NPB

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 attributed the 21% year-to-date EPS growth to strong execution in the Mortgage Purchase Program (MPP) and resilient loan demand across the footprint. The MPP business remains the primary financial catalyst, with balances increasing 36% year-over-year to $3.9 billion despite capital constraints limiting sequential growth. Strategic utilization of loan participations ($489 million total) is being used to manage the balance sheet within existing capital frameworks while optimizing revenue streams. Net interest margin faced compression due to competitive pricing from larger mortgage originators and a higher proportional mix of larger clients with lower risk-adjusted pricing. The bank successfully lowered its wholesale funding ratio from 71% to 63% over the last year by diversifying into new core deposit funding sources. Residential lending shifted toward purchase volume, which increased 61% over the prior quarter, offsetting a significant decline in refinance activity as temporary rate drops subsided. Credit quality remains a core strength, with management reporting stable performance and no systemic borrower issues across the portfolio. Full-year 2026 net interest margin is projected between 2.3% and 2.4%, assuming no Federal funds rate movements and continued tightening in MPP yields. MPP balances are expected to end the year between $4.1 billion and $4.3 billion, with $300 million to $500 million on average participated out to partner institutions. Management expects period-ending All-In-One (AIO) loan balances to increase between $900 million and $1.0 billion by year-end 2026. Total noninterest expense guidance is maintained at $138 million to $142 million, reflecting efficient overhead management across rate cycles. The bank is exploring the purchase of investment tax credits to potentially lower the overall effective tax rate for the remainder of 2026. The wholesale funding ratio increased slightly to 63.09% this quarter, though the long-term trend remains downward as the bank prioritizes non-brokered deposits. AIO loan yields provided a partial hedge to margin compression as they are mostly tied to the 1-year CMT rate, which rose during the period. Management noted that while they are nearing capital limitations for balance sheet growth, the 'average balance' growth in MPP continues to drive interest income. The bank is actively hiring mortgage professionals in existing markets to capture market share regardless of broader industry volume trends. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management confirmed that margin pressure was driven by increased competition in the warehouse space as rivals have significant excess capacity. Despite the compression, Northpointe's margins remain higher than the industry average, and the bank is not making wholesale changes to its strategy. Growth is expected to stem primarily from a healthy pipeline of new clients rather than just expanding existing facilities. The participation program acts as a 'lever' to continue growing the program's volume beyond the constraints of the bank's own balance sheet. Reducing the wholesale funding ratio provides a 15 to 20 basis point improvement in FDIC insurance premiums. While new core funding relationships may carry higher interest rates than brokered CDs, the overall P&L benefit is realized through these lower insurance costs. Management does not anticipate competitors leaving the space unless a broader banking industry liquidity event occurs. The bank views its relative size and 'tech stack' as competitive advantages that allow it to continue growing even as new entrants put pressure on spreads.

Interested in Northpointe Bancshares, Inc.? Here are five stocks we like better. Northpointe Bancshares reported second-quarter 2026 net income of $21.3 million, or $0.60 per diluted share, with management highlighting strong loan and deposit growth, stable credit quality and a higher return on average assets of 1.18%. The company’s Mortgage Purchase Program (MPP) remained the main growth engine, with balances rising to $3.9 billion, up 36% year over year, and total MPP-funded loans reaching $12.8 billion for the quarter. Management said credit quality remains solid and lowered its wholesale funding ratio from 71% to 63%, while guiding full-year 2026 net interest margin to 2.3% to 2.4% and MPP balances to $4.1 billion to $4.3 billion. Northpointe Bancshares (NYSE:NPB) reported second-quarter 2026 net income to common stockholders of $21.3 million, or $0.60 per diluted share, as management pointed to continued growth in its Mortgage Purchase Program, stable credit quality and higher average earning assets. On the company’s earnings call, Chairman and CEO Chuck Williams said Northpointe has increased year-to-date diluted earnings per share by 21% over the past 12 months and grown tangible book value by more than $2.25 per share. Williams said new loans and deposits each grew 17% over that period, while the company lowered its wholesale funding ratio from 71% to 63% by adding new funding sources. → Buyback Boom: These 3 Companies Are Betting Billions on Their Own Stocks For the second quarter, Northpointe reported a return on average assets of 1.18% and a return on average tangible common equity of 14.69%. Williams said tangible book value per share increased at a 15% annualized rate from the prior quarter after factoring in dividends paid. “From my seat, the economy seems to be pretty resilient despite the current geopolitical and macroeconomic risks,” Williams said. He added that consumer spending remains healthy, credit quality is stable and Northpointe continues to see loan demand across its footprint. → 3 Photonics Companies Making Quantum Tech Possible Williams said Northpointe’s Mortgage Purchase Program, or MPP, remains “one of the largest catalysts” of the company’s financial performance. MPP balances ended the quarter at $3.9 billion, up more than $1 billion, or 36%, from the second quarter of 2025. Total loans funded through the MPP channel reached $12.8 billion during the quarter, compared with $11.2 billion in the prior quarter and $9 billion in the second quarter of 2025. Williams said demand remains strong, with a healthy pipeline of additional business. → AI Data Centers Need Power, and These 2 Industrials Are Cashing In President Kevin Comps said period-end MPP balances increased by $77.3 million from the prior quarter, while average balances rose by $477.5 million, helping drive higher interest income. During the quarter, Northpointe added 11 new clients representing $380 million in additional capacity and increased facility sizes for six existing clients by $265 million. Utilization among existing clients averaged 61%, up from 57% in the prior quarter. Comps said MPP balances are reported net of balances participated out to partner banks. At June 30, 2026, Northpointe had participated out $489.0 million, up from $412.7 million at March 31. Average MPP yields were 6.35% in the quarter, while fee-adjusted yields were 6.59%. Comps said the average yield declined 24 basis points from the prior quarter, reflecting a decrease in SOFR, tighter spreads, competitive pricing, thinner pricing on new deals and a larger proportional mix of bigger clients with lower risk-adjusted pricing. In residential lending, Comps said Northpointe closed $670.6 million in mortgages during the second quarter, down slightly from $693.7 million in the prior quarter. Saleable volume was $572.5 million, down from $626.6 million in the first quarter. Comps said refinance activity made up 27% of saleable volume in the second quarter, compared with 59% in the first quarter, when a temporary drop in mortgage rates supported refinancing. Purchase volume increased 61% from the prior quarter, driven by the company’s traditional retail channel. About 81% of saleable mortgage originations came from traditional retail and 19% from consumer direct in the second quarter, compared with 61% and 39%, respectively, in the first quarter. Northpointe sold approximately 61% of total saleable mortgages on a servicing-released basis, down from 68% in the prior quarter. Comps said the company hired four mortgage professionals in existing markets during the quarter. Comps said total deposits were $5.2 billion at quarter-end, increasing from the prior quarter, with most of the sequential growth driven by brokered deposits. Over the past year, he said Northpointe has added funding partner relationships to support core deposits and fund planned growth. Compared with the second quarter of 2025, non-interest-bearing demand deposits increased 30%, interest-bearing demand deposits increased 81%, and savings and money market deposits increased 45%. Northpointe also reported growth in its specialty mortgage servicing channel, which focuses on servicing first-lien home equity lines tied to demand deposit sweep accounts, including AIO loans. Comps said the specialty servicing portfolio increased 35% over the past year. Excluding the change in fair value of mortgage servicing rights, Northpointe earned $2.4 million in loan servicing fees for the quarter, up from the prior quarter. Including loans outsourced to a sub-servicer, the company serviced 16,200 loans for others with total unpaid principal balance of $5.5 billion. Executive Vice President and CFO Brad Howes said net interest income increased $1.1 million from the prior quarter, reflecting a $389.5 million increase in average interest-earning assets, partly offset by a nine-basis-point decrease in net interest margin. Northpointe’s second-quarter net interest margin was 2.33%, and year-to-date net interest margin was 2.37%. Howes guided to a full-year 2026 net interest margin range of 2.3% to 2.4%, assuming no additional Federal Reserve rate moves for the rest of the year, continued increases in yields based on held-for-investment loan mix and funding costs near current levels. For 2026, Howes said he expects: MPP balances of $4.1 billion to $4.3 billion by year-end. Average MPP participations of $300 million to $500 million. AIO balances of $900 million to $1.0 billion by year-end. Total saleable mortgage originations of $2.2 billion to $2.4 billion. All-in mortgage origination margins of 2.75% to 3.25%. Full-year non-interest expense of $138 million to $142 million. Howes maintained full-year provision expense guidance of $2 million to $3 million, driven by net charge-off replenishment and growth in MPP and AIO loans. He said credit migration trends, changes in economic forecasts or model changes were not included in the guidance. Comps said Northpointe recorded net charge-offs of $528,000 in the second quarter, representing an annualized net charge-off ratio to average loans of three basis points. He said the figure remains well below long-term historical averages and that the company is not seeing “any systemic borrower issues” in its portfolios. During the question-and-answer portion of the call, analysts asked about MPP margin compression, growth prospects and funding strategy. Howes said competitive pressures in the warehouse lending market were the biggest driver of lower MPP yields, while Williams said more entrants and limited industry volume have contributed to pricing pressure. Williams added that Northpointe remains confident in the channel despite the margin compression. Asked about deposit strategy, Comps said Northpointe continues to pursue relationships that can lower reliance on wholesale funding and potentially reduce FDIC insurance costs. Howes said lowering the wholesale funding ratio can create a 15- to 20-basis-point improvement in FDIC insurance costs, though it may not directly improve net interest margin if replacement funding carries similar rates. Northpointe Bancshares, Inc is the bank holding company for Northpointe Bank, an FDIC-insured community bank based in Michigan. The company offers a full range of commercial and consumer banking solutions, serving retail, small business and corporate clients through both a physical branch network and digital platforms. Northpointe Bank’s product suite includes interest-bearing checking and savings accounts, money market and certificate of deposit offerings, as well as residential mortgage lending, home equity financing and unsecured consumer loans. 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 Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

This article first appeared on GuruFocus. Diluted Earnings Per Share (EPS): $0.60 for the second quarter; $1.22 year-to-date, up 21% year-over-year. Tangible Book Value Per Share: Increased by over $2.25 per share, with a 15% annualized increase over the prior quarter. Return on Average Assets: 1.18% for the second quarter. Return on Average Tangible Common Equity: 14.69% for the second quarter. Mortgage Purchase Program (MPP) Balances: $3.9 billion, a 36% increase from the previous year. Total Loans Funded: $12.8 billion for the quarter, up from $11.2 billion in the prior quarter. Net Interest Margin: 2.33% for the second quarter; 2.37% year-to-date. Net Income to Common Stockholders: $21.3 million for the second quarter. Net Charge-Offs: $528,000, representing an annual net charge-off ratio of 3 basis points. Total Assets: $7.5 billion as of June 30, 2026. Wholesale Funding Ratio: 63.09% as of June 30, 2026. Effective Tax Rate: 24.72% for the second quarter. Warning! GuruFocus has detected 4 Warning Signs with NPB. Is NPB fairly valued? Test your thesis with our free DCF calculator. Release Date: July 22, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Northpointe Bancshares Inc (NYSE:NPB) increased its year-to-date diluted earnings per share by 21%. The company grew its tangible book value by over $2.25 per share. New loans and deposits each grew by 17%, indicating strong business generation. The Mortgage Purchase Program (MPP) balances increased by 36% from the previous year. The company added several new partner financial institutions, expanding its participation program. Net interest margin decreased by 9 basis points due to tighter yields on MPP facilities. Competitive pricing pressures impacted margins, especially with larger mortgage originators. Saleable mortgage origination volume decreased slightly from the prior quarter. The wholesale funding ratio remains high at 63.09%, indicating reliance on non-core funding. Provision expense is expected to increase, with guidance between $2 million and $3 million for 2026. Q: Can you discuss the dynamics affecting the net interest margin in the second quarter, particularly the impact of lower yields on MPP balances and tighter spreads due to competition? A: Brad Howes, Executive Vice President & Chief Financial Officer, explained that the biggest driver of the margin change was the NPP yields, influenced by increased competitive pressures in the industry. While cost of funds remained relatively flat, AIO yields increased slightly. The competitive pressures are expected to persist, but the company remains optimistic about growth despite the margin compression. Q: What are the sources of growth for the NPV side, and how do you balance between existing clients expanding versus adding new clients? A: Kevin Comps, Company Secretary, noted that growth is driven by both existing clients and a pipeline of new clients. The participation program allows for growth beyond the company's balance sheet size, optimizing the balance sheet with average assets in the program. Q: What was the margin on the mortgage origination business this quarter, and how does it compare to the guidance range? A: Brad Howes stated that the margin was towards the midpoint or upper end of the guidance range of 2.75% to 3.25%. The performance of the capital markets unit contributed to maintaining competitive margins, especially in the agency space. Q: Can you elaborate on the provision outlook for the full year, given the strong first half? A: Brad Howes indicated that the provision expense is expected to be at the lower end of the $2 million to $3 million range, driven by expected charge-off replenishment and new growth provisions. The outlook does not account for potential changes in home prices or portfolio quality. Q: What is the ongoing strategy to win over core deposit customers, and what opportunities do you see in the back half of the year? A: Kevin Comps mentioned that the company continues to focus on building relationships that offer relief on FDIC insurance and competitive funding costs. Conversations are ongoing, and the company hopes to report progress in the future. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Northpointe Bancshares, Inc. (NPB) came out with quarterly earnings of $0.6 per share, missing the Zacks Consensus Estimate of $0.68 per share. This compares to earnings of $0.51 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -11.77%. A quarter ago, it was expected that this company would post earnings of $0.66 per share when it actually produced earnings of $0.62, delivering a surprise of -6.06%. Over the last four quarters, the company has surpassed consensus EPS estimates just once. Northpointe Bancshares, Inc., which belongs to the Zacks Financial - Savings and Loan industry, posted revenues of $64.32 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 5.5%. This compares to year-ago revenues of $58.96 million. The company has topped consensus revenue estimates two times 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 added about 11.6% since the beginning of the year versus the S&P 500's gain of 8.7%. While Northpointe Bancshares, Inc. has outperformed 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 mixed. 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 #3 (Hold) for the stock. So, the shares are expected to perform in line with 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 $0.71 on $70.53 million in revenues for the coming quarter and $2.72 on $271.62 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 top 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 June 2026. The results are expected to be released on July 23. This holding company for West Bank is expected to post quarterly earnings of $0.63 per share in its upcoming report, which represents a year-over-year change of +34%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. West Bancorp's revenues are expected to be $28.15 million, up 18.1% 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

GRAND RAPIDS, Mich., July 21, 2026--(BUSINESS WIRE)--Northpointe Bancshares, Inc. (NYSE: NPB) ("Northpointe" or the "Company"), the holding company for Northpointe Bank, today reported net income to common stockholders of $21.3 million, or $0.60 per diluted share, for the second quarter of 2026. This compares to $21.7 million, or $0.62 per diluted share, for the first quarter of 2026, and $18.0 million, or $0.51 per diluted share, for the second quarter of 2025. "We continued to deliver consistent profitability and strong financial performance for the first half of 2026," remarked Chuck Williams, Chairman and Chief Executive Officer. "Our performance reflects the continued success in our Mortgage Purchase Program business, with 36% growth in portfolio balances and 42% growth in total loans funded over the prior year. Our year-to-date results demonstrate the strength and resilience of our franchise, and our ability to generate consistent long-term value for shareholders." Second Quarter 2026 Highlights Delivered consistent profitability and financial performance, including: Continued growth in the balance sheet, including: Asset quality remained stable: Wholesale funding ratio stable at 63.09% compared to 62.94% in the prior quarter. The Company's Board of Directors declared a regular quarterly cash dividend of $0.025 per share, payable on August 4, 2026, to stockholders of record as of July 15, 2026. Net Interest Income Net interest income before provision was $42.4 million for the second quarter of 2026, an increase of $1.1 million compared to the first quarter of 2026. The linked quarter increase reflects a $389.5 million increase in average interest-earning assets partially offset by a 9 basis point decrease in net interest margin. As compared to the second quarter of 2025, net interest income before provision increased by $5.9 million, which was driven primarily by a $1.30 billion increase in average interest-earning assets partially offset by an 11 basis point decrease in net interest margin. Net interest margin was 2.33% for the second quarter of 2026, a decrease of 9 basis points compared to 2.42% in the first quarter of 2026 and a decrease of 11 basis points compared to 2.44% in the second quarter of 2025. The linked quarter decrease was driven primarily by lower average yields on MPP balances reflecting tighter margins and a decrease in the Secured Overnight Financing Rate ("SOFR") over the same period. Average rates paid on interest-bearing liabilities was flat compared to the linked quarter period. The decrease compared to the prior year quarter was driven primarily by lower average yields on interest-earning assets, which outpaced the decrease in average rates paid on interest-bearing liabilities. Average interest-earning assets at June 30, 2026 increased by $389.5 million from March 31, 2026 and by $1.30 billion compared to June 30, 2025. The increases from both comparable periods reflect the strong growth in MPP and AIO balances, which are the portfolios the Company is focused on strategically growing, partially offset by continued run-off in the remainder of the loan portfolio. Provision (Benefit) for Credit Losses The Company recorded total provision for credit losses expense (including both loans and unfunded commitments) of $210,000 in the second quarter of 2026, compared to a provision (benefit) of $445,000 in the first quarter of 2026 and provision expense of $583,000 in the second quarter of 2025. The Company's quarterly provision (benefit) for credit losses reflects net loan charge-offs, along with factors such as loan growth, portfolio mix, reserves on individually evaluated loans, credit migration trends, and changes in the economic forecasts used in the credit models. The Company’s allowance for credit losses was $9.4 million at June 30, 2026, $9.7 million at March 31, 2026 and $12.4 million at June 30, 2025. The allowance for credit losses represented 0.15% of loans held for investment at June 30, 2026, 0.15% of loans held for investment at March 31, 2026 and 0.23% of loans held for investment at June 30, 2025. The majority of the growth in the loans held for investment portfolio has come from MPP or AIO balances, with continued run-off in residential mortgage, construction, and other consumer / home equity loans, which carry higher average loss rates. In total, at June 30, 2026, residential mortgage, construction, and other consumer / home equity loans have decreased by $45.0 million from March 31, 2026 and by $216.9 million from June 30, 2025. The total provision for credit losses expense in the second quarter of 2026 reflected net charge-offs of $528,000, and a decrease of $264,000 in allowance for credit losses, which was primarily attributable to lower levels of non-performing loans and continued change in loan mix, partially offset by slightly higher loss rates from the economic forecasts used in the credit models. The total provision (benefit) in the prior quarter reflected net charge-offs of $266,000, and a decrease of $735,000 in allowance for credit losses, which was primarily attributable to lower delinquent loans and continued run-off in the construction loan portfolio. The total provision expense for credit losses in the prior year quarter reflected net charge-offs of $488,000, and an increase of $60,000 in allowance for credit losses. Non-interest Income Non-interest income was $21.9 million for the second quarter of 2026, a decrease of $0.3 million compared to the first quarter of 2026 and a decrease of $0.5 million compared to the second quarter of 2025. MPP fees, which are driven by total loans funded and participation balances, were $2.3 million for the second quarter of 2026, an increase of $0.3 million compared to the first quarter of 2026 and an increase of $1.0 million compared to the second quarter of 2025. The increases from both comparable periods reflect higher levels of funded loans, along with higher levels of participations, in the MPP business. Loan servicing fees were $2.3 million for the second quarter of 2026, a decrease of $1.3 million compared to the first quarter of 2026 and an increase of $0.7 million compared to the second quarter of 2025. The changes from both comparable periods reflect changes in the fair value of mortgage servicing rights ("MSRs") primarily attributable to the movement in market interest rates during the respective periods. Net gain on sale of loans was $17.0 million for the second quarter of 2026, compared to $16.5 million for the first quarter of 2026 and $19.4 million for the second quarter of 2025. Net gain on sale of loans includes the capitalization of new MSRs, changes in fair value of loans, and gains on the sale of loans. The net gain on sale of loans for the second quarter of 2026 included an increase of $657,000 from the combined change in fair value of loans held for investment and lender risk account ("LRA"), which are both attributable to changes in market interest rates. Excluding these items (see Net Gain on Sale of Loans table below for a reconciliation), net gain on sale of loans was $16.4 million, a decrease of $1.4 million on a comparative basis from the first quarter of 2026 and a decrease of $1.2 million on a comparative basis from the second quarter of 2025. The decreases from both comparable periods reflect lower levels of residential mortgage interest rate lock commitments. Non-interest Expense Non-interest expense was $35.2 million for the second quarter of 2026, an increase of $0.8 million compared to the first quarter of 2026 and an increase of $3.5 million compared to the second quarter of 2025. Salaries and benefits expense increased by $0.7 million on a linked quarter basis and increased by $2.8 million compared to the second quarter of 2025. The linked quarter increase was driven primarily by higher variable compensation on mortgage production reflecting a higher mix of traditional retail volume during the quarter. The increase compared to the prior year quarter was driven primarily by higher salaries and other compensation and bonus and incentive compensation. Data processing expenses increased by $0.2 million on a linked quarter basis and increased by $0.4 million compared to second quarter of 2025. The increases from both comparable periods were driven primarily by the timing of certain software expenses. Other taxes and insurance decreased by $0.3 million on a linked quarter basis, but increased by $0.8 million compared to the second quarter of 2025. The changes for both comparable periods were driven primarily by FDIC assessment expense, which fluctuates with changes in assets, wholesale funding mix and utilization of capital. Taxes Income tax expense for the second quarter of 2026 was $7.1 million, compared to $7.3 million for the first quarter of 2026 and $6.3 million for the second quarter of 2025. The Company's effective tax rate was 24.72% for both the second and first quarters of 2026, and was 23.67% for the second quarter of 2025. Balance Sheet Highlights Total assets were $7.53 billion at June 30, 2026, representing an increase of $134.1 million compared to March 31, 2026 and an increase of $1.10 billion compared to June 30, 2025. The increases for both comparable periods were driven primarily by growth in loans. Gross loans held for investment were $6.48 billion at June 30, 2026, an increase of $69.0 million, or 4% annualized, compared to March 31, 2026 and an increase of $983.4 million, or 18%, compared to June 30, 2025. The increases for both comparable periods were driven primarily by growth in MPP balances and AIO loans, which were partially offset by decreases in the remainder of the loans held for investment portfolio. The Company continues to focus on growing these two main portfolios. Outside of these two portfolios, no other significant loans are being added to the loans held for investment portfolio. At June 30, 2026, virtually all of the loan portfolio was comprised of loans collateralized by residential property. Loans held for sale totaled $312.0 million at June 30, 2026, compared to $297.2 million at March 31, 2026 and $331.2 million at June 30, 2025, and reflect the timing of closing saleable residential mortgage originations. Total deposits were $5.23 billion at June 30, 2026, an increase of $231.9 million, or 19% annualized, compared to March 31, 2026 and an increase of $759.2 million, or 17%, compared to June 30, 2025. The linked quarter increase was driven primarily by higher levels of brokered deposits. As compared to June 30, 2025, the increase was driven primarily by higher levels of interest bearing demand and savings deposits, attributable to the growth in the Company's diversified digital deposit banking platform and new deposit relationships. Total borrowings were $1.51 billion at June 30, 2026, a decrease of $119.0 million compared to March 31, 2026 and an increase of $237.6 million compared to June 30, 2025. The changes for both comparable periods were driven primarily by fluctuations in the use of short-term lines of credit to meet liquidity needs. Subordinated debentures were $112.0 million at both June 30, 2026 and March 31, 2026, and $24.2 million at June 30, 2025. The increase from June 30, 2025 reflects a private placement of $20.0 million in aggregate principal amount of fixed-to-floating rate subordinated notes issued during the first quarter of 2026 and $70.0 million in aggregate principal amount of a new 7.50% fixed-to-floating rate subordinated notes issued during the fourth quarter of 2025. Asset Quality Net charge-offs were $528,000, or 3 basis points annualized as a percentage of average loans, for the second quarter of 2026. This compares to $266,000, or 2 basis points annualized as a percentage of average loans, for the first quarter of 2026, and $488,000, or 4 basis points annualized as a percentage of average loans, for the second quarter of 2025. A substantial portion of the Company's non-performing loans are wholly or partially guaranteed by the U.S. Government, so asset quality metrics within this earnings release are shown with and without these guaranteed loans. Non-performing assets were $86.7 million at June 30, 2026 ($60.0 million excluding guaranteed loans), $90.7 million at March 31, 2026 ($63.4 million excluding guaranteed loans) and $87.1 million at June 30, 2025 ($58.5 million excluding guaranteed loans). Non-performing assets represented 1.15% of total assets at June 30, 2026 (0.80% excluding guaranteed loans), 1.23% at March 31, 2026 (0.86% excluding guaranteed loans) and 1.35% at June 30, 2025 (0.91% excluding guaranteed loans). Capital At June 30, 2026, the estimated capital levels for the Company and its subsidiary bank, Northpointe Bank (the "Bank"), remained well in excess of the minimum amounts needed for capital adequacy purposes, and the Bank’s capital levels met the necessary requirements to be considered "well-capitalized". The regulatory capital ratios as of June 30, 2026 are estimates, pending completion and filing of the Bank's regulatory reports. Earnings Presentation and Conference Call Northpointe will host its second quarter of 2026 earnings conference call on July 22, 2026 at 10:00 a.m. E.T. During the call, management will discuss the second quarter of 2026 financial results and provide an update on recent activities. There will be a live question-and-answer session following the presentation. It is recommended you join 10 minutes prior to the start time. Participants may access the live conference call by dialing 1-877-413-2414 and requesting "Northpointe Bancshares, Inc. Conference Call". The conference call will also be webcast live at 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 of trade conflicts; potential impacts of adverse developments in the banking and mortgage industries, including impacts on deposits, liquidity and the regulatory rules and regulations; risks arising from media coverage of the banking and mortgage industries; risks arising from perceived instability in the banking and mortgage sectors; changes in the interest rate environment, including changes to the federal funds rate, which could have an adverse effect on the Company’s profitability; changes in prices, values and sales volumes of residential real estate; developments in our mortgage banking business, including loan modifications, general demand, and the effects of judicial or regulatory requirements or guidance; competition in our markets that may result in increased funding costs or reduced earning assets yields, thus reducing margins and net interest income; legislation or regulatory changes which could adversely affect the ability of the consolidated Company to conduct business combinations or new operations; changes in tax laws; significant turbulence or a disruption in the capital or financial markets and the effect of a fall in stock market prices on our investment securities; significant volatility in the markets for equity, fixed income and other asset classes globally or within specific markets; the ability to keep pace with technological changes, including changes regarding maintaining cybersecurity and managing the risks, regulatory uncertainty and operational impacts associated with generative artificial intelligence; increased competition in the financial services industry, particularly from regional and national institutions as well as fintech companies and other non-bank financial service providers offering digital, automated or alternative financial products and services; the impact of a failure in, or breach of, the Company's operational or security systems or infrastructure, or those of third parties with whom the Company does business, including as a result of cyber-attacks or an increase in the incidence or severity of fraud, illegal payments, security breaches or other illegal acts impacting the Company or the Company's customers; the effects of war or other conflicts, including the ongoing conflicts in the Middle East; major political shifts domestically or internationally (including federal budget disputes, debt ceiling negotiations, government shutdowns or other disruptions affecting government operations); and adverse results from current or future litigation, regulatory examinations or other legal and/or regulatory actions, including as a result of the Company’s participation in and execution of government programs, and legislative, regulatory or supervisory actions related to so‑called "de‑banking," including any new prohibitions, requirements or enforcement priorities that could affect customer relationships, compliance obligations, or operational practices. Therefore, the Company can give no assurance that the results contemplated in the forward-looking statements will be realized. Additional information regarding these and other risks and uncertainties to which our business and future financial performance are subject is contained in the sections titled "Cautionary Note Regarding Forward-Looking Statements" and "Risk Factors" in the Company’s most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q on file with the U.S. Securities and Exchange Commission (the "SEC"), and in other documents that we file with the SEC from time to time, which are available on the SEC’s website, 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. 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. View source version on businesswire.com: https://www.businesswire.com/news/home/20260721793462/en/ Contacts Kevin Comps, President616-974-8491 | [email protected] Brad Howes, CFO616-726-2585 | [email protected]

Kearny (KRNY) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price. The earnings report, which is expected to be released on July 23, might help the stock move higher if these key numbers are better than expectations. 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 bank holding company is expected to post quarterly earnings of $0.17 per share in its upcoming report, which represents a year-over-year change of +54.6%. Revenues are expected to be $45.4 million, up 11.2% from the year-ago quarter. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. 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. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction). 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 Kearny, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +3.03%. On the other hand, the stock currently carries a Zacks Rank of #3. So, this combination indicates that Kearny will most likely 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 Kearny would post earnings of $0.15 per share when it actually produced earnings of $0.15, delivering no surprise. The company has not been able to beat consensus EPS estimates in any of the last four quarters. 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. Kearny appears 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. Northpointe Bancshares, Inc. (NPB), another stock in the Zacks Financial - Savings and Loan industry, is expected to report earnings per share of $0.68 for the quarter ended June 2026. This estimate points to a year-over-year change of +33.3%. Revenues for the quarter are expected to be $68.06 million, up 15.4% from the year-ago quarter. The consensus EPS estimate for Northpointe Bancshares, Inc. has remained unchanged over the last 30 days. However, a lower Most Accurate Estimate has resulted in an Earnings ESP of -2.46%. This Earnings ESP, combined with its Zacks Rank #3 (Hold), 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 Kearny Financial (KRNY) : 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 higher revenues when Northpointe Bancshares, Inc. (NPB) reports results for the quarter ended June 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 July 21. On the other hand, if they miss, the stock may move lower. While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise. This company is expected to post quarterly earnings of $0.68 per share in its upcoming report, which represents a year-over-year change of +33.3%. Revenues are expected to be $68.06 million, up 15.4% from the year-ago quarter. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. 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. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction). 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 -2.46%. On the other hand, the stock currently carries a Zacks Rank of #3. 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 $0.66 per share when it actually produced earnings of $0.62, delivering a surprise of -6.06%. 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 $1.57 for the quarter ended June 2026. This estimate points to a year-over-year change of +29.8%. Revenues for the quarter are expected to be $167.92 million, up 19.4% from the year-ago quarter. Over the last 30 days, the consensus EPS estimate for ServisFirst has remained unchanged. Nevertheless, the company now has an Earnings ESP of +0.64%, reflecting a higher Most Accurate Estimate. This Earnings ESP, combined with its Zacks Rank #3 (Hold), suggests that ServisFirst will most likely beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates three 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

Northpointe reported strong profitability in Q1 with $0.62 per diluted share ($21.7M net income), a 1.28% ROA and 15.71% ROTCE, and tangible book value per share rising over 16% annualized, although net interest income fell $2.21M as NIM declined 9 bps despite $47.6M growth in average interest-earning assets. The Mortgage Purchase Program remains the primary growth engine with period-end MPP balances of $3.9B (about 51% annualized growth), $11.2B of loans funded in the quarter (March record $4.6B), average yields around 6.59%, and guidance to reach $4.1B–$4.3B by year-end 2026. Asset quality improved (net charge-offs of $266k, lower non-performing assets), while management trimmed 2026 NIM guidance to 2.35%–2.50%, maintained mortgage origination and expense outlooks, and completed a $20M subordinated note private placement to support growth and potential calling of $25M Series B preferred stock. Interested in Northpointe Bancshares, Inc.? Here are five stocks we like better. Northpointe Bancshares (NYSE:NPB) reported first-quarter 2026 results that management characterized as a strong start to the year, citing profitability, mortgage-related growth, and improving asset quality despite macroeconomic uncertainty. Founder, Chairman, and CEO Charles Williams said the company earned $0.62 per diluted share in the quarter, generating a 1.28% return on average assets and a 15.71% return on average tangible common equity. Williams added that, after factoring in dividends paid, tangible book value per share increased by over 16% annualized from the prior period. → GE Vernova Beats Earnings by 790% as Data Center Demand Explodes Executive Vice President and CFO Brad Howes reported net income to common stockholders of $21.7 million, matching the $0.62 per diluted share figure discussed by Williams. Howes said net interest income declined $2.21 million from the prior quarter as net interest margin fell nine basis points, partially offset by $47.6 million of growth in average interest-earning assets. Howes attributed pressure on earning-asset yields primarily to lower loan yields, noting that many Mortgage Purchase Program (MPP) facilities are tied to SOFR, which was down almost 40 basis points on average versus the prior quarter. He also said the company’s cost of funds decreased 13 basis points, reflecting a 25 basis point federal funds rate cut in December 2025. → STMicronelectronics Sends Industrial Chips Into Overdrive Management repeatedly pointed to the MPP business as a key contributor to performance. Williams said MPP balances ended the quarter at $3.9 billion, representing 51% annualized growth over the prior period, and that total loans funded through the channel were $11.2 billion during the quarter. He compared that with $6.7 billion in loans funded in the first quarter of 2025, and highlighted that March funding of $4.6 billion was the highest monthly volume on record. President Kevin Comps said period-ending MPP balances increased $435.7 million from the prior quarter, while average balances rose $59.3 million, with most of the balance growth occurring later in the quarter. At March 31, the company had $412.7 million of MPP balances participated out to partner banks, down slightly from Dec. 31. → Tesla’s Earnings Confirm the Shift to AI—But at What Cost? Comps detailed the quarter’s MPP capacity additions: Eight new clients added, totaling $205 million in additional capacity Facility size increases for 11 existing clients, totaling $465 million in additional capacity Average utilization of existing clients was 57% He said average MPP yields were 6.59%, with fee-adjusted yields at 6.82%. The average yield declined 39 basis points from the prior quarter, which Comps said was consistent with the decline in SOFR. During the Q&A, Comps told Piper Sandler’s Crispin Love that growth drivers included continued facility expansions among existing clients, a pipeline of potential new clients, and a seasonal expectation of increased mortgage activity during the summer buying season. He also noted that the pace of adding new clients may moderate versus the period following the IPO, when the company had a large backlog of prospective clients coming onboard. Within retail banking, Comps said the company closed $693.7 million in mortgages during the first quarter, down from $762.0 million in the prior quarter. Saleable volume was $626.6 million, with 39% in the consumer direct channel and 61% in traditional retail. By comparison, fourth-quarter 2025 saleable volume was $671.3 million, with 35% consumer direct and 65% traditional retail. Refinance activity represented 59% of total saleable volume in the quarter, up from 51% in the fourth quarter of 2025. Comps said modest declines in mortgage rates in both quarters spurred additional refinancing, adding that a 25–50 basis point rate decline can drive incremental refinance activity. He also reported that mortgage rate lock commitments increased 12% from the prior quarter, driven by refinancing, while purchase activity was down modestly. Comps said the company sold approximately 68% of its saleable mortgages servicing-released during the quarter, down from 79% in the prior quarter. He added that Northpointe hired seven new mortgage professionals in two new markets during the first quarter. On deposits, Comps said the company ended the quarter with $5.0 billion in total deposits, up from the prior quarter. He attributed most of the increase to seasonality in custodial deposit balances and higher levels of brokered network deposits, which he said carried more attractive rates than brokered CDs. In response to Brean Capital’s Christopher Marinac, Comps added that the All-in-One (AIO) product’s checking-account sweep structure was not a driver of the reduction in the wholesale funding ratio, pointing instead to seasonal swings in custodial funds tied to mortgage servicing-related activity. In mortgage servicing, Comps said the company earned $2.2 million in loan servicing fees in the first quarter excluding changes in the fair value of mortgage servicing rights (MSRs), flat from the prior quarter. Including loans outsourced to a sub-servicer, the company serviced 15,900 loans for others with $5.2 billion of unpaid principal balance as of quarter-end. Comps said asset quality metrics improved during the quarter and that the company was not seeing systemic credit quality issues across portfolios. Net charge-offs were $266,000, down from $1.2 million in the prior quarter, representing an annualized net charge-off ratio of two basis points to average loans. Total non-performing assets fell $2.0 million from the prior quarter, and loans 31 to 89 days past due declined $6.5 million. Comps also emphasized that at March 31, MPP represented 58% of all loans and that the company continued to see “pristine credit quality” in that portfolio. He said virtually all loans are backed by residential real estate, and cited residential mortgage portfolio characteristics including an average FICO of 752, average LTV of 72% (including mortgage insurance), and average debt-to-income ratio of 35%. Howes reported a $445,000 benefit for credit losses in the first quarter and updated his expectation for full-year 2026 total provision expense to $2 million to $3 million, driven by replenishment of net charge-offs and growth in MPP and AIO loans. On the balance sheet, Howes said total assets increased to $7.4 billion at March 31, reflecting strong MPP growth. The wholesale funding ratio was 62.94%, down from 64.60% in the prior quarter due to deposit growth. Howes said he was lowering the company’s expected 2026 net interest margin range slightly to 2.35% to 2.50%, based on an assumption that SOFR and funding costs remain near current levels and that there are no additional Fed funds rate cuts in 2026. In response to Piper Sandler’s Love, Howes said anticipated improvement in margins over the remaining quarters is expected to come primarily from a better loan mix as MPP and AIO grow while legacy lower-yielding assets run off. Howes reaffirmed loan growth expectations, including MPP balances reaching $4.1 billion to $4.3 billion by year-end 2026, with $300 million to $500 million participated out on average over the year. He also reiterated expectations for period-ending AIO balances to grow to $900 million to $1.0 billion by year-end, while the remainder of the loan portfolio (excluding MPP and AIO) is expected to decline to $1.9 billion to $2.1 billion. For mortgage banking, Howes forecast total saleable mortgage originations of $2.2 billion to $2.4 billion in 2026 with all-in margins of 2.75% to 3.25%. In response to KBW’s Damon DelMonte, Howes said first-quarter margins were closer to the bottom end of that range, citing competitive pressure in conforming mortgages and more entrants in the non-QM space. Howes also guided to full-year 2026 MPP fees of $9 million to $11 million, and said he expects loan servicing revenue (excluding MSR fair value changes) to increase through the year, with full-year revenue between $9 million and $11 million. Non-interest expense rose $658,000 from the prior quarter, driven primarily by salaries and benefits tied to bonus and incentive compensation. For the full year, Howes maintained non-interest expense guidance of $138 million to $142 million. On capital, Howes said the company completed a private placement of $20 million of fixed-to-floating rate subordinated notes. He said the additional capital provides flexibility if growth exceeds expectations and in connection with $25 million of Series B preferred stock that management anticipates calling prior to year-end. In response to DelMonte, Howes said the company believes it can call the preferred with existing resources and that the sub debt issuance was intended to support growth flexibility and reduce reliance on potentially variable market conditions later in the year. Howes reported the effective tax rate was 24.72% in the first quarter, reflecting additional income tax expense related to non-deductible tax rules for publicly traded companies, and said he expects the 2026 run rate to be in line with that. Northpointe Bancshares, Inc is the bank holding company for Northpointe Bank, an FDIC-insured community bank based in Michigan. The company offers a full range of commercial and consumer banking solutions, serving retail, small business and corporate clients through both a physical branch network and digital platforms. Northpointe Bank’s product suite includes interest-bearing checking and savings accounts, money market and certificate of deposit offerings, as well as residential mortgage lending, home equity financing and unsecured consumer loans. The article "Northpointe Bancshares Q1 Earnings Call Highlights" was originally published by MarketBeat.