MeritValue

NORTHRIM BANCORP INC

NRIMdata completeness 100%17 fiscal years on file
The thesis, from the filings

NORTHRIM BANCORP INC earns about 60% on invested capital, far above its ~9% cost of capital, but has diluted owners by 260% over 5 years — a real edge showing up in the numbers. The estimate methods put fair value between $17.04 and $26.64 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$84.6M1$134.4M2$158.3M3$196M3$255.6M3
Net income$37.5M4$30.7M5$25.4M6$37M6$64.6M6
Operating cash flow$112M7$78.1M8$38.8M9−$8.73M9$139.3M9
Capital expenditure$2.34M10$3.8M11$6.17M12$620,00012$5.47M12
Free cash flow (derived)$109.7M7$74.3M8$32.6M9−$9.35M9$133.9M9
Total debt$14.5M13$14.1M14$13.7M15$23M16$12.8M17
Cash & equivalents$645.8M18$259.4M19$118.5M19$62.7M19$145.9M19
Diluted shares6.2M5.8M22.6M22.3M22.5M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$145.23
your share of equity
Profit it earned you last year
$28.73
Free cash flow it threw off
$59.54
Debt you’d be carrying
$5.69

10 shares is a claim on $145.23 of net worth that earned you $28.73 and generated $59.54 of cash last year, against $5.69 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
60% avg · 5y
FY21 —FY22 —FY23 37%FY24 55%FY25 87%

It earned about 60% on invested capital, year after year, against a ~9% cost of capital — the footprint of real pricing power. Competition usually drags returns like this back down; here it hasn't.

seeing a moat in the numbers →
Management signal · capital allocation
+260% shares · 5y

Share count is up 260% over 5 years — owners have been diluted. Worth asking what they got for it. Total debt has fallen 12% — deleveraging.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0

The 3 estimate methods that apply put fair value between $17.04 and $26.64 a share. They rest on different assumptions, so where they diverge is the story; the Graham Number is a stricter floor, not a target.

DCF · Growth Exit 10Y
$25.08
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears10
  • fcfGrowth0.0%
  • fcfBase$32.6M
DCF · Growth Exit 5Y
$26.64
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears5
  • fcfGrowth0.0%
  • fcfBase$32.6M
Earnings Power Value
$17.04
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$37M
  • growthAssumed0.0%
Graham Number
$30.62
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

v. The price question — last, on purpose
Is today’s price fair?
See live price ↗
Type a price. The ledger answers.
Or set your own belief
FCF growth, next 5 years0.0%
Discount rate (WACC)8.93%
Terminal growth2.5%
At your growth, a share is worth $26.64
The three cases
Bear0.0%$26.64
Base0.0%$26.64
Bull5.0%$31.66

Bear/base/bull growth = 0% / filed history / history + 5pp. Type a price to see the return each case implies.

Default growth 0.0%= this company’s own filed history (median-to-median FCF CAGR, clamped 0–20%). Your adjustments are recorded anonymously. They become the “what do owners actually believe” dataset.

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0001163370-24-000010 (InterestAndDividendIncomeOperating)
  2. 10-K · period ending 2022-12-31 · accession 0001163370-25-000007 (Revenues)
  3. 10-K · period ending 2023-12-31 · accession 0001163370-26-000007 (Revenues)
  4. 10-K · period ending 2021-12-31 · accession 0001163370-24-000010 (NetIncomeLoss)
  5. 10-K · period ending 2022-12-31 · accession 0001163370-25-000007 (NetIncomeLoss)
  6. 10-K · period ending 2023-12-31 · accession 0001163370-26-000007 (NetIncomeLoss)
  7. 10-K · period ending 2021-12-31 · accession 0001163370-24-000010 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2022-12-31 · accession 0001163370-25-000007 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2023-12-31 · accession 0001163370-26-000007 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2021-12-31 · accession 0001163370-24-000010 (PaymentsToAcquirePropertyPlantAndEquipment)
  11. 10-K · period ending 2022-12-31 · accession 0001163370-25-000007 (PaymentsToAcquirePropertyPlantAndEquipment)
  12. 10-K · period ending 2023-12-31 · accession 0001163370-26-000007 (PaymentsToAcquirePropertyPlantAndEquipment)
  13. 10-K · period ending 2021-12-31 · accession 0001163370-22-000008 (LongTermDebt)
  14. 10-K · period ending 2022-12-31 · accession 0001163370-23-000015 (LongTermDebt)
  15. 10-K · period ending 2023-12-31 · accession 0001163370-24-000010 (LongTermDebt)
  16. 10-K · period ending 2024-12-31 · accession 0001163370-25-000007 (LongTermDebt)
  17. 10-K · period ending 2025-12-31 · accession 0001163370-26-000007 (LongTermDebt)
  18. 10-K · period ending 2021-12-31 · accession 0001163370-25-000007 (CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents)
  19. 10-K · period ending 2022-12-31 · accession 0001163370-26-000007 (CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents)