NASDAQ$NRIM

Northrim BanCorp Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Northrim BanCorp's profitability increased due to a rise in net interest income.

Northrim BanCorp reported a net income of $10.1 million, or $1.76 per diluted share, for Q3 2022, driven by an increase in net interest income. The company saw growth in core loans and deposit market share, benefiting from the rising interest rate environment.

  • Net interest income increased by 18% to $26.3 million compared to the previous quarter and increased 29% compared to the same quarter last year.
  • Net Interest Margin on a tax equivalent basis was 4.27%, a 57-basis point increase from the previous quarter and an 80-basis point increase compared to the same quarter last year.
  • The weighted average interest rate for new loans booked in the third quarter of 2022 was 5.76% compared to 4.66% in the second quarter of 2022 and 4.04% in the third quarter a year ago.
  • Total deposits were $2.44 billion, up 4% from the preceding quarter, and up 6% from a year ago.

Headline financials

Total Revenue

$35M

Previous: $33.1M+5.7%
EPS (adj)

$1.76

Previous: $1.42+23.9%
Efficiency Ratio

63.7%

Previous: 68.1%-6.4%
Return on Avg Assets

1.5%

Previous: 1.4%+8.6%
Return on Avg Equity

18.2%

Previous: 14.5%+25.6%
Net Int Margin TE

4.3%

No prior period
Capital Expenditures

-$2.13M

Previous: -$1.98M-7.4%
Free Cash Flow

$8M

Previous: $6.9M+16.0%
Net Income

$10.1M

Previous: $8.88M+14.1%
Operating Income

$25.9M

Previous: $24M+7.9%
Gross Profit

$34.6M

Previous: $32M+8.3%
Cash & Equivalents

$407M

Previous: $492M-17.3%
Total Assets

$2.72B

Previous: $2.61B+4.1%
Stock-Based Comp

$191K

Previous: $232K-17.7%

Revenue & EPS history

Northrim BanCorp · Revenue · Quarterly

$35M

Q3 2022+5.7%vs Q3 2021
Beat estimate in 13 of 15 quarters(87%)
ActualEstimate

Forward guidance

The company expects its net interest margin to continue to improve with expected increases in interest rates during the fourth quarter of 2022.

Tailwinds

  • Nearly 75% of the loan portfolio has adjusting rates.
  • Large cash position will reprice immediately upon any rate increases.
  • New customer relationships continue to expand and grow.
  • Alaska economy is experiencing recovery in jobs from pandemic lows.
  • Tourism activity is improving.

Headwinds

  • Inflation is impacting business activity.
  • Incomes are rising, but not at the same pace as inflation.
  • Housing market is slowing down as interest rates rise rapidly.
  • Real GSP decreased in Alaska in the second quarter of 2022.
  • Unrealized losses on available for sale securities increased due to rising interest 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 Q3 2022

Historical avgQ3 2022

+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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