Northpointe Bancshares, Inc. · NYSE:NPB
Northpointe Bancshares — IPO Roadshow (February 2025)
31 slides from Northpointe Bancshares's IPO roadshow presentation, February 2025
Slide 1: Investor Presentation
CONFIDENTIAL Investor Presentation February 2025
Slide 2: Disclaimer
Disclaimer This investor presentation (this “Investor Presentation”) relates to the proposed initial public offering of shares of voting common stock of Northpointe Bancshares, Inc. (the “Company,” “we,” “our”, “us” or “NPB”) and should be read together with the Registration Statement on Form S-1 (F
Slide 3: Offering Summary
Offering Summary Issuer Northpointe Bancshares, Inc. Exchange / Ticker NYSE: NPB Shares Offered 8,823,532 (83% Primary 17% Secondary) Base Offering Size (1) $150 million (prior to underwriters’ option) Overallotment Option 15% (100% Secondary) Filing Range $16.00 - $18.00 Lock-Up 180 days for execut
Slide 4: Presenters Today
Presenters Today Chuck A. Williams Kevin J. Comps Bradley T. Howes Chairman and CEO President Executive Vice President and CFO Mr. Williams is the Chairman, Chief Executive Officer, and Mr. Comps is the President and Secretary of Northpointe Mr. Howes is the Executive Vice President and Chief direct
Slide 5: Key Themes
Key Themes 1 Specialized Mortgage Dedicated Bank: Differentiated business lines that serve our customers’ borrowing and payments needs 2 Focus: (a) Mortgage Purchase Program (“MPP”) (b) Retail Mortgage (c) Digital-only Deposits (d) Special Servicing 3 Experienced Management Team: Strong performance
Slide 6: History, Specialized Business Focus & Performance
History, Specialized Business Focus & Performance 1999 Founded Specialized Means Focused Business Unit Focus 25 years as a Mortgage Focused Originator & Lender • Focused on areas where we can be differentiated • Focused on areas where we can 2010 Mortgage Purchase Program Launched Warehouse Lending
Slide 7: Northpointe: a Specialized Bank
Northpointe: a Specialized Bank ▪ Northpointe Bancshares Inc. owns and operates Northpointe Bank Financials Company ▪ Northpointe Bank has a residential mortgage-focused strategy 9/30/24 YTD Overview ▪ Operates via four key national symbiotic businesses ▪ Superior returns with 27%+ average ROATCE(1)
Slide 8: Overview of Business Lines
Overview of Business Lines 1 2 3 4 Mortgage Purchasing Program Residential Lending Digital Depository Banking Mortgage Servicing ▪ National mortgage warehouse lender ▪ National retail mortgage banking ▪ Digital deliver of retail deposit ▪ Loan servicing and subservicing banking nationwide operations
Slide 9: Mortgage Purchase Program
1 Mortgage Purchase Program ▪ MPP is our proprietary warehouse lending platform which generates attractive assets and yields with very minimal credit risk ▪ Built from bottom-up to our exacting standards ▪ Client selection, technology interface, underwriting criteria and interim purchase program are
Slide 10: Mortgage Purchase Program: Our Version of Mortgage Warehouse Lending
1 Mortgage Purchase Program: Our Version of Mortgage Warehouse Lending Commentary Collateral Type Capacity ▪ Offer residential mortgage warehouse facilities to over 100 independent mortgage banking platforms nationwide ▪ We process approximately $2.2 billion in funding draws / Northpointe’s MPP Lend
Slide 11: Residential Mortgage Origination: Nationwide LPOs
2 Residential Mortgage Origination: Nationwide LPOs Commentary National LPO Office Locations National Lending Powers Due to Bank Charter ▪ LPOs can and do originate nationally ▪ Our office locations accommodate where officers wish to reside and do not limit their market reach ▪ Leading regional prod
Slide 12: Bank Charter Brings Material Advantages
Bank Charter Brings Material Advantages ▪ Seven distinct capabilities as a bank provide advantages over non-bank competitors ▪ Operating license and regulatory authorizations 1 Fund our loan origination with deposits and Federal Home Loan Bank borrowings; provides low-cost funding 2 Fund non-conform
Slide 13: Residential Mortgage: Delivery Channels and Funded Production
2 Residential Mortgage: Delivery Channels and Funded Production Commentary Funded Production by Channel ($ in billions) ▪ Serve borrowers nationwide through two main channels: Retail Consumer Direct (Digital) and Traditional Retail (LPO professionals) Correspondent ▪ Proprietary technology-led point
Slide 14: Residential Lending Growth Product: All-in-One Loan
2 Residential Lending Growth Product: All-in-One Loan Commentary ▪ One of our robustly growing products is the licensed and trade-marked All-in-One Loan (AIO) ▪ AIO combines the benefits of a revolving equity line of credit, a market rate cost of a first mortgage and sweep benefits of a deposit acco
Slide 15: Digital Deposit Platform
3 Digital Deposit Platform Commentary Q3 2024 Deposit Composition ▪ Digital Deposit Banking – a core strategy ▪ Provides competitive funding advantages: Total Deposits Time Deposits – Reliable and speedy source of significant liquidity coming directly from consumers and deposit brokers 9% 12% – Sour
Slide 16: Mortgage Servicing: Then & Now
4 Mortgage Servicing: Then & Now Commentary 2H-2024 & Go Forward ▪ Servicing rights from our loan sales sold on both a retained and release basis Servicing Rights From our Originations are Handled – Decision driven both by execution economics and Basel III capital constraints Differently Depending o
Slide 17: Operating Strategies
Operating Strategies Core Balance Strategic Sheet Strategy Pivots ▪ Mortgage Related Assets (Single Family Residential) 1) Shut-down Correspondent Lending – Very clean history of a relatively simple asset class – As sale margins were collapsing – No CRE, no volatile unsecured Consumer Credit – No di
Slide 18: Technology Matters: To Our Clients, Our Employees & Our Performance
Technology Matters: To Our Clients, Our Employees & Our Performance Commentary ▪ Substantially all applications are Cloud-based or SaaS ▪ Our technology environment is on-premises in our Bank’s active-active data centers ▪ Systems are in-place, Fully Functioning ▪ No Material Upgrades Planned ▪ Plat
Slide 19: Market Strategies: Rates & Volumes
Market Strategies: Rates & Volumes Market Outlook(1) Northpointe’s Historical Volume and Share Total Retail Single Family Mortgage Originations ($ trillions) Total Retail Single Family Mortgage Originations ($ billions) 30-Year Fixed Rate Mortgage Historical Market Share Fed Funds Rate (Upper Bound)
Slide 20: Financial Highlights
Financial Highlights 1 High Volume Periods 3 Recent Periods YTD 9/30/2023 YTD 9/30/2024 ▪ Low rates persisted for more than a decade $14.3B $18.9B 2 Low Volume Periods Total Originations + MPP Total Originations + MPP Fundings Fundings ▪ Our peak volume years: 2019 – 2021 ▪ Rapidly rising rates impa
Slide 21: Financial Summary
Financial Summary Total Asset Growth Net Interest and Fee Income ($ in millions) ($ in millions) Net Interest Income $5,386 Non-Interest Income $4,758 $419 $4,727 $401 $4,400 $3,302 $258 $191 $368 $312 $196 Annualized $2,174 $186 $158 $144 $95 $147 $59 $89 $99 $101 $84 $38 $52 2019 2020 2021 2022 20
Slide 22: Balance Sheet Strategy
Balance Sheet Strategy NPB’s Balance Sheet Strategy has proven to be an advantage by holding a relatively simple set of assets and liabilities and maintaining a clean, stable financial banking platform during periods of uncharted rate volatility. ▪ Focus on remaining as interest rate and average lif
Slide 23: Disciplined Credit Quality and Clean Demonstrated History
Disciplined Credit Quality and Clean Demonstrated History Commentary NCOs / Average Loans(1) 0.67% Strong Underwriting and Diligent Risk Controls with 0.52% 0.52% Low History of Losses 0.50% 0.25% 0.27% ▪ Total cumulative NCOs of only $1.2M since 2019 ▪ No NCOs in our 15-year history of MPP lending
Slide 24: Capital Position Supports Growth
Capital Position Supports Growth Commentary Northpointe Bancshares, Inc. Northpointe 11.36% Our Capital Strategy has been to keep a meaningful cushion above Well Capitalized(1) minimum well capitalized levels to support a stable financial 10.37% 10.00% banking platform 8.77% 7.93% 8.00% ▪ We have ra
Slide 25: Strong Growth in 2024...Growing Now...and Positioned for More Growth
Strong Growth in 2024...Growing Now...and Positioned for More Growth ▪ We are in growth mode now: 32% higher total origination volume as of YTD 2024 vs YTD 2023 ▪ We are ready for predicted volumes, including volumes if rates were to follow the future rate curve predictions ▪ NPB’s platform has hand
Slide 26: Appendix
APPENDIX
Slide 27: Appendix: Balance Sheet Composition
Appendix: Balance Sheet Composition Core Operating Strategy creates a high-quality balance sheet with ample liquidity Q3 2024 Assets: $5,385mm Q3 2024 Liabilities: $4,931mm ($ in millions) Cash Interest-bearing Deposits $441 ▪ A least 1 year of cash at the HoldCo to meet HoldCo obligations ▪ We seek
Slide 28: Appendix: BHC Capital Structure
Appendix: BHC Capital Structure Q3 2024 Capitalization: $503M(1) $5 $25 Trust Preferred ▪ As of 9/30/2024, $5M in trust preferred securities, due 3/17/2034, but callable 12/17/2024 $15 $25 Called $15M in Q4 2024 Subordinated $82 Debt ▪ $15M matures 10/1/2028 – 9.38% (fixed-to-floating), callable 10/
Slide 29: Appendix: Financial Summary
Appendix: Financial Summary ($ in Millions) FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 YTD Q3 2024 Balance Sheet Summary: Assets: Cash & Securities $ 355.8 $ 405.9 $ 543.3 $ 364.0 $ 435.4 $ 520.1 Loans HFI 1,043.4 1,390.0 1,781.8 3,030.1 3,781.2 4,412.1 Allowance for Loan Losses (4.5) (10.5) (3.9) (6.4
Slide 30: Appendix: Mortgage Servicing Portfolio
Appendix: Mortgage Servicing Portfolio Vintage Primary Servicing MSR Weighted Average FICO ($ in millions) Custodial $133 $272 $190 $172 $155 $137 Deposits: 10% 758 757 753 17% 2019 and prior 3% $101.8 2020 $95.3 613 14% 2021 $73.4 17% $68.6 2022 2023 2024 $31.5 39% $11.7 2019 2020 2021 2022 2023 Q3
Slide 31: Appendix: Non-GAAP Reconciliation
Appendix: Non-GAAP Reconciliation Tangible Common Equity ($ in Thousands) FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 Q3 2023 Q3 2024 Tangible Common Equity (Tangible Book Value): Common Shareholders Equity $127,631 $220,455 $297,465 $301,150 $314,463 $316,129 $351,209 (1) Less: Intangible Assets 9,811
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