Northpointe Bancshares, Inc. Reports Third Quarter 2026 Results

Mortgage Purchase Program and home equity loan balances grew, while earnings declined and estimated restructuring charges lie ahead.

See more from StockTitan in Google Search and AI answers. Adds StockTitan as a preferred source · opens Google

Add on Google Not now

Announces Strategic Decision to Sell Distributed Retail and Consumer Direct Mortgage Origination Channels

GRAND RAPIDS, Mich.--(BUSINESS WIRE)-- Northpointe Bancshares, Inc. (NYSE: NPB) (“Northpointe” or the “Company”), the holding company for Northpointe Bank (the "Bank"), today reported net income to common stockholders of $13.9 million, or $0.39 per diluted share, for the third quarter of 2026. This compares to $21.3 million, or $0.60 per diluted share, for the second quarter of 2026, and $20.1 million, or $0.57 per diluted share, for the third quarter of 2025.

Chief Executive Officer Commentary

“Our core operating performance remained strong, led by continued growth in our Mortgage Purchase Program (MPP) business and the successful execution of an opportunistic balance sheet acquisition strategy during the quarter,” said Chuck Williams, Chairman and Chief Executive Officer. “Our third quarter financial results were negatively impacted by fair value declines driven by higher long-term interest rates and expenses associated with an isolated deposit fraud within our retail banking center, which we promptly addressed through strengthened procedures and additional controls.”

The Company also announced today it plans to sell the distributed retail and consumer direct mortgage origination channels to CMG Financial and its affiliates (“CMG”). The Company and CMG have entered into a non-binding letter of intent regarding the proposed transaction. Subject to the satisfactory completion of due diligence, execution of a definitive agreement and customary closing conditions, the Company anticipates the proposed transaction should close by the end of 2026.

“Given today’s economic and operating environment, and the continued evolution of the mortgage distribution channels, we are refocusing our strategic priorities where we have the strongest competitive advantages,” Williams continued. “This allows us to deepen client relationships, generate attractive portfolio assets, and grow relationship-based deposits, which we expect will improve operating leverage, capital efficiency and create a more robust, stable and scalable earnings profile.”

The Company currently estimates restructuring charges of between $6 million and $7 million, with the majority realized during the fourth quarter of 2026. Loans currently in process will continue to be closed, and the Company will provide support to the affected team members. Further details on the timing and anticipated restructuring charges, expense savings, and potential transaction will be provided on the Company’s earnings call on October 21, 2026.

“We believe CMG would be a strong home for our origination team and a constructive path for our customers, referral partners and team members,” Williams concluded. “We remain highly committed to the mortgage banking industry, and believe allocating capital and resources to our businesses with the strongest client relationships and balance sheet opportunities provide us the best path forward for long-term growth and shareholder returns.”

Third Quarter 2026 Highlights

• Current quarter results included two notable items:
  • $9.3 million combined decrease in fair value of loans held for investment (“HFI”) and lender risk account (“LRA”), partially offset by a $5.0 million increase in fair value of mortgage servicing rights (“MSRs”), collectively driven by an increase in market interest rates.
  • $3.1 million in operational losses within non-interest expense resulting from an isolated external deposit fraud incident within the retail banking center. The Company has notified its insurance carriers and plans to pursue all potential recoveries.
• Financial performance and profitability metrics:
  • Return on average equity of 9.10%, compared to 14.36% in the prior quarter.
  • Return on average tangible common equity of 9.19%, compared to 14.69% in the prior quarter (see non-GAAP reconciliation).
  • Return on average assets of 0.75%, compared to 1.18% in the prior quarter.
  • Efficiency ratio of 64.47%, compared to 54.76% in the prior quarter.
• Continued growth in the balance sheet, including:
  • Mortgage Purchase Program (“MPP”) balances increased by $262.7 million, or 27% annualized, from the prior quarter. This is net of $368.3 million in balances participated to other institutions at period end, which compares to $489.0 million in the prior quarter.
  • First-lien home equity lines which are tied seamlessly to a demand deposit sweep account (the Company commonly refers to these loans as “All-in-One” or “AIO” loans) balances increased by $100.4 million, or 50% annualized (including purchase noted below).
  • Purchased $85.4 million in seasoned AIO loans on September 30, 2026 ($69.9 million net of purchase discount).
  • Total deposits increased by $210.4 million, or 16% annualized, driven primarily by higher demand deposits and brokered CDs, partially offset by lower time and savings & money market deposits.
• Asset quality remained stable:
  • Non-performing assets increased by $8.9 million from the prior quarter but loans past due 31-89 days decreased by $5.7 million.
  • Net charge-offs remained historically low at $429,000, or 0.02% of average loans (annualized).
• Reduced current period income tax expense by $608,000 through acquisition of renewable energy investment tax credits.
• Wholesale funding ratio increased to 63.94%, compared to 63.09% in the prior quarter.
• The Company’s Board of Directors increased its regular quarterly cash dividend to $0.03 per share, from $0.025 per share, payable on November 4, 2026, to stockholders of record as of October 15, 2026.

Net Interest Income

Net interest income before provision was $43.7 million for the third quarter of 2026, an increase of $1.2 million compared to the second quarter of 2026. The linked quarter increase reflects a $157.0 million increase in average interest-earning assets partially offset by a 1 basis point decrease in net interest margin. As compared to the third quarter of 2025, net interest income before provision increased by $3.3 million, which was driven primarily by a $987.3 million increase in average interest-earning assets partially offset by a 15 basis point decrease in net interest margin.

Net interest margin was 2.32% for the third quarter of 2026, a decrease of 1 basis point compared to 2.33% in the second quarter of 2026 and a decrease of 15 basis points compared to 2.47% in the third quarter of 2025. The linked quarter decrease was driven primarily by a higher average cost of deposits, partially offset by higher average yields on loans and an improvement in the funding mix. The decrease compared to the prior year quarter was driven primarily by lower average yields on interest-earning assets, which outpaced the decrease in average rates paid on interest-bearing liabilities.

Average interest-earning assets at September 30, 2026 increased by $157.0 million from June 30, 2026 and by $987.3 million compared to September 30, 2025. The increases from both comparable periods reflect the strong growth in MPP and AIO loan balances, which are the portfolios the Company is focused on strategically growing, partially offset by continued run-off in the remainder of the loan portfolio.

Provision (Benefit) for Credit Losses

The Company recorded total provision for credit losses (including both loans and unfunded commitments) of $845,000 in the third quarter of 2026, compared to provision of $210,000 in the second quarter of 2026 and provision of $828,000 in the third quarter of 2025. The Company’s quarterly provision (benefit) for credit losses reflects net loan charge-offs, along with factors such as loan growth, portfolio mix, reserves on individually evaluated loans, credit migration trends, and changes in the economic forecasts used in the credit models.

The Company’s allowance for credit losses was $10.0 million at September 30, 2026, $9.4 million at June 30, 2026 and $12.3 million at September 30, 2025. The allowance for credit losses represented 0.15% of loans HFI at both September 30, 2026 and June 30, 2026, and 0.21% of loans HFI at September 30, 2025. The majority of the growth in the loans HFI portfolio has come from MPP and AIO balances, with continued run-off in residential mortgage, construction, and other consumer / home equity loans, which carry higher average loss rates. In total, at September 30, 2026, residential mortgage, construction, and other consumer / home equity loans have decreased by $49.6 million from June 30, 2026 and by $215.2 million from September 30, 2025.

Total provision for credit losses in the third quarter of 2026 reflected net charge-offs of $429,000, and an increase of $524,000 in allowance for credit losses, which was primarily attributable to higher forecasted loss rates resulting from an update to Moody’s credit models, partially offset by lower allowance from an improvement in qualitative factors. Total provision for credit losses in the prior quarter reflected net charge-offs of $528,000, and a decrease of $264,000 in allowance for credit losses, which was primarily attributable to lower levels of non-performing loans and continued change in the loan mix, partially offset by slightly higher loss rates from the economic forecasts used in the credit models. Total provision for credit losses in the prior year quarter reflected net charge-offs of $977,000 and a decrease of $125,000 in allowance for credit losses.

Non-interest Income

Non-interest income was $12.3 million for the third quarter of 2026, a decrease of $9.6 million compared to the second quarter of 2026 and a decrease of $11.8 million compared to the third quarter of 2025.

MPP fees, which are driven by total loans funded and participation balances, were $2.2 million for the third quarter of 2026, a decrease of $118,000 compared to the second quarter of 2026 and an increase of $731,000 compared to the third quarter of 2025. The decrease compared to the prior quarter reflects lower participation volume, and the increase compared to the prior year quarter was driven primarily by higher levels of funded loans.

Loan servicing fees were $7.6 million for the third quarter of 2026, an increase of $5.3 million compared to the second quarter of 2026 and an increase of $6.5 million compared to the third quarter of 2025. The changes from both comparable periods reflect changes in the fair value of MSRs primarily attributable to the movement in market interest rates during the respective periods.

Net gain on sale of loans was $2.2 million for the third quarter of 2026, compared to $17.0 million for the second quarter of 2026 and $21.0 million for the third quarter of 2025. Net gain on sale of loans includes the capitalization of new MSRs, changes in fair value of loans, and gains on the sale of loans.

The net gain on sale of loans for the third quarter of 2026 included a decrease of $9.3 million from the combined change in fair value of loans HFI and LRA, which are both attributable to changes in market interest rates. Excluding these items (see Net Gain on Sale of Loans table below for a reconciliation), net gain on sale of loans was $11.5 million, a decrease of $4.9 million on a comparative basis from the second quarter of 2026 and a decrease of $6.0 million on a comparative basis from the third quarter of 2025. The decreases from both comparable periods reflect lower levels of residential mortgage interest rate lock commitments.

Non-interest Expense

Non-interest expense was $36.1 million for the third quarter of 2026, an increase of $0.8 million compared to the second quarter of 2026 and an increase of $1.7 million compared to the third quarter of 2025.

Salaries and benefits expense decreased by $3.1 million on a linked quarter basis and decreased by $2.4 million compared to the third quarter of 2025. The linked quarter decrease was driven primarily by lower variable compensation on mortgage production, along with lower bonus and incentive compensation. The decrease compared to the prior year quarter was driven primarily by lower bonus and incentive compensation, lower base salaries and lower variable compensation on mortgage production.

Other non-interest expense increased by $3.8 million on a linked quarter basis and increased by $4.0 million compared to the third quarter of 2025. The increases from both comparable periods reflect the $3.1 million related to the isolated deposit fraud noted above.

Taxes

Income tax expense for the third quarter of 2026 was $4.6 million, compared to $7.1 million for the second quarter of 2026 and $7.0 million for the third quarter of 2025. The Company’s effective tax rate was 24.43% for the third quarter of 2026 compared to 24.72% for the second quarter of 2026 and 24.00% for the third quarter of 2025. The effective tax rate in the third quarter of 2026 includes a $608,000 benefit from the acquisition of renewable energy investment tax credits made during the quarter, partially offset by a higher state tax rate. The Company plans to acquire additional renewable energy tax credits during the fourth quarter of 2026 to help reduce its overall effective tax rate for the year.

Balance Sheet Highlights

Total assets were $7.67 billion at September 30, 2026, representing an increase of $136.7 million compared to June 30, 2026 and an increase of $827.0 million compared to September 30, 2025. The increases for both comparable periods were driven primarily by growth in loans.

Gross loans held for investment were $6.79 billion at September 30, 2026, an increase of $313.5 million, or 19% annualized, compared to June 30, 2026 and an increase of $826.5 million, or 14%, compared to September 30, 2025. The increases from both comparable periods were driven primarily by growth in MPP balances and AIO loans, which were partially offset by decreases in the remainder of the loans HFI portfolio. Outside of the MPP and AIO portfolios, no other significant loans are being added to the loans HFI portfolio. At September 30, 2026, virtually all the loan portfolio was comprised of loans collateralized by residential property.

Loans held for sale totaled $173.0 million at September 30, 2026, compared to $312.0 million at June 30, 2026 and $259.8 million at September 30, 2025, and reflect the timing and level of saleable residential mortgage originations during each respective period.

Total deposits were $5.44 billion at September 30, 2026, an increase of $210.4 million, or 16% annualized, compared to June 30, 2026 and an increase of $674.1 million, or 14%, compared to September 30, 2025. The linked quarter increase was driven primarily by higher levels of interest-bearing demand, non-interest bearing demand and brokered deposits, partially offset by lower CDs and savings and money market deposits. As compared to September 30, 2025, the increase was driven primarily by higher levels of interest bearing demand and savings deposits, attributable to the growth in the Company’s diversified digital deposit banking platform and new deposit relationships.

Total borrowings were $1.43 billion at September 30, 2026, a decrease of $85.0 million compared to June 30, 2026 and an increase of $58.5 million compared to September 30, 2025. The changes from both comparable periods were driven primarily by fluctuations in the use of short-term lines of credit to meet liquidity needs.

Subordinated debentures were $112.0 million at both September 30, 2026 and June 30, 2026, and $24.2 million at September 30, 2025. The increase from September 30, 2025 reflects a private placement of $20.0 million in aggregate principal amount of fixed-to-floating rate subordinated notes issued during the first quarter of 2026 and $70.0 million in aggregate principal amount of new 7.50% fixed-to-floating rate subordinated notes issued during the fourth quarter of 2025.

Asset Quality

Net charge-offs were $429,000, or 2 basis points annualized as a percentage of average loans, for the third quarter of 2026. This compares to $528,000, or 3 basis points annualized as a percentage of average loans, for the second quarter of 2026, and $977,000, or 7 basis points annualized as a percentage of average loans, for the third quarter of 2025.

A substantial portion of the Company’s non-performing loans are wholly or partially guaranteed by the U.S. Government, so asset quality metrics within this earnings release are shown with and without these guaranteed loans. Non-performing assets were $95.5 million at September 30, 2026 ($68.5 million excluding guaranteed loans), $86.7 million at June 30, 2026 ($60.0 million excluding guaranteed loans) and $85.2 million at September 30, 2025 ($57.7 million excluding guaranteed loans). Non-performing assets represented 1.25% of total assets at September 30, 2026 (0.89% excluding guaranteed loans), 1.15% at June 30, 2026 (0.80% excluding guaranteed loans) and 1.25% at September 30, 2025 (0.85% excluding guaranteed loans).

Capital

At September 30, 2026, the estimated capital levels for the Company and the Bank remained well in excess of the minimum amounts needed for capital adequacy purposes, and the Bank’s capital levels met the necessary requirements to be considered “well-capitalized”. The regulatory capital ratios as of September 30, 2026 are estimates, pending completion and filing of the Bank’s regulatory reports.

Earnings Presentation and Conference Call

Northpointe will host its third quarter of 2026 earnings conference call on October 21, 2026 at 10:00 a.m. E.T. During the call, management will discuss the third quarter of 2026 financial results and provide an update on recent activities. There will be a live question-and-answer session following the presentation. It is recommended you join 10 minutes prior to the start time. Participants may access the live conference call by dialing 1-877-413-2414 and requesting “Northpointe Bancshares, Inc. Conference Call”. The conference call will also be webcast live at ir.northpointe.com. An audio archive will be available on the website following the call.

Forward Looking Statements

Statements in this earnings release regarding future events and our expectations and beliefs about our future financial performance and financial condition, as well as trends in our business and markets, constitute “forward-looking statements” within the meaning of, and subject to the protections of, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are made for purposes of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not historical in nature and may be identified by references to a future period or periods by the use of the words “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” “project,” “outlook,” or words of similar meaning, or future or conditional verbs such as “will,” “would,” “should,” “could,” or “may.” The forward-looking statements in this earnings release should not be relied on because they are based on current information and on assumptions that we make about future events and circumstances that are subject to a number of known and unknown risks and uncertainties that are often difficult to predict and beyond our control. As a result of those risks and uncertainties, and other factors, our actual financial results in the future could differ, possibly materially, from those expressed in or implied by the forward-looking statements contained in this earnings release and could cause us to amend our future plans. Factors that might cause such differences include, but are not limited to: the impact of current and future economic conditions, particularly those affecting the financial services industry, including the effects of declines in the real estate market, tariffs or trade wars (including reduced consumer spending, lower economic growth or recession, reduced demand for U.S. exports, disruptions to supply chains, and decreased demand for other banking products and services), high unemployment rates, inflationary pressures, increasing insurance costs, volatile interest rates, including the impact of changes in interest rates on our financial projections, models and guidance and slowdowns in economic growth, as well as the financial stress on borrowers as a result of the foregoing; uncertain duration and outcome of trade conflicts; potential impacts of adverse developments in the banking and mortgage industries, including impacts on deposits, liquidity and the regulatory rules and regulations; risks arising from media coverage of the banking and mortgage industries; risks arising from perceived instability in the banking and mortgage sectors; changes in the interest rate environment, including changes to the federal funds rate, which could have an adverse effect on the Company’s profitability; changes in prices, values and sales volumes of residential real estate; developments in our mortgage banking business, including loan modifications, general demand, and the effects of judicial or regulatory requirements or guidance; the Company’s ability to successfully execute the exit or sale of its distributed retail and consumer direct mortgage origination channels, including the risks that the Company and CMG may not successfully complete due diligence, negotiate or execute definitive agreements, obtain required corporate or regulatory approvals, satisfy applicable closing conditions, or otherwise consummate the proposed sale on the anticipated terms, timeline, or at all; that the proposed sale may be modified, delayed, or terminated; that, if the proposed sale is not completed, the Company may pursue a wind-down or other strategic alternative for the distributed retail and consumer direct mortgage origination channels, which could result in additional costs, delays, operational disruptions, or other adverse consequences; that restructuring charges may exceed, or expected expense savings may be less than or realized later than, current expectations, and the effects of the exit on employees, customers, revenue and the Company’s reputation; the Company’s ability to achieve the anticipated benefits of its re-focused strategic priorities, including growth in its Mortgage Purchase Program, relationship-based deposits and opportunistic balance sheet acquisitions; competition in our markets that may result in increased funding costs or reduced earning assets yields, thus reducing margins and net interest income; legislation or regulatory changes which could adversely affect the ability of the consolidated Company to conduct business combinations or new operations; changes in tax laws; significant turbulence or a disruption in the capital or financial markets and the effect of a fall in stock market prices on our investment securities; significant volatility in the markets for equity, fixed income and other asset classes globally or within specific markets; the ability to keep pace with technological changes, including changes regarding maintaining cybersecurity and managing the risks, regulatory uncertainty and operational impacts associated with generative artificial intelligence; increased competition in the financial services industry, particularly from regional and national institutions as well as fintech companies and other non-bank financial service providers offering digital, automated or alternative financial products and services; the impact of a failure in, or breach of, the Company’s operational or security systems or infrastructure, or those of third parties with whom the Company does business, including as a result of cyber-attacks or an increase in the incidence or severity of fraud, illegal payments, security breaches or other illegal acts impacting the Company or the Company’s customers; the effects of war or other conflicts, including the ongoing conflicts in the Middle East; major political shifts domestically or internationally (including federal budget disputes, debt ceiling negotiations, government shutdowns or other disruptions affecting government operations); and adverse results from current or future litigation, regulatory examinations or other legal and/or regulatory actions, including as a result of the Company’s participation in and execution of government programs, and legislative, regulatory or supervisory actions related to so‑called “de‑banking,” including any new prohibitions, requirements or enforcement priorities that could affect customer relationships, compliance obligations, or operational practices.

Therefore, the Company can give no assurance that the results contemplated in the forward-looking statements will be realized. Additional information regarding these and other risks and uncertainties to which our business and future financial performance are subject is contained in the sections titled “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors” in the Company’s most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q on file with the U.S. Securities and Exchange Commission (the “SEC”), and in other documents that we file with the SEC from time to time, which are available on the SEC’s website, http://www.sec.gov. Due to these and other possible uncertainties and risks, readers are cautioned not to place undue reliance on the forward-looking statements contained in this earnings release or to make predictions based solely on historical financial performance. Any forward-looking statement speaks only as of the date on which it is made, and we do not undertake any obligation to update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law. All forward-looking statements, express or implied, included in this earnings release are qualified in their entirety by this cautionary statement.

About Northpointe

Headquartered in Grand Rapids, Michigan, Northpointe Bancshares, Inc. is the holding company of Northpointe Bank, 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 visit www.northpointe.com.

NORTHPOINTE BANCSHARES, INC.
(unaudited, dollars in thousands except per share data)
Consolidated Statements of Income
		Three Months Ended												Nine Months Ended
		Sept 30, 2026				June 30, 2026				Sept 30, 2025				Sept 30, 2026				Sept 30, 2025
Interest income
Loans - including fees		$	104,078			$	100,126			$	94,044			$	299,118			$	252,376
Investment securities - taxable			82				61				87				199				399
Federal Home Loan Bank ("FHLB") stock - taxable			1,779				1,780				1,605				5,305				4,786
Interest bearing deposits			4,826				5,071				6,100				14,685				16,518
Total interest income			110,765				107,038				101,836				319,307				274,079
Interest expense
Deposits			50,415				47,715				48,169				142,585				128,061
Subordinated debentures			2,420				2,519				679				7,041				2,244
Borrowings			14,275				14,382				12,657				42,330				36,534
Total interest expense			67,110				64,616				61,505				191,956				166,839
Net interest income			43,655				42,422				40,331				127,351				107,240
Provision (benefit) for credit losses			920				264				852				715				2,785
Provision (benefit) for unfunded commitments			(75	)			(54	)			(24	)			(105	)			(79	)
Net interest income after provision (benefit) for credit losses and unfunded commitments			42,810				42,212				39,503				126,741				104,534
Non-Interest Income
Service charges on deposits and fees			343				315				217				922				635
Loan servicing fees			7,589				2,268				1,117				13,405				3,637
MPP fees			2,188				2,306				1,457				6,465				3,952
Net gain on sale of loans			2,188				17,046				20,953				35,780				58,892
Other non-interest income (loss)			(46	)			(41	)			285				(271	)			2,224
Total Non-Interest Income			12,262				21,894				24,029				56,301				69,340
Non-Interest Expense
Salaries and benefits			21,909				25,026				24,336				71,288				67,012
Occupancy and equipment			726				744				811				2,291				2,701
Data processing expense			2,604				2,521				2,190				7,473				6,451
Professional fees			1,492				1,362				1,701				4,172				4,722
Other taxes and insurance			1,955				1,987				1,998				6,179				4,974
Other non-interest expense			7,365				3,579				3,322				14,302				9,590
Total Non-Interest Expense			36,051				35,219				34,358				105,705				95,450
Income before income taxes			19,021				28,887				29,174				77,337				78,424
Income tax expense			4,646				7,141				7,001				19,061				18,658
Net Income		$	14,375			$	21,746			$	22,173			$	58,276			$	59,766
Preferred stock dividends			453				453				2,041				1,359				6,544
Net Income Available To Common Stockholders		$	13,922			$	21,293			$	20,132			$	56,917			$	53,222
Basic Earnings Per Share		$	0.40			$	0.61			$	0.58			$	1.64			$	1.61
Diluted Earnings Per Share		$	0.39			$	0.60			$	0.57			$	1.61			$	1.58
Weighted Average Shares Outstanding			34,740,412				34,740,412				34,602,289				34,727,830				33,006,655
Diluted Weighted Average Shares Outstanding			35,425,447				35,416,828				35,337,136				35,368,297				33,668,316

NORTHPOINTE BANCSHARES, INC.
(unaudited, dollars in thousands except per share data)
Consolidated Balance Sheets
		Sept 30, 2026				June 30, 2026				Sept 30, 2025
Assets
Cash and cash equivalents		$	489,901			$	538,359			$	419,162
Equity securities			1,283				1,333				1,342
Debt securities available for sale			4,858				4,880				4,752
FHLB stock			77,207				76,099				80,109
Loans held for sale ("HFS"), at fair value			173,047				311,991				259,835
Loans held for investment ("HFI") (1)			6,793,691				6,480,158				5,967,235
Allowance for credit losses			(9,960	)			(9,436	)			(12,250	)
Net loans			6,783,731				6,470,722				5,954,985
Mortgage servicing rights			31,040				23,088				16,763
Intangible assets, net			1,074				1,220				1,660
Premises and equipment			26,694				26,970				27,658
Lender risk account			27,350				29,343				30,115
Other assets			50,427				45,946				43,199
Total Assets		$	7,666,612			$	7,529,951			$	6,839,580
Liabilities
Non-interest-bearing		$	294,330			$	276,532			$	235,733
Interest-bearing			5,149,429				4,956,783				4,533,904
Total Deposits			5,443,759				5,233,315				4,769,637
Borrowings			1,427,500				1,512,500				1,369,034
Subordinated debentures			112,038				111,955				24,203
Subordinated debentures issued through trusts			5,000				5,000				5,000
Deferred tax liability			5,795				4,637				2,651
Other liabilities			47,831				50,896				45,530
Total Liabilities			7,041,923				6,918,303				6,216,055
Stockholders' Equity
Preferred stock, common stock and additional paid in capital			206,104				206,104				276,885
Retained earnings			418,692				405,634				346,829
Accumulated other comprehensive loss			(107	)			(90	)			(189	)
Total Stockholders' Equity			624,689				611,648				623,525
Total Liabilities and Stockholders' Equity		$	7,666,612			$	7,529,951			$	6,839,580
(1) Includes $151.5 million, $165.6 million and $179.4 million of loans carried at fair value at September 30, 2026, June 30, 2026 and September 30, 2025, respectively.

NORTHPOINTE BANCSHARES, INC.
(unaudited, dollars in thousands except per share data)
Selected Financial Highlights
		Three Months Ended												Nine Months Ended
		Sept 30, 2026				June 30, 2026				Sept 30, 2025				Sept 30, 2026				Sept 30, 2025
PER COMMON SHARE
Diluted earnings per share		$	0.39			$	0.60			$	0.57			$	1.61			$	1.58
Book value		$	18.06			$	17.69			$	18.14			$	18.06			$	18.14
Tangible book value (1)		$	17.32			$	16.94			$	15.23			$	17.32			$	15.23
PERFORMANCE RATIOS
Return on average assets (annualized)			0.75	%			1.18	%			1.34	%			1.06	%			1.33	%
Return on average equity (annualized)			9.10	%			14.36	%			14.23	%			12.84	%			13.70	%
Return on average tangible common equity (annualized) (1)			9.19	%			14.69	%			15.41	%			13.10	%			14.77	%
Net interest margin			2.32	%			2.33	%			2.47	%			2.36	%			2.43	%
Efficiency ratio (2)			64.47	%			54.76	%			53.38	%			57.56	%			54.05	%
ASSET QUALITY AND RATIOS
Allowance for credit losses to loans HFI			0.15	%			0.15	%			0.21	%			0.15	%			0.21	%
Allowance for credit losses to loans HFI (excluding fair value loans)			0.15	%			0.15	%			0.21	%			0.15	%			0.21	%
Allowance for credit losses to non-accrual loans			12.01	%			11.80	%			15.82	%			12.01	%			15.82	%
Allowance for credit losses to non-accrual loans (excluding guaranteed) (3)			17.24	%			17.19	%			24.08	%			17.24	%			24.08	%
Net charge-offs		$	429			$	528			$	977			$	1,224			$	1,728
Annualized net charge-offs to average loans			0.02	%			0.03	%			0.07	%			0.02	%			0.03	%
Non-performing assets to total assets			1.25	%			1.15	%			1.25	%			1.25	%			1.25	%
Non-performing assets to total assets (excluding guaranteed) (3)			0.89	%			0.80	%			0.85	%			0.89	%			0.85	%
Non-performing loans to total gross loans			1.33	%			1.23	%			1.35	%			1.33	%			1.35	%
Non-performing loans to total gross loans (excluding guaranteed) (3)			0.94	%			0.84	%			0.91	%			0.94	%			0.91	%
SELECTED OTHER INFORMATION
Equity / assets			8.15	%			8.12	%			9.12	%			8.15	%			9.12	%
Tangible common equity / tangible assets (1)			7.81	%			7.78	%			7.66	%			7.81	%			7.66	%
Loans / deposits (4)			124.80	%			123.83	%			125.11	%			124.80	%			125.11	%
Liquidity ratio (5)			6.39	%			7.15	%			6.13	%			6.39	%			6.13	%
Wholesale funding ratio (6)			63.94	%			63.09	%			67.58	%			63.94	%			67.58	%
SELECTED MORTGAGE DATA
Residential mortgage originations		$	493,316			$	670,607			$	636,600			$	1,857,597			$	1,787,620
Residential mortgage interest rate lock commitments		$	570,386			$	719,118			$	823,261			$	2,191,185			$	2,306,015
Residential mortgage applications		$	830,475			$	1,006,895			$	1,113,569			$	2,910,998			$	3,283,606
MPP total loans funded		$	12,363,967			$	12,806,011			$	9,822,322			$	36,333,080			$	25,576,189
MPP balances participated (period end)		$	368,277			$	489,009			$	37,450			$	368,277			$	37,450
Total loans serviced for others (UPB) (7)		$	6,020,162			$	5,498,627			$	4,542,688			$	6,020,162			$	4,542,688
Loans serviced for others (UPB)		$	2,181,911			$	2,031,256			$	1,754,235			$	2,181,911			$	1,754,235
Loans sub-serviced for others (UPB)		$	3,838,251			$	3,467,371			$	2,788,453			$	3,838,251			$	2,788,453

(1)	See non-GAAP reconciliation.
(2)	Efficiency ratio is defined as non-interest expense divided by the sum of net interest income and non-interest income.
(3)	Ratio excludes non-performing loans wholly or partially insured by the U.S. Government (see non-performing asset table within for more detail).
(4)	Loan / deposits ratio reflects loans HFI as a percentage of total deposits.
(5)	Liquidity ratio defined as cash and cash equivalents divided by total assets.
(6)	Wholesale funding ratio defined as brokered CDs plus borrowings divided by total deposits plus borrowings.
(7)	Excludes UPB of loans HFI and loans HFS

Summary Average Balance Sheet
(Dollars in thousands)
		Three Months Ended											Three Months Ended											Three Months Ended
		September 30, 2026											June 30, 2026											September 30, 2025
		Average Principal Balance				Income/ Expense				Yield/ Rate			Average Principal Balance				Income/ Expense				Yield/ Rate			Average Principal Balance				Income/ Expense				Yield/ Rate
Assets
Loans (1)(2)		$	6,856,369			$	104,078			6.02	%		$	6,664,882			$	100,126			6.03	%		$	5,835,496			$	94,044			6.39	%
Securities, AFS (3)			6,213				82			5.24	%			6,120				61			4.00	%			7,116				87			4.85	%
Securities, FHLB Stock			76,496				1,779			9.23	%			76,461				1,780			9.34	%			78,621				1,605			8.10	%
Interest bearing deposits			519,110				4,826			3.69	%			553,686				5,071			3.67	%			549,657				6,100			4.40	%
Total Interest Earning Assets			7,458,188				110,765			5.89	%			7,301,149				107,038			5.88	%			6,470,890				101,836			6.24	%
Noninterest Earning Assets (4)			119,701											115,708											103,976
Total Assets		$	7,577,889										$	7,416,857										$	6,574,866
Liabilities
Deposits:
Transaction accounts		$	1,429,225			$	14,430			4.01	%		$	1,254,772			$	12,446			3.98	%		$	1,009,709			$	11,246			4.42	%
Savings & money market			426,465				3,610			3.36	%			491,371				4,187			3.42	%			325,660				3,143			3.83	%
Time			3,163,595				32,375			4.06	%			3,136,971				31,082			3.97	%			3,063,371				33,780			4.37	%
Total interest-bearing deposits			5,019,285				50,415			3.98	%			4,883,114				47,715			3.92	%			4,398,740				48,169			4.34	%
Sub Debt			111,984				2,420			8.57	%			116,905				2,519			8.64	%			29,189				679			9.23	%
Borrowings			1,434,141				14,275			3.95	%			1,455,723				14,382			3.96	%			1,245,949				12,657			4.03	%
Total interest-bearing liabilities			6,565,410				67,110			4.06	%			6,455,742				64,616			4.01	%			5,673,878				61,505			4.30	%
Noninterest-bearing deposits			319,378											301,940											234,252
Other noninterest-bearing liabilities			66,446											51,939											48,425
Total noninterest-bearing liabilities			385,824											353,879											282,677
Equity			626,655											607,236											618,311
Total Liabilities and Equity		$	7,577,889										$	7,416,857										$	6,574,866
Net Interest Income						$	43,655										$	42,422										$	40,331
Net Interest Spread (5)										1.84	%										1.87	%										1.94	%
Net Interest Margin (6)										2.32	%										2.33	%										2.47	%

(1)	Loan balance includes loans HFI and loans HFS. Nonaccrual loans are included in total loan balances and no adjustment has been made for these loans in the yield calculation. Interest income on loans includes amortization of deferred loan fees, net of deferred loan costs.
(2)	Loan fees of $50,000, $51,000, and $45,000 for the quarters ended September 30, 2026, June 30, 2026 and September 30, 2025, respectively, are included in interest income.
(3)	Average yield based on carrying value and there are no tax-exempt securities in the portfolio.
(4)	Noninterest-earning assets includes the allowance for credit losses.
(5)	Net interest spread is the average yield on total interest-earning assets minus the average rate on total interest-bearing liabilities.
(6)	Net interest margin is annualized net interest income divided by total average interest-earning assets.

Summary Average Balance Sheet
(Dollars in thousands)
					Nine Months Ended											Nine Months Ended
					September 30, 2026											September 30, 2025
					Average Principal Balance				Income/ Expense				Yield/ Rate			Average Principal Balance				Income/ Expense				Yield/ Rate
Assets
Loans (1)(2)					$	6,608,266			$	299,118			6.05	%		$	5,327,769			$	252,376			6.33	%
Securities, AFS (3)						6,177				199			4.31	%			8,970				399			5.95	%
Securities, FHLB Stock						77,676				5,305			9.13	%			72,623				4,786			8.81	%
Interest bearing deposits						533,553				14,685			3.68	%			500,241				16,518			4.41	%
Total Interest Earning Assets						7,225,672				319,307			5.91	%			5,909,603				274,079			6.20	%
Noninterest Earning Assets (4)						115,250											105,949
Total Assets					$	7,340,922										$	6,015,552
Liabilities
Deposits:
Transaction accounts					$	1,269,568			$	37,788			3.98	%		$	839,210			$	27,630			4.40	%
Savings & money market						483,737				12,411			3.43	%			329,685				9,506			3.86	%
Time						3,080,742				92,386			4.01	%			2,743,269				90,925			4.43	%
Total interest-bearing deposits						4,834,047				142,585			3.94	%			3,912,164				128,061			4.38	%
Sub Debt						106,875				7,041			8.81	%			29,166				2,244			10.29	%
Borrowings						1,430,508				42,330			3.96	%			1,235,247				36,534			3.95	%
Total interest-bearing liabilities						6,371,430				191,956			4.03	%			5,176,577				166,839			4.31	%
Noninterest-bearing deposits						304,684											214,521
Other noninterest-bearing liabilities						57,884											41,027
Total noninterest-bearing liabilities						362,568											255,548
Equity						606,924											583,427
Total Liabilities and Equity					$	7,340,922										$	6,015,552
Net Interest Income									$	127,351										$	107,240
Net Interest Spread (5)													1.88	%										1.89	%
Net Interest Margin (6)													2.36	%										2.43	%

(1)	Loan balance includes loans HFI and loans HFS. Nonaccrual loans are included in total loan balances and no adjustment has been made for these loans in the yield calculation. Interest income on loans includes amortization of deferred loan fees, net of deferred loan costs.
(2)	Loan fees of $152,000 and $114,000 for the nine months ended September 30, 2026 and 2025, respectively, are included in interest income.
(3)	Average yield based on carrying value and there are no tax-exempt securities in the portfolio.
(4)	Noninterest-earning assets includes the allowance for credit losses.
(5)	Net interest spread is the average yield on total interest-earning assets minus the average rate on total interest-bearing liabilities.
(6)	Net interest margin is annualized net interest income divided by total average interest-earning assets.

End of Period Loan Balances
(Dollars in thousands)		Sept 30, 2026				June 30, 2026				Sept 30, 2025
Residential:
Construction		$	6,445			$	8,271			$	18,973
All-in-One (AIO)			897,609				797,232				701,580
Other Consumer/Home Equity			45,635				48,127				56,592
Residential Mortgage (1)			1,622,937				1,668,169				1,814,623
Commercial			20,418				20,438				10,581
MPP			4,200,647				3,937,921				3,364,886
Total Loans HFI			6,793,691				6,480,158				5,967,235
Total Loans HFS			173,047				311,991				259,835
Total Gross Loans (HFI and HFS)		$	6,966,738			$	6,792,149			$	6,227,070
(1) Residential mortgage loans consist of closed end first liens, closed end second liens, and land development loans.

End of Period Deposit Balances
(Dollars in thousands)		Sept 30, 2026				June 30, 2026				Sept 30, 2025
Noninterest-bearing demand		$	294,330			$	276,532			$	235,733
Interest-bearing demand			1,518,425				1,359,670				1,056,372
Savings & money market			372,406				458,947				321,077
Brokered time deposits			2,966,267				2,743,529				2,779,203
Other time deposits			292,331				394,637				377,252
Total deposits		$	5,443,759			$	5,233,315			$	4,769,637

Loan Servicing Fees		Three Months Ended												Nine Months Ended
(Dollars in thousands)		Sept 30, 2026				June 30, 2026				Sept 30, 2025				Sept 30, 2026				Sept 30, 2025
Fees on servicing		$	2,577			$	2,388			$	2,027			$	7,191			$	5,556
Change in fair value of MSRs (1)			5,012				(120	)			(910	)			6,214				(1,919	)
Total loan servicing fees		$	7,589			$	2,268			$	1,117			$	13,405			$	3,637
(1) Includes change in fair value and paid in full MSRs.

Net Gain on Sale of Loans		Three Months Ended												Nine Months Ended
(Dollars in thousands)		Sept 30, 2026				June 30, 2026				Sept 30, 2025				Sept 30, 2026				Sept 30, 2025
Capitalized MSRs		$	2,940			$	2,750			$	1,285			$	7,928			$	3,254
Change in fair value of loans (1)			(12,778	)			2,706				725				(13,596	)			8,743
Gain/loss on sale of portfolio loans (2)			(43	)			—				1,234				(43	)			1,234
Gain on sale of loans, net (3)			12,069				11,590				17,709				41,491				45,661
Total net gain on sale of loans		$	2,188			$	17,046			$	20,953			$	35,780			$	58,892
Total net gain on sale of loans		$	2,188			$	17,046			$	20,953			$	35,780			$	58,892
Remove: change in fair value of loans HFI and LRA			9,284				(657	)			(2,229	)			9,848				(7,739	)
Remove: gain/ loss on sale of portfolio loans			43				—				(1,234	)			43				(1,234	)
Total net gain on sale of loans, excluding portfolio sales and LRA / HFI fair value adjustments		$	11,515			$	16,389			$	17,490			$	45,671			$	49,919
(1) Includes the change in fair value of interest rate locks, loans HFS, and loans HFI.
(2) Includes proceeds from portfolio loans sales, which are netted against any associated changes in fair value of loans to determine total gain or loss on sale.
(3) Includes (a) net premium on sale of loans, (b) loan origination fees, points and costs, (c) provision from investor reserves, (d) gain or loss from forward commitments from hedging, and (e) fair value of LRA.

Salaries and employee benefits		Three Months Ended												Nine Months Ended
(Dollars in thousands)		Sept 30, 2026				June 30, 2026				Sept 30, 2025				Sept 30, 2026				Sept 30, 2025
Salaries and other compensation		$	8,735			$	8,827			$	8,177			$	26,134			$	23,845
Salary deferral from loan origination			(1,322	)			(1,203	)			(1,151	)			(3,586	)			(3,110	)
Bonus and incentive compensation			3,585				4,274				5,425				12,459				12,631
MPP - variable compensation			1,502				1,536				1,075				4,527				2,751
Mortgage production - variable compensation			6,411				8,259				7,578				21,711				21,365
Employee benefits			2,998				3,333				3,232				10,043				9,530
Total salaries and employee benefits		$	21,909			$	25,026			$	24,336			$	71,288			$	67,012

Non-performing Assets
(Dollars in thousands)		Sept 30, 2026				June 30, 2026				Sept 30, 2025
Unguaranteed		$	57,770			$	54,888			$	50,870
Wholly or partially guaranteed			25,164				25,073				26,568
Total non-accrual loans		$	82,934			$	79,961			$	77,438
Unguaranteed		$	7,908			$	2,132			$	5,522
Wholly or partially guaranteed			1,870				1,598				941
Total past due loans (90 days or more and still accruing)		$	9,778			$	3,730			$	6,463
Unguaranteed		$	65,678			$	57,020			$	56,392
Wholly or partially guaranteed			27,034				26,671				27,509
Total non-performing loans		$	92,712			$	83,691			$	83,901
Other real estate owned		$	2,823			$	2,980			$	1,339
Total non-performing assets		$	95,535			$	86,671			$	85,240
Total non-performing assets (excl wholly or partially guaranteed)		$	68,501			$	60,000			$	57,731
Loans past due 31-89 days		$	34,341			$	40,066			$	43,016
Ratios:
Non-accrual loans to total gross loans			1.19	%			1.18	%			1.24	%
Non-performing loans to total gross loans			1.33	%			1.23	%			1.35	%
Non-performing assets to total assets			1.25	%			1.15	%			1.25	%
Ratios excluding loans wholly or partially guaranteed:
Non-accrual loans to total gross loans			0.83	%			0.81	%			0.82	%
Non-performing loans to total gross loans			0.94	%			0.84	%			0.91	%
Non-performing assets to total assets			0.89	%			0.80	%			0.85	%

Regulatory Capital Ratios (1)		Sept 30, 2026			June 30, 2026			Sept 30, 2025
Total Capital (to Risk Weighted Assets)
Consolidated		11.45	%		11.62	%		11.32	%
Bank		11.11	%		11.26	%		11.14	%
Tier 1 (Core) Capital (to Risk Weighted Assets)
Consolidated		9.55	%		9.66	%		10.72	%
Bank		10.96	%		11.10	%		10.96	%
CET 1 Capital Ratio (to Risk Weighted Assets)
Consolidated		9.09	%		9.19	%		8.96	%
Bank		10.96	%		11.10	%		10.96	%
Tier 1 Capital (to Average Assets)
Consolidated		8.30	%		8.30	%		9.57	%
Bank		9.53	%		9.54	%		9.79	%
(1) The regulatory capital ratios as of September 30, 2026 are estimates, pending completion and filing of the Bank's regulatory reports.

Non-GAAP Financial Measures

This earnings release contains certain financial measures that are not measures recognized under U.S. generally accepted accounting principles (“GAAP”) and therefore are considered non-GAAP financial measures. The measures entitled tangible common equity, tangible book value, tangible assets, tangible common equity to tangible assets and return on average tangible common equity are not measures recognized under GAAP and therefore are considered non-GAAP financial measures. The most comparable GAAP measures to these measures are stockholders’ equity, book value per share, total assets, equity to assets and return on average equity, respectively.

The Company believes that non-GAAP financial measures provide useful information to management and investors that is supplementary to its financial condition, results of operations and cash flows computed in accordance with GAAP; however the Company acknowledges that the non-GAAP financial measures have inherent limitations. As such, these disclosures should not be viewed as a substitute for results determined in accordance with GAAP, and these disclosures are not necessarily comparable to non-GAAP financial measures that other companies use.

The Company calculates tangible common equity as stockholders' equity less goodwill and intangible assets (net of deferred tax liability ("DTL")) and preferred stock. The Company calculates tangible book value ("TBV") per share as tangible common equity divided by the number of shares of common stock outstanding at the end of the relevant period. The Company calculates tangible assets as total assets less intangible assets (net of DTL). The Company calculates tangible common equity/tangible assets as tangible common equity divided by tangible assets. The Company calculates return on average tangible common equity as annualized net income available to common stockholders divided by average tangible equity. The most directly comparable GAAP financial measures are outlined in the non-GAAP reconciliation table below.

Non-GAAP Measures Reconciliation
		As of or for the Three Months Ended												As of or for the Nine Months Ended
(Dollars in thousands)		Sept 30, 2026				June 30, 2026				Sept 30, 2025				Sept 30, 2026				Sept 30, 2025
Stockholders' equity (GAAP)		$	624,689			$	611,648			$	623,525			$	624,689			$	623,525
Less: Preferred stock			24,979				24,979				98,734				24,979				98,734
Less: Intangible assets, net of DTL			809				919				1,267				809				1,267
Tangible common equity			598,901				585,750				523,524				598,901				523,524
Common shares at end of period			34,581,842				34,581,842				34,364,659				34,581,842				34,364,659
Tangible book value per share		$	17.32			$	16.94			$	15.23			$	17.32			$	15.23
Book value per share (GAAP)		$	18.06			$	17.69			$	18.14			$	18.06			$	18.14
Total assets (GAAP)		$	7,666,612			$	7,529,951			$	6,839,580			$	7,666,612			$	6,839,580
Less: Intangible assets, net of DTL			809				919				1,267				809				1,267
Tangible assets		$	7,665,803			$	7,529,032			$	6,838,313			$	7,665,803			$	6,838,313
Tangible common equity/tangible assets			7.81	%			7.78	%			7.66	%			7.81	%			7.66	%
Equity to assets (GAAP)			8.15	%			8.12	%			9.12	%			8.15	%			9.12	%
Net income		$	14,375			$	21,746			$	22,173			$	58,276			$	59,766
Less: Preferred stock dividends			453				453				2,041				1,359				6,544
Net income available to common stockholders			13,922				21,293				20,132				56,917				53,222
Annualized net income available to common stockholders		$	55,234			$	85,406			$	79,872			$	76,098			$	71,158
Average tangible common equity			600,792				581,266				518,238				580,953				481,665
Return on average tangible common equity			9.19	%			14.69	%			15.41	%			13.10	%			14.77	%
Annualized net income		$	57,031			$	87,223			$	87,969			$	77,915			$	79,907
Average equity			626,654				607,236				618,312				606,924				583,427
Return on average equity (GAAP)			9.10	%			14.36	%			14.23	%			12.84	%			13.70	%

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20261020826020/en/

Investor Contacts:
Kevin Comps, President
616-974-8491 | kevin.comps@northpointe.com

Brad Howes, CFO
616-726-2585 | brad.howes@northpointe.com

Media Contact:
Katie Barnes, LLYC
616-901-6273 | Katie.Barnes@llyc.global

Source: Northpointe Bancshares, Inc.

Key Terms

letter of intent financial

A letter of intent is a document that shows an agreement in principle between parties to work towards a future deal or transaction. It outlines their intentions and key terms, acting like a roadmap before a formal contract is signed. For investors, it signals serious interest and helps clarify expectations early in the process.

fair value financial

Fair value is an estimate of what an asset or company is really worth today, derived from expected future earnings, comparable market prices and other relevant facts—like agreeing a price for a used car after checking mileage, condition and similar listings. Investors use fair value to decide whether a stock looks overpriced or undervalued, which helps guide buy, hold or sell decisions and sets expectations for potential returns and risk.

View in glossary

net interest margin financial

Net interest margin measures how much a bank earns from lending and investing compared with what it pays for funding, expressed as a percentage of its interest-earning assets. Think of it like a grocery store’s markup: it shows the gap between buying cost and selling price per dollar of goods — here, the cost is interest paid and the sale is interest received. Investors watch it because a higher margin usually means a bank is more profitable and better at managing interest rate and credit conditions.

net charge-offs financial

Net charge-offs are the amount of loans or credit a lender removes from its books as uncollectible after subtracting any money later recovered from previously written-off accounts. Think of it like a store writing off unpaid tabs but getting back a few dollars later — the net figure shows the real loss. Investors watch this to judge a lender’s loan quality, future profits and how much capital may be needed to cover bad debts.

non-performing assets financial

Loans or other credit exposures that are not producing expected income because borrowers have stopped making scheduled payments for a significant period (commonly around 90 days). Think of it like a business lending money that has gone quiet — the cash flow stops while the lender still carries the debt on its books. High levels of non-performing assets matter to investors because they reduce a lender’s earnings, tie up capital that could be used for growth, and signal higher risk of future losses.