On Aug 12, Zacks Investment Research upgraded Northrim Bancorp
) to a Zacks Rank #1 (Strong Buy).
Why the Upgrade?
The rank upgrade of this Alaska-based bank was driven by strong
estimate revisions on the back of the recent acquisition
announcement, dividend increase and impressive second-quarter 2014
On Aug 7, Northrim Bancorp announced that it has inked a cash deal
to acquire one of the biggest mortgage originators in Alaska -
Residential Mortgage Holding Company, LLC, ('RML') - by purchasing
the remaining 76.5% stake in it. At present, Northrim Capital
Investment Company ('NCIC') holds 23.5% of the membership interests
The deal, which is expected to close in fourth-quarter 2014, is
currently valued at $29.8 million. Management expects the deal to
be accretive to 2014 earnings.
On Aug 1, Northrim Bancorp declared a 6% hike in its regular
quarterly cash dividend of 18 cents per share. The new dividend
will be paid on Sep 19 to shareholders of record as of the close of
business on Sep 11.
Further, on Jul 22, Northrim Bancorp released its second-quarter
2014 results. Earnings per share of 63 cents significantly outpaced
the Zacks Consensus Estimate of 37 cents, marking the second
consecutive quarter of earnings beat. Also, the reported figure was
up from the prior-year quarter earnings of 40 cents per share.
Notably, the acquisition of Alaska Pacific Bancshares contributed
to revenues and earnings in the second-quarter results.
The Zacks Consensus Estimate for 2014 advanced 18.5% to $2.11 per
share over the past 30 days. Also, for 2015, it moved north 12.4%
to $2.53 per share.
Other Stocks to Consider
Other stocks in the finance sector worth considering include
Central Valley Community Bancorp (
), Sierra Bancorp (
) and Great Southern Bancorp Inc. (
). All three stocks hold the same rank as Northrim Bancorp.
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