Northpointe Bancshares, Inc. Reports Second Quarter 2026 Results

Northpointe Bancshares, Inc. (NYSE: NPB) ("Northpointe" or the "Company"), the holding company for Northpointe Bank, today reported net income to common stockholders of $21.3 million, or $0.60 per diluted share, for the second quarter of 2026. This compares to $21.7 million, or $0.62 per diluted share, for the first quarter of 2026, and $18.0 million, or $0.51 per diluted share, for the second quarter of 2025.

"We continued to deliver consistent profitability and strong financial performance for the first half of 2026," remarked Chuck Williams, Chairman and Chief Executive Officer. "Our performance reflects the continued success in our Mortgage Purchase Program business, with 36% growth in portfolio balances and 42% growth in total loans funded over the prior year. Our year-to-date results demonstrate the strength and resilience of our franchise, and our ability to generate consistent long-term value for shareholders."

Second Quarter 2026 Highlights

• Delivered consistent profitability and financial performance, including:
  • Return on average equity of 14.36%, compared to 15.32% in the prior quarter.
  • Return on average tangible common equity of 14.69%, compared to 15.71% in the prior quarter (see non-GAAP reconciliation).
  • Return on average assets of 1.18%, compared to 1.28% in the prior quarter.
  • Efficiency ratio of 54.76%, compared to 54.30% in the prior quarter.
• Continued growth in the balance sheet, including:
  • Mortgage Purchase Program ("MPP") balances increased by $77.3 million, or 8% annualized, from the prior quarter. This is net of $489.0 million in balances participated to other institutions at period end, which compares to $412.7 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 $36.7 million, or 19% annualized.
  • Total deposits increased by $231.9 million, or 19% annualized, primarily driven by higher brokered CDs.
• Asset quality remained stable:
  • Non-performing assets decreased by $4.0 million from the prior quarter.
  • Net charge-offs remained historically low at $528,000, or 0.03% of average loans (annualized).
• Wholesale funding ratio stable at 63.09% compared to 62.94% in the prior quarter.
• The Company's Board of Directors declared a regular quarterly cash dividend of $0.025 per share, payable on August 4, 2026, to stockholders of record as of July 15, 2026.

Net Interest Income

Net interest income before provision was $42.4 million for the second quarter of 2026, an increase of $1.1 million compared to the first quarter of 2026. The linked quarter increase reflects a $389.5 million increase in average interest-earning assets partially offset by a 9 basis point decrease in net interest margin. As compared to the second quarter of 2025, net interest income before provision increased by $5.9 million, which was driven primarily by a $1.30 billion increase in average interest-earning assets partially offset by an 11 basis point decrease in net interest margin.

Net interest margin was 2.33% for the second quarter of 2026, a decrease of 9 basis points compared to 2.42% in the first quarter of 2026 and a decrease of 11 basis points compared to 2.44% in the second quarter of 2025. The linked quarter decrease was driven primarily by lower average yields on MPP balances reflecting tighter margins and a decrease in the Secured Overnight Financing Rate ("SOFR") over the same period. Average rates paid on interest-bearing liabilities was flat compared to the linked quarter period. 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 June 30, 2026 increased by $389.5 million from March 31, 2026 and by $1.30 billion compared to June 30, 2025. The increases from both comparable periods reflect the strong growth in MPP and AIO 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 expense (including both loans and unfunded commitments) of $210,000 in the second quarter of 2026, compared to a provision (benefit) of $445,000 in the first quarter of 2026 and provision expense of $583,000 in the second 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 $9.4 million at June 30, 2026, $9.7 million at March 31, 2026 and $12.4 million at June 30, 2025. The allowance for credit losses represented 0.15% of loans held for investment at June 30, 2026, 0.15% of loans held for investment at March 31, 2026 and 0.23% of loans held for investment at June 30, 2025. The majority of the growth in the loans held for investment portfolio has come from MPP or 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 June 30, 2026, residential mortgage, construction, and other consumer / home equity loans have decreased by $45.0 million from March 31, 2026 and by $216.9 million from June 30, 2025.

The total provision for credit losses expense in the second quarter of 2026 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 loan mix, partially offset by slightly higher loss rates from the economic forecasts used in the credit models. The total provision (benefit) in the prior quarter reflected net charge-offs of $266,000, and a decrease of $735,000 in allowance for credit losses, which was primarily attributable to lower delinquent loans and continued run-off in the construction loan portfolio. The total provision expense for credit losses in the prior year quarter reflected net charge-offs of $488,000, and an increase of $60,000 in allowance for credit losses.

Non-interest Income

Non-interest income was $21.9 million for the second quarter of 2026, a decrease of $0.3 million compared to the first quarter of 2026 and a decrease of $0.5 million compared to the second quarter of 2025.

MPP fees, which are driven by total loans funded and participation balances, were $2.3 million for the second quarter of 2026, an increase of $0.3 million compared to the first quarter of 2026 and an increase of $1.0 million compared to the second quarter of 2025. The increases from both comparable periods reflect higher levels of funded loans, along with higher levels of participations, in the MPP business.

Loan servicing fees were $2.3 million for the second quarter of 2026, a decrease of $1.3 million compared to the first quarter of 2026 and an increase of $0.7 million compared to the second quarter of 2025. The changes from both comparable periods reflect changes in the fair value of mortgage servicing rights ("MSRs") primarily attributable to the movement in market interest rates during the respective periods.

Net gain on sale of loans was $17.0 million for the second quarter of 2026, compared to $16.5 million for the first quarter of 2026 and $19.4 million for the second 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 second quarter of 2026 included an increase of $657,000 from the combined change in fair value of loans held for investment and lender risk account ("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 $16.4 million, a decrease of $1.4 million on a comparative basis from the first quarter of 2026 and a decrease of $1.2 million on a comparative basis from the second 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 $35.2 million for the second quarter of 2026, an increase of $0.8 million compared to the first quarter of 2026 and an increase of $3.5 million compared to the second quarter of 2025.

Salaries and benefits expense increased by $0.7 million on a linked quarter basis and increased by $2.8 million compared to the second quarter of 2025. The linked quarter increase was driven primarily by higher variable compensation on mortgage production reflecting a higher mix of traditional retail volume during the quarter. The increase compared to the prior year quarter was driven primarily by higher salaries and other compensation and bonus and incentive compensation.

Data processing expenses increased by $0.2 million on a linked quarter basis and increased by $0.4 million compared to second quarter of 2025. The increases from both comparable periods were driven primarily by the timing of certain software expenses.

Other taxes and insurance decreased by $0.3 million on a linked quarter basis, but increased by $0.8 million compared to the second quarter of 2025. The changes for both comparable periods were driven primarily by FDIC assessment expense, which fluctuates with changes in assets, wholesale funding mix and utilization of capital.

Taxes

Income tax expense for the second quarter of 2026 was $7.1 million, compared to $7.3 million for the first quarter of 2026 and $6.3 million for the second quarter of 2025. The Company's effective tax rate was 24.72% for both the second and first quarters of 2026, and was 23.67% for the second quarter of 2025.

Balance Sheet Highlights

Total assets were $7.53 billion at June 30, 2026, representing an increase of $134.1 million compared to March 31, 2026 and an increase of $1.10 billion compared to June 30, 2025. The increases for both comparable periods were driven primarily by growth in loans.

Gross loans held for investment were $6.48 billion at June 30, 2026, an increase of $69.0 million, or 4% annualized, compared to March 31, 2026 and an increase of $983.4 million, or 18%, compared to June 30, 2025. The increases for 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 held for investment portfolio. The Company continues to focus on growing these two main portfolios. Outside of these two portfolios, no other significant loans are being added to the loans held for investment portfolio. At June 30, 2026, virtually all of the loan portfolio was comprised of loans collateralized by residential property.

Loans held for sale totaled $312.0 million at June 30, 2026, compared to $297.2 million at March 31, 2026 and $331.2 million at June 30, 2025, and reflect the timing of closing saleable residential mortgage originations.

Total deposits were $5.23 billion at June 30, 2026, an increase of $231.9 million, or 19% annualized, compared to March 31, 2026 and an increase of $759.2 million, or 17%, compared to June 30, 2025. The linked quarter increase was driven primarily by higher levels of brokered deposits. As compared to June 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 $1.51 billion at June 30, 2026, a decrease of $119.0 million compared to March 31, 2026 and an increase of $237.6 million compared to June 30, 2025. The changes for 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 June 30, 2026 and March 31, 2026, and $24.2 million at June 30, 2025. The increase from June 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 a new 7.50% fixed-to-floating rate subordinated notes issued during the fourth quarter of 2025.

Asset Quality

Net charge-offs were $528,000, or 3 basis points annualized as a percentage of average loans, for the second quarter of 2026. This compares to $266,000, or 2 basis points annualized as a percentage of average loans, for the first quarter of 2026, and $488,000, or 4 basis points annualized as a percentage of average loans, for the second 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 $86.7 million at June 30, 2026 ($60.0 million excluding guaranteed loans), $90.7 million at March 31, 2026 ($63.4 million excluding guaranteed loans) and $87.1 million at June 30, 2025 ($58.5 million excluding guaranteed loans). Non-performing assets represented 1.15% of total assets at June 30, 2026 (0.80% excluding guaranteed loans), 1.23% at March 31, 2026 (0.86% excluding guaranteed loans) and 1.35% at June 30, 2025 (0.91% excluding guaranteed loans).

Capital

At June 30, 2026, the estimated capital levels for the Company and its subsidiary bank, Northpointe Bank (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 June 30, 2026 are estimates, pending completion and filing of the Bank's regulatory reports.

Earnings Presentation and Conference Call

Northpointe will host its second quarter of 2026 earnings conference call on July 22, 2026 at 10:00 a.m. E.T. During the call, management will discuss the second 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 . 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 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; 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, . 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 .

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.

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