Is Northrim BanCorp, Inc. overvalued or undervalued?

As of 21 November 2025, the valuation grade for Northrim BanCorp, Inc. has moved from fair to attractive, indicating a more favorable assessment of its value. The company appears to be undervalued, supported by a P/E ratio of 11, a PEG ratio of 0.24, and an impressive ROCE of 80.55%. In comparison to peers, Orrstown Financial Services, Inc. has a P/E of 10.63 while Unity Bancorp, Inc. shows a P/E of 11.21, suggesting that Northrim is competitively positioned within its industry.
Despite a challenging long-term performance reflected in the 3-year and 5-year returns of -56.02% and -29.07% respectively, Northrim has outperformed the S&P 500 in the short term, with a year-to-date return of 25.74% compared to the index's 12.26%. This short-term strength reinforces the attractiveness of the stock in light of its current valuation metrics.