Overview

• Alaska community bank's Q2 net income and EPS rose yr/yr and sequentially

• Net interest income and margin increased, supported by loan and deposit growth

• Company opened new Palmer branch, expanding Alaska footprint

Outlook

• Company did not provide specific financial guidance for future quarters or the full year

Result Drivers

• HIGHER NET INTEREST INCOME - Net interest income rose 11% yr/yr and 7% sequentially, driven by higher loan balances and a lower average cost of deposits, per CFO Jed Ballard

• MORTGAGE BANKING ACTIVITY - Higher mortgage banking income due to increased mortgage production contributed to revenue growth

• BRANCH EXPANSION - Opening of Palmer branch supported growth in loans and deposits

Company press release: ID:nGNX6Tv8h1

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q2 EPS		$0.68
Q2 Net Income		$15.3 mln
Q2 Net Interest Income		$37.1 mln
Q2 Net Interest Margin		5.01%

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 $30.00, about 8.9% above its July 22 closing price of $27.55

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 9 three months ago

Reuters Recommended Reads

• July 21 - Northpointe Bancshares Q2 profit rises on loan growth

• July 22 - Juniata Valley Q2 profit rises 32% on loan growth, higher interest income

• July 20 - ServisFirst Bancshares Q2 EPS rises 40% on loan growth, higher net interest margin

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