Financial Performance - Northrim BanCorp reported net income of $11.8 million, or $2.09 per diluted share, in Q2 2025, down from $13.3 million, or $2.38 per diluted share, in Q1 2025, but up from $9.0 million, or $1.62 per diluted share, in Q2 2024 [1][4] - Net interest income increased by 7% to $33.6 million compared to $31.3 million in Q1 2025 and by 24% compared to $27.1 million in Q2 2024 [5][23] - The net interest margin on a tax-equivalent basis (NIMTE) was 4.72% for Q2 2025, up from 4.61% in Q1 2025 and 4.30% in Q2 2024 [5][24] Loan and Deposit Growth - Total portfolio loans reached $2.20 billion at June 30, 2025, a 4% increase from the previous quarter and a 17% increase year-over-year [5][4] - Total deposits were $2.81 billion at June 30, 2025, up 1% from the preceding quarter and up 14% from $2.46 billion a year ago [5][4] Operating Income and Expenses - Other operating income contributed $16.6 million, or 33% of total revenues in Q2 2025, compared to $13.0 million, or 29% in Q1 2025, and $9.6 million, or 26% in Q2 2024 [29] - Operating expenses increased to $32.5 million in Q2 2025 from $28.2 million in Q1 2025 and $25.2 million in Q2 2024, primarily due to higher salaries and personnel expenses [31] Credit Losses and Provisions - Northrim recorded a provision for credit losses of $2.0 million in Q2 2025, compared to a benefit of $1.4 million in Q1 2025 [25][26] - The allowance for credit losses on loans was 290% of nonperforming loans at the end of Q2 2025, compared to 262% three months earlier [28] Mortgage Banking - Mortgage loan originations were $277.1 million in Q2 2025, up from $121.6 million in Q1 2025 and $181.5 million in Q2 2024 [5][39] - The provision for credit losses in the Home Mortgage Lending segment was $639,000 in Q2 2025, compared to a benefit of $307,000 in Q1 2025 [43] Specialty Finance Segment - The Specialty Finance segment includes Northrim Funding Services and Sallyport, which was acquired for approximately $53.9 million [51][52] - Total pre-tax income for Sallyport in Q2 2025 was $1.3 million, consistent with Q1 2025 [52]

Sallyport Commercial Finance Overview - Sallyport Commercial Finance (SCF) was founded in 2014 and provides factoring, asset-based lending, and alternative working capital solutions to SMEs[10] - SCF has factored over $5.5 billion in debts across the U S and Canada[10] - SCF's active clients are primarily in Factoring (65 8%) and Asset Based Lending (22 5%)[5] - SCF's adjusted pre-tax net income was $7 7 million[9] - SCF's total net revenue was $19 5 million[9] Northrim Acquisition and Pro Forma Impact - Northrim is acquiring Sallyport Commercial Finance for $47 9 million upfront and $6 0 million deferred, paid over three years[26] - The acquisition is expected to be approximately 15% accretive to EPS in 2025E and approximately 20% in 2026E[26] - The acquisition is expected to improve ROAA by approximately +15 bps in 2025E and +20 bps in 2026E[26] - The acquisition is expected to improve ROATCE by approximately +475 bps in 2025E and +500 bps in 2026E[26] - The TBV earn-back period is estimated to be approximately 3 ½ years, with an internal rate of return of approximately 25%[26] Market Opportunity - The global factoring market was worth over $3 6 trillion in 2022 and is expected to grow to over $5 7 trillion by 2031[18, 20]

Financial Performance - Northrim's net income for Q2 2024 was $902 million, with an EPS of $162[7] - The net interest margin (NIM) for Q2 2024 was 424%[7] - The return on average assets (ROAA) for Q2 2024 was 131% and the return on average equity (ROAE) was 1484%[7] Balance Sheet & Capital - Total loans reached $1876 billion in Q2 2024[7] - Total deposits amounted to $2464 billion in Q2 2024[7] - The ratio of total capital to risk-adjusted assets was 1258%[7] Asset Quality - Non-Performing Assets (NPAs) to total assets, net of government guarantees, was 018%[7] - The total loan ACL (Allowance for Credit Losses) to portfolio loans was 094%[7] Market Position & Strategy - Northrim's deposit market share has increased by 478 basis points since 2018[12] - The company originated approximately 5,800 PPP loans totaling $613 million[5] - Approximately 20% of outstanding shares have been repurchased in the last 5 years[12] Dividend & Shareholder Value - The quarterly dividend is $061 per share, resulting in an annualized dividend of $244[9] - The dividend yield, based on a price of $6892 as of July 24, 2024, is 354%[9]

Financial Performance (Q3 2024) - Net income reached $8.825 million, resulting in earnings per share (EPS) of $1.57[7] - The net interest margin (NIM) stood at 4.29%[7] - Return on average assets (ROAA) was 1.22%, and return on average equity (ROAE) was 13.69%[7] - Total loans amounted to $2.008 billion, while total deposits reached $2.626 billion[7] Loan Portfolio & Asset Quality - The loan portfolio is diversified, with commercial real estate (CRE) non-owner occupied loans comprising 29% of the total portfolio[23] - Non-performing assets (NPAs) to total assets, net of government guarantees, was 0.18%[7] - Total loan ACL (Allowance for Credit Losses) to portfolio loans was 0.97%[7] Deposits & Market Share - The bank's deposit market share has increased by 540 basis points since 2018[12] - Non-interest bearing deposits constitute 29% of the total deposit composition[14] Capital Management & Shareholder Value - The bank has repurchased approximately 20% of outstanding shares in the last 5 years[14] - The dividend per share has increased by 100% in the last 4 years, currently at $0.62 per share per quarter[14] - Tangible book value (TBV) per share reached $44.36 as of September 2024[7] Strategic Initiatives & Market Opportunities - The bank is benefiting from branch expansion strategy due to competitor pull back[14] - The bank is positioned to benefit from approximately $6 billion in various federal infrastructure projects over the next 5 years[15]

Financial Performance - Net income for Q4 2024 was $10927 million, resulting in earnings per share of $195[8] - The net interest margin (NIM) increased to 441% in Q4 2024[8] - Return on average assets (ROAA) reached 143% in Q4 2024[8] - Return on average equity (ROAE) was 1632% in Q4 2024[8] Balance Sheet - Total loans outstanding reached $2129 billion[8] - Total deposits amounted to $2680 billion[8] - The ratio of total capital to risk-adjusted assets was 1094%[8] Asset Quality - Non-performing assets (NPAs) to total assets, net of government guarantees, stood at 038%[8] - The total loan ACL (Allowance for Credit Losses) to portfolio loans was 103%[8] Shareholder Value - A cash dividend of $064 per share is payable on March 14, 2025[15] - Approximately 21% of shares have been repurchased since 2019[15] - Tangible book value (TBV) per share has shown a compound annual growth rate (CAGR) of 65% since 2014[15] Market Position and Strategy - Northrim's deposit market share has increased by 540 basis points since 2018[17] - The bank's loan yields have averaged 564% over the last 10 years, compared to 495% in the US[19] - Interest-bearing deposit costs have averaged 44 bps over the last 10 years, compared to 72 bps in the US[19]

Financial Performance - Net income for Q1 2025 was $13324 million, resulting in earnings per share of $238[8] - Net interest margin increased to 455% in Q1 2025[8] - Return on average assets (ROAA) reached 176% in Q1 2025[8] - Return on average equity (ROAE) was 1970% in Q1 2025[8] Balance Sheet - Total loans amounted to $2124 billion in Q1 2025[8] - Total deposits reached $2778 billion in Q1 2025[8] - The bank repurchased approximately 21% of its shares since 2019[16] Asset Quality - Non-performing assets (NPAs) to total assets, net of government guarantees, stood at 039%[8] - The allowance for credit losses (ACL) to portfolio loans was 098%[8] Strategic Initiatives - The bank's deposit market share has increased by 540 basis points since 2018[18] - Approximately 27% of the bank's deposits are non-interest bearing[20]

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].

Core Viewpoint - Northrim BanCorp Inc (NRIM) has reached a significant support level and is considered a good investment opportunity from a technical perspective due to the recent "golden cross" formation in its moving averages [1] Technical Analysis - NRIM's 50-day simple moving average has recently broken above its 200-day moving average, indicating a bullish breakout [1] - A golden cross is characterized by a downtrend followed by a crossover of the shorter moving average over the longer moving average, leading to a potential trend reversal and upward price movement [2] Performance Metrics - NRIM has experienced a rally of 22.7% over the past four weeks, indicating strong momentum [3] - The company currently holds a 1 (Strong Buy) rating on the Zacks Rank, suggesting a favorable outlook for investors [3] Earnings Outlook - There has been one upward revision in earnings estimates for NRIM over the past 60 days, with no downward revisions, indicating positive sentiment [3] - The Zacks Consensus Estimate for NRIM's earnings has also increased, further strengthening the bullish case for the company [4]

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]