NasdaqGS:NRIM

Stock Analysis Report

Executive Summary

Northrim BanCorp, Inc. operates as the bank holding company for Northrim Bank that provides commercial banking products and services to businesses and professional individuals in Alaska.

Rewards

PE ratio (12.3x) is below the US market (18.9x)

Earnings grew by 36.4% over the past year

Pays a reliable dividend of 3.47%

Risk Analysis

No risks detected for NRIM from our risk checks.


Snowflake Analysis

Flawless balance sheet with solid track record and pays a dividend.


Similar Companies

Share Price & News

How has Northrim BanCorp's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: NRIM has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.1%

NRIM

-0.3%

US Banks

1.7%

US Market


1 Year Return

11.1%

NRIM

15.3%

US Banks

23.2%

US Market

Return vs Industry: NRIM underperformed the US Banks industry which returned 21.7% over the past year.

Return vs Market: NRIM underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

NRIMIndustryMarket
7 Day2.1%-0.3%1.7%
30 Day-0.7%-2.0%4.2%
90 Day2.6%9.1%11.9%
1 Year15.0%11.1%18.6%15.3%25.8%23.2%
3 Year43.3%31.1%34.3%24.8%52.8%42.9%
5 Year100.1%72.8%85.7%64.8%75.2%55.8%

Price Volatility Vs. Market

How volatile is Northrim BanCorp's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Northrim BanCorp undervalued compared to its fair value and its price relative to the market?

12.58x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: NRIM ($38.01) is trading above our estimate of fair value ($25.35)

Significantly Below Fair Value: NRIM is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: NRIM is good value based on its PE Ratio (12.3x) compared to the Banks industry average (12.8x).

PE vs Market: NRIM is good value based on its PE Ratio (12.3x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate NRIM's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: NRIM is overvalued based on its PB Ratio (1.2x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is Northrim BanCorp forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

1.8%

Forecasted Banks industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Northrim BanCorp has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Northrim BanCorp performed over the past 5 years?

1.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NRIM has high quality earnings.

Growing Profit Margin: NRIM's current net profit margins (20.5%) are higher than last year (17.6%).


Past Earnings Growth Analysis

Earnings Trend: NRIM's earnings have grown by 1.4% per year over the past 5 years.

Accelerating Growth: NRIM's earnings growth over the past year (36.4%) exceeds its 5-year average (1.4% per year).

Earnings vs Industry: NRIM earnings growth over the past year (36.4%) exceeded the Banks industry 27.1%.


Return on Equity

High ROE: NRIM's Return on Equity (10.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Northrim BanCorp's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: NRIM has a low level of unsold assets or inventory.

Debt Coverage by Assets: NRIM's debt is covered by short term assets (assets are 8.6x debt).


Financial Institutions Analysis

Asset Level: NRIM's level of assets compared to its equity is low.

Allowance for Bad Loans: NRIM has a sufficient allowance for bad loans.

Low Risk Liabilities: NRIM's liabilities are made up of primarily low risk sources of funding.

Loan Level: NRIM has an acceptable proportion of non-loan assets held.

Low Risk Deposits: NRIM's loans are broadly funded by customer deposits.

Level of Bad Loans: NRIM has an appropriate level of bad loans (1.68%)


Next Steps

Dividend

What is Northrim BanCorp's current dividend yield, its reliability and sustainability?

3.40%

Current Dividend Yield


Dividend Yield vs Market

company3.4%marketbottom25%1.4%markettop25%3.6%industryaverage2.8%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: NRIM's dividend (3.47%) is higher than the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: NRIM's dividend (3.47%) is low compared to the top 25% of dividend payers in the US market (3.66%).


Stability and Growth of Payments

Stable Dividend: NRIM's dividends per share have been stable in the past 10 years.

Growing Dividend: NRIM's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (40.8%), NRIM's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Northrim BanCorp's salary, the management and board of directors tenure and is there insider trading?

3.8yrs

Average management tenure


CEO

Joe Schierhorn (61yo)

2.6yrs

Tenure

US$771,191

Compensation

Mr. Joseph M. Schierhorn, also known as Joe, has been the Chief Executive Officer of Northrim Bank since January 1, 2016 and its President since March 30, 2015 and as its Chairman of the Board since Januar ...


CEO Compensation Analysis

Compensation vs Market: Joe's total compensation ($USD771.19K) is about average for companies of similar size in the US market ($USD1.08M).

Compensation vs Earnings: Joe's compensation has been consistent with company performance over the past year.


Management Age and Tenure

3.8yrs

Average Tenure

47.5yo

Average Age

Experienced Management: NRIM's management team is considered experienced (3.8 years average tenure).


Board Age and Tenure

7.1yrs

Average Tenure

64yo

Average Age

Experienced Board: NRIM's board of directors are considered experienced (7.1 years average tenure).


Insider Trading

Insider Buying: NRIM insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

SellUS$30,32806 Dec 19
Anthony Drabek
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares830
Max PriceUS$36.54
BuyUS$25,45901 Nov 19
David Wight
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares650
Max PriceUS$39.17
BuyUS$1,43715 Oct 19
John Swalling
EntityIndividual
Role
Lead Director
Lead Director
Shares34.94
Max PriceUS$41.12
BuyUS$4,96430 Sep 19
John Swalling
EntityIndividual
Role
Lead Director
Lead Director
Shares145.26
Max PriceUS$44.62
BuyUS$9,96214 Aug 19
Aaron Schutt
EntityIndividual
Shares281
Max PriceUS$35.45
BuyUS$24,85731 May 19
John Swalling
EntityIndividual
Role
Lead Director
Lead Director
Shares730
Max PriceUS$34.05
BuyUS$5,35431 May 19
Krystal Nelson
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares160
Max PriceUS$33.46
BuyUS$24,66829 May 19
Anthony Drabek
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares715
Max PriceUS$34.50
BuyUS$23,77929 May 19
David Karp
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares700
Max PriceUS$33.97
BuyUS$25,35128 May 19
David McCambridge
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares743
Max PriceUS$34.12
BuyUS$20,29924 May 19
Krystal Nelson
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares600
Max PriceUS$33.83
BuyUS$17,60002 May 19
Karl M. Hanneman
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares500
Max PriceUS$35.20
BuyUS$18,54611 Feb 19
David Wight
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares500
Max PriceUS$37.09
BuyUS$13,50405 Feb 19
Aaron Schutt
EntityIndividual
Shares400
Max PriceUS$33.76

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Joe Schierhorn (61yo)

    Chairman

    • Tenure: 2.6yrs
    • Compensation: US$771.19k
  • Lynn Wolfe

    Executive VP & Chief Administrative Officer

    • Latosha Frye (40yo)

      Senior VP & Corporate Accounting Manager

      • Tenure: 5.6yrs
      • Compensation: US$392.61k
    • Mike Huston (51yo)

      Executive VP & Chief Lending Officer of Northrim Bank

      • Tenure: 2.7yrs
      • Compensation: US$382.66k
    • Audrey Amundson

      Executive VP & Director of Accounting

      • Ben Craig (44yo)

        Executive VP & Chief Information Officer of Northrim Bank

        • Tenure: 5yrs
        • Compensation: US$339.05k
      • Mike Martin (52yo)

        Executive VP

        • Tenure: 5yrs
        • Compensation: US$392.04k
      • Caroline Huntley

        Marketing Officer

        • Jed Ballard (40yo)

          Executive VP & CFO

          • Tenure: 2yrs
          • Compensation: US$359.66k
        • Kari Skinner

          VP & Marketing and Communications Director


          Board Members

          • Joe Schierhorn (61yo)

            Chairman

            • Tenure: 2.6yrs
            • Compensation: US$771.19k
          • Linda Thomas (65yo)

            Independent Director

            • Tenure: 5.8yrs
            • Compensation: US$58.05k
          • David Wight (78yo)

            Independent Director

            • Tenure: 13.3yrs
            • Compensation: US$59.90k
          • Anthony Drabek (71yo)

            Independent Director

            • Tenure: 29yrs
            • Compensation: US$48.50k
          • Larry Cash (68yo)

            Independent Director

            • Tenure: 25yrs
            • Compensation: US$47.50k
          • Chris Swalling (69yo)

            Lead Director

            • Tenure: 8.4yrs
            • Compensation: US$62.90k
          • Dave Karp (52yo)

            Independent Director

            • Tenure: 4.7yrs
            • Compensation: US$51.90k
          • David McCambridge (63yo)

            Independent Director

            • Tenure: 8.4yrs
            • Compensation: US$65.05k
          • Karl M. Hanneman (61yo)

            Independent Director

            • Tenure: 5.8yrs
            • Compensation: US$50.90k
          • Krystal Nelson (46yo)

            Independent Director

            • Tenure: 4.7yrs
            • Compensation: US$54.50k

          Company Information

          Northrim BanCorp, Inc.'s company bio, employee growth, exchange listings and data sources


          Key Information

          • Name: Northrim BanCorp, Inc.
          • Ticker: NRIM
          • Exchange: NasdaqGS
          • Founded: 1990
          • Industry: Regional Banks
          • Sector: Banks
          • Market Cap: US$253.875m
          • Shares outstanding: 6.54m
          • Website: https://www.northrim.com

          Number of Employees


          Location

          • Northrim BanCorp, Inc.
          • 3111 C Street
          • Anchorage
          • Alaska
          • 99503
          • United States

          Listings

          TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
          NRIMNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDNov 1990

          Biography

          Northrim BanCorp, Inc. operates as the bank holding company for Northrim Bank that provides commercial banking products and services to businesses and professional individuals in Alaska. 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, money market deposit accounts, certificates of deposit, and courier noncash deposits. It also provides family residential mortgages; commercial loans, such as secured and unsecured loans for working capital and expansion; commercial real estate loans; construction loans for commercial real estate projects, and land development and residential subdivision construction loans; and loans for automobiles, recreational vehicles, boats, and other consumer purchases, as well as home equity and commercial credit lines, and factoring services. In addition, the company offers other services that include consumer online banking, mobile app and mobile deposit, mobile Web and text banking, business online banking, personal finance, online documents, consumer and business debit cards, home equity advantage access cards, and telebanking and automated teller services. Further, it provides personalized checks, overdraft protection for savings accounts, commercial drive-up banking services, automatic transfers and payments, People Pay services, external and wire transfers, bill pay services, direct payroll deposits, electronic tax payments, automated clearing house origination and receipt services, remote deposit capture services, account reconciliation and positive pay services, merchant and cash management programs, annuity products, and long term investment portfolios. As of January 28, 2019, the company operated 15 branches in Anchorage, the Matanuska Valley, Juneau, Fairbanks, Ketchikan, and Sitka. Northrim BanCorp, Inc. was founded in 1990 and is headquartered in Anchorage, Alaska. 


          Company Analysis and Financial Data Status

          All financial data provided by Standard & Poor's Capital IQ.
          DataLast Updated (UTC time)
          Company Analysis2020/01/17 01:34
          End of Day Share Price2020/01/16 00:00
          Earnings2019/09/30
          Annual Earnings2018/12/31


          Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.