Northrim BanCorp (NASDAQ:NRIM) vs. First National Bank Alaska (OTCMKTS:FBAK) Critical Contrast

First National Bank Alaska (OTCMKTS:FBAK) and Northrim BanCorp (NASDAQ:NRIM) are both small-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, dividends, risk, valuation, profitability and earnings.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for First National Bank Alaska and Northrim BanCorp, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First National Bank Alaska	0	0	0	0	0.00
Northrim BanCorp	0	0	1	0	3.00

Northrim BanCorp has a consensus price target of $26.00, suggesting a potential upside of 16.23%. Given Northrim BanCorp’s stronger consensus rating and higher possible upside, analysts plainly believe Northrim BanCorp is more favorable than First National Bank Alaska.

Risk and Volatility

First National Bank Alaska has a beta of 0.24, suggesting that its share price is 76% less volatile than the S&P 500. Comparatively, Northrim BanCorp has a beta of 0.97, suggesting that its share price is 3% less volatile than the S&P 500.

Insider & Institutional Ownership

66.0% of Northrim BanCorp shares are owned by institutional investors. 3.9% of Northrim BanCorp shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Dividends

First National Bank Alaska pays an annual dividend of $16.00 per share and has a dividend yield of 6.0%. Northrim BanCorp pays an annual dividend of $0.64 per share and has a dividend yield of 2.9%. First National Bank Alaska pays out 68.5% of its earnings in the form of a dividend. Northrim BanCorp pays out 8.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Northrim BanCorp has raised its dividend for 16 consecutive years.

Profitability

This table compares First National Bank Alaska and Northrim BanCorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First National Bank Alaska	N/A	14.33%	1.48%
Northrim BanCorp	20.11%	16.35%	1.45%

Earnings & Valuation

This table compares First National Bank Alaska and Northrim BanCorp”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First National Bank Alaska	$87.73 million	9.61	$67.05 million	$23.37	11.38
Northrim BanCorp	$195.96 million	2.52	$36.97 million	$7.99	2.80

First National Bank Alaska has higher earnings, but lower revenue than Northrim BanCorp. Northrim BanCorp is trading at a lower price-to-earnings ratio than First National Bank Alaska, indicating that it is currently the more affordable of the two stocks.

Summary

Northrim BanCorp beats First National Bank Alaska on 11 of the 17 factors compared between the two stocks.

About First National Bank Alaska

First National Bank Alaska, a commercial bank, provides various banking products and services for business, industry, and individual customers primarily in Alaska. The company offers savings and checking accounts; money market deposits; safe deposit services; certificates of deposit; individual retirement accounts; and personal, home equity, and construction loans, as well as loans for stability and growth. It also provides investment, treasury, trust, and wealth management services; and escrow and contract collection, and bankcard services. In addition, the company offers debit and credit cards, online and mobile banking, fraud prevention, and convenience banking services. First National Bank Alaska was founded in 1922 and is headquartered in Anchorage, Alaska.

About Northrim BanCorp

Northrim BanCorp, Inc. operates as the bank holding company for Northrim Bank that provides commercial banking products and services to businesses and professional individuals. It operates through two segments, Community Banking and Home Mortgage Lending. The company offers noninterest-bearing checking accounts and interest-bearing time deposits, checking and savings accounts, individual retirement and money market deposit accounts, certificates of deposit, and business sweep accounts. It also provides short and medium-term commercial loans, commercial credit lines, construction and real estate loans, and consumer loans, as well as short-term working capital. In addition, the company offers other services comprising consumer and business online banking, mobile app, and mobile deposits; and debit and credit cards. Further, it provides mobile web and app banking, consumer online account opening, personal finance, online documents, consumer debit cards, business debit cards, my rewards for consumer debit cards, retail lockbox, card control, corporate purchase cards, integrated payables, home equity advantage access cards, telebanking, and automated teller services. Additionally, the company offers personalized checks at account opening, overdraft protection from a savings account, commercial drive-up banking, automatic transfer and payment, People Pay, external transfer, Bill Pay, wire transfer, direct payroll deposit, electronic tax payment, Automated Clearing House origination and receipt, remote deposit capture, account reconciliation and positive pay, merchant, cash management, annuity, and long-term investment portfolio products and services. It also provides investment advisory, trust, wealth management, factoring, and mortgage services. The company was founded in 1990 and is headquartered in Anchorage, Alaska.