NRIM - Northrim BanCorp: The Golden Moment Continues

2024-01-30 23:09:07 ET

Summary

• Northrim BanCorp operates in Alaska with a major competitive advantage due to its geographic location and controls 15% of the deposit market share in the region.
• The bank's loan portfolio has seen significant growth, but also exposes the bank to rate risk if the Fed cuts rates more than expected.
• Northrim BanCorp has a strong advantage in obtaining low-cost deposits, leading to a high net interest margin (NIM) and impressive shareholder remuneration through buybacks and dividend growth.

Northrim BanCorp ( NRIM ) is a small bank that capitalizes only $300 million and operates in Alaska. Although not well known among retail investors, I find this bank very interesting and apparently the market thinks the same: its price per share is near an all-time high....

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