Northpointe Bancshares, Inc. (“Northpointe”), Announced Today the Pricing of Its Initial Public Offering

Rhea-AI Summary

Northpointe Bancshares has announced the pricing of its initial public offering of 10,420,000 shares of common stock at $14.50 per share. The offering includes 8,620,000 shares from Northpointe and 1,800,000 shares from selling shareholders. Trading is expected to begin on the New York Stock Exchange under symbol NPB on February 14, 2025.

The underwriters have a 30-day option to purchase up to 2,574 additional shares from Northpointe and 1,560,426 shares from selling shareholders. Northpointe expects to receive net proceeds of approximately $114.4 million after expenses, which will be used for general corporate purposes, including business growth and potential preferred stock redemption.

Keefe, Bruyette & Woods is acting as sole book-running manager, with Piper Sandler and Janney Montgomery Scott as co-managers.

Positive

• Expected net proceeds of $114.4 million for company growth and operations
• Successful pricing of IPO at $14.50 per share
• Listing on major exchange (NYSE) increases visibility and trading access

Negative

• Significant portion of IPO shares (1.8 million) being sold by existing shareholders
• Potential dilution for existing shareholders

Insights

Investment Banking Analyst

The pricing of Northpointe Bancshares' IPO marks a notable development in the regional banking sector, with several key implications for investors and the broader financial services landscape. The offering's structure reveals important strategic considerations:

The primary component of 8.62 million new shares will generate approximately $114.4 million in net proceeds, providing significant capital for growth initiatives and potential preferred stock redemption. This dual-purpose capital deployment strategy suggests a focus on both expansion and optimization of the capital structure.

The secondary component of 1.8 million shares from existing shareholders, while representing only about 17% of the total offering, sends a balanced message to the market. This modest selling pressure indicates confidence in the company's future prospects while providing some liquidity for long-term investors.

The selection of KBW as the sole book-runner, supported by Piper Sandler and Janney Montgomery Scott, is particularly strategic. These institutions' strong presence in the regional banking sector and their relationships with specialized financial services investors suggest a well-targeted marketing approach to long-term, sector-focused institutional investors.

The timing of this IPO is significant, as it represents one of the few regional bank public offerings in recent periods. The successful pricing indicates institutional investors' selective appetite for well-positioned regional banking franchises, particularly those with strong local market presence and diversified revenue streams.

The planned use of proceeds for general corporate purposes and potential preferred stock redemption indicates a dual focus on growth capital and capital structure optimization. This approach could enhance return on equity metrics while maintaining regulatory capital requirements, positioning the bank for improved profitability metrics post-IPO.

The Shares of Northpointe Common Stock Are Expected to Begin Trading on the New York Stock Exchange Under the Ticker Symbol “NPB” on February 14, 2025

GRAND RAPIDS, Mich.--(BUSINESS WIRE)-- Northpointe Bancshares, Inc. (“Northpointe”), a Michigan corporation and the bank holding company for Northpointe Bank, a wholly-owned subsidiary and a Michigan non-member bank, announced today the pricing of its initial public offering of 10,420,000 shares of its voting common stock (“common stock”) at a price to the public of $14.50 per share, including 8,620,000 shares of common stock offered by Northpointe and 1,800,000 shares of common stock offered by certain shareholders of Northpointe (the “selling shareholders”). The underwriters will have a 30-day option to purchase up to 2,574 additional shares of common stock from Northpointe and 1,560,426 additional shares of common stock from the selling shareholders, at the initial public offering price, less underwriting discounts and commissions. Northpointe will not receive any proceeds from the sale of shares by the selling shareholders.

The shares of Northpointe common stock are expected to begin trading on the New York Stock Exchange under the ticker symbol “NPB” on February 14, 2025, and the offering is expected to close on February 18, 2025, subject to customary closing conditions. Northpointe will receive net proceeds of approximately $114.4 million after deducting underwriting discounts and commissions and estimated offering expenses and intends to use the net proceeds from this offering for general corporate purposes, which may include growing its existing lines of business or using a portion to redeem all, or a portion, of its preferred stock.

Keefe, Bruyette & Woods, Inc., A Stifel Company, is acting as sole book-running manager for the proposed initial public offering, with Piper Sandler and Janney Montgomery Scott LLC acting as co-managers.

A registration statement related to these securities has been filed with the U.S. Securities and Exchange Commission and was declared effective on February 13, 2025. The offering has been made only by means of a prospectus. Copies of the final prospectus, when available, may be obtained from: Keefe, Bruyette & Woods, Inc., A Stifel Company, (800) 966-1559, or email: USCapitalMarkets@kbw.com; Piper Sandler & Co., 800-747-3924, or email: prospectus@psc.com; and Janney Montgomery Scott LLC, email: prospectus@janney.com.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Northpointe Bank

Northpointe Bank, headquartered in Grand Rapids, Michigan, is a client-focused company that provides home loans and retail banking products to communities across the nation. Our mission is to be the best bank in America by bringing value and innovation to the people we serve. To learn more about Northpointe Bank visit www.northpointe.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250213017542/en/

For investor inquiries, please contact

Brad Howes

EVP and Chief Financial Officer

brad.howes@northpointe.com

(616) 726-2585

For media inquires, please contact:

Kevin Comps

President

kevin.comps@northpointe.com

616-974-8491

Source: Northpointe Bancshares, Inc.

FAQ

What is the IPO price for Northpointe Bancshares (NPB) stock?

Northpointe Bancshares (NPB) has priced its IPO at $14.50 per share.

When will NPB stock begin trading on the NYSE?

NPB stock is expected to begin trading on the New York Stock Exchange on February 14, 2025.

How many shares is Northpointe Bancshares offering in its IPO?

The IPO includes 10,420,000 total shares, with 8,620,000 shares offered by Northpointe and 1,800,000 shares by selling shareholders.

How much money will Northpointe Bancshares raise from the IPO?

Northpointe expects to receive net proceeds of approximately $114.4 million after deducting underwriting discounts and commissions and estimated offering expenses.

What will Northpointe Bancshares use the IPO proceeds for?

The company plans to use the proceeds for general corporate purposes, including growing existing lines of business and potentially redeeming all or a portion of its preferred stock.