Is Northrim BanCorp, Inc. overvalued or undervalued?

As of 3 October 2025, the valuation grade for Northrim BanCorp, Inc. moved from fair to expensive, indicating that the stock is overvalued. The company has a P/E ratio of 11, a Price to Book Value of 1.75, and an EV to EBITDA of 4.97, which suggest that it is trading at a premium compared to its peers. For instance, Orrstown Financial Services, Inc. has a P/E of 10.63, while Unity Bancorp, Inc. has a P/E of 11.21, both of which are more attractive than Northrim's current valuation.
In terms of recent performance, Northrim BanCorp has underperformed the S&P 500 over the past week and month, with returns of -3.35% and -7.01%, respectively, while the S&P 500 gained 1.09% and 4.15%. However, it has shown a positive return of 27.16% over the past year, outpacing the S&P 500's 17.82%. Overall, given the current valuation metrics and peer comparisons, Northrim BanCorp appears to be overvalued.