Overview

• Alaska bank's Q4 net income rose yr/yr due to higher net interest income

• Net interest income reached a record $35.4 mln in Q4 2025

• Company issued $60 mln subordinated debt for growth initiatives

Outlook

• Company expects operating expenses to moderate in future quarters

• Northrim anticipates net interest margin to remain flat throughout 2026

Result Drivers

• ASSET SALE IMPACT - Q4 net income decreased compared to Q3 due to a $14.2 mln gain from asset sales in Q3

• EXPENSE INCREASES - Higher personnel and marketing expenses, including charitable contributions, raised operating costs

• SALLYPORT ACQUISITION - Purchased receivable income rose due to acquisition of Sallyport Commercial Finance

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy."

• Wall Street's median 12-month price target for Northrim BanCorp Inc is $31.50, about 6.1% above its January 22 closing price of $29.69

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 9 three months ago

Press Release: ID:nGNX4z1Mzh

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)