Is Northrim BanCorp, Inc. overvalued or undervalued?

As of 28 November 2025, the valuation grade for Northrim BanCorp, Inc. has moved from attractive to fair. The company appears to be fairly valued based on its current metrics, with a P/E ratio of 11, a Price to Book Value of 1.75, and an EV to EBITDA of 4.97. In comparison to peers, Orrstown Financial Services, Inc. has a P/E of 10.63, while Unity Bancorp, Inc. has a P/E of 11.21, indicating that Northrim is positioned competitively within its industry.
Despite the recent downgrade in valuation grade, Northrim BanCorp has shown a strong year-to-date return of 26.05%, outperforming the S&P 500's return of 16.45% during the same period. However, its long-term performance has been less favorable, with a three-year return of -55.68% compared to the S&P 500's 72.78%. Overall, the current valuation suggests that the stock is fairly valued in relation to its peers and market performance.