Northrim BanCorp, Inc. (NASDAQ:NRIM) Strengthens Capital And Sets Up Near‑Term Rebound

Northrim presents a conservative balance sheet with improving cash generation and capital actions that support stabilization; technicals show muted momentum but a conditional upside signal from valuation-based indicators.

Recent News

On February 13, 2026 the company filed a prospectus for an exchange offer registering up to $60.0 million of 6.875% fixed‑to‑floating rate subordinated notes due 2035. On February 20, 2026 analysts published refreshed coverage including an updated Q1 outlook and investor materials. In late February the company circulated an investor presentation updating strategy and capital priorities. In March filings the exchange/registration process for the subordinated notes continued, reflecting ongoing capital‑management steps.

Technical Analysis

Directional indicators show no established trend: ADX sits at 9.9, indicating a lack of directional strength, while DI+ (19.82) is decreasing and DI‑ (19.49) is increasing — a net directional tilt that favors downside pressure against the current valuation and near‑term outlook.

Momentum measures weaken: MACD stands at 0.11 and trends downward, with the MACD below its signal line (0.18), indicating waning bullish momentum and a bearish short‑term bias relative to recent price action.

MRO sits at −5.41 with a peak‑and‑reversal pattern; the negative MRO indicates price sits below the model target and therefore carries potential upward pressure from valuation mean reversion even as momentum shows fatigue.

RSI reads 50.26 and is decreasing, implying neutral internal strength with a slight downward tilt; combined with a price that trades beneath the 20‑day average ($24.59) but roughly in line with the 50‑ and 200‑day averages ($23.78 and $23.79), the technical picture favors consolidation near current levels rather than directional expansion.

Price sits just above the superTrend lower band at $23.72 (close $23.82) and below the 1× Bollinger midpoint; lower than short‑term volatility and reduced daily volume (current volume 90,656 vs. 10‑day average 95,076) suggest muted participation that may delay decisive moves despite the valuation impetus. Beta metrics (42‑day 0.61, 52‑week 0.98) confirm below‑market recent volatility.

 


Fundamental Analysis

Earnings: Q1 results delivered diluted EPS of $0.61 vs. an estimate of $0.53, generating a roughly 15.1% upside to consensus. Net income for the quarter totaled $13.675 million and retained cash and capital levels increased modestly on the period.

Profitability and returns: Return on assets registers 0.41% and return on equity 4.07%, both above the industry peer mean values provided, reflecting efficient use of equity and asset bases relative to regional peers. Earnings growth shows divergent signals: the provided year‑over‑year earnings change measures negative (‑54.51% YoY) while other trailing indicators note positive operating momentum; revenue grew ~5.97% YoY and ~5.04% QoQ, supporting top‑line expansion.

Capital structure and liquidity: Debt levels remain low—debt to assets at 2.79% and debt to equity near 27.85%—both below the industry peer means, while cash balances of $154.9 million and operating cash flow of $27.2 million support near‑term liquidity. The company has progressed registration/exchange activity around $60.0 million of subordinated notes as part of capital management.

Valuation and cash generation: P/B stands at 1.60, above the industry peer mean (≈1.27) and median (≈1.22) but below the peer high; P/E at 39.65 sits below the industry peer mean (≈50.65) and slightly above the peer median (≈38.27). Free cash flow yield measures ~4.52%, notably above the industry peer mean (~1.09%), supporting the WMDST valuation view. Book value per share approximates $15.10; dividend yield of ~0.66% carries a payout ratio near 26.0% with coverage of ~3.84x. WMDST values the stock as under‑valued given cash‑flow yield, conservative leverage, and above‑peer returns on capital.

MOST-RECENT QUARTERLY REPORT
REPORT PERIOD ENDING: 2026-03-31
REPORT DATE: 2026-04-22
NEXT REPORT DATE: 2026-07-22
CASH FLOW  Begin Period Cash Flow 145.9 M
 Operating Cash Flow 27.2 M
 Capital Expenditures -2.89 M
 Change In Working Capital -8.07 M
 Dividends Paid -3.56 M
 Cash Flow Delta 9.0 M
 End Period Cash Flow 154.9 M
 
INCOME STATEMENT REVENUE
 Total Revenue 49.5 M
 Forward Revenue 13.9 M
COSTS
 Cost Of Revenue
 Depreciation 855.0 K
 Depreciation and Amortization 855.0 K
 Research and Development
 Total Operating Expenses
PROFITABILITY
 Gross Profit
 EBITDA
 EBIT
 Operating Income
 Interest Income 44.6 M
 Interest Expense 10.2 M
 Net Interest Income 34.4 M
 Income Before Tax 18.0 M
 Tax Provision 4.3 M
 Tax Rate 23.85 %
 Net Income 13.7 M
 Net Income From Continuing Operations 13.7 M
EARNINGS
 EPS Estimate 0.53
 EPS Actual 0.61
 EPS Difference 0.08
 EPS Surprise 15.094 %
 Forward EPS 0.69
 
BALANCE SHEET ASSETS
 Total Assets 3.4 B
 Intangible Assets 79.2 M
 Net Tangible Assets 256.6 M
 Total Current Assets
 Cash and Short-Term Investments
 Cash 154.9 M
 Net Receivables
 Inventory
 Long-Term Investments
LIABILITIES
 Accounts Payable
 Short-Term Debt
 Total Current Liabilities
 Net Debt
 Total Debt 93.5 M
 Total Liabilities 3.0 B
EQUITY
 Total Equity 335.8 M
 Retained Earnings 319.7 M
VALUATION & PER-SHARE METRICS EQUITY & PER-SHARE METRICS
 Book Value Per-Share 15.10
 Shares Outstanding 22.245 M
 Revenue Per-Share 2.23
VALUATION
 Market Capitalization 538.0 M
 Enterprise Value 631.5 M
 Enterprise Multiple
Enterprise Multiple QoQ
Enterprise Multiple YoY
Enterprise Multiple IPRWA
 EV/R 12.747
CAPITAL STRUCTURE
 Asset To Equity 9.991
 Asset To Liability 1.111
 Debt To Capital 0.218
 Debt To Assets 0.028
Debt To Assets QoQ 4.578 %
Debt To Assets YoY 181.231 %
Debt To Assets IPRWA high: 0.102
median: 0.066
mean: 0.065
NRIM: 0.028
low: 0.001
 Debt To Equity 0.278
Debt To Equity QoQ 3.717 %
Debt To Equity YoY 150.256 %
Debt To Equity IPRWA high: 1.386
median: 0.612
mean: 0.612
NRIM: 0.278
low: 0.011
PRICE-BASED VALUATION
 Price To Book (P/B) 1.602
Price To Book QoQ -8.742 %
Price To Book YoY 8.155 %
Price To Book IPRWA high: 1.989
NRIM: 1.602
mean: 1.269
median: 1.216
low: 0.287
 Price To Earnings (P/E) 39.647
Price To Earnings QoQ -17.419 %
Price To Earnings YoY 30.998 %
Price To Earnings IPRWA high: 85.229
mean: 50.649
NRIM: 39.647
median: 38.267
low: 28.296
 PE/G Ratio 3.058
 Price To Sales (P/S) 10.86
Price To Sales QoQ 24.778 %
Price To Sales YoY 19.231 %
Price To Sales IPRWA high: 21.108
mean: 14.376
median: 13.922
NRIM: 10.86
low: 2.931
FORWARD MULTIPLES
Forward P/E 35.047
Forward PE/G 2.704
Forward P/S 38.842
EFFICIENCY OPERATIONAL
 Operating Leverage
ASSET & SALES
 Asset Turnover Ratio 0.015
Asset Turnover Ratio QoQ -25.263 %
Asset Turnover Ratio YoY 1.291 %
Asset Turnover Ratio IPRWA NRIM: 0.015
high: 0.014
mean: 0.01
median: 0.01
low: 0.007
 Receivables Turnover
Receivables Turnover Ratio QoQ
Receivables Turnover Ratio YoY
Receivables Turnover Ratio IPRWA
 Inventory Turnover
Inventory Turnover Ratio QoQ
Inventory Turnover Ratio YoY
Inventory Turnover Ratio IPRWA
 Days Sales Outstanding (DSO)
CASH CYCLE
 Cash Conversion Cycle Days (CCC)
Cash Conversion Cycle Days QoQ
Cash Conversion Cycle Days YoY
Cash Conversion Cycle Days IPRWA
CAPITAL DEPLOYMENT
 Cash Conversion Ratio
 CapEx To Revenue -0.058
 CapEx To Depreciation -3.381
 
CAPITAL, LIQUIDITY & COVERAGE CAPITAL STRUCTURE
 Total Capital 417.5 M
 Net Invested Capital 417.5 M
 Invested Capital 417.5 M
 Net Tangible Assets 256.6 M
 Net Working Capital
LIQUIDITY
 Cash Ratio
 Current Ratio
Current Ratio QoQ
Current Ratio YoY
Current Ratio IPRWA
 Quick Ratio
Quick Ratio QoQ
Quick Ratio YoY
Quick Ratio IPRWA
COVERAGE & LEVERAGE
 Debt To EBITDA
 Cost Of Debt 13.606 %
 Interest Coverage Ratio
Interest Coverage Ratio QoQ
Interest Coverage Ratio YoY
Interest Coverage Ratio IPRWA
 Operating Cash Flow Ratio
TIMING / LIQUIDITY
 Days Payables Outstanding (DPO)
DIVIDENDS
 Dividend Coverage Ratio 3.845
 Dividend Payout Ratio 0.26
 Dividend Rate 0.16
 Dividend Yield 0.007
PERFORMANCE GROWTH
 Asset Growth Rate 1.964 %
 Revenue Growth 25.765 %
Revenue Growth QoQ 504.245 %
Revenue Growth YoY 596.54 %
Revenue Growth IPRWA NRIM: 25.765 %
high: 20.29 %
mean: 5.281 %
median: -1.203 %
low: -18.912 %
 Earnings Growth 12.963 %
Earnings Growth QoQ -154.139 %
Earnings Growth YoY -54.511 %
Earnings Growth IPRWA high: 41.86 %
NRIM: 12.963 %
mean: -3.248 %
median: -11.702 %
low: -43.519 %
MARGINS
 Gross Margin
Gross Margin QoQ
Gross Margin YoY
Gross Margin IPRWA
 EBIT Margin
EBIT Margin QoQ
EBIT Margin YoY
EBIT Margin IPRWA
 Return On Sales (ROS)
Return On Sales QoQ
Return On Sales YoY
Return On Sales IPRWA
CASH FLOW
 Free Cash Flow (FCF) 24.3 M
 Free Cash Flow Yield 4.522 %
Free Cash Flow Yield QoQ -19.794 %
Free Cash Flow Yield YoY 14.742 %
Free Cash Flow Yield IPRWA high: 6.259 %
NRIM: 4.522 %
mean: 1.088 %
median: 0.918 %
low: -2.878 %
 Free Cash Growth -24.739 %
Free Cash Growth QoQ -61.385 %
Free Cash Growth YoY -55.675 %
Free Cash Growth IPRWA high: 290.796 %
NRIM: -24.739 %
median: -50.617 %
mean: -71.07 %
low: -309.536 %
 Free Cash To Net Income 1.779
 Cash Flow Margin 29.33 %
 Cash Flow To Earnings 1.063
VALUE & RETURNS
 Economic Value Added 0.05
 Return On Assets (ROA) 0.412 %
Return On Assets QoQ 9.284 %
Return On Assets YoY -4.408 %
Return On Assets IPRWA high: 0.513 %
NRIM: 0.412 %
mean: 0.225 %
median: 0.205 %
low: 0.065 %
 Return On Capital Employed (ROCE)
 Return On Equity (ROE) 0.041
Return On Equity QoQ 6.877 %
Return On Equity YoY -14.508 %
Return On Equity IPRWA high: 0.041
NRIM: 0.041
mean: 0.02
median: 0.018
low: 0.005
 DuPont ROE 4.129 %
 Return On Invested Capital (ROIC)
Return On Invested Capital QoQ
Return On Invested Capital YoY
Return On Invested Capital IPRWA

Six-Week Outlook

Technically, the absence of a strong ADX trend suggests price action should remain range‑bound unless momentum indicators reverse; MACD and declining RSI favor continued consolidation or mild pullback toward short‑term support near $23.7. Valuation‑driven indicators (negative MRO and elevated free‑cash‑flow yield) introduce asymmetric upside potential if participation increases and the subordinated‑notes registration proceeds without dilution concerns. Watch for a stabilization above the superTrend lower support and any MACD crossover above its signal line as confirmation that momentum has resumed in the direction implied by valuation metrics; conversely, renewed DI‑ strength and falling RSI would indicate further consolidation around the current range.

About Northrim BanCorp, Inc.

Northrim BanCorp, Inc. (NASDAQ:NRIM) serves as the bank holding company for Northrim Bank, delivering a comprehensive range of commercial banking products and services tailored to businesses and professionals. The company segments its operations into Community Banking and Home Mortgage Lending. Northrim BanCorp offers a variety of deposit products, including noninterest-bearing checking accounts, interest-bearing time deposits, savings accounts, individual retirement accounts, money market accounts, and certificates of deposit. In the lending sphere, the company provides short and medium-term commercial loans, commercial credit lines, construction loans, real estate loans, and consumer loans. Northrim BanCorp enhances customer convenience through digital services such as consumer and business online banking, mobile banking apps, and mobile deposits. The company also issues debit and credit cards and offers services like retail lockbox, card control, and corporate purchase cards. Additional services include investment advisory, trust and wealth management, factoring, and mortgage services. Northrim BanCorp extends its financial solutions with products like annuities, long-term investment portfolios, and cash management services. Founded in 1990, Northrim BanCorp maintains its headquarters in Anchorage, Alaska, focusing on providing personalized and efficient banking solutions.



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