Northpointe Bancshares approves new executive employment agreements

Northpointe Bancshares , Inc. (NYSE:NPB), a profitable regional bank with a market capitalization of approximately $497 million, announced on Thursday that its board of directors and compensation committee approved new employment agreements for four executive officers, according to a statement based on a recent SEC filing. InvestingPro analysis indicates the stock is currently trading above its Fair Value, despite maintaining a relatively modest P/E ratio of 6.9x.

The agreements, effective June 26, cover Amy M. Butler, Executive Vice President of National Sales; David J. Christel, President of the Mortgage Purchase Program business unit; Kevin J. Comps, President of the company and bank; and Brad T. Howes, Executive Vice President and Chief Financial Officer. The agreements for Mr. Christel and Mr. Comps replace previous contracts dated March 22, 2017, and October 1, 2020, respectively. According to InvestingPro data, the bank maintains a GOOD overall financial health score, with particularly strong performance in relative value metrics.

Each agreement has an initial term of three years and will automatically renew for additional one-year terms unless either party provides written notice of non-renewal at least 90 days before the end of the term.

Base salaries are set at $200,000 for Ms. Butler, $175,000 for Mr. Christel, $400,000 for Mr. Comps, and $300,000 for Mr. Howes, with annual reviews by the compensation committee. Ms. Butler is eligible for quarterly incentive compensation equal to the greater of $75,000 or 2% of the quarterly net income of the bank’s residential lending channel, provided it does not report a net loss. Mr. Christel is eligible for monthly incentive compensation equal to 4% of the Mortgage Purchase Program’s net income and an additional annual bonus of 1% if the unit’s annual net income exceeds $1 million. Mr. Comps and Mr. Howes have annual bonus targets set at 100% and 50% of their respective base salaries.

If terminated without cause or for good reason, executives are entitled to severance payments ranging from one to 1.5 times their salary and bonus, depending on the individual and circumstances. In the event of a qualifying termination within 12 months of a change in control, the severance multiple increases to two times for Mr. Christel and Mr. Comps and 1.5 times for Ms. Butler and Mr. Howes. Executives are also eligible for 18 months of COBRA health insurance premium payments.

Receipt of severance benefits is conditioned on signing a separation agreement, including a release of claims and a one-year non-competition and non-solicitation period.

This information is based on a press release statement and the company’s SEC filing.

In other recent news, Northpointe Bancshares, Inc. has announced a quarterly cash dividend of $0.025 per common share. This dividend is set to be paid on May 2, 2025, to shareholders who are on record as of April 15, 2025. The announcement reflects Northpointe Bancshares’ ongoing commitment to delivering value to its shareholders. The company, which provides home loans and retail banking products, aims to enhance its service offerings and maintain its client-centric approach. Northpointe Bancshares has also highlighted that forward-looking statements are subject to risks and uncertainties, as governed by the Private Securities Litigation Reform Act of 1995. The company has clarified that it does not commit to updating any forward-looking statements. Shareholders and investors are encouraged to consider these factors when making investment decisions.

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