NPB

Northpointe Bancshares just reported Q3 2026 and the headline is simple. Earnings power blinked. Emotion swung harder than the numbers. Net income fell to US$13.9 million, or US$0.40 per share, as fair value hits on interest rate sensitive assets and a fraud related operational loss bit into profit. The stock came into today already under pressure over the past quarter and then dropped another 4.1% to US$15.13 after the release. That move pins the entire story on one weak quarter, while the bigger question now is how this profit squeeze reshapes the bank's valuation and confidence in its new mortgage mix. Like the income hit at Northpointe Bancshares but uneasy about the fraud loss and interest rate exposure? Compare it with banks that have been screened for stronger fundamentals and cleaner books in our list of solid balance sheet and fundamentals stocks (25 results) - Total Revenue (Q3 2026 vs. Q3 2025): US$55.1 million vs. US$63.5 million (a decrease of 13.3%) - Net Income (Excl. Extra Items, Q3 2026 vs. Q3 2025): US$13.9 million vs. US$20.1 million (a decrease of 30.8%) - Basic EPS (Q3 2026 vs. Q3 2025): US$0.40 vs. US$0.58 (a decrease of 31.1%) - Net Interest Margin, NIM (Q3 2026 vs. Q3 2025): 2.32% vs. 2.47% (a compression of 0.15 percentage points) Ask Charlie what Northpointe Bancshares plans after selling retail mortgages. For a constructive view on Northpointe Bancshares, you would point to where earnings are being sourced, not just the Q3 headline. MPP balances and specialty consumer loans are being built around higher yielding, relationship style products, while servicing now covers US$6.0b of unpaid principal. Deposit funding of US$5.4b, with more demand balances and less time deposits, hints at a franchise leaning on operating accounts rather than only rate shoppers. The sell down of distributed retail origination fits that tilt toward recurring interest and fee income instead of transactional mortgage volume. The bearish angle finds real support in these numbers. Net income fell sharply from US$21.3 million in Q2 to US$13.9 million, as fair value marks on rate sensitive assets and a US$3.1 million fraud loss hit the bottom line. NIM of 2.32% sits toward the low end of management's full year target range, which keeps pressure on earnings power. The stock has fallen over 12% across 90 days, showing that investors are treating the operational loss and compressing profitability as more than just background noise. Are analysts convinced Northpointe Bancshares has really upgraded its earnings engine, or still marking it down for operational noise? Check the consensus price target analysis for Northpointe Bancshares. Northpointe Bancshares recently highlighted how a single quarter can reshape the earnings narrative and sentiment around a business. The real opportunity is in finding stocks that could be undervalued before expectations adjust. - Company 1 - 40% below our estimate - builds solar tracking and control platforms that customers adapt alongside storage, inverter and related solutions. - Company 2 - 50% below our estimate - shifts its lending franchise toward fee based services and partnership driven programs focused on costs and revenues. - Company 3 - 41% below our estimate - expands protective film manufacturing capacity to support higher margin products and deepen channels with installers and vehicle makers. That is three of the list. See the full list of 33 companies trading below our fair value estimates → This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NPB. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Image source: The Motley Fool. Wednesday, Oct. 21, 2026 - Chief Financial Officer - Brad Howes - Chairman and Chief Executive Officer - Chuck Williams - President - Kevin Comps Operator: Greetings, and welcome to the Northpointe Bancshares Inc Q3 2026 Earnings Conference Call. At this time, all participants are in listen only mode. A question and answer session will follow the formal presentation. You may be placed in the question queue at any time by pressing star one on your telephone keypad. As a reminder, this conference is being recorded. If anyone should require operator assistance, please press star zero on your telephone keypad. It's now my pleasure to turn the call over to Brad Howes, CFO. Please go ahead, sir. Brad Howes: Good morning, and welcome to Northpointe's Third Quarter 2026 Earnings Call. My name is Brad Howes, and I'm the Chief Financial Officer. With me today are Chuck Williams, our Chairman and CEO, and Kevin Comps, our President. Additional earnings materials, including the presentation slides that we will refer to on today's call, are available on Northpointe's investor relations website, ir.northpointe.com. As a reminder, during today's call, we may make forward-looking statements which are subject to risks and uncertainties and are intended to be covered by the Safe Harbor provisions of federal securities law. For a list of factors that may cause actual results to differ materially from expectations, please refer to the disclosures contained within our SEC filings. We will also reference non-GAAP financial measures and encourage you to review the non-GAAP reconciliations provided in both our earnings release and presentation slides. The agenda for today's call will include prepared remarks, followed by a question and answer session. With that, I'll turn the call over to Chuck. Chuck Williams: Thank you, Brad. Good morning, everyone, and thank you for joining. This quarter was an important one for Northpointe and marks a significant step in the continued evolution of our business model. Last night, we announced that we are entering into a non-binding letter of intent with CMG Financial and its affiliates to sell the distributed retail and consumer direct mortgage origination channels. This decision was not a reflection of the management or supporting teams in the residential lending division, which has helped contribute to Northpointe's success over the years. But with today's economic and operating headwinds and with the continued evolution of mortgage distribution channels, we have reached an inflection point that no longer made the business channel viable. Because of this, management and the board have made the difficult strategic decision to sell the channels. This allows us to refocus our strategic priorities towards businesses where we believe Northpointe has the strongest competitive advantage and the greatest opportunity to create sustained long-term growth and sustainable franchise value for all stakeholders. We have built a unique national platform that combines specialty finance and relationship-based banking across a broad mortgage ecosystem. As we evaluated the opportunities available across the franchise, it became increasingly clear that our greatest opportunities lie in expanding our MPP and specialty finance capabilities, deepening client relationships, growing relationship-based deposits, and generating attractive portfolio assets in a more efficient manner. Importantly, we remain committed to the mortgage banking industry, and we will continue to be a growth-oriented and customer-centric banking franchise serving clients and communities across our national footprint. While the mortgage industry remains very challenging, we continue to take market share and demonstrate strong growth in our Mortgage Purchase Program or MPP business. We've increased total MPP balances by $2.5 billion from the end of 2024, and we believe our program remains an attractive alternative to traditional warehouse lending. Brad will cover the financial projections on this transaction and the current period results in more detail. For the third quarter, we earned $13.9 million or $0.39 per diluted share. We have three significant fair value assets which in aggregate move up or down based on a movement in long-term interest rates. Our results this quarter included a combined decrease in fair value of $4.3 million for those three assets based on the significant rate movements during the quarter. In addition, we had a $3.1 million operational loss related to an isolated external deposit fraud incident within our retail banking center, which we promptly addressed through strengthening procedures and additional controls. As we look ahead, our vision is clear. Northpointe's future is centered on MPP specialty finance through strategic asset generation, relationship-driven banking, and deposit growth and specialty servicing. As we focus resources on the businesses where we are most differentiated, we believe we can expand client relationships and generate a more robust and stable earnings profile. I'd like to turn the call over to Kevin to provide more details on our business lines. Kevin Comps: Thanks, Chuck, and good morning, everyone. Let's start with the MPP business on slide seven. Compared to the prior quarter, period-ending MPP balances increased by $262.7 million, and average balances increased by $237.2 million, resulting in $3.7 million quarterly increase in interest income within the channel. Let me break down the third quarter 2026 growth a bit further. First, we brought in four new clients, which totaled $185 million in additional capacity. Second, we increased facility size for three existing clients, which totaled $100 million in additional capacity. Third, the overall utilization of our existing clients remains strong, averaging 58% in the third quarter. As discussed on prior calls, our MPP balances are net of any balances that we have participated out. At September 30, 2026, we have participated $368.3 million to our partner banks, which is down from $489.0 million at June 30, 2026 as we continue to optimize the balance sheet within our existing capital framework. Average MPP yields were 6.27%, and fee-adjusted yields were 6.49% during the third quarter of 2026. The quarterly decrease in average yield continues to reflect competitive pricing within the industry, especially with larger mortgage originators. Also, keep in mind that our yields and our MPP business reprice at a one-month lag, so the benefit from the increase in SOFR is not reflected in our third quarter results. Turning now to retail banking on slide eight, I'd like to highlight the results of the businesses within that segment. With the increase in mortgage rates, total residential mortgage originations decreased by 26% from the prior quarter level, and we saw a similar decline in locks and application volume. Gain-on-sale margins are also tightening given the competition for volume across the industry. In the middle of slide eight, we highlight our Digital Deposit Banking channel, where we feature our direct-to-customer platform and competitive product suite. We ended the third quarter with $5.4 billion in total deposits, an increase of $210.4 million from the prior quarter. The breakout of these deposits is detailed in the appendix on slide 14. During the quarter, we saw a nice increase in non-interest-bearing demand deposits, along with higher interest-bearing demand deposits driven by normal seasonality and our custodial deposit balances. These were partially offset by lower time and savings and money market deposits as we intentionally let some balances run down in favor of more attractive brokered and FHLB funding sources. Over the last year and a half, we've been successful in adding new funding partner relationships to help bolster core deposits and fund our planned growth. We have similar smaller relationships in the pipeline and will continue to look for more of these types of omnibus accounts. On the right side of slide eight, we highlight our specialty mortgage servicing channel, where we focus on servicing first lien home equity lines tied seamlessly to demand deposit sweep accounts, including what we commonly refer to as AIO loans. Excluding the adjustment for the change in fair value of MSRs, we earned $2.6 million in loan servicing fees for Q3, up from the prior quarter. Including loans we outsourced to a sub-servicer, we serviced 17,400 loans for others with a total UPB of $6.0 billion as of the third quarter 2026, both up from the prior quarter level. With the planned sale of our residential lending mortgage origination channels, we will no longer be capitalizing new MSRs for our own balance sheet. We've had success adding new specialty servicing relationships and increased their portfolio over the past year, and that will remain our strategic focus. Turning lastly to asset quality on slide nine, net charge-off decreased slightly to $429,000 in the third quarter of 2026. This represents an annualized net charge-off ratio to average loan of 2 basis points, remaining well below long-term historical averages. Non-performing assets increased by $8.9 million from the prior quarter, of which over half was from two borrowers, which we do not expect to incur any material losses on. Early-stage delinquent loans improved, with loans past due 31-89 days down $5.7 million from the prior quarter level. I would like to now turn the call over to Brad to cover the financials. Brad Howes: All right. Thanks, Kevin. I would like to make two important points today before I begin. First, as I go through today's slide presentation, I will be incorporating full year 2026 and 2027 guidance into my commentary. Second, my guidance for both 2026 and 2027 includes the projected financial impact of the proposed sale of the distributed retail and consumer direct mortgage origination channels. The arrangement is primarily for the sale and transition of those teams and does not involve the sale or transfer of loans, servicing rights, or other material assets. Let's start with the income statement on slide 10. For the third quarter of 2026, we had net income to common stockholders of $13.9 million or $0.39 per diluted share. This compares to $21.3 million or $0.60 per diluted share for the second quarter of 2026. Our results in the third quarter included two notable items Chuck discussed, which had total pre-tax negative impact of $7.5 million. Net interest income increased by $1.2 million from the prior quarter, reflecting an increase in average interest-earning assets of $157 million and a 1 basis point decrease in net interest margin. The linked-quarter decrease in margin was primarily driven by higher average deposit costs, partially offset by higher average yields on loans and an improvement in the funding mix. The 25-basis point increase in the Fed funds rate occurred in mid-September, so we only received a limited yield benefit in the third quarter. Our two growth portfolios, MPP and AIO, both reprice on the short end of the yield curve. However, MPP facilities do so on a one-month lag, as Kevin highlighted. Brokered CD rates tend to reprice in advance of potential rate movements, which is what we saw this quarter. So we experienced higher funding costs with limited yield benefit from the Federal Reserve rate increase. Absent any additional rate changes, I would expect to see a larger portion of the net interest margin benefit in the fourth quarter. Our third quarter net interest margin was 2.32%, and year-to-date 2026 was 2.36%. I expect full year 2026 net interest margin to remain in the range of 2.3%-2.4%, no change from my prior guidance. For full year 2027, I expect net interest margin to improve to between 2.4% and 2.6%. My guidance assumes continued improvement in the mix of loans within the held for investment portfolio and no significant changes to the current mix of deposits. I also assume one additional 25 basis point Fed funds rate increase early in 2027. Turning to the loan portfolio, average interest earning assets increased nicely over the prior quarter level. That was driven by continued success and growth in MPP facilities, along with the purchase of $85.4 million in seasoned AIO loans, which closed on September 30, 2026. We purchased these loans at a discount, resulting in net balances of $69.9 million on balance sheet. Loans were originated between 2005 and 2008, so they carry very low LTVs and extremely limited credit risk. The average coupon yield is around 5%, but when you factor in the baseline expected monthly discount accretion, that yield increases to around 7.5%. With the sale of the mortgage origination channels, we now shift our focus on generating attractive portfolio assets through existing client relationships and select opportunistic purchases. The seasoned AIO pool is a great example of this. By shifting away from heavy fixed cost infrastructure, we believe we can generate loans with similar yields and credit risk at a lower overall cost. For 2026 loan guidance, I'd expect MPP balances to remain in the range of $4.1 billion-$4.3 billion by year-end. Although at the higher end of the range, as we have additional capital to leverage with the loans available for sale, portfolio winding down. I'd also expect period ending AIO and other consumer loan balances to remain in the range of $900 million-$1.0 billion by year-end. I'd expect the remainder of the loan portfolio to continue to decrease, in the range of $1.7 billion-$1.8 billion by year-end. This category includes loans held for sale balances, which should be insignificant by end of year. For 2027 loan growth guidance, I'd expect MPP balances in the range of $4.7 billion-$5.0 billion by year-end. This estimate is net of any balances we participate out, which remains an important part of our overall balance sheet and capital optimization strategy. I'd expect period ending AIO and other consumer loan balances in the range of $1.3 billion-$1.5 billion by year-end. I'd expect the remainder of the loan portfolio to continue to decrease through normal amortization in the range of $1.5 billion-$1.7 billion by year-end. Kevin provided details on our asset quality trends this quarter, which remained stable. We had total provision expense of $845,000 in the third quarter. This reflected net charge-offs of $429,000 and an increase in the allowance for credit losses, which was primarily attributable to higher forecasted loss rates resulting from an update to the credit models, partially offset by lower allowance from an improvement in qualitative factors. I'd expect total provision expense in the range of $1.21 million-$2 million for 2026. For 2027, I'd expect total provision expense in the range of $5 million-$6 million, reflecting additional provisions related to stronger AIO and consumer loan growth. Additional provision expense or benefit related to credit migration trends, changes in the economic forecast or other changes to the credit models are not part of my guidance. Non-interest income decreased by $9.6 million from the prior quarter and includes the impact from our three fair value assets. On the top of slide 15, we break out those three assets and their associated quarterly increases or decreases in fair value. As a reminder, these tend to move up or down with interest rates and are not part of my revenue guidance each quarter. On the bottom of slide 15 and in our earnings release tables, we provide further details on the components of our net gain on sale of loans. As you can see from the chart, third quarter net gain on the sale of loans included a $7.7 million decrease in fair value of the loans held for investment and a $1.6 million decrease in fair value on the Lender Risk Account with the Federal Home Loan Bank. Excluding these items, net gain on the sale of loans would've been $11.5 million, which is down from $16.4 million on a comparable basis in the prior quarter. This decrease was driven primarily by lower saleable mortgage origination volume during the quarter. With the sale of the mortgage origination channels, there will be significantly lower gain on sale revenue in the fourth quarter of 2026 and virtually no revenue in 2027. I'd expect MPP fees in the range of $8 million-$9 million for the full year 2026. This is down slightly from prior guidance as we plan to add more balance sheet in the fourth quarter, resulting in lower participation balances and associated fees. For 2027, I'd expect MPP fees in the range of $8 million-$10 million for the full year. Excluding MSR fair value changes, loan servicing fees were $2.6 million for the quarter, up from the prior quarter. I'd expect loan servicing fees in the range of $9 million-$11 million for 2026, decreasing to $8 million-$10 million in 2027. Non-interest expense was up $0.8 million from the prior quarter. Third quarter 2026 expense included $3.2 million related to the deposit fraud in our retail banking center. This was partially offset by lower salaries and benefits, primarily from lower variable compensation on mortgage production, along with lower bonus and incentive compensation. For full year 2026, I'd expect total non-interest expense in the range of $140 million-$146 million. This includes the projected $6 million-$7 million in restructuring charges related to the sale of the mortgage origination channels, predominantly comprised of severance and other employee-related expenses, along with an impairment charge of approximately $800,000 on the remaining intangible asset associated with the previous mortgage team acquisition. I project these restructuring charges will be partially offset by lower variable mortgage commission and bonus and incentive compensation expense. Turning to the expense guidance for 2027, we expect to complete the proposed transaction with CMG during the fourth quarter of 2026 and anticipate meaningful reductions to the expense base and improved operating leverage going forward. I'd expect annualized expense savings in the range of $50 million-$55 million, with the bulk of which comprised of commissions, salaries, and benefits. The remainder would be made up of occupancy, technology, professional fees, marketing, and other expenses. For full year 2027, I'd expect total non-interest expense in the range of $80 million-$95 million, a significant decrease from 2026 levels as we realize the majority of the expected expense savings from the sale of the mortgage origination channels. Turning to the balance sheet on slide 11, total assets increased to $7.7 billion at September 30, 2026, based on the growth in MPP and AIO balances during the quarter. Our wholesale funding ratio was 63.94% at September 30, 2026, up slightly from the prior quarter. I expect we will continue to fund the planned balance sheet growth through a combination of brokered CDs, retail deposits, and other sources of non-brokered deposits where possible. Our effective tax rate was 24.43% for the third quarter of 2026, down from the prior quarter level. During the quarter, we purchased $7.6 million in investment tax credits, which helped reduce our overall effective rate by roughly $600,000 in the quarter. That was mostly offset by higher estimated state taxes. We plan to buy additional tax credits in the fourth quarter of 2026 and in 2027, which should help lower the overall effective tax rate in both periods. Lastly, on slide 12, we outline our regulatory capital ratios, which are estimates pending completion of regulatory reports. The board of directors increased the regular quarterly cash dividend to $0.03 per share from $0.025 per share in the prior quarter. Looking forward, we have a significant opportunity to add new assets at a very attractive point in the yield curve. I'd expect we will continue to leverage any additional capital generated through retained earnings to grow our held-for-investment loan portfolio. With that, we're happy to now take questions. Kevin, please open the line for Q&A. Operator: Certainly. We'll now be conducting a question and answer session. If you'd like to be placed into question queue, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you'd like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing star one. One moment please while we poll for questions. Our first question today is coming from Crispin Love from Piper Sandler. Your line is now live. Crispin Love: Thank you. Good morning, everyone. First off, I hear you on focusing on other areas where you have competitive advantages, but just on the consumer mortgage sale, can you share why you believe right now is the right time to sell the business? Could be at the trough or near the trough of the mortgage environment. And then also just what you gain from selling today. Chuck Williams: Yeah, I can answer that. This is Chuck. It is hard to predict whether we are in the trough or not. We have been at this business since the end of COVID, which some could argue has been in a trough for four years. And our team has been incredibly efficient over the last four years in making the business work in a very tough environment. And in the point in the third quarter of this year, again, as I said in my opening statement, it is just an inflection point to where the volumes could no longer carry the infrastructure overhead. And I have said on many calls that we have been tremendously efficient over the last four years in the unit remaining profitable. But we could no longer see a path forward for the profitability on the base overhead that it takes to run an efficient distributed retail operation. Just the bottom line. Crispin Love: Great. Okay. No, that is helpful. Do you think this is going to have a positive long-term impact to the earnings power of the full company from the sale? Brad Howes: Hey, Crispin. This is Brad. Yeah. When you run the numbers that I just provided on my guidance, we do believe there is a positive financial benefit. We kind of talked through the revenue items that will go away as well as the expense savings, and the expense savings will be greater than the revenue losses. So that will result in a net overall P&L benefit. And as Chuck mentioned, refocusing capital and resources on other divisions that really have the scale and leverage go a long way, I think, longer term in generating additional shareholder value and capital and earnings. Crispin Love: Okay, great. Appreciate that, Brad. And then just one quick one for me. On the deposit fraud, can we share how many customers were impacted here? And there is just confidence in getting that $3 million-plus back. Kevin Comps: Yes. This is Kevin. We cannot say too much on this topic, Crispin. We do have law enforcement involved, including the FBI, researching this. We also have a pending insurance claim. So we really cannot say more than what we put in our release and said during our prepared remarks. Crispin Love: Okay, I get that. I appreciate you taking the questions. Thank you. Brad Howes: Thanks. Chuck Williams: Thanks, Crispin. Operator: Thank you. Next question is coming from Damon DelMonte from KBW. Your line is now live. Damon DelMonte: Hey, good morning, guys. Thanks for taking my questions. Just hoping to kind of pull out a little bit more color on some of the strategic efforts to replace the lost income kind of over time. It sounds like you feel good about the MPP kind of line of sight going forward and that continuing to grow. Curious on the AIO loans. I think those are generated from the retail division, and I know you did a purchase this quarter. Does that book of business grow more from opportunistic purchases or is that something that you can still originate from the ongoing operations? Brad Howes: Yeah. Thanks, Damon. This is Brad. So what I'd say, we step back. We have the lost volume of the AIO business, which did generate from our retail channel to replace. We've also got capital associated with the loans held for sale portfolio. So our goal for 2026 and what is included in my prepared remarks and guidance is that we will replace both of those and potentially more. We're still very bullish on the asset class. I think the question really gets to the point of where are we going to source these. I point back to my remarks. We have relationships with a lot of mortgage lenders through our existing pipeline and MPP and relationships we've built through the years of being in the mortgage business. We've got a big Rolodex of places where we could source assets, and I think it'll turn to our focus will be on exactly what you mentioned, sourcing deals through existing client relationships as well as opportunistic acquisitions of loans or portfolios like you saw with the AIO purchase that we did. It'll be through a combination of both of them. We believe over time, this is a very cost-effective way to source very similar credit risk and yield profile and again, low interest rate risk assets similar to the way we do it today. Damon DelMonte: Got it. That's helpful. Thank you. Then you kind of touched on capital associated with the held for sale portfolio. So can you maybe just give us a broader thought on capital management? Is the excess capital going to continue to be allocated to supporting the MPP business? Or would you consider doing a buyback, kind of given where valuation is on the stock below tangible book value? Curious on your thoughts around that. Brad Howes: Yeah. I'll take this, Damon. This is Brad. So we look at all potential uses of capital when we evaluate these kinds of decisions. We have growth, dividends, and repurchases. What I point out is our projections and where we sit today. We leverage most of that capital for growth. We don't have a ton of excess capital we're sitting on, but we do run internal models, and we look at what's the best use of the overall capital. Depending on where we trade with the stock as a percentage of tangible book, the model could suggest one or the other is the route to go. So we evaluate all those. What I'll tell you is that we do not have a share repurchase plan today, but we are in the process of putting one together, and we look forward to sharing more information on that over the coming periods. Damon DelMonte: Great. Okay. Helpful. I guess this last question. You noted that you guys did purchase some tax credits this quarter, and it sounds like you might be doing more of that in the fourth quarter and in 2027. Just wondering if we get a little guidance on what you think a reasonable effective tax rate would be as we look out in the coming quarters. Brad Howes: Yeah. So I'll take that one, Damon. Again, Brad. We did purchase $7.6 million this quarter, which I commented in my remarks, helped lower the overall effective rate. The value of that was about $600,000. That got offset by some increases in state taxes as we finished returns for last year. Going forward, I'd say, I would expect in the fourth quarter we'll look at a similar level, if not more, of tax credits. I don't believe there should be any material offsets to that. So don't have an exact guidance for you, but if you look at the number we did in the third quarter and you take that and apply a little bit of an additional purchase on there, that should get you to kind of a 22%-23% effective tax rate. I think that's what we can provide today. As we look out into next year, we will evaluate the potential earnings that we have in 2027 along with any possible carrybacks that we want to do. I will provide more guidance on that, I think, in the coming quarters. We will continue to do this, and we find it is a very efficient use of liquidity. There is no capital use, and it is something we will continue to look at. Damon DelMonte: Great. Appreciate you taking and answering my questions. Thank you. Brad Howes: Thanks, Damon. Operator: Thank you. As a reminder, that is star one to be placed into question queue. Our next question is coming from Christopher Marinac from Brean Capital. Your line is now live. Christopher Marinac: Hey, thanks. Good morning. Just want to continue the capital question one more round. What does capital look like at the end of fourth quarter with the transactions completed, and I presume that you'll still incrementally grow, just because of retained earnings as well. Brad Howes: Correct. Yeah, we'll continue to grow through retained earnings. Really, the only capital impact from the transaction that we discussed would be the wind down of the loans held for sale portfolio, which is sitting somewhere in the couple hundred million dollar range. That'll wind down ratably over the quarter as we stop taking locks midway through. I expect it to be insignificant at year-end, so we would generate that additional capital that we plan to leverage through any part of our balance sheet. But we do plan to redeploy that capital into MPP or other existing assets that we can grow by year-end. Christopher Marinac: Of course, we use the capital ratios that are in the slides as a guidepost. Can you run the business at a lower capital ratio because the risk is changing and because you're changing the structure of the company? Is that something that you're considering, or how should we think about that? Brad Howes: I'd say we reevaluate our capital plan every year. That will be something we look at, whether it translates to additional. It's not very risky. The loans held for sale portfolio is a very small piece of the overall balance sheet, so I don't expect any material changes to what capital levels we can operate at. I'd expect us to continue to operate at similar levels to where you see us at today. There's not a ton of additional room. We leverage most of the capital that we have allocated to growth, and that's what I'd expect in 2026 and in 2027 next year. Christopher Marinac: Okay, great. That's helpful. Thank you for that. Then just back to the fraud issue. When you take this one issue out, how often do you have small operational losses that are small frauds that you just deal with under normal course of business? Is that number changing as we go forward? Kevin Comps: Yeah. The industry always has some small level of operational losses. It's been insignificant historically, and I would expect it to be insignificant going forward is the simple answer. Christopher Marinac: Okay, very well. Would you imagine that we'll get clarification on your insurance carriers in a couple of quarters, or would it take longer than that, do you think? Kevin Comps: I can't anticipate the timeline there, but I would think it's reasonable to say we'd have that within a couple of quarters. Christopher Marinac: Great. Then back to selling the production arms. If we look out a couple of years and interest rates are different and perhaps the refinance opportunities come back, do you revisit this decision at a future date? Chuck, curious on strategic standpoint, would you circle back once again? Chuck Williams: Yeah. One can never say never, but the plan would be, this has been a very difficult decision and a lot of thought has gone into this. But we're looking at turning our capital efforts and everything into a growing model, and that is in the MPP specialty servicing areas where we traditionally have growth areas for us. So I would say that we wouldn't anticipate being in distributed retail in the future. Christopher Marinac: Great, Chuck. Thank you for that. I appreciate it. Thanks for hosting us this morning. Chuck Williams: Thanks, Chris. Christopher Marinac: Thank you. Operator: We have reached the end of our question and answer session. Ladies and gentlemen, that does conclude today's teleconference and webcast. You may disconnect your lines at this time, and have a wonderful day. We thank you for your participation today. Before you buy stock in Northpointe Bancshares, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Northpointe Bancshares wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has positions in and recommends Northpointe Bancshares. The Motley Fool has a disclosure policy. Northpointe (NPB) Q3 2026 Earnings Call Transcript was originally published by The Motley Fool

- Interested in Northpointe Bancshares, Inc.? Here are five stocks we like better. - Northpointe Bancshares plans to exit its distributed retail and consumer direct mortgage origination channels through a proposed transaction with CMG Financial, expected to close in the fourth quarter of 2026. Management anticipates $50 million–$55 million in annualized expense savings, despite a substantial decline in gain-on-sale revenue. - Third-quarter net income fell to $13.9 million, or $0.39 per diluted share, from $21.3 million in the prior quarter, partly due to $7.5 million in pre-tax losses tied to asset valuations and a deposit fraud incident. Net interest income improved, while full-year 2026 net interest margin guidance remained at 2.3%–2.4%. - The company is redirecting growth toward its Mortgage Purchase Program, specialty finance, deposits and servicing. MPP balances increased by $262.7 million sequentially, deposits reached $5.4 billion, and the quarterly dividend rose to $0.03 per share. Northpointe Bancshares (NYSE:NPB) reported third-quarter net income of $13.9 million, or $0.39 per diluted share, while outlining a planned exit from its distributed retail and consumer direct mortgage origination channels through a non-binding letter of intent with CMG Financial and its affiliates. Chairman and CEO Chuck Williams said the company's decision to sell the channels followed a reassessment of the mortgage operating environment, including pressure on volumes and the fixed infrastructure required to operate a distributed retail platform. The proposed arrangement is primarily for the sale and transition of mortgage origination teams and does not include the sale or transfer of loans, servicing rights or other material assets, according to CFO Brad Howes. → The AI Sell-Off Continues—These 3 Stocks Keep Raising Guidance Anyway Management expects to complete the proposed transaction during the fourth quarter of 2026. The company said it will remain involved in mortgage banking while shifting resources toward its Mortgage Purchase Program, specialty finance, relationship-based banking, deposit growth and specialty servicing. Williams said the residential lending division had contributed to Northpointe's historical success, but management concluded that current conditions had reached an "inflection point" in which origination volumes could no longer support the infrastructure overhead needed for the business. → Tesla's Roadster Reveal Hints at 2 Much Bigger Moves "Our team has been incredibly efficient over the last four years in making the business work in a very tough environment," Williams said during the question-and-answer session. "But we could no longer see a path forward for the profitability on the base overhead that it takes to run an efficient distributed retail operation." Howes said the company expects the transaction to have a positive long-term effect on earnings power because anticipated expense reductions are expected to exceed the associated revenue losses. Northpointe projected annualized expense savings of $50 million to $55 million, largely from commissions, salaries and benefits, with further savings expected in occupancy, technology, professional fees, marketing and other expenses. → Luxury's Middle Market Is Cracking—These 3 Stocks Could Win The company expects total non-interest expense of $80 million to $95 million in 2027, compared with projected 2026 expense of $140 million to $146 million. The 2026 outlook includes an estimated $6 million to $7 million of restructuring charges related to the sale, primarily for severance and other employee-related expenses, plus an approximately $800,000 impairment charge tied to an intangible asset from a previous mortgage team acquisition. Management said gain-on-sale revenue is expected to decline substantially following the transaction, with significantly lower revenue in the fourth quarter of 2026 and virtually no such revenue expected in 2027. Third-quarter net income declined from $21.3 million, or $0.60 per diluted share, in the second quarter. The quarter included two notable negative items totaling $7.5 million before taxes: a $4.3 million combined fair-value decrease across three assets affected by long-term interest-rate movements and a $3.1 million operational loss related to an isolated external deposit fraud incident at a retail banking center. Howes said the company strengthened procedures and controls in response to the fraud incident. President Kevin Comps said law enforcement, including the FBI, is involved in the investigation and that Northpointe has a pending insurance claim. The company did not provide further details on the number of customers affected or the anticipated recovery amount. Net interest income increased by $1.2 million sequentially, supported by a $157 million increase in average interest-earning assets. Third-quarter net interest margin was 2.32%, compared with 2.36% year to date. Howes maintained full-year 2026 net interest margin guidance of 2.3% to 2.4% and projected a range of 2.4% to 2.6% for 2027. The company said a September increase in the federal funds rate provided only a limited third-quarter benefit because its MPP facilities reprice with a one-month lag, while brokered certificate-of-deposit funding costs tend to reprice in advance of potential rate moves. Northpointe continued to emphasize growth in its MPP business. Period-end MPP balances rose $262.7 million from the prior quarter, while average balances increased $237.2 million, contributing a $3.7 million quarterly increase in interest income from the channel. Comps said the company added four MPP clients representing $185 million in additional capacity and increased facility sizes for three existing clients by $100 million. Existing-client utilization averaged 58% during the quarter. At Sept. 30, Northpointe had participated out $368.3 million of MPP balances to partner banks, down from $489 million at June 30 as it optimized its balance sheet. Average MPP yields were 6.27%, and fee-adjusted yields were 6.49%. Management cited competitive pricing, particularly among larger mortgage originators, as a factor in lower average yields. The company projected year-end 2026 MPP balances of $4.1 billion to $4.3 billion and 2027 balances of $4.7 billion to $5 billion, net of participations. It expects AIO and other consumer loan balances to reach $900 million to $1 billion by the end of 2026 and $1.3 billion to $1.5 billion by the end of 2027. During the quarter, Northpointe purchased $85.4 million of seasoned AIO loans at a discount, resulting in $69.9 million of net on-balance-sheet loans. Howes said the loans, originated between 2005 and 2008, have low loan-to-value ratios and an average coupon yield near 5%, which rises to about 7.5% when expected discount accretion is included. Total deposits ended the quarter at $5.4 billion, up $210.4 million from the prior quarter. The increase reflected higher non-interest-bearing and interest-bearing demand deposits, partially offset by declines in time, savings and money market deposits that the company intentionally allowed to run down in favor of brokered and Federal Home Loan Bank funding. Specialty servicing also expanded. Excluding mortgage servicing rights fair-value changes, servicing fees were $2.6 million, up from the prior quarter. Northpointe serviced 17,400 loans for others with unpaid principal balances totaling $6 billion, including loans handled by a sub-servicer. Net charge-offs were $429,000, representing an annualized 2 basis points of average loans. Nonperforming assets increased $8.9 million from the second quarter, more than half of which came from two borrowers that management said are not expected to result in material losses. Loans delinquent between 31 and 89 days declined $5.7 million. Total assets were $7.7 billion at Sept. 30, driven by MPP and AIO growth. The wholesale funding ratio was 63.94%. The board increased Northpointe's regular quarterly cash dividend to $0.03 per share from $0.025 per share in the prior quarter. Howes said the company does not currently have a share repurchase program, but is in the process of developing one and expects to provide additional information in future periods. Northpointe Bancshares, Inc is a bank holding company headquartered in Grand Rapids, Michigan. It operates through Northpointe Bank, a financial institution focused on providing banking and lending services to consumers and businesses. Northpointe Bank offers residential mortgage products, including loans for home purchases and refinancing, as well as home equity lending. Its deposit products include checking, savings, money market and certificate of deposit accounts. The bank also provides personal and commercial banking services designed to meet the borrowing, cash-management and deposit needs of individuals and businesses. Through a combination of digital banking capabilities, mortgage lending channels and its physical banking presence, Northpointe serves customers in Michigan and markets across the United States. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Northpointe Bancshares Q3 Earnings Call Highlights" was originally published by MarketBeat. 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Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. - Management reached a strategic inflection point where mortgage origination volumes could no longer sustain the infrastructure overhead required for distributed retail operations. - The decision to sell the retail and consumer direct channels to CMG Financial reflects a shift toward businesses with stronger competitive advantages and more stable earnings profiles. - Performance in Q3 was impacted by a $4.3 million fair value decrease across three interest-rate sensitive assets and a $3.1 million operational loss from an isolated external deposit fraud incident. - The Mortgage Purchase Program (MPP) remains a primary growth engine, with balances increasing $2.5 billion since late 2024 as it serves as a viable alternative to traditional warehouse lending. - Strategic focus is transitioning toward expanding MPP, specialty finance capabilities, relationship-based deposits, and specialty servicing for first-lien home equity lines. - Management aims to generate attractive portfolio assets more efficiently by leveraging existing client relationships and opportunistic purchases rather than maintaining heavy fixed-cost infrastructure. - The proposed sale of origination channels is expected to yield $50 million to $55 million in annualized expense savings, primarily through reductions in commissions and salaries. - Net interest margin is projected to improve to 2.4%-2.6% in 2027, assuming one additional 25 basis point Fed funds rate increase and an improved loan mix. - Future asset generation will shift toward sourcing through the existing MPP client 'rolodex' and opportunistic acquisitions, such as the recent seasoned AIO loan pool purchase. - Capital previously allocated to the loans held for sale portfolio will be redeployed into MPP and other held-for-investment assets to optimize the balance sheet. - Guidance for 2027 anticipates virtually no gain-on-sale revenue following the transaction close, offset by significantly lower non-interest expenses in the range of $80 million to $95 million. - A $3.1 million operational loss was recorded due to an external deposit fraud incident; management has since strengthened procedures and is pursuing an insurance claim. - Restructuring charges of $6 million to $7 million are expected in Q4 2026, covering severance and an $800,000 impairment on mortgage-related intangible assets. - The company purchased $7.6 million in investment tax credits in Q3 to lower the effective tax rate and plans to continue this strategy through 2027. - Non-performing assets increased by $8.9 million, though over half of this increase is attributed to two specific borrowers where no material losses are expected. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. - Management noted that while it is difficult to predict the market trough, the business had been in a challenging environment for four years. - The decision was driven by the reality that current volumes could no longer cover the base overhead required for an efficient distributed retail operation. - Northpointe will leverage its extensive 'rolodex' of mortgage lender relationships built through the MPP business to source assets. - The strategy involves a combination of sourcing deals through existing clients and opportunistic portfolio acquisitions to maintain yield and credit profiles at lower costs. - The company currently prioritizes leveraging capital for growth and does not have an active share repurchase plan. - Management is in the process of developing a repurchase plan and will evaluate its implementation based on stock valuation relative to tangible book value. - CEO Chuck Williams indicated that while 'one can never say never,' the company does not anticipate returning to distributed retail in the future. - The long-term plan is to focus all capital and efforts on the growing MPP and specialty servicing models.

Northpointe Bancshares, Inc. (NPB) came out with quarterly earnings of $0.39 per share, missing the Zacks Consensus Estimate of $0.6 per share. This compares to earnings of $0.57 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -35.00%. A quarter ago, it was expected that this company would post earnings of $0.68 per share when it actually produced earnings of $0.6, delivering a surprise of -11.76%. Over the last four quarters, the company has not been able to surpass consensus EPS estimates. Northpointe Bancshares, Inc., which belongs to the Zacks Financial - Savings and Loan industry, posted revenues of $55.92 million for the quarter ended September 2026, missing the Zacks Consensus Estimate by 12.72%. This compares to year-ago revenues of $64.36 million. The company has topped consensus revenue estimates just once over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Northpointe Bancshares, Inc. shares have lost about 8.7% since the beginning of the year versus the S&P 500's gain of 12.4%. While Northpointe Bancshares, Inc. has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Northpointe Bancshares, Inc. was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.63 on $65.26 million in revenues for the coming quarter and $2.44 on $257.09 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Financial - Savings and Loan is currently in the bottom 35% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, West Bancorp (WTBA), is yet to report results for the quarter ended September 2026. The results are expected to be released on October 29. This holding company for West Bank is expected to post quarterly earnings of $0.65 per share in its upcoming report, which represents a year-over-year change of +18.2%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. West Bancorp's revenues are expected to be $28.7 million, up 14.8% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Northpointe Bancshares, Inc. (NPB) : Free Stock Analysis Report West Bancorporation, Inc. (WTBA) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Announces Strategic Decision to Sell Distributed Retail and Consumer Direct Mortgage Origination Channels GRAND RAPIDS, Mich., October 20, 2026--(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 NineMonths 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/ Contacts Investor Contacts: Kevin Comps, President 616-974-8491 | [email protected] Brad Howes, CFO 616-726-2585 | [email protected] Media Contact: Katie Barnes, LLYC 616-901-6273 | [email protected]

The market expects Banner (BANR) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended September 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on October 21. On the other hand, if they miss, the stock may move lower. While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise. This regional bank is expected to post quarterly earnings of $1.54 per share in its upcoming report, which represents a year-over-year change of +1.3%. Revenues are expected to be $182.87 million, up 7.1% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 0.64% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Banner, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -2.02%. On the other hand, the stock currently carries a Zacks Rank of #3. So, this combination makes it difficult to conclusively predict that Banner will beat the consensus EPS estimate. Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Banner would post earnings of $1.47 per share when it actually produced earnings of $1.44, delivering a surprise of -2.04%. Over the last four quarters, the company has beaten consensus EPS estimates three times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Banner doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Among the stocks in the Zacks Financial - Savings and Loan industry, Northpointe Bancshares, Inc. (NPB), is soon expected to post earnings of $0.6 per share for the quarter ended September 2026. This estimate indicates a year-over-year change of +5.3%. This quarter's revenue is expected to be $64.07 million, down 0.5% from the year-ago quarter. Over the last 30 days, the consensus EPS estimate for Northpointe Bancshares, Inc. has been revised 3.1% down to the current level. Nevertheless, the company now has an Earnings ESP of -2.52%, reflecting a lower Most Accurate Estimate. When combined with a Zacks Rank of #4 (Sell), this Earnings ESP makes it difficult to conclusively predict that Northpointe Bancshares, Inc. will beat the consensus EPS estimate. Over the last four quarters, the company surpassed EPS estimates just once. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Banner Corporation (BANR) : Free Stock Analysis Report Northpointe Bancshares, Inc. (NPB) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Wall Street expects a year-over-year increase in earnings on lower revenues when Northpointe Bancshares, Inc. (NPB) reports results for the quarter ended September 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on October 20. On the other hand, if they miss, the stock may move lower. While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise. This company is expected to post quarterly earnings of $0.60 per share in its upcoming report, which represents a year-over-year change of +5.3%. Revenues are expected to be $64.07 million, down 0.5% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 3.08% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Northpointe Bancshares, Inc., the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -2.52%. On the other hand, the stock currently carries a Zacks Rank of #4. So, this combination makes it difficult to conclusively predict that Northpointe Bancshares, Inc. will beat the consensus EPS estimate. While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Northpointe Bancshares, Inc. would post earnings of $0.68 per share when it actually produced earnings of $0.60, delivering a surprise of -11.76%. Over the last four quarters, the company has beaten consensus EPS estimates just once. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Northpointe Bancshares, Inc. doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. ServisFirst Bancshares (SFBS), another stock in the Zacks Financial - Savings and Loan industry, is expected to report earnings per share of $0.83 for the quarter ended September 2026. This estimate points to a year-over-year change of +27.7%. Revenues for the quarter are expected to be $173.15 million, up 27.1% from the year-ago quarter. Over the last 30 days, the consensus EPS estimate for ServisFirst has been revised 2.6% down to the current level. Nevertheless, the company now has an Earnings ESP of 0.00%, reflecting an equal Most Accurate Estimate. This Earnings ESP, combined with its Zacks Rank #4 (Sell), makes it difficult to conclusively predict that ServisFirst will beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates two times. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Northpointe Bancshares, Inc. (NPB) : Free Stock Analysis Report ServisFirst Bancshares, Inc. (SFBS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research