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Northpointe Bancshares, Inc. (NPB)
NYSE:NPB
US Market
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Northpointe Bancshares, Inc. (NPB) AI Stock Analysis

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NPB

Northpointe Bancshares, Inc.

(NYSE:NPB)

Rating:70Outperform
Price Target:
$16.50
▼(-0.36% 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.

Northpointe Bancshares, Inc. (NPB) vs. SPDR S&P 500 ETF (SPY)

Northpointe Bancshares, Inc. Business Overview & Revenue Model

Company DescriptionNorthpointe Bancshares, Inc. (NPB) is a financial services holding company based in the United States, primarily engaged in providing a range of banking products and services. Operating through its subsidiary, Northpointe Bank, the company offers personal and commercial banking solutions, including checking and savings accounts, mortgages, and business loans. NPB focuses on delivering exceptional customer service and innovative financial products tailored to meet the needs of its clients across various sectors.
How the Company Makes MoneyNorthpointe 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
75
Positive
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
68
Positive
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
60
Neutral
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.
BreakdownTTMDec 2024Dec 2023Dec 2022
Income Statement
Total Revenue198.34M390.45M362.45M324.24M
Gross Profit96.05M187.47M197.77M255.34M
EBITDA38.97M76.68M48.70M37.71M
Net Income28.24M55.16M33.76M23.24M
Balance Sheet
Total Assets5.86B5.22B4.76B4.40B
Cash, Cash Equivalents and Short-Term Investments330.09M384.87M366.62M283.32M
Total Debt1.40B1.30B1.31B981.25M
Total Liabilities5.27B4.76B4.33B3.98B
Stockholders Equity586.52M462.49M430.62M417.31M
Cash Flow
Free Cash Flow64.63M18.76M498.64M1.35B
Operating Cash Flow65.04M19.81M504.17M1.35B
Investing Cash Flow-629.60M-458.24M-750.68M-1.18B
Financing Cash Flow445.31M462.83M324.17M-354.76M

Northpointe Bancshares, Inc. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
$500.23M14.958.08%4.67%67.70%39.18%
76
Outperform
$515.86M14.4511.28%2.13%1.61%38.81%
75
Outperform
$484.29M9.7517.02%1.03%10.57%31.14%
73
Outperform
$530.06M10.5012.08%4.80%6.15%-1.27%
70
Outperform
$569.42M
0.30%
69
Neutral
$522.22M18.684.56%2.81%5.00%72.45%
68
Neutral
$17.56B11.6110.34%3.76%9.69%0.41%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
NPB
Northpointe Bancshares, Inc.
16.56
2.02
13.89%
FMNB
Farmers National Banc Oh
14.83
0.36
2.49%
UNTY
Unity Bancorp
52.22
18.76
56.07%
HONE
HarborOne Bancorp
12.69
-0.05
-0.39%
GNTY
Guaranty Bancshares
48.50
15.93
48.91%
PFIS
Peoples Financial Services
52.87
7.97
17.75%

Northpointe Bancshares, Inc. Corporate Events

Executive/Board ChangesBusiness Operations and Strategy
Northpointe Bancshares Expands Board with New Appointments
Positive
Aug 11, 2025

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.

The most recent analyst rating on (NPB) stock is a Buy with a $16.50 price target. To see the full list of analyst forecasts on Northpointe Bancshares, Inc. stock, see the NPB Stock Forecast page.

Financial Disclosures
Northpointe Bancshares Updates 2025 Expense Guidance
Neutral
Jul 24, 2025

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.

The most recent analyst rating on (NPB) stock is a Buy with a $16.50 price target. To see the full list of analyst forecasts on Northpointe Bancshares, Inc. stock, see the NPB Stock Forecast page.

DividendsBusiness Operations and StrategyFinancial Disclosures
Northpointe Bancshares Reports Strong Q2 2025 Results
Positive
Jul 22, 2025

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.

The most recent analyst rating on (NPB) stock is a Buy with a $16.50 price target. To see the full list of analyst forecasts on Northpointe Bancshares, Inc. stock, see the NPB Stock Forecast page.

Executive/Board ChangesBusiness Operations and Strategy
Northpointe Bancshares Updates Executive Employment Agreements
Neutral
Jul 1, 2025

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.

The most recent analyst rating on (NPB) stock is a Buy with a $16.50 price target. To see the full list of analyst forecasts on Northpointe Bancshares, Inc. stock, see the NPB Stock Forecast page.

DividendsRegulatory Filings and Compliance
Northpointe Bancshares Announces Special Cash Dividend
Positive
May 22, 2025

Northpointe Bancshares, Inc. recently amended its registration rights agreements for its Series A and Series B preferred stocks. The amendments extend the deadlines for certain filing obligations to January 2, 2026, and January 2, 2027, respectively. Additionally, the company announced a one-time special cash dividend of $2.50 per share for both Series A and Series B preferred stockholders, payable on June 30, 2025, to holders of record as of May 21, 2025.

The most recent analyst rating on (NPB) stock is a Buy with a $16.50 price target. To see the full list of analyst forecasts on Northpointe Bancshares, Inc. stock, see the NPB Stock Forecast page.

Shareholder Meetings
Northpointe Bancshares Holds Annual Stockholders Meeting
Neutral
May 15, 2025

On May 15, 2025, Northpointe Bancshares, Inc. held its annual stockholders meeting via conference call. During the meeting, shareholders voted on two key proposals. The first proposal involved the election of directors, with all nominated individuals elected to serve a one-year term on the board. The second proposal was the ratification of RSM US LLP as the company’s independent registered public accounting firm for the fiscal year ending December 31, 2025, which was approved.

The most recent analyst rating on (NPB) stock is a Buy with a $16.50 price target. To see the full list of analyst forecasts on Northpointe Bancshares, Inc. stock, see the NPB Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 12, 2025