Analyzing Northrim BanCorp (NASDAQ:NRIM) & First Republic Bank (OTCMKTS:FRCB)

First Republic Bank (OTCMKTS:FRCB) and Northrim BanCorp (NASDAQ:NRIM) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their valuation, profitability, institutional ownership, risk, earnings, dividends and analyst recommendations.

Valuation and Earnings

This table compares First Republic Bank and Northrim BanCorp”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Republic Bank	N/A	N/A	N/A	$1.23	0.00
Northrim BanCorp	$255.58 million	2.18	$64.61 million	$2.88	8.69

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

Risk & Volatility

First Republic Bank has a beta of 3.3, indicating that its stock price is 230% more volatile than the S&P 500. Comparatively, Northrim BanCorp has a beta of 0.9, indicating that its stock price is 10% less volatile than the S&P 500.

Insider & Institutional Ownership

0.0% of First Republic Bank shares are owned by institutional investors. Comparatively, 66.0% of Northrim BanCorp shares are owned by institutional investors. 0.7% of First Republic Bank shares are owned by insiders. Comparatively, 2.4% of Northrim BanCorp shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
First Republic Bank	N/A	N/A	N/A
Northrim BanCorp	24.91%	16.99%	1.63%

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Republic Bank	0	0	0	0	0.00
Northrim BanCorp	0	1	2	0	2.67

Northrim BanCorp has a consensus price target of $33.00, suggesting a potential upside of 31.89%. Given Northrim BanCorp’s stronger consensus rating and higher probable upside, analysts clearly believe Northrim BanCorp is more favorable than First Republic Bank.

Summary

Northrim BanCorp beats First Republic Bank on 11 of the 12 factors compared between the two stocks.

About First Republic Bank

As of May 1, 2023, First Republic Bank went out of business. Previously, First Republic Bank provided private banking, private business banking, and private wealth management services to clients in metropolitan areas in the United States. The company was founded in 1985 and was headquartered in San Francisco, California. First Republic Bank now trades on OTCPK.

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.