Northpointe Bancshares, Inc. (NPB) AI Stock Analysis

• Market Cap: $616.50M
• Dividend Yield: 0.42%
• Average Volume (3M): 151.41K
• Price to Earnings (P/E): 9.3
• Beta (1Y): 1.14
• Revenue Growth: 18.10%
• EPS Growth: 33.47%
• Country: US
• Employees: 491
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.57
• Shares Outstanding: 34,364,660
• 10 Day Avg. Volume: 104,958
• 30 Day Avg. Volume: 151,405
• PEG Ratio: <0.01
• Price to Book (P/B): 0.34
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.31
• Enterprise Value/Market Cap: 2.22
• Enterprise Value/Revenue: 24.26
• Enterprise Value/Gross Profit: -12.43
• Enterprise Value/Ebitda: 20.01
• 1Y Price Target: $20.50
• Price Target Upside: 9.80% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: $20.50 ▲(9.80% Upside)

The score is driven by attractive valuation (low P/E and high dividend yield) and a positive earnings outlook supported by strong program/deposit growth, partially offset by weaker financial quality signals (high leverage and sharply lower free cash flow) and softer near-term technical momentum.

Positive Factors

Revenue Growth

The company's consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term financial health.

Mortgage Purchase Program Expansion

The expansion of the Mortgage Purchase Program reflects robust demand and strategic growth, enhancing the company's competitive position in the mortgage market.

Improved Asset Quality

Improved asset quality reduces risk and enhances financial stability, supporting sustainable growth and profitability over time.

Negative Factors

High Leverage

High leverage can increase financial risk, especially in rising interest rate environments, potentially impacting long-term financial stability.

Declining Cash Flow

Declining cash flow limits the company's ability to invest in growth opportunities and manage debt, posing a risk to future financial health.

Increased Net Charge-Offs

Rising net charge-offs indicate potential credit quality issues, which could lead to higher future losses and impact profitability.

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

Northpointe Bancshares, Inc. shows strong revenue growth and profitability improvements, but faces challenges with high leverage and declining cash flow. While operational performance is robust, the company must manage its debt levels and enhance cash flow generation to ensure long-term financial stability.

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	56.52M	0.00	4.49M	324.24M	88.03M	1.54B
Gross Profit	-110.34M	0.00	4.49M	255.34M	41.59M	1.54B
EBITDA	68.53M	-373.45M	-344.25M	37.71M	-2.06B	168.31M
Net Income	4.46M	-162.26M	-1.47B	23.24M	-2.33B	470.92M
Balance Sheet
Total Assets	6.84B	1.55B	2.61B	4.07B	878.74M	968.50M
Cash, Cash Equivalents and Short-Term Investments	0.00	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	-71.98M	18.76M	498.64M	-1.15B	-1.00B	425.55M
Operating Cash Flow	-72.30M	19.81M	504.17M	-1.10B	-973.09M	433.56M
Investing Cash Flow	-386.02M	-458.24M	-750.68M	458.38M	-727.21M	-201.90M
Financing Cash Flow	552.48M	462.83M	324.17M	42.36M	593.92M	3.44B

Northpointe Bancshares, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UNTY	80 Outperform	$542.23M	9.53	18.08%	1.08%	11.38%	36.10%
NPB	70 Outperform	$616.50M	9.34	―	0.42%	18.10%	33.47%
FMNB	70 Outperform	$502.29M	9.24	12.00%	4.95%	3.93%	17.48%
PFIS	69 Neutral	$497.63M	9.41	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 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.

Northpointe Bancshares Reports Strong Q3 2025 Results

On October 21, 2025, Northpointe Bancshares, Inc. announced its financial results for the third quarter of 2025, reporting a net income of $20.1 million, an increase from the previous quarter and the same quarter last year. The company experienced strong growth in its mortgage purchase program and residential lending, with significant increases in loan balances and deposits. The financial performance was marked by improved net interest income and non-interest income, despite a rise in non-interest expenses due to higher salaries and benefits. The company’s strategic initiatives led to an increase in interest-bearing deposits and a decrease in delinquent loans, enhancing its market position and operational efficiency.

The most recent analyst rating on (NPB) stock is a Buy 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.