NasdaqGS:NRIM

Stock Analysis Report

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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.


Snowflake Analysis

Flawless balance sheet established dividend payer.


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

-4.3%

NRIM

0.8%

US Banks

4.0%

US Market


1 Year Return

-35.0%

NRIM

-28.2%

US Banks

5.0%

US Market

Return vs Industry: NRIM underperformed the US Banks industry which returned -28.2% over the past year.

Return vs Market: NRIM underperformed the US Market which returned 5% over the past year.


Shareholder returns

NRIMIndustryMarket
7 Day-4.3%0.8%4.0%
30 Day-7.9%-9.7%0.9%
90 Day4.5%15.4%29.5%
1 Year-32.3%-35.0%-25.7%-28.2%7.2%5.0%
3 Year-16.0%-23.9%-18.1%-24.7%36.2%27.3%
5 Year6.7%-8.7%8.8%-4.4%65.4%47.0%

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?

4.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NRIM ($23.53) is trading below our estimate of fair value ($24.75)

Significantly Below Fair Value: NRIM is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: NRIM is good value based on its PE Ratio (8.9x) compared to the Banks industry average (9.4x).

PE vs Market: NRIM is good value based on its PE Ratio (8.9x) compared to the US market (16.5x).


Price to Earnings Growth Ratio

PEG Ratio: NRIM's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: NRIM is good value based on its PB Ratio (0.8x) compared to the US Banks industry average (0.8x).


Next Steps

Future Growth

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

-27.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NRIM's earnings are forecast to decline over the next 3 years (-27.3% per year).

Earnings vs Market: NRIM's earnings are forecast to decline over the next 3 years (-27.3% per year).

High Growth Earnings: NRIM's earnings are forecast to decline over the next 3 years.

Revenue vs Market: Insufficient data to determine if NRIM's revenue is forecast to grow faster than the US market.

High Growth Revenue: Insufficient data to determine if NRIM's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if NRIM's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Northrim BanCorp performed over the past 5 years?

1.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NRIM has a high level of non-cash earnings.

Growing Profit Margin: NRIM's current net profit margins (17.5%) are lower than last year (21.2%).


Past Earnings Growth Analysis

Earnings Trend: NRIM's earnings have grown by 1.6% per year over the past 5 years.

Accelerating Growth: NRIM's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: NRIM had negative earnings growth (-14%) over the past year, making it difficult to compare to the Banks industry average (1.8%).


Return on Equity

High ROE: NRIM's Return on Equity (8.8%) is considered low.


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


Financial Institutions Analysis

Asset Level: NRIM's Assets to Equity ratio (8.6x) is low.

Allowance for Bad Loans: NRIM has a sufficient allowance for bad loans (139%).

Low Risk Liabilities: 93% of NRIM's liabilities are made up of primarily low risk sources of funding.

Loan Level: NRIM has an appropriate level of Loans to Assets ratio (63%).

Low Risk Deposits: NRIM's Loans to Deposits ratio (76%) is appropriate.

Level of Bad Loans: NRIM has an appropriate level of bad loans (1.4%).


Next Steps

Dividend

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

5.78%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NRIM's dividend (5.78%) is higher than the bottom 25% of dividend payers in the US market (1.67%).

High Dividend: NRIM's dividend (5.78%) is in the top 25% of dividend payers in the US market (4.5%)


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 reasonable payout ratio (50.8%), NRIM's dividend payments are 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

How experienced are the management team and are they aligned to shareholders interests?

4.3yrs

Average management tenure


CEO

Joe Schierhorn (62yo)

3.08yrs

Tenure

US$811,275

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 ($USD811.28K) is above average for companies of similar size in the US market ($USD605.69K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Joseph Schierhorn
Chairman3.08yrsUS$811.28k0.61% $906.5k
Jed Ballard
Executive VP & CFO2.5yrsUS$405.78k0.042% $63.0k
Michael Martin
Executive VP5.5yrsUS$541.33k0.12% $186.4k
Benjamin Craig
Executive VP & Chief Information Officer of Northrim Bank5.5yrsUS$416.01k0.055% $82.7k
Michael Huston
Executive VP & Chief Lending Officer of Northrim Bank3.17yrsUS$443.93k0.16% $241.5k
Audrey Amundson
Executive VP & Director of Accountingno datano datano data
Lynn Wolfe
Executive VP & Chief Administrative Officerno datano datano data
Caroline Huntley
Marketing Officerno datano datano data
Kari Skinner
Senior VP & Marketing and Communications Directorno datano datano data
Latosha Frye
Senior VP & Corporate Accounting Manager6.08yrsUS$392.61kno data

4.3yrs

Average Tenure

48.5yo

Average Age

Experienced Management: NRIM's management team is considered experienced (4.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Joseph Schierhorn
Chairman3.08yrsUS$811.28k0.61% $906.5k
Linda Thomas
Independent Director6.25yrsUS$58.90k0.061% $91.1k
David Wight
Independent Director13.83yrsUS$59.90k0.25% $375.3k
Anthony Drabek
Independent Director29.5yrsUS$48.50k0.051% $77.1k
Larry Cash
Independent Director25.5yrsUS$48.50k0.040% $59.4k
John Swalling
Independent Lead Director8.92yrsUS$63.75k0.16% $243.7k
David Karp
Independent Director5.17yrsUS$51.90k0.065% $97.3k
David McCambridge
Independent Director8.92yrsUS$65.90k0.12% $177.3k
Karl M. Hanneman
Independent Director6.33yrsUS$51.90k0.10% $150.6k
Krystal Nelson
Independent Director5.17yrsUS$53.00k0.066% $98.8k

7.6yrs

Average Tenure

65yo

Average Age

Experienced Board: NRIM's board of directors are considered experienced (7.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

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$149.794m
  • Shares outstanding: 6.37m
  • 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 27, 2020, the company operated 16 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 Analysis2020/07/04 00:27
End of Day Share Price2020/07/02 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.