Market Overview - U.S. stock markets are experiencing a positive trend after recent volatility, with the S&P 500 near its all-time high, and both the Nasdaq Composite and Dow showing positive year-to-date performance [1] - Factors contributing to this market sentiment include ongoing U.S.-China trade negotiations, stability in the U.S. labor market, and a declining inflation rate, which have encouraged investment in equities [2] Stock Performance - A selection of stocks has demonstrated significant price strength, particularly those on a bull run, indicating potential for continued momentum [2][3] - Five highlighted stocks include Sezzle Inc. (SEZL), Dycom Industries Inc. (DY), Tutor Perini Corp. (TPC), Limbach Holdings Inc. (LMB), and Northrim BanCorp Inc. (NRIM) [3] Screening Parameters - Stocks were screened based on several criteria, including: - Percentage Change in Price (4 Weeks) greater than zero, indicating recent upward movement [5] - Percentage Change Price (12 Weeks) greater than 10%, suggesting sustained momentum over three months [5] - Zacks Rank 1, indicating a strong buy rating with historical outperformance [6] - Average Broker Rating of 1, reflecting positive broker sentiment [6] - Current Price above $5, ensuring stocks are trading at a reasonable level [6] - Current Price/52-Week High-Low Range greater than 85%, indicating strong price performance [7] Individual Stock Highlights - **Sezzle Inc. (SEZL)**: Stock price surged 35.7% in four weeks, with expected earnings growth of 76.1% for the current year [8][9] - **Dycom Industries Inc. (DY)**: Stock price increased 20.3% in four weeks, with a revenue outlook raised for fiscal 2026 after strong Q1 results, and expected earnings growth of 13.2% [10][12] - **Tutor Perini Corp. (TPC)**: Stock price rose 12.8% in four weeks, with expected earnings growth exceeding 100% for the current year [16] - **Limbach Holdings Inc. (LMB)**: Stock price advanced 10.8% in four weeks, with expected earnings growth of 21.9% [18] - **Northrim BanCorp Inc. (NRIM)**: Stock price increased 4.9% in four weeks, with expected earnings growth of 45.9% [20]

Core Viewpoint - Northrim BanCorp (NRIM) shows a significant improvement in earnings outlook, making it an attractive investment option as analysts continue to raise earnings estimates for the company [1][2]. Earnings Estimate Revisions - The upward trend in earnings estimate revisions reflects growing optimism among analysts regarding Northrim's earnings prospects, which is expected to positively impact its stock price [2]. - The Zacks Rank system indicates a strong correlation between earnings estimate revisions and near-term stock price movements, with Northrim benefiting from this trend [2][3]. Current Quarter and Year Estimates - For the current quarter, Northrim is expected to earn $2.26 per share, representing a year-over-year increase of +39.51%, with a 17.1% increase in the Zacks Consensus Estimate over the last 30 days [5]. - For the full year, the expected earnings per share is $9.66, reflecting a year-over-year change of +45.92%, with a 20% increase in consensus estimates over the past month [6][7]. Zacks Rank and Performance - Northrim currently holds a Zacks Rank 1 (Strong Buy), indicating strong agreement among analysts in revising earnings estimates upward, which historically leads to outperformance [8]. - Stocks with Zacks Rank 1 and 2 have shown significant outperformance compared to the S&P 500 [8]. Recent Stock Performance - Northrim shares have increased by 22.7% over the past four weeks, indicating investor confidence in the company's earnings growth prospects [9].

Northrim BanCorp Inc (NRIM) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, NRIM's 50-day simple moving average broke out above its 200-day moving average; this is known as a "golden cross."Considered an important signifier for a bullish breakout, a golden cross is a technical chart pattern that's formed when a stock's short-term moving average breaks above a longer-term moving average; the most common crossover involves the 50-day and the ...

Group 1 - Northrim BanCorp has a market capitalization of $402.3 million, indicating it is a relatively small financial institution [1] - The company continues to surprise with its performance, suggesting potential for growth and value [1] Group 2 - Crude Value Insights offers an investing service focused on oil and natural gas, emphasizing cash flow and companies that generate it [1] - The service includes a 50+ stock model account and in-depth cash flow analyses of exploration and production firms [2] - Subscribers can participate in live chat discussions about the sector, enhancing community engagement [2]

Financial Performance - The Company reported net income of $13.3 million and earnings per diluted share of $2.38 for Q1 2025, compared to $8.2 million and $1.48 for Q1 2024, reflecting a significant increase in purchased receivable income and net interest income [130]. - Net income for Q1 2025 increased by $5.1 million to $13.3 million compared to $8.2 million in Q1 2024, driven by higher purchased receivable income and net interest income [135]. - Other operating income surged by $6.4 million, or 81%, to $14.2 million in Q1 2025, primarily due to a $4.8 million increase in purchased receivable income [147]. - Northrim's effective tax rate increased to 24.19% in Q1 2025 from 21.94% in Q1 2024, with income tax expense rising to $4.3 million [149]. Interest Income and Loans - Net interest income increased by 18% to $31.3 million in Q1 2025 from $26.4 million in Q1 2024, with a net interest margin of 4.55%, up 31 basis points year-over-year [132]. - Net interest income rose 18% or $4.9 million to $31.3 million in Q1 2025, up from $26.4 million in Q1 2024, with a net interest margin increase of 31 basis points to 4.55% [137]. - The average yield on loans increased to 6.89% in Q1 2025 from 6.75% in Q1 2024, while the average yield on interest-earning assets rose to 6.03% [141]. - Total loans slightly decreased by $4.9 million to $2.124 billion as of March 31, 2025, from $2.129 billion at December 31, 2024, mainly due to the reclassification of $100.4 million in residential properties [152]. Deposits and Funding - Total deposits reached $2.78 billion at March 31, 2025, a 4% increase from December 31, 2024, with demand deposits representing 27% of total deposits [132]. - Total deposits increased by $97.8 million, or 4%, to $2.78 billion as of March 31, 2025, compared to $2.68 billion at December 31, 2024 [161]. - Uninsured deposits totaled approximately $1.04 billion, or 37% of total deposits, as of March 31, 2025, down from $1.1 billion, or 40%, at December 31, 2024 [163]. - The company's mix of deposits contributed to a low cost of funds, with transaction accounts representing 86% of total deposits as of March 31, 2025 [161]. Asset Quality - Nonperforming loans increased by 6% to $8.0 million as of March 31, 2025, primarily due to the addition of four loans in the first three months of 2025 [133]. - Potential problem loans identified by management increased significantly to $12.5 million at March 31, 2025, up from $1.6 million at December 31, 2024 [134]. - Nonperforming loans increased to $8.068 million as of March 31, 2025, from $7.533 million at December 31, 2024 [156]. - The allowance for credit losses (ACL) for loans held for investment decreased by $1.1 million from December 31, 2024, primarily due to the reclassification of loans [160]. Investments and Securities - Investment securities decreased by 3% to $508.5 million as of March 31, 2025, from $524.1 million at December 31, 2024, primarily due to maturities and calls [150]. - The fair value of marketable equity securities increased by $364,000 in Q1 2025 compared to the same quarter in 2024 [147]. - The average estimated duration of the investment portfolio was approximately 2.4 years as of March 31, 2025, with $319.4 million or 11% of earning assets scheduled to mature in the next 24 months [151]. - The Company’s accumulated unrealized losses on available for sale securities were $5.5 million as of March 31, 2025 [170]. Capital and Borrowing - The Company met all applicable capital adequacy requirements for a "well-capitalized" institution, with total risk-based capital at 10.62% and Tier 1 risk-based capital at 9.76% as of March 31, 2025 [176]. - The Company had cash and cash equivalents of $65.5 million, representing 2% of total assets, an increase from $62.7 million at December 31, 2024 [170]. - The Company had total unfunded commitments to fund loans and letters of credit of $523.2 million as of March 31, 2025 [170]. - As of March 31, 2025, the Company's maximum borrowing line from the FHLB is $374.8 million, which is approximately 45% of the Bank's assets [164]. Employment and Economic Indicators - The unemployment rate in Alaska was reported at 4.7% in February 2025, compared to the U.S. rate of 4.1%, with a total payroll job increase of 1.6% year-over-year [118]. - Alaska's Gross State Product (GSP) reached $70 billion in 2024, with a real GSP increase of 1.5% for the year, outperforming the national average [121]. - The average sales price of single-family homes in Anchorage rose by 6.2% in 2024 to $510,109, marking the seventh consecutive year of price increases [126]. Shareholder Information - The Company has 10.0 million authorized shares of common stock, with approximately 5.5 million issued and outstanding, leaving 4.5 million shares available for issuance [168]. - The Company had no long-term borrowings outstanding other than the FHLB advances as of March 31, 2025 [167]. - The Company had no short-term borrowings exceeding 30% of shareholders' equity as of March 31, 2025 [166].

Financial Performance - Northrim BanCorp reported net income of $13.3 million, or $2.38 per diluted share, in Q1 2025, up from $10.9 million, or $1.95 per diluted share, in Q4 2024, and $8.2 million, or $1.48 per diluted share, in Q1 2024[1]. - Net interest income increased 1% to $31.3 million in Q1 2025 compared to $30.8 million in Q4 2024, and increased 18% from $26.4 million in Q1 2024[3]. - Return on average assets (ROAA) was 1.76% and return on average equity (ROAE) was 19.70% for Q1 2025, compared to 1.19% and 13.84% in Q1 2024[3]. - Net income for the first quarter of 2025 was $13.3 million, compared to $10.9 million in the fourth quarter of 2024, representing a 22.7% increase[64]. - Basic EPS for the first quarter of 2025 was $2.41, up from $1.99 in the previous quarter and $1.49 a year ago[64]. Deposits and Loans - Total deposits reached $2.78 billion at March 31, 2025, up 4% from the preceding quarter and up 14% from $2.43 billion a year ago[3]. - Portfolio loans were $2.12 billion at March 31, 2025, down slightly from the preceding quarter but up 17% from a year ago[3]. - Non-interest bearing demand deposits increased 5% from the preceding quarter to $742.6 million, representing 27% of total deposits[3]. - Average portfolio loans were $2.17 billion in Q1 2025, up 5% from the previous quarter and up 21% year-over-year[49]. - The loan-to-deposit ratio decreased to 76% at March 31, 2025, down from 79% at December 31, 2024[41]. Interest Income and Margin - Total interest income for the first quarter of 2025 was $41.6 million, compared to $41.8 million in the previous quarter and $35.8 million a year ago[64]. - NIMTE increased to 4.61% in Q1 2025, up from 4.47% in Q4 2024 and 4.22% in Q1 2024, driven by a favorable mix of earning-assets and lower deposit costs[18]. - Average yield on interest-earning assets was 6.10% in Q1 2025, up from 6.02% in Q4 2024[44]. - The net interest margin (NIM) improved to 4.55% for the quarter ended March 31, 2025, compared to 4.41% in the previous quarter[72]. Operating Expenses and Efficiency - Operating expenses were $29.3 million in Q1 2025, slightly down from $29.4 million in Q4 2024 and up from $23.6 million in Q1 2024[24]. - The efficiency ratio improved to 64.47% in Q1 2025 from 66.96% in Q4 2024[4]. - The cost of funds decreased to 1.52% for the quarter ended March 31, 2025, down from 1.59% in the previous quarter[70]. Nonperforming Loans and Credit Losses - Nonperforming loans increased to $8.0 million as of March 31, 2025, from $7.5 million at the end of Q4 2024 and $5.3 million a year ago[22]. - Provision for credit losses recorded a benefit of $1.4 million in Q1 2025, compared to a provision of $1.2 million in Q4 2024 and $149,000 in Q1 2024[19]. - Nonperforming assets (NPAs) rose to $12.3 million at March 31, 2025, up from $11.6 million at December 31, 2024, and $5.4 million a year ago[55]. - The allowance for credit losses for loans to portfolio loans ratio was 0.98% as of March 31, 2025, down from 1.03% on December 31, 2024[69]. Shareholder Equity - Shareholders' equity increased to $279.8 million, or $50.67 book value per share, as of March 31, 2025, up from $267.1 million, or $48.41 per share at December 31, 2024[53]. - Total shareholders' equity reached $279,756 thousand, an increase from $267,116 thousand at the end of the previous quarter, reflecting a growth of 4.1%[79]. - Tangible common equity to tangible assets ratio was 7.41% as of March 31, 2025, compared to 7.23% at December 31, 2024[79]. Mortgage Operations - Mortgage loan originations were $121.6 million in Q1 2025, down from $185.9 million in Q4 2024 but up from $101.7 million in Q1 2024[8]. - Mortgage loans funded for sale were $108.5 million in Q1 2025, down from $162.5 million in Q4 2024 and up from $84.3 million in Q1 2024[30]. - The Arizona, Colorado, and Pacific Northwest mortgage expansion markets accounted for 20% of total production in Q1 2025, contributing to a total production of $122 million[33]. - Mortgage loans serviced for others increased to $1.48 billion at March 31, 2025, up 1.6% from $1.46 billion at December 31, 2024[36].

Core Viewpoint - Northrim BanCorp reported strong financial performance in Q1 2025, with net income of $13.3 million, driven by increased purchased receivable income, higher net interest income, and improved mortgage banking income, despite higher operating expenses [1][3][5]. Financial Highlights - Net income for Q1 2025 was $13.3 million, or $2.38 per diluted share, compared to $10.9 million in Q4 2024 and $8.2 million in Q1 2024 [1]. - Total assets increased to $3.14 billion in Q1 2025 from $3.04 billion in Q4 2024 [4]. - Total deposits rose to $2.78 billion, up 4% from the previous quarter and 14% year-over-year [5]. - Net interest income increased by 1% to $31.3 million compared to $30.8 million in Q4 2024, and by 18% compared to $26.4 million in Q1 2024 [5][21]. - Return on average assets (ROAA) was 1.76% and return on average equity (ROAE) was 19.70% for Q1 2025, up from 1.19% and 13.84% respectively in Q1 2024 [5][20]. Dividends - Dividends per share increased to $0.64 in Q1 2025 from $0.62 in Q4 2024 and $0.61 in Q1 2024 [2]. Provision for Credit Losses - The company recorded a benefit to the provision for credit losses of $1.4 million in Q1 2025, compared to a provision of $1.2 million in Q4 2024 [23][24]. Specialty Finance Segment - The acquisition of Sallyport Commercial Finance contributed to increased purchased receivable income, with total pre-tax income for Sallyport at $1.3 million in Q1 2025 [42][44]. - Average purchased receivables and loan balances at Sallyport were $59.9 million, yielding 35.8% [45]. Community Banking Segment - Net interest income in the Community Banking segment totaled $28.2 million in Q1 2025, compared to $27.6 million in Q4 2024 [30]. - Other operating expenses in the Community Banking segment totaled $18.6 million, down from $19.1 million in Q4 2024 [31]. Home Mortgage Lending - Mortgage loans funded for sale were $108.5 million in Q1 2025, down from $162.5 million in Q4 2024 [34]. - The net change in fair value of mortgage servicing rights decreased mortgage banking income by $855,000 in Q1 2025 [38]. Economic Context - Alaska's unemployment rate was reported at 4.7% in February 2025, slightly higher than the U.S. rate of 4.1% [7]. - Alaska's Gross State Product (GSP) reached $70 billion in 2024, with a real GSP increase of 1.5% [11].

Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. But when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its ...

Core Viewpoint - Northrim BanCorp (NRIM) presents a compelling investment opportunity with a strong dividend yield and expected earnings growth, making it attractive for income investors [3][5][7]. Company Overview - Northrim BanCorp is headquartered in Anchorage and has experienced a price change of -12.36% this year [3]. - The company currently pays a dividend of $0.64 per share, resulting in a dividend yield of 3.75%, which is higher than the Banks - West industry's yield of 3.01% and the S&P 500's yield of 1.73% [3]. Dividend Analysis - The current annualized dividend of Northrim BanCorp is $2.56, reflecting a 4.1% increase from the previous year [4]. - Over the past five years, the company has increased its dividend five times, achieving an average annual increase of 17.33% [4]. - The current payout ratio is 37%, indicating that the company paid out 37% of its trailing 12-month earnings per share as dividends [4]. Earnings Growth Expectations - For the fiscal year 2025, the Zacks Consensus Estimate for Northrim BanCorp's earnings is $8.05 per share, which represents a year-over-year growth rate of 21.60% [5]. Investment Considerations - Dividends are favored by investors for various reasons, including improving stock investing profits and providing tax advantages [6]. - While tech start-ups and high-growth companies rarely offer dividends, larger, established companies like Northrim BanCorp do [7]. - The stock has a strong Zacks Rank of 2 (Buy), indicating positive market sentiment [7].

Financial Performance - Net income increased 46% to $37.0 million or $6.62 per diluted share for the year ended December 31, 2024, compared to $25.4 million or $4.49 per diluted share for the year ended December 31, 2023[219]. - Total revenue for 2024 was $155,224,000, compared to $129,631,000 in 2023, representing a 20% growth[230]. - Net income for 2024 was $37.0 million, an increase of 45.5% from $25.4 million in 2023, with diluted earnings per share rising from $4.49 to $6.62[232]. - Return on average equity increased to 14.70% in 2024 from 11.17% in 2023, reflecting an 8% growth rate[225]. - Cash dividends paid increased 1% to $13.8 million in 2024, with cash dividends per share rising to $2.46 from $2.40 in 2023[224]. Segment Performance - Net income in the Community Banking segment increased 19% or $4.9 million to $30.3 million in 2024, driven by a 7% increase in net interest income[221]. - Net income in the Home Mortgage Lending segment increased 292% or $7.3 million to $4.8 million in 2024 from a loss of $2.5 million in 2023, with production volume sold rising to $609.2 million in 2024 from $376.2 million in 2023[221]. Asset and Loan Growth - Loans increased 19% to $2.13 billion at December 31, 2024, compared to $1.79 billion at December 31, 2023, while deposits increased 8% to $2.68 billion[221]. - Total assets increased to $3,041,869,000 in 2024 from $2,807,497,000 in 2023, reflecting an 8% growth[228]. - The company's loans have grown significantly, attributed to the "Land and Expand" program aimed at attracting new customers and converting them into full banking relationships[256]. - Total loans increased to $2,129,263, representing a 15% growth rate over the past five years[257]. Interest Income and Margin - The net interest margin increased to 4.28% in 2024 from 4.14% in 2023, primarily due to higher average yields on interest-earning assets[221]. - Net interest income increased to $113.2 million in 2024 from $103.3 million in 2023, driven by a $26.1 million rise in interest income on loans[234]. - Total interest income increased by $21.968 million in 2024, with $14.792 million attributed to volume changes and $7.176 million to rate changes[237]. Credit Quality and Allowance for Losses - Nonperforming loans increased to $7.5 million at the end of 2024 from $5.0 million at the end of 2023[221]. - The Allowance for Credit Losses totaled 1.03% of total portfolio loans at December 31, 2024, compared to 0.97% at December 31, 2023[221]. - The allowance for credit losses (ACL) was $22,020, representing 1.03% of total portfolio loans[266]. Operational Efficiency - Efficiency ratio improved to 67.60% in 2024 from 72.64% in 2023, showing a 5% enhancement in operational efficiency[230]. - Total other operating expenses increased by 11% to $104,937,000 in 2024, with salaries and other personnel expenses rising by $6,106,000, largely due to increased mortgage production[246][247]. Investment and Securities - Investment securities decreased by 24% to $524,100,000 as of December 31, 2024, down from $687,800,000 in 2023, due to investment maturities and calls used to fund loan growth[251]. - The average maturity of the investment portfolio was approximately 2.4 years as of December 31, 2024, compared to 2.8 years in 2023[251]. Dividends and Share Repurchase - The Company repurchased 15,034 common shares at a weighted average price of $52.46 in 2024, compared to 208,673 shares at $43.34 in 2023[286]. Interest Rate Risk Management - The Asset and Liability Committee manages interest rate and price risks, establishing policies and tolerance ranges for interest rate sensitivity to achieve financial objectives[318]. - Interest rate risk is assessed using income simulations, with key assumptions including loan and deposit volumes, prepayment speeds, and cash flows, highlighting the complexity of interest rate management[319]. - The company uses derivatives in its Home Mortgage Lending segment to hedge interest rate risk, indicating a strategic approach to managing financial exposure[322]. Future Outlook - The Company plans to maintain capital ratios exceeding FDIC requirements for the "well-capitalized" classification in 2025[289]. - The Company expects to continue receiving dividends from the Bank during 2025, as it meets all applicable capital adequacy requirements[280].