More stock at a steep price cut: Northpointe Bancshares Inc. (NPB), the Grand Rapids, Michigan-based parent of a U.S. bank focused on the mortgage business, increased its IPO’s size at pricing – to 10.42 million shares – up from 8.82 million shares – and cut the price to $14.50 – $1.50 below the bottom of its range – to raise $151.09 million on Thursday night, Feb. 13, 2025. The Northpointe deal – the first bank IPO of the year – was marketed at a $16.00-to-$18.00 price range.
Northpointe Bancshares’ stock started trading at $14.60 – up 10 cents from its IPO price – at about 12:36 p.m. EST today, which happens to be Valentine’s Day – Friday, Feb. 14, 2025 – on the New York Stock Exchange. The stock slipped to trade at about $14.57 – up just 7 cents for the day so far – in NYSE trading on volume of about 1.83 million shares.
Keefe, Bruyette & Woods (KBW), a specialist in bank deals, served as the sole book-runner. Piper Sandler and Janney Montgomery Scott were the co-managers.
Of the 10.42 million shares in the upsized IPO, 8.62 million shares were offered by Northpointe Bancshares, while 1.8 million shares were offered by the selling stockholders. Northpointe Bancshares will not receive any proceeds from the sale of the selling stockholders’ shares, according to the prospectus.)
Castle Creek Capital, a private equity firm that invests in community banks, is Northpointe Bancshares’ largest shareholder, according to the prospectus.
Mortgage Purchaser with Midwestern Roots
Northpointe Bancshares’ subsidiary, Northpointe Bank, was founded in 1999 as a mortgage portfolio lender operating mostly in the Midwestern states of Michigan, Ohio and Indiana, according to the prospectus. The bank’s business has evolved since then to include a nationwide mortgage purchase program, residential mortgage loans, digital deposit banking for its retail customers and custodial deposit services for its loan servicing clients.
Northpointe Bank has loan production offices in 23 cities in 15 states. The bank serves customers in all 50 states and the District of Columbia
As of Sept. 30, 2024, Northpointe Bancshares had $5.4 billion in assets. The bank holding company also had $4.8 billion in gross loans, $3.5 billion in deposits and $454.8 million in stockholders’ equity, as of Sept. 30, 2024.
Northpointe Bancshares Inc. is profitable, according to financial statements in the prospectus. The bank holding company reported net income of $45.83 million on revenue of $175.79 million for the 12 months that ended Sept. 30, 2024.
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