Insiders Are Buying Northrim BanCorp

Oct.29.13 | About: Northrim BanCorp (NRIM)

In this article, I will feature one bank that has seen intensive insider buying during the last 30 days. Intensive insider buying can be defined by the following three criteria:

  1. The stock is purchased by three or more insiders within one month.
  2. The stock is sold by no insiders in the month of intensive purchasing.
  3. At least two purchasers increase their holdings by more than 10%.

Northrim BanCorp (NASDAQ:NRIM) operates as the bank holding company for Northrim Bank that provides commercial banking products and services to businesses, professionals, and individuals primarily in Alaska.

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Insider buying during the last 30 days

Here is a table of Northrim BanCorp's insider-trading activity during the last 30 days by insider.

Name Title Trade Date Shares Purchased Current Ownership Increase In Shares
David McCambridge Director Oct 25 460 2,575 shares +21.7%
Richard Lowell Director Oct 25 500 4,200 shares +13.5%
Ronald Davis Director Oct 25 401 7,950 shares +5.3%
Mark Copeland Director Oct 25 400 18,943 shares +2.2%
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There have been 1,761 shares purchased by insiders during the last 30 days.

Insider buying by calendar month

Here is a table of Northrim BanCorp's insider-trading activity by calendar month.

Month Insider buying / shares Insider selling / shares
October 2013 1,761 0
September 2013 0 0
August 2013 0 0
July 2013 0 0
June 2013 0 0
May 2013 0 0
April 2013 0 0
March 2013 0 0
February 2013 1,000 0
January 2013 0 1,150
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There have been 2,761 shares purchased and there have been 1,150 shares sold by insiders this year.


Northrim reported the third-quarter financial results on October 22 with the following highlights:

Net income $3.5 million
Book value $21.89 per share
Tangible book value $20.66 per share
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Alaska's economy continued to grow in the third quarter with encouraging new investments in energy development on the North Slope and continued efforts to find transportation and market solutions for Alaska's North Slope natural gas reserves.


Here is a table comparing Northrim to the peer group.

  NRIM Peer average
Price/Earnings 12.68 20.16
Price/Book 112.99% 127.66%
Dividend yield 2.75% 1.63%
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Northrim's P/E and P/B ratios are below the peer average. Northrim has also a higher dividend yield than the peer group.


There have been four different insiders buying Northrim and there have not been any insiders selling Northrim during the last 30 days. Two of these four insiders increased their holdings by more than 10%. Northrim has an insider ownership of 4.67%.

Northrim has a book value of $21.89 per share and the stock has a dividend yield of 2.75%. I believe the stock could be a good pick at the book value of $21.89 per share based on the intensive insider buying.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.