NRIM

Northrim BanCorp

Fundamental data last updated:April 13, 2026

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company profile

SECTOR

Financial Services

industry

Banks - Regional

Exchange

Nasdaq

County of HQ

United States

Next Earnings Date

04/22/26

Business Summary

Northrim BanCorp operates as a regional bank, generating cash primarily through net interest income from lending activities and spread capture between deposits and loans. Its business model depends on disciplined underwriting, deposit gathering, and maintaining margin stability, reflected in its 19.80% operating margin. The moat is local relationship banking and geographic familiarity, which can support pricing power in niche markets. Sustainable profitability hinges on credit quality management and efficient capital deployment, as evidenced by its 25.90% ROIC.

 


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VALUATION

P/E

8.6

Market Cap ($M USD)

$548

Forward P/E

8.9

PEG

0.7

PRICE TO SALES

2.6

PRICE TO BOOK

1.7

EV / EBITDA

-

5-Year Average P/E

Free Cash Flow Yield

DCF Value

Graham Number

Price to FCF

EV to FCF

Earnings Yield

FCF Yield

DIVIDEND

Yield

2.60%

Annual Payout

$0.64

Payout Ratio

21.90%

Consecutive Years of Dividend Growth

10+

5-Year Dividend Growth Rate

11.60%

Financial Health & Profitability

Earnings Per Share

$2.92

Next Year EPS Growth Estimate

$2.78

Next Year Revenue Growth Estimate

7.00%

Return on Equity (ROE)

19.80%

FREE CASH FLOW

Operating Margin

42.70%

Debt-to-Equity

0.3

Piotroski F-Score

5

Altman Z-Score

0.4

Return on Invested Capital (ROIC)

25.90%

Current Ratio

-

Quick Ratio

Net Debt to EBITDA

Interest Coverage

Gross Profit margin

FCF PER SHARE

REVENUE PER SHARE

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Gainseekers Quantitative Analysis

Summary

At 8.6x earnings and 8.9x forward earnings with a PEG Forward of 0.7, NRIM screens like a classic low-expectation value name, but the 0.4 Altman Z-Score is a flashing distress signal that cannot be ignored. The market is clearly discounting balance sheet fragility despite a modest 7.00% ROE and 19.80% operating margin. This is not a growth darling; it is a statistically cheap regional bank priced for skepticism. The valuation suggests mispricing on earnings power, but the Altman score implies solvency risk is the dominant narrative suppressing multiples.

AI Exposure / Tech Reliance

As a regional bank in Financial Services, NRIM’s AI exposure is operational rather than transformative, focused on underwriting automation, risk modeling, and efficiency gains. Banks that adopt AI-driven credit analytics and fraud detection can defend margins like its 19.80% operating margin. However, technology is more about cost control and competitive parity here than explosive revenue expansion.

The Bull Case

A GARP or deep value investor will be drawn to the 8.6 P/E, 0.7 PEG Forward, and robust 25.90% ROIC, which signal strong capital efficiency relative to price. The 19.80% operating margin in a regional banking model shows disciplined cost control, while a Piotroski F-Score of 5 suggests middling but not deteriorating fundamentals. Institutional Ownership at $31.00 indicates some professional sponsorship, and a Dividend Per Share of 2.60% with a TTM Yield of 0.3 provides income support. With EPS Next Year estimated at $2.92 and modest valuation compression already evident, the setup resembles a classic re-rating candidate if credit conditions stabilize.

The Bear Case

The 0.4 Altman Z-Score is the most glaring red flag, signaling severe balance sheet stress risk in a leveraged industry. Debt/Equity of 42.70% adds sensitivity to credit cycles, and a Short % of Float at 11.60% confirms that a meaningful cohort is betting against the equity. A 7.00% ROE is uninspiring for a bank trading at 1.7x book, suggesting limited buffer if asset quality weakens. Even with a 0.7 PEG, the market may be correctly pricing in structural vulnerability rather than mispricing growth.

Market Sentiment & Smart Money

Short Interest %

2.10%

Analyst Consensus

1.67

Average Analyst Price Target

$31.00

Institutional Ownership %

74.60%

1-Year Beta

0.95

Insider Buying % (6 Mo)

2.90%%

Distance to 52-Week High

80.50%

Distance to 52-Week Low

148.30%

EARNINGS SURPRISE %

50-DAY SMA

200-DAY SMA

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.