Northrim BanCorp Q3 net income falls on higher credit losses

Northrim Bancorp

15/10/2026 23:46

Overview
Alaska community bank's Q3 net income and EPS declined yr/yr due to higher credit losses
Q3 net interest income and margin rose, supported by deposit growth and higher loan balances
Company continues progress on previously announced PBCO Financial acquisition, expected to close Q1 2027

Outlook
Northrim expects to complete PBCO Financial acquisition in Q1 2027, pending approvals
Company anticipates more than $4 bln in assets after PBCO acquisition
Northrim says collection of a Specialty Finance loan impairment may take several quarters to resolve

Result Drivers
CREDIT LOSS PROVISION - Co said higher provision for credit losses tied to a single relationship in Specialty Finance segment reduced Q3 earnings
NET INTEREST INCOME - Record net interest income and net interest margin above 5% drove a 21% increase in pre-provision net revenue, per CEO Mike Huston
MORTGAGE SEGMENT - Co said Home Mortgage Lending segment had a strong quarter, supported by increased mortgage servicing revenue and fair value gains

Company press release: ID:nGNX35ytXw

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 EPS
 
$0.63
 
Q3 Net Income
 
$14.4 mln
 
Q3 Net Interest Income
 
$38.9 mln
 
Q3 Net Interest Margin
 
5.02%
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "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 $30.50, about 26.5% above its October 14 closing price of $24.11
The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 11 three months ago

Reuters Recommended Reads
Oct 14 - US banks post solid third-quarter loan growth, but face more competition for deposits
Oct 14 - Home BancShares Q3 revenue rises on net interest income strength
Oct 14 - Equity Bancshares Q3 core EPS rises on loan growth, lifts dividend

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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.)