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Northpointe Bancshares, Inc.
(NYSE:NPB)
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Rating:65Neutral
Price Target:
$16.50
▼(-14.02% Downside)
Action:Downgraded
Date:10/07/26
The score is driven primarily by improved profitability and constructive earnings-call guidance, supported by a low P/E valuation. These positives are tempered by elevated leverage and uneven cash-flow history, and the technical picture remains weak with the stock trading below all major moving averages and negative momentum.
Positive Factors
Profitability and earnings growth
The sharp improvement in net income, margins, and revenue indicates stronger earnings capacity than in prior years. If profitability remains elevated, NPB can build capital internally, support lending growth, and absorb operating or credit pressures more effectively over the next several quarters.
Negative Factors
Elevated leverage
The materially higher leverage profile increases NPB’s sensitivity to credit losses, funding costs, and interest-rate pressure. Greater reliance on debt also reduces balance-sheet flexibility, potentially limiting the company’s ability to expand assets or withstand a weaker banking environment without raising capital.
Read all positive and negative factors
Positive Factors
Negative Factors
Profitability and earnings growth
The sharp improvement in net income, margins, and revenue indicates stronger earnings capacity than in prior years. If profitability remains elevated, NPB can build capital internally, support lending growth, and absorb operating or credit pressures more effectively over the next several quarters.
Read all positive factors
Northpointe Bancshares, Inc. (NPB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$531.18M
Dividend Yield0.64%
Average Volume (3M)247.56K
Price to Earnings (P/E)6.6
Beta (1Y)0.90
Revenue Growth19.65%
EPS Growth31.99%
CountryUS
Employees483
SectorGeneral
Sector StrengthN/A
IndustryBanks - Regional
Share Statistics
EPS (TTM)2.35
Shares Outstanding34,581,840
10 Day Avg. Volume266,652
30 Day Avg. Volume247,565
Financial Highlights & Ratios
PEG Ratio0.14
Price to Book (P/B)0.99
Price to Sales (P/S)1.19
P/FCF Ratio13.51
Enterprise Value/Market Cap3.34
Enterprise Value/Revenue4.00
Enterprise Value/Gross Profit8.89
Enterprise Value/Ebitda28.28
Forecast
1Y Price Target
$21.50Price Target Upside12.04% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)2.47
Revenue Forecast (FY)$258.48M
Northpointe Bancshares, Inc. Business Overview & Revenue Model
Company Description
Northpointe Bancshares, Inc. serves as the parent company for Northpointe Bank, offering a broad spectrum of financial products and banking services throughout the United States. The organization's activities are structured into two main divisions...
How the Company Makes Money
NPB makes money primarily through traditional banking revenue streams generated by its banking subsidiary: (1) Net interest income: the spread between interest earned on loans and other interest-earning assets (such as residential and commercial l...
Northpointe Bancshares, Inc. Earnings Call Summary
Earnings Call Date:Jul 21, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 20, 2026
Earnings Call Sentiment Positive
The call emphasized multiple operational and financial strengths: meaningful year-over-year EPS growth (+21%), tangible book value expansion, strong MPP growth (MPP balances +36% YoY), robust deposit growth across categories (noninterest-bearing +30%, interest-bearing demand +81%, savings/MM +45% YoY), low credit losses (net charge-offs 3 bps) and clear multi-point guidance for 2026. Offsetting these positives were margin compression (NIM down ~9 bps; MPP yields down 24 bps QoQ), some sequential softness in saleable mortgage volume and continued reliance on wholesale/brokered funding with elevated cost of funds. Management articulated levers to manage growth (participations, adding funding partners, pursuing core deposits) and maintained constructive guidance. Overall, the positives (strong growth, profitability, asset quality, and actionable guidance) outweigh the operational headwinds related to margin pressure and funding mix.Positive Updates
Earnings and Profitability
Q2 net income to common stockholders of $21.3M, or $0.60 per diluted share; year-to-date diluted EPS $1.22. Return on average assets 1.18% and return on average tangible common equity 14.69%.
Negative Updates
Net Interest Margin Compression
Quarterly net interest margin declined to 2.33% (YTD 2.37%), down ~9 basis points sequentially. Management attributed compression primarily to lower MPP yields (average MPP yield down 24 bps QoQ) and tighter spreads from increased competition.
Read all updates
Q2-2026 Updates
Positive
Negative
Earnings and Profitability
Q2 net income to common stockholders of $21.3M, or $0.60 per diluted share; year-to-date diluted EPS $1.22. Return on average assets 1.18% and return on average tangible common equity 14.69%.
Read all positive updates
Company Guidance
The company reiterated full-year 2026 guidance calling for a net interest margin of 2.3%–2.4% (Q2 NIM was 2.33%, YTD 2.37%), cost of funds near 4.01%, and no assumed Fed moves; period‑end MPP balances of $4.1–$4.3 billion (with ~$300–$500 million on average expected to be participated out), AIO loan balances of $900 million–$1.0 billion, and the remainder of loans (ex‑MPP/AIO) to decline to $1.9–$2.1 billion by year‑end; provision expense of $2–$3 million; total saleable mortgage originations of $2.2–$2.4 billion with all‑in margins of 2.75%–3.25%; MPP fees of $9–$11 million and loan servicing revenue of $9–$11 million for the year; noninterest expense of $138–$142 million; the balance sheet was $7.5 billion at 6/30/26 with a wholesale funding ratio of ~63%, and management plans to fund growth via brokered CDs, retail/core deposit relationships, and participations while exploring investment tax credits (Q2 effective tax rate 24.72%).Northpointe Bancshares, Inc. Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
62
Positive
Cash Flow
55
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 443.11M | 471.18M | 390.45M | 362.45M | 324.24M | 2.17M |
| Gross Profit | 199.19M | 239.62M | 187.47M | 197.77M | 255.34M | 1.02M |
| EBITDA | 62.64M | 113.47M | 76.68M | 48.70M | 37.71M | -56.67M |
| Net Income | 89.72M | 83.41M | 55.16M | 33.76M | 23.24M | -57.44M |
Balance Sheet | ||||||
| Total Assets | 7.53B | 7.02B | 5.22B | 2.61B | 4.07B | 878.74M |
| Cash, Cash Equivalents and Short-Term Investments | 543.24M | 496.46M | 384.87M | 2.28B | 3.45B | 670.96M |
| Total Debt | 1.63B | 1.54B | 1.30B | 133.87M | 74.98M | 17.64M |
| Total Liabilities | 6.92B | 6.45B | 4.76B | 894.81M | 1.16B | 163.42M |
| Stockholders Equity | 611.65M | 569.04M | 462.49M | 1.72B | 2.91B | 715.33M |
Cash Flow | ||||||
| Free Cash Flow | 98.56M | 41.53M | 18.76M | -26.92M | -82.91M | -155.52M |
| Operating Cash Flow | 99.86M | 44.29M | 19.81M | -24.11M | -79.52M | -150.88M |
| Investing Cash Flow | -917.05M | -1.63B | -458.24M | -222.41M | 255.90M | -112.76M |
| Financing Cash Flow | 889.15M | 1.71B | 462.83M | 324.17M | -354.76M | 92.09M |
Northpointe Bancshares, Inc. Technical Analysis
Neutral
19.19
Price Trends
16.69
Negative
17.32
Negative
17.47
Negative
Market Momentum
-0.51
Positive
41.52
Neutral
69.11
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NPB, the sentiment is Neutral. The current price of 19.19 is above the 20-day moving average (MA) of 15.95, above the 50-day MA of 16.69, and above the 200-day MA of 17.47, indicating a bearish trend. The MACD of -0.51 indicates Positive momentum. The RSI at 41.52 is Neutral, neither overbought nor oversold. The STOCH value of 69.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for NPB.
Northpointe Bancshares, Inc. Risk Analysis
Northpointe Bancshares, Inc. disclosed 58 risk factors in its most recent earnings report. Northpointe Bancshares, Inc. reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Northpointe Bancshares, Inc. Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $548.78M | 7.95 | 20.68% | 2.64% | 18.07% | 52.19% | |
76 Outperform | $651.94M | 11.54 | 13.85% | 1.26% | 11.76% | 26.80% | |
71 Outperform | $549.03M | 9.44 | 16.64% | 1.16% | 10.15% | 16.03% | |
69 Neutral | $574.65M | 12.78 | 10.18% | ― | 8.92% | 74.86% | |
68 Neutral | $557.41M | 9.89 | 10.05% | 2.66% | 4.88% | 6.47% | |
65 Neutral | $531.18M | 6.62 | 14.99% | 0.64% | 19.65% | 31.99% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
NPB
Northpointe Bancshares, Inc.
15.55
-1.86
-10.70%
CIVB
Civista Bancshares
26.71
6.40
31.52%
NRIM
Northrim Bancorp
24.65
3.67
17.49%
SFST
Southern First Bancshares
60.44
16.88
38.75%
UNTY
Unity Bancorp
55.23
6.88
14.23%
CBNK
Capital Bancorp
39.59
9.92
33.45%
Northpointe Bancshares, Inc. Corporate Events
Dividends
Northpointe Bancshares Boosts Quarterly Dividend by 20%
Positive
Oct 6, 2026
On October 6, 2026, Northpointe Bancshares, Inc. announced that its board approved a 20% increase in the quarterly cash dividend, raising it from $0.025 to $0.03 per common share. The dividend will be paid on November 4, 2026, to shareholders of r...
Business Operations and StrategyDividendsFinancial Disclosures
Northpointe Bancshares Posts Solid Second-Quarter 2026 Earnings
Positive
Jul 21, 2026
For the second quarter ended June 30, 2026, Northpointe Bancshares reported net income to common shareholders of $21.3 million, or $0.60 per diluted share, slightly below the prior quarter but up from $18.0 million a year earlier. Key profitabilit...
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.