Castle Creek-backed Northpointe Bancshares files for US IPO

Audio By Carbonatix

(Reuters) – Private equity-backed Northpointe Bancshares filed for an initial public offering in the United States on Thursday, setting the stage for the first notable U.S. bank flotation in New York this year.

WHY IT’S IMPORTANT

The post-election optimism around the banking sector is set to continue in 2025, fueled by hopes of an easing regulatory environment and lower corporate taxes.

Chain Bridge Bancorp, a lender popular among Republicans since its inception, went public last year. Its shares are up 12% from the IPO price, as of last close.

Northpointe’s IPO, one of the few in the banking sector in recent years, also comes at a time when the market has been dominated by energy companies so far this year.

CONTEXT

Northpointe was founded in 1999 as a mortgage portfolio lender mainly operating in the Midwestern states of Michigan, Ohio and Indiana.

The bank has expanded since then, and now offers a nationwide mortgage repurchase program and deposit banking to retail customers.

The Grand Rapids, Michigan-based bank and some of its existing shareholders will sell shares in the proposed offering.

Private equity firm Castle Creek Capital is among Northpointe’s major shareholders.

BY THE NUMBERS

The bank had $5.4 billion in assets, as of Sept. 30, and has originated more than $190 billion in home loan financing over the last 10 years.

Net income available to common stockholders was $38.3 million, or $1.49 per share, in the first nine months of 2024, compared with $24.9 million, or 96 cents per share, a year earlier.

WHAT’S NEXT

Northpointe will list on the New York Stock Exchange under the symbol “NPB”.

It plans to use the IPO proceeds for general corporate purposes, including growing existing lines of business or to redeem preferred stock.

Keefe, Bruyette & Woods is the sole underwriter for the offering.

(Reporting by Arasu Kannagi Basil in Bengaluru; Editing by Shilpi Majumdar)