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Northrim Bancorp (NRIM) Hikes Quarterly Cash Dividend by 1.6%

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Northrim BanCorp, Inc. (NRIM - Free Report) announced a quarterly cash dividend of 62 cents per share. This reflects a 1.6% hike from the prior payout. The dividend will be paid out on Sep 13, 2024, to shareholders of record as of Sep 5.

Prior to the latest hike, NRIM increased its dividend by 1.7% to 61 cents per share this January. The company has hiked its dividend 10 times in the last five years, with an annualized dividend growth of 17.18%.

Currently, Northrim Bancorp’s payout ratio is 42% of its earnings. This indicates that it retains adequate earnings for reinvestment and future growth initiatives while still delivering decent returns to its shareholders.

Based on its closing price of $67.82 as of Aug 23, NRIM’s current dividend yield is 3.7%.

Northrim BanCorp Inc Dividend Yield (TTM)

Northrim BanCorp Inc Dividend Yield (TTM)

Northrim BanCorp Inc dividend-yield-ttm | Northrim BanCorp Inc Quote

The company has an ongoing share repurchase program too. The plan, announced in January 2024, authorized the repurchase of additional 0.1 million shares, with no expiration date. As of Jun 30, 2024, the whole authorization remained available.

Before this, the company authorized a repurchase plan of 0.3 million shares in January 2023.

Northrim Bancorp has a strong balance sheet. As of Jun 30, 2024, total cash and due from banks was $33.4 million and borrowings were $44 million. Net loans were $1.9 billion and total deposits were $2.4 billion. This indicates a decent liquidity position.

Further, its common equity Tier-1 risk-based capital ratio of 11.2% and the total risk-based capital ratio of 12.6% were well above regulatory requirements.

Given its decent capital position and liquidity position, NRIM is expected to sustain its current capital distribution activities and keep enhancing shareholder value.

Year to date, shares of Northrim Bancorp have risen 18.5% compared with the industry’s growth of 9.2%.

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Currently, NRIM carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other Banks That Announced Dividend Hike

Earlier this month, Stock Yards Bancorp, Inc. (SYBT - Free Report) announced a quarterly cash dividend of 31 cents per share. This reflects a 3.3% hike from the prior payout. The dividend will be paid out on Oct 1, 2024, to shareholders of record as of Sep 16.

Markedly, with this announcement, Stock Yards Bancorp has increased its quarterly dividend 17 times since 2011, reflecting a cumulative hike of 158% over the period.

United Community Banks, Inc. (UCB - Free Report) increased its quarterly cash dividend by 4.3% to 24 cents per share. The dividend will be paid out on Oct 24 to its shareholders as of Sep 16, 2024. Further, the board authorized an increase in the existing share repurchase plan.

Before the recent dividend hike, UCB increased its dividend by 4.5% to 23 cents per share in February 2023. The company has hiked its dividend seven times in the last five years, with annualized dividend growth of 7.37%.

Concurrently, United Community amended its existing share repurchase program. The board increased the program to $100 million and extended the expiration of the authorization to Dec 31, 2025.


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