Core Viewpoint - Northrim BanCorp, Inc. has successfully completed a private placement of $60 million in subordinated notes, which will enhance its regulatory capital and support growth initiatives [1][2]. Group 1: Financial Details - The subordinated notes have a fixed interest rate of 6.875% for the first five years, after which the rate will adjust quarterly to the three-month SOFR rate plus 348 basis points [2]. - The net proceeds from the private placement will be used for general corporate purposes and to support regulatory capital ratios [2]. Group 2: Legal and Regulatory Aspects - Northrim entered into a registration rights agreement with purchasers of the notes, allowing for the exchange of the notes for registered subordinated notes under the Securities Act [3]. - The notes are intended to qualify as Tier 2 capital for regulatory purposes [2]. Group 3: Company Overview - Northrim is the holding company for Northrim Bank, which operates 20 branches in Alaska and focuses on customer service and knowledge of the local economy [6]. - The company also has subsidiaries involved in factoring, asset-based lending, and regional home mortgage services [6].

Core Insights - Major U.S. stock indices ended positively on Nov. 25, 2025, driven by investor optimism and an 83% probability of a quarter-percentage-point rate cut by the central bank in December [1][2] Group 1: Investment Recommendations - Companies recommended for investment include Federal Signal Corp. (FSS), Jones Lang LaSalle (JLL), Northrip Bancorp (NRIM), Safran SA (SAFRY), and Engie (ENGIY), as they carry low leverage and may offer stability during market volatility [3][10] - FSS reported a 30% year-over-year increase in adjusted EPS and 17% revenue growth for Q3 2025, with a Zacks Rank of 2 [14][15] - JLL's adjusted EPS surged 29% year-over-year, with a 10% revenue increase in local currency for Q3 2025, also holding a Zacks Rank of 2 [16][17] - NRIM's EPS soared 207.7% year-over-year, driven by asset sales and increased net interest income, with a Zacks Rank of 2 [18][19] - Safran expects a 39.9% year-over-year improvement in sales for 2025, with a long-term earnings growth rate of 20.5% and a Zacks Rank of 2 [20][21] - Engie announced a new 280 MW/560 MWh Battery Energy Storage System project in India, with a projected 30.7% earnings improvement for 2025 and a Zacks Rank of 2 [21][22] Group 2: Financial Metrics and Analysis - Leverage is defined as the use of borrowed capital for operations and expansion, with a focus on avoiding companies that excessively rely on debt financing [4][5] - The debt-to-equity ratio is a key metric for assessing financial risk, with lower ratios indicating better solvency [6][7] - A strategy focusing on stocks with low debt-to-equity ratios is recommended for steady returns, especially during economic downturns [9][10] - Additional screening criteria for stock selection include being less leveraged than industry peers, trading at a minimum price of $10, having substantial trading volume, and showing positive earnings growth expectations [12][13]

Core Viewpoint - Investors are increasingly seeking growth stocks that demonstrate above-average growth potential, with Northrim BanCorp (NRIM) identified as a strong candidate due to its favorable growth metrics and Zacks Rank [2][9]. Group 1: Earnings Growth - Northrim's historical EPS growth rate stands at 5.1%, but projected EPS growth for this year is expected to be 51.1%, significantly surpassing the industry average of 10.8% [4]. Group 2: Cash Flow Growth - Northrim exhibits a year-over-year cash flow growth of 40.3%, which is notably higher than the industry average of -11.3% [5]. - The company's annualized cash flow growth rate over the past 3-5 years is 10.6%, compared to the industry average of 4.1% [6]. Group 3: Earnings Estimate Revisions - There has been a positive trend in earnings estimate revisions for Northrim, with the Zacks Consensus Estimate for the current year increasing by 6.6% over the past month [7]. Group 4: Overall Assessment - Northrim has achieved a Zacks Rank of 1 (Strong Buy) and a Growth Score of B, indicating its potential as an outperformer and a solid choice for growth investors [9].

Northrim BanCorp (NRIM) appears an attractive pick given a noticeable improvement in the company's earnings outlook. The stock has been a strong performer lately, and the momentum might continue with analysts still raising their earnings estimates for the company.Analysts' growing optimism on the earnings prospects of this holding company for Northrim Bank is driving estimates higher, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in ea ...

Group 1: Roku - Roku is the leading TV streaming platform provider in the United States, Canada, and Mexico, with a Zacks Rank 1 (Strong Buy) [1] - The Zacks Consensus Estimate for Roku's current year earnings increased by 83.3% over the last 60 days [1] - Roku's shares gained 8% over the last three months, outperforming the S&P 500's gain of 4.5% [2] Group 2: Northrim BanCorp - Northrim BanCorp is a full-service commercial bank offering a complete range of personal and business banking services, with a Zacks Rank 1 [2] - The Zacks Consensus Estimate for Northrim BanCorp's current year earnings increased by 6.4% over the last 60 days [2] - Northrim BanCorp's shares gained 6.5% over the last three months, also outperforming the S&P 500's gain of 4.5% [3] Group 3: Electromed - Electromed manufactures, markets, and sells products that provide airway clearance therapy to patients with compromised pulmonary function, holding a Zacks Rank 1 [3] - The Zacks Consensus Estimate for Electromed's current year earnings increased by 2.9% over the last 60 days [3] - Electromed's shares gained 28.3% over the last three months, significantly outperforming the S&P 500's gain of 4.5% [4]

Core Insights - Five stocks have been added to the Zacks Rank 1 (Strong Buy) List, indicating strong potential for investment Group 1: Company Performance - Roku (ROKU) is the leading TV streaming platform provider in the U.S., Canada, and Mexico, with a Zacks Consensus Estimate for current year earnings increasing by 83.3% over the last 60 days [1] - AvePoint (AVPT), a data management solutions provider, has seen its Zacks Consensus Estimate for current year earnings increase by 18.5% over the last 60 days [1] - eToro Group Ltd. (ETOR), engaged in trading and investing, has experienced an 8% increase in its Zacks Consensus Estimate for current year earnings over the last 60 days [2] - Northrim BanCorp (NRIM), a full-service commercial bank, has seen a 6.4% increase in its Zacks Consensus Estimate for current year earnings over the last 60 days [2] - OptimizeRx (OPRX), which provides platforms to help patients afford and comply with healthcare products, has seen a 6% increase in its Zacks Consensus Estimate for current year earnings over the last 60 days [3]

Core Viewpoint - KBRA has assigned various ratings to Northrim BanCorp, Inc. and its subsidiary, Northrim Bank, reflecting the company's strong earnings power and stable outlook [1][2]. Ratings Summary - Northrim BanCorp, Inc. received a senior unsecured debt rating of BBB, a subordinated debt rating of BBB-, and a short-term debt rating of K3 [1]. - Northrim Bank was assigned deposit and senior unsecured debt ratings of BBB+, a subordinated debt rating of BBB, and short-term deposit and debt ratings of K2, with a stable outlook for all long-term ratings [1]. Earnings and Financial Performance - The company's strong earnings power is supported by a low-cost deposit franchise and a higher-yielding commercial loan portfolio, contributing to an above-average net interest margin (NIM) [2]. - Northrim reported a core return on assets (ROA) of 1.7% through the first nine months of 2025, benefiting from organic loan growth and a shift towards higher-yielding loans [2]. - The acquisition of Sallyport Commercial Finance, LLC in the fourth quarter of 2024 has bolstered noninterest income contributions [2]. Capital and Asset Quality - Capital levels have decreased due to strong organic loan growth and share repurchases, with the common equity tier 1 (CET1) ratio falling to 9.4% as of the second quarter of 2025 [2]. - A pre-tax gain of $14.2 million from the sale of a minority interest in Pacific Wealth Advisors contributed 20 basis points to CET1, improving it to 10.3% by the third quarter of 2025 [2]. - The company has maintained minimal net charge-offs (NCOs), averaging just 1 basis point over the past five years, indicating strong asset quality [2]. Market Position and Funding - Northrim has increased its deposit market share in Alaska to 18% as of the second quarter of 2025, up from 10% in 2017, benefiting from a less competitive environment with only seven banks in the region [2]. - The cost of funds for Northrim is lower than similarly rated peers, recorded at 1.47% for the third quarter of 2025 [2].

Core Viewpoint - KBRA has assigned various ratings to Northrim BanCorp, Inc. and its subsidiary, Northrim Bank, reflecting the company's strong earnings power and stable outlook [1][2]. Ratings Summary - Northrim BanCorp, Inc. received a senior unsecured debt rating of BBB, a subordinated debt rating of BBB-, and a short-term debt rating of K3 [1]. - Northrim Bank was assigned deposit and senior unsecured debt ratings of BBB+, a subordinated debt rating of BBB, and short-term deposit and debt ratings of K2 [1]. Earnings and Financial Performance - The company's strong earnings power is supported by a low-cost deposit franchise and a higher-yielding commercial loan portfolio, contributing to an above-average net interest margin (NIM) [2]. - Northrim reported a core return on assets (ROA) of 1.7% through the first nine months of 2025, benefiting from organic loan growth and a shift towards higher-yielding loans [2]. - The acquisition of Sallyport Commercial Finance, LLC in the fourth quarter of 2024 has bolstered noninterest income contributions [2]. Capital and Asset Quality - Capital levels have decreased due to strong organic loan growth and share repurchases, with the common equity tier 1 (CET1) ratio falling to 9.4% as of the second quarter of 2025 [2]. - A pre-tax gain of $14.2 million from the sale of a minority interest in Pacific Wealth Advisors contributed 20 basis points to CET1, improving it to 10.3% by the third quarter of 2025 [2]. - The company has maintained minimal net charge-offs (NCOs), averaging just 1 basis point over the past five years, indicating strong asset quality [2]. Market Position and Funding - Northrim has increased its deposit market share in Alaska to 18% as of the second quarter of 2025, up from 10% in 2017, benefiting from a less competitive environment [2]. - The cost of funds for Northrim is lower than similarly rated peers, recorded at 1.47% for the third quarter of 2025 [2].

Financial Performance - The Company reported net income of $27.1 million and earnings per diluted share of $1.20 for Q3 2025, compared to $8.8 million and $0.39 for Q3 2024, representing a significant increase [141]. - For the first nine months of 2025, net income was $52.2 million with earnings per diluted share of $2.32, up from $26.0 million and $1.17 in the same period of 2024 [141]. - Net income for Q3 2025 increased by $18.2 million to $27.1 million compared to $8.8 million in Q3 2024, driven by a $14.2 million gain on asset sales and a $6.5 million increase in net interest income [145]. - The Community Banking segment's net income increased by $15.2 million or 214% in Q3 2025, primarily due to the asset sale gain and a $6.4 million increase in net interest income [150]. - Home Mortgage Lending segment's net income rose by $579,000 or 45% in Q3 2025, attributed to a decrease in the provision for credit losses and higher mortgage servicing revenue [154]. - Specialty Finance segment's net income surged by $2.5 million or 541% in Q3 2025, largely due to the acquisition of Sallyport [162]. Loan and Deposit Growth - Portfolio loans reached $2.22 billion at September 30, 2025, an 11% increase year-over-year, driven by new customer relationships and market share expansion [141]. - Total deposits were $2.91 billion at September 30, 2025, up 11% from $2.63 billion a year ago, with non-interest bearing demand deposits increasing 14% to $872.1 million [141]. - Total loans in the commercial real estate sector reached $1.15 billion, accounting for 52.7% of the total loan portfolio as of September 30, 2025 [187]. - Demand deposits rose to $872.1 million, representing 30% of total deposits, up from 27% at the end of 2024 [195]. - Total deposits increased by $226.3 million, or 8%, to $2.91 billion as of September 30, 2025, compared to $2.68 billion as of December 31, 2024 [195]. Interest Income and Margin - The net interest margin improved to 4.83% for Q3 2025, up 54 basis points from the previous year [142]. - Net interest income for Q3 2025 increased by 23% or $6.5 million to $35.3 million compared to $28.8 million in Q3 2024 [166]. - Interest income increased by $6,562,000, a 17% rise compared to the same period in 2024, driven primarily by a $6,055,000 increase in loans [172]. - The net interest margin increased by 54 basis points to 4.83% in Q3 2025 compared to 4.29% in Q3 2024, reflecting a favorable change in earning-assets mix [166]. - Average loans to average interest-earning assets ratio increased to 75.89% from 72.29% year-over-year [170]. Credit Quality and Losses - Nonperforming loans, net of government guarantees, rose by $3.7 million or 49% to $11.3 million as of September 30, 2025, from $7.5 million at December 31, 2024 [143]. - Potential problem loans increased significantly to $28.7 million as of September 30, 2025, up from $1.6 million at December 31, 2024 [144]. - The provision for credit losses in the Community Banking segment was $1.6 million in Q3 2025, slightly up from $1.5 million in the same quarter last year [151]. - The company reported net loan charge-offs of $1.2 million for the quarter ended September 30, 2025, compared to a recovery of $51,000 in the same quarter of the previous year [192]. - The allowance for credit losses (ACL) for loans held for investment increased by $1.3 million from December 31, 2024, primarily due to higher loan balances and increased estimated loss rates [194]. Capital and Liquidity - The total risk-based capital ratio was 11.56% as of September 30, 2025, exceeding the minimum requirement of 8.00% [211]. - The Company had cash and cash equivalents of $212.7 million, or 6% of total assets, as of September 30, 2025, up from $62.7 million, or 2%, at December 31, 2024 [205]. - The Company expects to continue receiving dividends from the Bank during the remainder of 2025, as it meets all applicable capital adequacy requirements [203]. - The Company had no long-term borrowings outstanding other than FHLB advances as of September 30, 2025 [202]. Operating Expenses - Other operating expenses for the nine months ended September 30, 2025, increased by $15.4 million, or 20%, to $91.0 million, driven by higher salaries and personnel expenses [182]. - The provision for credit losses for the nine months ended September 30, 2025, was $2.6 million, compared to $2.1 million for the same period in 2024 [193]. Market and Investment - Investment securities decreased by 11% to $464.3 million as of September 30, 2025, from $524.1 million at December 31, 2024, primarily due to maturities and calls of available for sale securities [185]. - The average estimated duration of the investment portfolio was approximately 2.16 years as of September 30, 2025 [186]. - The company reported a 64% increase in nonearning assets, totaling $322,825,000 compared to $196,266,000 in the previous year [170].

Core Insights - Northrim BanCorp (NRIM) reported quarterly earnings of $0.72 per share, exceeding the Zacks Consensus Estimate of $0.62 per share, and showing an increase from $0.39 per share a year ago, resulting in an earnings surprise of +16.13% [1] - The company achieved revenues of $66.59 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 30.30%, compared to $40.43 million in the same quarter last year [2] Financial Performance - Over the last four quarters, Northrim has exceeded consensus EPS estimates three times and topped consensus revenue estimates four times [2] - The current consensus EPS estimate for the upcoming quarter is $0.60 on revenues of $49.9 million, while for the current fiscal year, it is $2.35 on revenues of $197.8 million [7] Market Position - Northrim shares have increased by approximately 7.7% since the beginning of the year, while the S&P 500 has gained 14.5% [3] - The Zacks Industry Rank for Banks - West, to which Northrim belongs, is currently in the bottom 37% of over 250 Zacks industries, indicating potential challenges in outperforming the market [8] Future Outlook - The sustainability of Northrim's stock price movement will largely depend on management's commentary during the earnings call and the trends in earnings estimate revisions [3][4] - The estimate revisions trend for Northrim was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, suggesting it is expected to perform in line with the market in the near future [6]