Northrim Q3 EPS Falls to $0.63 on $8.8M Impairment; PBCO Merger on Track
NRIM sits 25% above its 52-week low of $19.6.
Summary
Northrim earned $14.4M ($0.63/share) in Q3 2026, down from $0.68 last quarter, after an $8.8M impairment on a single $20.0M Specialty Finance loan cut earnings by about $0.29 per share. Core banking held up — net interest income rose 5% and deposits grew 5% — while the PBCO acquisition stays on track to close in Q1 2027.
Key Events · Earnings and Guidance · NRIM
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Q3 Earnings Drop on Credit Charge
Net income of $14.4M, or $0.63 per diluted share, versus $15.3M ($0.68) in Q2 2026 and $27.1M ($1.20) a year ago.
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$8.8M Impairment on One Loan
A single $20.0M Specialty Finance relationship at Northrim Funding Services was impaired by $8.8M, cutting after-tax earnings by about $6.7M, or $0.29 per diluted share.
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Provision and NPAs Jump
Provision for credit losses rose to $7.7M from $1.6M last quarter; nonperforming assets net of guarantees climbed to $42.9M from $23.0M at June 30, 2026.
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Reserve Coverage Falls Sharply
Allowance for credit losses covered 82% of nonperforming loans, down from 117% last quarter and 208% a year ago; allowance was 1.46% of portfolio loans net of guarantees.
Analysis · NRIM · Finance
Northrim's Q3 profit dropped to $14.4M ($0.63/share) from $15.3M ($0.68) last quarter and $27.1M ($1.20) a year ago, and the cause is a single bad credit: an $8.8M impairment on a $20.0M Specialty Finance relationship at Northrim Funding Services, which cut after-tax earnings by roughly $6.7M, or $0.29 per share. That one loan also drove the provision for credit losses to $7.7M from $1.6M and pushed nonperforming assets to $42.9M from $23.0M at June 30. The core bank is still performing — net interest income rose 5% to $38.9M, NIMTE held above 5%, deposits grew 5% to $3.05B, and pre-provision pre-tax net revenue rose 21% to $26.5M — but the allowance for credit losses now covers only 82% of nonperforming loans, down from 117% last quarter and 208% a year ago, so reserve adequacy is the number to watch. Management says there is no additional exposure in the same industry and expects recovery to take several quarters. The PBCO Financial acquisition remains on schedule to close in Q1 2027, with the shareholder vote set for October 20, 2026.
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In the 30 days to Nov 1, 2026, 40.1% of the 1118 measured filings Wiseek scored 8 moved their stock by 5% or more by the next session's close. The median move was -0.35%. These are measured outcomes after filings of this importance, not a forecast for this one.
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At the time of this filing, NRIM was trading at $24.43 on NASDAQ in the Finance sector, with a market capitalization of approximately $543.4M. The 52-week trading range was $19.60 to $30.82. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.