The price trend for Northrim BanCorp (NRIM) has been bearish lately and the stock has lost 12.1% over the past week. However, the formation of a hammer chart pattern in its last trading session indicates that the stock could witness a trend reversal soon, as bulls might have gained significant control over the price to help it find support. While the formation of a hammer pattern is a technical indication of nearing a bottom with potential exhaustion of selling pressure, rising optimism among Wall Street an ...

Gary Yeowell One week after the release of Q2 2024, Northrim BanCorp's (NASDAQ:NRIM) price per share has plummeted 6.50% even though its results have been quite good. NIM continues to rise, the cost of deposits is surprisingly low, and shareholder remuneration remains one of the strengths. Probably, the motivation behind this negative performance stems not from the quarterly report itself, but from the uncertainty of where interest rates will be in the future. The Fed has decided to keep them high despite w ...

Financial Performance - The Company reported net income of $9.0 million and earnings per diluted share of $1.62 for Q2 2024, compared to $5.6 million and $0.98 for Q2 2023, representing a 60.7% increase in net income [127]. - The return on average assets was 1.31% for Q2 2024, up from 0.85% in Q2 2023, and the return on average shareholders' equity was 14.84%, compared to 9.85% in the same period last year [129]. - The company experienced a 16% increase in total interest income, amounting to $36,909 thousand in Q2 2024, compared to $31,820 thousand in Q2 2023 [138]. - Other operating income for the six-month period increased by $5.5 million, or 47%, to $17.4 million, primarily driven by a $4.0 million increase in mortgage banking income [152]. Interest Income and Margin - Net interest income increased by 8% to $27.1 million in Q2 2024, up from $25.1 million in Q2 2023, and for the first six months of 2024, it rose by 7% to $53.5 million [128]. - The net interest margin was 4.24% for Q2 2024, a 10 basis point increase from 4.14% in Q2 2023, and 4.20% for the first six months of 2024, a 2 basis point increase from the same period in 2023 [134]. - Net interest income increased by $27,053 thousand in Q2 2024 compared to Q2 2023, representing an 8% growth [139]. - The net interest margin improved to 4.24% in Q2 2024, up from 4.14% in Q2 2023, reflecting a 0.10% increase [139]. Loans and Deposits - Loans totaled $1.88 billion at June 30, 2024, reflecting a 5% increase from December 31, 2023, driven by growth in commercial and consumer mortgage loans [128]. - Total deposits were $2.46 billion at June 30, 2024, down 1% from December 31, 2023, with demand deposits decreasing by 6% [128]. - Mortgage loan originations increased to $181.51 million in Q2 2024, up from $101.73 million in Q1 2024 and $169.42 million in Q2 2023 [128]. - Total loans increased by $86.4 million, or 5%, to $1.876 billion as of June 30, 2024, from $1.789 billion at December 31, 2023 [158]. Asset Quality - Nonperforming assets decreased to $5.1 million at June 30, 2024, down from $5.8 million at December 31, 2023, with nonperforming loans decreasing by 5% [129]. - Nonaccrual loans decreased to $4.830 million as of June 30, 2024, from $6.069 million at December 31, 2023 [164]. - The net nonperforming loans were $4.847 million as of June 30, 2024, compared to $5.002 million at December 31, 2023 [164]. Credit Losses - The provision for credit loss expense decreased significantly, with a total of $29,000 for the six months ended June 30, 2024, compared to $1.77 million for the same period in 2023 [150]. - The provision for credit losses was $135,000 for the three months ended June 30, 2024 [166]. - The allowance for credit losses (ACL) for loans held for investment increased by $424,000 from December 31, 2023, primarily due to higher nongovernment guaranteed loan balances [169]. Capital and Liquidity - The Company met all applicable capital adequacy requirements for a "well-capitalized" institution as of June 30, 2024 [183]. - Total risk-based capital ratio for the Company was 12.58% as of June 30, 2024, exceeding the minimum required ratio of 8.00% [186]. - The Company had cash and cash equivalents of $54.4 million, or 2% of total assets, as of June 30, 2024, down from $118.5 million, or 4%, at December 31, 2023 [179]. Deposits Composition - The Company’s mix of deposits included 83% in transaction accounts as of June 30, 2024, down from 87% at December 31, 2023 [170]. - Non-interest bearing demand deposits decreased by $40.1 million, or 5%, to $705.7 million compared to the previous year [1]. - Time deposits increased by $124 million, or 49%, to $376 million compared to the previous year [1]. Market Risk and Economic Sensitivity - The company’s assessment of market risk as of June 30, 2024, shows no material changes from the previous annual report [193]. - A hypothetical sensitivity analysis indicates that a 5% increase in the U.S. unemployment rate would raise the ACL for loans by $594,000, or 3% [192]. - If the U.S. GDP growth rate were 12% lower, the ACL for loans would also increase by $594,000, or 3% [192]. - A 41% increase in the unemployment rate forecast would lead to a $2.6 million, or 15%, increase in the ACL for loans [192].

Northrim BanCorp (NRIM) came out with quarterly earnings of $1.62 per share, beating the Zacks Consensus Estimate of $1.31 per share. This compares to earnings of $0.98 per share a year ago. These figures are adjusted for non-recurring items. Northrim, which belongs to the Zacks Banks - West industry, posted revenues of $36.63 million for the quarter ended June 2024, surpassing the Zacks Consensus Estimate by 4.66%. This compares to year-ago revenues of $32.12 million. The company has topped consensus reven ...

Financial Performance - Northrim BanCorp reported net income of $9.0 million, or $1.62 per diluted share, in Q2 2024, an increase from $8.2 million, or $1.48 per diluted share, in Q1 2024, and $5.6 million, or $0.98 per diluted share, in Q2 2023[9]. - Northrim BanCorp reported earnings of $9.0 million, or $1.62 per diluted share for Q2 2024, compared to $7.7 million in Q2 2023[68]. - Net income for Q2 2024 was $9.02 million, an increase from $8.20 million in Q1 2024 and $5.58 million in Q2 2023[82]. - Return on average assets (ROAA) was 1.31% and return on average equity (ROAE) was 14.84% for Q2 2024, compared to 0.85% and 9.85% a year ago[41]. - Book value per share increased to $44.93 from $39.45 year-over-year, reflecting a growth of 14.3%[105]. - Total shareholders' equity reached $247.2 million, an increase from $221.3 million year-over-year[111]. Income and Revenue - Total interest income for Q2 2024 was $36.91 million, up from $35.81 million in Q1 2024 and $31.82 million in Q2 2023[89]. - Net interest income increased by 2% to $27.1 million in Q2 2024 compared to $26.4 million in Q1 2024, and by 8% compared to $25.1 million in Q2 2023[18]. - The net interest income for Q2 2024 was $27.1 million, up from $26.4 million in Q1 2024, representing a 2.3% increase[99]. - Other operating income contributed $9.6 million, or 26% of total revenues in Q2 2024, compared to 22% a year ago[44]. - Net interest income for the quarter was $53.5 million, up from $50.2 million in the previous year[107]. Asset and Loan Management - Total assets reached $2.82 billion as of June 30, 2024, up from $2.76 billion at the end of Q1 2024[12]. - Portfolio loans reached $1.88 billion at June 30, 2024, up 4% from the preceding quarter and up 13% year-over-year[36]. - Total mortgage loans funded increased to $283,241 thousand in Q2 2024, up 8% from $262,108 thousand in Q2 2023[32]. - Mortgage loans funded for sale increased significantly to $152.3 million in Q2 2024, compared to $84.3 million in Q1 2024 and $113.8 million in Q2 2023[28]. - Nonperforming loans decreased to $4.8 million at June 30, 2024, down from $5.3 million at March 31, 2024, and the same amount a year ago[20]. Deposits and Funding - Total deposits were $2.46 billion at June 30, 2024, reflecting a 7% increase from $2.30 billion a year ago[36]. - The bank's deposit market share in Alaska increased to 15.04% as of June 30, 2023, up from 13.95% a year earlier, despite an 8.5% decline in total deposits in Alaska[24]. - Average interest-bearing deposits rose to $1.73 billion with an average cost of 2.21% in Q2 2024, compared to $1.57 billion and 1.56% in Q2 2023, marking a 10% increase[81]. - Demand deposits decreased slightly to $704.5 million, accounting for 29% of total deposits as of June 30, 2024[92]. - Interest-bearing demand deposits rose to $906.0 million, representing 36% of total deposits[92]. Efficiency and Cost Management - The efficiency ratio improved to 68.78% in Q2 2024 from 68.93% in Q1 2024, indicating better cost management[12]. - Efficiency ratio improved to 68.78% from 74.03% year-over-year, indicating better cost management[105]. Capital and Equity - The tangible book value per share increased to $42.03 as of June 30, 2024, up from $40.61 in Q1 2024[101]. - The company maintained a Tier 1 Capital to Risk Adjusted Assets ratio of 11.68% as of June 30, 2024, compared to 11.55% in the previous quarter[82]. - Tangible common equity to tangible assets improved to 8.24% as of June 30, 2024, compared to 8.14% in the previous quarter and 7.83% a year ago[82]. - Tier 1 capital ratio increased to 11.68% from 12.13% year-over-year, showing a solid capital base[105]. Market and Economic Indicators - The Alaska Department of Labor reported a 2.9% increase in payroll jobs in Alaska from May 2023 to May 2024, indicating a positive employment trend[5]. - The average sales price for single-family homes in the Matanuska Susitna Borough rose 3.4% to $410,912 in the first six months of 2024[15].

ANCHORAGE, Alaska, July 24, 2024 (GLOBE NEWSWIRE) -- Northrim BanCorp, Inc. (NASDAQ:NRIM) ("Northrim" or the "Company") today reported net income of $9.0 million, or $1.62 per diluted share, in the second quarter of 2024, compared to $8.2 million, or $1.48 per diluted share, in the first quarter of 2024, and $5.6 million, or $0.98 per diluted share, in the second quarter a year ago. The increase in second quarter 2024 profitability as compared to the prior quarter and the second quarter a year ago was prima ...

Shares of Northrim BanCorp rallied for the fifth straight trading session and touched a 52-week high of 67.59. Encouraging inflation numbers and cooling employment data have increased the chances of the Federal Reserve cutting the interest rates as early as during the September FOMC meeting. As the rates come down, banks' funding costs will stabilize or move lower eventually. Also, demand for loans is expected to improve. Hence, the investors turned bullish on banking sector stocks, driving NRIM higher. For ...

Often, the direction of a stock's price movement reverses quickly after taking a position in it, making investors incur a short-term capital loss. So, it's important to ensure that there are enough factors -- such as sound fundamentals, positive earnings estimate revisions, etc. -- that could keep the momentum in the stock going. There are several stocks that passed through the screen and Northrim BanCorp (NRIM) is one of them. Here are the key reasons why this stock is a solid choice for "trend" investing. ...

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 dividend yield, a metric that measures a dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases. Headquarte ...

Most of us have heard the dictum "the trend is your friend." And this is undeniably the key to success when it comes to short-term investing or trading. But it isn't easy to ensure the sustainability of a trend and profit from it. The trend often reverses before exiting the trade, leading to a short-term capital loss for investors. So, for a profitable trade, one should confirm factors such as sound fundamentals, positive earnings estimate revisions, etc. that could keep the momentum in the stock alive. Our ...