Northrim BanCorp falls 3.6% after third-quarter earnings miss

What happened

Northrim BanCorp (NRIM) fell 3.6% on October 16, 2026, after reporting third-quarter results that missed estimates and showed weaker profit versus a year earlier. The company reported third-quarter 2026 net income of $14.4 million, or $0.63 per diluted share, down from $27.1 million, or $1.20 per diluted share, in the year-ago quarter. The result also trailed a Zacks Consensus Estimate of $0.71 per share, according to GlobeNewsWire and Zacks Investment Research. The stock closed at $23.55 after opening 1.0% below the previous close, and trading volume ran 1.4 times its 20-day average.

How big was the move

The session decline of 3.6% was about 3.0 times a typical daily move for the stock. That drop was 3.6 percentage points worse than the Financial Services sector median, which was unchanged on the day. The S&P 500 fell 1.1% on the session and had fallen 1.9% over the last five sessions. By contrast, Northrim BanCorp fell 2.8% over the same five-session span. Market value stood at $539.2 million at the close. With a beta of 0.87, the stock tends to move less than the market, underscoring that the earnings miss was the main driver of the larger-than-usual decline.

The technical picture

The stock was 3.9% below its 20-day moving average, 7.4% below its 50-day moving average and 6.9% below its 200-day moving average. The 50-day average is above the 200-day average, a sign of an established uptrend. The Relative Strength Index (14 days) was 33, inside a neutral range between 30 and 70. Over shorter and medium terms the shares showed weakness: they were 23.6% below the 52-week high, had fallen 7.6% over one month and fallen 15.6% over three months. Over one year the stock had risen 11.7%, which left it 3.2 percentage points behind the S&P 500. Volatility over 60 days was 19% annualized, lower than 94% of its own readings over five years, suggesting recent price swings were historically muted despite the earnings-driven drop.

Fundamentals and valuation

For the four quarters through September 30, 2026, Northrim BanCorp reported revenue of $235.1 million and diluted earnings per share of $2.48. Revenue growth from a year earlier was unchanged, while earnings per share growth from a year earlier fell 11.5%. Gross margin narrowed to 64.8% from 80.2% a year earlier, and operating margin declined to 32.8% from 34.6%. The company reported return on invested capital of 2.1% and a balance sheet with net cash of $38.9 million. Share count over one year increased by 0.5%.

On valuation, the stock traded at 9.5 times trailing earnings and 8.9 times expected earnings. Its price to trailing earnings was lower than 52% of its own readings over the past five years, with a five-year median of 9.6 times earnings. PromtFinance scores placed the stock highly for Value at 91 (Exceptional) and strong for Quality at 84. Growth scored 16 (Very weak) and Momentum scored 31 (Weak). Those readings indicate a low relative price but weak growth and momentum characteristics.

Earnings and analyst expectations

Northrim reported on October 15, 2026, that the most recent quarter produced EPS of $0.63, missing the Zacks Consensus Estimate of $0.71. That result followed an October 15, 2026, previously reported quarter where EPS was $0.60 against $0.70 expected, 14.3% below estimates. The company has zero consecutive quarters beating estimates, and average surprise over the last four reports was 0.8% below estimates. The typical two-day reaction after recent reports was that the stock fell 1.8%.

Analysts' consensus price target was $30.00, which was 27.4% above the closing price. Earnings weakness appeared in margins and return metrics for the trailing four quarters, with gross margin down sharply from a year earlier and operating margin retreating. The net cash position of $38.9 million provides some balance sheet flexibility, but lower profitability and the steady share count increase of 0.5% suggest limited near-term EPS leverage.

What to watch

• October 28, 2026: next scheduled earnings report
• Last report: earnings per share of $0.60 against $0.70 expected on October 15, 2026, 14.3% below estimates
• Similar sessions in the past five years: in the past five years the stock had 42 sessions with a decline of at least 3.6%; twenty trading days later the median result was a gain of 0.6%, and 24 of 42 were higher
• Price to trailing earnings at 9.5 times trailing earnings and price to forward earnings of 8.9 times expected earnings
• Balance sheet: net cash of $38.9 million