NASDAQ$NRIM

Northrim BanCorp Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Northrim BanCorp's profitability increased primarily due to higher mortgage banking income and an increase in net interest income.

Northrim BanCorp reported a net income of $5.6 million, or $0.98 per diluted share, for the second quarter of 2023. The increase in profitability compared to the previous quarter was mainly due to higher mortgage banking income, while the increase compared to the same period last year was primarily due to an increase in net interest income.

  • Net interest income increased slightly to $25.1 million, up 13% compared to the second quarter of 2022.
  • Net interest margin on a tax equivalent basis (NIMTE) was 4.21%, a 51-basis point increase compared to the second quarter of 2022.
  • Portfolio loans were $1.66 billion, up 8% from the preceding quarter and 18% from a year ago.
  • Total deposits were $2.30 billion, up slightly from the preceding quarter, but down 1% from a year ago.

Headline financials

Total Revenue

$32.1M

Previous: $30M+7.0%
EPS (adj)

$0.98

Previous: $0.83+18.1%
Efficiency Ratio

74.0%

Previous: 77.4%-4.3%
Return on Avg Assets

0.8%

Previous: 0.7%+14.9%
Return on Avg Equity

9.8%

Previous: 8.6%+14.8%
Net Int Margin TE

4.2%

No prior period
Capital Expenditures

-$3.33M

Previous: -$1.53M-117.9%
Free Cash Flow

$2.25M

Previous: $3.27M-31.2%
Net Income

$5.58M

Previous: $4.8M+16.3%
Operating Income

$16.7M

Previous: $21.9M-23.9%
Gross Profit

$30.7M

Previous: $29.6M+3.9%
Cash & Equivalents

$36.8M

Previous: $337M-89.1%
Total Assets

$2.64B

Previous: $2.61B+1.0%
Stock-Based Comp

$225K

Previous: $190K+18.4%

Revenue & EPS history

Northrim BanCorp · Revenue · Quarterly

$32.1M

Q2 2023+7%vs Q2 2022
Beat estimate in 13 of 15 quarters(87%)
ActualEstimate

Forward guidance

Northrim expects its net interest margin to remain relatively stable, with earning-asset yields and the change in mix of earning-assets with the maturing of low rate investment securities supporting future loan growth likely to be offset by increases in deposit rates.

Tailwinds

  • Estimated increases in earning-asset yields
  • Change in mix of earning-assets
  • Maturing of low rate investment securities
  • Supporting future loan growth
  • Proactive, targeted approach to increase deposit rates.

Headwinds

  • Increases in deposit rates
  • Competitive deposit market in a rising interest rate environment
  • Potential further increases in interest rates
  • Uncertain economic environment
  • Financial stress on borrowers due to higher rates

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

+0.0%

Avg return

Earnings day

+0.2%

Avg return

5 days after

+4.9%

Avg return

30 days after

63%

41 / 65 earnings

Positive

+7.2%

Q3 2022

Best reaction

-16.0%

Q1 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+3.3%+4.7%+1.3%
Q4 2025-15.3%-23.8%-14.2%
Q3 2025+3.2%+10.1%+16.5%
Q1 2025+0.8%+1.9%+9.4%
Q4 2024+3.8%+3.7%-0.0%
Q3 2024-4.1%-3.9%+27.5%
Q2 2024+1.9%-2.0%-3.3%
Q1 2024+3.9%+3.5%+16.6%
Q4 2023+1.3%+2.6%-6.0%
Q3 2023+1.1%+6.1%+26.7%
Q2 2023+3.0%+2.6%-8.8%
Q1 2023-16.0%-13.2%-7.5%
Q4 2022+0.6%+1.6%-0.1%
Q3 2022+7.2%+11.5%+28.6%
Q2 2022+1.7%-1.0%-0.8%
Q1 2022-0.3%-0.1%+4.0%
Q4 2021+0.9%-0.2%-0.6%
Q3 2021+0.9%+3.1%-3.7%
Q2 2021+0.6%+0.6%+1.5%
Q1 2021-1.0%+0.6%+0.8%
Q4 2020+4.5%+8.2%+33.8%
Q3 2020-1.5%-9.3%+8.3%
Q2 2020+0.9%+0.1%+10.2%
Q1 2020+4.7%+1.7%+16.1%
Q4 2019+2.6%+1.7%+2.7%
Q3 2019+4.2%+5.2%+0.3%
Q2 2019+1.7%-4.2%-4.1%
Q1 2019+2.0%+3.1%-2.2%
Q4 2018-4.9%-1.3%+14.6%
Q3 2018+2.8%+4.0%+0.1%
Q2 2018+1.6%+4.5%+10.3%
Q1 2018+1.4%+3.0%+13.4%
Q4 2017-1.0%-1.6%-2.2%
Q3 2017-8.8%-4.2%+5.2%
Q2 2017+1.6%-2.1%+1.7%
Q1 2017+0.5%-1.6%-7.2%
Q4 2016-6.3%-5.0%-2.0%
Q3 2016+1.6%+1.8%+14.9%
Q2 2016-7.0%-6.0%-9.5%
Q1 2016+3.1%
Q4 2015+4.3%
Q3 2015+0.6%
Q2 2015+1.6%
Q1 2015+3.8%
Q4 2014-3.6%
Q3 2014-3.3%
Q2 2014+1.4%
Q1 2014+0.1%
Q4 2013-1.0%
Q3 2013+1.3%
Q2 2013-0.1%
Q4 2012-0.1%
Q1 2013-2.0%
Q3 2012-1.2%
Q2 2012+1.6%
Q1 2011+0.3%
Q1 2012-0.5%
Q4 2011-0.4%
Q4 2009-0.4%
Q3 2011+0.3%
Q3 2010+0.3%
Q2 2011-1.5%
Q4 2010-1.5%
Q2 2010-1.5%
Q1 2010+2.5%

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