Northpointe Bancshares, Inc. (NPB) AI Stock Analysis

• Market Cap: $634.03M
• Dividend Yield: 0.28%
• Average Volume (3M): 171.33K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.15
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 491
• Sector: Financial
• Sector Strength: 74
• Industry: Banks - Regional
• EPS (TTM): 0.51
• Shares Outstanding: 34,364,660
• 10 Day Avg. Volume: 160,499
• 30 Day Avg. Volume: 171,333
• PEG Ratio: 0.06
• Price to Book (P/B): 1.08
• Price to Sales (P/S): 1.27
• P/FCF Ratio: 26.52
• Enterprise Value/Market Cap: 2.16
• Enterprise Value/Revenue: 4.37
• Enterprise Value/Gross Profit: 8.88
• Enterprise Value/Ebitda: 20.66
• 1Y Price Target: $17.81
• Price Target Upside: -3.47% Downside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 70 Outperform
• Price Target: $16.50 ▼(-10.57% Downside)

Northpointe Bancshares, Inc. demonstrates strong financial performance with revenue growth and profitability improvements, supported by positive corporate events such as board expansion and special dividends. However, high leverage and declining cash flow pose risks. Technical indicators show a positive trend, but valuation metrics are limited by the absence of a P/E ratio.

Positive Factors

Board Expansion

The board expansion with experienced directors enhances governance and supports long-term growth, aligning with the company's strategic goals.

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, contributing to long-term financial stability.

Mortgage Purchase Program Growth

The growth in the Mortgage Purchase Program reflects robust demand and enhances the company's revenue base, supporting sustainable financial performance.

Negative Factors

High Leverage

High leverage can increase financial risk, especially if interest rates rise, potentially impacting the company's long-term financial health.

Declining Cash Flow

The decline in cash flow limits the company's ability to invest in growth opportunities and manage debt, affecting long-term financial stability.

Low Equity Ratio

A low equity ratio can affect financial stability in adverse conditions, limiting the company's ability to absorb financial shocks.

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. It offers noninterest-bearing accounts, savings, money-market demand accounts, and certificates of deposits; personal and business banking, kids saving, and health saving accounts; home loans; and mortgage purchase program. The company 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
Income Statement
Total Revenue	313.87M	390.45M	362.45M	324.24M
Gross Profit	154.42M	187.47M	197.77M	255.34M
EBITDA	66.39M	76.68M	48.70M	37.71M
Net Income	48.58M	55.16M	33.76M	23.24M
Balance Sheet
Total Assets	6.43B	5.22B	4.76B	4.40B
Cash, Cash Equivalents and Short-Term Investments	424.44M	384.87M	366.62M	283.32M
Total Debt	1.30B	1.30B	1.31B	981.25M
Total Liabilities	5.83B	4.76B	4.33B	3.98B
Stockholders Equity	604.28M	462.49M	430.62M	417.31M
Cash Flow
Free Cash Flow	-9.11M	18.76M	498.64M	1.35B
Operating Cash Flow	-7.26M	19.81M	504.17M	1.35B
Investing Cash Flow	-1.02B	-458.24M	-750.68M	-1.18B
Financing Cash Flow	997.79M	462.83M	324.17M	-354.76M

Northpointe Bancshares, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FMNB	81 Outperform	$569.59M	11.14	12.08%	4.49%	6.15%	-1.27%
PFIS	76 Outperform	$533.42M	15.65	8.08%	4.63%	67.70%	39.18%
UNTY	75 Outperform	$532.75M	10.62	17.02%	1.08%	10.57%	31.14%
GNTY	75 Outperform	$558.87M	15.47	11.28%	1.99%	1.61%	38.81%
NPB	70 Outperform	$634.03M	―		0.28%	―	―
HONE	69 Neutral	$564.08M	19.72	4.56%	2.74%	5.00%	72.45%
Sector *	68 Neutral	$18.10B	11.52	9.93%	3.73%	9.70%	1.14%

Northpointe Bancshares, Inc. Corporate Events

Northpointe Bancshares Expands Board with New Appointments

On August 11, 2025, Northpointe Bancshares, Inc. and its subsidiary, Northpointe Bank, announced the appointment of Raj Chaudhary, David Lawrence, and John Tuttle to their Boards of Directors, effective August 12, 2025. This expansion from 7 to 10 directors is expected to enhance the company’s governance and support its long-term growth strategy. The new directors bring extensive experience in technology, cybersecurity, financial services, and capital markets, which aligns with Northpointe’s commitment to strong governance and innovation.

Northpointe Bancshares Updates 2025 Expense Guidance

On July 23, 2025, Northpointe Bancshares, Inc. hosted its second quarter 2025 earnings conference call and webcast. The company issued a correction regarding its full-year 2025 non-interest expense guidance, which was initially misread during the call. The correct guidance range is $124 million to $128 million, and the transcript on the company’s website has been updated accordingly.

Northpointe Bancshares Reports Strong Q2 2025 Results

On July 22, 2025, Northpointe Bancshares, Inc. reported its financial results for the second quarter of 2025, showcasing a net income of $18.0 million, a 20% increase from the previous quarter. The company experienced significant growth in its Mortgage Purchase Program, with a 42% increase in average balances and over $9 billion in total loans funded. Additionally, Northpointe completed an initiative to secure $250 million in new custodial deposits expected in the third quarter. The company’s financial performance improved with a rise in net interest income and a decrease in provision for credit losses, despite a slight decline in non-interest income. The Board of Directors declared a regular quarterly cash dividend, and the company entered into an agreement to sell home equity loans, enhancing its financial position.

Northpointe Bancshares Updates Executive Employment Agreements

On June 26, 2025, Northpointe Bancshares, Inc. announced new employment agreements with key executives, including Amy M. Butler, David J. Christel, Kevin J. Comps, and Brad T. Howes. These agreements, which replace previous contracts for some executives, outline base salaries, incentive compensation, and severance terms, reflecting the company’s commitment to retaining top leadership talent. The agreements have implications for the company’s operational stability and strategic continuity, ensuring that executive compensation aligns with performance and market conditions.