northrim Bancorp Business Overview & Revenue Model

Company Description

Northrim Bancorp (NRIM) is a financial holding company based in Alaska that primarily operates through its wholly-owned subsidiary, Northrim Bank. The company offers a range of banking services including commercial banking, residential mortgages, and consumer loans. Northrim Bancorp also provides treasury management, investment services, and wealth management solutions, catering mainly to individuals, businesses, and governmental entities in Alaska. With a strong focus on community engagement, the bank plays a crucial role in the local economy by supporting various sectors such as tourism, construction, and natural resources.

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 shows strong financial health with consistent revenue growth, robust profitability, and improved cash flow generation. The balance sheet remains stable, though increasing debt levels warrant attention.

Income Statement

Northrim Bancorp has demonstrated strong revenue growth with a 7.19% increase in TTM, indicating a positive trajectory. The company maintains healthy profitability with a gross profit margin of 79.07% and a net profit margin of 20.13% in TTM. EBIT and EBITDA margins are also robust at 26.15% and 27.56% respectively, showcasing efficient operations. However, the slight decrease in gross profit margin from previous years suggests potential cost pressures.

Balance Sheet

The balance sheet reflects a stable financial position with a manageable debt-to-equity ratio of 0.28 in TTM, indicating moderate leverage. Return on equity is strong at 16.35%, highlighting effective use of equity to generate profits. The equity ratio stands at a solid 8.95%, suggesting a sound capital structure. However, the increase in debt levels over the years could pose a risk if not managed carefully.

Cash Flow

Cash flow analysis reveals significant improvement with a free cash flow growth rate of 263.56% in TTM, indicating enhanced cash generation capabilities. The operating cash flow to net income ratio of 6.70 and free cash flow to net income ratio of 1.01 reflect strong cash conversion efficiency. Despite past fluctuations, the recent positive trend in cash flow metrics is encouraging.

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: Positive
• Last Price: 25.05
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 25.05 is below the 20-day moving average (MA) of 25.35, above the 50-day MA of 23.33, and above the 200-day MA of 21.68, indicating a bullish trend. The MACD of 1.15 indicates Negative momentum. The RSI at 70.22 is Negative, neither overbought nor oversold. The STOCH value of 81.77 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
NRIM	81 Outperform	$605.28M	9.75	21.92%	2.34%	36.60%	92.63%
UNTY	80 Outperform	$557.09M	10.51	17.46%	1.05%	11.38%	36.10%
AROW	78 Outperform	$544.41M	15.92	8.49%	3.44%	6.86%	6.11%
PGC	76 Outperform	$523.58M	15.39	5.50%	0.67%	9.16%	6.95%
NFBK	72 Outperform	$509.25M	12.49	5.56%	4.22%	6.08%	52.64%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
PFIS	63 Neutral	$522.92M	9.88	10.83%	4.72%	39.98%	413.87%

Northrim Bancorp Corporate Events

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.

Northrim Bancorp Announces 4-for-1 Stock Split

On August 22, 2025, Northrim BanCorp, Inc. announced a 4-for-1 forward stock split, which was approved by its Board of Directors. The stock split, effective September 18, 2025, increased the number of authorized shares from 10 million to 40 million and decreased the par value of each share from $1.00 to $0.25. Shareholders of record as of September 18, 2025, will receive three additional shares for each share held, with trading on a split-adjusted basis beginning on September 23, 2025.