Northrim Bancorp (NRIM) AI Stock Analysis

• Market Cap: $445.32M
• Dividend Yield: 3.1%
• Average Volume (3M): 29.50K
• Price to Earnings (P/E): 10.7
• Beta (1Y): 1.11
• Revenue Growth: 23.96%
• EPS Growth: 47.39%
• Country: US
• Employees: 503
• Sector: Financial
• Sector Strength: 88
• Industry: Banks - Regional
• EPS (TTM): 7.53
• Shares Outstanding: 5,520,892
• 10 Day Avg. Volume: 29,378
• 30 Day Avg. Volume: 29,501
• PEG Ratio: 0.23
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.93
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 2.65
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $96.50
• Price Target Upside: 19.64% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

Northrim Bancorp demonstrates strong financial performance with solid revenue growth, profitability, and prudent financial management, which significantly supports its stock score. Technical indicators suggest positive momentum, though caution is advised as the stock approaches overbought levels. Valuation metrics are favorable, with a low P/E ratio and attractive dividend yield further enhancing its investment profile.

Northrim Bancorp Business Overview & Revenue Model

Company Description

Northrim Bancorp, Inc. (NRIM) is a bank holding company headquartered in Anchorage, Alaska. It operates through its primary subsidiary, Northrim Bank, offering a wide range of banking products and services. These include commercial and consumer banking, mortgage origination, and wealth management services. Northrim Bank focuses on providing personalized financial solutions to small and medium-sized businesses, professionals, and individual customers in Alaska and the Pacific Northwest region.

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 mixed financial health with a solid equity base and manageable debt but faces challenges in revenue generation and cash flow consistency. The sudden zero revenue in 2024 is concerning and warrants investigation. While profitability remains positive, the volatility in cash flows and the declining trend in cash reserves necessitates strategic review to ensure long-term sustainability and growth.

Income Statement

The income statement reveals a challenging year with total revenue dropping to zero in 2024, indicating potential operational issues or reporting anomalies. Previous years displayed declining revenue trends, with notable revenue growth between 2019 and 2020, but subsequent years show a downward trajectory. Despite this, EBIT and net income were positive in 2024, suggesting some cost control or other income sources. However, the lack of revenue data for 2024 clouds profitability analysis.

Balance Sheet

The balance sheet shows a strong equity position with a low debt-to-equity ratio, indicating financial stability. The equity ratio remains healthy, suggesting a robust capital base. However, the declining cash and cash equivalents over the years may pose liquidity challenges. Despite the strong equity base, attention to liquidity management is advised given the banking industry's reliance on financial flexibility.

Cash Flow

The company's cash flow statements highlight volatility with negative free cash flow in 2024, contrasting the positive free cash flows in prior years. Operating cash flow turned negative from a previously positive position, which may impact future operational flexibility. The overall trend displays inconsistent cash generation, raising concerns about sustaining cash needs without relying heavily on financing activities.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
155.22M	125.79M	129.19M	133.09M	133.99M
	Gross Profit
155.22M	125.79M	129.19M	133.09M	133.99M
	EBIT
42.04M	26.38M	48.01M	47.99M	42.45M
	EBITDA
0.00	0.00	42.82M	52.47M	46.75M
	Net Income Common Stockholders
36.97M	25.39M	30.74M	37.52M	32.89M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
520.72M	118.13M	936.38M	1.07B	363.60M
	Total Assets
3.04B	2.81B	2.67B	2.72B	2.12B
	Total Debt
7.49M	33.08M	34.27M	35.78M	37.51M
	Net Debt
-34.61M	-85.45M	-225.08M	-610.04M	-78.46M
	Total Liabilities
2.77B	2.57B	2.45B	35.78M	37.51M
	Stockholders Equity
267.12M	234.72M	218.63M	237.82M	221.57M
Cash Flow		Free Cash Flow
-8.73M	32.61M	74.28M	109.48M	-39.72M
	Operating Cash Flow
-8.73M	38.92M	78.12M	111.99M	-36.45M
	Investing Cash Flow
-197.63M	-255.07M	-405.63M	-159.09M	-382.82M
	Financing Cash Flow
150.56M	75.33M	-58.98M	576.96M	439.82M

Northrim Bancorp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 80.66
• 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 80.66 is above the 20-day moving average (MA) of 72.77, above the 50-day MA of 75.09, and above the 200-day MA of 73.29, indicating a bullish trend. The MACD of 1.18 indicates Negative momentum. The RSI at 70.03 is Negative, neither overbought nor oversold. The STOCH value of 87.35 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
FBIZ	81 Outperform	$398.14M	8.70	14.36%	2.16%	12.02%	26.09%
NRIM	77 Outperform	$445.32M	10.71	16.22%	3.10%	23.96%	47.39%
COFS	73 Outperform	$430.68M	8.85	2.27%	3.87%	21.70%	15.99%
GCBC	69 Neutral	$378.85M	13.28	13.33%	1.57%	14.44%	16.49%
TCBX	68 Neutral	$419.04M	11.07	11.27%	―	15.07%	53.76%
Sector *	63 Neutral	$12.46B	9.56	8.14%	17044.64%	12.63%	-4.25%
FFIC	48 Neutral	$412.41M	16.43	-6.53%	7.35%	-5.55%	-242.78%

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.