BUSINESS
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 through 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.
INVESTMENT RATING
Northrim BanCorp has a current Value Trend Rating of B (Positive).
This rating combines highly consistent signals from two proprietary PTR measures of a stock’s attractiveness. Northrim BanCorp has a slightly positive Power Rating of 64 and a slightly positive Appreciation Score of 67, with the Positive Value Trend Rating the result.
Northrim BanCorp’s stock is selling well below targeted value. The current stock price of $94.94 compares to targeted value 12 months forward of $144.
This moderately high appreciation potential results in an appreciation score of 67 (only 33% of the universe has greater appreciation potential.)
Northrim BanCorp has a Power Rating of 64. (This slightly positive Power Rating indicates that NRIM’s chances of achieving attractive investment performance over the near to intermediate term are only average.)
Factors contributing to this slightly positive Power Rating include: recent price action has been favorable; and the Commercial Banks comparison group is currently in a modestly favorable position. An offsetting factor is NRIM’s earnings estimates have fallen very significantly in recent months.
INVESTMENT PROFILE
NRIM’s financial strength is exceptional. Financial strength rating is 93.
Relative to the S&P 500 Composite, Northrim BanCorp Inc has moderate Value characteristics; its appeal is likely to be to Income-oriented investors; the perception is that NRIM is lower risk. Low financial leverage is a positive for NRIM. Low expected growth is a relative weakness for NRIM. NRIM’s valuation is low: high dividend yield, low P/E ratio, and low price/book ratio. NRIM has unusually low market capitalization.
CURRENT SIGNALS
Northrim BanCorp’s current operations are strong. Return on equity is rising, reflecting: improving asset utilization; widening pretax margins; and rising leverage.
Northrim BanCorp’s current technical position is mixed. The 200 day moving average is in an uptrend. The stock price is below its 200 day moving average.
ALERTS
Northrim BanCorp Inc (NASDAQ: NRIM) has recently enjoyed significant positive changes in investment behavior: its shorter term price trend turned up.
Modest positive changes in fundamentals have recently occurred for Northrim BanCorp Inc (NASDAQ: NRIM). Positive developments: significant quarterly earnings acceleration occurred, and significant quarterly sales acceleration occurred. Negative development: the consensus estimate for December, 2025 decreased significantly.
The stock is currently rated B.
Northrim BanCorp Inc (NASDAQ: NRIM) stock closed at $94.94 on 8/27/25 after a slight gain of 0.02%. However, below average trading volume at 71% of normal accompanied the advance. The stock has risen 8.2% during the last week and has been strong relative to the market over the last nine months.
CASH FLOW
In 2025, Northrim BanCorp generated a very significant increase in cash of +$78.55 million (+125%). Sources of cash were much larger than uses. Cash generated from 2025 EBITDA totaled +$93.36 million. Non-operating uses consumed -$31.95 million (-34% of EBITDA). Cash taxes consumed -$13.42 million (-14% of EBITDA). Re-investment in the business amounted to -$489.79 million (-525% of EBITDA). On a net basis, debt investors furnished +$39.57 million (+42% of EBITDA) while equity investors pulled out -$21.75 million (-23% of EBITDA).
Northrim BanCorp’s Non-operating Income, %EBITDA has exhibited a volatile overall uptrend over the period. This improvement was accompanied by stability for the Northrim Bancorp Peer Group. In most years, Northrim BanCorp was in the third quartile and second quartile. Currently, Northrim BanCorp is at median at -34% of EBITDA (-$31.95 million).
Northrim BanCorp’s Cash Taxes, %EBITDA has exhibited a volatile overall uptrend over the period. This improvement was accompanied by a similar trend for the Northrim Bancorp Peer Group. In most years, Northrim BanCorp was in the third quartile and second quartile. Currently, Northrim BanCorp is at the lower quartile at -14% of EBITDA (-$13.42 million).
Northrim BanCorp’s Business Re-investment, %EBITDA has suffered a volatile overall downtrend over the period. This downtrend was accompanied by a similar trend for the Northrim Bancorp Peer Group. In most years, Northrim BanCorp was in the top quartile and lower quartile. Currently, Northrim BanCorp is slightly above median at -525% of EBITDA (-$489.79 million).
Northrim BanCorp’s Debt Investors, %EBITDA has experienced a strong overall uptrend over the period. This improvement was accompanied by an opposite trend for the Northrim Bancorp Peer Group. (Since 2022 Debt Investors, %EBITDA has accelerated very sharply.) In most years, Northrim BanCorp was in the second quartile and lower quartile. Currently, Northrim BanCorp is above median at +42% of EBITDA (+$39.57 million).
Northrim BanCorp’s Equity Investors, %EBITDA has experienced a downtrend over the period. This downtrend was accompanied by stability for the Northrim Bancorp Peer Group. In most years, Northrim BanCorp was in the third quartile and second quartile. Currently, Northrim BanCorp is slightly above median at -23% of EBITDA (-$21.75 million).
Northrim BanCorp’s Change in Cash, %EBITDA has experienced a volatile overall downtrend over the period. This downtrend was accompanied by a similar trend for the Northrim Bancorp Peer Group. (Since 2022 Change in Cash, %EBITDA has experienced a very sharp recovery.) In most years, Northrim BanCorp was in the lower quartile and top quartile. Currently, Northrim BanCorp is at the upper quartile at +84% of EBITDA (+$78.55 million).
Northrim BanCorp’s Cash, %Revenue has enjoyed a volatile overall uptrend over the period. This improvement was accompanied by a similar trend for the Northrim Bancorp Peer Group. In most years, Northrim BanCorp was in the top quartile and second quartile. Currently, Northrim BanCorp is slightly below median at +64%.
PROFITABILITY
Northrim BanCorp’s return on equity has improved very significantly since 2015. The current level of 15.5% is 1.54X the low for the period and is -2.0% from the high.
A major analytical focus for NRIM is a small negative trend in pretax operating return significantly offset by a very strong positive trend in non-operating factors.
The productivity of Northrim BanCorp’s assets declined over the full period 2015-2025: asset turnover has experienced a downtrend even as it experienced a very sharp recovery after the 2022 low.
Partially offsetting this trend, however, pretax margin has exhibited a volatile overall uptrend accelerated very sharply from the 2023 level.
Non-operating factors (income taxes and financial leverage) had a very significant positive influence on return on equity.
Northrim BanCorp’s return on equity is upper quartile (15.5%) for the four quarters ended June, 2025.
Operating performance (pretax return on assets) is upper quartile (1.8%) reflecting asset turnover that is upper quartile (0.07X) and upper quartile pretax margin (26.3%).
Tax “keep” rate (income tax management) is at median (77.0%) resulting in after tax return on assets that is upper quartile.
Financial leverage (leverage) is upper quartile (11.18X).
GROWTH RATES
Overall, Northrim BanCorp’s growth rate has slowed considerably in recent years.
Northrim BanCorp’s historical income statement growth and balance sheet growth have diverged. Revenue growth has paralleled asset growth; earnings growth has exceeded equity growth.
Annual revenue growth has been 11.4% per year. (More recently it has been 14.6%.)
Total asset growth has been 12.8% per year. (More recently it has been 7.0%.)
Annual E.P.S. growth has been 15.1% per year.
Equity growth has been 7.4% per year.
No consensus growth rate forecast is available for Northrim BanCorp.
Relative to the Northrim Bancorp Peer Group, Northrim BanCorp’s historical growth measures are consistently top quartile. Revenue growth (11.4%) has been upper quartile. Total asset growth (12.8%) has been upper quartile. E.P.S. growth (15.1%) has been upper quartile. Equity growth (7.4%) has been upper quartile.
Consensus growth forecast is unavailable.
PRICE HISTORY
Over the full time period, Northrim BanCorp’s stock price performance has been variable and in line with the market. Between October, 2014 and August, 2025, Northrim BanCorp’s stock price rose +229%; relative to the market, this was a +2% gain. Significant price moves during the period: 1) September, 2023 – August, 2025: +140%; and 2) July, 2020 – November, 2022: +142%.
TOTAL INVESTMENT RETURNS
Current annual total return performance of 26.1% is upper quartile relative to the S&P 500 Composite.
In addition to being upper quartile relative to S&P 500 Composite, current annual total return performance through July, 2025 of 26.1% is upper quartile relative to Northrim BanCorp Inc Peer Group.
Current 5-year total return performance of 34.9% is upper quartile relative to the S&P 500 Composite.
Through July, 2025, with upper quartile current 5-year total return of 34.9% relative to S&P 500 Composite, Northrim BanCorp’s total return performance is upper quartile relative to Northrim BanCorp Inc Peer Group.
VALUATION BENCHMARKS
Relative to S&P 500 Composite, NRIM’s overall valuation is quite low. The highest factor, the ratio of enterprise value/revenue, is below median. Price/equity ratio is at the lower quartile. Ratio of enterprise value/earnings before interest and taxes is lower quartile. Price/earnings ratio is lower quartile. The lowest factor, the ratio of enterprise value/assets, is lower quartile.
Relative to Northrim BanCorp Peer Group, NRIM’s overall valuation is low. The highest factor, the price/equity ratio, is upper quartile. Ratio of enterprise value/assets is at median. Price/earnings ratio is lower quartile. Ratio of enterprise value/revenue is lower quartile. The lowest factor, the ratio of enterprise value/earnings before interest and taxes, is lower quartile.
Northrim BanCorp has a very large value gap compared to the median. For NRIM to hit median valuation, its current ratio of enterprise value/revenue would have to rise from the current level of 2.73X to 3.37X. If NRIM’s ratio of enterprise value/revenue were to rise to 3.37X, its stock price would be higher by $26 to $121.
For NRIM to achieve upper quartile valuation relative to the Northrim BanCorp Peer Group, its current ratio of enterprise value/revenue would have to rise from the current level of 2.73X to 4.98X. If NRIM’s ratio of enterprise value/revenue were to rise to 4.98X, its stock price would increase by $91 from the current level of $95.
VALUE TARGETS
NRIM is expected to continue to be an important Value Builder reflecting capital returns that are forecasted to be above the cost of capital.
Northrim BanCorp’s current Price Target of $146 represents a +53% change from the current price of $94.94.
This moderately high appreciation potential results in an appreciation score of 67 (only 33% of the universe has greater appreciation potential.)
Reinforcing this moderately high Appreciation Score of 67, the moderately high Power Rating of 64 contributes to an Value Trend Rating of B.
Northrim BanCorp’s current Price Target is $146 (+37% from the 2024 Target of $106 and +53% from the 08/27/25 price of $94.94). This dramatic rise in the Target is the result of a +15% increase in the equity base and a +20% increase in the price/equity multiple. The forecasted increase in cost of equity has a very large negative impact on the price/equity multiple and the forecasted decline in growth has a slight negative impact as well. More than offsetting these Drivers, the forecasted increase in return on equity has a very large positive impact.
PTR’s return on equity forecast is 17.0% — above our recent forecasts. Forecasted return on equity enjoyed a dramatic, erratic increase between 2016 and 2024. The current forecast is well above the 2017 low of 7%.
PTR’s growth forecast is 11.0% — slightly below our recent forecasts. Forecasted growth enjoyed a dramatic, erratic increase between 2016 and 2024. The current forecast is well above the 2019 low of 4%.
PTR’s cost of equity forecast is 11.5% — slightly above recent levels. Forecasted cost of equity suffered a dramatic, erratic increase between 2016 and 2024. The current forecast is well above the 2017 low of 5.9%.
At Northrim BanCorp’s current price of $94.94, investors are placing a positive value of $8 on its future investments. This view is consistent with the company’s most recent performance that reflected a growth rate of 13.0% per year, and a return on equity of 11.6% versus a cost of equity of 8.9%.
PTR’s 2026 Price Target of $146 is based on these forecasts and reflects an estimated value of existing assets of $88 and a value of future investments of $58.
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