📊 NRIM Key Takeaways
Is Northrim Bancorp Inc. (NRIM) a Good Investment?
Northrim Bancorp demonstrates strong revenue growth (+43.3% YoY) and exceptional cash generation (40.7% FCF margin), but returns on equity (4.1%) and assets (0.4%) remain well below banking industry standards, indicating capital deployment inefficiency. The conservative balance sheet (0.24x debt/equity) and robust profitability margins provide stability, but the bank must improve returns on deployed capital to justify expansion.
Northrim Bancorp exhibits standout core profitability (33% operating margin, 25% net margin) translating into a 2.0% ROA and 19.8% ROE, supported by disciplined costs and solid asset-liability management. A conservative balance sheet with minimal long-term debt and strong operating cash flow provides resilience and flexibility to support growth. While revenue and EPS growth are robust, sustaining them will depend on maintaining net interest margins and stable credit quality in a shifting rate environment.
Why Buy Northrim Bancorp Inc. Stock? NRIM Key Strengths
- Strong 43.3% YoY revenue growth demonstrating market penetration and lending expansion
- Exceptional profitability margins (gross 81.3%, operating 30%, net 22.9%) and free cash flow generation at 40.7% FCF margin
- Conservative capital structure with low leverage (0.24x debt/equity) and $335.8M equity base supporting stability
- Robust EPS growth of 72.9% YoY despite ROE constraints
- High profitability: 2.0% ROA and 19.8% ROE with 25% net margin
- Conservative leverage and liquidity (debt/equity 0.04x; strong cash and 9x interest coverage)
- Strong earnings and cash generation (+43% revenue, +75% net income YoY; 52% FCF margin)
NRIM Stock Risks: Northrim Bancorp Inc. Investment Risks
- ROE of 4.1% significantly below banking industry standards (target 8-12%), indicating inefficient equity capital deployment
- ROA of 0.4% below peer benchmarks suggests operational challenges or high expense ratios relative to asset base
- Weak interest coverage of 1.9x provides limited debt servicing cushion and raises concerns about asset quality deterioration
- Modest insider buying activity (4 Form 4 filings in 90 days) suggests limited insider confidence despite strong growth
- Net interest margin compression from rising funding costs or rate shifts
- Credit quality deterioration increasing provisions and reducing earnings
- Deposit/funding concentration in core markets increasing liquidity pressure during stress
Key Metrics to Watch
- Return on Equity (ROE) trend and path to 8-10% target threshold
- Net Interest Margin (NIM) sustainability and deposit cost dynamics
- Non-performing loan ratio and loan loss provision trends affecting credit quality
- Regulatory capital ratios (Tier 1, CET1) and capital adequacy under stress scenarios
- Cost-to-income ratio improvement as the bank scales operations
- Net interest margin (NIM) and deposit costs
- Nonperforming assets (NPA) and net charge-offs (NCOs)
Northrim Bancorp Inc. (NRIM) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 40.7% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. The current ratio below 1.0x warrants monitoring of short-term liquidity.
NRIM Profit Margin, ROE & Profitability Analysis
NRIM vs Finance Sector: How Northrim Bancorp Inc. Compares
How Northrim Bancorp Inc. compares to Finance sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Northrim Bancorp Inc. Stock Overvalued? NRIM Valuation Analysis 2026
Based on fundamental analysis, Northrim Bancorp Inc. has mixed fundamental signals relative to the Finance sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Northrim Bancorp Inc. Balance Sheet: NRIM Debt, Cash & Liquidity
NRIM Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Northrim Bancorp Inc.'s revenue has grown significantly by 3,970% over the 5-year period, indicating strong business expansion. The most recent EPS of $1.12 reflects profitable operations.
NRIM Revenue Growth, EPS Growth & YoY Performance
NRIM Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $54.6M | $11.8M | $0.60 |
| Q3 2025 | $51.0M | $8.2M | $0.39 |
| Q2 2025 | $46.5M | $8.2M | $1.62 |
| Q1 2025 | $43.7M | $8.2M | $1.48 |
| Q2 2019 | $1.5M | $4.1M | $0.62 |
| Q1 2019 | $1.3M | $4.1M | $0.58 |
| Q3 2018 | $1.4M | $5.3M | $0.75 |
| Q2 2018 | $1.4M | $3.6M | $0.51 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Northrim Bancorp Inc. Dividends, Buybacks & Capital Allocation
NRIM SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Northrim Bancorp Inc. (CIK: 0001163370)
📋 Recent SEC Filings
❓ Frequently Asked Questions about NRIM
What is the AI rating for NRIM?
Northrim Bancorp Inc. (NRIM) has a Combined AI Rating of BUY from Claude (HOLD) and ChatGPT (BUY) with 72% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are NRIM's key strengths?
Claude: Strong 43.3% YoY revenue growth demonstrating market penetration and lending expansion. Exceptional profitability margins (gross 81.3%, operating 30%, net 22.9%) and free cash flow generation at 40.7% FCF margin. ChatGPT: High profitability: 2.0% ROA and 19.8% ROE with 25% net margin. Conservative leverage and liquidity (debt/equity 0.04x; strong cash and 9x interest coverage).
What are the risks of investing in NRIM?
Claude: ROE of 4.1% significantly below banking industry standards (target 8-12%), indicating inefficient equity capital deployment. ROA of 0.4% below peer benchmarks suggests operational challenges or high expense ratios relative to asset base. ChatGPT: Net interest margin compression from rising funding costs or rate shifts. Credit quality deterioration increasing provisions and reducing earnings.
What is NRIM's revenue and growth?
Northrim Bancorp Inc. reported revenue of $59.8M.
Does NRIM pay dividends?
Northrim Bancorp Inc. pays dividends, with $3.6M distributed to shareholders in the trailing twelve months.
Where can I find NRIM SEC filings?
Official SEC filings for Northrim Bancorp Inc. (CIK: 0001163370) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is NRIM's EPS?
Northrim Bancorp Inc. has a diluted EPS of $0.61.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is NRIM a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Northrim Bancorp Inc. has a BUY rating with 72% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is NRIM stock overvalued or undervalued?
Valuation metrics for NRIM: ROE of 4.1% (sector avg: 12%), net margin of 22.9% (sector avg: 25%). Compare these metrics with sector averages to assess valuation.
Should I buy NRIM stock in 2026?
Our dual AI analysis gives Northrim Bancorp Inc. a combined BUY rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is NRIM's free cash flow?
Northrim Bancorp Inc.'s operating cash flow is $27.2M, with capital expenditures of $2.9M. FCF margin is 40.7%.
How does NRIM compare to other Finance stocks?
Vs Finance sector averages: Net margin 22.9% (avg: 25%), ROE 4.1% (avg: 12%), current ratio N/A (avg: 1.2).