The IPO Buzz: Northpointe Bancshares (NPB) Prices Upsized IPO at a Discount

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 is expected to start trading today, which happens to be Valentine’s Day – Friday, Feb. 14, 2025 – on the New York Stock Exchange. 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. (For more information about these companies, please check the IPO Calendar and the individual IPO Profiles found on the IPOScoop.com  website.) Note: Never trade on proposed symbols. They have been known to change and you might buy something on the OTC Bulletin Board. To see what time the NASDAQ IPOs are expected to trade, please log in to: NASDAQTrader.com then scroll down to IPO Message. Disclosure: Nobody on the IPOScoop.com staff has a position in any stocks mentioned above, nor do they trade or invest in IPOs. The IPOScoop.com staff does not issue advice, recommendations or opinions. Disclaimer: A SCOOP Rating (Wall Street Consensus of Opening-day Premiums) is a general consensus taken, at press time, from Wall Street and investment professionals concerning how well an IPO might perform when it starts trading. The SCOOP Rating does not reflect the opinions of anyone associated with IPOScoop.com. The SCOOP ratings should not be taken as investment advice. The rating merely reflects the opinion of the professionals at the time of publication and is subject to last-minute changes due to market conditions, changes in a specific offering and other factors, such as changes in the proposed offering terms and the  shifting of investor interest in the IPO. The information offered is taken from sources we believe to be reliable, but we cannot guarantee the accuracy.