Northpointe Bancshares, Inc. (NPB) AI Stock Analysis

• Market Cap: $598.98M
• Dividend Yield: 0.42%
• Average Volume (3M): 151.41K
• Price to Earnings (P/E): 8.3
• Beta (1Y): 1.11
• Revenue Growth: 18.10%
• EPS Growth: 33.47%
• Country: US
• Employees: 491
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.52
• Shares Outstanding: 34,364,660
• 10 Day Avg. Volume: 104,958
• 30 Day Avg. Volume: 151,405
• PEG Ratio: 0.04
• Price to Book (P/B): 0.15
• Price to Sales (P/S): 0.55
• P/FCF Ratio: 11.53
• Enterprise Value/Market Cap: 2.19
• Enterprise Value/Revenue: 2.98
• Enterprise Value/Gross Profit: 6.01
• Enterprise Value/Ebitda: 13.61
• 1Y Price Target: $21.00
• Price Target Upside: 15.89% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 2.77
• Revenue Forecast (FY): $271.17M

• Rating: 71 Outperform
• Price Target: $20.00 ▲(10.38% Upside)
• Action: Reiterated Date: 01/26/26
• Date: Action: Reiterated 01/26/26

The score is driven primarily by mixed financial fundamentals: solid growth and profitability improvements are weighed down by high leverage and sharply weaker free cash flow. Technicals are supportive (price above major moving averages with positive MACD), and valuation is favorable due to the low P/E. Earnings call tone and 2026 guidance were broadly positive, tempered by wholesale funding and credit/expense risks.

Positive Factors

Mortgage Purchase Program (MPP) expansion

Sustained, large-scale MPP growth materially shifts asset mix toward higher-yield loans and scales fee income and servicing opportunities. This structurally increases net interest income potential and creates repeatable revenue streams, strengthening long-term earnings power if credit holds.

Improving profitability and capital creation

Double-digit EPS growth with improved ROA and ROTCE signals that growth is translating into shareholder returns, supporting retained earnings and tangible book growth. Persistent profit improvement enhances capital cushions and gives management flexibility for investment and dividends over the medium term.

Deposit gathering via digital partnership

Attracting large core deposits through a digital channel diversifies funding, lowers dependency on short-term wholesale over time, and enhances customer acquisition scale. Durable deposit relationships reduce marginal funding costs and support sustainable asset growth if retention remains steady.

Negative Factors

High reliance on wholesale funding

A structurally high wholesale funding share exposes the bank to roll-over, cost and market-access risks, raises FDIC/assessment expense, and makes margins sensitive to funding market stress. This funding mix constrains long-term stability versus peer banks with deeper core deposit bases.

Elevated leverage and low equity ratio

High financial leverage and a thin equity base reduce loss-absorption capacity and increase capital sensitivity to asset shocks. In adverse rate or credit cycles, this structurally limits strategic flexibility, increases refinancing risk on obligations, and raises the cost of conservatively pursuing growth.

Weak cash generation and rising operating costs

Severely reduced free cash flow impairs the bank's ability to fund capex, pay down debt, and absorb credit losses without external capital. Coupled with guided higher noninterest expense and elevated FDIC/insurance costs, this creates a durable constraint on reinvestment and margin sustainability.

Northpointe Bancshares, Inc. Business Overview & Revenue Model

Company Description

Northpointe Bancshares, Inc. operates as the bank holding company for Northpointe Bank provides various banking products and services in the United States. It operates through two segments: Mortgage Purchase Program and Retail Banking. The company offers digital deposit banking, such as noninterest-bearing accounts, savings, money-market demand accounts, and certificates of deposits; personal and business banking; and health saving accounts; home loans; mortgage purchase program; residential mortgage lending; and custodial deposit services. Northpointe Bancshares, Inc. was incorporated in 1998 and is headquartered in Grand Rapids, Michigan.

How the Company Makes Money

Northpointe Bancshares, Inc. generates revenue primarily through interest income, which is earned from loans issued to individuals and businesses. The company provides various types of loans, including residential mortgages, commercial loans, and personal loans, generating interest revenue as customers repay these loans over time. Additionally, NPB earns non-interest income through fees associated with account services, transaction services, and financial advisory services. The bank may also benefit from partnerships with mortgage brokers and financial advisors, which can expand its customer base and enhance revenue opportunities. Overall, the combination of interest income from loans and fee income from services forms the core of NPB's revenue model.

Northpointe Bancshares, Inc. Financial Statement Overview

Summary

Income statement strength (revenue up 7.74% and improved net margin to 14.13%) is offset by balance-sheet risk (high leverage with 2.82 debt-to-equity and low equity ratio of 8.85%) and weak cash generation (free cash flow down 96.24% and low operating cash flow to net income of 0.36).

Income Statement

Northpointe Bancshares, Inc. has demonstrated solid revenue growth with a 7.74% increase from 2023 to 2024. The gross profit margin stands at 48.01%, indicating efficient cost management. The net profit margin improved to 14.13%, reflecting enhanced profitability. However, the gross profit has decreased, which may indicate rising costs or pricing pressures. EBIT and EBITDA margins are healthy at 18.66% and 19.64%, respectively, showing strong operational performance.

Balance Sheet

The company's debt-to-equity ratio is 2.82, suggesting a high level of leverage, which could pose risks if interest rates rise. The return on equity is 11.92%, indicating reasonable profitability for shareholders. The equity ratio is 8.85%, highlighting a low proportion of equity financing, which could affect financial stability in adverse conditions.

Cash Flow

Free cash flow has significantly decreased by 96.24% from 2023 to 2024, which could impact future investments and debt repayments. The operating cash flow to net income ratio is 0.36, suggesting that cash generation from operations is not fully supporting net income. The free cash flow to net income ratio is 0.34, indicating limited cash available after capital expenditures.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	439.73M	390.45M	362.45M	324.24M	2.17M	36.17M
Gross Profit	217.96M	187.47M	197.77M	255.34M	1.02M	36.17M
EBITDA	96.32M	76.68M	48.70M	37.71M	-56.67M	11.89M
Net Income	70.75M	55.16M	33.76M	23.24M	-57.44M	11.04M
Balance Sheet
Total Assets	6.84B	1.55B	2.61B	4.07B	878.74M	968.50M
Cash, Cash Equivalents and Short-Term Investments	423.91M	1.27B	2.28B	3.45B	670.96M	732.49M
Total Debt	1.40B	28.33M	133.87M	74.98M	17.64M	2.08M
Total Liabilities	6.22B	84.08M	894.81M	1.16B	163.42M	108.05M
Stockholders Equity	623.52M	1.47B	1.72B	2.91B	715.33M	860.45M
Cash Flow
Free Cash Flow	79.76M	18.76M	-26.92M	-82.91M	-155.52M	61.65M
Operating Cash Flow	82.11M	19.81M	-24.11M	-79.52M	-150.88M	62.81M
Investing Cash Flow	-1.49B	-458.24M	-222.41M	255.90M	-112.76M	-29.25M
Financing Cash Flow	1.38B	462.83M	324.17M	-354.76M	92.09M	498.46M

Northpointe Bancshares, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UNTY	80 Outperform	$522.50M	9.18	18.08%	1.08%	11.38%	36.10%
FMNB	72 Outperform	$494.76M	9.06	12.00%	4.95%	3.93%	17.48%
NPB	71 Outperform	$598.98M	8.26	―	0.42%	18.10%	33.47%
PFIS	69 Neutral	$547.60M	9.32	10.83%	4.97%	39.98%	413.87%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Northpointe Bancshares, Inc. Corporate Events

Northpointe Bancshares reports strong first year as public company

On January 20, 2026, Northpointe Bancshares reported that in its first full year as a public company it delivered significantly stronger earnings and robust balance sheet expansion for the quarter and year ended December 31, 2025, supported by net income to common stockholders of $18.4 million for the fourth quarter and $71.6 million for the full year, both up sharply from 2024 despite a modest sequential decline tied to preferred stock redemption costs. The bank’s performance was driven by rapid growth in its Mortgage Purchase Program and All-in-One home equity products, improved net interest margin as funding costs fell, higher net gain on sale of loans, and successful deposit-gathering and capital management initiatives—including a new digital deposit channel, subordinated debt issuance, preferred stock redemption, and a regular cash dividend—collectively strengthening profitability metrics and reinforcing its competitive position in mortgage-centric banking.

The most recent analyst rating on (NPB) stock is a Hold with a $19.50 price target. To see the full list of analyst forecasts on Northpointe Bancshares, Inc. stock, see the NPB Stock Forecast page.

Northpointe Bancshares Redeems Preferred Stock, Shifts Capital Structure

On December 30, 2025, Northpointe Bancshares, Inc. redeemed all of its outstanding 8.25% Fixed-to-Floating Rate Non-Cumulative Perpetual Series A Preferred Stock for a total of $77.0 million, equal to the shares’ liquidation value plus accrued and unpaid dividends. The company financed the redemption using proceeds from its 7.50% Fixed-to-Floating Rate Subordinated Notes due 2035 issued on December 9, 2025, along with cash on hand, reflecting a shift in its capital structure from higher-cost preferred equity to subordinated debt funding.

The most recent analyst rating on (NPB) stock is a Buy with a $20.00 price target. To see the full list of analyst forecasts on Northpointe Bancshares, Inc. stock, see the NPB Stock Forecast page.

Northpointe Bancshares Names David Lawrence Audit Chair

On December 18, 2025, Northpointe Bancshares, Inc. announced that its Board of Directors appointed independent director David F. Lawrence as Chairman of the Audit Committee, effective January 1, 2026, replacing R. Jeffery Dean, who will remain on the committee and the Board. Lawrence, who joined the Audit Committee in August 2025, brings more than 40 years of experience in finance, accounting, financial reporting, audit, compliance, and risk management, including past service as an audit partner at Crowe LLP leading its Michigan Financial Services Audit Practice, and has been deemed independent and financially literate under SEC and NYSE rules, reinforcing the company’s governance and oversight of financial reporting and risk for shareholders and other stakeholders.

The most recent analyst rating on (NPB) stock is a Buy with a $21.00 price target. To see the full list of analyst forecasts on Northpointe Bancshares, Inc. stock, see the NPB Stock Forecast page.

Northpointe Bancshares Completes $70M Subordinated Notes Placement

On December 9, 2025, Northpointe Bancshares, Inc. completed a private placement of $70 million in 7.50% Fixed-to-Floating Rate Subordinated Notes due 2035. The proceeds will be used to redeem its existing 8.25% Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series A, effective December 30, 2025. The Notes, structured to qualify as Tier 2 capital, are initially fixed at 7.50% interest until December 15, 2030, after which they will switch to a floating rate tied to the Three-Month Term Secured Overnight Financing Rate plus 424 basis points. This strategic move is expected to optimize Northpointe’s capital structure and potentially enhance its financial flexibility.

The most recent analyst rating on (NPB) stock is a Buy with a $21.00 price target. To see the full list of analyst forecasts on Northpointe Bancshares, Inc. stock, see the NPB Stock Forecast page.